Harmony Borough Council was correct last week in rejecting a proposal to reopen the 2005 budget for the purpose of lowering the real estate tax.

Having had to take out a short-term loan to cover expenses for the cleanup stemming from the September flooding, it would have been shortsighted to act hastily, despite the additional money that will be coming from the new Emergency Municipal Services Tax.

The newly named tax, which replaces the occupational privilege tax, is expected to bring to the borough's coffers an additional $32,000 annually.

However, the flooding from the remnants of Hurricane Ivan caused an outlay of $30,000 to $40,000 that could not be absorbed by this year's budget. Meanwhile, it is estimated that disaster-cleanup reimbursements from the Federal Emergency Management Agency in regard to Ivan might not arrive for another nine months.

With all that in place, the council correctly opted for a line of credit up to $60,000 to cover the cleanup expenses until the FEMA money arrives. As part of final 2005 budget passage, the council increased the overall borough real-estate tax millage to 14 mills from 13 mills, with one mill for fire protection.

It was Councilman Russ Ottney who made the proposal that the 2005 budget be reopened and that the real-estate millage be reduced by two mills, because of the emergency services tax.

Councilmen Harold Herr, Dave Szakelyhidi, Jeff Smith and Gary Habsburg were right in voting against the idea, agreeing that it was not the proper time to take such action. In addition to Ottney, Chuck Beighey and Dave Rogers voted to reopen the budget.

Last week's rain that caused more flooding in the county, plus upcoming winter weather uncertainties, reaffirmed the correctness of the council majority's judgment at this juncture. The council's refusal to reduce millage now doesn't eliminate the opportunity to do so later, after the borough's fiscal picture for this year is more clearly defined.

But even then the council should be cautious about reducing the borough's income immediately. The two mills of real-estate tax money in question, while maybe not being crucial to operating the borough in the financial black this year, could provide the window to make an improvement in the community that might not otherwise be possible.

The weather caused 2004 to be not a good year for the borough. The new tax, coupled with good judgment on elected leaders' part, could minimize last year's negative financial consequences.

It's good when elected leaders act responsibly in terms of how much they tax their constituents. However, what is sometimes perceived as acting responsibly could in fact be detrimental in the long run.

Considering the flooding event of last year, Harmony council members are right in opting for caution at this time, rather than haste.

- J.R.K.