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Thorpe mayor questions water rate increase

The property tax rate will stay the same but water rates will increase, at least temporarily, in Jim Thorpe Borough for 2015.

Council voted unanimously Thursday night to adopt a general operating budget that keeps the property tax rate at 8.4 mills.Discussion centered on water, however, as council President Betsy Ahner announced a $6 flat rate increase per customer.The rate will be $27.69 for the first 1,000 gallons each month.However, council may change its mind when it finds out exactly how much money is in its water account."I don't understand why we need a $6 increase, which will particularly hit our senior citizens hard, when I look at the water fund balance for July and it's at $173,000, $197,000 in November and $253,910 on Dec. 1," said Mayor Michael Sofranko."I've been told for the last six months that our revenue is shrinking, but it's not showing up in the budget. Am I missing something?"Ahner said the water budget was short, but the fund balance was not.Solicitor James Nanovic urged council to approve the rate increase, a move they could always undo by resolution later."If you adopt a budget without an increase and a month from now you realize you need money, we're in a tough spot," Nanovic said.Ahner said 80 houses in town have water temporarily off, meaning no revenue is coming in."We lost $21,000 worth of revenue because of that," she said.There have also been billing deficiencies that could be costing the borough even more money."People come in every month and complain about their high water bills," Sofranko said."It sounds like irresponsible management to me. I'm not trying to be cruel, I'm trying to be realistic. Council did a great job getting the general fund in line to avoid a tax increase, but something has to be fixed with water. I'm tired of getting the phone calls and people are tired of paying high bills."The 2015 budget will not have an increase in garbage or sewer rates.Other rates include a 0.5-mill fire tax, 0.0055-mill occupation tax, $5 per capita tax, $52 local services tax, 1 percent earned income tax and a 1 percent realty transfer tax.Expenditures and revenues are balanced at $1,951,926.