SHARON Council approves budget on second vote

The eliminated positions are a police captain, detective, police clerk, wage tax clerk and street laborer.
By MARY GRZEBIENIAK
VINDICATOR CORRESPONDENT
SHARON, Pa. -- It took two tries to pass a 2002 city budget that avoids a deficit by cutting five positions.
Council members came to Friday's meeting expecting to take final action on a $7.9 million budget that includes a 3.5-mill tax increase. But members learned that $109,108 in unanticipated increases in health insurance and workers' compensation premiums would cause a 2002 deficit if cuts were not made elsewhere.
Finance Director Michael Gasparich explained he received a bill for next year's workers' compensation coverage, which is $39,108 higher than the budgeted amount, and a premium for health insurance coverage that is $70,000 higher.
Gasparich said the workers' compensation increased because of a rise in the city's claims and a $110,000 growth in payroll.
Health insurance: He added that he had verbally agreed to a 24 percent increase in employee health insurance. But he said the insurance company employee who made the agreement is now in the military and the city is being billed for a 35 percent increase instead. He said he will meet with company officials to try to get them to honor what he considers an implied contract with the city.
Gasparich presented figures showing that elimination of five positions in various departments -- including a police captain and a detective -- would save $131,709, enough to make up for the additional costs and avoid a deficit next year. No layoffs would be necessary because all five jobs are currently vacant.
A vote to eliminate the positions passed 3-2, with Council members Ray Fabian and Chris Outrakis voting no.
Other motions failed: However, motions which followed to pass the amended budget, increase the tax rate by 3.5 mills and set the number of city employees all failed 3-2, with Council President Fred Hoffman and Councilman George Gulla in favor and Lou Rotunno, Ray Fabian and Chris Outrakis against.
Outgoing Mayor Robert Price conceded it is difficult to make budget adjustments "at the eleventh hour." Hoffman said he was disappointed that the 3.5-mill increase alone was not going to solve the city's financial problems. Gulla said he was voting for the cuts only reluctantly. Fabian and Outrakis opposed eliminating jobs and Rotunno said other positions might be cut instead.
Stalemated, council recessed for 10 minutes. When it returned to council chambers, Fabian announced that although he is strongly opposed to eliminating police officers, he would change his vote so the city can continue to operate. On the revote, all council members except Rotunno supported the budget appropriation, new tax rate and number of employees.
Council members asked Solicitor William Madden whether they can amend the number of employees later next year. He told them they could authorize the mayor to fill an additional position next year if they find money for it.
One police captain: The action leaves the city with only one police captain. The eliminated position is the one to be left vacant when Tom Burke becomes police chief next year.
It also leaves the city with three instead of four detectives, eliminating a position that was vacant. The other eliminated positions are a police clerk, wage tax clerk and street laborer. Someone had been hired for the wage tax post, effective Jan. 1, but that hiring will now be rescinded.
Council also gave final approval to an ordinance which limits the mayor and finance director to spending only one-fourth of the budget in each quarter of 2002. The measure passed unanimously despite incoming Mayor David O. Ryan's objections that it may hamper action in an emergency. The purpose of the measure is to let council see potential budget problems.
Council set its reorganization meeting for 5 p.m. Jan. 7. It will be followed by the 7 p.m. swearing-in of incoming Mayor Ryan.