SHARON Council reluctantly OKs budget

Some council members said they agree with the tax increase but not the layoffs.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARON, Pa. -- Six layoffs, a 5.5-mill property tax increase and an 11 percent increase in the sewer user's fee are all part of a 2003 budget plan proposed by Mayor David O. Ryan.
City council voted 3-2 to pass the first of two required readings of the budget ordinance Thursday, but none of the council members seemed pleased with the $8,015,994 spending plan.
Ryan said he isn't happy about it either but he had to submit a responsible, balanced budget.
"I find it distasteful to suggest both an increase in taxes and a reduction in personnel, but I also am committed to raising the city from the ever-deepening financial dilemma that I inherited upon taking office on Jan. 7, 2002," Ryan said.
The tax increase, which would raise total millage to 42.5, would generate $530,686 in new revenue while the furloughs of two police officers, two firefighters and two street department equipment operators would cut costs by $198,483, the equivalent of just over 2 additional mills of tax, Ryan said.
Increases
Michael Gasparich, city finance director, said the average residential taxpayer bill will increase by $71.
Council President Fred Hoffman disagreed, saying the average increase will be $95 to $100, based on county tax office figures.
Hoffman also said residents can expect about a 25 percent increase in their garbage fees next year as the city will award a new contract Feb. 1, although that's not a part of the budget.
The 11 percent sewer fee increase will average $2.21 per month.
Reaction
"This is the most brutal budget I've seen in 20 years on council," said Councilman Ray Fabian.
He said he's OK with the tax increase but is worried about safety forces cuts, particularly the fire department, which would be reduced to 16 people. That will leave four per shift, and with vacations and time off, the number on duty would frequently be down to three, he said.
Fabian said he is less concerned about police cuts because that department would still have 28 officers.
Cutting two street workers would reduce that department to six.
Ryan said there will be enough firefighters to get the trucks to any fire, and in the case of structure fires, the department automatically calls out off-duty personnel.
Councilman Lou Rotunno challenged the mayor's budget numbers, saying the city can get by with a 1.5-mill tax increase and not lay off anyone.
Councilwoman Chris Outrakis said the city went for years without raising taxes and now finds itself in a bind.
"We all went along with it," she said, noting no one asked what that would mean for the future.
Hoffman said he will support a 5.5-mill tax increase but not if it includes layoffs.
He had recommended a 5-mill tax increase for 2002, but council settled on a 3.5-mill increase instead.
Hoffman said he would prefer to see personnel other than safety forces be furloughed if job cuts are a necessity.
"We've got to take a good look at [the budget]," said Councilman George Gulla, urging council members to do crunch numberes before final adoption set for Dec. 19.
Alternatives
Ryan said there are three alternatives to his budget plan but none are acceptable.
The city could not raise taxes or cut jobs but would surely default on its bills in June or July or it could raise taxes by 10.2 mills to keep everyone working, cover increases in costs and pay off a $450,000 deficit.
The third option would be to lay off about 20 employees to cover the deficit, but that would reduce city services to an unacceptable level, he said.
Ryan's budget proposes that the city end its seven-year affiliation with the Shenango Valley Regional Lock-Up in Farrell where most of its prisoners are now housed. The lockup costs about $50,000 a year, and Sharon can reopen its own jail cells for $25,000 a year or less, he said.