Bradford City was facing a $1 million deficit in the 2019 budget — more than a month ago.
At Tuesday’s city council meeting, council was discussing struggles officials were having tackling the deficit before passing a final budget in December. But by Tuesday’s meeting, officials had shaved the 2019 deficit down to less than half.
After The Era reported on the $1 million deficit Wednesday, Mayor Tom Riel contacted The Era to clarify where the city is in the budget process.
“Perhaps it was not made clear at the council meeting, but the City of Bradford does not currently have a $1 million deficit with next year’s budget,” said Riel. “What should have been made more clear by city officials was that the city budget had a deficit of more than $1 million more than a month ago. As of Tuesday night’s meeting, the current shortfall was well below $400,000 and falling.
“As it is each year at this time, the city budget is a work in progress and will not be finalized until the last meeting in December,” he added.
To ease in budgeting in the future, city officials are looking at ways to cut back costs and/or raise revenue. This includes enforcing delinquency payments for taxes and fees.
“Delinquent monies owed to the city are going to be addressed in a much more aggressive manner starting in January of 2019,” explained Riel. “The city will no longer issue any permits, licenses, certificates or the like to any individual, business, licensed professional, contractor, restaurant…who are in serious arrears with any city taxes, utilities or various fees.”
Riel was quick to say that the city is not intending to persecute citizens who find themselves in a financial bind.
Riel explained, “City Council recognizes that some people do fall on hard times and get behind a bit. Anybody can have financial issues and fall behind. City Council understands that and is willing to work with our residents and businesses if they are willing to work with us if need be.
“That is the not the issue being addressed here, but rather much more serious delinquencies,” he said.
Not everyone intends to pay what they owe, according to Riel, who indicated that failure to pay by many people for several years adds serious losses to the city’s revenue. He described how the new policy will work.
“An appropriate example would be a business with a food license that might owe $5,000, $10,000 or more in arrears,” he said. “Such a business will not have their food license renewed unless they pay up or enter into a legally binding payment plan that would give them their license conditionally as long as they keep up with the back payment plan as well as stay current with other city financial obligations.”
According to Riel, recent changes to Pennsylvania law will make it easier for the city to enforce payments.
“Many businesses and professionals in the city faithfully pay their fair share with the Business Privilege Tax and Mercantile Tax. Many others intentionally refuse to pay those taxes at all or significantly under pay. Some even brag about not paying,” he said, adding, “This is not fair to those who do pay as required by law. PA laws have changed in recent years and now allow the city to be much more aggressive in collecting these monies.”
Riel is hopeful that taking steps such as enforcing payment of money owed to the city will forestall a tax increase.
He explained, “The city’s efforts are going to be tough on those who intentionally have ignored their debts. It would also not be fair to consider raising taxes when much more can and will be done to collect from those in arrears. City council members all live in the City of Bradford and will take any and all measures possible to prevent a tax increase.”
Riel said more information about changes to city services will be released in the coming weeks. More details on the changes will be mailed to residents with their refuse coupons at the end of the year.
