Council rejects 16.1% proposed tax increase, will look to make cuts instead
By Kyle Carrozza, Staff Writer, The Times
COATESVILLE – The City Council passed a preliminary budget for 2015 at Monday’s meeting, which includes taking nothing from the city’s trust fund and no tax increase — meaning the city will need to find spending cuts to balance the budget before month’s end.
The proposed preliminary budget coming into Monday night’s meeting was $10.8 million, including $1.2 million coming from the trust fund as well as a 16.1% tax increase. But while discussing the budget, Council had reservations about raising taxes again and drawing down the trust fund further.
“It’s counterproductive when you’re trying to entice people into the city,” said Vice President David Collins.
Council Member Linda Lavender Norris said that she did not want a tax increase but presented the idea of a small increase—maybe 5%, she said—so that taxes do not have to jump by a huge amount in the next few years. Councilor Marie Lawson agreed with the idea of a small tax increase, saying that developers might be discouraged by a city that does not raise taxes while in a dire financial situation.
Council Member Ingrid Jones suggested considering tax cuts for seniors after Lavender Norris and multiple residents voiced objections at how a tax increase would especially affect those on fixed incomes.
Collins proposed an amendment to the original budget that would remove the tax increase, taking money from the trust fund in order to make up the difference. However, the motion failed as Council did not want to take money from the fund without having a financial plan moving forward.
“There is no plan to address the fact that we’re spending more money than we’re bringing in,” said Council Member Ed Simpson. “It always seems to be, ‘Next year, we’re going to have a plan, next year we’re going to have a plan,’ and we never get to next year.”
Simpson’s proposed amendment, which Council approved in a 6-1 vote, includes no funds from the trust fund but does not raise taxes. The city will look to make budget cuts instead, which may be a challenge in the proposed $10.8 million budget.
Council and city administration acknowledged that setting such a budget will be difficult and that services may be affected. City Finance Director John Marcarelli said that personnel cuts may be necessary, and he is not sure whether such a budget is possible.
“It’s not a matter of being easy, it’s a matter of being realistic,” he said.
Council members also voiced frustration that city administration has not come forward with potential solutions to the city’s financial woes.
“It’s the city manager’s responsibility to do that, and he’s been asked year after year to do it. So far, I’ve seen nothing,” said Simpson. He and Lavender Norris also pointed out that city code dictates that the city manager is supposed to present a five year plan with each year’s budget. Such a plan has not been presented in the last few years.
Simpson said that he does not know where the cuts will come from, but the city has to come up with creative solutions, such as cross-training between departments, having departments share duties, and bargaining with unions.
Still in its preliminary stages, the city has much work to do through the rest of this month and will meet on Dec. 29 to pass the final budget for 2015.
“As a council and city administration, we have our work cut out for us,” said Council President Joe Hamrick.
Residents also expressed their desire for the city manager to live in Coatesville. City Manager Kirby Hudson currently lives in Delaware. Solicitor John Carnes said that Hudson’s contract, approved by Council in 2012, explicitly states that he is allowed to live in Delaware.
Resident and landlord Khadijah Al-Amin turned a petition into the city with 375 signatures of residents who want the manager to be required to live in the city. She said that she expects Council to address the matter at the next meeting. She said that his decisions affect every resident of Coatesville.
“If it’s not on the next agenda, next year’s the municipal election,” she told council members.
Paul Evans agreed, saying that he has never seen Hudson anywhere in the city except for city hall.
After the meeting, Hudson said that he lives in Delaware largely because much of his family is there. In particular, he takes care of his aging father who lives there.
Further regarding city finances, Finance Director John Marcarelli said that Coatesville got “an unbelievably good rate” of .918% on 2015’s tax anticipation notice. The city also approved an engagement letter from Barbacane, Thornton & Company, LLP to complete an independent audit for 2014. The audit should be completed around the middle of next year.
The Chester County Highway Safety Program recognized Coatesville’s police department for its work in stopping aggressive driving this year. The county’s project manager, Lori Aguilera presented an award to the police department and thanked the department for its participation.
“You guys have done a phenomenal job,” she told Police Chief Jack Laufer. In particular, Officer Robert Kuech earned recognition for his work in traffic safety enforcement.
