Township supervisors were updated on 70 percent reduction of earned income tax revenue and other default issues by Don Wilkinson/Centax, during last week's meeting.
Township secretary and treasurer Carlene Price said the township only received $14,935 of revenue from the earned income tax distributed by Don Wilkinson/Centax.
"This is a 70 percent reduction from last year," Price said. "Centax has only given us about 30 percent of what we are owed."
The problem is not limited to Lake Township. Price, a voting delegate with the Luzerne County Tax Collection Committee (TCC), said many other municipalities are in the same predicament. As of July, Centax is holding $5.8 million, which has not been distributed. It is being held in a clearing house, Price said.
"They are not equipped to handle this," Price said of Centax
Plus, Price said, Centax has not cashed the township's checks for payments on their employees, issued for the first two quarters of the fiscal year.
The Luzerne County Tax Collection Committee gave 90 days to rectify these issues. This time period ended on Aug. 14. Centax is currently in default.
Price said the township has been advised to notify its bonding company "in case any costs are incurred due to their negligence for lost earned income tax."
"Fortunately, we have been able to stay in the black," Price said.
Also, Price said residents of various municipalities reported they have not received refunds from Centax after filing their taxes.
Price advised any township residents who may also be affected to call Centax's solicitor by using Centax's main number, 1800-4centax.
Don Wilkinson/Centax, of Bridgeville, near Pittsburgh, was hired by the county to handle tax collection, reconciliation and disbursement.
The TCC will meet Aug. 22 and an agenda item is going to be the Centax contract and whether it should be voided due to their default.
In other matters …
• The official Lake Township website is functional. Residents can visit www.laketwppa.com for a listing of upcoming events, recycling schedules, approved minutes from prior meetings and announcements.
•A new health insurance package from Lupas Insurance was accepted in the amount of $4,612, with an effective date of Aug. 10 and a workers' compensation package in the amount of $4,490. Price said this will save the township about $30,000 per year.
• Four bids were received for work to a section of Sorber Mountain Road. The bids were from Pikes Creek, $70,242.50; Pennsy Supply, $113,670; Popple Construction, $52,276; and B&J Paving, $74,163. Supervisors awarded the contract to Popple Construction.
• BP Wind Energy was approved to do repairs to Sober Mountain Road which the company used in the development of the windmill project in Noxen.
• Fall clean up is scheduled for 9 a.m. to 2 p.m. on Saturday, Sept. 8.
• Supervisors approved a motion to open a debit card account for the purposes of making deposits with First National Bank.
• The next supervisors meeting will be held at 7 p.m. on Sept. 12 in the municipal building.