FARRELL Spending to go up without taxing citizens

A $79,000 year-end balance will help offset most of the increase.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
FARRELL, Pa. -- City spending will go up $88,552 next year, but it won't cost taxpayers more money.
City Manager LaVon Saternow presented her proposed general fund budget to city council Monday, noting that increases in spending will largely be offset by a projected 2001 year-end balance of $79,000.
There are no tax or service fee increases in the proposal, Saternow said, adding that the final version will be determined by council.
The proposed budget totals $2,062,094.
Raising wages: Major increases include a $15,000 rise in employee benefit costs, $18,000 to change a part-time public works employee to full time and a $30,000 jump in the city's share of the Southwest Mercer County Regional Police Department budget.
She said she budgeted $1,000 annual increases for each salaried employee and 50 cents per hour increases for hourly employees, although those are estimates because the city doesn't have contractual agreements for next year yet with either its firefighters or nonuniformed employee unions.
Saternow said the city has reached a tentative agreement with the nonuniformed people and negotiations are progressing with firefighters.
Farrell has been doing better than anticipated in its earned income (wage) tax revenues, she said, noting revenues exceeded estimates by $75,000 in 2000 and were expected to exceed this year's projection as well.
That trend should continue in 2002, but she cautioned that economic conditions are not as favorable as they have been and that number may not come in.
Council will schedule work sessions and public hearings on the spending plan before final adoption in December.