Just in time for Christmas – Council votes to raise taxes
Just in time for Christmas, Columbia Borough Council presented taxpayers with a gift that will keep on taking: a tax hike. At Thursday’s special council meeting, council voted unanimously to pass the 2019 budget and to increase millage from 6.6 to 8 mills – an increase of 21.2%. Before the vote, several citizens spoke out against the increase, but council remained unmoved and presented a united front during the proceedings.
Former Borough Manager Norm Meiskey, a borough resident, spoke out against the increase, as he has done several times at recent meetings. He once again cited the borough’s revolving loan fund as a culprit driving the need for an increase. He told council the problem is not with revenue but with spending and urged members not to approve the increase.
“I don’t know why council is so hell-bent on eroding the standard of living in Columbia Borough with this unjust, immoral, and in my opinion, illegal use of an ordinance and throwing over two mills of tax in the way of $800,000 to be loaned out to certain individuals,” Meiskey said.
Noting the borough’s $18.8 million in fund balances, Meiskey said “Ladies and gentlemen, you don’t have a revenue problem – you have a spending problem, and you need to fix it and not put on the taxpayers to allow the erosion of their standard of living because you can’t fix the problem. You need to fix the problem. You have a spending problem. You need to realize it.” He told council members that if they think there’s not a problem with spending, he would be glad to meet with them to show them. He told them they really need to rethink the increase before proceeding.
Former councilman Frank Doutrich, a resident of Ironville Pike, questioned where the money came from for the $1.5 million revolving loan fund. Council President Kelly Murphy explained that it was from the borough’s general fund. Borough Manager Rebecca Denlinger said that only $300,000 from the fund has been advanced so far. “We only advance the funds to our third-party loan administrator as the loans come through the pipeline and get ready to go to closing, so at this time, only 300,000 has been advanced,” Denlinger said. “The remaining 1.2 is still sitting in fund balance essentially.” Denlinger added that an additional $800,000 has been budgeted to capitalize the loan fund but might not be used if loans are not applied for.
So far, only one loan has been fully processed: $250,000 for Cimarron Investments LLC. A second loan, for Eberly Myers LLC’s Locust Street apartment building project, was processed but did not go to closing.
Denlinger also mentioned the borough’s CHIHL program, the Columbia Housing Improvement and Homeownership loan program which is administered through LHOP, the Lancaster Housing Opportunity Partnership. One part of the program is for down payment assistance, and one is for home improvement projects, according to Denlinger. Murphy said the borough’s share for the fund is $150,000 and added that only one application was ever made for the fund but was not followed through on.
Doutrich asked, “Why does the council think they have to be in the banking business? Why would you want to loan our money out? Put it in the infrastructure, into the streets.” Murphy replied that in regard to CHIHL, the program is to help homeowners with assistance in closing costs and to encourage people to fix up their homes at a better interest rate than what banks offer. Doutrich asked what happens if the loan is not paid back, and Denlinger replied that the property would be “liened.”
Doutrich then asked what happens if the people receiving funds from the revolving loan fund don’t pay back the loan. Denlinger replied, “We are typically in a junior position, so we could get paid back depending on what happens with the turnout of the loan, and we might not get paid back. There’s a risk involved, certainly.” Doutrich said, “I just don’t like that we put our citizens at risk.”
Thomas Wilkinson of North Second Street said, “I don’t agree with you guys treating the town like it’s a business.” He said it’s okay if council spends a little bit of money to brighten up the town but he is not favor of big spending. “I would say most townspeople don’t agree with that kind of spending. You’re coming out of our pocketbooks. It’s outrageous,” Wilkinson said. “Let’s cut spending. How about that? Let’s spend less so we don’t need as much of an increase.”
Mayor Leo Lutz then questioned where the $18 million figure came from that Meiskey alluded to. “Can someone speak to this $18 million? I’d like to know what it is, because I can’t find it,” Lutz said. Denlinger said the general obligation bond has $5.8 million left in it to spend. In response, Meiskey got up and placed budget papers on the table in front of Lutz and pointed to them.
After some pontificating by councillors, council voted unanimously to approve Resolution No. 18-23 adopting the 2019 budget, and to approve Ordinance No. 907 increasing the 2019 real estate tax millage rate to 8 mills.
Columbia News, Views & Reviews posted a link to the budget document HERE.
