Borough Finance Confusion

Borough Finance Confusion

The Reading Eagle of December 18, 2008 states there will be a .25 mil increase in the Fire Tax, which is a Real Estate Tax. The headline in The Patriot of the same date reads, “No Tax Increase in Kutztown”. Is the Borough confused and giving the local papers the wrong information?

The Patriot sub title also states, “Utility funds needed to offset general fund deficit”. Borough Finance Director and Assistant Treasurer Russ Samilo, Mayor Green, the Borough Council, Borough Manager Khalife, Solicitors Dietrich and Mooney, Auditors Long & Barrell and responsible Borough employees should know this a violation of the Borough Code. According to the Borough Code the only utility that funds can be moved from and into the General Fund is the Electric Department. The West Chester Case also states that funds received for a certain use can only be spent for that use. The Borough has been violating the Borough Code for at least the past 14 years. Most of the funds moved into the General Fund end up paying for the losses of Hometown Utilicom.

The Reading Eagle article states that the Borough Council voted to spend $185,000 for a new utility software program. Council President states that this new program will replace a custom-made software program built in the 1980’s. President Eidle is mistaken this program will replace the New World System which was bought by former Borough Manager Vettraino for $225,000 and was unable to complete the utility billing. Mr. Eidle is deliberately misleading the public. Don’t forget New World System is located in Vettraino’s hometown Morton Michigan. Aren’t there any capable computer firms in Pennsylvania?

Councilman Schlegel stated water and sewer bills will be due monthly rather than quarterly because they can be hefty quarterly. They became hefty because he voted for the rate increases.

The Apex deal with HU is a disaster for the Borough. ITD Caruso states it is not a loss and I think he should explain the situation to the Borough residents.

The Borough should publicize its actions at the Borough Hall, on the Borough website and in the Kutztonian. Gennaro A. Marino P.E.