Freeport Council passes budget, votes down tax increase

Freeport Council held the line on real estate taxes by the slimmest of margins after it voted to pass the 2022 budget Monday night.

The budget passed unanimously, by a 5-0 vote. After passing the budget, though a motion to raise taxes by 1 mill failed by a 2-3 vote.

Josh James, Ron Gallagher and Chad Westerman voted against the tax hike; council President Chad Warnick and Stephanie VanTine voted in favor.

Council members Justin DeAngelis and Mary Bowlin had resigned prior to the meeting.

Warnick proposed the 1-mill tax hike as a way to boost revenue. He estimated it would increase taxes on the average property owner by about $25. He argued a small tax hike now would stave off larger hikes in the future.

“A little bit at a time makes more sense to me,” VanTine said about raising taxes.

The tax rate remains at 13 mills, meaning the owner of a property assessed at $100,000 will continue to pay $1,300 in borough taxes.

It has been at least 12 years since property taxes were raised in Freeport.

When the motion to raise taxes was made, Mayor James Swartz Jr. threatened to veto the budget. He said a tax hike was not necessary since there is a surplus projected for the end of next year.

Budget documents list projected income at about $631,800 and expenses at $855,650, including spending $187,530 in federal American Rescue Act funds.

The estimated $225,000 shortfall will be covered by about $283,000 estimated to be left over in the bank at the end of the year, leaving a projected surplus of about $58,000 by the end of next December .

The borough received half of its covid relief allocation this year with the remaining $87,765 expected early in 2022. Council has yet to devise a plan on how to spend the federal funds.

All services were maintained and no program cuts were in the budget.

Council budgeted raises of 2.5% raise for its borough salaried employees.

Projected revenues include $220,000 in real estate taxes, $208,000 in Act 511 taxes, $117,165 in “intergovernmental revenues,” $28,200 in licenses and permits, and $10,750 in fines and forfeits.

Expenditures include $261,200 for public safety; $84,700 for public works, including parking meters and street maintenance; $76,100 for general government spending, including borough building maintenance and administrative salaries; $37,600 for recreation.

The budget calls for $133,500 for what is listed as in miscellaneous expenses, including pension plan contributions and various insurances.

Borough treasurer Rich Hill said Freeport finances were “really not impacted at all by covid,” and he projects everything to stay within budget despite rising fuel costs and other expenses.

“I think next year’s going to be pretty much the same as this year,” Hill said. “I don’t see any changes.”

Warnick commended Hill for crafting next year’s spending plan.

“Rich has been doing this for years, and we trust in his ability to project the budget,” Warnick said.

The budget is available for review at the borough office, 414 Market St.

It is unclear when it might be posted online. The borough website has been down for several weeks.

4 council seats soon to be vacant

One thing council must address in early January is its four vacancies.

Gallagher declined to run for reelection and Westerman lost his reelection bid.

That, combined with the resignations of DeAngelis and Bowlin, would leave just three elected officials making decisions on behalf of the seven-member panel.

Borough Solicitor Matthew Kalina said council has 30 days from when a resignation is accepted to fill a vacancy.

If it fails to do so in that time,Freeport’s vacancy board has 15 days to appoint someone.

If the vacancy board can’t find someone to fill a seat, residents can petition Armstrong County courts to make an appointment.

Letters of interest for the vacant seats are being accepted at the borough office.

Council’s reorganization meeting is scheduled for 7 p.m. on Jan. 3.