SHARON Council OKs loan until tax revenues come in

The loan will cost the city $17,000 less than anticipated.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARON, Pa. -- City council has approved borrowing up to $1.25 million in a tax anticipation note for 2003 but is reluctant to approve an employee insurance buyout plan that could cut next year's spending by $21,500.
Council, meeting in special session Monday, approved borrowing money in a tax anticipation loan from First National Bank of Pennsylvania at an interest rate of 2.48 percent. The money will be used starting in January to cover municipal expenses until 2003 tax revenues are received.
Council President Fred Hoffman noted that the interest rate on the loan is better than anticipated.
The proposed 2003 budget shows $48,000 in interest costs on the loan but Michael Gasparich, city finance director, said the interest will total only $31,000, based on the 2.48 percent rate. That means a $17,000 savings in projected 2003 expenses, Hoffman said.
Council took no immediate action on another plan presented by Gasparich that would cut employee insurance costs by an estimated $21,500 next year.
Sharon has offered a $1,000 per year health insurance buyout for the past three years for employees who drop their municipal insurance package in favor of being covered by insurance carried by their spouse's employer.
Interest in buyout
Gasparich said eight city workers take advantage of the buyout now and he was recently approached by at least three others who said they would be interested if the city sweetened the offer.
Gasparich proposed a $1,250 annual buyout for single people and $2,500 for family coverage.
The plan would save the city $1,750 a year for a single person while the family savings would amount to $7,500 annually for each family coverage.
He said the three people who are interested all have the family package and there are indications that others may be interested as well.
Council balked at his plan.
"You're giving too much and saving too little," said Councilman George Gulla.
Councilman Lou Rotunno also suggested the plan is too generous.
"It's too much money, but if you save $20,000, you can bring a firefighter back," said Councilman Ray Fabian, referring to the proposed layoffs of two firefighters, two police officers and two street department workers in the new budget.
Hoffman told Gasparich to put the plan in writing for council to consider at its Dec. 19 meeting.