EmailEmail
PrintPrint
Officials scramble to balance budgets with stagnant revenues
Thursday, January 08, 2009

A new year means new budgets for towns in the South Hills. Local officials had to work creatively this year to fill in gaps created by a down economy, stagnant revenues and rising costs for healthcare, solid waste removal and other expenses.

While most of the municipalities -- McKeesport an exception -- reported that they did not have to cut personnel or services, some reported that projects had to be deferred. Such projects included improvements to Mt. Lebanon pool, improvements to Bethel Park intersections and parks, and the expansion of Peterswood Park in Peters.


About the figures

Statistics were obtained from town officials and from municipal profiles found on the Allegheny County Web site. For more information, including millage rates for school district taxes, which were not analyzed in this article, visit www.alleghenycounty.us/treasure.

Median house values and municipal taxes paid in 2008 were derived from community profiles compiled by Allegheny County. Population statistics were based on 2000 census data. Peters Township's statistics, since it is in Washington County, were obtained exclusively through borough officials. Each community structures its budget differently. For more details on community budgets, a phone number and Web site, when available, has been provided.


The City of McKeesport decided to lay off nine employees to balance its budget and will be cutting back in other areas.

Many officials also reported their revenue projections were conservative this year in light of the uncertain economic times.

And, many officials said they would carefully monitor budgets throughout the year to make sure that revenues continue to cover expenditures.

"We're being as frugal and as diligent as we can be," said South Park Manager Karen Fosbaugh. "We recognize we're spending the public's money and we're being very careful with it."

With people's finances so uncertain, officials in many municipalities were hesitant to raise taxes.

Tax increases in future years would be a last resort, said Mt. Lebanon Manager Stephen Feller.

Despite the layoffs in McKeesport, officials refused to raise taxes fearing that residents simply cannot afford to pay more.

However tax increases were seen this year in Baldwin Township, Bethel Park, Munhall and Upper St. Clair.

Two communities actually had tax decreases: Liberty and Mt. Lebanon.

Most of the towns reported that the decline in gas prices in the latter half of 2008 provided welcome relief to tight budgets.

And, many municipalities that negotiated new solid waste removal contracts through the South Hills Area Council of Governments reported the costs for the service were up between 25 and 35 percent, causing a new strain to budgets. Some municipalities pay for this expense through taxes, while others bill residents directly.

A five-year contract negotiated through the South Hills Council of Governments, widely believed to provide services at below current costs, expired at the end of 2008.

Older communities, such as Castle Shannon and Brentwood, cited the lack of opportunity for new development as a challenge to increasing government revenues.

Here is a summary 2009 annual budgets for municipalities in the South Hills.

Baldwin Borough

The borough passed a budget of $10.3 million, with no tax change, keeping the property tax rate at 6.61 mills. One mill generates about $720,000.

No personnel or services were cut. To save money, however, police officers who have retired in the past three years, have not been replaced.

Borough officials say balancing the budget every year is challenging and that this year was no exception. They said they would monitor the ongoing collection of wage taxes in 2009, as this revenue source could decline if the economy negatively affects wages in the area.

A new development of about 200 residential units has brought increased annual revenue to the borough. Also, the borough is in the process of developing a capital improvement plan for use in future years.

In 2008, municipal taxes for the median property value, $83,300, were $551.11

For more on the borough, call the town hall at 412-882-9600 or visit www.baldwinborough.org.

Baldwin Township

The township passed a 2009 budget of $2.73 million, with a tax increase of one mill, bringing the borough's millage to 9.5. Municipal property taxes had not been raised since 2003.

Officials cited rising costs and decreasing revenues, including revenue from the state, as the need for the increase. One mill generates about $84,000.

The township did not cut any personnel or services.

In 2008, municipal taxes for the median property value, $78,400, were $666.40. Officials estimate the average increase in tax bills to be $78.00 each year.

The township's population is 2,447 and is 1.02 square miles.

For more, call 412-341-9597 or visit www.baldwintownship.com.

Bethel Park

The municipality's budget of $17.7 million included a tax increase of .25 mills, bringing the municipality's millage to 2.18. The earned income tax also was raised from .8 to .9 percent, and the local services tax was increased from $10 to $52.

Officials noted increased expenses across the board, including a 30 percent rise in the cost of solid waste removal.

The municipality removed some items from the budget, such as park improvements, and intends to seek grant money for these items. Intersection improvements were also deferred. Bethel Park will acquire 3 new police vehicles rather than 4, as originally planned.

