Proposed Hermitage-Wheatland merger to appear on ballot

Oct. 8—Instead of just choosing candidates for office this November, voters in Wheatland and Hermitage will also choose whether the borough should merge into the city — a move that local officials say would benefit both municipalities.

If the merger is approved, Wheatland would cease to be a separate municipality and would become part of Hermitage, introducing some changes for Wheatland residents while keeping other things the same.

To make sure local residents had enough information regarding those changes before going to the ballot box, a public meeting was recently held at the Hermitage municipal building to explain the proposed merger and answer residents' questions.

Among the Hermitage officials present were City Manager Gary Hinkson, Assistant City Manager Gary Gulla, and city Solicitor Brett Stedman, as well as representatives from various departments and from Wheatland borough. Wheatland will hold its own informational town hall at 6 p.m. Tuesday in the borough building.

Hinkson explained some of the proposed merger's backstory, beginning in October 2019, when Wheatland officials first approached Hermitage about a potential merger.

In February 2020, the borough pursued a grant from the state Department of Community and Economic Development to fund a feasibility study of a possible merger. That grant was approved in August 2020, and the Pennsylvania Economy League was chosen to perform the study.

Although progress was hampered by the COVID-19 pandemic, the Pennsylvania Economy League completed the study by November 2021. The study's conclusion: A merger would benefit both municipalities.

Gulla presented some of the major points of the Economy League's Strategic Management Planning Report, which focused mostly on the financial effects on each municipality.

According to the report, Wheatland experienced surpluses from 2016 to 2020 in its general fund. The borough had borrowed money in 2013 for capital improvements, but the liability was paid off early in 2021. That means Hermitage would not take on any debt in a merger.

The report also found a merger would have few negative consequences. Services are expected to remain the same or possibly improve under a merger due to the larger tax base and extensive city government operations.

The report states, "Long-term municipal financial sustainability is also likely to be more attainable under the larger tax base, and lower property taxes in the Wheatland footprint could encourage new development there."

Earlier this year, both the Hermitage commissioners and Wheatland council members approved a merger agreement at their respective meetings. That agreement now goes before the voters on Nov. 8.

For the merger to proceed, it must get a majority vote Nov. 8 in both Hermitage and Wheatland.

If approved, Hinkson said, there would be a mixture of noticeable short-term effects for Wheatland residents and long-term effects for Hermitage residents.

— TAXES — Taxes would be among those immediate changes for Wheatland residents — some will increase, others will decrease.

Wheatland's current earned income tax is 1 percent, while Hermitage's earned income tax is 1.75 percent. So wage earners would pay 0.75 percent more. However, Wheatland's 24.75-mill real estate tax nearly five times that of Hermitage, so municipal property taxes would go down in Wheatland. Hermitage has not raised its city property tax rate in at least 30 years. Taxpayers in both communities also pay school district and Mercer County taxes, which would be unaffected.

— ELECTED OFFICIALS AND EMPLOYEES — Wheatland's council and mayor, along with the borough's sole remaining part-time employee, would not be retained. Residents would be able to vote for and run for city commissioners.

— MUNICIPAL SERVICES — Wheatland residents and their children would be eligible for parks and recreation programs that are offered for Hermitage residents, and they would have the opportunity to serve on the city's many boards and committees, Hinkson said.

The two municipalities already share some services. Wheatland has contracted with the Hermitage Police Department for police services since 2016 and with the Hermitage Street Department for services such as plowing and street maintenance since 2017. Those services would not be affected.

— SCHOOLS — The school districts and school taxes will also not be affected by the merger. Wheatland children will continue to attend the Farrell Area School District, and Wheatland residents will still have the opportunity to serve on the Farrell school board. Hermitage has its own school system.

— IDENTITY — Even if Wheatland merges with Hermitage, Hinkson said the former borough could still retain its identity as "Wheatland," similar to the Patagonia area of Hermitage.

"We have a part of the city called Patagonia, and it's been called Patagonia forever," Hinkson said.

— FIRE DEPARTMENT — The Wheatland Volunteer Fire Department can also be retained, similar to how the Patagonia Volunteer Fire Department maintains its own building, vehicles and charter while serving as part of the Hermitage Fire Department.

Hermitage residents, however, will not notice any immediate changes since the taxes, services and opportunities they have will remain in place. But over time, the benefits of the merger will be felt city-wide, Hinkson said.

One benefit for the city will be the additional influx of tax dollars from Wheatland residents and businesses, which would provide a financial boost to the city and its services.

