Our neighbor to the west received some very bad news Monday night at a City Council meeting. The projected $9 million dollar budget deficit will now be more to the tune of $17.2 million. The city will run out of money by November!
Reading also needs to add $900,000 to next year’s budget to begin paying off a loan. (Pottstown residents will relate to this.) The city borrowed $11.5 million from the sewer fund to pay bills. In Reading’s case, they are not allowed to do this after a 2004 ruling by a federal judge and the U.S. Department of Justice. Now Reading is scrambling to pay the money back before fines are levied.
Reading is suffering from the economy and bad financial practices which hamper City Council’s ability to make good decisions. Hopefully the help they receive under Act 47 will allow Reading pull themselves out of their current financial abyss.