In 2008, municipal taxes for the median property value, $115,400, were $222.72. Borough officials estimate the average increase in tax bills to be about $29 per year. One mill generates about $1.8 million.

Bethel Park has a population of about 33,556 and is 11.92 square miles.

For more information, call 412-831-6800 or visit www.bethelpark.net.

Brentwood

The borough budget is $9.7 million with $6.5 million in the general fund and $435,628 in the capital improvement fund. The budget contains no tax increase, keeping the property tax at 8.5 mills.

No services or personnel were cut. One part-time administrative borough employee was approved as a full-time position in 2009.

In 2008, municipal taxes for the median property value, $72,200, were $613.70.

Brentwood has a population of about 10,466 and is 1.43 square miles.

For more information, call 412-884-1500 or visit www.brentwoodboro.org.

Castle Shannon

The borough adopted a 2009 capital and operating budget with total all-funds budget of $10.3 million and with a general fund of $3.8 million. Millage remains at 7.9. One mill generates about $292,000.

No services or personnel were cut, but because of rising expenses, such as health insurance and solid waste collection, the general fund had a deficit of $322,000. The difference was covered by reducing the end-of-year general fund balance and by transferring funds from the capital budget to the general fund budget.

Council President Regis Zezulewicz has warned the public at council meetings of the likelihood of a tax increase in 2010.

In 2008, municipal taxes for the median property value, $76,600, were $605.14.

Castle Shannon has a population of about 8,556 and is 1.51 square miles.

For more information, call 412-885-9200 or visit borough.castle-shannon.pa.us.

City of Clairton

The City of Clairton passed a 2009 budget of $2.9 million with no tax change, keeping the city's millage at 2.22 mills on buildings and 28 mills on land. One mill for buildings generates about $90,000 and one mill for land generates about $35,000.

No services or personnel were cut.

In 2008, municipal taxes for the median property value, $19,000, were $5.80 for the land and $399 for the land.

Clairton has a population of about 8,491 and is 2.7 square miles.

For more, call 412-233-8113 or visit www.cityofclairton.com.

Dormont

The borough approved a 2009 budget of nearly $7 million, keeping property tax rate at 14 mills. One mill generates about $252,597.

No services were cut, but officials described the budget as lean and hint that the borough may look at cutting expenses next year.

In 2008, municipal taxes for the median property value, $73,900, were $1,034.

Dormont has a population of about 9,305 and is .76 square miles.

For more information, call 412-561-8900 or visit www.boro.dormont.pa.us.

Dravosburg

Council approved a budget with a general fund of $783,760 with no tax change, keeping the tax rate at 5.315 mills. One mill generates about $45,000.

The borough said that every department is running on a tight budget this year. Purchasing was cut to a bare minimum.

In 2008, municipal taxes for the median property value, $48,500, were $257.78.

Dravosburg has a population of about 2,015 and is .99 square miles.

For more information, call 412-466-5200 or visit www.svcog.org/Dravsbg.html.

City of Duquesne

The city approved a budget of $5.3 million with no tax change, keeping property tax at 11.47 mills for building and 19 mills for the land. One mill generates about $80,000.

No workers or services were cut. Officials said they are hoping that gas prices will stay low, to keep the budget strong through the year.

In 2008, municipal taxes for the median property value, $16,600, were $47.60 for the building and $236.55 for the land.

Duquesne has a population of about 7,332 and is 1.88 square miles.

For more, call 412-466-4746.

Elizabeth Borough

The borough has a new budget of $693,550 with no tax change, keeping the tax rate at 8 mills. One mill generates about $39,000.

The borough did not cut any personnel or services, but describes its budget as "bare boned." While declining gas prices gave the borough some relief in its budget, the ongoing volatility of gas prices is a concern, officials said. The borough also cited rising healthcare premiums as a strain on the municipal budget.

In 2008, municipal taxes for the median property value, $51,650, were $413.20.

The borough has a population of about 1,730 and is .52 square miles.

For more information, call 412-384-7771.

Elizabeth Township

The township approved a 2009 budget of $4.6 million and kept taxes at 4.429 mills. One mill generates about $457,000.

The township did not cut any personnel or services, but did have to move funds from capital reserve to the general fund. The borough cited rising costs, such as health insurance, fuel, and road paving as a strain on the budget. Also, the cost of paying for the borough's 27 full-time employees, including pay raises, is rising.

