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City mulling hefty tax increase
Staff writer
ttjohnso@observer-reporter.com
Property owners in the city of Washington will have to squeeze their personal finances even tighter if the tentative 2009 budget city council presented Monday is adopted Dec. 18.
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After attempting to cut expenses and increase revenues, council members turned to a tax increase to balance the budget.
"Do we like any of it? No," said Mayor Sonny Spossey after the first reading of the proposed budget. "I have to pay it, too," Spossey said with a slight shake of his head.
Spossey attributed the increase in taxes to rising health-care costs and contract and pension obligations.
Council also voted to increase the earned income tax to 1.15 percent, effective Jan. 1. This, Spossey said, will generate $180,000 to $190,000. However, the money is only permitted to be used to fund the pensions. With investment income dropping, the city must continue to fund employee pensions with a substantial balloon payment due in 2010. After the city floated a $10 million bond issue a few years ago, Councilwoman Virginia Ullom, director of the city's department of accounts and finance, said the investment rose to $24 million. However, recent losses reduced the investment to $16 million.
The city has attempted to reduce costs over the past few years. The treasurer's office has three employees, down from a high of seven. The street department operates with eight employees, down from 12 a few years ago.
Facing a huge increase in health-care premiums through the current medical carrier, Highmark, council voted Monday to switch providers to HealthAmerica to save about $52,000 in premium increases.
Not everyone is happy, even with the savings.
Councilman Tom Blackhurst was the only council member to vote against the switch. His reason, he said later, was that the new carrier requires employees to submit bills to a third party, which reimburses the employee, who then pays the medical provider.
Before the vote, Blackhurst said, "Often, you get what you pay for." He said the new policy "places an extra burden on the employee."
The city provides free health care, minus co-pays, to all eligible employees and council members.
Council also voted to switch its life insurance carrier to Hartford Insurance to save the city between $8,000 and $11,000 annually for comparable coverage.
No vote is required for the first reading of the budget. However, Councilman Matt Staniszewski indicated he does not approve of the tax increase.
"This budget is in a shambles now," he said.
Ullom immediately responded, "You should know," referring to the 2007 budget shortfall - when Staniszewski was director of accounts and finance - that required council to receive court approval for a $2 million, 10-year bond issue to pay bills to the end of the year.
When Ullom and Staniszewski began to hurl accusations, Spossey pounded the gavel and shouted, "Enough."
Staniszewski wants to cut expenditures but says dealing with other council members is "like talking to a brick wall."
Spossey replied that Staniszewski does nothing but talk and fails to offer suggestions.
When Staniszewski accused Spossey of not valuing his opinions, Spossey replied, "I do (value your opinions), and that's the sad thing. It's your demeanor. Your interest is Matt Staniszewski. Your interest is in politicking for next year."
Staniszewski is up for re-election in the spring.
"What are you talking about?" Staniszewski said sarcastically as he stood in the mayor's office following the meeting. "You've been a lifetime politician."
"You're all politics," Spossey shouted.
With that, Staniszewski left the room.
Council will be holding several budget meetings in an attempt to reduce the increase before the final form is adopted at noon Dec. 18.
More Taxes?? : 11/25/2008
Why is it Staniszewski continues to get attacked for doing the will of the people? I was at the meeting yesterday and he was the only individual to VOTE AGAIN RAISING our earned income tax. Meanwhile, Ullom acts like her and Spossey aren't the true cause of this financial mess.
More Taxes Typo : 11/25/2008
Staniszewski was the only one to vote against raising our earned income tax.
Non Resident : 11/25/2008
I don't even live in the city and now they're raising my taxes to help pay for employee benefits and retirement? What's next with some of those politicians? Are they that far lost in the connection with the times? Don't they know you can't squeeze blood from a rock?
taxes : 11/25/2008
NON RESIDENT - If you don't live in the city then it does not affect you at all. Earned income tax is paid to the municipality that you live in not work in. So you have no place to complain. Last year with the 30 mill increase my taxes went up $300 just on my land for the year, now I am going to have to come up with another $120+ next year. They just need to cut services, especially the police, half of them are lazy and complain about having to do what they are paid to do, so if they dont want to do what the get paid well to do, then get rid of them. If you don't belive me, listen to the scanner, and how they talk on the radio, it is like it is a chore to answer a call.
Land Value Tax : 11/25/2008
I am happy that most of the increase is on land. If it were not, indivudal taxes for homeowners would go up dramatically.
re land value tax : 11/25/2008
You're saying that you actually like paying more in taxes for below average service? Joshua - taxes have already gone up dramatically for us homeowners to pay for the city worker's generous benefits. Where's the service? All Spossey knows is tax, tax, tax. Where's the change? Then, on the flipside, you have Matt S at city hall who proposes a differing viewpoint and gets chastised for it. What kind of dictatorship do we live in where a council man can't even talk?
