It will be 20 years and counting without a property tax increase for Hempfield residents in 2009.
The North Huntingdon commissioners last night were expected to extend that township's streak of no property tax increase to three years, while Irwin council voted last week that four consecutive millage increases are enough.
It's budget time in Westmoreland County.
On Monday night, the Penn Township commissioners continued to ponder options to offset a projected $388,000 shortfall in a proposed $7.624 million 2009 spending plan so as to avert a tax increase.
Projected revenues of $7.236 million would support the budget. Tapping an anticipated $930,000 carryover from this year's budget could wipe out the deficit but would reduce the projected fiscal cushion to about $542,000. That concerns some board members and township Manager Bruce Light.
"Like any other municipality, our tax revenue doesn't start coming in until March and April," Mr. Light said. "We have salaries and other expenditures to meet. We'd like to have a carryover closer to $1 million.
"The board is considering options to resolve our fiscal situation without burdening taxpayers. My hope is that the budget will be resolved on Monday night," he said.
The commissioners appear reluctant to raise the property tax rate for the first time since 2004. They will meet again at 7 p.m. Monday in the municipal building.
Fiscally strapped North Irwin residents are bracing for a second straight millage increase. A 3-mill hike to support this year's budget ended an 18-year streak of not raising taxes.
Borough council approved a proposed $176,857 spending plan by a 4-3 vote last week, which called for a 1-mill increase to support expenditures of $174,037.
The board met again Monday night and voted 4-3 to approve a revised preliminary budget of $178,279, still including a 1-mill increase to 15 mills. Projected expenditures are $172,883.
Projected tax, fine and grant revenues and budget cuts could create a "healthy" $5,396 year-end fund balance for the first time in years, said Councilwoman Kim Macalus, who developed the spending plan.
The board will schedule a special meeting by Dec. 29 to adopt the budget.
Council unanimously approved a proposed $12.87 million operating budget last week that does not call for property tax or sewer rate increases.
The spending plan reflects $10.31 million of projected revenues from grants and loan funding for the town's $7.1 million sewer line separation project, plus downtown economic programs such as Main Street, Gateway and Streetscape.
That funding is wrapped around a more realistic $2.56 million general fund to support projected expenditures of $2.53 million.
Property taxes in Irwin have steadily increased from 7 mills in 2003 to the current 13. Before then, the borough had held the line on the tax rate for 17 years in a row.
Commissioners are expected to approve a $10.11 million 2009 spending plan, which was proposed by new Manager Jim Morrison during last week's workshop meeting.
The budget would not require an increase in the current property tax rate of 10.25 mills.
"The administration combined some line items, which will enable the commissioners to track expenditures of each department more efficiently," Mr. Morrison said. He added that the spending plan also includes a new projected five-year capital projects "action plan," which should help commissioners to identify future needs and available funding sources.
Supervisors were expected to adopt a proposed 2009 budget of nearly $10 million last night with no tax increase. The current 3-mill levy was established in 1989.
