No tax increase anticipated in Plum

Plum officials do not anticipate an increase in the real estate tax rate for 2023, according to information presented at borough council’s Nov. 7 work session.

For projected revenues to match expenditures, though, borough manager Michael Thomas said it would be necessary to use between $1.2 million and $1.5 million of Plum’s financial surplus.

“I know that might sound a little bit stressful to some people, but we’ve built up a significant fund balance over the years,” he said. “This is one of the reasons why you build up that fund balance, so that you have that money when you need it.”

Plum has eight separate funds to earmark spending for various purposes, and according to Thomas, the surplus across all of them is projected at $5.5 million by the end of 2022. The total would drop by the amount used to balance next year’s general fund budget, which finances the borough’s core administrative and operational tasks

As adopted in December, the 2022 general fund budget includes $14.169 million in expenditures, with $103,443 taken from the fund balance to balance the spending plan.

Plans discussed at the work session called for council members to take action during their Nov. 14 meeting to advertise the proposed 2023 budget.

By law, the document must be available to the public for 30 days before the final budget’s adoption. Accordingly, council moved next month’s action meeting from its regularly scheduled second Monday to Wednesday, Dec. 14, so as to accommodate the required time frame.

Plum’s real estate tax rate is 4.78 mills, meaning that property owners pay $478 for each $100,000 of assessed value.

In lieu of a tax increase, Thomas said that balancing the budget would “require a combination of cutting some proposed projects and purchases, and some additional positions that were proposed for this year,” in addition to tapping the fund balance.

To help boost future revenues, David Seitz, who chairs council’s finance committee, suggested the possibility of increasing the borough’s stormwater management fee.

According to Thomas, the fee generates about $750,000 a year for Plum.

Paul Dern, council vice president, said he agreed with using surplus money to balance the 2023 budget instead of increasing the financial burden on residents.

“I think with the economy the way it is right now, that’s the only way we can go.”

For a video of the Nov. 7 work session, visit www.facebook.com/PlumBoroughPA/videos/3494757450757409.