Not Fair : 11/25/2008
The tax should be equally spread on building and land. Why do the commercial businesses have to balance the city’s budget? The commercial businesses were discriminated against in 2008 and now 2009. Spread the debt around. This theory of increased land tax is not bringing new businesses into the CITY……
Health Care : 11/25/2008
It does not seem very fair that most of the people in the city pay something for health care but city employees don't have to. I guess councilman Blackhurst is not looking at saving money on health care. It's just as easy to raise taxes then his buddies in the fire dept. will not be mad at him.
City mulling hefty tax increase : 11/25/2008
City mulling hefty tax increase
taxes : 11/25/2008
raising tax
taxes : 11/25/2008
It seems that the poster complaining just about the police really has know idea of what he is talking about. I do listen to the police scanner. I constantly hear them responding to shooting calls, fight calls and domestic abuse calls. It's no wonder they do not sound so full of glee to respond to such calls. Why don't you the complainer go instead. The fire department seems to be much more of a drain on the city's money than anyone else. They seldom have any calls. They work 24 hours in a shift to mostly stand around the station. On warm evenings, I see them standing outside the station just standing around, shooting the bull. Not to mention, if you check, the fire department is Way over budget. Why can't the city use some volunteer firefighters. It seems for some reason, a very large amont of firefighters retired just after 20 years of service. That would have been a great time to put in place the volunteers. Instead they hired a new, large group of fireman that are killing the budget.
Taxes : 11/25/2008
The current Board does not have the average taxpayers interest at heart. Mayor Spossey has a condo in Las Vagas, Councilperson Ullom dirves around in her Cadillac, Councilperson Faust smokes expensive cigars and plays golf at a private club, Councilperson Blackhearst retired from the City Fire Department at a 90% pension+benefits when it should have been 50%, Staniszewski doesn't own property in the City, but votes against tax raises. You decide.
higher tax's : 11/25/2008
Maybe the city should look into hiring part-time officer's. You'd save some $$$ there Spossey. As for tax's, I live in the city, I own two homes in the city. I can't afford to pay for someone elses screw-ups. It's not fair what-so-ever. This economy is going to down the tubes if anyone(city council) hasn't noticed. I just shouldn't have to pay. Really none of us should. Save some $$$, keep some full-timer's on the police and fire depts. But hire a bunch of part-timers. You'll save a crap load of $$$. Isn't that what you want Mr. Spossey. I'm to the point that I just can't stand this damn city any longer.
Tax : 11/25/2008
To be fair, taxes are going up every place around Washington. It's not just the City
H.T. City : 11/25/2008
Sounds like your actually one of the biggest problems the city has. Your statement says it all(houses) I hope you keep all your "houses" up so the neighborhood looks nice. I hope your not one of tha landlords that rent to the drug dealers. Are your "houses" rented through HUD? I think the City should tax all the landlors apartments. It seems like the landlords want the money but no responsibility of the people at the property. I also think the City should pass an ordinance that bans further single family dwellings into apartments and recovery houses. Good luck with all your "houses"
taxes : 11/25/2008
There is no reason to keep putting the blame on ANY city department. Residents must realize that no department has added employees or increased their budget in recent years. Some reasoning that the city is in continued finacial distress might be the lack of tax payers. The more and more low income housing the city takes on the less taxes the city sees. The bigger W&J and Washington Hospital get the less taxes the city sees. Does W&J pay anything in lue of taxes? How about the hospital? We residents need to support the city as much as we can. The only way to make the city what it once was is to have the support of current residents.
Tax for Benefits? : 11/25/2008
How selfish can Blackhuerst be? He retires making more money than when he worked. Now he wants to raise my taxes again and he wants to cut the employees and his fire department buddies a break in their inconvenience to responsibly send in a piece of paper to pay the health care bills? Is that all they have to do? Free health care on my dime and they complain about sending in a piece of paper? Blackhuerst better get his priorities right. Oh wait, he did. Blackhuerst retired with a huge pension and continues to want more of my dimes.
