Nov 10, 2018 3 min read

The current version of Washington’s 2019 proposed budget includes no tax increases, but that could change as officials grapple with a roughly $57,000 gap between anticipated revenue and costs heading into next year.

City council approved the first reading of the $14.2 million spending plan Thursday, laying the groundwork for the final vote expected Dec. 6. Officials anticipate some portions of the spending plan to change in the meantime as they put last-minute touches on the document.

“There will be changes made,” said Susie Koehler, deputy city finance officer. “I’ll tell you that right now.”

In their proposal, administrators expect the city to spend about $63,000 more than last year. Among the main cost increases projected for next year are a 2½-percent boost in pay for the fire department and a 70-cents-an-hour increase in salaries for unionized clerical workers.

Both raises are mandated by collective bargaining agreements approved in 2017. Other growing expenses, such as the cost of employee health care, also are part of the city’s contractual obligations.

The city is in contract negotiations with the unions representing police officers and public works employees.

“We try to stay within our means,” Koehler said.

The city also contends with “carry-over” from unanticipated expenses arising in previous years. One case Koehler cited stemmed from the 2017 pact with the firefighters’ union, when the city had to pay out $75,000 to cover a retroactive pay increase covering the year and a half when negotiations were ongoing.

Unusual for a Pennsylvania municipality, the city levies separate real estate taxes on land and buildings. To close an $800,000 deficit in this year’s budget, city council raised taxes by 1.5 mills, which translates into an additional $150 in taxes for every $100,000 in assessed value.

The rates this year are 34.21 mills on land and 3.58 mills on buildings.

Koehler said the budget proposal includes no changes to the city’s existing fee structure. She said a “small increase” in real estate taxes is possible, but “mayor and council will have to decide.”

Councilman Joe Manning, who oversees the city finance department, said officials have discussed a possible increase, “but even if there is, it will be very minor.”

He said some figures could change, noting the city still has outstanding tax bills that likely will come in at the end of the year.

“The goal is not to increase taxes, if it’s at all necessary,” Manning added. “By the same token, the city doesn’t work in a vacuum. … When costs go up, they go up for us, as well.”