Farrell presents preliminary city budget; no tax increase

Oct. 26—FARRELL — The city of Farrell's proposed 2023 budget includes no property tax increase.

City Manager Ben Prescott presented the preliminary budget at Farrell's city council meeting Monday, along with a budget letter.

City council decided to hold special budget meetings to discuss it, but did not specify dates.

For 2023, Prescott presented a proposed budget of $3,345,000 that holds property tax rate at 32.17 mills. If passed, this would mark the second consecutive year without a tax increase for Farrell.

The city increased property taxes by 4.5 mills in 2021, after a year when revenues were impacted by COVID and a strike at the NLMK Pennsylvania steel mill, a major source of wage and property taxes for the city.

The owner with a property with an assessed value of $13,500, the city's approximate average, would have a city tax bill of $434.40. Properties in Mercer County are assessed at 1970 values, the last time the county re-assessed properties.

The city also levies a wage tax of 2% for residents and 1% for non-residents working in Farrell and a $52 local services tax for all wage-earners employed in Farrell. None of those taxes would change.

Prescott said that the main drivers of the increase in proposed expenditures are inflation, and payroll and benefit costs.

The Strategic Planning and Economic Development committee is the city's main driving force for economic advancement, Prescott said.

"SPED also is the city's main marketing venue and looks to promote the city both from an economic and development basis," Prescott said. "Part of the SPED focus is the recreational and community activities for the city."

Current goals for SPED funds raised are the city library and the city match on Idaho Street.

Last year's budget saw an increase in revenues due to federal American Rescue Plan funds for 2021 and 2022.

The city put the funds to use.

In 2021, the police department replaced cruisers for $101,174. In 2021, the fire department replaced a vehicle for $19,000 with a 50% split with volunteer funds, and in 2022 the fire department's annual payment for a new fire engine was paid for $48,252.

The city is also looking forward to being awarded grants including the Strategic Management Planning Program grant and the Commonwealth Financing Authority grant.

Phase two of the STMP grant was approved for $190,000, with a 10% match from the city. The funds are allocated for a technology upgrade for $123,000, codification of city ordinances, current review and update of city personnel and policies, current review of the city administrative code, and initial review of the Home Rule Charter.

The city requested $600,000 for the CFA grant, scheduled for release in November. The funds will be used for a street sweeper for $300,000, and city roof repair for $300,000.

The city plans to advertise public notices for scheduled 2023 budget meetings.

Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com

Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com