The Herald, Sharon, Pa.

Local News

November 13, 2009

UPDATE: Council OKs preliminary budget in split vote

By Courtney L. Anderson

SHARON — Sharon council members Thursday by a single vote approved the 2010 preliminary budget as presented last week by Mayor Bob Lucas.

Lucas’ proposal includes a 1.5 mill real estate tax hike, but he said Thursday that he thinks the budget can be balanced with an increase of 0.4 mills.

Council Vice President Frank Connelly and member Bob Messina both voted against the budget, setting the real estate tax rate at 28.1 mills and a plan to cut 2.5 city jobs.

Council President Mike Donato stressed that “people shouldn’t think this is the final budget.”

“I don’t think there’s anyone sitting up here that wants to raise taxes,” Donato said. “We have a lot of work to do as a council to finalize this budget.”

“It’s now in council’s hands,” Lucas said, adding that council can change anything in the plan before its final approval in December.

“I don’t feel it’s a good time to raise taxes,” Connelly said, noting that the sewer rates doubled this year, there’s 13 percent unemployment and a third of the city’s residents are retirees.

He also pointed out the trouble the city went through with the shift to rely more on wage tax revenue. Income so far has come in about 25 percent less than projected.

Messina said his vote was based on “the law of diminishing returns.” The city keeps raising taxes and more people can’t pay them so the city loses money.

He said officials need to be creative and find ways to stay “within their means” without burdening residents.

Connelly said he plans to “get more aggressive” in budget hearings. They are set for 6 p.m. Nov. 23 and Dec. 2.

“I’d like to see (the budget) with no tax increase at all,” Connelly said.

Because he had to put the spending plan together so early due to rules in the home rule charter, Lucas said firm figures were not available for some items. He said it’s possible that 1 mill of the proposed increase won’t be necessary, he said.

The budget reflects a 31 percent increase in health insurance premiums and a 21.5 percent increase in other insurance, Lucas said.

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