The Herald, Sharon, Pa.

Local News

December 24, 2013

2014 budget reflects higher Earned Income Tax of 2 pct.

FARRELL — The only opponent last week to raising Farrell’s Earned Income Tax stood his ground Monday. Councilman Eugene Pacsi’s voted against the tax increase. The rest of council voted for the tax ordinance and set the tax at 2 percent.  

An additional tax of 0.2 of 1 percent on income earned by city residents and on net profits of businesses conducted by residents was approved on its second reading by all council members but Pacsi.

At the last meeting, Pacsi said the increase from the current 1.8 percent would attack the working people of Farrell.

After the decision to raise the Earned Income Tax, council then adopted the 2014 general fund budget of $3 million. The budget was amended with the increased tax, amounting to about $100,000 in additional revenue and expenditures.

Council also authorized a tax anticipation loan in an amount not to exceed $500,000 from the city’s revolving loan fund.

The rest of the city’s spending plan took final shape at the Dec. 16 meeting when council gave final approval to the real estate tax rate of 24.67 mills, the same as this year. A mill is $1 for every $1,000 of a home’s assessed value; assessments in Mercer County are the 1970 market value. In Farrell, a home assessed at $20,000 would carry a real estate tax bill of $493.

At last week’s meeting, council approved the schedule of salaries and wages for city employees. Council approved the sewer fund budget which keeps rates unchanged.

Lawmakers adopted the 2014 Economic Development/Revolving Loan Fund Budget as well as capital improvements budgets for city equipment and the sewage system.   

Council will reorganize and set meetings for 2014 at 7 p.m. Jan. 6.

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