Vandergrift's 2021 budget does not include tax hike, but garbage fees could go up

Vandergrift residents will not see a property tax increase in 2021 but may be asked to pay an extra $1 for garbage fees each month.

Council will vote on the garbage fee increase next month. Balancing no tax increase with some added expenses next year, Borough Secretary Steve DelleDonne said garbage fees may be a way to offset the cost of a new refuse truck and increasing landfill costs.

DelleDonne estimated that charging slightly more in garbage fees — amounting to about $324 a year per household — would give the borough an additional $24,600 in 2021.

The borough’s proposed 2021 budget projects revenue of about $2.2 million and expenses totaling $2.4 million. The borough will make up the difference by carrying over a balance from this year of close to $200,000.

DelleDonne said the 2021 budget is about $81,000 higher than this year’s.

At Monday’s council meeting, DelleDonne said the borough experienced revenue losses because of the covid-19 pandemic, as he predicted in previous meetings. Last year, borough officials had projected 2020’s revenue to be about $54,600 more than it turned out to be.

Estimated year-end figures suggest the borough also has collected less from real estate and property taxes and, with greater unemployment because of the pandemic, less in wage taxes.

According to borough documents, Vandergrift estimates it will collect about $34,000 less in real estate taxes than what was budgeted, and about $24,400 less in earned income tax, Local Services Tax and other taxes.

“People weren’t working; they’re not paying the taxes. And we’re also not getting as much in property taxes,” DelleDonne said.

Still, the borough raised enough revenue to pay for its planned expenses, including a mini street sweeper and salt spreader.

The borough’s expenses in some areas were less than what it had budgeted for at the end of 2019, spending less in areas including utility payments, insurance costs, convention expenses and others. There were several months when the borough didn’t need to pay school crossing guards when buildings were closed, and less money was spent on part-time police patrolman wages, for example.

“We’re actually going to spend about $157,000 less than what we planned,” DelleDonne said.

The 2021 budget plans for some increased expenses next year, including raises for police and other borough employees. DelleDonne said the borough is set to contribute more than $101,000 to the police pension fund next year — about $47,000 more than this year. He said he’s hopeful the state will make up the difference.

Council approved a preliminary budget Monday. It will adopt a final budget in December and vote on the garbage fee increase, too. The budget is available for community members to review at the borough building.