The Herald, Sharon, PA Published Wednesday, April 10, 2002

GREENVILLE

Hand-to-mouth town sweats every payday

By Tom Fontaine
Herald Staff Writer

Most people look forward to payday.

But in cash-strapped Greenville every other week is a brand new struggle, another high-wire act for officials who cut the checks for borough employees, who take home a combined $45,000 every two weeks.

"The threat of a payless payday has been a concern since the year began," said Borough Manager Kenneth Weaver.

Weaver said employees have been paid on time and in full this year, and he is confident that will continue. But making payroll hasn't been easy, Weaver said.

The borough began the year with a $1.1 million deficit and had no tax anticipation loan to lean on until tax dollars started trickling in last month.

Greenville defaulted on a $275,000 tax anticipation loan last year, paying back only $30,000 over the course of the year. The borough was able to get a $245,000 loan this year so it could pay off last year's loan, not to cover early year expenses. The borough expects to collect $1.38 million in taxes in 2002.

While the borough did not have a tax anticipation loan to lean on, it did have about $300,000 left in a $3.67 million bond floated in 2000 for a recreation and revitalization project.

In 2000 and 2001, the borough used $667,000 of the bond to cover day-to-day expenses and keep itself afloat. Using bond money for general purposes is unauthorized, but former Borough Manager Peter D. Nicoloff Jr. ordered the account transfers, officials have said.

This year, council budgeted a $208,839 transfer of bond money to general spending. The borough has already spent $297,000; despite the bond, the borough is $75,000 behind on its bills, some dating back to February.

"It was the only money available to us," Weaver said of the bond fund, which is now down to $5,000.

Fortunately for the borough, local tax dollars started trickling in last month and some quarterly bill payments are expected this month, Treasurer Tracey Vale said.

Tax Collector Linda Crisman, it seems, has a conveyor belt running from her office to the borough building because Ms. Vale said, "We receive the money almost immediately after it arrives."

The borough spends it soon after. "One payday the tax payments covered payroll entirely," Ms. Vale said. "They're going to be a good chunk of this pay as well."

The downside for the borough, however, is that payments made during the discount period translate to less money for the borough.



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