Oct 7, 2022 3 min read

CHARLEROI – Charleroi Borough might end the year more than a million dollars in the red.

Borough Manager Matt Staniszewski reported at Wednesday’s council meeting that the borough could be faced with a deficit of $1.1 million at the end of the year.

Staniszewski said to date, 93.4% of budgeted revenue of $2,637,677 has been collected. He said the borough already has expended 91.5% of its allocated budget for the year.

“Considering quarter four just started, we should be closer to 70%,” he said. “This is not unique to Charleroi, but 91% is high. Cash flow is going to continue to get challenged moving forward. Our cash reserves are going to continue to be impacted.”

Staniszewski said if the fiscal year ended Wednesday, the borough would show a balance of $43,623.

He added there were influxes of cash from other funds to offset shortfalls or cash flow, and line items to account for inter-fund transfers were not included in the budget.

“There’s a significantly number of large transfers that are not accurately shown within the general fund,” Staniszewski said.

Staniszewski said with $478,644 unfunded obligations left to pay this year and $650,000 in monthly costs and obligations remaining, the borough would be looking at a deficit of $1,128,644.

“There’s no way council would have adopted a budget that was wrong,” said Councilman Jerry Jericho, one of those who voted in favor of the 2022 budget. “This has never, ever happened in all my years of council. Why, all of a sudden, has it changed?”

“For once, we’re cleaning up the finances,” Staniszewski responded. “Your budget is whack.”

Council voted against reopening the 2022 budget in January.

Council member Nancy Ellis, who is finance chairman, said the borough should look at entering into Act 47, the Financially Distressed Municipalities Act, a Pennsylvania statute outlining procedures to stabilize municipalities undergoing financial distress.

“No one wants this, but I consider this a more suitable alternative to others that are being discussed,” said Ellis, adding that other options would include selling the water authority or a tax increase. “Our residents cannot handle a tax increase. That’s all I hear from everyone.”

Staniszewski said he did not advocate for Act 47 and he will present some option when council meets Oct. 12.

In other action, for the second time in recent months, a vacancy on borough council was filled by a former councilman.

Randy DiPiazza will fill the vacancy created when Cathy Diess resigned in September.

DiPiazza, 59, was approved in a 4-2 vote Wednesday. Voting in favor were council President Paul Pivovarnik, Frank Paterra, Larry Celaschi and Joe Smith.

“He’s dedicated to Charleroi, black and red all the way through,” Pivovarnik said of DiPiazza after the meeting. “He’ll bring a lot to the table. He has his heart in Charleroi.”

DiPiazza served on council for nearly seven years before resigning in September 2018.

He said Thursday that his resignation was brought on by health concerns and he’s back to “finish what I started.”

DiPiazza said he brings honesty and trust to the position.

“I say it how I see it,” he said. “I have no filter. Being born and raised and living here in Charleroi my entire life, I am here for the good and decent people and Charleroi.”

Ellis and Jericho voted for Kim Taylor, one of three applicants. The other was Danielle Haynes.

DiPiazza’s term runs through 2023.

His appointment comes just two months after Paterra was appointed to fill a vacancy created by the resignation of Jeannine Motycki.