SHARON, PA. Mayor proposes 2004 budget with no tax or fee increases

The city has also been able to greatly reduce the rollover of unpaid year-end bills.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARON, Pa. -- There would be no tax or fee increases and no cuts in staff or services under a proposed 2004 budget of $8,478,773 offered by Mayor David O. Ryan.
For the first time in three years, Sharon will enter the new year with a positive general fund balance, the mayor said as he presented his version of the spending plan to city council Monday.
Council passed first reading of the budget, and departmental budget hearings are set for 3 and 4 p.m. Dec. 9.
The budget shows a $457,779 increase, and the biggest chunk of that is a projected $300,000 increase in employee health insurance, Ryan said.
Employee salary increases will add $130,000 more to the expenditure side of the budget.
Ryan was faced with a $239,000 deficit at the beginning of the year when he took over as mayor in 2002. That number dropped to a projected $170,000 at the beginning of 2003 but is expected to be a positive $75,000 at the beginning of 2004, he said.
Rollover reduced
Turning around the year-end fund balance isn't the only positive aspect of city finances, he said.
The city had rolled over $486,000 in unpaid 2001 bills into the 2002 fiscal year.
Ryan said that rollover was reduced to $386,500 going into 2003 and is expected to be under $200,000 going into 2004.
Most of that reflects the late arrival of December bills, said Mike Gasparich, city finance director.
"I think we've done pretty good the last two years," Ryan said, praising his department heads and city employees for helping to reduce the red ink. He also thanked council for its cooperation.
The city plans to add two employees in the sewer plant, with their salaries to come from sanitary sewer fund fees. No employee cuts are planned.
Ryan said an assistant waste collection coordinator is needed to perform additional work required by the city's new federal treated water discharge permit that requires implementation by Jan. 1, 2005, of a pre-treatment plan for industrial waste entering Sharon's sanitary sewer system.
A laborer is also needed to perform testing on residential downspouts to make sure they aren't tied into the sanitary lines as part of the effort to reduce surface water infiltration into the system, he said.
Still tight
The budget is still very tight as it shows only a $500 year-end balance to carry into 2005, Ryan said.
City council, which opted to raise property taxes 5.5 mills last year to a total of 42.5 mills in lieu of Ryan's plan to lay off six city employees to balance the 2003 budget, seemed pleased with the new spending plan.
"I think it's a responsible budget," said Councilman Fay Fabian, complimenting Ryan for getting city spending under control.
Councilwoman Chris Outrakis offered her congratulations to the mayor as well.