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Budget to raise taxes 14.5%

HOLLIDAYSBURG — Borough Council is set for a final budget adoption tonight that includes a 14.5 percent real estate tax increase in 2020.

The tax increase would allow the council to add a ninth police officer to the borough’s police department at $100,000 for salary and benefits, borough officials said in November.

The addition of another police officer was proposed because of an increasing number of police responses to the county jail and school district.

Tonight’s voting meeting will also be the last meeting before a new cadre of council members take office in January to replace three members. Council members whose terms are set to expire in January are Jeff Ketner, Patrick Plummer and Mark Shawley.

Shawley was one of two members who voted against the increase when a preliminary vote was taken in November. Councilman Brady Leahey also voted against the increase.

A vote on the tax hike is on the agenda for the council’s 7 p.m. meeting today at the borough municipal building, 401 Blair Street.

The total general fund budget proposed for 2020 is $3.1 million with a $63,305 deficit.

In November, Borough Manager James Gehret said without the millage increase, the budget deficit would be $207,688, with the police officer position included. The millage hike decreased that by roughly $144,000, he said.

He said the remaining deficit will either be made up by not spending money that was budgeted or using the borough’s fund balance, which stands at about $3 million.

With an increase to real estate tax millage of 0.45 mills, the borough’s total real estate tax levy, would be 3.55 mills in 2020. Last year, millage was 3.10 mills.

For a home assessed at $100,000, the tax increase of 0.45 mills would be a $45 real estate tax increase on top of last year’s taxes.

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