The Herald, Sharon, PA Published Friday, Nov. 16, 2001

MERCER

Council proposes 2/3-mill tax hike

By Hal Johnson
Herald Writer

Mercer property owners can expect to pay more in real estate taxes next year, if council adopts the 2002 spending plan it introduced this week.

Council on Tuesday proposed a $579,914 general fund spending plan for next year. When added with a proposed $521,521 in spending for sewers and $33,000 in liquid fuels reimbursement funded spending for highways, the total spending plan would be $1,134,435.

Revenues supporting the general fund would come from a proposed 16-mill tax levy, which would represent a two-thirds mill increase under the current 100 percent ratio assessment of property.

In 2001, property taxes were based on a ratio assessment of one third of the 1970 market value of property. In 2002, they will be based on 100 percent of the 1970 market value of property. In 2001, Mercer's tax rate was 46 mills, which would be 15 1/3 mills, if the 100 percent ratio assessment had applied.

A mill is $1 for every $1,000 of assessed property value. If a Mercer property owner had a $30,000 home appraised in 1970 dollars, he or she would pay $480 in taxes to the borough next year.

Councilman Jeff Swartzbeck said the two-thirds of a mill increase is within the 5 percent tax increased allowed by law, when the ratio assessment changed. Each mill brings Mercer in $16,500 in revenue.

Mercer's general fund started 2001 with a $28,800 year-end deficit in 2000. After council increased taxes 7 mills for 2001, the general fund is expected to end this year with a $3,287 deficit. The 2002 spending plan is projecting a $25,000 year-end surplus. "It's not much of a cushion, but at least it's a cushion," Swartzbeck said.

General fund spending is expected to decrease by about $15,000 from the $595,484 general fund budget in 2001. That represents a grant the borough received and then passed over to Brandy Springs Park last year, Swartzbeck said.

The only changes in the 2002 spending plan is the 4 percent wage increases for borough workers, said Swartzbeck, who is former finance director for Mercer County. Also, the borough replaced a police cruiser last year, but it is not budgeting for major expenditures in 2002, he said.

Council is expected to act on whether to adopt the budget on Dec. 11.



Back to TOP // Herald Local news // Local this day's headlines // Herald Home page



Questions/comments: online@sharon-herald.com
For info about advertising on our site or Web-site creation: advertising@sharon-herald.com
Copyright ©2001 The Sharon Herald Co. All rights reserved.
Reproduction or retransmission in any form is prohibited without our permission.

'10615