No tax increase next year for Donora
Donora council Thursday approved a 2014 budget that does not require a tax increase or service cuts.
However, one councilman and the borough administrator warned that the financial outlook might not be as bright at this time next year.
With the PolyOne plastics plant expected to close by October, next year's budget might require steep cuts or a tax increase because of a hefty loss in anticipated property and occupational tax revenue.
The company has already begun to furlough workers, Councilman Jason Menendez said. And with each lost job, the borough loses a $52 local services tax plus a 0.5 percent wage tax on gross income.
“Next year, we'll definitely feel that pinch,” Menendez said. “This year, we were able to do it. Next year might not be such a rosy picture. ”
Donora has seen all three of its banks close in recent times, something that will affect the borough even further in the coming year.
“Every business that leaves is an erosion of your tax base, and every resident that leaves, it erodes not only your tax base but your refuse collection bills,” said Dennis Fisher, the borough administrator, treasurer and secretary.
“It's all going to hit the fan when we turn the corner going into 2015, and it's going to be quite substantial.”
By a 4-0 vote, council approved the budget. Menendez, Don Pavelko, Denylle Pucel and Marie Trozzo voted yes. Council members Karen Polkabla, Thomas Kostolansky and William Hevia were absent.
The spending plan balances anticipated revenue and expenditures at $2,105,800.
The real estate tax rate will remain at 33 mills. Revenue equal to 1 mill is budgeted for fire service, 1.75 mills for recreation, and 0.25 mills for the public library.
“If I can pat council on the back, we don't contract out many services and do most of our repairs in-house,” Menendez said.
“We do a pretty good job with spending and budgeting out expenses such as salt use, and our crew is fantastic.
“So whereas another municipality might have to bring in a contractor to fix a sewer line or a catch basin, we do it all in-house, and it cuts down on cost considerably.”
Council agreed to repay the 2013 tax anticipation loan to PNC Bank of Pittsburgh. The $132,311.47 payment is due Dec. 31. Council then agreed to obtain a 2014 tax anticipation loan for $130,000 at an annual interest rate of 1.79 percent.
Calling PolyOne a state-of-the-art manufacturing facility, Menendez said it's possible to attract another business to the site, which is linked to a rail system.
In the meantime, Menendez said council will do everything in its power to “gussy up” the downtown business district.
“We have two new (council) members coming on, and we're going to give a good, hard look in getting the downtown back up and running again,” he said.
“We're looking at making some repairs downtown and working with organizations like the chamber of commerce to get the buildings looking good and maybe get a new tenant or two coming in. Again, next year's budget is going to be tough. It's going to be tough.”
The borough will mail garbage collection invoices Tuesday to residents and landlords. The discount rate, if paid before March 31, is $172. The face rate from April 1 through June 30 is $192, and a penalty rate of $222 will be enforced after June 30, plus fines and court fees.
Residents should call 724-379-6600 concerning errors in billing or if they do not receive invoices by Jan. 6.
Rick Bruni Jr. is a staff writer for Trib Total Media. He can be reached at firstname.lastname@example.org or 724-684-2635.
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.
- News was plentiful in pre-holiday rush of December 1957
- Keystone’s expansion to Greensburg going well
- Charleroi traffic stop spurs drug charges
- Trial ordered for Finleyville man accused of fondling himself near school bus
- Ringgold agrees to stay under Pa. tax limit
- Perryopolis police officer dies in Route 51 crash
- Donora cops seek ‘suspicious’ motorists
- BVA finances OK heading to budget
- Charleroi Area student accused of bringing pellet gun to school
- Occupants flee after car crashes into house in Monessen
- Locals help Thiel, St. Vincent football teams improve