posted by Mike Madison at 8:37 PM /
The P-G summarizes the new proposed Mt. Lebanon budget.
How does this affect tax rates?
Link: http://www.post-gazette.com/pg/05307/599508.stm
The $38.5 million plan, revealed Tuesday, calls for millions in increases and new expenses, including $384,000 in additional pension contributions; $200,000 to beef up the fund balance; and $335,000 in increased staff health care costs, including $234,000 for a new medical trust fund to ensure retirees' health care can be paid in the future.
Increased fuel and utility bills will cost an additional $123,000, road salt costs will increase $42,000 and negotiated labor wage raises are $262,000 more than 2005 levels.
To balance the budget, Municipal Manager Stephen Feller has suggested increasing the earned income tax rate 0.1 percent, which would bring the rate to 1.4 percent, including the 0.8 percent share that goes to the school district. The increase would cost a household with Mt. Lebanon's median income of $61,000 an additional $61 next year.
How does this affect tax rates?
So [Manager Stephen] Feller has suggested the commissioners agree to increase the property tax millage from 4.57 mills to 4.91 mills -- then immediately roll it back to 4.57 mills to fulfill the requirements of the charter. That would be a paper transaction that would have no effect on residents' property tax bills.
Mr. Feller acknowledged some people may say that proposal isn't what the Home Rule Charter intended but he said he prefers raising the earned income tax to increasing property tax. The municipality did the same thing in 2003 when the earned income tax was increased another 0.1 percent, and some residents complained.
The earned income tax increase would generate about $984,000 in revenue, although only $787,000 would come in before 2007 because of the filing deadlines.
Link: http://www.post-gazette.com/pg/05307/599508.stm
1 Comments:
Technically it may be called a budget, but the problem with the municipal commissioners, just like the school board directors, is that they don't understand the word. Increased costs simply mean increasing taxes to pay for their continued wasteful spending. The idea of making any meaningful cuts in expenses has never been an option, and they always have excuses; this year it's the tsunami and the hurricanes and next year, and the years after that it will be some other external factors that they can't control. Just like little children, it's always someone elses fault.
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