Nov 9, 2016 2 min read

The City of Washington continues to make strides in repairing a once-gloomy financial outlook.

An audit of 2015 shows long-term debt decreased by $1.6 million.

“You’re digging yourself out of this hole that was created a while back,” said Lisa Vipperman of Palermo/Kissinger & Associates, who conducted the audit.

From 2009 to 2010, city officials flirted with the idea of filing Act 47 bankruptcy. Unrealized revenue, loans, a drop in investments because of a failing economy and pension payments converged in 2008. Taxes were raised for three years as officials tried to avoid bankruptcy.

Thanks to bond refinancing and an earned income tax that bolstered a once-struggling pension fund, Councilman Joe Manning is optimistic about Washington’s financial future.

“We’re very proud that this is maybe four years that we’ve had a good, clean audit. We’re right where we want to be as far as credit rating and long-term debt,” Manning said. “I’m very pleased and proud.”

Through State Act 205, the city levied an additional 0.635 percent wage tax on those who work in the city to fund its pension program. In 2015, pension assets increased by about $2 million, with administrative workers fully funded, the police department 86 percent funded and the fire department 95 percent funded.

“The special tax has helped immensely,” said city Deputy Finance Officer Susan Koehler. “I think we’re moving in the right direction.”

Cash and assets available remained consistent from 2014 to 2015, the audit showed.

“We’ve cut a lot of our expenses and services we pay for,” Manning said. “We’ve held the line on our health-care expenditures over the years. We’ve worked very hard to get that down.”

Officials are in the process of preparing 2017’s budget.

Because countywide reassessments have not been finalized, Manning said city officials are trying to keep the new budget as close to 2016’s as possible.

A final budget will be adopted in December.

Mayor and council meet today at 1 p.m. in City Hall.