Shenandoah passes final 2020 budget; no tax increase
KAYLEE LINDENMUTH / SENTINEL PHOTO - Members of Shenandoah Borough Council meet on Dec. 19, 2019.
By Kaylee Lindenmuth | [email protected]
SHENANDOAH – As of Thursday evening, it’s official. No tax or rate increases of any kind from Shenandoah borough itself for next year.
The borough approved its $3,587,593 final 2020 budget at its December meeting of council, moved to Thursday from Monday.
The motion to approve was made by Katie Catizone, seconded by Gordon Slater. Prior to the vote, Mayor Andrew Szczyglak asked to be certain there were no tax increases.
”No tax increases, no increases in any other fees,” Council President Leo Pietkiewicz answered.
The budget has expected revenues and expenditures of $3,587,593, according to a budget memorandum provided by Pietkiewicz tothe Sentinel.
The memorandum provided insight into the financial situation of the borough, explaining that taxable real estate for 2020 in the borough amounts to $30,704,805 once county owned properties are excluded.
“Unfortunately, what continues to impact the borough is the amount of delinquent real estate taxes,” the memorandum states. “The tax millage rate for 2019 will remain at the current rate of 27 mills. Unfortunately, what continues to impact the borough’s revenue capacity is the amount of annual delinquent taxes.”
According to the memorandum, the amount of delinquent taxes in 2018 was $220,842.
This year’s budget factors in a 1.5% increase and plus health care benefit increases for the police force. A
The budget is split into three funds: the general fund, sewer revenue fund, and highway aid fund. The general fund is expected to be $2,109,000, the sewer revenue fund $1,272,500, and the highway aid fund $206,093.
The memorandum explains that the borough has no plans to increase sewer rates despite plans to replace the current 40-year-old sewer plant in William Penn through a $5.4 Million grant and $13 Million loan.
“Typically, sewer plants have an economic life of 20 years,” the memorandum states. “The existing plant is in excess of 40 years old and is plagued with aged and outdated technology. While the authority has managed to keep it operable, repairs and improvements are becoming cost-prohibitive.”
The highway aid fund, the memorandum adds, funds snow removal, street equipment maintenance and acquisitions, and street lighting. State aid contributing this amounts to $145,328.
“Like any budget, this budget is a projection of what 2020 revenues and expenditures are anticipated to be,” the memo adds. “This budget was prepared taking into account the borough’s recent three year experience. In the event there are any unexpected occurrences, adjustments must be made.”
The memorandum concludes by noting the borough’s ongoing projects, including the Girard Park Recreational Project, Pennsylvania Economy League study of the municipal authority, the sewer plant project, and “the aggressive demolition program the borough has initiated.”
“Caution should be exercised to insure these projects are continued and not jeopardized,” the memo concludes.
Shenandoah last raised its property tax rate for the 2016 budget, from 25 mills to its current rate.
One mill is equal to a dollar for every $1,000 in assessed value of a property.
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