Latrobe urged to raise earned-income tax
In an effort to raise revenue, Latrobe council members discussed raising the earned-income tax instead of continually drawing from the city's general fund.
City manager Alex Graziani said during Monday's council agenda preparation meeting that the budget gap this year may be about $182,000, which would leave the city with about $350,000 to $380,000 in its coffers for 2014.
The earned-income tax is currently set at 1.13 percent.
Councilman Richard Jim said if the tax, which is levied on all workers by withholding a percentage of their income through employers, was increased to 1.4 percent, the city could generate an extra $380,000 per year.
“If that were the council's method of increasing revenue there probably would not be any need for increasing real estate taxes, and I think we could eliminate the need for one of the nuisance taxes like the $5 per capita tax,” he said. “I certainly would like to see that put on the agenda.”
The tax is “elastic” based on the income of workers within the city, which varies, so Graziani said his estimates used about $825,000 for a ballpark figure.
Graziani estimated a 0.1 percent increase in his preliminary budget draft, but Jim said he would like to see it increased to 1.4 percent.
“That ought to put us in good stead to hold personnel, to keep the city viable and also maintain most of our programs,” Jim said.
Councilman Mike Skapura said he estimated that someone earning $50,000 per year would have to pay about $68 more per year, if the tax were increased to 1.3 percent.
Because of the timing, the taxes could not be recouped by the city until July 1, said solicitor Jim Kelly.
In other business, council discussed advertising the vacancy that will occur once Councilwoman Rosie Wolford takes over as mayor at the Jan. 6 meeting.
The seat, with a two-year term, would be advertised and a new council member could be appointed Jan. 6, after Wolford resigns her council seat when she is sworn in as mayor.
The vacancy must be filled within 30 days, so if it is not filled at the Jan. 6 regular meeting, a new council member must be appointed at the January agenda prep meeting or a special meeting could be called, Kelly said.
Stacey Federoff is a staff writer for Trib Total Media. She can be reached at 724-836-6660 or email@example.com.
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.
- Bushy Run Battlefield upgrades to include trail, signs, landscaping
- Historic Greensburg Art Center joins Cat’s Meow collection
- Greensburg police captain to attend highly selective academy
- Youngwood Fire Department to dedicate memorial at station
- Police on hunt for suspects in unrelated Penn Township, Manor cases
- 7 arrested in Latrobe-area drug dealing
- Fall fly-by: Blue Angels stop in Unity to discuss 2015 show
- Families welcome new members on Adoption Day in Westmoreland County
- Jeannette man pleads guilty to attempting to entice child in Louisiana
- Food drive volunteer in Westmoreland County has purse stolen
- Walker: Applebees to help Jacobs Creek Area Faith in Action