New Kensington to hold line on property taxes despite rising costs

Despite rising costs, New Kensington is expecting to hold the line on property taxes next year.

City Council preliminary approved a $9.2 million budget for 2023 that keeps the city’s property tax rate unchanged at 32.03 mills.

The city would spend almost 9% more than its $8.5 million budget for this year.

Councilman Todd Mentecki said the city is seeing increased costs for energy, fuel and labor, in addition to inflation.

Mentecki complimented city Treasurer Jordan Elias, Controller John Zavadak and Clerk Dennis Scarpiniti for balancing the budget without a tax increase.

“Everybody here did a great job balancing the budget,” Mentecki said.

Included in the budget is nearly $181,000 for a new recycling truck. Council approved the purchase contingent on receiving a state grant that would pay 90% of the cost, which is about $163,000. That would leave the city to pay about $18,000.

The city’s recycling truck is about 23 years old, Scarpiniti said.

On the revenue side, Scarpiniti said the city has seen an increase in mercantile taxes from new businesses opening in the city.

The budget does not take into account the impact of some new developments, such as the recently opened Zen Leaf medical marijuana dispensary, the under-construction Aldi grocery store and the planned Popeyes Louisiana Kitchen, all on Tarentum Bridge Road. Scarpiniti said the city will get a better feel for them next year.

Council approved taking out the customary $1.2 million tax anticipation loan.

The loan is used to pay for city operations until property tax revenue begins coming in.

Council will take a final vote on the 2023 budget and tax rate when it meets at 7 p.m. Dec. 5 at city hall.