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A spending freeze and .14 mill property tax hike are among actions being taken.
WEST WYOMING — “West Wyoming is one step away from being declared a financially distressed borough,” Councilman Daniel Gadomski told residents who packed Monday night’s regular meeting.
In an attempt to reverse the course of events, several measures will be taken, including a spending freeze, said Gadomski. A tax increase of .14 mills will be added to next year’s budget. The increase will bring the current rate of 1.36 mills to 1.5 mills. A mill is a $1 tax for every $1,000 of assessed property value.
The increase equates to roughly 14 cents for every $1,000 of assessed property value.
All other service fees will remain the same for 2010.
Last month, longtime borough administrator Thomas Loftus was fired for allegedly mishandling the borough’s funds. A moment of silence prior to Monday’s meeting was observed in remembrance of Loftus, who died in his home Friday. Council made no other comment on Loftus’ passing. He was 57.
On Oct. 13, council was notified of the missing funds after a routine audit performed by the borough’s accounting firm, Carver & Associates, raised some red flags. The discrepancies occurred in 2007 and 2008.
The information was reported to the borough’s police department and is now in the hands of the District Attorney’s Office and the state police. Solicitor Linnell Lukesh said it is not known how much money was missing.
On the recommendation of Carver & Associates, the borough has secured the temporary services of Bookkeeping Associates to help the borough set up an accounting system. Gadomski said council would also advertise for a new borough treasurer.
The borough is in the process of enrolling in the state-sponsored Early Intervention Program, which will bring in experts to dissect the borough’s operations and provide recommendations. A grant is being sought to help pay for some of the consulting services of the program.
Gadomski said he was surprised that only four residents attended a public meeting held on Nov. 19 to discuss the proposed 2010 budget and the borough’s financial situation.
At that meeting, council voted to apply for a tax anticipation loan in the amount of $325,000 from PNC Bank. Those funds will be used to pay remaining bills, salaries and services through 2009, and must be paid back by the end of the year.
At the Nov. 19 meeting, council also voted to apply for an unfunded loan not to exceed $600,000 to pay back the $325,000 loan and another Tax Anticipation loan in the amount of $100,000, which is also due by the end of the year. The balance of the money will be used to secure the borough’s financial responsibilities through 2010.
Council voted to outsource the borough’s sewer billing to Wyoming Valley Sanitary Authority as of the first of the year. The authority will help ensure that all residents that have sewer services pay their bill, said Lukesh.
“We should see an increase in revenue and save on collecting bills,” she said.
Resident James Dennis asked why the borough doesn’t have a representative on the authority board. Lukesh said the borough and several other municipalities have fought to become members of the authority over the last few years, to no avail.
Councilman Geno Leoni said the authority would only accept “founding members” to be on the board.