The industrial corridor in Wheatland could be another opportunity for city officials, both in securing grants or other support for the businesses already there and promoting undeveloped land for potential new businesses.

The Hermitage zoning map would have to be updated to accommodate the territory of Wheatland, Hinkson said.

Wheatland Mayor Ron Viglio was among the Wheatland officials in attendance at the recent public informational meeting. He said the merger would benefit Wheatland's residents.

Viglio had previously said borough officials had worked over the years to cut costs while maintaining services for residents, but there was only one part-time borough employee left and the only eventual solution would be to continue raising taxes on borough residents.

"We've been working diligently on this for the past three years," Viglio said at the meeting.

Stedman, the Hermitage city solicitor, said that, unlike most mergers, the proposal involving Hermitage and Wheatland was unique since the two municipalities already share services and what is normally the most difficult issue, transferring employees from one municipality to the next, was non-existent in this case.

Part of Hermitage, which is about 30 square miles, already requires city employees to drive through Wheatland, which is about one square mile, Hinkson said.

If approved by voters, the merger would take effect on Jan. 1, 2024, giving the municipalities a year to implement it. This time period would also give officials a chance to tackle any unknowns that may arise, Hinkson said.

Michael Foreman, a representative from the state Department of Community and Economic Development, said these situations usually involve the formation of a transition committee, including residents and elected officials, to oversee the merger if it moves forward.

Although officials from DCED can only serve as technical advisers in this process without advocating for or against the merger, Foreman credited the Hermitage and Wheatland officials with "laying out" all of the information for residents prior to the vote.

Among the people in the audience was Hermitage resident Keith Scheuermann, who asked if the ZIP codes would be affected, since at one point in Hermitage's past, there were many areas that had Sharon or Farrell ZIP codes.

Hinkson said he was told by U.S. Postal Service officials that the ZIP code for Wheatland residents would remain the same under the merger, and that if the ZIP code ever was changed, it would be a decision made by the Postal Service.

Another Hermitage resident, Dewey Lorance, asked whether the school districts would be affected by the merger, which they would not.

After the meeting, Lorance said one of his major concerns was how city officials could attract businesses to the city. If the merger does go forward, Lorance said he hopes local officials implements it carefully and makes the city accessible for new businesses.

Before adjourning the meeting, Hermitage commissioners President Duane Piccirilli said he was glad to see the public's willingness to attend the meeting and ask questions, and further encouraged residents to contact the city if further questions arose before the vote.

Piccirilli said that he worked closely with Viglio on the Shenango Valley Animal Shelter's board of directors and found Viglio, along with the other Wheatland council members, to be very committed to doing the best for Wheatland's citizens.

Piccirilli fully supported the merger and said it would make both municipalities stronger.

"Hermitage has outstanding safety services and staff leadership, it would be a plus for any community," Piccirilli said.

Hermitage commissioners Vice President William Moder said he thought there was a "great participation" from the public at the meeting, and said that Hermitage's resources could help retain and grow those industrial businesses in Wheatland if the merger is approved by voters.

"The first rule of business is, you have to protect what you already have," Moder said.

Moder added that even if the earned income tax rate did increase for some Wheatland residents, that would not include people who are retired or people who work in Wheatland but live elsewhere.

Hermitage Commissioner Michael Muha said the decision to merge Hermitage and Wheatland was an "incredibly important one" for voters, and encouraged residents to take the time and educate themselves on the issue before voting.

Muha said the facts would show voters that the merger is a "great opportunity" that would only strengthen the communities.

City Commissioner Cameron Linton said he thought the public asked good questions during the meeting and that, while the merger would benefit both communities, the greatest benefit could be using the city's resources to market and redevelop Wheatland's industrial area.

This would benefit not only the immediate Wheatland area, but the rest of the city and the surrounding area, Linton said.

City Commissioner Louis Squatrito said that he expected the people of Wheatland would benefit from the merger, since residents would not only continue receiving the city's safety and street services, but would have new access to the city's sports and recreation programs.

The city staff's experience in securing grants could also help draw increased funds to the Wheatland area, while residents could retain their "Wheatland" identity within the city of Hermitage.

"I just hope people get out and vote," Squatrito said.

WHEATLAND WILL HOLD a town hall meeting to discuss the potential merger at 6 p.m. Tuesday in the Wheatland borough building. More information on the merger can be found at wheatlandborough.org; in Hermitage's next newsletter, and at www.hermitage.net/446/Hermitage-Wheatland-Merger

Like David L. Dye on Facebook or email him at .

Like David L. Dye on Facebook or email him at ddye@sharonherald.com.