OIL CITY, Pa. (EYT) — A budget of just over $21.3 million was formally passed by the Oil City Council at its meeting Thursday, Dec. 13.
The $21,321,873.00 budget includes no property tax increase for 2019 and is slightly less than the original budget first read in November because of a saving of approximately $15,000.00 on workman’s compensation insurance when the city had originally budgeted for a 10 percent increase.
“I’m very pleased with the budget,” City Manager Mark Schroyer said. “It’s a good, reasonable, realistic budget with no property tax increase.”
The budget breaks down as follows with revenues and expenditures balancing in each area:
Schroyer called the budget a “solid spending plan” with a “robust” paving program. He also mentioned the city is ready to bid out the water-crossing project.
“Everything came together,” Schroyer said.
While Schroyer was happy with the 2019 budget, which he credited to the hard work of the department heads, he cautioned that the 2020 budget might not be as easy to complete.
Schroyer is especially worried about the city’s revenue sources either being flat or in decline.
“It’s easy to put together a budget when the numbers are there,” Schroyer said. “I think next year, it could me more difficult.”
Some of the council members said they believed Schroyer would do a good job and that he was just trying to prepare them for the worst-case scenario.
“My concern is the revenue,” Schroyer said. “We are going to have to take a hard look at that.”
Councilman Ron Gustafson said he hopes some of the things the city is undertaking will help the revenue issue grow with increased businesses and population.
Taxes in the City were set as follows:
The millage tax was also set at 11.92 mills ($11.92.00 upon each $1,000.00). The breakdown of the millage tax is as follows:
SOME INSURANCE COSTS GOING UP
While the workman’s compensation insurance was reduced, it wasn’t all good news on the insurance front for the City.
According to Schroyer, the city is facing a 9.5 percent increase in some other insurance costs including vehicle liability insurance, public property insurance, professional liability insurance and plant and equipment insurance.
These increases weren’t unexpected, however, according to Schroyer.
“We budgeted for a 10 percent increase,” Schroyer said.
Schroyer was disappointed that those insurances wee rising, especially considering the City had reduced the number of claims it had filed. But he pointed to the fact the City changed insurance carriers three years ago as the possible primary reason for the increase.
“We switched to a new company three years ago,” Schroyer said. “There was a rate-stabilization for three years, and I think they are trying to make up for some of that in the fourth year. When you look at 9.5 percent over three years, that isn’t bad.”
CITY RECEIVES MONEY FROM PNA CLUB
Howard Faunce reported that the City had received a donation of $3,043.00 from the Polish National Alliance (PNA) Club for use by the water and public works departments.
Faunce said the money will be used to buy a number of pieces of equipment including a portable, electric cement mixer, a couple of ½ inch impact wrenches, a portable circular saw and some barricades the City can use during festivals and other events.
Faunce as well as members of the council thanked the PNA for its continued support of the City. The donation is just another in a long-line of donations from the PNA to Oil City over the years.
BOOM PUT IN PLACE ACROSS RIVER
An ice boom was put in place across the Allegheny River Thursday, Dec. 13.
According to fire chief Mark Hicks, the boom placement went smoothly and only took about an hour-and-a-half.
“It went as fast as I think it has ever gone,” Hick said.
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