Murrysville makes adjustments to budget, tax deadlines in anticipation of covid-19 impact
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Murrysville officials are proposing some adjustments to the year’s budget and eliminating late-payment penalties for real-estate taxes, in light of anticipated impacts from the covid-19 pandemic.
“We figure as we go into May, June and July, we’re going to start seeing the effects of unemployment, and that will be revenue we’re never going to recoup,” finance director Diane Heming said.
Up until April 30, municipal residents can pay real estate taxes at a 2% discount. After that, it can be paid at face value, which is typically followed by a penalty phase for those who wait until late in the year.
That penalty phase will be eliminated.
“About 60% to 70% of real estate taxes come in during the discount period,” Heming said. “Eliminating the penalty isn’t going to hurt us at all. We have maybe $20,000 come in during the penalty phase. Normally, by the time June comes around, we have 95% of our taxes in. I don’t think that will happen now.”
In terms of revising the budget, Heming recommended cutting capital expenditures first.
“We didn’t want to jeopardize the services to the community but we did need to find some cost savings,” she said.
As a result, 2020 capital expenditures are proposed to be eliminated, outside of funds budgeted for road work.
“That frees up almost 1.5 mills of taxes, which will then be brought back into the general fund. We’ll use that to make up the difference we’ll see this year in earned income tax and real estate taxes, as well as the Local Services Tax,” Heming said.
In addition to bringing roughly $500,000 back through the elimination of capital projects, Heming said staff was also able to reduce spending across all departments — without affecting essential services — by a total of about $800,000.
“The roads will still be paved, the parks will be mowed, the police will still be functioning,” Heming said. “But capital purchases like vehicles and projects like the (Murrysville Community Park) amphitheater will be on hold.”
Council President Dayne Dice was encouraged by the numbers.
“What I’m taking from this is that we’re in pretty good shape,” Dice said. “We’ll have to hold off on capital projects and improvements, but our head is above water.”
Heming said staff felt it was better to address the budget sooner than later.
“As the year progresses, we’ll see if we can add some of things back in,” she said.
Council voted unanimously to advertise the budgetary changes, as well as to adjust the tax payment, face value, and penalty deadlines. Council’s next meeting is set for 7 p.m., May 20. It will be livestreamed on the Zoom platform and broadcast on Comcast local access Channel 19.