ALLENTOWN: Tax hike expected in borough

Mayor Stuart Fierstein pointed the ongoing impacts of Verizon forgoing tax payments to the borough.

by David Kilby, Special Writer
ALLENTOWN — Borough officials plan to hold a public hearing for its tentative budget at its April 29 Borough Council meeting at 7 p.m.
   For 2014, the total tentative municipal budget, which includes appropriations necessary for the borough to operate, is $2.08 million, while the amount to be raised by taxes would be $1.45 million, according to budget documents provided by borough officials.
   The public hearing will offer an opportunity for residents to comment on the budget. The borough still needs state approval before it can officially adopt its budget.
   The tax rate is 76.2 cents per $100 of assessed value, an increase from last year’s rate of 73.4 cents. A homeowner with a house assessed at the 2013 borough average of $288,114 would pay $2,195.43 in municipal taxes this year, which is about $80 more than last year for a home assessed at the same amount.
   Mayor Stuart Fierstein lamented the ongoing impacts of Verizon forgoing tax payments to the borough.
   ”This will be the fourth year without the Verizon personal property tax,” Mayor Fierstein said. “Verizon has determined that by some prior-existing test rule that the state created, where the wired phone service is, in their opinion, less than 50 percent, they don’t have to pay any personal property tax.”
   This year, roughly one third of municipalities who were paid a personal property tax by Verizon are not getting paid by Verizon, the mayor added.
   The League of Municipalities has participated in a joint lawsuit, and there’s been a tax appeal, however “the state tax court doesn’t want to hear it,” he said.
   ”So it continues to expand,” he added. “So for the borough to have lost that, that’s over a $3 million value, and 2.8 cents on the tax bill that everyone else has to make up for.”
   According to budget documents, the borough anticipates a surplus of $171,239.19 in the 2014 budget, which is a decrease from last year’s $180,152.50 surplus.
   In addition to the $1.447 million to be raised by taxes, sources of revenue for the borough include $131,595 in state aid, $131,500 from the cellular antenna site lease agreement, $88,000 from municipal court, $17,000 from interest in costs on taxes, $13,750 from fees and permits, $3,150 from alcoholic beverage licenses, $750 from interest on investments and deposits and $75,000 in receipts from delinquent taxes.
   The tentative operating budget includes $584,335 for public safety, which includes $457,560 for police, $34,000 in aid to the volunteer fire company, $90,000 in other fire expenses, $23,850 for the first aid organization, $6,225 for a fire protection official and $6,700 for a prosecutor.
   Public works appropriations account for $222,110 of the tentative operating budget, including $135,000 for garbage and trash removal, $60,000 for road repair and maintenance, $11,600 for vehicle maintenance, $10,550 for buildings and grounds, $3,960 for the recycling program and $1,000 for the Shade Tree Commission.
   The tentative budget also includes $218,223 in health care costs, $158,428 for retirement and social security systems and $141,345 for insurance.
   Other appropriations in the tentative budget include $190,354.74 for debt service, $105,000 for engineering services and costs, $83,500 for utility expenses and bulk purchases, $74,325 for municipal court, $64,050 for salaries and wages and other expenses for the municipal clerk, $50,000 for capital improvements, $48,050 for legal services, $35,500 for financial administration and $29,235 for tax collection.
   Other smaller appropriations include $18,572.20 in deferred charges, $14,800 for tax assessment, $11,500 for an annual audit, $10,985 for the Planning Board, $3,845 for code enforcement and administration and $2,500 for aid to the library among other smaller expenses.
   The borough anticipates $578,200 in water utility expenses, and $861,000 in sewer utility expenses, both of which would be covered mainly by rents.
   The capital budget of the borough has a capital improvement project list with five projects amounting to an estimated $5.6 million. The estimated costs in this budget include $3 million for sewer utility improvements, $1.75 million for road and sidewalk improvements, $450,000 for water utility improvements, $400,000 in parking lot acquisitions and improvements and $11,457 for municipal building improvements.
   A total of $2.49 million for these capital improvements has been raised in prior years. Another $616,700 would be funded this year, leaving $2.47 million to be funded in future years.
   The borough also has a County/Municipal Open Space, Recreation, Farmland and Historic Preservation Trust Fund with revenues amounting to $317,024.04, which funds the development, maintenance and acquisition of lands for recreation and conservation.