Council raises taxes by .30 mills for 2020

NORRISTOWN >> The Norristown Municipal Council voted 6-1 Tuesday to approve a $34.4 million general budget that calls for raising the millage rate from 14.7 mills to 15 mills.

This was a reduction from the preliminary budget approved last month that would have increase the millage rate to 15.7 mills. Next year a homeowner with a house assessed at the $66,000 average will pay an additional $19.80 to the municipality.

Norman Butts, finance director, said that by refinancing its debt the municipality can reduce its operating costs so that it would only need a .30 mill increase, rather an a full 1 mill rise. And, while the operating budget is flat for 2020, the tax increase will help to replenish the fund balance, which Council had previously tapped when faced with budget gaps, Crandall Jones, the municipal manager, explained.

A higher fund balance will garner more favorable ratings from the credit rating services, said Jones.

Outgoing Councilwoman Oliva Brady voted against the budget ordinance. Later, when asked why, she said, “Because I felt more could be done to avoid raising taxes.”

Council President Sonya Sanders said that some council members felt pressure from constituents about raising taxes but those constituents “don’t have

Council President Sonya Sanders presents outgoing Councilwoman Olivia Brady with a plaque and thanks her for her service. Brady served on Council from 2000 to 2005 and from 2013 through 2019.

the knowledge” that council members do about the municipal budget and its credit rating.

Council is “tasked with making hard decisions,” she said. And the members know “the financial damage that was done by us not raising taxes.”

Butts said small tax increases are likely to be needed over the next several years.

Councilman Hakim Jones mentioned finding creative ways to “capture” some of the higher salaries of people who work in Norristown but then leave at night.

“We have to find ways to bring new revenue to this community,” said Jones.

Council also discussed the $30.1 million capital improvement plan for 2020 through 2024. The council plans to borrow $13 million to renovate borough hall. Other items include new equipment for the fire and police departments and for playgrounds.

Councilman Derrick Perry asked about the spending from the $10 million 2017 bond, saying playgrounds are a high priority. Some $2.7 million that is left from that bond that will roll over into the 202024 capital improvements plan, Butts said.

“It seems like we’ve got this building done, processed and ready to go before we do anything for the community…,” said Perry. “The kids in Norristown deserve better. I would like to see us push for our parks to get done, not over a span of years.”

Brady said that she would like to see transparency with the list of projects and have the list be put on the municipal website so residents know how tax money is being spent. Crandall Jones said that it will be.

There will also be meetings with the community for input into the capital improvement plan, he said.

In other business, Council voted to approve an alternative law firm for times when the municipality’s solicitor, Kilkenny Law, has a conflict of interest. That firm is Royer Cooper Cohen Braunfeld, a Philadelphia firm, which will be paid $435 an hour.