Most Neighborhoods Entering 2017 with No Tax Increase

by Jonathan Weaver

Municipalities across Armstrong County spent countless hours crunching financial numbers to try and organize a 2017 budget –which will go into effect next week.

Many of those municipalities not only had to weigh the cost of increased healthcare and insurance prices, but also felt the effects of not meeting expected tax revenues.

But, dozens of county and municipal leaders – from Armstrong County Commissioners to local boroughs and townships – pledged not to burden local homeowners with increased taxes for the coming year.

Armstrong County

The balanced General Fund budget came at a cost in the county seat, however.

Despite County Commissioners fulfilling their pledge to not raise taxes to balance the 2017 budget, more than 20 employees reportedly were laid off following the announcement by County Commissioners Pat Fabian, Jason Renshaw and George Skamai.

Controller Myra Miller openly spoke the December 15 public meeting about how budget cuts have affected her department. Those cuts are thought to potentially eliminate two full-time employees, some of Miller’s training costs and money appropriated for a solicitor.

Director of Administration Jennifer Long said government officials had been working on the budget since August.

The department of corrections is expected to spend the most of the 57 departments considered next year - $4.2 million. Tax collectors would bring in the most revenue, of about $13.25 million.

Most departments are projected to spend more money than they generate.

Long also said allocations to outside groups, such as CYF and 9-1-1, also increased due to state mandates, but most of the expenses were offset – including with a decreased allocation to the Armstrong County Health Center, through “right-sizing” departments and a decrease in healthcare premiums for at-will employees.

East Franklin Township

East Franklin Township is projected to receive more revenue than expected in 2016, meaning supervisors will be adopt a balanced budget this week with money to spare.

Township Supervisors Barry Peters, Dan Goldinger and David Stewart outlined the projected-$1.23 million funding plan for next year with Township Secretary Debra Cornman– a budget that is projected to earn $6,000 more than even expected in 2016 to keep real estate taxes at six mills.

“We’re in the good by $13,786 unless anyone wants to change any line item,” Cornman said.

The extra revenue in 2016 and expected next year will allow supervisors to continue paying an overall $10,500 deficit that could be realized from sewage treatment plant operations, a contractual salary increase in the police department, and increased building loan payments.

Cornman did not predict wage increases for herself and Assistant Secretary Carla Scholl since those wages are not determined until after the New Year.

Cornman and Scholl did receive at least a $1 raise per hour in 2015, as well as did part-time Police Officer Robert Gahagan, Roadmaster Ron Lithgow, and part-time work crew members Norman Bennett and Dean Hepler.

Ford City Borough

Ford City Borough’s elected council members unanimously passed its 2017 budget without a tax increase.

Despite a perceived-loss of revenue, taxpayers will not have to pay more than that of 2016 – 17.4 mills.

Most taxes levied are used for general purposes, but funding is also used toward fire apparatus, the public library, street lighting and non-uniform employees’ pension retirement.

Taxes are estimated to generate more than $700,000 next year.

In the final funding plan – which is identical to the proposed budget that was advertised for the past month -, Ford City Borough predicts a nearly-15 percent loss in total income – with increases in projected tax revenue and grants, but more than $1 million less in public utility revenue after Council members elected to change inter- and intrafund transfer accounts following an audit.

The 2017 budget also includes around-the-clock police protection, salary for a part-time Borough Manager in Police Chief Michael Greenlee and wages for a part-time office employee (both as recommended by Novak Consulting Group in their Early Intervention Program report), and at least a 20 percent increase in healthcare premiums.

Kittanning Borough

No changes were made to the tentative 2017 Kittanning Borough budget before the end of the calendar year, either – marking another year without a tax increase.

An increase in revenue will offset rising hospitalization expenses – equaling a nearly-$2.6 million spending plan that does not assume increased taxes or garbage rates.

Council President Kim Fox said there are some changes compared to last year’s budget, though – which included a more-than $45,000 increase in police officers, garbage and street workers’ hospitalization costs.

Council members did entertain a motion to purchase a new garbage truck (either with or without raising garbage rates to pay for it), but the motions failed 3-5.

The largest expense for the Borough next year will continue to be related to the Borough police department, with a reported-roughly $850,000 budgeted toward overall police protection.

Manor Township

With $1.4 million available to Manor Township supervisors in 2017, township supervisors will not raise taxes next year.

After a pair of special meetings to review the six fund budgets and allowing local residents to review the tentative budget, Supervisor Chair Paul Rearick, Vice-Chair Bob Southworth and Supervisor Don Palmer adopted the budget to keep the taxes at six mills.

Taxes haven’t been raised in more than a dozen years.

Township Secretary Jill Davis said that as of January 1, township supervisors will have access to more than $1.6 million compared to a total of $1.2 million in receipts.

The budget will have a balance of nearly $1 million at the end of 2017.

A single mill of township taxes will go toward the volunteer fire department as usual.

Last year, according to a document submitted by Fire Department First Lieutenant and Treasurer John Breski, the fire department received about $46,500. A majority of that (more than $13,700) went toward miscellaneous truck expenses, and more than $9,000 each went toward the fire hall along Byron Street and the new engine.

More money is expected to be paid this year for, among other things, more police coverage and Senate Engineering projects. The police department budget makes up about $150,000.

Officers are expected to patrol the municipality up to 500 hours per month in 2017 – up from the 397 hours scheduled for November.

North Buffalo Township

In the past few years since a tax increase, North Buffalo Township has slowly built up its revenue and will realize its largest financial budget since at least the beginning of the 21st century.

Following two budget workshops, North Buffalo Township Supervisors David Wolfe, Clark Whiteman and Paul Kirkwood adopted a $1.2 million budget for next year.

The current tax rate is 5.15 mills.

Supervisors will carry over a nearly-$91,000 surplus to begin 2017 with, and hope to use that money to purchase a new security system, windows at the township building, road and maintenance equipment and a salt shed.

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