Plum

Plum holds the line on taxes with 2021 budget, park upgrades included

Michael DiVittorio
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Michael DiVittorio | Tribune-Review

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Plum homeowners will pay the same real estate tax rate in 2021 they have been for the fourth straight year.

Plum Council unanimously voted Dec. 17 to pass a $13.7 million budget and maintain the tax rate at 4.78 mills.

The vote was conducted at a virtual meeting broadcast on public access channels and the borough’s YouTube channel due to increased covid restrictions and cases.

Borough Manager Michael Thomas said he does not anticipate any problems with Plum being able to stay on budget.

“I have no reason to believe that anything will need to be adjusted,” Thomas said.

Anticipated income includes $4.41 million in real estate tax, $4.2 million in earned income and local services tax, $1.4 million in intergovernmental funds such as state pension fund aid, and $786,000 in licenses and permits, including cable TV franchise fees.

Spending includes $1.1 million for capital projects, $935,000 for flood mitigation, about $900,000 for street improvements, $506,000 for EMS, $681,000 for debt service and $95,600 for the library.

“Our budget is solid,” said Mike Doyle, councilman and finance committee chair. “We run surpluses every year, and we’re doing more with less. I’m really proud of the position we’re in and we’ve been in. The ship’s going in the right direction. Departments are getting some additional things that they requested and things are moving forward. Services are still up and moving and we’re full-steam ahead.”

Purchases include three police vehicles and an excavator for the public works department. Playground improvements for Renton and Logans Ferry parks that were announced earlier this year were moved to 2021.

About $300,000 will be transferred from the borough’s estimated $4.5 million reserve fund to assist in capital improvements.

Council also approved taking out a $1.5 million tax anticipation note (TAN), which is a loan some municipalities and school districts use to maintain cash flow until real estate taxes are collected. Plum will borrow from Standard Bank at a 1.1% interest rate.

“We normally take out a $3 million TAN,” Doyle said. “We’ve never taken it all out, and we’ve paid it back early. We’re not expecting to need (it all), but it’s always nice to have that safety net for us just in case.”

Mayor Harry Schlegel announced the police department will be getting a “community service vehicle,” body cameras and a drone.

The community service vehicle is a golf cart to be used at community events. The drone will be used to assist in searching for missing people as well as suspects at large.

Council President Dave Odom commended the mayor and the police for their efforts in upgrading the department’s technology.

“It’s nice to see that transition,” Odom said. “Congratulations to those folks for keeping up with technology and serving the community.”

Council raised taxes by one mill in 2016 to bolster its EMS department and for road improvements.

The ambulance company was able to purchase new equipment the following year as a result of its increased revenue.

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