ASHLAND - The borough council formally adopted its 2014 operating budget Wednesday that includes a small increase in real estate taxes.
The vote was 5-0 for the almost $2.5 million budget, with council President Ann Marie Groody, Vice President Raymond Walacavage, Frederick Spieles, Daniel Weikel and Danny Johnson voting in favor. Patti Wesner and Patrick Cooney were absent.
The new budget includes an increase of 0.20 mills, bringing the total real estate tax levy from 21.8 to 22.0 mills. Each mill brings in $24,000 in real estate taxes.
The additional fraction of a mill will be used for the estimated monthly payments of about $400 on the 15-year loan for the purchase of the 1996 Pierce Lance 1250 GPM Pumper from Parkland Fire Company, Middletown Township, Bucks County, for American Hose Company No. 1. The new truck replaces a 1979 Ford FMC 1000 GPM pumper.
The 2013 budget included a 1-mill increase dedicated to the capital reserve account, with the funds going toward a combination of a line of credit and a new loan for completion of the new borough police station, which became operational in the municipal building this year.
According to the 2014 budget, total revenues are estimated at $2,449,957.34 and total expenditures at $2,440,012.95.
The budget includes salary increases for full-time employees at $1,000, the same as the current year. Part-time employees, who did not receive a raise in 2013, would see a 2 percent increase in 2014.
The real estate tax rate of 22 mills is dedicated to the following accounts:
- General fund - 16.60 mills
- Street light - 2.0 mills
- Recreation - 0.70 mills
- Fire equipment - 0.70 mills (up from 0.50 mills)
- Capital reserve - 2.0 mills
The borough council also approved a resolution for a tax anticipation loan of $100,000 from M&T Bank at a 2.75 percent interest rate. 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.