Nov 26, 2015 1 min read

MONONGAHELA – The city of Monongahela is citing inflation as the reason for a 2-mill real estate tax increase needed to balance next year’s expenses under the terms of a tentative budget introduced Monday.

“The inflation rate of expenses has finally exceeded our current millage rate,” Monongahela Councilman Tom Caudill said.

The $2.6 million tentative budget will increase the millage rate to 25, the highest allowed for a city the size of Monongahela without an order from Washington County Court.

The city in 2004 received a court order to raise the millage rate to 30 mills, but since has reduced it to 23 mills, Caudill said.

He said the tax reassessment due in Washington County in 2017 should provide a “broad enough tax base” that will permit council to lower the rate back to 23 mills.

The proposed 2016 spending plan earmarks $813,000 to the public affairs department, which includes police department expenses.

It shows the accounts and finance department spending $1.2 million on such expenses as insurance and employee benefits.

The budget includes $2.6 million in revenues that are made up in part by $1 million in income from real estate taxes.

The budget will be adopted during a meeting to be scheduled in December.