ASHLAND - The borough council adopted a tentative 2013 operating budget during Monday's special meeting which includes a 1 mill tax increase.
It also hired a new borough manager.
Real-estate taxes will increase from 20.80 to 21.80 mills, with the 1 mill increase going to the capital reserve account.
Before the vote, council President Frederick Spieles said the borough treasurer/office manager Patricia Moyer spent much time in putting the budget together.
"Patty Moyer did a lot of work on it - a lot of work," Spieles said. "She did everything with the figures we had available to us. She didn't do any estimating or guessing."
The tentative budget includes $994,385.85 in general account revenue and $993,151 in expenditures.
The real-estate tax rate of 21.80 mills for 2013 is dedicated to the following accounts:
- General Fund - 16.60 mills.
- Street Light - 2 mills.
- Recreation - 0.70 mills.
- Fire Equipment - 0.50 mills.
- Capital Reserve - 2 mills.
Spieles said the tax increase was needed for the capital reserve account because the borough is getting another loan to complete the new police station, which will be in the lower level of borough hall, which is also anthracite coal mining museum leased from the state.
"We couldn't get a grant for the police station project, which has been ongoing for three years," Spieles said. "The federal government wouldn't give us a grant because we don't own the building. So, we worked with M&T Bank and they gave us a very good low-interest loan. We were paying that loan through the current tax revenue. However, we had to apply for an additional loan, and our loan payment will go from $3,100 to $7,100 per month. That is one reason we took the tax rate by one mill."
Councilwoman Ann Marie Groody further explained, "The loan that we took out for the police department and the rolling home equity loan that we have were combined into one loan. By doing this, we are getting ahead in getting both paid off within two years."
Councilman Daniel Weikel made the motion for the tentative adoption, with Councilman Danny Johnson providing the second. Voting in favor were Spieles, Weikel, Johnson, Groody and Ray Walacavage. Voting against was Patti Wesner. Patrick Cooney was absent.
In a related matter, the council approved the advertisement of the 2013 tax ordinance.
The 2013 budget will be formally adopted at the Dec. 19 meeting at 7 p.m.
The first item on the meeting agenda was the hiring of a borough manager/secretary. When Spieles asked for a motion, Groody requested an executive session for personnel matters. When the council returned from the 26-minute session, Groody motioned to hire Ray Jones of Ashland for the part-time position. The second was made by Weikel. The vote was unanimous. Jones was one of 10 applicants for the position.
Jones will work 32 hours per week at $20 per hour with no benefits, with a probationary period of 90 days, during which he will meet with borough council every 30 days to review his progress.
Jones, 45, serves as first assistant fire chief in Ashland. He will begin the job in the very near future.