Valencia will vote to replace its former Local Services Tax with a higher tax to support the borough's police, fire, construction and road maintenance costs at a borough council meeting Dec. 13.

The new Local Services Tax ordinance will replace the former ordinance, which borough council president Brian Himmelstein said could not be located in its original text.

If approved, the borough will collect a tax of $52 per year on people who work within the borough. The previous Local Services Tax was $10 per year.

“This just seemed to be a good time to do it,” Himmelstein said. “We're trying to cover some future expenses, and by raising the LST it generated more income than raising property taxes.”

The new tax will “assist in funding emergency services and road construction and maintenance without raising property taxes,” according to a summary posted on the borough's website written by Valencia borough solicitor Sean Gallagher.

Needed funds

Himmelstein said that now was a good time to deal with the tax to help support costs in the borough. “It makes a lot of sense,” he said. “Our police and fire contracts are just going up higher every year, and this kind of gives us an avenue to free up some other revenue to cover some future expenses with the Three Degree Road project.”

The upcoming Three Degree Road improvement project will cost more than originally expected, Himmelstein said.

“We'll have a substantial amount of shortfall to make up on the project within the next 10 years, so this is one way to free up some working capital,” he said.

At least 25% of the local services tax revenue must go toward emergency services, according to the text of the ordinance, which is available to read at the Valencia Borough Building and the Butler County Law Library. If approved, the tax will go into effect Jan. 1, 2022.

Payments will be collected quarterly, so instead of paying the $52 once per year, the cost will be split up across the year. Himmelstein said that Berkheimer Tax Innovations will send out paperwork to employers and self-employed people in the borough to notify them of the increase and how it should be collected.