Dec 22, 2002 By Steve Ferris 4 min read

In its last scheduled meeting of the year, on Friday, Uniontown City Council passed a 2003 budget with no tax increase, approved contracts with all three employee unions and extended the Local Economic Revitalization Tax Assistance (LERTA) program for three years. The balanced $6,285,438 budget for next year, which is only $10,711 more than the 2002 spending plan, was approved on a 4-1, vote with Councilman Joe Giachetti casting the dissenting vote.

Giachetti said approval of the 2003 budget, as it was proposed, would result in a tax increase of 6 to 10 mills in 2004.

“How do you know that, Joe?” Mayor Jim Sileo asked.

Giachetti didn’t respond.

“You’re entitled to your opinion, and it’s wrong as hell,” said Councilman Bob Cerjanec, director of accounts and finance.

Cerjanec, who prepared the budget, said there would be no tax increase in 2004, and he asked Giachetti how he determined that taxes would have to raised.

“No comment,” Giachetti said.

Increases in wage, benefit, health insurance, liability insurance and worker’s compensation costs made balancing the budget difficult, Cerjanec said.

He said workers’ compensation insurance will increase from $150,000 this year to $290,000 in 2003. Liability insurance rose $12,000, and health insurance increased by $60 per employee, he said.

Savings from employee attrition and switching from sodium to mercury streetlights, and using $200,000 in cash reserves offset the cost increases, he said.

“In short, you’re getting the biggest bang for your tax buck,” Cerjanec said.

The city’s millage was reduced from 26.82 to 6.735 due to the countywide reassessment.

The budget projects revenue from real estate taxes at $1,645,900 and revenue from Act 511 taxes, such as real estate transfer and occupational privilege taxes, at $579,000. Income from fines and forfeits was projected at $633,000.

Expenditures include $1,082,960 for the police department, $709,782 for the fire department, and $358,215 for debt service on the principal for public safety building and parking garage loans.

The council approved employee contracts in staggered terms so all three don’t expire at the same time, like they did this year, Cerjanec said.

The three-year police contract includes 2 percent wage increases in 2003, 3 percent in 2004 and 4 percent in 2005. Teamsters Local 491 represents the city’s police officers.

The two-year fire department contract includes 2 percent pay raises in 2003 and 3 percent in 2004, and the one-year non-uniform employee contract includes 2 percent raises. International Association of Firefighters Local 955 represents the city’s paid firefighters, and the American Federation of State County and Municipal Employees District 84 represents the non-uniform employees.

“Everybody got 2 percent (in the first year). That’s all we could afford,” Sileo said.

The council unanimously approved all three contracts. Cerjanec said the unions already approved the agreements.

The board, again on a unanimous vote, adopted the LERTA extension ordinance for the downtown central business district. It will replace a five-year program that expires at the end of this year.

Approval came after the council discussed expanding the LERTA zone to encompass a larger area and whether the term should be three or five years.

The ordinance, which also requires approval from the Fayette County commissioners and Uniontown Area School Board, provides exemptions from real estate taxes for new construction in deteriorated areas and improvements to certain deteriorated commercial and business properties.

Giachetti said limiting the zone to the central business district means properties along Connellsville and Morgantown streets do not qualify for the exemptions.

Solicitor Daniel Webster advised council that expanding the zone would result in less revenue from taxes.

Sileo suggested keeping only the central business district in the zone for three years and developing another program for other areas of the city.

Councilman Gary Crozier said providing too many tax breaks would undercut the tax base, which is needed to pay for services provided by the city.

Webster also said the ordinance could be amended, but the county commissioners and school board also would have to approve the changes.