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By STEVEN DU BOIS; Times Leader Staff Writer
Wednesday, November 26, 1997 Page: 3A
NANTICOKE- City Council members are supposed to approve their first reading
of the 1998 budget by the end of the month, but they can’t read what they
don’t have.
Despite serious financial woes, and a warning this week from a Luzerne
County judge to cut wasteful spending, the council has not tossed around any
numbers.
“I don’t think so, not yet,” said Mayor Wasil Kobela, who is finishing his
first and last term. “But until I find out what’s going on I can’t really
say.”
Even if a budget had been worked on, Kobela said the lack of a quorum at
recent council meetings would make its passage difficult.
“It’s hard to put together a budget when no one shows up,” Kobela said.
On Monday, the city received permission from Luzerne County Court of Common
Pleas Judge Mark Ciavarella to borrow $1 million to keep the city from
shutting down. It will be the third time in four years that Nanticoke has
borrowed money to offset a budget deficit.
To pay off the loan in 10 years, Councilman Walter Januszewski Jr. said
property taxes will have to increase 14 mills next year.
Though he ruled on the city’s behalf, Ciavarella warned the city to cut its
budget and improve its bookkeeping.
Councilman Joseph Mikolinis said the bookkeeping has been a disaster since
administrator Paul Keating left for a similar position in Kingston.
“I haven’t seen any numbers since Paul Keating left in April; I’m peed off
over that,” said Mikolinis, the councilman in charge of streets, sewers and
garbage. “If we were voting on a budget, I wouldn’t pass it because I haven’t
seen any numbers.”
Mikolinis said he also might not get to vote on the budget because he is
about to undergo an operation.
Councilmen Ben Grevera and Walter Januszewski could not be reached Tuesday
and Councilman John Bushko was unavailable for comment.
Financial Coordinator Donna Wall said council is supposed to have the first
reading of the budget finished by the end of the month. Council members have
to give the spending plan their final approval by the end of the year.
Mayor-elect John Toole and Councilman-elect Brian Gorski said they have
asked to be present at all budget discussions, but they have not heard when
they will be held.
The $2.7 million budget for 1997 was by all accounts a failure. The city
ran out of out money by the start of the July, and has $400,000 in unpaid
bills.
According to records, out of $2.7 million in expected revenue, the city has
collected $2.5 million.
It’s unclear how much the city has spent.
“I’ve heard the same things you have, that department heads have been
spending money the city doesn’t have, and even going into other departments’
money,” said Gorski when asked what needs to be cut from the 1998 budget.
He said some of those problems would be resolved if council would hire a
new city administrator who could oversee and approve all spending.
“We haven’t discussed a specific person, but we are all in agreement that a
full-time administrator is necessary.”
Gorski said the city also needs to stop its practice of using next year’s
garbage fees to pay part of the current year’s expenses.
“If we have to use 1998 money to pay 1997 expenses, we can’t put the money
in the next operating plan,” Gorski said.
Toole, who will become mayor in January, wouldn’t identify specific cuts he
wants. He did say that an accounting firm is going to perform an extensive
review of the city books, and everything will be fair game.
Toole, who argued against the loan and tax hike, said two banks refused to
lend the city $1 million.
“Everyone I talk to says they feel sorry for me, but we’ll get out of it,”
Toole said.