Oil City budget gets tentative OK from council

Oil City Council gave its tentative stamp of approval to the city’s 2019 budget package at a meeting Thursday, but there could be a little more tweaking required before the plan is formally adopted.

Last month, council unveiled next year’s budget, pegged at $21,371,989, that included no increase in property taxes or fees but did include a slight increase in water, sewage, garbage and recycling bills.

Since then, the city received one report that could result in some savings.

“The preliminary numbers for workmen’s compensation (costs) looks like it will be a wash,” said city manager Mark Schroyer. “And, we will see a $15,000 savings.”

Still to be tabulated are city costs for property, liability, vehicular and related insurance coverages, he said. Those numbers have not yet been received by the city.

“We budgeted a 10 percent increase, but I think we’ll come out OK,” said Schroyer.

The budget calls for the property tax levy to remain at 11.92 mills, a figure that translates into a tax bill of $11.92 for each $10,000 in assessed valuation for a taxable property.

The Act 511 taxes, including a per capita tax, realty transfer tax and other smaller taxes, remain intact for 2019. Business license fees also remain the same for next year.

The final 2019 budget will be adopted by council at its next meeting on Thursday.

One fee that may be changed next year is the cost charged for a zoning hearing. Schroyer said the current $200 fee doesn’t cover “the $600 to $700 cost” for advertising, a solicitor and a stenographer.

Noting the city may begin requiring a higher fee plus a deposit prior to the hearing, Schroyer told council, “We’re getting crushed on this.”

Tax note approved

Council approved a tax anticipation note with First United National (FUN) Bank at an interest rate of 2.65 percent.

The note is for $500,000 and is used to provide a “cash flow” to the city prior to receiving property tax payments. Typically, the city pays off the note after only a few months and incurs a small interest rate charge, said Schroyer.

EMS changes

City fire chief Mark Hicks was appointed as the city’s emergency management services coordinator to replace Steve Hinds, who resigned the post. Hinds, who retired in March 2017 as city fire chief after nearly 30 years in the department, has served in the coordinator’s post since 2017.

Councilman Dale Massie said the city needs to explore changing the traffic flow for vehicles turning off Seneca Street and onto Center Street.

He said a curb extends too far into the three-lane street and the narrowness has caused accidents. Schroyer said he would look into the traffic flow issue.