Springdale assessment appeals prompt 19% tax hike

Reassessments on industrial properties in Springdale have led to a loss of $11 million in expected revenues, and borough property owners will likely foot the bill.

The borough is considering hiking real estate taxes by 19% next year to cover the assessment losses in addition to a spike in the garbage collection fee.

The proposed spending plan includes a 1.5-mill increase, from 7.8 to 9.3 mills, said Jason Dailey, interim borough manager.

The owner of a property with the borough’s median assessed value of $82,200 would pay about $801 annually under the proposal, an increase of $123.

On Jan. 1, taxable properties in the borough were assessed at roughly $154 million, Daily said.

By Nov. 1, successful assessment appeals had decreased that amount by $11 million.

“The lower assessment requires the council to consider a tax increase this year,” he said. “There’s just no other way to make that money up without looking at that.”

Garbage collection

Borough property owners also could see an increase in their garbage collection rates, from $54 a quarter to $69 a quarter, under a new contract with Belle Vernon-based County Hauling. County Hauling was the lowest of two bidders. The other bid would have cost the borough more than $100,000 more than the County Hauling proposal.

Council President Mike Ziencik said the tax increase had to happen, and that the borough hasn’t raised its millage in about six years.

“Unfortunately, it was inevitable. The revenues didn’t match the expenditures,” he said. “I don’t like it as much as the next guy, but I pay it, too.”

About the budget

The cost of employees’ healthcare is up 8.5%, Dailey said.

Tax dollars also would go to an “aggressive crack sealing program,” he said, which includes Colfax and James streets, Rosslyn Avenue between Porter and Washington streets; and addressing prior patches from water breaks.

The budget also calls for non-major improvements, like court surfaces, at Veterans Memorial Park.

Waterline replacement and paving projects are slated at Walnut, Porter and a portion of Orchard Street, which will be covered by a nearly $1 million state grant.

“The state awarded this over the last month, and this is going to be a huge project that’s going to take place in 2025 for the borough that your rates don’t have to cover,” Dailey said. “This is a non-matching grant, and it really is a massive investment that’s going to take place in infrastructure for the borough.”

A new contract with the borough’s police department includes a 4% wage increase for officers.

The budget also calls for a new police car, replacement hirings within the police department to bring the department up to its full complement of nine officers, upgrades to video technology and records management software, and a continued investment for training in crisis intervention for officers.

The proposal also expects a full-time manager to be hired in 2025, and the development of a capital fund for the general, water and sewer funds, Dailey said.

There is a $15,000 contribution to Lower Valley Ambulance Service.

Borough council could vote on the budget at its Dec. 17 meeting.

Moving forward

Dailey also provided council with suggestions for possible revenue streams to offset the loss in revenues.

He suggested the borough consider leasing vehicles and equipment “in a manner that will allow funds to be spread out.”

He also said major capital projects will need to be looked at and possibly financed instead of using money directly from the borough’s budget.

“It needs to be noted that grants aren’t a way to balance an operational budget,” he said. “They come and go. They can’t be used to balance the budget, ever, because they’re oftentimes just one-time opportunities.”

Instead, the borough should consider new revenue streams — such as renting Veterans Memorial Field to organizations.

“There is some maintenance items that need to be looked at, but this is one of those areas that a feasibility study is being considered to look at that stadium, and how can the borough generate more revenue from it, so that they’ll offset some of these rising costs?” Dailey said.

The borough should look at its rental rates for its pavilions, gymnasium, and parking lot; and how those can be marketed better, Dailey said.

It could also consider a flat business tax.

“That’s something that needs to be looked at and considered as a new revenue source down the road, but it’s not being considered right now,” he said.

Springdale should also look into attracting more businesses into the borough.

“We need to consistently be looking at regional partnerships for future business attraction,” he said. “There’s a lot of industrial property that’s floating around right there that’s making its way to the market, and there’s a lot of discussions, I’m sure, taking place out there. So, that’s going to be something that could potentially change what that market value looks like in 2025.”

The proposed budget is available for viewing at the borough building, 325 School St.