Published Wednesday, December 4, 2002
Herald Staff Writer
Greenville needs much more than a 12-step program to set it on the way to financial recovery.
A recovery plan drafted for the cash-strapped borough under the state's Act 47 program lists 216 recommendations to put the town back in the black financially.
Earlier this year Greenville was designated a financially distressed community under Act 47, which provides loans, grants and technical assistance to help struggling communities get back on their feet.
The plan, prepared by Pittsburgh-based Resource Development Management Inc., the town's state-appointed recovery coordinator, was delivered to borough officials this week.
Plagued by a deficit created by misspent bond money and financial mismanagement, Greenville applied for distressed status in February. Borough Manager Kenneth S. Weaver said the borough's deficit is in the neighborhood of $1.5 million.
An exact picture of the borough's finances, he said, will be available after the 2002 audit is completed in March.
Under the recovery plan, a $660,000 emergency loan Greenville secured by the state to get through this year will be converted into a 10-year, no-interest loan. RDM also directed borough officials to apply for a $400,000 capital fund restoration loan that will be paid back over 10 years, also at no interest. RDM also told the borough apply for $200,000 in state grants to fund studies and other recommended programs.
The borough will start paying back the loans next year, starting with a payment for a total of $79,500. Payments of $106,000 will be made yearly from 2004 until 2011 with the balance, $132,500, being paid off in 2012.
To draft the plan, RDM went over the borough's budgets, ordinances, labor agreements, audits, insurance policies, fee structures, pension reports, and other information. As a result, the inch-thick report presents a detailed picture of borough government and finances.
The report breaks borough operations down into four areas: government organizations and services; human resource management; authorities; and financial analysis and management.
Each section of the plan addresses problems in each area and offers solutions -- the 216 recommendations -- on how to save money across the board.
The plan recommends changes in the structure of government, streamlining of the borough budget, combining bank accounts, contracting committees, and regionalization of police and fire departments.
The recommendations are divided into what the borough "shall," do and what the borough "should" do. Borough officials are required to follow the "shall" recommendations.
According to the report's introduction, the plan is supposed to address the borough's long- and short-term fiscal problems and save money. It examines the services the borough provides and looks at ways to reduce the cost of those services.
The plan's first recommendation is that the borough must start discussions with surrounding townships to consider boundary changes. If the other communities are interested, Greenville must launch a study to evaluate the pros and cons of a border change.
The plan also recommends consolidation of resources. The report details an August meeting between fire and police officials from Greenville, West Salem, Hempfield and Sugar Grove townships to discuss the possibility of a regional police force. The report said the current regional force, the Greenville-West Salem Township Police Department, is "appreciated," but the arrangement is not cost effective and the effort "should not come at the expense of the taxpayers."
Other changes to the police department include eliminating one officer from the force if the borough decides to hire a permanent police chief from outside the department, limiting the department to 49 shifts weekly, and increasing the use of part time officers, who are paid at a lower hourly rate and receive no benefits.
Regional cooperation between fire departments was also recommended. The report noted Greenville is "one of the few municipalities of its size" to maintain a paid volunteer fire department. Surrounding Hempfield and West Salem townships have volunteer departments.
It recommended the borough should look at staffing the department with two paid employees --a fire chief and assistant chief -- and filling out the department with volunteer firefighters. The fire department now has seven paid employees.
The plan also recommends streamlining borough finances by consolidating separate funds and budget items into the general fund.
Under the plan, the borough must advertise for banking services to combine its checking accounts into one account. According to borough Treasurer Tracy Vale, Greenville has about 30 separate checking accounts.
This would eliminate the need to wire money back and forth between separate accounts, which is currently done to cover expenses. In November, borough employees' paychecks bounced because a money transfer between accounts was not completed in time for payday.
The plan also says the borough must approach the town's non-profit, tax-exempt property owners, hat in hand, and ask for contributions in lieu of taxes. Those property owners include local churches, Thiel College and UPMC Horizon.