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Lock Haven looks at shrinking tax base

LOCK HAVEN — The city stands to lose about $125,000 in real estate tax revenue this year.

Mayor William E. Baney III pointed to two major properties that won’t be paying taxes in 2018.

The proposed sale of Lock Haven Hospital could remove it from the tax rolls, the mayor said during Monday’s city council meeting. The hospital is being sold to UPMC Susquehanna, a non-profit institution that may not be required to pay taxes.

He also said the former Piper Blue Building has been purchased by the county and no longer is taxable.

Should the hospital sale go through as planned, the county will review UPMC and see if it fits the criteria to be tax-exempt, according to Richard Morris, a former real estate professional who often attends council meetings.

On the upside, the mayor said, the city likely will save money on staffing because both City Manager Richard W. Marcinkevage and City Planner Leonora M. Hannagan are expected to retire this year.

One figure that has been mentioned is $150,000, he said, adding that such a high amount may not be attained.

He credited Councilman Douglas T. Byerly for bringing a group of council members together to look at staffing and city administrative positions, with those two retirements in mind.

“It’s a good time for change,” Baney said about the pending retirements. “When they happen, we want to be ready for 2018.”

Other council members involved in talking about staff changes are Ted Forbes and Richard L. Conklin, who is an alternate on the group.

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