NEW CASTLE —
So what’s worse, a one-mill property tax hike or a $1-per-bag increase in trash costs?
That’s essentially the unpleasant choice facing New Castle residents next year. The city’s Act 47 team had recommended the property tax boost as part of New Castle’s recovery plan update.
Unhappy with that possibility, members of city council instead are proposing a hike in city’s blue trash bag fees, from $2 to $3 each.
Both plans are intended to generate roughly $400,000 for the city budget, money that’s needed to help deal with rising pension costs in the coming years.
Arguments in favor of adding to the blue bag fee are that it impacts renters as well as property owners. But the case could be made that landlords raise rent to cover expenses whenever property taxes go up.
Another big difference with a high blue bag fee is that this falls solely on individuals, and not businesses, the way property taxes do.
To some extent, people can control their garbage costs if they recycle properly. But if the fee increase leads to reduced blue bag use, that will cut into the revenue the city anticipates.
Ideally, the city’s blue bag system is based on fairness. People pay only for what they use. Unfortunately, there are concerns the requirement to purchase individual bags for trash disposal encourages illegal dumping by people who don’t want to pay.
Lurking behind the issue of how to generate new revenue in the city is the fact there is more pain to come. The Act 47 team, tasked with finding ways to keep New Castle’s revenues and expenditures in balance, is proposing an additional one-mill tax hike in the future. The fiscal problems the city faces won’t be resolved by a single jolt of $400,000 in fresh cash.
Faced with the chore of looking at ways to cover costs, members of city council have been engaged in a painful, but necessary, discussion. It includes a push, led by Councilman Tom Smith, to find ways to cut costs as well as raise revenue.
Among other things, Smith is proposing the city look at privatizing trash collection and other services. If any such efforts help to lower the costs of the typical city resident, they are worth pursuing.
However, it should be noted that if the city gives up a revenue stream, such as garbage collection, the problem of pension costs doesn’t go away with it. New Castle government still must make its ends meet.
The harsh reality is that there is no easy answer to New Castle’s predicament. Obviously, we encourage efforts to pursue efficient and cost-effective delivery of services. City officials need to be engaged in these discussions, not just looking at what fees to boost.
And the city needs to reach out for support from other entities and organizations. New Castle’s fate will impact all of Lawrence County.
Editorials
Related Photos
Discussion
Our Opinion: No easy answer for New Castle’s money problems
- Editorials
-
-
Our Opinion: State audit says city school district failed to collect from non-residents
Audit information about non-resident students who didn’t pay tuition at New Castle raises more questions than it answers. At least so far. We expect more details when the Pennsylvania auditor general’s office completes its report and the New Castle school district provides its response.
-
Our Opinion: Make the most of your power to vote by casting ballot tomorrow
So what kind of turnout will there be for tomorrow’s primary? Recent history suggests somewhere between low and lousy. This year’s elections are devoted to local races, and there are few major ones being contested in the primary.
-
Our Opinion: Privatization of county jail is worthy of examination
Generally speaking, we support government efforts to seek more efficient ways to provide essential services. So we have no problem with the decision by the Lawrence County commissioners to solicit proposals for the private operation of the county jail.
-
Our Opinion: We endorse candidates for New Castle board
The New Castle school district is often a study in contrasts. There are complaints about the district on everything from taxes to nepotism, from test scores to ethical slights. Yet at the same time, plenty of students within the district excel. It’s a tribute to the hard work of those students, their families and the educators who support them.
-
Our Opinion: You should be frightened, outraged by IRS abuse of power
When people talk about government posing a threat to citizens, a common topic these days is unmanned drones. But a more credible threat may be the Internal Revenue Service. This agency, responsible for collecting taxes and enforcing related rules, has the ability to make life miserable for the average individual.
-
Our Opinion: Our endorsements for City Council race
The city of New Castle needs help. Financially distressed and operating under Pennsylvania’s Act 47, New Castle must find ways to reverse its population loss and fiscal challenges.
-
Our Opinion: Court frowns on gerrymandering, but only slightly
Pennsylvania legislators have received the green light to put their own political interests ahead of yours. That’s a key point in the latest Pennsylvania Supreme Court ruling on legislative apportionment in the commonwealth.
-
Our Opinion: Study says distracted driving deaths are under reported
Suppose you operated a piece of heavy machinery at your job. And suppose it’s machinery that moves quickly with little effort. What would happen if you decided to take one hand off that equipment — while it was still in motion — and instead focused your attention on a telephone call?
-
Our Opinion: Senate seeks to give states more taxing power
Congress is taking a stab at tax fairness. At least, where states are concerned. If you’re looking for meaningful reform of the federal tax code, that’s going to have to wait.
-
Our Opinion: Look at handling of bombing suspects is warranted
We welcome an investigation into the handling of intelligence related to suspects in the Boston Marathon bombing. That probe may reveal little of value.
- More Editorials Headlines
-
Our Opinion: State audit says city school district failed to collect from non-residents
