Carnegie voters may be asked on the November ballot whether the borough should dedicate a specified number of tax mills to support the Carnegie Volunteer Fire Department.
The tax amount hasn't been decided, but the range under consideration is 0.8 mills to 3 mills. As of December, each mill generated $266,523 in revenue to the borough. This year's budget is $4.47 million, with a real estate tax rate of 7.2 mills.
Although officials met in private after their workshop meeting Monday to discuss the proposed referendum, opinions conflict on how many mills, if any, should be dedicated to fire department operations.
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"It has to be done. Let's see if the people of Carnegie are smart enough to do this," Councilman Fred Carini said Tuesday. "If they don't support [the fire department], they'll go and then we'll pay more to get someone else."
Councilwoman Dorothy Kelly had a different view.
"The people cannot support any more taxes on either the local, state or federal level."
She believes that municipalities, like taxpayers, should look for ways to save money in these difficult economic times.
"It's so easy to raise taxes," Mrs. Kelly said.
Council President Mike Sarsfield took a middle-of-the-road position. He hopes to find a way to keep the fire department afloat while buying the borough time to consider a possible consolidation with a neighboring fire department.
However, he stressed that nothing further will occur without input from the volunteers.
"None of this is a reality until we bring it to the attention of the Carnegie Volunteer Fire Department," he said.
The fire department has wanted to be included in the borough budget for years. In June 2006, Fire Chief John Kandracs asked officials to consider dedicating 2 mills -- the limit that could be imposed without a referendum -- to the department.
He cited losses from Hurricane Ivan in September 2004, lackluster fundraising results, dwindling grants and increasing federal regulations as reasons for the request.
At the time, 2 mills of taxes equaled $498,000.
In January 2008, officials had to reopen the budget because of an emergency $200,000 request from the strapped fire department, which was behind on mortgage and truck payments.
To generate revenue, officials enacted a $10 tax for employed residents, a $10 per capita tax on residents ages 18 to 65 who are not below the poverty level, and a $40 landlord-tenant charge.
In return, council insisted that the fire department submit its books to an independent auditor and that it separate its volunteer firefighters from the paid emergency medical services that operates in the same building on West Main Street.
Some residents are opposed to a dedicated millage because nearly half of the town is composed of renters, so they would not have to pay the tax unless their landlords raise their rents to cover it. Renters cannot deduct the tax, like homeowners can.
A motion to adopt an ordinance concerning the referendum will be on council's agenda Monday night.
The fire department began as a volunteer unit in 1972 and added the EMS service two years later.