GIRARDVILLE - Taxpayers will see a 4-mill increase in real estate taxes after the borough council formally adopted its 2014 operating budget at Thursday's meeting.
The real estate tax rate will increase from 14.7 mills to 18.7 mills. One mill brings in about $6,000. The budget's revenue and expenditures are balanced at $413,862. The vote to approve the budget was 5-0.
A bulk of the tax increase will go to the purchase of a new police vehicle to replace one that was extensively damaged Oct. 10 when a Ford F150 pickup rear-ended the police vehicle driven by Patrolman Doug Litwhiler at the east end of Main Street.
At a special meeting in October, the council approved the purchase of a 2013 Ford Interceptor from Kovatch Ford Inc., Nesquehoning, for $32,177.28 through the state's COSTARS program, eliminating the need to bid.
Councilman Joseph Quinn explained after November's meeting that utility expenses have risen and $11,000 in engineering costs were billed in one year rather than over a two-year period by the county. Those factors, in conjunction with the police vehicle, which is partially being paid through a $21,000 loan, led to the tax increase, which will cost property owners between $25 and $40 on average depending on the property assessment.
The borough council approved a resolution for tax anticipation loan of $50,000 with Miners Bank at an interest rate of 2.75 percent. Tax anticipation loans are used by municipalities to pay for general operating expenses, such as salaries, during the first few months of the new year until taxes begin to be collected.
"I will send the resolution to DCED (state Department of Community and Economic Development) and I expect I'll have their receipt back in a week or two," borough solicitor Christopher Riedlinger said. "After Jan. 1, we can set up the closing and secure the loan."
The reorganization meeting will be held at 7:30 p.m. Jan. 6, followed immediately by the January monthly meeting.