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Saturday, January 01, 2011

Lansford Considers Bankruptcy

Harry note - I taught in downtown Lansford for 33 years. I lived 5 miles away in Tamaqua.

Reprint from Times News By CHRIS PARKER

Lansford Borough is in such dire financial straits that its council on Thursday considered asking the state for help in filing for bankruptcy.

After much discussion, council decided against the bankruptcy move, initiated by Councilman Tommy Vadyak, at least for now. It did, however, adopt a 2011 budget that carries a 3.06 mill property tax increase, froze additional purchases (except for emergencies), voted to pay the $275,333 in bills it owes "as money becomes available," and borrowed money from its sewer transmission account – already $97,993 in the red – to pay wages.

"I don't know where we're going to get the money from," he said. "Personally, I feel we should file bankruptcy and bring in the state. Let the state run the town."

"Our budget isn't balanced," said council Vice-President Mary Kruczek. "We did the best we can with what we could."

The spending plan anticipates $1,575,873 in revenue and $1,578,161 in expenses.

That means the owner of a property assessed at $25,000 will pay $811.75 in real estate tax next year. That's $76.50 more than this year.

Each mill is anticipated to generate $33,376 in revenue. That's $681 less than this year.

Cannon also proposed the freeze on additional purchases, a move that council approved on a 4-2 vote, with Kruczek and Danielle Smith opposed.