Audit reveals city ‘making progress’
Washington is facing a brighter financial future after a recent audit revealed a decrease in the city’s debt.
An audit of 2014 conducted by Palermo, Kissinger & Associates of Washington showed a debt of $15 million, a decrease of $700,000 from 2013.
Accountant Lisa Vipperman credited council with making a “very fiscally sound decision” to refinance bonds, thus saving money because of lower interest rates.
“You’re definitely making progress,” Vipperman said.
An additional earned income tax on workers bolstered a once-struggling pension fund. State Act 205 allowed the city to levy an additional 0.635 percent wage tax on every person working in Washington to fund its pension program for administrative workers, police officers and firefighters. In 2008, city council added a 0.15 percent earned income tax, then increased it to 0.635 percent in 2010.
In early 2014, the city’s pension account was 70 percent funded, earning a “minimally distressed” rating from Pennsylvania’s auditor general. According to the audit, as of Jan. 1, the police pension is 84 percent funded, the firefighter pension is about 88 percent funded and the administrative pension is fully funded.
“That’s all good news,” said Councilman Ken Westcott.
The general fund is balanced, with $30 million in revenue and $30 million in expenses. Because real estate tax is partially determined by the city’s debt, Mayor Brenda Davis asked if the tax was set too high.
“You’re not charging too much taxes,” said Vipperman, adding the city could consider lowering the tax in the future.
“Your improvement is significant, but there’s still a lot of debt on the books,” said accountant Gary Kissinger.