SHAMOKIN - City council and administration are working to erase a $375,000 shortfall for the 2012 budget.
Based on figures that remain very preliminary, the city's estimated revenue is $2,503,869.64 compared to estimated expenses of $2,879,504.27. That leaves $375,634.64 unaccounted for.
Council members met for a workshop Wednesday night to discuss potential budget cuts and the largest target could be a health insurance line item for city council members, the solicitor and controller.
By wiping that line item clean, the city could save an estimated $128,123.68.
While it's been well documented that Mayor George Rozinskie Jr. dropped his health coverage, it was unclear which council members received health coverage through the city.
Council is also looking into rent paid to the Shamokin Redevelopment Authority for its space at Mill Road Square, which houses the police and street department and city warehouse, along with Shamokin Emergency and Rescue Squad.
"We've never paid them rent," City Clerk Steve Bartos said, because council took over operation of the authority in 2007.
The rent was being offset as the city covered the authority's bills, Bartos said.
However, based on an audit performed by Klacik and Associates, beginning next year the city may be called to pay rent since the firm concluded the city and authority are now even on the arrangement.
In drawing up the preliminary budget numbers, approximately $61,000 was included for rent to be paid to the authority, along with another $48,000 identified by Klacik. However, Solicitor H. Robert Mattis said the figure reported by Klacik could be a duplication of what Bartos had already allotted, and Bartos said those figures would be fleshed out before council would vote on the first reading of a budget.
Council will also research a cut to the $363,940.19 in the Interfund Operating Transfer line item listed by Treasurer Brenda Scandle, who was not in attendance.
Bartos broke his foot Friday and has since had surgery. He explained he has not been in touch with Scandle concerning the line item and couldn't make council clear on what it was.
Reached after the meeting by telephone, Scandle said that much of the line item - while not having her budget information to refer to directly - is likely an estimated figure for the city's Tax Revenue Anticipation Note (TRAN).
The TRAN is taken by most municipalities annually regardless of their financial health to cover expenses after the new year until tax revenue is realized in March. It's a short-term note that must be repaid within the year it's intended for.
"Even if you are doing well, you don't have tax money coming in," she said.
Scandle said that figure could be adjusted based on the city's needs through January and February and into March. But if the line item is the TRAN - which she was almost sure that it is, offhand - Scandle said it couldn't be wiped clean completely.
The police department's budget stands at an estimated $1,160,537.87, which includes a 3 percent salary increase and an extra $23,000 toward money owed on three new vehicles.
And while the police budget alone accounts for more than 40 percent of the preliminary budget, it's unlikely to be reduced significantly, if at all, because of potential violations to the department's collective bargaining agreement with the city.
It's expected the treasurer's cell phone service would be cut. It's currently budgeted at $721.63 and Bartos said he'd research the contract to see if it could be dropped and at what cost, if any. Scandle said she had no qualms with losing the service.
Council will also explore the cost of having a full-time secretary at City Hall - a position that is already filled. Bartos budgeted that cost into city hall office services, with the rate at $9.25 an hour, but said it could be removed.
Other raises will also be explored as council prepares its budget.
Council will hold a special workshop concerning the budget following its regularly scheduled meeting to be held 7 p.m. Monday. A special meeting will be held at 6:30 p.m. Wednesday, at which time it's expected a first reading of the budget could be adopted.
Final adoption must be completed next month.