The City of Williamsport passed a resolution authorizing installment payments four through 11 of the Federal Transit Authority (FTA) repayment plan to be paid from its emergency fund.

Jamie Livermore, city finance director, presented the resolution proposal to City Council. Council previously authorized the city to begin paying monthly $35,000 installments and a large 12th “balloon,” payment early next year.

These payments cover the $1.4 million repayment due to the FTA and council alluded Thursday night to efforts to seek federal legislative help on that end.

The repayment to the FTA results from a convicted former city finance director and former River Valley Transit general manager William E. Nichols Jr., 72, misuse of grants for non-transit projects. Nichols is serving a year probation after pleading guilty on charges of theft by failure to make required disposition of funds (Felony 2) and tampering with public records (Felony 3).

Mayor Derek Slaughter said the discussion on the repayments could involve Public Finance Management (PFM), the consulting firm from Philadelphia that is helping the city with its strategic management plan through the state Department of Community and Economic Development which is picking up 90% of those costs.

Council also passed a resolution to accept the Fiscal Year 2022 audit reports.

Auditors have, again, issued a “disclaimer of opinion” for a 2022 audit because of a lack of documentation to match finances for that year.

The details were reviewed by Zelenkofske Axelrod’s Kim Stank and Justin Bell. Discussion first was held at the finance committee level.

The city continues to run a “net deficit” due to pension obligations, which is not unlike other sized municipalities, the auditors said.

“It never ceases to put a sinking feeling in the pit of the stomach,” said Councilwoman Liz Miele, chair of the finance committee, regarding the $125 million to the negative because of these benefits obligations.

This 2022 audit is the final one in which auditors are “scoping” out finances from River Valley Transit, which is now an authority that is doing its best to be in full compliance with the state and federal government regulations. Previously, under a former city administrator, grant money was shifted around illegally to pay for non-transit-related projects.

The 2023 audit report is expected to be a cleaner one and the city is requesting the Williamsport Parking Authority and Redevelopment Authority as component units to complete audits to ensure the 2023 audit can be completed in the coming months, Livermore said.

Miele said the 2023 audit being done would be helpful as council goes into the 2026 proposed budget talks.

Street construction

Big Rock Paving will this year begin streetscape improvements for $807,806 at East Fourth Street between Basin and Mulberry streets, and on Campbell Street between Third and Fourth streets. The project is financed through the Commonwealth Financing Authority multimodal grant.

Impacts on the flow of traffic should be minimal because work is from the curb and behind. Among these noticeable improvements will be sidewalks and accessible curb ramps, period lights and street trees.

Council also approved a resolution for engineering services for 2025 Community Development Block Grant funding for paving projects on part of six streets. This will be $15,000 for engineering design and $5,000 for construction supervision awarded to Livic Civil. The total is not to exceed $20,000.

The city put out a request for proposals for the project, receiving six bids, with Livic as the low bid.

The work will be for areas of Center Street, from High Street to Memorial Avenue, then Memorial Avenue, from Walnut Street to Center Street, then Elmira Street, from Park Avenue to “Kramer’s Court,” and Third Street, from Arch Street to Poplar Street, from West Third to Federal Avenue, and Fourth Street downtown from Mulberry to Hepburn Street.