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Munhall council president says layoffs possible

Thursday, Aug. 21, 2014, 3:46 a.m.
 

Munhall may be forced to lay off personnel in order to make ends meet, the borough council's president said at a meeting Wednesday evening.

“I'm surprised that we're where we are today,” Dan Lloyd said when asked by resident Ronald Gajdos about the borough's future. “It's going to be pretty rough making it through the end of the year, potentially, without some layoffs.

“We had ... a lot of things to clean up here in Munhall. If you think that it's in our best interest to go back to the way things were. I'll tell you that I don't think it is, and I'll do my best to see that that doesn't happen.”

Lloyd highlighted some of the borough's financial troubles and how they were addressed, starting with the use of a new information technology employee and a certified public accountant.

“It took us several months to hire a professional manager, (and) he didn't start till June,” Lloyd said.

“If you'll recall, we were talking about potentially laying off 50 percent of our personnel here. We had a negative fund balance the night of my first meeting. We were negative $25,000. We had no money. We had no audits for 2011 and 2012.

“We couldn't borrow any money. We came to find there was $180,000 missing, another $50,000 misappropriated, $535,000 in non-paid pension obligations, $278,000 in non-collected employee contributions to the pensions. That's over $1 million in money that we didn't have.”

Lloyd mentioned lawsuits against the borough and other unbudgeted but mandatory spending.

Rumors of layoffs, at least one person from each borough department, began circulating throughout the borough following a finance committee meeting earlier this year.

Lloyd said layoffs are always an option when dealing with a tight budget.

“Nothing's decided,” Lloyd said.

In other matters:

• Council approved advertising ordinances pertaining to the flood plain and to authorizing Munhall Municipal Sewer Authority to enforce the borough's stormwater laws.

• Councilman Rob Falce announced a citizens recreation board is being formed.

More information will be released next month.

Michael DiVittorio is a staff writer for Trib Total Media. He can be reached at 412-664-9161 ext. 1965, or mdivittorio@tribweb.com.

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