Point Marion faces deficit
POINT MARION – After reviewing the monthly treasurer’s report, the borough council has acknowledged that the borough is financially strapped, especially in regard to the sewer fund. During a meeting Wednesday, treasurer Art Strimel said the borough will not receive a grant to offset the operating cost of the sewage plant as it has for the last 25 years.
The grant, which gave the borough about $9,000 a year, was cut from Gov. Ed Rendell’s budget, said Strimel, adding that the borough was notified of the cut about three weeks ago.
However, council members already had figured the $9,000 into the original 2003 budget and said they do not know what they can do to offset the deficit.
“We lost $9,000,” said Councilman Ted Shaffer. “As of now, we are operating with a deficit income.”
Shaffer said the council will hold a special meeting at 7 p.m. Wednesday to discuss the sewage fund.
“We’re going to have a rate increase. We have to,” said Shaffer.
Residents pay $18.75 a month for sewage. Shaffer said the council is planning to raise that rate by about $2.
“We haven’t raised the rates for six or seven years,” he said. “Now we have to.”
According to Shaffer, the council also will have to curtail overtime and watch all expenditures in order to stay on budget.
“We’ll do what we have to do and that’s it,” he said.
Councilman Mike Costa said the borough’s finances are strained.
“We’ve got to face harsh reality: We’re in trouble,” he said.
Barring any major repairs or emergencies, Shaffer said, the borough should have enough money in the general budget to last until November.
“The only thing we can do, if we need money come November, is apply for a tax-anticipation note from the bank,” he said.
In other matters, the council announced it will support Fayette Area Coordinated Transportation (FACT) in its attempt to bring public transportation to the borough.
During last month’s meeting, the council did not say if it would support FACT.
However, board members decided to approve the plan after holding a special meeting June 4 to discuss the routes and service FACT would provide the borough.
Strimel said FACT plans to have bus runs in the borough by July 1.
According to George Hardy, a FACT employee, the buses will run Monday through Friday from about 7 a.m. to 6 p.m. Senior citizens who register with the FACT office will ride for free. All other riders will pay about $1.50 per trip.