Avon Tax Rate Hike Held to 4.9 Cents
By JOANNE L. PAPAIANNI
The Avon Board of Commissioners agreed to defer school tax in the amount of $160,000 to avoid a 16.5 cent increase in the 2006 municipal tax rate.
With the deferment, commissioners were able to hold the increase in the municipal tax rate to 4.9 cents per $100 of assessed valuation.
The total amount of the budget, which was introduced at Monday night’s meeting, is $4,105,876.96, with $2,719,000 to be raised in property taxes.
Commissioner Robert Mahon explained that the deferment represents “an accounting procedure” to alleviate a tax increase problem.
By law municipalities are allowed to defer up to 50 percent of the tax levy. With the increase approved Monday night, the total amount of unpaid school tax deferred will be $855,501.
Mahon said even with the increase they are still not approaching the 50 percent mark.
The commissioner also said that when they realized the tax impact of increasing taxes 16.5 cents the board met with the borough auditor to discuss the matter.
“We put together a tax package that allows us to reduce the impact,” said Mahon.”
Responding to questions from resident Marie Kenny, Mahon further explained that the deferment can be carried indefinitely.
“The only time it becomes an issue, is if the school ceases to operate, we would have that incurred debt.”
Elaborating, Mahon said, “We wanted to address a tax increase we figured to be unacceptable. We met with the auditor to address how to cut costs. Surplus is not what it used to be. We had to become a little more creative.”
Borough Administrator Tim Gallagher said that for a homeowner with a house assessed at $300,000, the yearly increase would be about $150.
Mahon attributed recent reductions in state aid and grant money, along with scheduled road projects in the borough, as reasons for the increase. He cited, in particular, Lincoln Avenue.
“Lincoln is dangerous. You can lose control of your car with those potholes.”
Mahon said repaving the streets in town is a priority but funding the projects will require careful spending.
“Our capital budget has grown, we should be careful,” he warned, “this year and next year we have to run a very tight budget.”
The public hearing on the budget is scheduled for April 24 at 7 p.m.
On a positive financial note the board transferred $65,775 in unused funds in the water/sewer account into that account’s surplus.
Explained Gallagher, “It will become a revenue item in the water/sewer account.”
The board also authorized the department of public works to apply for a Municipal Recycling Tonnage Grant. The board stated that recent amounts available have been reduced from around $2,000 to $500. Commissioners said the borough no longer gets money back from the state on aluminum. Only paper recycling nets a return.
During the public portion of the meeting, Linda Henderson, as chair of the Geese Peace Management Program, reported that the group will begin its egg oiling project in April. She asked residents not to disturb the geese as they begin building their nests, but to alert the group as to the location of the nests.
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