Latrobe eyes short-term loan while extending deadlines for tax, garbage payments

Latrobe is considering a short-term loan to cover operational costs after granting extra time to tax- and rate-payers feeling the financial pinch of the covid-19 pandemic.

Falling in line with extended deadlines set for county tax payments, council agreed to accept city property tax payments at the 2% discount rate until Aug. 31, moved back from April 30. Payment of real estate taxes will be accepted at face value until Dec. 31, without a late penalty.

Supervisors in neighboring Unity Township granted similar extensions.

State legislators recently took action authorizing local taxing bodies to extend the deadlines.

Latrobe has collected 47% of this year’s property taxes, adding up to about $612,000 in revenue, according to city manager Michael Gray.

“It was at about 85% this time last year, because of the 2% discount,” Gray said of the 2019 collections.

The city assesses a 21.5-mill real estate tax to help support a $5.7 million budget.

City residents and businesses also will have some extra time to pay the most recent bills for municipal garbage collection.

Residential customers will have an extra month, until May 31, to pay their quarterly spring refuse bill — a minimum of $66. Commercial customers, who pay a minimum of $23.50 per month, will see their deadline extended by two weeks, to May 15.

In light of the deadline extensions, council authorized Gray to seek quotes from financial institutions for a tax anticipation note, to make sure the city has access to sufficient cash until all of the local taxes are collected.

Gray still had to determine the dollar amount Latrobe would need to borrow for operational expenses.

To ensure safe social distancing during the pandemic, council — for the second month in a row — allowed its members and local citizens to participate in the meeting via a video or phone link.

The remote conferencing was in line with emergency powers city officials assumed during the health crisis. But, council is considering an ordinance that would allow the same meeting option under other circumstances — once the pandemic has subsided.

“Why limit this to a declaration of emergency?” asked councilman Jim Kelley. He suggested council should have “the broadest power to use telecommunication when it’s in the best interest of the city.”

Councilman Ralph Jenko said the format gives an opportunity for participation by citizens who can’t physically make it to meetings at the municipal building.

Mayor Rosie Wolford said she would not want the remote links to start a trend of more council members attending meetings electronically, rather than in person, once health concerns have passed.