Carnegie taxpayers will see a "token" drop in the property tax rate next year, and the borough's elected officials will take a self-imposed 10 percent cut in pay.
Council on Monday adopted a $4.47 million general fund budget for 2009 with a new tax rate of 7.2 mills, a decrease of 0.2 mills. Elected officials also voted to give themselves a 10 percent cut in pay, bringing each council member's salary to $1,620 in 2009 and the mayor's to $2,160.
Council President Bob Kollar said officials are aware the tax rate decrease "is only a token in the reduction of taxes." But, he said, the pay reduction was made "in order to show our need to cut everything wherever possible."
The change in elected officials' salaries will be the first one since 1974, according to Manager Stephen Vincenti.
Mr. Kollar said he was pleased the borough could reduce the millage rate despite a tight budget.
Councilman Mike Sarsfield said that having a lean fiscal plan "will make us more conscious of where our dollars go."
The lowered tax rate was approved unanimously, but not all officials endorsed it enthusiastically at first. Some expressed misgivings during council's public workshop session, held an hour before the regular voting meeting.
"We're setting ourselves up to eliminate services," said Councilman Fred Carini.
"I'm just afraid if we do 7.2 [mills], then something will come around and we have to raise [millage] and we look like screwballs," worried Councilwoman Susan Demko.
Others were adamant that reducing the millage was the right thing to do, especially in the current economy. The difference in revenue between the two millage levies is about $53,000. Each mill generates $266,523.
"I want to give the citizens something," Councilwoman Vera Freshwater said.
"Every year, we should set the millage at what we need to operate this borough," Mr. Kollar said, adding that retaining the 7.4-mill rate was like "putting $53,000 worth of fluff money in the budget."
He added that Carnegie is in good shape with capital improvement money because it chose to finance the recently completed public works building at a low interest rate rather than pay the entire amount up front on a building will be a borough asset for years.
Tax bills in the borough have climbed in recent years. Councilwoman Dorothy Kelly noted that taxes were raised 48 percent for 2003 and another 28 percent for 2007.
Carnegie's 2009 sewer fund budget will be $2.2 million and its liquid fuels budget will be $166,060.
