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KINGSTON – Locally raised revenue should be locally controlled, council said Monday.
Council unanimously rejected two state initiatives – one that would affect Kingston’s control over collection of the local wage tax and another that would establish a uniform statewide pension system.
“SB 1063 and HB 1550 would establish one system of tax collection at the county level to promote tax reform and establish a more efficient tax system. Kingston has a wage tax rate of 1.95 percent, and it is too significant a revenue source to lose the control of collections,” Administrator Paul Keating said. The tax raises $3.8 million annually.
He also said it was to the advantage of the borough to be able to call tax collector Don Wilkinson Agency with questions.
Council also rejected an initiative from Harrisburg to establish a uniform statewide pension fund for most borough employees in which all pensions’ assets would be paid out of one fund. Council said this is another example of local control over a key funding and revenue source.
Keating said “some municipalities have underfunded their pension funds, but Kingston has worked hard over the last 10 years, through some bad times, to fund their pension plans.”
During public comment, Steve Radzinski asked about the borough’s tax anticipation loan of $740,000 from PennStar bank. He want to know why a loan would be issued to the borough although it has a negative cash balance.
Mayor James Haggerty said Kingston has more than $1 million in assets over all its accounts, and there are certain credits provided by the federal government to banks who lend to municipalities. He said Kingston stands to make about $75,000 in interest because of the difference between the favorable rate of the loan and the current rate available for the borough’s deposit of the loan assets.
In other business, council tabled an ordinance to change traffic on Grove Street to one way in a southerly direction between Pringle and New Hurbane streets. Resident Frank Okonski showed council how the change would affect a handicap space he uses to unload his wife’s wheelchair. Council asked Okonski to attend the next work session to work on a solution to issue.