Oct 16, 2002 By Patty Shultz 2 min read

CONNELLSVILLE – A moderate increase in revenue and reallocation of a special fund, coupled with cuts in expenditures, will allow for the city to meet its financial obligations for the upcoming year, according to the city’s financial director. Councilwoman Judy Keller, who serves as the head of the accounts and finance department, said she took a “somewhat conservative approach” to calculating the 2003 spending plan, which she revealed Tuesday to the members of council.

The $2.164 million budget is about $112,000 higher than this year’s spending plan.

Keller said the additional income into the general fund stems from her plan to eliminate the capital improvement fund, which was enacted by the previous administration.

“It was not (enacted) according to the guidelines established by state law,” said Keller.

Only certain special purpose taxes are allowable under the regulations and include recreation, library, shade tree, financial recovery programs and bonded debts or sinking funds.

Under the guidelines, certain portions of tax dollars are earmarked for the funds.

The city sets aside about $1.30 from each $100 it receives from real estate taxes for recreation purposes. About 40 cents from each $100 is earmarked for the library fund.

The capital improvement fund, which replaced the previous sinking fund, set aside about $1.20 for the account.

Keller, meanwhile, said instead that what was previously received in the improvement fund will be incorporated into the general fund.

The general fund was further supplemented with additional revenues garnered through the police department.

According to the figures released by Keller, the city will receive about $140,000 in revenue from the department’s participation in several countywide programs.

Despite the increase in revenues, several departmental budgets were trimmed in order for the city to compensate rate hikes in insurances and utilities, in addition to contractual obligations, said Keller.

The street department budget was cut by nearly $14,000 over last year, with the accounts and finance department adjusted downward by $8,000.

Similar decreases were seen in the public buildings and health department budgets.

An additional $1,000 was put into the spending plan to accommodate the printing of tax notices, with $21,000 added to the budget for the operation of the fire department and $73,000 to the police department.

Council will meet again Thursday at 7 p.m. to discuss the budget further.