Lebanon, Pa. - Lebanon's new mayor may inherit some big budget problems, but current mayor Trish Ward says don't blame her because the city's money troubles started years ago.

Ward said the city's ability to tax is somewhat similar to what it was in 1992, which won't pay the bills in 2009.

"I'm proud of what I've done for eight years. I think I've done a good job for the city and I'm willing to tackle this problem," Ward said. "Obviously, it would be easier for me to say 'take it from the reserves" like it's been done before and I'm gone, but I'm not going to do that."

Lebanon is facing a $3 million budget shortfall. Ward has proposed eliminating 18 city positions, a move that would affect nearly every department.

Mayor-elect Sherry Capello said on Election Day that all of this was news to her. She said the mess appeared to have been created overnight. "I think it's extremely disappointing because, I guess I'm wondering 'how did we get to that point so fast?' It seems like we're in emergency mode," she said.

Ward disagrees. "It's not recent. It's been going on for the last couple years," she said. "I mean, if you're aware of previous budgets, you know that they've taken money from the reserves to balance the budget."

Ward said raising taxes in Lebanon is not an option. "The home rule charter says that we cannot raise taxes. That went into effect in 1992, so to apply it to a common sense type situation, if you are making the same amount of money that you made in 1992 and you're paying 2009 bills, how are you going to do it?" she said.

There are several budget hearings planned. City Council will have to vote on the proposed budget and the public will have a chance to view it.

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