Category: News || By Jason Togyer

The city's 2012 budget cuts more than $1 million in spending while holding the line on taxes and fees.

At last week's meeting, council by 6-0 vote approved a $17.9 million budget. Councilman Darryl Segina was absent due to illness.

Last year's budget set spending at $19.5 million. The biggest decrease in the 2012 budget is the drop in the cost of the city's tax-anticipation note from $3.4 million to $1.9 million --- a savings of $1.5 million that practically cuts that expense in half.

This year's budget also anticipates a $275,000 increase in wage tax collections.

City Administrator Dennis Pittman has told council that the state-mandated switch to centralized wage tax collection --- authorized under Act 32 of 2008 --- should increase the city's receipts, provide a more reliable flow of wage tax income, and reduce the number of scofflaws.

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Community development spending will be cut about $81,000, to $362,000. Community Development Director Bethany Budd Bauer has cautioned council to expect deep cuts in the federal government's community development block grants during 2012.

The budget for property maintenance, meanwhile, has been increased by $175,000, to $1.25 million.

Last year's budget of $19.5 million also included the added expense of a $120,000 salary for former city Solicitor J. Jason Elash.

Elash was terminated Jan. 1 by Mayor Regis McLaughlin. After a standoff between council and McLaughlin that lasted several months, council appointed as solicitor the Plum Borough firm of Bruce Dice & Associates. Dice's firm is paid a retainer of $1,500 per month, plus $75 per hour. The law budget has been cut in 2012 by $70,000, to $114,000.

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Also last week, council by 6-0 vote approved a motion directing city officials to solicit bids for investing $14 million in U.S. Treasury securities and other bonds authorized by state law. The money is what remains of the sewerage authority's early payment of $24 million in debts owed to the city.

In addition, on a motion made by Councilman A.J. Tedesco Jr. and seconded by Councilwoman Loretta Diggs, council voted 6-0 to direct city officials to temporarily invest the $14 million in a money-market account until those bids are received and awarded. The money has been sitting in a non-interest bearing account since the deal with the Municipal Authority of the City of McKeesport was approved back in August.

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