Saxonburg council trying to avert tax hike
SAXONBURG — No one wants a tax increase to appear in the borough's 2022 budget, least of all the council members.
The council at their Tuesday night meeting heard Mary Papik, borough manager, discuss the expenses proposed for next year's budget, including siding on the borough building to repair rotting wood, badly needed paving at the building, and a $43,000 increase in the police department line item.
Mayor Bill Gillespie told the council that a 2.5-mill tax increase would be needed to cover the $29,800 deficit in the preliminary budget now being considered.
One mill brings in $12,500 in Saxonburg. The last tax increase in the borough occurred in 2013.
Councilman Josh Novotny asked Papik if eliminating the siding job would be feasible, but Papik said those funds would come from the capital improvement account.
She said capital funds cannot be moved into the general fund to cover expenses like salaries, per state law.
Sherry Weinzierl, council president, asked if it would be prudent to take out a loan to cover the deficit.
“You really should not take out a loan for operating expenses,” Papik said.
Councilman Scott Herbst questioned the increased police department expenses.
Gillespie said the $43,000 increase would likely be offset by revenue received from Summit Township, which is contracting police services from the borough.
The council made the deal five months ago to provide police services in Summit Township.
Gillespie said the projected 2022 revenue from the contract with Summit is $25,000 to $28,000.
That would leave about a $17,000 increase in police expenses in next year's budget.
“There are still costs there not being recouped,” Herbst said. “Sixteen thousand is still a pretty big increase.”
Gillespie suggested he and the council meet in two weeks to go through the budget item by item to find ways to cut costs in the interest of avoiding a tax increase.
“Small dollars in each account add up,” he said.
The council members agreed.
“I think we owe it to our taxpayers to see if there is a way we could avoid raising taxes,” Weinzierl said.
Tuesday's meeting was not adjourned, but continued to 7 p.m. on Wednesday, Nov. 3, at the borough building, where the council and mayor will go through the budget in detail in a search for potential cuts to next year's expenses. The meeting is open to the public.
