LOCK HAVEN - City taxes will remain the same in 2011 as they have for the past two years.
Real estate taxes will continue to be levied on the same split-rate system as in the past: buildings are taxed at 3.74 mills and land at 18.25 mills.
Taxable structures and properties in the city are assessed at $280 million for next year, and if all the real estate taxes are collected, the city can expect $1.75 million.
The city met with representatives from a taxation study group a few weeks ago and learned the split rate seems to be meeting its goal - to encourage property development, according to Mayor Richard P. Vilello Jr.
The study looked at just a few properties, however, he said at the city council meeting Monday evening. The city has asked the group to look at all parcels throughout the municipality for a more in-depth report next year.
Should the city decide to levy real estate taxes at just one rate, as most municipalities in Pennsylvania do, taxpayers would see changes in their tax bills similar to those seen when the county goes through reassessment.
"If we had timed this for when we did the reassessment, it would have made more sense," Vilello said.
After the recent reassessment, some taxpayers saw the tax bill on their land go up while the bill for their home went down, City Manager Richard W. Marcinkevage said. Others saw the opposite, and still others saw both rates increase or decrease together.
The city also levies the local government services tax at $52. It is expected to bring in $170,000 next year.
Other taxes are earned income tax, which is expected to bring in $400,000; business privilege tax, $120,000; and real estate transfer tax, $50,000.
Council took the first of two votes on the taxes Monday, approving them unanimously. (Councilmen Ted Forbes and William E. Baney were not present.) The second vote is scheduled for Dec. 20.
WATER RATES
Water rates will rise beginning Jan. 1, council heard.
The state Public Utilities Commission voted last month to approve increases that average 31.7 percent. This amount is less than the 42 percent the city originally requested and is the result of a settlement.
Council has already accepted the settlement, so the new rates can be in place by the beginning of the year, Marcinkevage said.
Customers will see the increases on their bills beginning in February, he said.
The rates are staggered in an effort to lighten the burden on the lowest water users, who most likely include senior citizens on fixed incomes.
Even with the increase, the 2011 water fund budget of $1.7 million is expected to end the year with a deficit of about $175,000. That is still less than this year's projected deficit of $245,409.
BUDGETS FOR 2011
Council also took the first of two votes on the full budget for next year, again passing it unanimously (with two council members absent).
The biggest increase is in health insurance, which could rise by as much as 34 percent. It could cost $200,000 more, the mayor reported. City staff are still seeking options to lower that number, council heard.
The 2011 budget includes:
n Water fund - $1,738,110 in expenses, close to this year's expenses of $1,735,100, but with only $1,563,064 in revenue.
n General fund - $3,609,604 compared with this year's expenses of $3,356,147.
n Off-street parking - $54,910 compared with this year's expenses of $51,241.
n Sewer fund - $2,339,069, compared with this year's budget of $2,168,736.
n Airport - $287,964, compared with this year's expenses of $292,273.
n Highway aid - $212,156, compared with this year's budget of $191,932.
After the meeting, council held a work session on various sections of the general fund budget. Council members had few, if any, questions on:
n The engineering department budget of $55,799, compared with this year's expenses of $53,403,
n The code enforcement budget of $82,437, compared with this year's budget of $81,173,
n The zoning budget of $36,548, compared with this year's expenses of $35,793
n The planning budget of $43,525. This spending plan is lower than this year's budget of $101,750, and actual expenses of $86,428, because there is no specific project listed for 2011 that will require outside consultants.
City Treasurer Angela Black asked for a laser printer for her office, which was budgeted to be purchased sometime this year. The office is using a dot matrix printer which is not performing well, she said, even with changing the ribbon and print head. Not only is it hard to find parts for, she said, it also uses expensive paper.
Council is expected to consider capital purchases later.
The treasurer's budgets include finance/accounting at $224,051, compared with this year's expenses of $231,839, and tax collection at $104,293, compared with this year's expenses of $102,654.
