Politics & Government

Point Borough Council Meets Tonight, Still Plans No Layoffs, No More Furloughs

Budget Adoption Scheduled for July 19

The borough's budget plan is still to not impose any additional furlough days, beyond those already taken, and to not have any layoffs, said the council's finance committee chairman on Monday afternoon.

Borough Council is holding a budget workshop at 7 tonight and expects to adopt the budget at its July 19 meeting.

Because the borough is planning to borrow about $354,000 from school tax revenue, otherwise known as "deferred school taxes," it will avoid imposing any layoffs and any additional unpaid days, said Councilman Christopher Leitner, finance chair.

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Tonight's workshop is to "discuss possible amendments to the budget to avoid any more furlough days or layoffs this year," said Borough Administrator/Clerk David Maffei.

The public hearing and budget adoption is scheduled for 7 p.m. July 19.

Find out what's happening in Point Pleasantwith free, real-time updates from Patch.

The borough council voted at a June 9 budget workshop meeting to borrow $354,000 from school tax revenue to help plug a deficit of approximately the same amount.

The borough is able to do that because it collects taxes for the municipality, school district and county.

It collects the taxes for the school district six months in advance and, when borrowing from those funds, known as "deferred school taxes," the borough must pay the money back six months later so the schools can function.

"We are legally obligated to pay back 100 percent of the money to the schools in six months," Councilwoman Toni DePaola had said after the June meeting.

Towns are allowed to borrow a maximum of half of the school tax levy that they have collected by the time they adopt their new budgets.

That means the borough could borrow a maximum of $7 to $8 million from the current school tax levy of $29 million, Councilman Mitch Remig had said after the June meeting.

However, the town is borrowing the far lesser amount of about $354,000.


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