MILTON — Borough taxpayers who saw their real estate taxes decrease by two mills in 2007 will be paying those two mills again in 2010, thanks to the down economy, but borough officials say it’s not a tax increase.
During the first reading Wednesday night of the proposed 2010 budget, which borough officials described as “challenging,” they said it was necessary to restore taxes to the 2007 level because of reduced tax receipts.
The borough has been hard hit by declines in real estate tax collections due to recent reassessments, a 25 percent reduction in real estate transfer taxes, a loss of $36,000 in Local Service Tax receipts due to several plant closings and layoffs and lower earned income tax payments, said Councilman Jason Budman, who developed the budget.
When the borough enacted the Local Service Tax in 1997, which required everyone working in the borough to pay the $52 annual tax, real estate taxes were reduced by two mills.
“We still haven’t had a tax increase since 1997,” Budman said as he revealed a balanced budget of $2.46 million to the council.
Borough Manager Chuck Beck said the two-mill increase would yield about $132,000 in revenue for the borough. The tax rate will increase from 9.55 mills to 11.55 mills.
Budman also recommended the borough not open the Milton Community Pool in 2010, saving the municipality an estimated $48,000.
However, a letter from the Milton YMCA may alter that recommendation. The borough has offered to sell the pool to the YMCA, and a letter from the Y indicated interest in taking over the pool. However, the letter went on to say that the Y wanted to develop a business plan before acting on the borough’s offer, which probably could not be completed in time to open the pool next year. The council seemed inclined to give the YMCA the time to prepare a plan, although no action was taken.
In another matter, Beck said Lycoming County Resource Management Services will contact downtown businesses to gauge interest in a curbside recycling program. Beck emphasized the program, if enacted, would be at no cost. LCRMS would receive the revenue from recycled items, and the borough would receive credit for the tonnage, which would increase receipts from the state 904 recycling program.
“This is a win-win-win solution for all of us,” Beck said.
Jay Miller, a resident of Filbert Street, asked the council to enact stricter curfew regulations. He said juveniles set a fire on the porch of an occupied home near his, and he said police officers seem powerless to stop such actions.
“I would hate to have it on my conscience if some children died because the police couldn’t stop some kids,” he said. Miller has attended several council meetings over the past two years asking for stricter curfews, and he said after the meeting he is frustrated with the lack of action. Several council members have explained that they cannot supersede state regulations, although they have been considering higher fines for curfew violators.
Council members Denise Ulmer and Judd Clemens were absent.
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Economy forces Milton council to restore 2 mills
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