Nov 11, 2022 4 min read

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CHARLEROI – As Charleroi council works toward developing a balanced budget for 2023, numerous options have been discussed to cut expenses, including the possible sale of the Authority of the Borough of Charleroi (ABC).

The first reading of a preliminary 2023 spending plan was held Wednesday. As it stands, revenues sit at about $3.1 million and expenses, $3.6 million, leaving a deficit of nearly $500,000. The tax rate on the preliminary budget is 15.85 mills, which reflects a 9-mill tax increase if the budget stands as is. One mill generates about $120,000 for the borough.

“That’s where we’re at right now,” said borough Manager Matt Staniszewski after the meeting. “We’re looking at every opportunity to balance the budget and provide a good service to our taxpayers.”

In October, Staniszewski said the borough was facing a deficit of $1.1 million by the end of the year. An audit presented by certified public accountant Mark Turnley showed the borough was trending toward a deficit.

Council voted Wednesday to approve documents needed for a tax anticipation note of $500,000 with CFS Bank at a 4.04% fixed interest rate.

Also Wednesday, council voted to ratify a memorandum of understanding to have Staniszewski meet with the authority to develop a non-binding, fair market value appraisal of the authority assets at no cost to either party. It was passed by a 5-1 vote with Nancy Ellis voting no. Jerry Jericho was not in attendance.

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.

Staniszewski said he had a productive meeting with authority members Tuesday, but said they did not seem interested in an assessment.

“It just did not come to fruition to work together to do a fair market appraisal,” he said.

Chad Warfield, the authority’s director of operations, said that decision is in the hands of ABC’s board, which has meetings scheduled for Nov. 15 and 22.

“As of right now, the position is that we were not going to move forward with it,” Warfield said. “That’s a board decision, so it will have to go to a board meeting.”

Warfield does not believe selling the authority is a good idea.

“I know there are rumors about the authority being sold and there’s 10 people in this room right now who work with the authority,” Warfield said. “We’re all from here. A lot of us grew up here. A lot of us gave up opportunities elsewhere to work here. I think it would be a disservice to this valley if this council was considering a sale of this authority. Rates are low, and we have brought in people to lead this authority in the right direction.”

Councilman Frank Paterra explained that selling ABC is one option being explored, but he is concerned about what would happen if that occurs.

“It’s not that we’re against the water authority. It’s an asset we’re looking at to balance a budget with a no tax increase,” Paterra said. “I’m worried that if we do have no alternative but to sell the authority that the men and women working there would lose their jobs and what kind of rate increase that would cause.”

Staniszewski said that would be a part of the negotiations if a decision was made to sell the authority.

The meeting was recessed to delay voting on the portion of the memorandum of understanding that authorized Solicitor Sean Logue to investigate dissolution of the authority until after the authority board holds its meetings.