Mt. Lebanon Municipal Manager Stephen Feller presented his recommended 2010 budget this week, calling it a "bare bones, conservative proposal that reflects the difficult times we are in."

The total budget for all funds is $43.7 million, and the recommended general fund budget is $30.4 million, which is a 1.4 percent increase from the 2009 operating budget. The budgets for all funds are balanced using a combination of ongoing revenues and available reserves.

An important point, Mr. Feller said, is that the recommended budget does not propose to increase the property tax rate, earned income tax rate or deed transfer tax rate.

Compared to the 2009 budget, the real estate tax revenue is expected to decrease 1.5 percent, the earned income tax revenue is estimated to increase 1.5 percent and the deed transfer tax revenue is estimated to decrease by 11.5 percent.

The budget proposes that the municipality maintain the number of full-time employees at 141, as cuts would affect service levels.

To compensate for rising pension and health insurance costs and flat revenues, Mr. Feller proposed allocating some of the municipality's undesignated fund balance.

"The use of these funds will allow us to maintain the same level of municipal services during this extraordinary economic period," he said.

Employer pension costs have increased 64 percent and employee health insurance costs are budgeted to increase 12 percent compared to last year.

The recommended budget will still maintain an undesignated fund balance of almost 9 percent, which falls within acceptable levels recommended by rating agency and industry practices.

The recent purchase of the Covenant at South Hills by Concordia Lutheran Ministries means that Covenant's outstanding real estate obligation of approximately $501,700 in real estate taxes, penalty and interest will be paid at settlement, bringing the undesignated fund balance to a level above 10 percent.

The budget is again proposing that the municipality borrow $4.1 million for swim center improvements and $1 million for athletic field improvements.

The recommended budget also includes $3 million for sanitary sewer improvements.

A public hearing on the budget will be held at 8 p.m. Monday in the Municipal Building on Washington Road, and the commission is expected to vote on the budget Dec. 14.

The full budget proposal is available at www.mtlebanon.org and at the Municipal Building and Library.

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