The Herald, Sharon, PA Published Friday, Feb. 1, 2002

GREENVILLE

Huge tax increase needs court's OK

By Tom Fontaine
Herald Staff Writer

Borough taxpayers could face a hike in property taxes of between 24 percent and a whopping 48 percent over last year, according to Houpt's report of budget talks.

Greenville Borough Council President Richard S. Houpt said the borough plans to petition Mercer County Common Pleas Court for the right to exceed a countywide cap on taxes.

The countywide cap -- created by Mercer County Commissioners' decision last year to adjust assessments and millage rates -- limited municipalities from increasing property taxes by more than 5 percent this year.

Houpt said he expected borough solicitor Warren Keck III to deliver the borough's petition to the county courthouse either today or Monday. Common Pleas Court will then set a hearing date, Houpt said.

Houpt said council's budget committee -- including members Bryan Langietti, David Henderson and Pam Auchter -- was looking to add only 5 mills to the 2002 budget plan passed last year.

On New Year's Eve, council passed a 2002 spending plan that called for a 4.6-percent or 1.17-mill tax hike. That plan, however, came up between $90,000 and $100,000 short. Council reopened the $3 million-plus plan and said it would make cuts needed to balance the plan by Feb. 15.

Adding 5 additional mills to the tax increase approved on New Year's Eve translates to a 24-percent or 6.17-mill increase.

Houpt, however, said that late Thursday afternoon the borough treasurer informed him the budget still came up $80,000 short, even with the 6.17-mill hike. Houpt estimated it would take an additional 3 mills to erase that deficit.

A 9.17-mill tax hike translates to 36-percent increase -- identical to the increase levied by county commissioners.

Houpt said some budget projections have gone as high as 11 additional mills over the plan approved on New Year's Eve. A 12.17-mill hike would translate to a 48-percent increase. Each mill should generate about $39,000 for the borough, Houpt said.

Houpt said council planned to try to reach an agreement on the budget this morning and then put the plan on display at the borough building this afternoon.

The budget does not address the depleted $3.67 million bond issue. The borough used about $500,000 of the bond -- which was reserved for a multi-million recreation and revitalization project -- for general purposes in 2000. The 2001 audit, due out next week, could show that more money was taken out of the bond last year.



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