Mohnton Borough Council approves 1.35-mill tax increase for 2022
Officials say it is needed to begin to restore the general fund to healthy levels after previous council's spending spree
Following an emergency review of the previously approved 2022 budget, Mohnton Borough Council voted unanimously to approve an amended budget that includes a tax increase of 1.35 mills.
The 2022 budget was first approved in December by a council that has since been almost entirely voted out or resigned along with several borough employees.
Resigning officials included two council members, the secretary and treasurer, the engineer, code enforcement firm and two members of the civil service board.
Only one member of last year’s borough council remains, Brian Simmons.
A state police investigation into vandalism and tampering with computer systems at borough hall followed the resignations. That investigation found no crime was committed at borough hall.
After a special meeting Jan. 25 on the state of Mohnton’s finances, the new council partnered with the Center for Excellence in Local Government to conduct a county-funded review and reworking of the 2022 budget.
The results of that review were presented Wednesday, Feb. 9, by Paul Janssen, director of the Center for Excellence in Local Government.
Janssen said the review found that despite budgeting for a $144,000 surplus last year, the borough spent about $500,000 more than the originally approved 2021 budget of $1.6 million, depleting its general fund to $272,000 and placing Mohnton in danger of financial overextension.
He said the same pattern of over budgeting appeared in the 2022 budget, which was already approved with a deficit of $58,000 and would leave the general fund — which municipalities rely on to manage unforeseen expenses — dangerously low.
“If the proposed tax increase is not implemented, the borough will face a cash flow problem in the first quarter of 2023, or council will be forced to dramatically cut services to restore the fund balance to at least a minimum level,” Janssen said.
Janssen said the reason for last year’s mismatch between budgeted and actual spending came from an overestimation of tax revenue, a failure to collect on delinquent trash bills, and a rash of unbudgeted expenses.
He said those expenses included leasing a firetruck for $242,0000, buying a new street sweeper for $240,000 and spending 500% of the approved budget for park repairs.
Janssen also noted that for years, the borough had overbudgeted the salary
paid to Jennifer Roy, former borough secretary and treasurer, by $5,000 to $7,000 annually, but in 2021 Roy was paid $18,000 above budget.
“They didn’t actually understand what their fund balance was, or they didn’t care,” Janssen said of the former council.
Following the presentation, an audience of about 50 residents in attendance voiced no opposition to the tax increase, which was approved unanimously.
“I don’t think we have any choice,” Councilman Daniel McDevitt said prior to the vote, “if we decide not to do it, we pay three times as much next year.”
Mohnton’s real estate taxes will increase from 5.7 to 7.05 mills, raising the tax bill of a home valued at $100,000 from $570 to $705.
Janssen said the tax increase should give the borough a $63,000 surplus, but that it would likely take years before the general fund is restored to full health.
“It’s going to be a daunting task for borough council to stabilize finances and will probably require two very lean years of operations,” Janssen said.
Council President Jonathan Davis Sr. said that residents should also expect an increase in trash collection bills, due to rising collection costs. Mohnton’s current trash bill is $310 annually.
Also at the meeting, council accepted the resignation of Doris Concordia from the Civil Service Commission. Officials said Concordia was retiring after 20 years of service.
Council also appointed Dominic Parisi, Jane Hoffman and Donna Sarzynski to six-year terms as alternates on the Civil Service Commission.
Officials said the appointments would allow the borough to resume hiring police.
In addition, the borough approved having the commission look into hiring one full-time police officer and six part-time officers.
The Mohnton police department currently does not offer 24/7 service and relies on state police when borough officers are not on duty.