Greensburg council plans to hold line on taxes

Greensburg City Council introduced a 2011 budget yesterday that calls for no increase in property taxes, which would remain at 25.05 mills.

Under the proposal, the overall $23.25 million budget raises the general fund allocation from 17.05 to 18.30 mills, but decreases the sinking fund by the same 1.25-mill difference, from 8 to 6.75 mills. The sinking fund is used to pay long-term debt.

Councilman Rob DePasquale, director of accounts and finances, said that the sinking fund earmark was lowered because of proposed refinancing of debt next year. The amount to be forwarded to the general fund through that refinancing equals $160,000. A mill raises about $129,000.

Another $140,000 is projected to be saved by not filling a vacant full-time position in the police department and another among the Teamsters, which involves city electricians, road workers, maintenance personnel and recreation workers. City officials said the two hirings may occur later, especially if the economy improves.

DePasquale said salaries are proposed to increase by 3 percent for full-time union and nonunion employees. City Administrator Sue Trout and Fiscal Director Mary Perez, who were involved in assembling the budget, are not taking raises next year, he said.

The budget includes a $100 fee proposed for groups -- many nonprofits -- for benefit walks and a $400 fee for benefit races. The fees are to help cover city costs for such expenses as blocking off roads or supplying recreation workers.

The budget is the second in a row with no proposed tax increase.

Council hiked property taxes 3.8 mills for the 2009 budget and 1.25 mills for the 2008 plan. Prior to the 2008 budget, council hadn't increased real estate taxes for a decade, and had decreased them one year.

Under the proposed plan, the general fund totals $10.92 million. It includes $3.86 million for public safety; $3.78 million for accounts and finances; $1.22 million for administration, development and public operation; $910,552 for public works; and $1.15 million for parks and recreation.

The sinking funds totals about $1 million. Other portions of the budget involve such accounts as liquid fuels and grant funds -- categories not directly supported by local property taxes. The budget shows a line-item entry for $6 million for money proposed to come from the state for a new Seton Hill University visual arts center.

Plans are for council to vote on the budget on Dec. 13.