Plum officials hold the line on taxes for 2022

Plum property owners will not have to pay more in real estate taxes as a result of the upcoming year’s borough budget.

Borough officials held the line on taxes when council unanimously voted this month to pass their 2022 spending plan. The millage rate remains at 4.78 mills.

Revenue was listed at about $14.065 million and expenditures at about $14.169 million. That’s a shortfall of a little less than a $104,000.

The borough plans to draw from its reserve fund of nearly $2.5 million to balance the budget without raising taxes.

No cuts are planned to any services or events such as Movies in the Park, Summer Fest, Fall Fest and Christmas at Plum Creek.

“All of those things go into the operation of the borough,” council President Dave Odom said. “This budget that was approved didn’t have any opposition.… It didn’t receive any negative feedback from the public.”

Council’s budget vote took place Dec. 13.

It is available for review at the borough office, 4575 New Texas Road.

Projected revenues include about $4.631 million in real estate taxes, $4.841 in local enabling taxes, $2.268 million in municipal services, $1.384 million in intergovernmental revenues and $778,200 from licensing permits.

Projected expenses include about $5.79 million for police, including $2.288 million in salaries for full-time officers and $383,000 in police administration salaries; $1.75 million for public works; $1.278 million for administration, including $638,000 in salaries for eight full-time employees; $446,600 for recreation; $421,000 for borough building costs; $240,100 for information technology; and $175,000 for legal services.

The borough plans to spend a little more than $1 million on paving this coming year.

That has been the allocation for at least the past several years as Plum continues to make street improvements throughout the borough.

About $230,000 of street improvements is listed in the general budget with the rest coming from the state Liquid Fuels Tax fund.

Nearly $1 million in capital improvement spending is planned, including lease-to-own deals on two Ford Explorers for the police department, a new pickup for the community development department, a new Bobcat excavator for public works, a new pavilion roof at Renton Park and HVAC upgrades at the Plum Community Library.

That money is from a separate capital improvement fund and does not impact the general fund budget.

The borough obtained a $1.5 million tax anticipation note at a 2% rate through Standard Bank. A tax anticipation note is a loan most municipalities take out in order to have cash on hand the first few months of the year in preparation for tax monies to start being collected.

Odom said he does not anticipate council drawing from it unless there is an emergency.

He commended his colleagues and administrators, including finance director Michael Whitico, for their work on the budget.

“All of that really speaks to the outstanding fiscal management that we have with our borough staff,” Odom said.

Whitico delivered a budget presentation at the November workshop meeting. It was posted on the borough’s YouTube page. It begins around the 31-minute mark.

Borough Manager Michael Thomas said borough revenue was not impacted by the pandemic, and strong fiscal planning over the past several years has put Plum on solid financial footing.

“I think it is good fiscal management,” he said. … We’re fortunate that we’re experiencing growth.”

Thomas said there are about 12,000 properties in Plum, including about 10,500 homes and more than 1,000 business.

He noted there will be an increased focus on water quality management next year including inspecting all retention ponds.

The last time taxes were raised was in 2016, by one mill, to bolster its EMS department and for road improvements.

The ambulance company was able to purchase new equipment the following year as a result of its increased revenue.