Plum Council Might Hold Line on Taxes

It looks like Plum Borough residents might not experience a real estate tax hike in 2012.

On Monday, borough finance director Michael Whitico presented the $10.7 million preliminary balanced budget to council.

With budgeted expenses of $10,770,448 and budgeted revenues of $10,778,561, the budget projects a preliminary general fund surplus of $8,113.

The budget projects a decrease in expenses, but also a drop in revenues.

Compared to 2011's adopted budget, the preliminary 2012 budget anticipates a $314,274 decrease in expenditures from 2011 and a $321,350 decrease in budgeted revenues.

As the budget stands now, Whitico told council, there is no increase in taxes or fees.

Plum's millage rate is currently 4.3, it's earned income tax is 1 percent and its local service tax is $52.

"It certainly looks like you're getting blood from a stone," mayor Richard Hrivnak told Whitico.

He expressed concerns about the budget in 2013.

Another councilman who expressed concerns—but more immediate ones—was Leonard Szarmach.

Chairman of the public works committee, Szarmach opposed taking money for road salt out of the liquid fuel funds and wants to see more funding go toward road repairs.

"We're kicking the can down the road and we're not going to have a road to kick it down pretty soon," he said.

Finance committee chairman Michael Dell said the borough's finance staff had proposed a $15 fire hydrant fee and a $60 storm sewer fee that could support the cost of salt.

The next step for the borough is to advertise the preliminary budget.

A revision will be presented at council's Dec. 5 work session where public comment will be heard.

The 2012 budget will be adopted at the Dec. 12 council meeting.