ALLENTOWN — The borough’s 2002 spending plan was introduced last week. The $1,536,683 proposed budget is down $11,358 from last year’s total of $1,548,040.
But the amount to be raised by taxes for support of the municipal budget has gone up from $761,685 to $810,683, an increase of $48,998.
The tentative budget includes a tax increase of 5 cents per $100 of assessed valuation, which would increase the total tax rate for municipal purposes to 80 cents per $100 of assessed valuation.
The public hearing is scheduled for April 23.
In 2001, the municipal tax was 75 cents and in 2000 it was 72 cents, but that was because of additional state aid that hasn’t been available since then.
With the increase, the owner of a house valued at $150,000 would have to pay about $75 in additional municipal taxes.
According to Chief Financial Officer Robert Benick, the budget uses $250,000 from the $462,300 surplus account to offset the tax rate.
In Allentown, one penny of additional tax represents $10,000 in revenue, so 5 cents would bring in an additional $50,000. The increase in police salaries alone, $46,444, almost equals that amount.
In addition to the increased cost of the police department, the borough is also spending more on its first aid squad, going from a $16,600 contribution in 2001 to $29,400 in 2002. According to Benick, that is a result of Washington Township pulling out of the shared services agreement.
The borough is also paying $20,000 more for the fire department. "That’s to pay for additional part-time firefighters to drive the truck," Benick said.
There is also an $11,000 increase in county tipping fees and the cost of improvements on Broad Street and the paving of Johnson, Lakeview and Gordon streets, of which the state Department of Transportation paid half and the borough has to pay the rest.
The increases are offset by $35,393 in deferred charges because the borough paid off the purchase of two vehicles, a fire truck that was purchased in 1995, and a four-wheel-drive police vehicle.
According to Benick, Allentown’s fiscal spending plan has remained pretty flat over the past few years with little or no increase in taxes.
"In fact, it’s been less than the inflation rate," he said.