CLEARFIELD – After information was supplied to local media regarding an eight million dollar surplus in county funds, the county commissioners were questioned Thursday on the plans for it and the $14 million in American Rescue Funds they are still holding.
The information indicates that since 2019, the county has had a surplus each year, which now totals $8,653,824.02. This money is currently sitting in two different bank accounts.
The county’s labor contract negotiations have been difficult this year due to cuts to insurance benefits and on June 27 many county employees called off in protest.
In a statement released at that time, the employees commented that the commissioners claim they can’t increase employee wages, keep current insurance and other benefits because it would lead to tax increases and people possibly losing their homes.
The release of the information on the surplus has only added to bad feelings in county offices.
In a phone interview on Thursday, Commissioners Tony Scotto and John Sobel answered some of these concerns.
Sobel first explained there are limitations on the $14 million from the American Rescue Plan released because of the COVID pandemic.
“Clearfield County has some serious problems,” Sobel stated, citing aging infrastructure. Luckily some of the American Rescue Plan funds can be used for this purpose.
Area municipal authorities have contacted the county for help and the plan is to partner with them to solve their issues, he said.
They are also working to upgrade the county’s broadband coverage and are currently taking a survey to help them decide what needs to be done. (You can take the survey at https://clearfieldco.org.)
Scotto said they are looking at repairing or replacing bridges and roads with the funds since they have up to four years to use them.
He referenced a recent bridge collapse in Pittsburgh. “We don’t want that to happen here.”
After a study they will determine what needs to be done and most of the ARP funds will be “eaten up by this.”
With some of the original CARES funds in 2020, they were able to offset some lost revenue which is one of the reasons for the surplus.
The last year has also had its financial problems.
After it was discovered the roof on the county jail was not secured to the building, the cost of the $9.3 million renovation project there increased by almost four million dollars. Although they have some funds for this, they will have to take out a loan to cover the rest, Scotto said.
Sobel stated that they are exploring taking legal action against the contractor.
Another reason the numbers may seem inflated is that this is the time of the year the taxes start to come in. Sobel noted that the surplus money will be reduced as the year goes on.
Because some of the labor contracts are not completed, those staff members are working under their old contract, Scotto explained. Once they reach an agreement, these employees will be paid their raises retroactively from the beginning of the year which will also be a big drain on the county.
To prove they have been thinking about their staffs, Scotto noted that contracts are being structured so employees do not see the full impact of increases in insurance premiums which will instead be staggered.
In January they used part of the ARP funds for a special retention bonus of $500 for contracted employees, paid in two installments to show their gratitude to essential people who worked through the pandemic. This second installment will be paid in July.
At that time, Glass stated “they’ve been working through everything, so this is what we can do and hope it indicates our appreciation of our employees,” according to a previous media report. In all, the county has been lucky to receive extra funds during the past few years. The CARES funds in 2020 had to be used up quickly. Some of that money went for grants to businesses suffering because of the pandemic, municipalities to help with police expenses, creating an infirmary at the jail and a bonus for employees who received the COVID vaccine, they said. They believe it is not a good idea to set salaries and benefits on money that will not be available each year.
“We can’t use the extra money for reoccurring expenses,” Scotto stated.
For the ARP funds, they are looking to invest the money in infrastructure that will have a long term impact on the county.
“If we fix a bridge, it lasts years,” Sobel noted.
