MAHANOY CITY - At its November meeting the borough council tentatively adopted a 2014 operating budget that includes a 2-mill real estate tax increase dedicated to dealing with blight issues.
The tentative balanced operating budget of $1,147,029.94 raises the millage from 30.524 to 32.524 mills. The assessed value of each mill is $23,377.86. The total assessed valuation of property in the borough is $23,377,860.
The proposed budget is slightly above the 2013 budget of $1,143,980.
Councilman Raymond Cavenas read the budget details to the public from a prepared statement.
"Over the last few years, it has become apparent that the issue of blight in the borough of Mahanoy City is becoming increasingly worse," he said. "Trying to address the issues that arise from dangerous buildings has become a concern for borough council and for many of the residents. Due to this fact, council has decided to take a proactive measure in addressing blight. The borough cannot simply keep dipping into other funds and moving money as these incidents occur. So council is instituting a new fund called the 'Blight Fund.' This fund will be directly funded with tax revenue for the sole purpose of addressing blight and dangerous conditions that arise within the borough.
"Though we would otherwise be able to pass a budget with no tax increase," Cavenas continued, "this proactive measure to address blight will raise real estate taxes because there is no money available in the current budget to be shifted in the amount borough council would like to set for fighting blight."
He said the money raised through the two-mill increase is for blight problems. Tax revenues are divided as follows:
General fund, 22.115 mills; singing fund, 1.65 mills; street lighting fund, 3.35 mills; debt reduction fund, 2.935 mills; library fund, 0.474 mills, and blight fund, 2 mills.
"The median value of a two-mill increase is $17.39," Cavenas said.
The tentative budget was approved on a 4-0 vote by council President Patricia A. Schnitzius, Vice President Thom Maziekas, Francis Burke and Cavenas. Thomas Flamini, Robert Lewis and Thomas E. Oblas were absent.
The council will vote on formally adopting the budget at its Dec. 10 meeting.
After the meeting, borough Manager Daniel Lynch said, "We could have passed a balanced budget which would have been almost identical to last year's budget, but to be proactive and attack this blight, which is a major problem in town, it's best to create an actual fund dedicated to that because when we have a bad blight issue and want to go after it, we're taking money out of this fund or out of that fund.
"In 2013, we had a number of big issues that really put us out in the money we had to use to address those issues. And anything we're able to recoup through our blight efforts, such as take someone to court or sell off an abandoned lot, the money would go into the blight fund," he added.
In other business, Schnitzius announced the annual Santa Claus visit and Christmas tree lighting will be held from 6 to 8 p.m. Saturday at the lot near the former Wachovia Bank.
"There will be the horse-drawn trolley, which is great for the children to enjoy, and the trolley will bring Santa while the mayor lights the tree," Schnitzius said.
She added there will also be a live reindeer, food and crafts. Lambda Nu Sorority is sponsoring Santa at the teen canteen for photos. Food vendors will be on hand an the Active Christian Teen In Our Neighborhood Youth Group will be at St. Cecilia Chapel. There will also be a petting zoo and the Mahanoy Area Historical Society headquarters will be open.
Schnitzius said the streetscape project will not be completed until the spring.