In 2008, municipal taxes for the median property value, $72,700, were $321.99.

The township has a population of about 13,839 and is 22.08 square miles.

For more, call 412-751-2880 or visit www.elizabethtwp.com.

Forward

The budget of $1.06 million included no tax change, keeping the township's property tax rate at 2.95 mills. One mill generates about $25,000.

The township did not cut any personnel or services. Health insurance and public safety remain costly items for the township, officials said.

Officials report that a new police contract was signed, which no longer requires the township to maintain five full-time police officers, and may save public safety expenses as current officers retire.

In 2008, municipal taxes for the median property value, $45,000, were $132.75.

Forward has a population of about 3,771 and is 19.25 square miles.

For more, call 412-384-1761 or www.forwardtownship.com.

Glassport

No one from the borough returned calls for an update on the 2009 budget.

In 2008, municipal taxes for the median property value, $39,600, were about $300.

Glassport has a population of about 4,993 and is 1.63 square miles.

The town hall number is 412-672-7400.

Green Tree

The borough approved a 2009 budget with $6.7 million general fund and a capital fund of $1.1 million. The tax rates were not changed, keeping at 4.35 mills. One mill generates about $450,000.

The borough did not have to cut any personnel or services. Slightly higher revenues in 2008 enabled the budget to offset the increased cost of solid waste removal, officials said.

In 2008, municipal taxes for the median property value, $105,000, were $456.75.

Green Tree has a population of about 4,719 and is 2.02 square miles.

For more information, call 412-921-1110 or visit www.greentreeboro.com.

Homestead

Officials did not return calls seeking information on the 2009 budget.

In 2008, municipal taxes for the median property value, $24,950, were $261.98.

Homestead has a population of about 3,569 and is .6 square miles.

The town hall number is 412-461-1340.

Jefferson Hills

The new budget of $8.5 million kept the borough's property tax rate at 5.63 mills.

No workers or services were cut, but officials described the budget as conservative. To cover the rise in the cost of solid waste removal, the quarterly fee to residents was raised from $25 to $40. This fee has not been raised since about 1990.

In 2008, municipal taxes for the median property value, $81,200, were $457.16.

Jefferson Hills has a population of about 9,666 and is 16.9 square miles.

For more, call 412-655-7735 or visit www.jeffersonhills.boroughs.org.

Liberty

The borough passed a 2009 budget of $871,825 with a tax decrease of .1, bringing the borough's property tax rate to 4.2.

No personnel or services were cut.

In 2008, municipal taxes for the median property value, $58,300, were $253.61.

Liberty has a population of about 2,670 and is 1.46 square miles.

For more, call 412-678-3286.

Lincoln

The borough passed a 2009 budget of 469,400, keeping the tax rate at 6.3 mills.

The borough did not cut any personnel or services, but cut minor expenses, such as pest inspections, to balance the budget.

In 2008, municipal taxes for the median property value, $40,100, were $252.63.

Lincoln has a population of about 1,218 and is 5.02 square miles.

For more, call 412-751-2655.

McKeesport

The city passed a 2009 budget of $20.3 million with no tax change, keeping its tax rate at 4.26 mills for buildings and 16.5 mills for land.

To balance its budget, the city laid off nine employees, including Mayor Jim Brewster's secretary. Also laid off were two administrative employees, three clerical employees and four in public works.

These layoffs, combined with two voluntary retirements, are estimated to create a savings of $500,000. The city estimated it would have a reduction in funds of about the same amount.

Officials have also said that some maintenance, including road maintenance, would be put off.

In 2008, municipal taxes for the median property value, $25,000, were $26.63 for the building and $309.38 for the land.

McKeesport has a population of about 24,040 and is 5.15 square miles.

For more, call 412-675-5044 or visit www.mckeesport.org.

Mt. Lebanon

The municipality adopted a 2009 budget with a general fund of $26 million, with a tax decrease of .08, bringing millage to 4.89. One mill generates about $2.2 million.

Responding to public outcry, the commissioners abandoned plans to cancel popular programs, including a teen center, First Fridays and a park concert series. Funds to restore the programs came from deferring some projects and lowering projections on fuel costs.

Some projects that were deferred include $7 million in financing for improvements to the township pool, golf course and tennis courts. Also deferred was the purchase of a public works truck. Cuts were made in the budgets for sidewalk maintenance, brick street maintenance and employee training.

