Jim Thorpe Council tables budget talk; LST to double
Jim Thorpe Borough Council tabled consideration of its tentative 2015 budget on Thursday night, opting for additional time to consider whether to approve a half-mill property tax increase or hold the line.
What likely won't be up for debate when council takes an official vote on the budget is an increase in the borough local services tax from $25 to $52. Employees who work in Jim Thorpe Borough pay the tax.The proposed increase would bring the borough to 8.9 mills.Councilman Greg Strubinger said he would like to see the borough hold the line on taxes following a two-mill increase in the current year's budget."We found out tonight we'll be saving $35,000 on insurance costs, and I don't think that figure is included in the proposed budget," he said. "Our best bet is to hold the line and watch the spending."Strubinger was also troubled that the borough may also tack on a water rate increase for next year.With one council member, Joe Krebs, absent, Mayor Michael Sofranko said he had to be prepared to break a 3-3 tie on the budget, something he wasn't comfortable doing Monday."One of the biggest complaints I hear is that there are no jobs in Jim Thorpe," Sofranko said. "Now the jobs that are here, we are going to tax those people more than double with the LST, but we might not raise the real estate tax? I don't want to raise the real estate tax as much as the next person. My issue is I don't want to tax all the jobs out of the borough."Council President Betsy Ahner responded, noting that if the borough raises the property tax it would be "making people move because they can't afford to live here."Borough Solicitor James Nanovic said a lot of other municipalities have already raised their LST to $52, the maximum level for the tax.Around 1,357 pay the LST tax for working in Jim Thorpe Borough. Of note, 290 of those employees work for Carbon County and 222 for Jim Thorpe School District.With a tax increase, the borough projects revenues of $1,982,851 and expenditures of $1,975,188.In 2013, the borough ended the year $116,964 in the red after finishing 2012 $173,000 in the black."Something went wrong there," Sofranko said. "I get a little concerned when I hear from our treasurer that without an LST and property tax increase, we may not make payroll by this time next year. That being said, there is $35,000 in insurance savings that isn't accounted for here. How could I break a potential tie without all the information?"The fluctuation in year-end numbers is one reason council member John McGuire said he is a fan of having a borough manager."We are not getting it done," he said. "We don't have the people to do it. Years ago you had bankers and that kind of thing. We need someone here that can run this."All other taxes, including fire tax (0.5 mills), occupational tax (0.0055 mills), per capita tax ($5), earned income tax (1 percent) and realty transfer tax (1 percent) would remain the same.