It seems residents of Farrell may go another year without a real estate tax increase, but city employees also may not see a pay increase.

On Monday, City Manager LaVon Saternow presented the 2004 proposed budget of $2,188,582.

The general fund budget is up only 5 percent, mainly due to increases of $39,000 for employee and retiree health insurance and $33,563 for the Southwest Mercer County Regional police assessment, Mrs. Saternow said.

She also stressed that the projected budget figures are only estimates because it's still early in the year, and the police commission has not passed a budget.

Health care costs per employee, per month are going to rise from $735 to $900, Mrs. Saternow said.

The budget does not include any salary increases. The city is negotiating with the Association of Federal, State, County and Municipal Employees Local 200, Mrs. Saternow said. Until an agreement is reached with the union, all salaries, wages and fringe benefits are going to remain the same as in 2003, she said.

The city has 20 full-time employees and 20 part-time employees. Five of those employees belong to the AFSCME union, Mrs. Saternow said.

This year, residents saw an increase in their sewer fees but the sewer fund is meeting costs, Mrs. Saternow said. In general, the 2003 budget is holding, despite the fact that the city got hit hard with things like snow removal costs, she said. Mrs. Saternow added that she increased the amount of overtime for the public works department in case of another bad winter.

A mill of taxes is $1 for every $1,000 in assessed property value; assessments are a property's 1970 market value.

A budget hearing is set for 6 p.m. Nov. 24.

You can e-mail Herald Staff Writer Kristen Garrett at
kgarrett@sharonherald.com