Taxes stay same, but sewer rates going up in South Side

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South Williamsport residents will see no increase in their borough taxes next year, according to a proposed 2009 budget.

However, they face a significant sewer rate increase that will go toward rehabilitating a decrepit sewer system.

Borough council Monday approved a first reading of the budget, which set the borough's real estate tax rate at 3.97 mills. The rate includes .32 mills for fire protection.

One mill equals $1 for every $1,000 in assessed property value.

The proposed budget also sets sewer rates at $120 per quarter, up from $90 in 2008.

The rate increase will be used to pay off a $5.8 million loan the borough is receiving from the U.S. Department of Agriculture, plus fund a maintenance program that will allow the borough to begin replacing portions of the system not covered by the loan.

The total general fund budget includes just more than $2 million in revenue and expenses, and includes about $609,000 for public safety, up from $576,000 in 2008, and $485,000, up from $383,000 in 2008.

The budget also sets health care coverage for borough employees at about $245,000, an increase of 17 percent over 2008.

Additional taxes include:

1 percent earned income tax.

$5 per capita tax.

0.5 percent realty transfer tax.

Emergency services tax of $52.

Councilman Robert O. Friese II cast the lone dissenting vote on the budget, saying he objected to the sewer rate increase.

"I'm all for the budget, but I'm dead set against the sewer increase," Friese said.

Councilman Benjamin E. Landon said he was "tempted" to vote against it, but understood that the increase had to be made because the state Department of Environmental Protection has ordered the borough to make the sewer system improvements.

"I think it is outrageous that the state is forcing us to do this at a time of economic hardship," he said.

Landon and fellow council members Jeffrey J. Neyhart, who is council president, and Gregory E. Berfield, Dan Cupp, J. Bernard Shelb and Anthony Massare voted in favor of the budget.

Council vice president Jeffrey C. Tompkins and Wendy Finnerty were not present at the meeting.

Shelb, chairman of the borough's finance committee, challenged borough department heads to cut expenses "5 or 6 percent under budget."

"Just because the (money is there) doesn't mean you have to spend it," Shelb said.

In other business, council agreed to award a contract to HRI Inc. of Williamsport to perform the sewer system rehabilitation construction work.

The company submitted a low bid of $4.7 million for the project, said project engineer Matt Peleschak, of architectural and engineering firm Larson Design Group.

The $4.7 million does not include design work, inspection fees, interest on the loan and administration costs, he said.

According to Peleschak, six companies submitted bids, with the highest coming in at $7.2 million.

Peleschak said HRI has worked on a wide range of projects in the area and has a reputation for being dependable.

Neyhart read a statement regarding the borough's role in the recently held Mummers Parade.

According to Neyhart, the borough has unfairly come under fire because the parade was held in pouring rain.

The borough does not organize the parade, but supports it with a financial donation, provides office staff to permit vendors and offers other assistance, such as a police escort, Neyhart said.

However, because the parade route, Southern Avenue, is a state road, the state permits the parade and approves the date it will be held, not the borough, he said.

The Mummers' Association did not apply for a rain date on the permit, thus could not have rescheduled the parade, he said.

The borough "is getting hammered pretty hard" for something that it took no part in organizing, he said.