Taranto doubling the labor income tax to compensate for the budget deficit; mile to stay the same
An updated provisional budget for 2023 for Taranto foresees an increase in labor income tax from 0.5% to 1%.
Borough Superintendent Dwight Boddorf blamed the increase on a projected general fund shortfall of $1.2 million.
The overall budget proposed for next year of nearly $17 million assumes that the borough will receive the subsidies it is requesting.
The property tax rate should remain at 5.48 thousandths.
If approved, the owner of a home valued at $100,000 will again pay $584.
Boddorf said the budget shortfall will also be offset by revenue from Red Cat Power, the borough’s power company.
Taranto is one of 35 municipalities in the state that operates its own electrical distribution system. The borough buys electricity on the wholesale market and delivers it at retail to its 2,500 customers.
Through this, the borough subsidizes general fund operations, Boddorf said.
“This reality has allowed the borough to implement several infrastructure and economic development projects that would otherwise be difficult to achieve,” he said.
No rate increase is planned for Red Cat Power customers.
“The budget reflects our commitment to providing a wide range of services effectively and efficiently,” Boddorf said.
“Everything from the maintenance of local roads, storm water systems and utilities to public safety, recreation and other services has been assessed.
The preliminary budget, which the council unanimously adopted, is available for consideration until the council takes a final vote on December 12.
It consists of a general fund of $3.8 million, a water fund of $1.8 million, an electricity fund of $4.2 million and reserves. capital of $6.2 million. There is still $628,000 in the sewer budget.
Among the highlights of Budget 2023 are several infrastructure upgrades.
The work includes a new million-gallon tank at the water plant and the replacement of 30-year-old water treatment equipment.
There are plans to pave First Avenue, repair the fountain at Riverview Memorial Park, and continue with burn demolition projects. The borough will also purchase a new bucket truck for Red Cat Power.
Next year’s spending includes $1.4 million for police, $104,000 for firefighters and $692,000 for public works.