Lansford to review tax earmarks
Lansford Borough Council wants to review how it allocates Local Services Tax revenues after a request from the American Fire Co. No. 1 of Lansford for its share of the funding.
The fire company sent an email requesting the funds after its fire chief, Joe Greco, attended a public safety committee earlier this month when the funding was discussed.
Greco pointed to the need for funding, as the volunteer company is in a crunch with soaring fuel prices. A half-fill for the engine cost $200 recently, and he wanted to know what the borough had budgeted.
A portion of the borough’s millage is dedicated to the fire company, and the borough supports the company’s insurance and workman’s compensation.
Councilman Jack Soberick asked Greco if the company received funds from the Local Services Tax, which can be used for police, fire, emergency services and streets department.
Greco explained that the company submits a spreadsheet with its expenses, such as fuel, electricity, vehicle repairs, for reimbursement twice a year. Last year, the fire company received $14,000 and expected another $10,000 at the end of the year but learned there were no additional funds available, he said.
“I just want to know what the right number is,” Greco told committee members, noting that a lot of work goes into the accounting for reimbursement from the borough.
Soberick didn’t think that the fire company should have to submit an accounting for the LST funds, as it’s money collected specifically for emergency services.
Council President Joe Genits suggested the fire company submit an invoice before the regular council meeting requesting its share of the tax funding.
Soberick said that if the amount in the LST account was $63,000 then, the fire company would be owed just over $15,000 for its 25% of the tax.
On Wednesday, the amount of funding due to the fire company was less clear when the request came up.
Genits noted that the LST account has $67,635 and asked if someone wanted to break down how the money would be split among the fire company, police, emergency services and public works.
Both residents and council members chimed in that the division funds had been set previously, likely by resolution, but Genits said nothing was in the ordinance.
Soberick said that in the past the funds were allocated to the police, 50%, and fire and street, 25% each, but council could allocate those funds as they wanted with a new resolution.
He also questioned how there was more than $67,000 in the account, when it’s only April and these funds come in steadily through taxes on people’s wages through the year.
Soberick wasn’t against the fire company receiving the funding, but the organization could be owed more or less than the percentage, if it wasn’t spent last year.
Genits opined that the funds were likely not fully allocated last year.
Soberick moved to table the request, until council could come up with the percentages and council approved the motion.