The property tax rate will not be going up in New Kensington next year.
City Council on Monday approved an $8.47 million preliminary budget for 2022 that keeps the tax rate at 32.03 mills.
The city would spend almost 4% more than its $8.16 million budget for this year.
City Clerk Dennis Scarpiniti said the nearly $315,000 increase in the city’s spending is due to increases in labor costs, including the recent hiring of three new police officers, and insurances, including health care.
The property tax rate consists of 30 mills for general purposes, 1.59 mills for recreation and 0.44 mills for the library.
The tax rate for general purposes was last increased in 2020, from 27 mills to 30 mills.
That rate is at the city’s legal limit, Scarpiniti said.
Mayor Tom Guzzo and Councilman Todd Mentecki praised city officials for crafting a balanced budget without a property tax increase during what they noted are trying times for city residents because of the pandemic.
“These are not easy things to do,” Guzzo said.
Council will vote on final approval of the budget and tax rate in December. Council will meet at 7 p.m. Dec. 6 at City Hall.
Loan, grant application approved
New Kensington will be taking out a $1.2 million loan and seeking $3 million in grant funding.
Council approved getting proposals for a $1.2 million tax anticipation loan at a fixed interest rate with no penalty for prepayment.
Some municipalities commonly take out short-term tax anticipation loans to cover expenses early in the year until property tax revenue begins coming in.
In past years, the city had borrowed $1.4 million. But Controller John Zavadak and Treasurer Jordan Elias agreed that $1.2 million would be enough.
Council also authorized Guzzo and Scarpiniti to apply for a $3 million grant from PennDOT. If received, the money would pay for downtown street improvements including sidewalk replacements, milling and paving and handicapped ramps, as well as for improvements to the city’s parking garage, including expansion joint and elevator repairs and new lighting.
Council in September approved hiring Patton Engineering to assess the condition of the 42-year-old Kensington Plaza Garage on Fourth Avenue at Seventh Street. That work is underway, city Engineer Tony Males said.
