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NANTICOKE — City council members, with the exception of Steve Duda who was absent, voted Nov. 18 to approve the preliminary 2016 budget, which includes a 21.5 percent increase in property taxes.

The budget totals of $5,537,429 with a proposed millage rate of 5.93. A mill is $1 for every $1,000 in assessed property value.

With the increase, a home valued at $75,000 will see an increase of $78.55 or less than an additional $6.55 per month and a $125,000 home will incur an increase of $130.91 or an addition of less than $10.91 per month.

Approximately half of the increase will be used to fund major road repair projects which will begin in spring 2016. It will enable the city to obtain a $3 million Pennsylvania Infrastructure Loan at a guaranteed fixed interest rate of less than 2 percent for 10 years, council president William Brown said.

“We worked very hard to shave from the budget,” City Manager Andrew Gegaris said.

Gegaris pointed out the city is facing approximate $500,000 increase in expenses, such as increases in workers’ compensation, payroll taxes, utilities, general legal services, pension plans and a federally-mandated health insurance premium increase, among others. The city’s revenues have decreased, Gegaris continued, citing the $1.227 million decline in assessed property values.

The city’s Accounting Director Jennifer Polito added the sewer tax increase will cover the costs of necessary repairs, such as the three major sewer line breaks the city has faced within the past one-and-a-half years.

The total projected revenue increase is 6.9 percent, within the 8 percent increase limit as per the home rule charter agreement.

In other news, the Family Readiness Group of the Pennsylvania National Guard, 409 E. Main St., will host an all-you-can-eat sausage and pancake breakfast from 8 a.m. to noon Nov. 22. Tickets are $5 in advance or $7 at the door. For more information, call 570-735-6890 or 570-854-5186.

By Susan Bettinger

For Times Leader

What’s next?

The next meeting of the Nanticoke City Council will be held at 7 p.m. Dec. 2.

Reach the Times Leader newsroom at 570-829-7242.