Washington boasts $1.45M surplus
An audit of Washington’s finances showed the city had a $1.45 million budget surplus in 2013 just as officials prepare to refinance three bonds they expect will save taxpayers about $200,000.
Gary Kissinger, an accountant with Palermo, Kissinger & Associates of Washington, said the city is “headed in the right direction” with the surplus, mainly from the additional earned income tax on workers that has bolstered its struggling pension fund.
“The city is improving its financial shape,” Kissinger said. “It’s been a process where they continue to move in the right direction.”
The biggest concern raised by the accounting firm was the excessively low number budgeted last year for anticipated tax revenue, when the city beat its expected figure by about $1.7 million. The firm said future budgets should better reflect what the city expects to receive in annual tax revenue.
“Everything looked pretty good,” Councilman Joe Manning said of the surplus. “We’re pretty happy with it. Things went well.”
With the improving financial news in hand, city officials are expected to vote tonight on moving forward with refinancing three bonds that will cut the “tail end” of the $7 million in debt by about five years and save more than $200,000 over that time because of lower interest rates.
Manning suggested during the city’s Monday night workshop meeting that the city should also take the opportunity to wrap up $500,000 in upcoming capital expenses into the refinancing by CIM Investment Finance of Pittsburgh, although that idea was panned by other members.
Instead, Councilman Terry Faust and Mayor Brenda Davis suggested “paying as we go” for other purchases, such as $200,000 for new firefighter breathing apparatuses and $142,000 for a rebuilt salt shed. Davis called the debt reduction through the budgets and refinancing “huge progress” for the city.
“It’s beneficial for the taxpayers,” Davis said. “It shows we’re on the right track and living within our means.”
She did note another portion of the audit that questioned Manning’s application for a $500,000 Keystone grant funneled through the city’s coffers to Citizens Library for its heating and ventilation project that is almost completed. The auditor suggested council should approve such grants before applying for them. Council did not formally approve this particular grant until last December, several months after the money was already allocated.
“It’s recommended that we establish a policy so no one person can apply for a grant in the City of Washington’s name without consulting with mayor and council,” Davis said. “You can’t have one person doing their own thing without anyone else knowing about it.”
Manning said the city was just a “pass-through” for the Keystone grant and was never on the hook for funding any portion of the $998,400 project.