McCandless has unveiled a preliminary budget that holds the line on property taxes by cutting spending to make up for an expected drop in revenue because of the coronavirus pandemic.

The proposed $16.3 million general fund budget for 2021 anticipates even less revenue than was anticipated in May, when this year’s more than $17.4 million spending plan was cut by $1 million to make up for anticipated revenue losses because of the pandemic.

The 2020 budget was about $1.4 million lower than 2019 because of an expected reduction in state grants.

While revenue from the property tax is expected to increase next year to $3.335 million — about $110,000 more than this year — town officials are expecting the money it receives from the earned income and the business privilege taxes to dip.

The earned income tax is the 1% level residents pay on their salaries. The revenue is split between the town and the North Allegheny School District.

The business privilege tax assesses businesses $1 for every $1,000 of gross receipts.

Town officials also have been informed that the state likely will reduce funding for road and highway projects as well as the contribution it makes to the pension fund covering municipal employees.

 “The economic impact of the pandemic has greatly impacted this budget and created a situation where some very hard decisions had to be made to present a responsible, balanced budget,” said town Manager Robert Grimm in the narrative accompanying next year’s budget, which was presented at a Nov. 23 public hearing.

“Given those hard decisions, if we find ourselves with higher-than-expected revenues during 2021, we can consider additions through a budget amendment,” Grimm said.

To address the expected reduction in revenue, the town plans to leave vacant one police officer and one public works position that opened due to retirements.

Vehicles in the town’s fleet also won’t be replaced next year to save money.

Other cost-saving measures being proposed include leasing excavation equipment that can be used by town employees instead of hiring a contractor and scaling back road paving projects.

By leaving the property tax rate at 1.236 mills in 2021, McCandless residents will continue to pay a little less than $1.24 for every $1,000 of assessed property value, or $248 a year for a home valued at $200,000 to fund municipal operations and services.

Town Council will review the budget hearing at its Dec. 14 meeting. A vote to approve the spending plan is scheduled for Dec. 21 during a virtual meeting.

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