RINGTOWN - The borough council adopted its tentative 2013 budget Monday evening and held the line on taxes for a second consecutive year.
However, in order to avoid a tax increase, expenditures were pared compared to the 2012 budget, including neither heat nor electricity for the former Ringtown Area Elementary Center building, which the borough owns.
Revenues and expenses are balanced at $348,600, with the real estate tax remaining at 10 mills.
Taxes were increased by 2 mills in 2011. One mill brings in $12,067 in revenue.
Tax revenues are budgeted to increase in 2013, bringing in $211,600 as compared to $210,136 in 2012. Most revenue line items remain about the same, with some minor changes.
The 2013 expenditures balance with income, with a major decrease coming from the former school building. By cutting heating and electricity, the borough reduced those line items by $8,600 and $3,000, respectively. Also, school building repairs and maintenance on two line items were reduced from $4,000 in 2012 to $1,000 in 2013.
The cuts compensate for a major jump in worker's compensation insurance premiums, increasing from $14,485 to $20,200. Health insurance premiums also will see a $2,000 increase next year.
"It is a balanced budget with no tax increase," council President Julian Milewski, a Republican-Herald employee, said. "We cut out heat and electricity for the school building. We reduced some of our supply expenses. The health care premium went up 8 percent and worker's comp took a hit.
"The employee raises were limited to 2 percent, which, according to the Schuylkill Chamber of Commerce, is what the market bears at this point. We also shortened up the summer help."
Before the budget was put to a vote, Milewski asked the council and Mayor Albert Breznik Jr. for opinions on the plan to cut the services to the school building. Milewski said the estimated $12,000 heating and lighting expenses equal a mill in tax revenue.
"Absolutely not!" said Breznik, with emphasis on not raising taxes for the school building, to which Councilman Tom Murray agreed.
Milewski asked each council member for an opinion, and each agreed there should be no increase for the building.
"I agree. I don't think it's worth it," said Milewski.
"You cannot penalize the citizens of the borough for that building. Period," Breznik said.
The budget was tentatively adopted in a unanimous vote.