The Herald, Sharon, Pa.

Local News

November 15, 2008

Did Sharon council's vote to raise taxes count? Home rule rules sow uncertainty

By Courtney Anderson

SHARON — Did Sharon council tentatively pass a 10 percent tax hike for 2009 Thursday night?

No one seems to be sure.

According to the home rule charter that took effect this year, any increase in taxes must be approved by a supermajority of council which is four members.

A vote Thursday on an ordinance setting a 4-mill real estate tax increase resulted in 3 members for it and two against.

No one at the meeting announced whether the measure passed or failed after that vote. The Herald reported that it passed.

“I’m surprised nobody mentioned it,” said council member Frank Connelly, who voted against the hike along with Bob Messina.

Council President Victor Heutsche Friday morning said he thought the vote meant council would have to have a special meeting in order to get two readings of the tax ordinance done before council’s Dec. 28 deadline to pass a final budget.

He also said he was unsure if that meant the preliminary budget passed or not because the tax increase is part of the budget.

Later in the day, Lucas said he spoke to city Solicitor William J. Madden, who said that the supermajority vote is only needed for the final adoption of the budget. The Herald was unable to contact Madden on Friday.

Connelly Friday said that the way he read the charter council needed two votes, both with a supermajority, to pass a tax hike.

“I assumed last night when we didn’t get the four votes … that we’d have to change (the ordinance) and vote again,” he said.

Another Sharon lawyer who was involved in drafting the charter and is part of the team working on the transition from the old form of government to the new reads the charter differently.

William McConnell Jr. said he didn’t think two votes on an ordinance is necessary under the charter. The way he interprets the law, a preliminary budget does not need to officially be passed by a council vote, he said.

“Maybe we’re OK then,” Heutsche said Friday afternoon after hearing McConnell’s take on the issue.

“I’m a little confused there,” Connelly said, after hearing the different takes on the law.

The charter states that an ordinance must be introduced by being placed on the agenda and then published on the city Web site and in the newspaper when required along with a date of a public hearing. After a public hearing, council may adopt or amend the ordinance.

It doesn’t mention anything about first or second readings, McConnell noted.

The city is continuing to follow practices required under the old system, McConnell said.

The switch to the new government changes a lot of things in the city.

“We’re muddling through it,” Heutsche said of the changeover.

The charter made changes to the ordinance procedure and the council election cycle, eliminates fringe benefits for council and makes updates to the city Web site a requirement.

It allows council to raise earned income taxes beyond the state cap if they reduce real estate taxes by a corresponding amount. It eliminates the job of the elected mayor and treasurer and replaces them with a hired financial officer and city manager, who needs to be hired before Lucas’ term is up in Jan. 2010.

Lucas proposed a $7.65 million budget for 2009 with a tax rate of 43.5 mills. Lucas also projected the city could have an $840,000 fund balance at the end of this year.

Connelly Friday said he voted “no” on the budget because he had a lot of questions about it and didn’t see why a tax increase was needed if the city may have an extra $840,000 lying around.

“At this time I think everyone on council is opposed to it,” Heutsche said. “Nobody wants a four mill tax increase.”

“One way or another before (taxes) go up, it has to have four votes,” Connelly said.

Budget hearings are set for 4:30 p.m. Nov. 26 and Dec. 8 at the city building.



The city’s entire budget proposal is available online at: www.cityofsharon.net

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