By Mary Spicer

Meadville Tribune

The City of Meadville’s proposed 2010 budget made its first appearance before members of city council Wednesday afternoon, but serious discussion won’t begin for another week.

Between now and Dec. 16, when council is expected to adopt the city’s final budget, either something has to give or city residents will be paying 22.29 mills in city property taxes, an increase of 1.37 mills over the current 20.92 mills.

One mill equals $1 for every $1,000 of a property’s assessed value.

A 1.37-mill increase would come out to an additional $34.25 for the owner of a residence with the city’s median assessed value of $25,000, upping the 2010 city property tax bill from $523 to $557.25.

Compared to 2008, when the owner of that “average” residence paid $485.50 in city property taxes, the proposed increase would mean an extra $71.75.

According to City Manager Joe Chriest, the proposed budget as presented is approximately $306,000 out of balance. With each mill generating approximately $143,000 in revenues, it would take a 2.14-mill increase to bring the budget into balance. However, the proposed increase was brought down to 1.37 mills by withdrawing $110,000 from the city’s rate stabilization account.

Established after the city sold its sewer system to Meadville Area Sewer Authority, the rate stabilization account maintains a balance of approximately $1.9 million. While interest earned each year from the fund is transferred to offset general fund expenses, the city can “borrow” from the fund’s principal to offset budgetary shortfalls. Funds “borrowed” in the past have been replaced as quickly as possible to keep the fund available for future use.

The $9.2 million in expenditures included in the 2010 budget represents a 1.3 percent increase over 2009.

According to Chriest, city staffers “have held the line on controllable increases in the proposed budget.” This includes eliminating two positions in the public works department by not replacing employees who retired.

Because the things left in the budget to cut are programs, “we would need to decide which programs or services would be eliminated” in order to fill the remaining $196,000 gap without instituting a tax increase.

The 1.37-mill increase was included in the proposed budget simply as “a starting point for discussion,” Chriest said.

Mary Spicer can be reached at 724-6370 or by e-mail at mspicer@meadvilletribune.com.