In 2008, municipal taxes for the median property value, $145,550, were $697.18.

Mt. Lebanon has a population of about 33,017 and is 5.88 square miles.

For more, call 412-343-3400 or visit mtlebanon.org.

Munhall

The borough adopted a 2009 budget of $ 6.8 million with a tax increase of one mill, bringing millage to 10.25. The borough has not raised municipal property taxes for the past ten years. Officials cited rising costs such as health insurance premiums as the need for the increase.

No workers or services were cut, but many line items were reduced by 10 percent. Funds for the annual community day fireworks were reduced from $10,000 to $5,000. Also, a freeze on nonunion salaries for borough supervisors was enacted.

Councilman Dan Lloyd voted against the budget citing concerns that it still contains "fat," including some nonunion employee salaries, which he said were high, and the cost for operating its own 911 dispatch center.

In 2008, municipal taxes for the median property value, $55,600, were $430.90. One mill generates about $272,000.

Munhall has a population of about 12,264 and is 2.36 square miles.

For more, call the town hall at 412-464-7310.

Peters

The township approved a general fund budget of $9.5 million, with no tax change, keeping the township's property tax rate at 12 mills. The entire 2009 budget, including a capital improvement fund, is about $19 million. One mill generates about $304,739.

Officials said balancing this year's budget was especially difficult with the economy in a state of flux. As a result, the budget was designed to be flexible.

For example, the council postponed a decision on whether to issue a bond to finance the expansion of Peterswood Park. Council will wait and evaluate the bond market in May or June to determine whether to proceed with the plans. Likewise, the township postponed a decision until May as to whether to add an additional police officer.

The township has a population of about 17,566 and is 19.5 square miles.

For more, call 724-941-4180 or visit www.peterstownship.com.

Pleasant Hills

The borough adopted a 2009 budget of $ 7.1 million with no tax change, keeping property tax rate at 6.607 mills.

To balance the budget, officials reconsidered optional projects that could be postponed. No specifics wee available.

In 2008, municipal taxes for the median property value, $102,300, were $675.90.

Pleasant Hills has a population of about 8,397 and is 2.5 square miles.

For more, call 412-655-3300 or visit www.pleasanthillspa.com.

Port Vue

The borough adopted a 2009 budget of $1.06 million, keeping the borough's property tax rate at 5.11 mills. One mill generates about $75,000.

Officials said any expenses that were not "absolutely necessary" were cut from the budget, including expenses relating to conferences for borough employees. The asphalt program was also scaled back. The borough plans to review the budget quarterly in 2009.

In 2008, municipal taxes for the median property value, $46,200, were $236.08.

Port Vue has a population of about 4,228 and is 1.14 square miles.

For more, call 412-664-9323.

Scott

According to township manager Denise Fitzgerald, the township passed an unbalanced budget for 2009; revenues are estimated at $7.6 million while expenses are estimated at about $9.7 million.

Commissioners have commented that Ms. Fitzgerald overestimates expenses to keep the budget in the black.

To help to cover the difference, the township will use money from its reserves. Officials have said the budget will be monitored constantly and could be adjusted, if needed.

Commissioner Jean O'Toole voted against the budget, saying that two proposed expenditures to expand township property were ill-timed.

The biggest hit to the budget, officials said, was the increase in solid waste collection costs, which is paid for through property taxes. Other expenses include cost-of-living raises for township employees.

The township did not raise taxes, keeping the township's property tax rate at 5.0 mills. One mill generates about $751,805.

In 2008, municipal taxes for the median property value, $93,200, were $466.00.

Scott has a population of about 17,288 and is 3.74 square miles.

For more, call 412-276-5300.

South Fayette

Attempts to contact officials at South Fayette were unsuccessful.

In 2008, municipal taxes for the median property value, $96,000, were $384.00.

The township has a population of about 12,271 and is 20.95 square miles.

For more, call the town hall at 412-221-8700 or visit www.south-fayette.pa.us.

South Park

The township passed a budget of $6.3 million with no tax change, keeping the township's property tax rate at 3.6 mills. One mill generates about $550,000.

The township did not have to cut any employees, but all department heads were instructed to be frugal. Some projects, including recreation projects, were put on hold. Officials said that the township is taking a wait-and-see approach to other projects, such as its road program, because the cost of asphalt will depend on the price of fuel.

Because of economic uncertainty, officials said that the township took a conservative approach and reduced the anticipated amount of revenues. If incomes decline, for example, the borough said that it expects that it could receive less through the earned income tax.

