Bradford City officials are still looking at a property tax increase in 2020.
On Tuesday, city council passed on first reading a 2020 millage ordinance that calls for a total millage rate of 21.96 mills — or 2.196 cents on each $100. This is 3.94 mills more than total 2019 tax rate of 18.02 mills.
As City Administrator Teri Cannon said, this “reflects the first reading of the 2020 budget.”
The millage ordinance must be passed a second time before becoming law. It is common for city officials to present a lower tax rate at the second reading once they’ve had more time to consider the budget.
The total rate is broken down as follows: 14.49 mills for general purposes, 0.15 mills to support the Bradford Area Public Library, 3.42 mills for the payment of interest on bonded indebtedness and for sinking loan fund requirements for the payment of loans and temporary debts, and 3.90 mills for recreation purposes.
Cannon said taxes have not been increased since December 2016, when they went up half a mill.
Since that time, “assessments have decreased drastically,” and costs have risen, she said. At the same time, city officials have to maintain a city “where people can and will continue to work and live here.”
Cannon said presenting a budget at this time without a tax rate that covers costs would not be responsible. However, she indicated that she, along with the department heads, will continue to look for ways to lower the projected increase.
This tax rate “is not acceptable to us. It is not where we want to be,” she said.
Mayor Tom Riel agreed the budget is “always a work in progress” until they pass the final budget at the end of December. “I have expectations (the tax increase) will go down,” though he added that he can’t promise it will disappear completely.
Council also passed on first reading an ordinance on 2020 salaries and wages.
They authorized the execution of a 2020 tax anticipation loan of $850,000, too. Payment of the principal and interest of 1.98% is set for Dec. 31, 2020.
Additionally, council authorized RBC Capital Markets/Knox McLaughlin to consider options for refinancing the 2012 and 2013 bonds and to look at the potential to borrow new funds.
They passed one resolution related to the sale of the former Werzalit facility to KT East LLC, an entity related to Swanson Fabrication: the approval of a $4,388 payment to MacDonald Illig Attorneys for services related to the sale. The payment is to be recovered through the refinancing of the Werzalit loans with KT East, the resolution indicated.
Swanson Fabrication announced its plan during an October council meeting to expand its operation to the Werzalit property on Holley Avenue.
In other news, council approved the combining of two properties on Elm Street owned by Dan Frontino. Once combined, the parcel will consist of 3,610.86 square feet of land. The McKean County and City of Bradford planning commissions have already given their approval.
Council also authorized the filing of a McKean County Act 13 application seeking $20,625 to assist with the cost of the preliminary engineering and design for the replacement of the Elm Street bridge.
Council granted approval for a $5,000 Main Street Facade Improvement Grant to Marty Cummins, owner of Cummins Country Charm at 24 Main St., for signage, lighting, re-painting the building’s face and replacing first- and second-floor windows. The total cost of the project is $14,778.84.
The next regular council meeting will be at a different time and date than usual: 5:30 p.m. Dec. 27.
