The City of Williamsport and River Valley Transit Authority have a memorandum of understanding (MOU) that includes the city owing the authority $1.6 million.

City Council approved the resolution and are presenting it for consideration by Mayor Derek Slaughter.

The city has been working with the RVTA and this is one of the many issues.

This one, in particular, city Solicitor Christopher Kenyon recently completed.

It is believed to be “fair for both sides” and both have “landed in a good place,” Slaughter remarked.

Council President Eric Beiter noticed the line in the MOU showing where the city owes RVTA $1.6 million and asked for an explanation.

“Where did it come from and how is that to be paid? ” he asked.

Jamie Livermore, city finance director, explained how RVTA paid for expenses and then the city was reimbursed.

“We have the money allocated in part of the capital projects,” she said.

The city is not using the money on capital projects, she added.

To get to this point, extensive research was done on prior financial records and documents and because of the reimbursement to the city the RVTA is owed that amount.

“Where did the money come from?” Councilwoman Liz Miele asked.

It was spent on city revitalization projects several years ago, Livermore said.

RVTA paid the expense but the reimbursement came into a city account, she said, adding how it did not get spent.

This was discovered by the work of a former financial consultant.

“It was there,” Livermore said. “It was allocated.”

It is not listed in this year’s budget, she affirmed to a question.

Councilman Adam Yoder asked the mayor and administration officials what was left in steps to fully detach the city from the RVTA.

“I think this is it,” Slaughter said.

Recently signed deeds and leases are completed.

“This was the big ticket item,” Slaughter said.

Yoder said he asked as a frustrated member of council adding “this process has been brutal.”

He said he believed it was “rushed” and had it been done slower it could have been cleaner. In this process of decoupling the city lost property and millions of dollars – due to the former convicted administrator.

“We understand how you need to be made whole,” Beiter said, addressing Noah Bower, RVTA board chair.

But he said the city is being “kicked while it is still down.”

He referred to the city also owing and making repayments of $1.48 million to the Federal Transit Administration because of the criminal misuse of transit grants by William E. Nichols Jr., former general manager of River Valley Transit before it became an authority and the former city finance director.