FARRELL, PA. Tax increase hinges on outcome of negotiations

Contract negotiations now under way could change the budget figures.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
FARRELL, Pa. -- The city's general fund budget will go up by about $123,000 next year, and there are no plans for a tax increase.
The numbers could change based on what happens in current contract negotiations with employees who are members of the American Federation of State, County & amp; Municipal Employees union, said LaVon Saternow, city manager.
The proposed 2004 budget she presented to city council Monday shows no salary increases for any position at this point, she said.
The city has no other unionized employees, and although AFSCME represents only five street department and clerical workers, any raises it negotiates are traditionally also given to the city's other 15 full-time employees, Saternow said.
Farrell has about 20 part-time workers as well and they would get the same percentage increase in their wages, she said.
The city has received AFSCME's contract demands but has yet to have a negotiating session, Saternow said.
The proposed general fund budget totals $2,188,582 as compared to $2,085,173 this year.
What's going up
Saternow said most of the increase can be found in higher health insurance costs (up $39,000) and an anticipated higher contribution to the operation of the Southwest Mercer County Regional Police Department (up $33,563).
Farrell doesn't have its own police department but shares the cost of a joint department serving Farrell, Wheatland and West Middlesex.
Farrell is contributing $849,592 to the department this year and Saternow has budgeted $883,155 for next year, based on past average annual cost increases for the department.
Saternow also presented council with a proposed 2004 sewer fund budget of $749,208, an increase of $15,000 over this year.
She said it reflects an increase enacted in March that saw the average residential rate climb from $169 to about $193 and raised revenues by about $78,000 a year.
That should be sufficient, although the city doesn't know yet what improvements the state Department of Environmental Protection might require for Farrell's Keifer Pump Station, which may need some extensive work, she added.
That project could lead to another rate increase, she said.
The city is keeping within its current general fund budget despite higher-than-anticipated street department overtime and related snow removal costs from early in the year, Saternow said.
She increased that department's overtime line item by $5,000 in the new budget in anticipation of another bad winter.
Property taxes will remain at 22.67 mills with city residents paying between $12 and $14 per mill.
City council will have a public hearing on the new spending plan at 6 p.m. Nov. 24.
gwin@vindy.com