City Council rejects $2.05 trust fund transfer

Layoff could loom without action; meeting breaks up with acrimonious exchange on Public Works

By Mike McGann, Editor, The Times

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New Coatesville Police Officer Jared Davis (center) takes the oath of office from District Justic Grover Koons, as city Police Chief Jack Lauffer looks on. The new officers, an updated city Comprehensive Plan, and an improved audit report were upbeat moments in the City Council meeting that ultimately turned testy.

COATESVILLE — The City Council meeting started Monday night with what seemed to be good news on progress, approval of a revised Comprehensive Plan, two new city police officers taking the oath of office and an audit report showing that the city finally seems to have a firm handle on what money is being generated and spent.

But — in what appears to be a stark departure from the fairly calm gatherings of late — the meeting grew gradually more testy, as council voted 4-3 to reverse earlier votes to use some $2.05 million of the city’s trust fund to pay for city operations, before finally dissolving as a near screaming match broke out between a City Council member and the city’s Director of Public Works.

The budget vote put in doubt the ability of the city to pay workers as the year continues — although City Council can revisit the vote again at a later meeting. If nothing happens, the city could be looking at large-scale layoffs before year’s end.

“We will have to address this in some fashion,” the city’s Finance Director, John Macarelli said.

Council member Edward Simpson initially questioned when he an his colleagues had voted to use some of the city’s remaining $7.5 million in the trust fund created when the city sold its water and sewer system in 2000. That fund — which technically can only be borrowed from in case of emergency — started at $37 million and would fall below $5.5 million if the transfer were approved.

Council initially approved the transfer in the final December budget approval in lieu of an even bigger tax hike — at that point City Manager Kirby Hudson said it was clear that expenses for 2014 would outpace revenue. Additionally, another $250,000 was authorized for expenditures on revitalization projects.

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Officer Ryan Corcorran (center) takes the oath of office from District Justice grover Koons, as Chief of Police Jack Lauffer looks on.

Simpson, though, argued that he felt that the city needed to cut spending, noting that it always seems the issue will be addressed “next year.” He said there were areas where immediate cuts could be made — some $600,000 in part-time fire fighters, by revitalizing the city’s volunteer firefighting corps.

Still, even with that cut, and as more than one official noted, eliminating the entire administration — the city would still be looking at a deficit.

“You can’t cut your way out of this,” Hudson said, echoing earlier comments from Council President Joseph Hamrick and Vice President David Collins that with the city losing approximately $1.4 million per year in real estate taxes, as properties are reassessed under appeal, the only long-term solution is to start growing the tax base again. Both acknowledge that time is running out, though, as the trust fund is dwindling.

Numerous residents called on council to come up with a viable plan for the city’s long-term finances — and to stop depending on the trust fund.

Beyond Simpson, council members Marie Hess and Linda Lavender-Norris questioned the “emergency” nature of the transfer — noting that the need was foreseen nearly a year ago. City Solicitor John Carnes explained that the requirements for borrowing — although as yet, the city has not been able to repay any of the trust fund monies used in the last decade — require an emergency, that the city need the funds to continue to operate, which is now the situation the city finds itself in. Hess, Simpson, Lavender-Norris and Ingrid Jones voted against the transfer, which will likely have to be taken up again next month — unless officials are prepared for city services disruptions.

As the meeting wore down, Lavender-Norris took issue with the city’s Director of Public Works, Donald Wilkinson. She noted observing off-duty city police — including Chief Jack Laufer and Lt. James Audette — removing debris from the city, while city public works employees fail to get work done during their paid shifts. Earlier in the evening, there were resident questions about trees overgrowing into private property, as well as sidewalks blocked from abandoned home — and the alleged failure of the city’s Public Works Department address the issues.

“Public works just has to step it up,” she said during her public comment. “Just get it done.”

Wilkinson reacted angrily, suggesting that Lavender-Norris “ambushed” him in public, instead of taking up the issue with him, one-on-one. The meeting erupted in acrimony — a miasma of yelling, charges and counter charges, as Hamrick attempted to regain control of the proceedings. Hess and C. Arvilla Hunt, stood up and announced they were leaving, and a motion to adjourn was approved before the other six council members were able to make their normal public comment.

Earlier, during the calmer portions of the meeting, the city swore in two new police officers, Ryan Corcorran and Jared Davis. Again, Laufer offered his appreciation for the support of City Council  of bringing the city police force back to full strength.

Outside auditor Pamela Baker, from Barbacane, Thornton & Co., noted that the city was down to a single finance issue: managing and tracking solid waste disposal income. All of the other issues have been sorted out — leaving the city just that last issue to fix before it could get a “clean” audit report.

The council approved an addenda to the city’s Comprehensive Plan — a reworking of the 2002 plan, which puts further emphasis on the city’s redevelopment plans, and better takes into account both the new train station and the evolving “New City/Old City” development plan — which calls for revitalization of the Lincoln Highway corridor — the “Old City” — along with plans for the The Flats to create new living and commercial spaces, dubbed the “New City.”

City Planning consultant Tom Comitta ran through the proposal during a special hearing prior to the meeting.

A number of the city’s landlords were in attendance at the meeting, asking that the city revise the inspection ordinances passed earlier this month — in particular taking issue with a $50 fee if a resident reports a complaint to the city. The landlords want the tenant to have to pay the fee if the complaint is unfounded, to prevent it from being used by tenants for leverage against the property owners.

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