City council may reinstate fire department funding
CONNELLSVILLE – The forwarding of financial information by the city’s volunteer fire company may prompt council to reinstate funding to the organization. “I’m very pleased with what took place tonight,” said Councilman John Whalen following the Wednesday budget session.
For nearly an hour, New Haven Hose Volunteer Fire Company finance director Ken Jaynes and accountant Marlene Grenell reviewed financial documentation from the organization as a means to clear the path for council to reinstate funding for the company.
The presentation came after council nixed allocating any money to the company in its 2003 spending plan.
In 2001, the company received $25,000 and in 2002, the city forwarded $15,000 to the organization.
Jaynes said the funding is needed by the company to help defray costs associated with the recent purchase of a pumper/aerial truck that totals nearly $370,000.
While the city has earmarked $50,000 for the purchase through its state Community Development Block Grant allocation, Jaynes said the company is responsible for making monthly interest payments of $1,700.
“Every cent that (the city) has given us has gone to the capital improvement fund,” said Jaynes, noting the fund is for the truck purchase.
According to the federal Internal Revenue Service form 990, which is submitted annually by non-profit organizations, the company received over $475,000 in contributions, grants and revenues from fund-raising events, but its expenditures exceeded its income.
“Today, the company is $660,000 in debt,” said Grenell.
The deficit is attributed to the recent purchase of property, construction at the firehall and the purchase of the aerial truck.
Councilwoman Judy Keller, who serves as director of accounts and finance, pointed to the city’s annual payout of fees associated with equipment insurances and fuel costs, along with workman compensation insurance, as its way of assisting the company.
“We are making contributions,” she said.
Jaynes argued the amount was minimal, given that the company responded to a large percentage of all fire calls within the city.
According to the figures, of the 152 calls dispatching the city firefighters, New Haven responded to 120. “For those who are asking for accountability, I’d say that’s accountability,” said Jaynes. “I think you’re getting your money’s worth.”
Whalen said he would review the documentation submitted by the company before supporting any funding being transferred to the organization.
He initially requested that, in addition to the financial records, the company was also to submit figures of income generated through all fund-raising activities, specific utility and building costs and any fines, dues or fees paid and a listing of invoices that remain unpaid.
A request to supply a letter explaining how the allocation, if received, was to be spent is going to be forwarded by the company, said Jaynes.
Keller, meanwhile, said the allocation would not be included in the 2003 budget. “There’s nowhere in the budget where we can free up $25,000,” she said. “If this is going to happen, it will have to come from one of the other (savings) accounts and that will have to be done through a resolution of council with the approval of four members.”
The tentative budget is to be presented at council’s Nov. 12 meeting for action.