Sewickley property owners could see a lower millage rate in 2013, but that's primarily because the Allegheny County property reassessments increased property values in the spring countywide.
Sewickley Council plans to formerly adopt a final $4.9 million budget tonight at 7:30 p.m. during the regular meeting. If approved, the budget would keep service levels while reducing taxes from 7.3 mills to 6.5 mills.
At 6.5 mills, a property owner would pay $650 in real estate taxes for each $100,000 of assessed property value.
Under the law, Borough Manager Kevin Flannery said the allowable amount of real estate taxes the borough can collect in 2013 cannot exceed 5 percent of the 2012 assessed real estate valuation.
But without finalized figures from the county, and assessment challenges ongoing, borough officials had to predict the future based on figures from 2002, when the last reassessment took place in Allegheny County. Sewickley set up an escrow account in 2002 indicating that $1.49 million was needed in taxes for the budget. When the borough collected in excess of $74,063, the funds were redistributed back to residents.
"I believe that people are going to get refunds, and that there are going to be some substantial refunds," Flannery said. "How do you pay the refunds?"
With court-approval, the borough plans to start an escrow account for taxes.
"If there is money left over, it automatically reduces the millage for 2014," Flannery said.
Flannery said he doesn't believe any community will have a 95 percent certainty on assessed values until the spring.
Culture and Recreation
- Sewer fund total: $2,031,013
- Road construction and maintenance fund total: $863,000