Sellersville projects 9 percent tax hike

Sellersville Borough residents can expect to see an increase when they receive their 2013 tax bills.

The borough’s proposed budget includes a 9.38 percent tax increase, whLFh ERURuJh RIfiFLDOV VDLd LV QHFessary primarily due to a drop in real estate taxes following the demoliWLRQ RI 8.6. GDuJH.

The proposed 2013 budget sets the millage rate at 17.5 mills, up from 16 mills in 2012. A mill equates to $1 in taxes per $1,000 in assessed property value. For a residence assessed at the borough average of $21,000, the tax bill would come to $367.50, up $31.50 from the current year.

While taxes would go up under the proposed budget, sewer and trash collection fees are predicted to stay the same, according to Borough Manager David Rivet.

On the revenue side of the budget, the borough is predicting approximately $2.463 million in general fund revenue, which is slightly more than the current year, according to Rivet.

Rivet said most taxes, including the earned income tax, have stayed

pretty steady, but the property tax is where the borough has seen a major drop.

“:H’YH EHHQ flDW IRU WKH most part, but one of our biggest problems with the real estate taxes is we’ve had a drop in our assessment with the demolition of the U.S. dauge. We’ve not had the revenue from the real estate taxes,” he said, noting assessments are also down across the borough. “That’s one of the driving forces why we’re increasing our millage rate just because if we stood still, we’d be in a negative position on that.”

U.S. dauge, a leading manufacturer of pressure and temperature measurement products, was a major employer in Sellersville and had several buildings in the borough dating back to 1904. Several of the build- ings were demolished in late 2010.

On the expenditure side, the general fund budget proposes approximately $2.381 million in expenses, according to Rivet.

Proposed expenditures include $40,000 for road work on the lower end of Farmers Lane, replacement of a utility truck with a plow and purchase of a salt machine, according to Rivet.

The borough’s fee to the Perkasie Borough Police Department, which it contracts with for police coverage, is anticipated to increase by $15,000 in 2013, while there will be a $13,000 increase in the borough’s garbage contract, according to Rivet. The budget also includes a 3 percent raise for borough staff.

In the capital fund, the budget includes funding for major work on Washing- ton Avenue between West Church and Noble streets, according to Rivet. The project calls for replacing the sewer, reconstructing the road and installing sidewalks.

The general fund projections anticipate approximately $82,000 more in revenue than expenditures, with any leftover funds going into the borough’s fund balance.

Rivet said he would like to have more than $82,000 in case of unexpected circumstances, such as hurricanes and extreme weather events, which have been occurring more and more frequently.

“There’s not a lot of breathing room right there,” he said. “I would characterize it as a tight budget.”

Sellersville Borough Council is set to vote on adopting the budget at its Dec. 10 meeting.