Breaking News
Local News

Borough unveils account of uncollected taxes

More than $100K owed to borough

By Brian Carson 6 min read

LEWISTOWN -- The Lewistown Borough Council, in its recent meeting last Wednesday, unanimously agreed to post a comprehensive 36-page delinquent tax listing on its official website, lewistownborough.com.

This pivotal decision unveils a detailed account of unpaid taxes amounting to a staggering $130,901.41, marking a proactive approach to addressing the financial responsibilities of its residents and local businesses. The document, a reflection of taxes owed through September 2023, breaks down the outstanding amounts into several categories.

In the face of these financial challenges and the Council's reluctance to raise property taxes, Lewistown Borough Council Manager Kim Zimmerman offers a candid insight into the Council's fiscal strategy.

"Every year, it's a battle collecting money owed the Borough, from taxes to utilities. And every year there is an ongoing discussion of the possibility of raising taxes because of the funds needed to operate the Borough, from streets maintenance, to the WWTP, to parks and recreation, to general expenses and healthcare costs," Zimmerman said. "The Council has not raised property taxes for over a decade, and since 2011, inflation (COLA) has risen over 34%. Yet, the Council has found numerous ways to improve services through "thinking outside the box" to do more with less. And the current Council is of the same opinion still, and that is not raising property taxes.

"However, the Council had voted on and approved earlier this year a 1.5 mill tax increase in the fire tax. This will bring the total to 2.617 mills beginning in January 2024. Keep in mind the maximum allowed is 3 mills, and they have not reached that point with a lot of municipalities in the state matching or exceeding that millage rate. This is to help the Lewistown Fire Department with the purchase of a new $1.6M ladder truck to support the Borough and surrounding municipalities. These 2.617 mills equate to roughly $260,000 when the taxes are paid."

The bulk of the arrears come from Municipal Taxes, with an alarming $114,635.39 yet to be collected. This is followed by Fire Tax delinquencies amounting to $9,172.54. The list includes smaller yet significant amounts, such as $6,084.79 for the Light Tax and $961.01 for the Borough EMS Tax.

The total sum of these overdue payments presents a substantial financial challenge for the Borough, underscoring the need for swift and effective measures.

"One of the Borough Manager's responsibilities is addressed in the Borough Code: "Ensure that all accounts receivable due the Borough are promptly paid...secure payment to the Borough of all money owed," Zimmerman said. "Taxes are one of the main revenue sources for the financial stability of the Borough. Currently, over 1.2 mill of taxes is still owed to the Borough. What does it equate to, as an example? The pool could be funded for two summers, and we wouldn't have to ask for donations."

"We could replace vehicles in our aging fleet with police and street vehicles having over 100,000 miles on them," he continued. "We could hire more Code officers to assist in enforcing the numerous code violations and delinquent properties within the Borough. If you look at the tax delinquency listing, you will notice the number of landlords and property managers delinquent on tax payments."

The Council's decision to make this information public is not merely an administrative step; it's a powerful message about the Borough's commitment to financial transparency. By publishing the delinquent tax list, the Council encourages residents and business owners to fulfill their civic duties, contributing to the community's overall well-being and development.

Moreover, the Borough Council's transparency initiative doesn't stop here. While the current focus is on tax delinquencies, there is an ongoing effort to ascertain the total amount owed to the Borough in utilities.

Preliminary estimates suggest that this figure, combined with the revealed tax delinquencies, could exceed $200,000. In collaboration with AccuFund, their software partner, the Council is working hard to pinpoint the exact amount. This endeavor reflects the Council's broader commitment to addressing all facets of the Borough's financial health.

"I think the residents need to know how well the Council is managing the taxpayer's money given to them for operations and maintenance of the Borough, yet imagine what they could do if everyone paid their taxes on time?" Zimmerman said.

In other news from the meeting, the Council:

* Approved the consent agenda with the stipulation the Kiwanis Christmas Parade pay their fees, the paperwork is complete, and PennDOT approves.

* The Council is still discussing dissolving the current Streets Committee and the Parking Authority and forming a Streets-Parking Board in 2024.

* The Borough is interviewing a candidate for the Deputy Director of Public Works this week.

* The November 21 Council Special Meeting is postponed.

* The Council is still reviewing the options for the WWTP's sludge removal to an approved landfill.

* Approved an agreement with CGI Banners. CGI is still receiving applications for banners to reflect a loved family military member on the poles in town. The application process is on the Borough's website.

* Street sweeper operations are during daylight hours as needed and/or until the weather dictates otherwise. Moving vehicles is not enforced at this time. Nighttime operations will begin on the first Sunday of April 2024.

* Approved the Police Department to apply for a grant to start a K9 section.

* Approved moving to a new healthcare provider to save money and provide better options for the employees.

* Approved two Resolutions: one for a $600K grant for the rehabilitation of the Heritage Fire Station and one for $600K for the GIS/GPS Mapping of the Borough's Stormwater System. This second grant will assist in the DEP Consent Order. The grants must be submitted within the next two weeks.

* Approved adding a sign only for an address on Chestnut Street for a temporary handicapped space.

* Approved hiring a legal firm to represent the Borough in analyzing the 1982 Intermunicipal Agreement of the Borough's WWTP collection system. The estimated cost is $150 per hour.

* Approved the no-signing of an agreement with the Red Cross in providing our Community Center to them during an emergency. This is based on the issues with the facility, the requirements of the Borough, and the Borough may also need it during an emergency.

* The Council voted to hire a candidate for the open Clerk/Secretary position. The candidate accepted the offer.

* Approved the promotion of an individual in the WWTP to become the Superintendent when the current one retires next month. This becomes effective on December 9.

* Approved the hiring of an employee for the Deputy Superintendent position. This becomes effective on December 9.

* Approved the nomination of Katelyn Rauch for the County Planning Advisory Committee.

* The Council held off on approving the new WWTP Sludge Removal Contract based on additional options discussed.

* Approved the funding of FAME for $45K for CY 2024.

* Approved the Fourth Quarterly funding allocations for the fire department and FAME.

* Approved two resolutions for appointees to the Police Advisory Board.

Starting at /week.