Council adopts budget, makes overtime cuts

By VIRGINIA ROSS
VINDICATOR CORRESPONDENT
NEW CASTLE, Pa. -- City council has adopted a $12.5 million budget for next year, with a 1.5-mill property tax increase.
Council, at a special meeting Wednesday, agreed to decrease expenses, specifically by cutting employee overtime and eliminating some services.
The spending plan represents a $200,000 decrease in the $12.7 million budget Mayor Wayne Alexander proposed and presented to council last month. Alexander had proposed increasing the property tax by 2 mills.
At recent budget work sessions council members said they had hoped to narrow the tax increase to 1.25 mills, but were not able to accomplish that goal. One mill generates $422,000 a year.
The mayor had also proposed freezing some annual salaries, including his own at $49,895, and that of city business administrator Tammi Gibson at $46,350. However, to comply with a city ordinance, council was obligated to budget a $1,497 raise for the mayor for next year. Alexander has said he plans to put that money back into the city's general account, however.
Tax increased
Council also increased the emergency services tax, formerly known as the occupational privilege tax, by $22, from $30 to $52. That tax is levied on those who work in the city, regardless of whether they live in New Castle. The mayor said he proposed the tax increases in an effort to reduce the city's $1.7 million deficit.
Council also amended the mayor's spending plan by cutting some $60,000 he had budgeted for overtime and cut a proposed $10,000 contribution to the Lawrence County Learning Center. Also, $25,000 originally budgeted for the city-wide spring cleanup was cut, essentially eliminating that service.