Dec 17, 2022 3 min read

CHARLEROI – Charleroi council delayed adopting the borough’s 2023 budget at a meeting Wednesday.

A motion to approve the 2023 spending plan – including a millage increase from 6.85 to 12.85 mills – was tabled. It is now expected to be voted upon at a special meeting at 6 p.m. Dec. 27 in council chambers.

Each of the six council members in attendance Wednesday – President Paul Pivovarnik, Nancy Ellis, Jerry Jericho, Frank Paterra, Larry Celaschi and Joe Smith – voted to table the motion. Councilman Randy DiPiazza was not at the meeting.

Borough Manager Matt Staniszewski presented a $3,908,800 budget, which, along with the proposed 6-mill increase, included a $500,000 tax anticipation note, which would cover cash flow shortfalls at the beginning of the fiscal year.

One mill generates $121,046 for the borough.

If the budget had been approved, the average homeowner in Charleroi would have faced a tax increase of about $233.40, or $19.45 per month. The figures are based on the median home price in the borough being about $39,700 and the homeowner paying at the 2% discount.

In October, Staniszewski said the borough was looking at a deficit of $1.1 million for various reasons, including $478,644 in unfunded obligations.

In November, the first reading of the 2023 budget took place, which included a 9-mill tax increase and a deficit of nearly $500,000.

“We’re dealing with a cascading effect from budgetary shortfalls over many years,” Staniszewski said. “(We’re also dealing) with what our nation’s facing, post-COVID, and inflation is through the roof.”

Staniszewski said the spending plan as presented would have put the borough in the black by the end of 2023.

He expected a tightening of the budget before it is voted upon Dec. 27.

“I anticipate (the millage rate) being reduced,” Staniszewski said. “I’m continuing to tweak the numbers. I’ve done a lot of structural changes for the budget to be more in line with auditor recommendations along with standard accounting principles. I do believe we’ll be able to reduce that tax rate.”

As council seeks ways to generate funding while working on the budget, one method discussed was the possible sale of the Authority Borough of Charleroi (ABC).

“We’re still in discussion,” Staniszewski said. “There are some preliminary notes floating around, but nothing concrete as far as what I would consider a proposal or any type of written agreement or terms. We have to do our due diligence regardless of what happens in the best interest of our taxpayers. Part of doing due diligence is getting a fair market appraisal of assets.”

ABC provides water and sewer services to the boroughs of Charleroi, North Charleroi, Speers, Twilight and Dunlevy, as well as Fallowfield Township. The authority also provides water service to the boroughs of Donora and Cokeburg, the city of Monessen and portions of Somerset and Rostraver townships.

Representatives of ABC have said they are not interested in selling or in any talk of a dissolution of the authority. The authority passed a resolution Oct. 25 opposing a sale.

“We believe that would not be against the interest of our consumers, clearly,” said Dennis Paluso, ABC solicitor.

ABC has made an offer to purchase the borough’s sewer lines and assume MS4 duties. MS4 is a permit to discharge stormwater into waterways such as rivers. The offer is for $2 million and to pay off the borough’s PennVest loan, which is about $4.4 million.

Paluso said the hope is that borough representatives will meet with ABC representatives Tuesday.