Half-mill tax hike likely in Summit Hill

It looks like Summit Hill residents are going to see a tax increase in 2019.

At a budget meeting on Tuesday, borough council said it likely will increase taxes by a half mill. In addition, it anticipates about $28,000 in spending cuts.

The tentative adoption of the budget is scheduled during a meeting of the council at 7 p.m. Monday.

If approved, this will be the second tax increase in two years.

Last year, the borough raised taxes by 1 mill. No tax hikes occurred in the four years before that.

“We got big numbers to crunch,” council President Michael Kokinda said. “We either have to raise taxes or make big cuts.”

The main reason the borough is short on funds is because many residents aren’t paying their real estate taxes.

Council member David Wargo said the delinquency rate is about 10 percent of the taxes owed.

Kira Steber, borough secretary-treasurer, said the 2018 budget had called for $740,000 to be received in real estate taxes, but through Oct. 31 the borough has netted only $638,244.18.

The budget proposal that was discussed calls for no contributions in 2019 to three capital improvement accounts: police department, recreation and borough equipment.

Kokinda said, “Then next year if we find a way to put it back, we can do that.”

Council member Debra Ranck said when property owners become delinquent in taxes, it takes a couple of years before execution of the legal process can occur.

“I really think we have to think about changing the way we do business,” she said.

With the tax increase and the proposed cuts in spending, the budget indicates a balance in 2019 of $680.44.

Wargo gave a suggestion of how the borough could get some additional revenue in the future.

“I really think we should look at investing money on building some kind of impound location for the police,” he said.

He said, “It’s not going to solve our budget problem but every revenue stream we can find helps.”

Presently when vehicles are impounded by the police such as when criminal activity or an accident occurs, the vehicles are towed to privately owned facilities, usually in Lansford.

He said owners pay a fee when the vehicles are impounded.

“I think we should look into it,” council member Karen Ruzicka said.

Wargo also urged the borough to look into collecting an entertainment tax on cabins located at Mauch Chunk Lake Park.

He said, “The campground is in Summit Hill. The police who respond are Summit Hill police.”