The Herald, Sharon, PA Published Wednesday, June 5, 2002

SHENANGO VALLEY

Demographic trends support merger ideals, chairman says
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Age, flagging wages affect all in study
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FINANCIAL REPORT INCOMPLETE; TAX PLAN IS FLOATED

By Joe Pinchot
Herald Staff Writer

Although Hermitage has enjoyed strong business and residential growth in recent years, it still is subject to the same troubling demographic trends of the rest of the area, said Robert Jazwinski, chairman of the Shenango Valley Intergovernmental Study Committee's finance subcommittee.

Sure, the number of people employed in Mercer County grew 26 percent from 1983 to 2000 -- 10 percentage points higher than the state average -- but per capita income, when compared to the state average, fell in roughly the same time period, Jazwinski said.

In 1980, Mercer Countians made 94 percent of the state average. Twenty years later, they made only 74 percent of the state average, he said.

A likely explanation for the income loss is that the manufacturing jobs lost in the lay offs of the '80s were replaced by jobs that didn't pay as well, and that the population is aging, he said.

Jazwinski, a former Hermitage commissioner, said his greatest concern about the future of Mercer County is the steady population decline since 1960, and the aging of those who live here. Pennsylvania already has the second oldest population in the country at 15.6 percent, and the Shenango Valley has a higher percentage of older residents, 21.3 percent.

"Hermitage is not immune to the perils of the region," Jazwinski said.

It makes sense to tackle issues of population and income from a larger community standpoint than just one municipality, he said.

While that seems to support a consolidation of Hermitage, Farrell, Sharon, Sharpsville and Wheatland -- which the committee is studying -- Jazwinski added that his committee has not put together a proposed budget for a consolidated community.

Jazwinski said he needs the other subcommittees to complete their reports before the finance committee can start working on a budget. The police subcommittee has not finished its report.

But, the finance committee has decided that the budget will be based on a tax system borrowed from Hermitage.

Sharpsville, Wheatland, Farrell and Sharon are much more reliant on property taxes than Hermitage, which has a much higher earned income tax.

Hermitage and Farrell are home rule communities, which gives them more flexibility in setting taxes.

Jazwinski said an earned income tax has the benefit that its proceeds can grow as wages go up with inflation. Property taxes do not get the same inflationary boost, he said.

Hermitage's tax system Also given on the site are demographic breakdowns of the area, showing household income, population by age and trends.

A diagram of the development shows it would have a large parking lot fronting North Hermitage Road with some parking area facing Dutch Lane. A major retailer would be housed on the south side of the main structure with smaller stores in the middle with another large retailer on the north side. A separate building on the southern end of the property shows it would house smaller anchor tenants.

Hermitage officials have insisted that no developer has presented the city with any proposed plans for a development at the location.

"There have been inquiries from local engineering firms about the availability, about capacity in the sanitary sewer system if that property would be developed,'' said Gary Hinkson, Hermitage city manager. "There have been inquiries about our regulations and zoning requirements and those types of things. But there has been no submission to the city of anything regarding that site.''

On its Web site NRDC described itself as a 40-year-old development and management company which has scores of properties, mainly on the East Coast, with more than 13 million square feet under roof.

On the Internet: www.nrdc.com



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