Oakmont property owners could see a 40% tax hike, the first increase in 11 years, under the proposed 2025 budget.
The budget proposal calls for a real estate tax increase of 1.5 mills, taking the rate from 3.73 mills to 5.23 mills. Officials say the increase is needed to cover a more than $930,000 shortfall in the spending plan.
It would mean a home at the borough’s median assessed value of about $153,000 would see real estate taxes increase by about $230.
The tax increase would balance the budget of almost $12.9 million in expenditures with about $13 million in revenue, according to information presented at council’s Nov. 25 budget meeting.
Borough Manager Scot Fodi said the majority of revenue in the borough’s general fund budget comes from real estate, earned income and local service taxes. Real estate tax collections are expected to bring in more than $3 million.
Other areas of the borough’s budget, for things such as sewage and garbage services, rely most heavily on fees to generate operating revenue.
Major costs in the proposed budget include about $2.1 million for police, more than $900,000 for public works, almost $413,000 for administration and $248,000 for the fire department.
The borough has more than $380,000 in a reserve fund, which is for unforeseen costs to the borough.
“If the roof blows off the (borough) building tomorrow, this is the money we have to fix it,” Fodi said.
He said the reserve fund falling too low could jeopardize the borough’s opportunities for loans should they need one for a future project.
The administration budget includes a $60,000 project to shift the borough’s handicap entry ramp to help fix drainage issues that became a “slipping hazard” for pedestrians.
Included in the fire fund is the recently passed stipend for volunteers. Beginning in the new year, active members will receive a stipend of $65 per month. There currently are more than 30 volunteer members.
The borough’s proposed road budget calls for a little over $1.1 million in expenditures, including a $400,000 Allegheny River Boulevard improvement project.
The borough also plans to spend about $1.4 million for its parks. Fodi said the majority of revenue for parks comes from more than $1 million in grants, including a $600,000 grant from the state to make Riverside Park accessible in accordance with the Americans with Disabilities Act.
He said council members will look at other road and park projects to see which can be pushed to later years and which take priority.
“There are specific projects that are identified for 2025 that have been deferred too many times,” Fodi said.
The proposed budget is available for viewing at the borough’s municipal building. It was unclear when the budget would be posted to the borough’s website. The budget can be amended until council members vote to finalize it at the end of December.
