Coatesville council OKs $1.85M transfer from city trust

Amidst opposition, Coatesville borrows money for municipal operations 

By Kyle CarrozzaStaff Writer, The Times

CoatesvilleLogo-copyCOATESVILLE – Four city councilors voted for and two voted against allotting $1.85 million from the City Reserve Trust to pay for city operations at Monday night’s city council meeting — meaning the city will not have to resort to layoffs or service cuts to make it through the remainder of the budget year.

Council member Ed Simpson, who voted against the emergency resolution, said that the city has been borrowing from the trust for years without finding a long term solution to prevent from borrowing in the future.

“We asked at the end of last year if there’d be any changes to improve that; so far, there haven’t been,” he said.

Council rejected a bid to transfer $2.05 million from the trust fund in late August, in part because of some confusion about the nature of the resolution. This transfer would leave just $5.65 million in the trust fund created when the city sold its water system in 2000.

Resident Paul Evans echoed those sentiments during public comment, asking if the city has considered budget cuts to offset expenditures.

“No, we can’t,” said Council President Joe Hamrick. He also said that the past council voted for the move in December, but they were voting again now that new members have filled two of the council seats.

Council members Simpson and Marie Lawson (formerly Marie Hess) voted against borrowing while Hamrick, Ingrid Jones, Arvilla Hunt, and Vice President David Collins voted in favor.

Council also approved a collective bargaining agreement with AFSCME for January 1, 2014 through December 31, 2017. The agreement retains the 5% copay of total premiums for employees.

In an effort to improve the maintenance of vacant properties in the city, council discussed the possibility of passing legislation to allow the citation of bank-owned properties when the banks do not maintain them. The idea was inspired after Evesham Township, New Jersey passed legislation to allow the township to fine banks up to $1,500 a day for every day they are vacant after 30 days.

“We have tools to control the situation,” said City Solicitor John Carnes.

He said that they would have to look into the situation further as Pennsylvania does not have the same regulations as New Jersey.

To improve the city downtown, council introduced the idea of developing a Downtown Economic Retail Strategies and Incentives Program to invite businesses into the downtown area. Council worked with PNC Bank and First State Community Fund to explore the possibilities. Hamrick said that exact details still need to be worked out.

Michael Gill from Buckley Brion McGuire Morris & Sommer LLP presented plans to put a Family Dollar downtown. The plans already earned approval from the planning commission and city engineer. However, Carnes brought up a few concerns that Gill said should be worked out before council’s next meeting.

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