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No Lehighton tax increase planned

Lehighton residents may get a break on their property tax bills next year.

That's if borough council opts to hold the line on the 2015 spending plan, as discussed at a special meeting on Monday.Borough Manager Nicole Beckett informed council the borough's tax rate is currently at 7.5 mills, which generates $608,085 in tax revenue.Beckett announced that the borough will no longer be able to use its Community Development Block Grant funds for payment of its debt service to the annex rehabilitation loan.She said the borough must eventually select a new project.Beckett said a project to reconstruct the Sgt. Stanley Hoffman Boulevard bypass is questionable because there aren't any homes there. The borough would have to do extra assessment to determine how much would be covered, she said.A listing of projects council could consider include upgrading ADA ramps in areas the borough would be paving; recreation; historic preservation; housing rehab; infrastructure improvements; prevention and elimination of blight; or other community development, Beckett said.Council President Grant Hunsicker asked whether the borough could use the CDBG funding for Stedman Avenue, as that could come out of liquid fuels.Beckett said the borough plans on paving Stedman Avenue, and that work is in the specification phase, as the engineer has been drafting specs for the project.The borough anticipates using liquid fuels for the project in spring of 2015, she said.Estimates for Stedman Avenue ramps are $28,000, while paving is about $70,000, Beckett said.She said the borough would have to go out and do an income survey of the street it would pave, as required by the CDBG program. A survey would not be necessary for the ramp, she said.Councilman Scott Rehrig suggested the term the borough should look at is "reclamation."Beckett said the borough will lose $75,000 toward the annex rehabilitation loan, hence the need to find a new project.There is an estimated $400,000 debt left on the annex loan, she said.At that, council agreed to have the borough solicitor make a resolution for forgiveness of the debt.Beckett said the borough was initially looking at the prospect of a 2.6-mill increase.But Beckett said the borough has $48,000 in general fund money it could transfer to the reserves for the operating account.Council agreed to the transfer.Beckett said the borough was still $161,000 short to balance the budget.She suggested the borough could either increase the transfer for power and light by 2 percent to balance the general fund budget, or increase the tax rate by 2 mills.Currently, the L&P transfer covers 20 percent of the general fund expenses.Council agreed to increase the transfer for power and light, which will cover 22 percent of the general fund expenses.Rehrig suggested the borough take 1 mill of tax for road paving, which would give the borough another $81,000.No action was taken on that suggestion.Later, council agreed to renegotiate the borough's fire protection services agreement with Mahoning Township up to $5,000 for fire protection services.Rehrig suggested no overtime be granted for all departments, except during extreme conditions.Only the borough manager and department heads may grant overtime, he said."I think it's important that we watch our pennies," Rehrig said. "There's different ways we can approach overtime."Council agreed to that measure.If council were to approve next year's budget with no tax increase, a person with a home valued at $100,000, which would be assessed at $50,000, would again pay $375 to the borough next year in property taxes.In December, council approved this year's spending plan with a 1-mill increase.There was no increase in taxes in 2013. In 2012, 2 mills of tax were added for the fire station construction project.That was done to improve security at borough hall; to add systems for employee accountability; and to allocate funds for the repaving of the pool parking lot. The budget will next be discussed when council holds a special meeting at 6 p.m. Tuesday.Council expects to adopt the proposed budget at its regularly scheduled meeting on Nov. 24.In other business, council decided:• To table salary discussion on nonunion employees.• To have Beckett draft a letter and send it to borough Fire Chief Gary Frable thanking him for his service.• To advertise for part-time seasonal public work labor.• To approve 2014 audit confirmation letter.