Connellsville Council adopts preliminary budget with no tax increase
Connellsville City Council adopted a preliminary $2.9 million budget that holds the line on property taxes next year.
The budget, which council will consider for final adoption at its Dec. 20 meeting, projects revenue of $2.99 million and expenses of $2.98 million, and maintained the current real estate tax rate of 8.25 mills.
Mayor Greg Lincoln said department heads and council members closely examined every line in the spending plan and made accurate revenue and spending projections.
“This is one of the best ones we’ve been able to come up with for the city. We’re looking for a good 2017 for the city. I think its going to be a very positive year for us,” Lincoln said.
He said the city’s finances have dramatically improved in the three years he has been in office.
The Liquid Fuels budget includes $120,000 for streetlight electric bills, some of that money could be re-allocated for street paving projects after the existing lights are replaced with energy efficient LEDs.
Lincoln said West Penn Power started replacing the 717 city streetlights last week and the $40,000 to $60,000 in estimated savings in the electric bill will be used for street and sidewalk paving.
The Liquid Fuels budget includes a $188,000 fund balance from this year and a $240,057 projected allocation for next year. The total fund balance is $428,057.
From that amount, appropriations total $348,000 including $140,000 for paving and $41,000 for storm sewer repairs. Next year’s fund balance would be $80,057.
Projected income for the general fund includes $1.2 million from property taxes, $525,00 from earned income taxes and $200,000 from mercantile and business privilege taxes. Total tax revenue is projected at $2.2 million.
Intergovernmental revenue is projected at $374,854, which includes reimbursements for pension contributions, reimbursement from the school district for tax collection, Act 13 impact fees and other reimbursements.
Revenue from licenses and permits is projected at $171.990.
Expenses are topped by the police department. The police budget of $1.4 million includes $1.3 million in wages and $110,000 in other expenses.
In addition to the budget, council approved a three-year contract with the Connellsville Police Officers’ Association, which represents the 15-officer department. The budget includes pay raises of 2 percent next year and 2.5 percent in 2018 and 2019.
Lincoln said the contract is fair to the police officers and the city.
Council also promoted Andy Hominsky from patrolman to corporal to fill a vacancy.
Other expenses include $437,917 for employee benefits, $381,000 for public works department wages and expenses, $107,171 for fire fighter pensions and allocations to New Haven Hose Co., $97,562 for debt service to pay off a tax anticipation loan and a PENNVEST loan, $95,069 for insurance, $83,750 for public buildings, $60,375 for code enforcement and $40,800 for the health department.
The recreation budget includes $24,000 in available funds from fundraisers, rentals, camp registration and donations, and $15,000 for equipment maintenance, materials and supplies.
Lincoln said contract negotiations with the union representing the public works employees are in the final stages and he hopes a contract is ready for the December council meeting.
In addition, he said two police vehicles will be replaced with new leased vehicles next year.