State College Borough Council approves budget with tax increase

Borough Council approved the 2016 budget Monday with a short list of amendments partially inspired by public input.

The balanced budget includes revenues and expenditures of about $25.2 million, Borough Manager Tom Fountaine said. A 2 mill real estate tax increase will raise an additional $909,208.

This raises the borough millage rate to 16.4. The increase on a typical home with a market value of $300,000 will be about $10 a month with the homestead exclusion, Fountaine said, and $14 without the exclusion.

During a public hearing on the budget on Dec. 7, members of the community voiced their concern over the budget’s call to reduce the police force by three officers. Residents urged the council to retain the full complement of officers fearing an increase in response time, among other concerns.

Police Chief Tom King said during the hearing that dropping to 60 from 63 officers would see minimal impact on top priority calls with a difference of maybe 15 seconds. Response to non-emergency calls would be slower, however.

The 2016 budget adopted by council includes the following amendments:

▪ The addition of one police officer position resulting in an increase in the police department appropriation of $81,012.

▪ Modification of the noise ordinance fine to $750 for the first offense and $1,000 for each offense thereafter resulting in no budget change.

▪ Modification of the open container ordinance fine to $250 for the first offense, $500 for the second offense and $1,000 for each offense thereafter resulting in no budget change.

▪ Modification of the public urination and defecation ordinance fine to $750 for the first offense and $1,000 for each offense thereafter resulting in no budget change.

▪ Provide for an internal inter-fund loan to smooth the purchase cost of the on-street meters over a two-year period covering 2016 to 2017, resulting in a reduction in the general fund parking appropriation of $96,000.

A total appropriation of about $2 million is included in the budget to fund the borough’s share of regional program support, borough documents said, including the Council of Governments, Schlow Centre Region Library and Centre Area Transportation Authority.

Council President Jim Rosenberger proposed an amendment on the floor to reduce the millage rate increase by 0.5 mills, saying recent federal action has pushed the so-called Cadillac Tax from 2018 to 2020.

“This makes some additional time available to us to restructure our benefit program,” Rosenberger said.

A component of the Affordable Care Act, the Cadillac Tax is a 40 percent nondeductible excise tax on employer-sponsored health coverage that provides high-cost benefits.

The amendment was not well received by fellow council members. Councilman Peter Morris called the amendment a “bad idea,” saying with the 2 mill increase, the borough had a “clean, balanced budget.”

Councilwoman Theresa Lafer said a last-minute motion could drastically change the budget and disregard all the work done by staff and residents.

The amendment was voted down with Rosenberger as the sole supporter.

This story was originally published December 21, 2015 at 10:21 PM with the headline "State College Borough Council approves budget with tax increase."