Harrisville proposes 5-mill tax increase, local services tax
HARRISVILLE — Council proposed a 5-mill property tax increase and a $1 per week local services tax to keep up with rising costs in light of a budget deficit at a meeting on Monday, Nov. 6.
If approved in December, the increase would raise property taxes in 2024 from 11.5 mills to 16.5 mills. One mill is equal to $1 in property tax, which is levied per $1,000 of a property's assessed value.
This would equate to about $50 more per year for the average homeowner, according to councilman and chair of the budget committee, Will McCoy.
He noted that taxes have not been raised in Harrisville “for many years,” and expressed concerns about the 2023 budget deficit.
McCoy said 16.5 mills is on the “low end of the spectrum” compared to other boroughs in Butler County.
Moving forward, McCoy said, a deficit would not be sustainable and could leave the borough with no room in its budget for anything other than paying bills.
McCoy attributed the need to raise taxes to inflation, costs of maintenance items and recent raises received by the police force and maintenance staff.
“Maintenance got a raise; police got a raise,” McCoy said. “We need to make up for that.”
Some residents asked borough council for more transparency around the subject, and for more information on how the increases would benefit the public.
Council discussed putting more information about the proposed property tax increase in the next newsletter that will be sent to residents on Friday, Nov. 10.
Vice president Dave Evans also encouraged residents to attend the next workshop meeting on Monday, Nov. 20 to voice any concerns and learn more about the proposed tax increase, as well as other agenda items.
Borough council also proposed a local services tax (LST) be implemented. The tax would apply to people who work in Harrisville at a cost of $1 per week. The funds would contribute to emergency services, road paving and local projects.
Evans said the tax would help alleviate some of the burden from the budget deficit.
Council will vote on the property tax increase and LST tax on Monday, Dec. 4.
— Council approved the conditional hiring of William R. Kiel as a police officer at a starting rate of $19 an hour effective immediately. Harrisville police chief Jeff Hollidge said Kiel, who lives outside of Oil City, will work one to two days a week, with an emphasis on weekends. Hollidge said there weren’t many applicants for the position.
“We’re lucky to have this applicant,” Hollidge said.
— Council motioned to purchase a backflow valve for a sewer plant pump at 614 E. Mercer St. from LB Water at a price of $3,735, using funds from the borough’s sewer fund.
— Council approved turning on Christmas lights in the borough before Thanksgiving on Wednesday, Nov. 22.