Brackenridge nixes property tax increase
An 8.6 percent property tax increase Brackenridge residents were facing apparently will not occur.
Instead, however, residents may be paying an additional $1.10 per quarter to the borough for water at the 4,000-gallon minimum.
Borough Secretary Denise Tocco said the borough approved a preliminary budget Nov. 19 that called for real estate taxes to rise a half-mill, from 5.77 mills to 6.27 mills. But she said that was done with the intent of revisiting other budgetary options and council has held budget sessions the past three weeks, including one on Monday.
Tocco said an increase in water rates was discussed but there were several numbers discussed with no decision made.
Councilman Bill Beale, the finance committee chairman, said the tax increase has been abandoned. Council President Bob Kemmery did not return a message from the Valley News Dispatch seeking comment for this story.
“What the plan was instead of raising taxes, we haven't raised water rates since 2004,” Beale said. “So, what we're doing is increasing the water rate by $1.10 for the minimum for a quarter.”
Instead of $26.68 for the 4,000-gallon quarterly minimum, residents will now pay $27.78 for the same amount, once the final budget is approved and that change is included. That's a 4 percent increase.
He said it is expected to raise about $68,000 per year.
Beale said council had to raise additional revenue some way because it was looking at a deficit of as much as $70,000 at one point. He said it will necessitate a transfer of about $50,000 from the water fund to the general fund.
“We still have a lot of money in the water fund that would cover us if we would have a major break,” he said. “This is something that can't be done every year. It is a one-time shot.”
Beale also said council wanted to establish a fund to cover capital improvements and equipment needs. Out of that rate increase, the borough intends to put 10 cents into the fund, which amounts to 9 percent, or $6,120 per year.
According to Beale, that would help pay for items such as a dump truck for the water department. The water department shares the borough's only dump truck with the street department.
He said if it snows and a water main breaks, the truck would have to be pulled away from salting the streets to work on the break; borough officials would then have to hire a contractor to salt and plow.
There is a possibility the borough could raise additional revenue depending upon what it does with commercial water rates.
“We haven't factored in commercial rates yet because there are so many different size meters,” Beale said. ”We want to increase the commercial customers because they get a better rate but, of course, they use more water.
“But, we don't want to ‘kill' them with an increase. We want to keep the commercial rate in line with everybody else.”
Beale said the $50,000 transfer from the water fund was needed even though cuts were made in items such as office supplies, fuel and police overtime.
The borough found itself in such a deficit situation for several reasons, Beale said. He said hiring a fifth full-time police officer was one.
“This fifth officer really hurt us because we had to come up with $55,000 that we didn't have budgeted,” Beale said, referring to salary and benefits. “Even though you've got the money to pay his wages, you have to figure in his workmen's comp. (Council) wasn't used to that, and they were caught off guard.”
A second reason was the $23,000 to $25,000 in unfunded police pension costs that the borough has to pay.
The third was a $10,000 increase in workmen's compensation insurance payments due not only to the new full-time officer but also all the hours worked by part-time officers because of traffic issues from the ATI-Allegheny Ludlum construction project.
Fees paid to new Solicitor Craig Alexander was a fourth reason, Beale said. He said Alexander's fees totaled $30,000 — $17,000 more than the previous solicitor earned and money that was not included in the budget.
Although a tax increase is dead for next year, 2014 may be another story.
“We possibly may have a tax increase the year after, depending on how this works out,” Beale said.
Tom Yerace is a staff writer for Trib Total Media. He can be reached at 724-226-4675 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Seven in custody after New Kensington drug raid
- Harrison woman dead in 3-car crash in Natrona Heights
- Stretch of Freeport Road rezoned
- Armstrong County to try Welshman on indecent assault, related charges
- New Kensington officials eager to demolish 3 fire-ravaged buildings
- Kiski Area sells school building
- Allegheny Valley board reduces transfer to $1.5M
- Most wanted fugitive caught in New Kensington
- Fawn fugitive Filous captured, jailed
- Impact fees benefit Alle-Kiski Valley
- Oakmont Council meeting becomes heated