Hollidaysburg Borough approves small tax increase

Council also agrees to raise staff salaries

HOLLIDAYSBURG -- At a reconvened meeting, Hollidaysburg Borough Council approved on Thursday a small tax increase, which is intended to protect tax revenue from a potential loss following a countywide property tax reassessment.

The real estate tax rate was raised from 2.897 mills -- set a week earlier -- to 3.1 mills, Borough Manager James Gehret said.

The average Hollidaysburg property is valued at $148,000, meaning the increase will cost taxpayers an annual $30 extra on average, Gehret said last month.

The increase was meant to increase tax revenue by 7 percent, a number most council members felt was necessary because of a recent tax reassessment. An increase of up to 10 percent is allowed.

Last week, council approved a final $2,867,000 budget for 2017, with expenditures predicted at $2,847,982.

Despite a projected $19,018 surplus, 2017 could see less revenue than originally predicted due to property owners appealing new values given under the reassessment, the first since 1958. The project intended to bring assessed values closer to market values.

The borough received a new, certified tax base from county officials totalling $380,834,800 -- a drastic increase from 2016's $31,764,476 base.

Properties totaling more than $25 million are still up for appeals, and it's estimated that 30 percent of those appeals will see values lowered. Last week, Gehret said that means the borough could lose $45,000 to $55,000.

Municipalities are supposed to remain revenue neutral in a reassessment year to prevent a windfall. In 2016, real estate taxes produced $1,103,816.

To achieve neutrality the tax rate was set at 2.897 mills. But taking the appeals into consideration, Gehret suggested that rate be raised to 3.1 mills to account for any loss.

On Thursday, council approved the increase, with only Councilman Joseph Dodson dissenting. He previously spoke against an increase, calling any anticipated revenue loss "speculation."

Council also voted unanimously to approve a 2 percent borough staff salary increase.

Mirror Staff Writer Sean Sauro is at 946-7535.