The City of Williamsport is removing about $755,000 from capital projects next year in an attempt to cut down on a projected deficit.

As part of the budget work session process, Jamie Livermore, city finance director, noted for the City Council how the administration of Mayor Derek Slaughter is — across the board — reducing the interest income by 80%.

“We’ve added the sale of City Hall as we did last year,” Livermore said.

Additionally, there are flood mitigation funds for Grafius Run in the budget proposal. These are funds that are specifically for flood mitigation and carry over, she said.

“Scott was able to use a little bit for Grafius Run this year,” she said of Scott Livermore, director of the Department of Public Works, who is her husband.

What was kept in the capital projects budget was for purchasing a GMC Sierra truck for the parks department, with those funds already saved and ready for use.

Also kept in the capital projects budget is funding for the flood department and a Ventrac, a type of speciality mower.

Debt service

The city debt service, overall, is projected to be down 0.63%.

“We continue to pay on the Williamsport Parking Authority’s debt,” Livermore said.

Councilwoman Liz Miele, chair of the finance committee, asked if that was about $3 million worth of debt.

“It is not a large payment every year,” Livermore replied. She asked not to be held to the exact number but said she believed it to be between $35,000 and $40,000.

It evoked a response from Miele.

“So, theoretically they’re into us for about $150,000,” she said. “We are the primary lienholders if the parking authority defaults on that debt — that is correct?” Miele asked.

“There’s been some conversations between the city administration and the parking authority and they have their documentation,” Livermore said. “I am not sure where it is going from there.”

Councilman Eric Beiter, vice president, asked about the balloon payment to the Federal Transit Administration. The city had to repay the FTA over $1.4 million due to a prior city administrator’s misdeeds regarding federal grant monies spent on non-transit-related projects. That official, William E. Nichols Jr., 72, pleaded guilty to felony theft by failure to make required disposition of funds and tampering with public records on May 5, and received a one-year sentence of probation from a Dauphin County judge. Slaughter fired Nichols in January, 2020.

Nichols served eight administrations. The state attorney general concluded no evidence found by the grand jury that Nichols personally benefitted from any of the misallocation of more than $500,000 in grant funds.

But the cost was a considerable added burden to the city already facing a deficit budget in 2026, according to Gordon Mann, managing director, Public Financial Management Group (PFM), of Philadelphia. The firm is assisting the city on its five-year strategic management planning grant process.

Livermore said the FTA balloon payment is being taken from the city emergency and reserve fund.