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Summit Hill hopes to retain tax rates

Despite a potential deficit of more than $36,000 in its 2019 budget, Summit Hill Borough Council doesn’t anticipate raising taxes.

The council held its first budget workshop Monday night with five council members present. Council President Michael Kokinda and councilman Gregory Kosciolek were absent.

The council members will review the figures compiled by Secretary-Treasurer Kira Steber and try to make some cuts to reduce the deficit amount.

Expenses in the budget figures show income is expected to be over $310,000 less in 2019 than it was in 2018, but income could total $345,000 less.

Some council members agreed one of the biggest problems in meeting expenses is collecting real estate taxes. As an example, the 2018 budget shows real estate income at $740,000, but as of Oct. 31 there was more than a $100,000 shortfall.

In 2019, real estate taxes are projected to generate $732,500 in revenue, but council members doubted this amount will be collected.

Council members debated how to have delinquent taxes collected. Presently delinquencies are handled by the county tax claim bureau. Council indicated it may seek a third party to collect delinquent taxes. They said at one time a firm had been hired to handle delinquencies, but council member Bill O’Gurek said the firm “was extremely punitive to people” and “buried people in fees.”

Karen Ruzicka, a member of the council, said a borough ordinance states that when landlords become late in paying taxes, “we can stop them from renting until they pay the taxes.

“I think we have to be really firm on this stuff,” Ruzicka said.

She said a state bulletin offered options on collecting delinquent taxes. She urged these options be explored.

“We need to get this revenue in,” she said.

Councilman David Wargo said he would like the council to look at the shared services agreement the borough has with Coaldale and Lansford.

Ruzicka agreed, stating she has seen part-time workers sent to help Coaldale. She said she doesn’t think part-time workers should be called in to help with the shared services and said that regular employees should be utilized.

O’Gurek said one place where cuts might be obtainable is to put less money into capital improvement accounts.

Steber said, “We’re not overspending,” adding it is people not paying their real estate taxes which is creating a problem.

One other concern is the amount of electricity the community center is using. Steber said the rent charged for use of the community center don’t cover the cost of electricity used. She said the rental fees collected generally cover just cleaning and maintenance costs at the center.

In the budget figures presented at the workshop, expenses for 2019 would total $1,312,255.56 while income is projected at $1,275,936.