TAXES : 11/25/2008
To the person responding to my post about the police complaining about answering calls, and being lazy, I also do live in this city, I do agree that something also needs done with the city fire department. Something also needs to be done with the public works department. I do not know how much the public works department workers make, but I do know that I remember hearing on the scanner last winter that the police requested that the road department come out and start treating the roads, and when the 911 dispatcher made the call, that person was told by whom ever was called that they were not coming out until their scheduled shift starts. If I remember right it was about 3AM when the request was put in. The roads were horrible at that point, just imagine how they were at 5 or 6 AM untreated when people attempted to leave for work. And there was still 1 or 2 hours till they were coming out. My city taxes right now are $550 per year land & property, which is $300 higher than the prior year, now it is going to go up at least $120 more, so my property taxes for just the city are going to be almost $700 per year. What am I getting for $700 per year, absolutley nothing except for the same services that sucked in the first place. Another thing that I think that needs done, is the state needs to step in and control how much land a non-profit can hold in a single municipality. As I am sure you are aware, non-profits do not pay taxes to the city, the 2 biggest offenders are the college and the hospital. They keep buying land that is on the tax rolls and once in their name it is no longer taxable. I believe that the college makes some sort of donation to the city at times, but what they give is no where near what the land value would be. They need to step up and start helping out this city, since they are a major source of the financial problems in this city. I don't know what else to say, other than I cant wait for the market to get better, because the second things start to turn around I will be selling my house and getting out of this town. One more comment, Police & Fire services need to be merged together in this area. There are 4 municipalities that make up Washington, there is no need to have seperate agencies for all 4 municipalities. Why not just 1 Washington area police department, and a Washington Fire Department that consists of the paid and volunteer people already in place. I believe alot of money could be saved by doing so. This is just my opinion, and you may not agree, but I believe that there have been studies done in the past that have recommended this but it was ignored by all agencies in the area.
Angry About Once Was and What We Could Be! : 11/25/2008
Look folks we don't need a throw the "baby out with the bath water" apporach to governing. Yes times are bad, everyone has to tighten their belts, but talking about cut services is stupid. All departments are operating at bare or below minimum. Those talking about cutting the police and fire departments in half should move to somewhere were you get nothing for nothing. No police protection, just waiting on a state trooper to respond from who knowns where or an unstaffed fire department that can't guarantee a immediate response. I'm not pleased about paying more taxes, but I'm not going to pay taxes and get lesser or no services. The city fire department has staffing has be belowm national minimum for decades, you can't go any lower. The police are so short staff that the need the assistances of outside help almost daily. Instead of all the bickering down a city hall, or the whinning by citizens how about some folks being proactive for once and not just reactive. How about council looking at ways to improve the tax base by getting new resident and businesses in the city instead of watching everything go out of town. Maybe city instead of council looking at old solutions could do a little fact finding and look at other communities (especially outside PA) to see how they turned their situations around. It ashame that an historical city like Washington couldn't see the hand written on the wall decades ago when other PA towns were going down the toliet. Instead we just did nothing and waited a few decades to go down the very same toliet.
A little info, a little truth : 11/25/2008
Here's a clue for those talking about volunteers for the fire department. The fire department to provide the current level of service, which includes a quick and competent response would still require the same number of full-time personnel that the city has now. Adding volunteers dosn't address the response componet of the fire department. I'm not paying taxes to have the fire department show up to my house or my neighbors house in 10-15 minutes. I want the fire department there sooner then later, I want the fire department there in the early stages of a fire when they can make a difference to the outcome. I live in the city for the services, full-time police, fire and street department. I'm not going to pay city taxes to get less service. And were is the city going to get these volunteers to staff the stations? You may have missed it but there is a big problem locally and nationally with dwindling number of qualified volunteer firefighters. Peters, North Strabane, South Strabane have added or have moved towards more full-time firefighters. The other towns without full-time personnel have been playing Russian roulette with there response times. I would rather go past a city fire station and see firefighters there ready to respond in seconds then travel past empty fire stations and wonder how long the fire department will take to respond.
Responses : 11/26/2008
These must be posted by Blackhuerst or his band of merry men at the fire station since they have nothing better to do while the police department is responding to real emergencies. What else do the fire men do up there? Plan for Joe Manning's run for Mayor when Spossey exits? Great, we'll have 3 firemen running the city then. Say goodbye to the police and street departments. All the fire department cares about is themselves and their enormous pensions. Manning, Blackhuerst and Dubena, the three amigos taking care of thier buddies.
Taxes : 11/26/2008
To the person responding to my response about the police department. I think you just hit the nail on the head. If you could join fire departments and the police forces, everyone would be better off. But cutting the number down would not work at all. The City's crime is like that of Pittsburgh. The townships cover a large area. Cutting the numbers when having such a large combined area with a now larger crime rate would not be effective. The amount of manpower would have to stay pretty close to where it is. On the positive, everyone would share the combined resources. Also, experienced emergency responders are better at handling a serious, violent emergency than a part-timer. It's just experience, nothing personal. The firedepartments would share the biggest advantage, They could cut cost, and still be efficient by shedding the city sub station and moving those resources to a near by township. You would still have a major city unit and a other supporting sub stations in the townships. All if needed could respond to any situation in and around the city if needed, quite quickly. I know the answer is right in front of our faces. We all just need to accept them. If we jointed forces, we would have a large, well trained and experienced group of responders.
