Leechburg approves $1.78 million budget with no tax increase

Dec. 18--Leechburg's 2014 budget will hold property taxes steady at 15.32 mills.

Council on Tuesday approved the $1.78 million spending plan, which marks a 5 percent increase from the current year's $1.69 million budget.

Accounting for the majority of the additional spending are changes in the borough's insurance package and a $64,000 jump in its sewage fund, which totals $616,000.

Councilman Tom Foster said the sewer fund was augmented in preparation for unforeseen expenses in the borough's sewer-separation project.

Council couldn't provide an estimate on when Senate Engineering will begin work next year on the project. The company is still applying for work permits required by the state Department of Environmental Protection.

The $64,000 increase will be paid for with the current year's surplus and won't require council to raise sewer user fees, according to Foster.

Other major service fees, such as garbage pickup and fire protection, will hold steady through next year, too.

No borough jobs or services will be cut or added next year, but the police department's 10 part-time officers will receive a pay raise.

The officers will receive a 5-cent-per-hour raise to boost their pay to $14 an hour effective Jan. 1. New hires after that date will start at $8 an hour for the first 20 days. Their pay will then increase to $13 an hour for the next 1,000 hours and $14 an hour after that.

Workers' compensation

Local fire company reconfigurations and changes in state law will potentially cost the borough $32,000 in 2014 insurance costs.

Council accepted Jerich Insurance Agency's$57,000 policy on Tuesday, but may see those costs reduced.

The rise stems from Lower Kiski Emergency Services' absorption this year of the Markle Volunteer Fire Company in Allegheny Township.

Because the volunteer fire company is now operated by the Leechburg-based Lower Kiski Emergency Services, the borough is obligated to provide workers' compensation to Markle's firefighters, in addition to the Leechburg Volunteer Fire Department's, according to Jerich insurance agent Connie Jerich.

The borough's expenses are exacerbated by recent state legislation that recognizes every form of cancer found in a firefighter -- professional or volunteer -- as a work-related illness. The onus falls on the borough to prove otherwise.

The law, dubbed the Firefighters Cancer Presumption Act, has caused premiums to skyrocket and insurers across the state to drop policies with fire companies, according to Jerich.

Council is hoping to prove that Markle's firefighters are insured elsewhere, namely Allegheny Township. If it does, Leechburg will no longer have to provide workers' compensation to the firefighters, according to Jerich.

Workers' compensation for both fire companies accounts for $37,000 of the total insurance package. The borough's 2013 insurance package, which does not include Markle, totals $24,600.

A $100,000 tax anticipation loan that council accepted Tuesday will help the borough sustain costs such as the workers' compensation.

The First Commonwealth Bank loan carries a 1.6 percent interest rate. Councilman Dan Logero expects the loan to be paid off by June.

"We do it every year," he said. "It's a way to cover our expenses before we start collecting tax revenues in the spring."

Braden Ashe is a staff writer for Trib Total Media. He can be reached at 724-226-4673 or [email protected].

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