2023 Penn Hills budget doesn’t increase taxes, boosts police funding
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Penn Hills property owners will not have to pay more in real estate taxes as part of next year’s municipal budget.
Council unanimously approved its 2023 spending plan Monday.
It maintains the millage rate at 6.44 mills. The municipality has not raised taxes since 2019.
Projected revenues and expenses were are about $70.76 million.
Income includes about $10.43 million in real estate taxes, $15.5 million in local enabling taxes such as earned income and mercantile taxes, $5.25 million in state grants, $984,000 in business licenses and permits, $760,000 in state shared revenues and entitlements, $326,600 for public safety charges for services, $265,000 for an adult services grant $72,000 in street openings, $82,500 in fines and forfeits and $77,000 in rents and royalties.
Spending includes about $10.72 million for police including administrative, patrol and investigative salaries, equipment, other supplies and crossing guards; $4.427 million for the planning department including salaries, benefits and supplies; $2.37 million for EMS, $892,000 for code enforcement, $640,000 for fire protection, $606,500 for administration including salaries, benefits and office supplies; $560,000 for finance including salaries, benefits and office supplies; $438,000 for building maintenance, $393,000 for information management and $70,000 for tax collection.
Manager Scott Andrejchak said the budget includes increases in collections of real estate and earned income taxes compared to previous years, as well as increased spending due to rising costs.
“We all know that there’s a lot of inflationary pressures, especially in areas of fuel prices,” he said in a budget presentation. “That’s something we had to factor in as we made our spending plan.”
He also noted health care costs increased by about 9% and the municipality is working on getting concessions from employees regarding how to pay for it.
The budget is available for review under the finance section of the municipality’s website, and at the municipal building, 102 Duff Road.
A budget presentation is also available via Penn Hills’ YouTube page.
Mayor Pauline Calabrese commended everyone who worked on the budget, specifically finance director Sheree Strayer.
“When you take a look at the budget, it’s fantastic,” Calabrese said. “We have no tax increase, no cuts in services. We put more funding into the police. We’ve added more police officers. We’ve done a slew of street paving and infrastructure (upgrades).”
The police department added four new officers in 2022, which is expected to reduce overtime pay by at least 10%, according to municipal documents.
Penn Hills also enters next year with an estimated $10 million fund balance, or financial reserve, largely due to $18 million it received in American Rescue Plan Act funds.
Manager Scott Andrejchak said municipal leaders used those funds wisely.
“I think the mayor and the council were good stewards of the public money when it came to the stimulus,” Andrejchak said. “We set out to do the things we wanted to do, and we’ve improved the overall trajectory of the finances.”
Uses included $10 million in reimbursements for first responders spending and related projects.
Penn Hills officials authorized spending about $1.5 million in federal stimulus funds on new police vehicles and ambulances several months ago.
“We just didn’t get money and spend it frivolously,” the mayor said. “We positioned ourselves so we would have matching grants, continuing grants. It’s not just a matter of having the funding. It’s a matter of how to prudently spend it and where to place it.”
Next year will be the last year to use the remaining relief funds.
Recreation plans for next year include a splash pad, dog park renovations, skate park fencing and paving and a new Penn Hills Park playground.
The municipality also plans to do some paving along South Avenue, Glenhurst Drive, North Jocelyn Drive and Sara Lane.
In other news
Council approved a new one-year deal with Hoffman Kennels for animal control services.
The kennel has been Penn Hills’ dog catcher for several years.
Andrejchak said there was no increase in its fees.
Council also approved a one-year deal with Gateway Engineers for continued engineering services.