Please purchase a subscription to continue reading. If you have a subscription, please Log In.
Please log in, or sign up for a new account to continue reading.
Thank you for Reading! We hope that you continue to enjoy our free content.
Cloudy skies this morning will become partly cloudy this afternoon. High 53F. Winds WSW at 10 to 20 mph..
Partly cloudy early followed by cloudy skies overnight. A shower of rain or wet snow possible. Low 34F. Winds WSW at 10 to 15 mph.
Updated: October 17, 2022 @ 4:02 am
Observer-Reporter
Observer-Reporter
Observer-Reporter
Observer-Reporter
CHARLEROI – The borough’s 2021 audit presented to council Wednesday did not project a rosy financial picture for the end of the year.
“It looks like you are trending to end the year in a deficit position,” said Mark Turnley, certified public accountant.
The report came a week after borough Manager Matt Staniszewski said the borough could face a deficit as high as $1.1 million at the end of 2022.
Turnley told council the Government Finance Officers Association (GFOA) recommends that municipalities maintain an unassigned fund balance level of about two months of general fund expenditures.
Turnley said on average, two months of expenditures would equate to about $410,473, or about 19% of budgeted expenditures. On Dec. 31, 2021, the borough’s reported fund balance was $291,982, about 13% of the approved 2021 budget, which is below GFOA’s recommended level.
He said although it may appear there was a general fund balance of $291,982, $244,020 is restricted for certain uses, such as street lighting, debt service and pension.
Staniszewski said last week that the borough had already expended 91.5% of its allocated budget for the year, a number that should be closer to 70%.
Turnley also reviewed the borough’s finances through Aug. 31 and noted some expenditures to be “significantly overbudgeted” and could impact the borough’s available fund balance going into 2023. His report stated that spending in code enforcement engineering, maintenance of highways and bridges, public works supplies/tools and equipment and public works repairs exceed budgeted totals by $248,308.
Councilman Jerry Jericho, a member of the council that approved the 2021 spending plan, said the money was available at the time.
“Money was there when these things were approved,” he said. “I don’t know what happened between then and now.”
Councilman Larry Celaschi said Turnley’s report echoes Staniszewski’s at the Oct. 5 meeting.
“I highlighted this and pulled out what he presented,” Celaschi said. “This mirrors exactly what our borough manager presented last week. How did the prior council pass a deficit spending budget?”
Turnley said borough code does not allow an unbalanced budget to be passed.
“It is very possible that the actual budget that was passed was balanced,” Turnley said. “But the budget that was prepared was prepared in such a manner that line items were greatly overextended. I see that more often than not. What I see happens a lot is a balanced budget with some numbers inflated on the revenue side and deflated on the side of expenditures.”
Councilman Frank Paterra said the borough’s financial situation leaves council with a few options: a 6-mill tax increase, dismantling the borough or selling assets.
“None of them are real exciting, but we have to do something,” Paterra said. “I’m not raising taxes, and I’m sure the people do not want to dismantle the whole borough.”
Councilwoman Nancy Ellis, finance chairman, said last week the borough should look at entering into Act 47, the Financially Distressed Municipalities Act, a Pennsylvania statute outlining procedures to stabilize municipalities undergoing financial distress.
Ellis said Wednesday that she researched the matter and determined that Charleroi does not meet the criteria to qualify for Act 47.
Council has budget workshops planned for Oct. 17 and 24 at which Staniszewski plans to provide some options for council to consider.
He hopes to present a preliminary budget when council meets Nov. 9 and have a final 2023 spending plan on the agenda for Dec. 14.
{{description}}
Email notifications are only sent once a day, and only if there are new matching items.
Your comment has been submitted.
Reported
There was a problem reporting this.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article. See official rules here.
Please purchase a subscription to continue reading. If you have a subscription, please Log In.