CITY COUNCIL Proposed budget holds the line on taxes

Farrell is expected to end this year with a balance of more than $100,000.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
FARRELL, Pa. -- General fund spending would increase by $130,000 next year, but the city should have sufficient funds to cover the increase without raising taxes, according to the proposed 2005 city budget.
City Manager LaVon Saternow presented her budget estimates to city council Monday, pointing out that the general fund of $2,332,450 shows a $53,094 revenue shortfall.
Farrell should end 2004 with sufficient cash to cover that amount, however, she predicted.
Farrell ended 2003 with a $124,812 fund balance and should be in a similar position at the end of this year, Saternow said.
She said the major increases in projected spending include an additional $44,000 for the Southwest Mercer County Regional Police Department, which provides police services for the city, and $65,210 in increased contributions to the fire pension fund.
Saternow said the city hasn't begun negotiations with its American Federation of State, County and Municipal Employees union workers whose contract expires Dec. 31. That contract could affect the final budget figures.
City council will schedule budget hearings to review and perhaps make changes the spending plan before approving it in December.
Breakdown
Major revenue and spending categories (with 2004 numbers in parentheses) show:
REVENUE
UReal estate taxes: $720,000 ($710,000).
UEarned income and occupational privilege taxes: $923,000 ($881,040).
UContributions and grants: $202,354 ($203,000).
UTransfers from sewer and other funds: $118,500 ($117,600).
UTax collection revenue from school and county: $94,107 ($92,285).
SPENDING
UPolice services, including crossing guards: $931,990 ($887,767).
UEmployee health care and pensions: $402,061 ($342,310).
UPublic works: $303,760 ($293,260).
UFire services: $253,300 ($246,800).
UAdministrative costs: $136,860 ($134,585).
UTax collection: $107,852 ($104,152).