KITTANNING -- Despite facing a shocking 48-percent increase in employee health-care costs, council Monday night approved a tentative budget that will not increase borough property taxes. Gerald Shuster, council president, described the 2008 fiscal plan as " ...an absolute bare-bones budget." He said that to compensate for the dramatic rise in health-care costs, and to avoid a tax increase, the borough will have to take a number of cost-cutting measures. Although he didn't elaborate on what all may be affected, Shuster said it would be necessary to terminate three, part-time borough workers effective Nov. 15. Four council members voted unanimously to approve the measure. Council members Robert Hulings, Mary Piluso and Wilber Stitt were not at the meeting. Shuster said the increase in employee health care is the largest in borough history. "We have never had a health-care increase of more than 12 percent," he said. "This sets a record, taking the borough's share from $207,000 annually to more than $280,000. Moreover, we've also been hit with an increase in workmen's compensation, going from $44,000 to $57,000." Shuster added that a projected year-end budget balance for 2007 was $200,000. However, the projected end-of-year balance for 2008 will be less than $2,500. Although borough residents will not see a tax increase, households will be paying more for garbage collection. Council voted unanimously to raise the fee by $4 a month, taking the monthly cost from $19 to $23. Shuster said there has not been an increase in garbage fees since 2000. Since then fuel costs have increased by 50 percent, general labor costs by 11 percent, and the borough has purchased a new garbage truck. He said the garbage fee is paid by all borough residents, not just homeowners. The new fees would add about $69,000 to the borough's income. "It is essential to note that the increases in health-care costs, workmen's compensation, fuel and so on, were not anticipated, and are not in council's ability to control," he said. The borough has 22 employees including police, street department, a codes-enforcement officer, and administrative workers. Shuster said the current borough tax is 21 mills and 1 mill brings in about $28,473 in revenue. Council will vote on a final budget at its Dec. 3 meeting.

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