In 2008, municipal taxes for the median property value, $98,300, were $353.88.

South Park has a population of about 14,340 and is 9.2 square miles.

For more, call 412-831-7000 or visit www.southparktwp@southparktwp.com.

South Versailles

The township passed a 2009 budget of $99,448 with no tax change, keeping property tax at 4.2 mills. One mill generates about $8,000.

The township did not cut any employees or services. Officials commented that this year's budget closely resembles last year's.

In 2008, municipal taxes for the median property value, $23,800, were $99.96.

South Versailles has a population of about 351 and is .85 square miles.

For more, call 412-466-7377.

Upper St. Clair

The new budget of $16.43 million has a tax increase of .80 mills, bringing property tax rate to 3.4 mills. One mill is expected to generate about $1.5 million.

The increase was necessary to pay for debt service created for construction of the Boyce / Mayview Community Recreation Center, which is expected to open in late spring of 2009. The 90,000 square-foot facility will serve as a fitness, aquatic, recreation, and community center.

Also, department heads reduced the 2009 operating budget for the general fund by .09 percent. Looking forward to 2010, officials have concerns about increasing pension costs due to current market conditions.

In 2008, municipal taxes for the median property value, $175,000, were $455.00.

Upper St. Clair has a population of about 20,053 and is 9.95 square miles.

For more, call 412-831-9000 or visit www.twpusc.org. Budget details are posted on the township Web site.

Versailles

According to borough officials, the mayor of Versailles vetoed the budget passed by council Dec. 22. Three council members have requested a special meeting to reconsider the budget, but no meeting has yet been scheduled.

In 2008, municipal taxes for the median property value, $40,600, were $243.60.

Versailles has a population of about 1,724 and is .49 square miles.

For more, call 412-751-3922.

West Elizabeth

The borough passed a 2009 budget of $134,969 with no tax change, keeping tax rate at 6.0 mills.

The borough did not cut any personnel or services.

In 2008, municipal taxes for the median property value, $26,100, were $130.50.

West Elizabeth has a population of about 565 and is .25 square miles.

For more, call the town hall at 412-384-8200.

West Homestead

The borough passed a budget of $1.85 million with no tax change, keeping the borough's property tax rate at 9.31 mills.

In 2008, municipal taxes for the median property value, $69,500, were $647.05. There are about 1,000 taxpayers in the borough.

West Homestead has a population of about 2,197 and is .82 square miles.

For more,call 412-461-1844 or visit www.westhomesteadpa.com.

West Mifflin

The borough passed a 2009 budget of $12.9 million with no tax change, keeping the borough's property tax rate at 7.27 mills.

The borough did not cut any personnel or services. Officials describe the budget as "very conservative."

In 2008, municipal taxes for the median property value ($64,400) were $403.79.

West Mifflin has a population of about 22,464 and is 14.35 square miles.

For more, call 412-466-8170 or visit www.westmifflinborough.com.

Whitaker

The borough passed a 2009 budget of $640,925 with no tax change, keeping real estate tax at 9.43 mills. One mill generates about $26,000.

The borough did not cut any personnel or services. Officials describe the budget as tight.

In 2008, municipal taxes for the median property value ($43,000) were $362.49.

Whitaker has a population of about 1,338 and is .26 square miles.

For more, call 412-462-8940 or visit www.svcog.org/whitaker.html.

White Oak

Officials at White Oak did not return calls.

In 2008, municipal taxes for the median property value ($72,250) were $300.56.

White Oak has a population of 8,437 and is 6.55 square miles.

For more, call 412-672-9727 or visit www.woboro.com.

Whitehall

The borough passed a budget of about $8 million with no tax change, keeping the borough's property tax rate at 5.5 mills. One mill generates a little over $600,000.

The borough did not cut any personnel or services, but officials describe the budget as tight. Officials said the greatest rise in expenses was in solid waste removal, which increased about 25 percent. Health insurance premiums also constitute a large portion of the budget.

In 2008, municipal taxes for the median property value ($101,150) were $556.33.

Whitehall has a population of about 14,444 and is 3.19 square miles.

For more, call 412-884-0505 or visit www.whitehallboro.org.

Freelance writer Erin Gibson Allen can be reached in care of suburbanliving@post-gazette.com.
First published on January 8, 2009 at 12:00 am
Featured Homes
Featured Rentals