The newly seated Mount Oliver Council used its prerogative to reopen the borough budget and did so at the reorganization meeting on Tuesday, Jan. 3.
Property tax increases 1.5 mills
In revisiting the budget, the council voted to advertise a new budget that will raise the property tax from 12 mills to 13.5 mills. The new budget will be on display in the borough office for 10 days.
Borough council was permitted to reopen the budget after the reorganization meeting and had 45 days from the reorganization meeting to pass the new budget. After advertising the new plan and having it available for public review at the Mount Oliver Borough Building, 150 Brownsville Road, the council is expected to vote on the new budget at a special meeting on Monday, Jan. 23.
Council President Don Cornelius explained the increase in property taxes was needed for two reasons: first, because the borough has been operating at a deficit; and second, to ensure the borough is able to continue to provide public safety and public services such as road maintenance and garbage collection.
According to Mr. Cornelius, garbage collection is at the root of the tax increase. He explained that approximately five years ago, borough council made the decision to forego a monthly fee charged to residents for garbage collection in favor of adding one mill to the property tax. He said that at the time, most people were paying their property taxes, but many were delinquent on the garbage fee.
A one-mill raise in the property tax in the borough equates to approximately $60,000 in revenue, or approximately $45–$50 per house. If garbage collection costs were $10 per household per month, or $120 per year, the $45–$50 in property tax substituted for the fee caused the borough to operate at a loss for the past five years, according to the new council president.
Mr. Cornelius said that when the borough first decided to use property taxes to cover garbage collection, the amount should have been set at 2.5 mills just to stay even. He explained that each mill in taxes amounts to an average of less than one dollar per house in the borough.
He said the borough council is committed to “tightening our belts” in an effort to put more police officers on the street and maintain the quality-of-life services for borough residents. He noted the street crew is out every day sweeping and patching the streets, and the police department will replace two vehicles this year and possibly add members to the force.
Mr. Cornelius said that although there are no plans for major road renovations this year, the borough is still paying on loans for two road programs from prior years. He pointed out that two mills of the property taxes are earmarked to repay debt from the past.
“We’re making a quality-of-life commitment,” Mr. Cornelius said. “And part of that commitment is to look forward.”