Budget struggle continues
CONNELLSVILLE – Council continued Friday to determine what revenues will be generated next year, but left the special budget meeting knowing that whatever money is forthcoming it will not be a sufficient amount to equal anticipated 2007 expenditures. “Some very tough decisions are going to have to be made,” said Councilman Terry Bodes, director of accounts and finance, after the meeting. “But, until we have a clear picture as to what revenues we can expect, I don’t know what direction we will take.”
Bodes admitted that a cut in municipal services, employee layoffs or a property tax increase are the potential solutions for the expected deficit.
“Those have all crossed my mind,” he said.
While three months remain in the fiscal year, according to the information produced for the meeting, some tax income has fallen short of what was predicted last year, including real estate tax and delinquent taxes, Act 511 tax income, including per capita tax, earned income, mercantile and occupational privilege tax, along with tax money generated through mechanical devices.
Permit fee revenues are also lagging behind, according to the financial documents.
“We just don’t know where we are at (financially),” said Mayor Judy Reed as she pointed to the lack of any figures for certain line items and the numerous shortfalls in others.
Expenditures will increase next year, according to the proposals submitted by department heads, with contractual salaries for the street and fire department employees to rise three percent.
The police department is in contract negotiations with the city. The current three-year agreement expires at the end of the year.
Councilman Charles Matthews, who oversees the street department, increased spending figures for gas, grease and oil purchases by $2,000, street signs and post paint by $1,000 and seasonal employee expenses by $5,376 over last year’s budget.
The spending plan for the code enforcement and health department, headed by Councilman David McIntire, did not show any increases in expenditures for its operation or salaries for the health and code officer.
The fire department, also under McIntire’s authority, increased expenditures for overtime and holiday pay by $1,000, equipment maintenance by $500 and capital outlay by $1,500 over its 2006 spending plan.
Reed, who also heads the police department, increased overtime expenses by $7,000, gas, grease and oil by $5,000; traffic control by $500; call system by $2,000; training and travel by $1,000; vehicular maintenance and repair by $1,000; lease/purchase of vehicles, $9,000 and capital outlay by $500 from last year. The treasurer’s office decreased its 2006 spending by $250 for the upcoming year. The financial documents did not disclose anticipated costs for insurances or if a contribution would be made to the New Haven Hose Volunteer Fire Co. for its operation. The sometimes controversial donation, which has been $12,000 in past years, was cut from the 2006 fiscal plan. The next budget session is scheduled for Oct. 24.