Allentown adopts $1.5M 2002 municipal budget

Allentown adopts $1.5M 2002 municipal budget

By Brooke M. Herman

Staff Writer

ALLENTOWN — The $1.5 million municipal budget adopted at the April 23 meeting promises taxpayers a 5-cent increase, which brings the 2002 municipal tax levy to 80 cents per $100 of assessed valuation.

With two council members absent from the meeting, the 4-0 decision came after Borough Council President Peter Pantages reviewed the spending plan.

Pantages said that it is important to look at not just the figure, but where it is going.

"Although the amount being raised in taxes is $46,500 more than in 2001," he said, "the key point to realize is that spending has gone up dramatically in certain areas."

These areas include the police department, fire and first aid departments. The police salaries are increasing from $294,946 in 2001 to $341,390. The fire department, getting a $20,000 increase, will receive $50,000, which will go toward part-time firefighters.

The borough will be spending $16,600 more than last year on its first aid, bringing the amount up to $29,400. According to Chief Financial Officer Robert Benick, this is happening after Washington Township pulled out of a joint operation.

Other significant operating costs are the following: Spending on liability insurance will decrease from $8,136 in 2001 to $7,320 in 2002; health benefits will see a $10,000 increase from $59,000 to $69,000; and pensions are increasing from $4,708 to $5439.

The borough will be using part of this and the tax rate increase to pay off $68,000 of debt in old ordinances. According to Benick, it also will be retiring debt this year in the sewer plant and the water utility, where it will be paying off $30,000 in notes and $20,981 in bonds.

Despite the tax hike, the budget, coming in at exactly $1,536,683, dropped from last year’s $1,758,657 budget.

According to Benick, part of the municipal budget fluctuation is based on grants the borough receives.

"Last year a lot of grants came in and now they have become available," he said. He added that these grants include money for community development and for the drug alliance program, which the area towns take turns operating.

"The year that we run the program, we get the extra money, which in turn affects the budget," Benick said.