SHAMOKIN - The city's planned budget for 2012 appears balanced and sheds nearly $100,000 in expenses compared to 2011.
However, it also calls for a 1 mill increase to the recreation tax.
Revenue and expenses for 2012 are estimated in the budget - a budget that remains a work in progress until its adopted in its final form next month - at $2,525,352.01.
The budget estimates were presented Monday during council's regular monthly meeting. They're slated to meet at 6:30 p.m. Monday to vote on a tentative version.
Last week, estimated budget figures showed a deficit at nearly $375,000. But Treasurer Brenda Scandle explained by phone following Monday's meeting that a $363,940.19 line item for the Interfund Operating Transfer - a line item no one could fully explain during council's workshop last week - should never have been included.
Scandle said she didn't attend last week's workshop because councilman William Strausser said she wasn't needed.
"The line item should never have been in the budget. If I would have been asked to attend (last week's) budget meeting, it would have been explained," Scandle said.
Scandle said the line item zeroed out after adjustments were made in the city's accounting software involving contingency funding, transfers paid to the Shamokin Redevelopment Authority and a Tax Revenue Anticipation Note payment.
Expenses are estimated to be lowered next year in the treasurer's and city clerk's offices and the police and fire departments, but the major savings came from insurance adjustments.
Health insurance
The city's group health insurance figures alone are expected to be down more than $40,000 compared to last year while its insurance account - excluding benefits for union employees and the treasurer and code officer, which are in different accounts - should drop more than $72,000.
Additional savings, however, could be had if council were to vote to eliminate legislative health insurance that is available to, among others, city council and the mayor. Neither Mayor George Rozinskie Jr. nor Councilman Michael Snyder have insurance through the city. Councilman William Milbrand also said he'd be OK with losing the benefit. It's unclear if removal of this line item will be discussed further.
An expenditure added by City Clerk Steve Bartos is pay and benefits for a full-time secretary. The hourly wage for the position is $9.75 at 40 hours a week.
Bartos told council members the position is a necessity, allowing him to delineate some general work to the secretary and freeing up time for him to pursue greater and more detailed tasks.
Council is also considering approving 3 percent raises for the code officer, city clerk, treasurer, community development director and two non-union employees at the police department. Those raises were not included in the budget plan presented Monday, but Bartos said the figures easily could be had through transfers from the city's recreation fund, the same fund for which the 1 mill tax increase is sought.
If approved by city council, it would raise the recreation tax rate from two to three mills.
Solicitor H. Robert Mattis said after the meeting that the recreation tax is calculated as the real estate tax is calculated. Each mill equals $1 for every $1,000 of the assessed value of a resident's property.
Court petition planned
Whenever council adopts the first reading of a 2012 budget, whether it stays balanced depends on if a Northumberland County judge allows Shamokin to maintain its real estate tax at 30 mills, which is five mills above the 25 mill maximum allowed under the Third Class City Code.
That emergency tax exception was approved in 2008 and in each successive year after a report by the Pennsylvania Economy League found the city's shrinking tax base couldn't support its finances.
Mattis is expected to petition the court for the approval once a tentative budget is adopted.