Borough Council Vice-President Tyson Klukan reads from a prepared statement about why the 2016 budget and tax ordinance were recently altered. The previous Borough Council budgeted for a tax decrease and even the sitting-council members had a different overall funding plan before the Department of Community and Economic Development noticed an allocation error.
by Jonathan Weaver
After performing their due diligence as new council members, the new Ford City Borough majority adopted a new 2016 budget last night.
In December, the former Council passed an $8 million budget that increased more than a mill of reduced taxes.
However, last week, council members agreed to a modified budget that would keep tax rates at the same rate as they were last year.
Council Vice-President Tyson Klukan read a statement explaining a half-mill budget modification that affected both the pension fund and general fund.
“We set the millage at 1.0 per Borough Code, but we’re supposed to have it at .5 – that’s the maximum allotted amount,” Klukan said.
Klukan also read that the half-mill placed in the general fund will still be allocated toward pension obligations since those obligations still exist and need to be paid for appropriately.
“The modifications do not show a different expenditure, but rather the revenue coming from a different are in the overall financial picture,” the statement read.
A series of transfers to meet the pension obligations is imminent.
Council President Carol Fenyes said the error was discovered when Borough Secretary Lisa Bittner was preparing reports for the Department of Community and Economic Development (DCED).
“(DCED) brought it to her attention,” Fenyes said. “Which we are most-grateful that they did.”
DCED officials reportedly contacted Borough officials last week.
Former Councilman Jerry Miklos worked on this year’s budget during his last few months in office and was at last night’s meeting.
“My recollection was the pension fund was fully funded,” Miklos said.
Miklos’ allowed public comment period expired before Council was able to complete his questioning regarding the pension plan.
The Borough’s pension fund hasn’t been raised, but this is merely a different approach to showing taxpayers where the money is coming from, Borough Manager Eden Ratliff explained.
Ratliff said the previous Council came up with the one mill allocation was based on the total obligation and how previous obligations have trend in the past.
The revised budget has nothing to do with the Borough currently involved in DCED’s Early Intervention Program, Klukan said. The Early Intervention Program will help the Borough complete a five-year financial management plan to prevent Act 47 –the Municipal Financial Recovery Act which assists distressed communities after they meet one of about a dozen criteria including expenses exceeding revenues for three years, defaulting on loans or failing to meet their annual Minimum Municipal Obligation.
Both the revised budget and the tax ordinance were adopted 5-1, with Councilwoman Kathy Bartuccio opposed.
In other business, all six council members approved paying $7,000 for a used 2010 Ford Crown Victoria from Harmony Township Police – a 24/7 police department for a municipality that includes Ambridge (Beaver County).
That municipality, according to their website, has nine officers including six part-time patrolmen.
In the newly-adopted budget, council members budgeted $12,000 for a police vehicle.
The vehicle will be the Borough’s new-second police vehicle.
At last week’s public meeting, council members unanimously approved the purchase of a 2015 Ford Interceptor from Tri-Star of Blairsville.
The car was sold for more than $33,200 through the State cooperative purchasing program COSTARS.
Mayor Jeff Cogley said at the time that “the police department is in desperate need of a good dependable vehicle.”
The Ford Interceptor will be purchased utilizing four years of financing from S&T Bank.
Mayor Cogley said the new Ford will replace the white marked police car after the transmission failed.
Interim Police Chief Freel supported the need for an all-wheel drive vehicle due to working and mutual aid agreements with Kittanning Borough, Manor Township and North Buffalo Township police departments.
A deal to purchase two 2009 Dodge Chargers from Plum Borough for $5,000 “fell through.”
More information is to be released later this week. Both vehicles are expected to be in-service by the end of this week
Both current police cars are Ford Crown Victorias
Following the special meeting, council members held a closed executive session to discuss personnel issues.
Council members meet again for a business meeting at 6:30PM Monday at the Latin American Club on 3rd Avenue.
All six Ford City Borough Council members were present for last night’s special meeting.