Monroeville Council reduced an anticipated 2-mill tax hike to 1.5 mills in passing its 2025 municipal budget on Tuesday.
Council voted 5-2 to raise property taxes from the current 4 mills to 5.5 mills. Councilmen Bill Krut and Mike Adams voted no.
The $41.3 million budget does not change the amounts for deed transfer, mercantile, business privilege or local service taxes.
In his budget message to council, Monroeville Manager Alex Graziani characterized the original 2-mill tax hike as “a strategic move to fund necessary capital improvements.”
However, even the 1.5-mill change is Monroeville’s first real estate tax hike in a decade.
For a home assessed at the median property value of $111,600, it would mean an additional $167 in property taxes.
The budget anticipates a bond process that could lead to $50 million in bond financing and the ability to complete a proposed $41 million public works complex along with improvements to the municipal building, library and senior center.
The budget also incorporates the new municipal ownership of the Monroeville Convention Center, purchased along with its equipment and furnishings this fall for just under $5.5 million.
Council voted to lease the space to Visit Monroeville, which was formed in 1987 and promotes both the center and the municipality. Graziani said the gross profits from the convention center will be split each year, with 25% going into a long-term fund and 75% serving as payment on Visit Monroeville’s lease.
Residents who spoke during public comment were pleased to learn that, based on current Allegheny County property records, the former Doubletree Hotel next to the convention center will remain a taxable property.
Two Trees Global, a for-profit corporation, bought the hotel in November. A portion of the building will be used by Monroeville’s Grace Life Church.
Former council member Lois Drumheller said the municipality should take a closer look at how many nonprofits occupy nontaxable properties in Monroeville.
“It’s too late for this year’s budget, but I think you should heavily consider payments in lieu of taxes for next year,” Drumheller said.
Payments in lieu of taxes are voluntary payments made by nonprofits to offset the loss of tax revenue.
