MOUNT CARMEL - The proposed 2014 budget for Mount Carmel Borough was passed Thursday night with no expected tax increases, but council members have to figure out how to fill an $81,000 hole by the next meeting Dec. 19.
Total projected revenue is $1,643,190, but the total expenditures are at $1,724,181, which leaves $80,991 to come up with in order to have a balanced budget.
These numbers are not final, said borough manager Edward T. Cuff III.
The pension cost for police is expected to increase between $214,000 and $375,000. The pension for non-uniformed employees is expected to increase between $25,000 and $56,000, President Tony Matulewicz said.
Also, health care costs are expected to increase by 12.5 percent from $143,830 to $161,778, he said.
These increases to the health and pension costs are not sustainable for the borough moving forward, Matulewicz said.
He's not quite sure how the borough is going to fill the budget hole yet.
Taxes have remained the same since 2007.
There are currently 32 1/4 mills imposed on borough taxpayers, which consists of 27 mills reserved for the general fund, 2 1/2 mills for street improvements, 2 1/2 mills reserved for street lights and 1/4-mill for the library.
The police budget is by far the costliest expenditure in the borough at $751,750 followed by group benefits at $187,315, insurance at $150,481 and the street department at $123,365.
In other business, the council members approved:
- A resolution creating a capital reserve fund for the Mount Carmel Municipal Authority for any monies in excess of $50,000 as per a 1995 agreement that was not being followed by the authority.
- The payment of $322,273.87 to Eastern Industries for road improvements, milling and resurfacing.