The Shenandoah Borough Council convened Monday evening to tackle a full agenda focused on financial accountability, public safety, infrastructure planning, and administrative updates.
Audit Update Reveals Significant Financial Irregularities
A major portion of the meeting centered on a 2024 audit update delivered from a report by CPA Sam Deegan, who outlined several areas of concern involving payroll practices, insurance oversight, and the handling of federal COVID relief funds.
Key findings included:
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Inappropriate Payroll Payments: An analysis tied to a potential bond claim found that two non-public safety employees continued to receive full payroll while also collecting workers’ compensation benefits in 2021, 2022, and 2023. Such dual payments are typically only permitted for police and firefighters under the Heart and Lung Act. The auditor noted the practice was “not appropriate.”
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Lapsed Insurance Payouts: The former borough manager issued $10,000 in payments to families of former employees after their life insurance policies were allowed to lapse without proper renewal.
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COVID Funding Risk: Approximately $144,000 in federal COVID funds may be subject to repayment due to prohibited uses. These include:
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$52,000 used to settle a lawsuit
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$92,000 to reimburse fire escrow insurance checks
Council members noted that warnings against these types of expenditures had been documented but disregarded.
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Police Pension in Critical Condition
Information was revealed regarding the borough’s police pension, which they reported is currently underfunded by $895,000. Seven of the 11 active beneficiaries are receiving disability pensions, further straining the fund.
With an 8% interest rate on the deficit, officials said a significant lump sum payment will be required soon to avoid “serious problems in 2–3 years.”
The non-uniform pension, while overfunded, is still incurring unnecessary costs because several former employees were never officially removed from the rolls.
Engineering Budget Overruns Total More Than Half a Million Dollars
The borough also discussed substantial overruns in engineering costs:
- 2023 deficit: Over $125,000
- 2024 deficit: Over $79,000
Combined with prior years, engineering-related deficits now total more than $500,000 across three years.
New Noise Ordinance Adopted
Council unanimously adopted a new ordinance aimed at curbing unnecessary and disruptive noise, including excessive horn use, loud music, shouting, and persistent animal noise.
Enforcement procedures include:
- Residents must call the 911 center to file a complaint.
- Police will issue a warning on the first call.
- A citation will follow on repeat calls.
- Complainants must be willing to testify in court for citations to be legally enforceable.
Proposal for Land Swap and Veteran’s Home Discussed
Council also heard a proposal regarding a potential land swap involving the former JW Cooper School site, which could pave the way for the construction of a veterans’ home.
Proposal Overview
The idea was brought forward by the borough manager following discussions with Gary Bender and Ron Zimmerman. The proposal involves swapping:
- The borough-owned JW Cooper School site, and
- Two privately owned parcels identified as the former Jefferson School, the old slaughterhouse, and an adjacent property.
The borough manager expressed strong support for using the site to create a VA home, citing the county’s limited veteran services as “appalling” and calling the project a “wonderful tribute” to the former school.
The county would reportedly handle the required paperwork.
Council agreed that more information was needed before considering approval.
Roadwork Strategy Shifts Focus Away From Full Reconstruction
Due to the high cost and infrastructure damage caused by deep milling during previous road projects, the council approved a new approach to street maintenance.
Key changes include:
- Future CDBG funds will shift from road reconstruction to blight remediation.
- Borough crews will take on more street work internally.
- Milling will be limited to five inches, reducing disturbances to aging underground pipes.
Officials noted that deeper milling in previous years contributed to major pipe breaks and high repair costs.
Water Authority Mapping and Engineering Costs
The borough is now facing approximately $100,000 in outstanding bills for unspecified “maps” related to the water authority sale. The manager reported that no documentation exists explaining what the maps were for, who ordered them, or why they were necessary.
Another $52,000 was paid to Pennoni Associates for an engineering assessment connected to the MAB sale. The manager questioned the justification for this expense, noting that the borough did not authorize the work and that the purpose of the assessment remains unclear.
Appointments and Administrative Actions
Several appointments and administrative items were finalized:
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Zoning Hearing Board:
Edward J. Kolonsky Jr., a retired doctor, was appointed to fill a vacant seat. -
DSI Address Assigned:
Council approved 115 North Main Street as the official address for Downtown Shenandoah Inc.’s Center for Education, Business and Arts (CEBA). -
Police Hiring:
A new officer, Mr. Mcklinely, has joined the department. Council aims to hire two additional officers to restore 24/7 staffing and reduce overtime costs. -
Pumping Station Project Delayed:
A $77,000 grant-funded project for a new pavilion and well at the pumping station has been delayed after the initial bid advertisement lacked required technical specifications. Engineering firm Benisch will re-advertise the project correctly. -
Blue Knob Land Sale Corrected:
Council passed a resolution affirming the sale of land to the Rod and Gun Club for $30,600, correcting a legal document that mistakenly listed the sale price as $24,600.