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Council votes unanimously to pass 2019 budget and raise taxes
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Council to vote on 2019 budget and proposed tax hike at public meeting Thursday, December 13, 2018
LEGAL NOTICE
Notice is hereby given that the Borough Council of the Borough of Columbia, at a meeting to be held on December 13, 2018, at 6:00pm in Council Chambers of the Borough Municipal Building located at 308 Locust Street, Columbia, will consider for adoption Resolution No. 18- 23 adopting the budget for the Borough of Columbia for the year 2019 and will consider for adoption Ordinance No. 907 fixing the real estate tax millage rate for 2019 at 8 mills, which is $.80 of tax for each $100 of assessed real estate valuation. This action will result in an increase from the 2018 real estate tax rate. Any person with a disability wishing to attend the meeting may contact the Borough Office at 717-684-2467 for necessary accommodations. Notice is further given that the proposed budget for the year 2019 referenced above is available for public inspection at the Municipal Building, 308 Locust Street, Columbia, Pennsylvania. Business office hours are 8am to 4:30pm Monday through Friday, except holidays
Grinnell Avenue road project to fix water problem is underway
A project to prevent water from leaking onto the road surface from an underground spring is currently underway on Grinnell Avenue. Water from the spring, which is seeping into residents’ basements, is being pumped out via sump pumps and eventually draining onto the roadway.
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Agenda – Columbia School Board Meeting, December 13, 2018
Former borough manager questions justification for tax hike, says loaning taxpayer money to business is wrong
A business loan fund and an increased number of borough personnel are the culprits driving a purported need for a proposed tax hike for 2019, according to former Borough Manager Norm Meiskey. Meiskey, armed with a sheaf of papers at Monday’s borough council meeting, also said the hike of 1.4 mills, or 21.2%, is unnecessary, unjustified, and just plain wrong. (Borough council plans to vote on the proposed increase this coming Thursday at a special borough council meeting.)
Meiskey characterized the borough’s “Columbia Commercial Revolving Loan Program,” which he calls a “slush fund,” as unfair to taxpayers. The program was created by ordinance earlier this year to finance projects undertaken by local businesses by drawing funds mainly from tax revenue. In essence, taxpayers foot the bill to finance local businesses. The ordinance calls for a fund balance of $1.5 million to be made available to local businesses. Meiskey noted that the borough is planning to put $800,000 into the loan fund.
“There’s already 1.5 million in there, and I still am very, very skeptical as to the legality of that ordinance,” Meiskey said of the loan fund. “You don’t help businesses whatsoever by tax increases,” he continued. “You don’t help residents whatsoever by tax increases that are loaned out for certain people, certain businesses, in certain districts in the borough.” Meiskey cited mechanisms already in place to help business: LERTA, redevelopment authorities and KOEZ. “But the taxpayers . . . loaning the money out to certain individuals and certain zones for their private property improvement and their private use and enjoyment is wrong.” Meiskey said he doesn’t know where in the Borough Code it says municipalities can be a loaning Institution.
“You’re taxing the taxpayers of this community to loan out money,” Meiskey continued. “Tax increases in this borough is nothing but detrimental to the taxpayers, the property owners – certainly businesses. That’s the worst thing that can happen to them.”
Meiskey cited an increase in the number of borough employees as another factor behind the tax hike. The 2015 sale of the borough’s wastewater treatment system to LASA should have reduced the overall workload, according to Meiskey, who provided the projected workload reductions: 100% of two clerks, 50% of an accountant, one-third of the finance manager, one-half of the public works director, 100% of the wastewater treatment plant manager. “The plan was to allow attrition to take place” within two-and-a-half years, starting from June 2013, Meiskey said. The plan also included having the accountant and the borough manager handle budgetary matters and the borough manager overseeing the human resource aspects, due to a 25 to 35% reduction in the borough manager’s workload because of the transition.
“Instead, we’ve hired people, and we’ve hired them to a point where you’re looking at tax increases,” Meiskey said. “That’s not helping this borough whatsoever. It’s certainly not going to help the taxpayers. You’ll be taxing senior citizens out of their homes. It’s a very serious matter.” Meiskey noted that the number of clerks and managers has increased.
Meiskey noted that the average benefit package for a full-time employee is 35% of the salary and recommended hiring part-time employees to eliminate the need for the additional benefit expense. He said doing so would help preserve funds previously put together by the borough’s Municipal Authority to afford the borough a financial position “like never before.” The Authority was dissolved by council two years ago.
Columbia Borough Council will hold a meeting on Thursday, December 13, 2018, at 6 p.m. at the Municipal Building, 308 Locust Street to consider adopting the 2019 borough budget and to consider adopting Ordinance No. 907 fixing the real estate tax millage rate for 2019 at 8 mills, which is $.80 of tax for each $100 of assessed real estate valuation, and represents a tax increase of 1.4 mills, or 21.2%.






















