It looks like no changes are coming to Penn Hills’ proposed spending plan for 2021 after the municipality held its first public hearing Nov. 16.

The proposed budget was published on the municipality’s website Oct. 29.

Manager Scott Andrejchak kicked off the hearing, which was held virtually, by presenting the $34 million budget’s highlights, which includes holding the line on property taxes, raises salaries from 2 to 3% and fills a $3 million gap with carryover funds.

Other highlights include divesting the municipality’s financial obligation in order to allow a third-party organization – namely, Eastern Area Adult Services – to take over staffing needs for senior services.

The move, which wouldn’t go into effect until July or August of 2021, would free up around $500,000 that had gone into paying salaries and benefits for those five full-time employees, who were since laid off.

Andrejchak used $3 million of 2019 carryover funds to balance this year’s budget. He’s proposed the same move again for 2021.

He justified the move this year because last year’s fund balance transfer remained largely untouched. In fact, Andrejchak expects a small surplus, around $15,000, in 2020’s fund balance. He said that’s the first time in seven years that has happened.

Another big item that will determine the municipality’s future spending habits is its refuse contract with Republic Services, which expires by the end of next year. Penn Hills Council raised property taxes in 2019 to help cover the bill.

He expects that refuse contract to continue to rise in cost to the municipality, possibly leading to another tax hike.

Penn Hills resident Betty Arenth said next year’s financial forecast looks better than she expected considering the covid-19 pandemic.

She recommended council request that Andrejchak provide them a quarterly financial report in the coming year to allow them to closely monitor the municipality’s financial health.

Andrejchak has said he expects most of the effects of the coronavirus pandemic to be felt in 2021. The largest projected losses in revenue next year – around $850,000 – include business, mercantile and real estate taxes.

Arenth also suggested providing residents a Q&A session during budget talks.

“There are some difficult things to understand in the budget and it would be helpful, maybe next year, to have a brief question-and-answer period for questions of clarification,” she said.

Her other recommendations included having council take a close look at the possibility of creating a “minor fire tax” to help pay for the service.

Arenth also encouraged council members to keep an eye on negotiations with Eastern Area Adult Services, the organization Andrejchak named as a possible entity to provide senior services.

“To see if it will actually save significant money over the next five years or if the initial third-party offer escalates rapidly in subsequent years after the initial honeymoon period,” she said.

Faith Milazzo, also of Penn Hills, said she would like to see code enforcement ramp up its efforts and that she would also like to see more parking tickets issued.

“It’s not going to make up millions of dollars but it just seems like in some cases that people think they can get away with things,” Milazzo said.

No other residents joined in on the budget discussion.

Councilman Jim Getsy, however, criticized the budget’s format, saying it is difficult to understand and decipher in areas. He also said he noticed several areas where line items increased anywhere from 10 to 264%.

“There’s probably a good explanation for these increases, but they were not in the budget message,” he said.

The municipality’s next public hearing regarding the 2021 budget is scheduled to begin at 7 p.m. on Nov. 23. The meeting will be held virtually and instructions to join will be found on Penn Hills’ website.

Residents who wish to speak during the meeting do not need to sign up beforehand.

Council will vote on the budget during their Dec. 21 meeting.

A copy of the 155-page spending plan can be viewed on Penn Hills website.

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