Nov 15, 2016 3 min read

WAYNESBURG – Faced with a flat tax base and annual increases in costs, Waynesburg Borough Council approved a tentative 2016 budget Monday calling for a 1-mill increase in property taxes.

The $1.6 million spending plan, if adopted next month as proposed, would increase the property tax levy to 10 mills and include the borough’s first tax hike since 2008.

“The bottom line is that costs go up every year, while revenue stays basically the same,” borough manager Mike Simms said Tuesday.

Simms presented a tentative budget to council that showed a much larger shortfall. He said council asked him to make further cuts to bring the budget in line with a 1-mill tax increase. At 100 percent payment, the borough receives about $68,100 per mill, he said.

The preliminary budget was approved in a 7-2 vote with councilmen Mark Fischer and Pat Haught voting against it. Council will review changes in the budget and consider the budget for adoption at its Dec. 12 meeting.

Although the borough expects the normal annual increases in costs for materials and contractual services, including wages and benefits, this year, revenue also is expected to decline slightly, Simms said.

Total revenue is expected to drop from $1,651,774 to $1,473,600, according to the proposed budget. Total expenditures, however, will increase from $1,651,774 to $1,683,600.

Real estate tax revenue normally remains flat because of the lack of new construction in the borough, Simms said. This year, projected revenue from property taxes is expected to decline by about $8,000 to $548,000.

Money from other revenue sources is also expected to decline. Act 511 taxes, which includes earned income and local service taxes, is expected to drop about $15,750 to $518,300.

Act 13 revenue also is expected to drop. Last year, the borough budgeted $214,800 for Act 13 revenue and received $186,663.

Though the tentative budget included no revenue for Act 13 money, the borough will budget Act 13 funds at $100,000, Simms said.

On the plus side, revenue for licenses and fees is expected to increase by about $12,000 to $51,300 and police revenue will jump by about $18,680, primarily resulting from increased traffic enforcement including truck inspections.

In regard to spending, all major spending categories saw an increase, except the police department, which was budget at $576,400, about $16,900 less than this year. The year-to-date spending for the department was listed at $490,148.

Other major general fund categories and the proposed increases include $603,300 for miscellaneous expenses, including hospitalization, retirement and insurances, which will increase by about $12,700; $203,400 for general government, which will increase by about $2,890; and $200,400 for public works, which will jump about $18,400.

In other business, council accepted the resignation of sewage plant manager Sam McCullough, who will retire after 43 years at the sewage plant.

It also awarded contracts to rebuild the building at the sewage plant damaged in a fire in June. The low bid for the building was $59,970 submitted by the MacBracey Corp.; and for the electrical work, including a generator, was $131,000 from Allegheny City Electric Inc.

Most of the costs will be covered by insurance.