While the public services part of Farrell's annual Community Development Block Grant application tends to be the smallest line item, it often is the most hotly debated subject.

This year is no exception.

The city will get $380,195 in federal money from the state.

Under CDBG rules, the city can spend 15 percent of the total -- about $57,000 -- on public services, which is given to outside agencies that perform services for city residents.

In a proposed CDBG budget, city officials suggested spending only $21,400 on public services.

But council members Monday said they want to consider revising the budget to allot more for public services.

The largest single chunk of the grant, $132,000 is designated for street improvements, and that is where council wants to look for extra public services money.

Not that streets don't need the work. The street department and consulting engineer Winslow Engineering Inc. came up with a list of streets and alleys that are in need of work. The cost: $252,000 for streets and $106,000 for alleys.

The rest of the grant is proposed to be used for code enforcement, $85,000; urban renewal, $100,000; and the cost of administering the grant, $55,000.

The urban renewal money is the last chunk of the city's match of a state $500,000 grant under the state's Capital Budget program, the same funds that helped build new stadiums in Pittsburgh and Philadelphia.

The city has banked $100,000 from last year's CDBG and $300,000 from the revolving loan fund. Before the city can draw down any state money, it has to spend its match, said Mayor William Morocco.

And while the state has already said Farrell will get the money, the city must file a heavily detailed application outlining how it will spent. City officials and consultant Graney, Grossman, Ray and Associates, Grove City have been working for more than a year on the plan, and are just about finished, said City Manager LaVon Saternow.

Terry Ray of the consulting firm said the last $100,000 is important to the application.

The basic plan is to buy properties in the northwest section of town, relocate families living there, demolish structures and move utility lines, all to make the area attractive for light industrial development, Mrs. Saternow said.

Mayor William Morocco said the only item council could consider reducing to increase the funding of public services was streets.

"Is it possible we can do one less alley?" said Councilwoman Helen Marenchin.

City officials had proposed spending the public service money this way: Shenango Valley Urban League, $7,000 for housing counseling and $5,000 for human relations investigations; Community Food Warehouse, $2,400; rodent control, $2,000; and Farrell Recreation Commission, $5,000.

That budget turns aside requests from Mercer County Regional Planning Commission for funding to improve the Chestnut Run Swim Beach, South Pymatuning Township, and provide transportation for city residents to the beach, $2,500; the Wheels to Work program to repair cars for donation to working people without transportation, $1,000; the Prince of Peace Center, Farrell, for family and emergency support, $10,000; and Mercer County Housing Coalition for emergency housing for city residents, $2,500.

"I know you're tight," said Sister Clare Beichner executive director of Prince of Peace and spokeswoman for the Wheels to Work and Mercer County Housing Coalition requests. "I know you're doing the best that you can."

Southwest Gardens Economic Development Corp. officials said they also will tender a request for CDBG funds, but didn't specify the amount or what it would be used for.

Council plans to adopt a final CDBG budget at 4 p.m. Feb. 11.