BY STACI WILSON

Montrose Borough Council discussed at the Monday, July 3 meeting the County Tax Collection Committee’s recent move to terminate its contract with Centax – the firm hired to collect earned income taxes inSusquehannaCounty.

Councilman Craig Reimel, who serves on theTCCas the borough rep, said Susquehanna County was one of 12 counties in the state to sign on with Centax “based on erroneous information.”

On June 28, theTCCsevered ties with Centax after the firm failed to deliver expected revenues to the municipalities and school districts in the county since taking over the accounts in Jan. 1.

“Several things went wrong,” Reimel, who also owns a Montrose based business, said. Unprocessed checks were returned to his company because “(Centax) could not figure out where to send the checks.”

Reimel also reported that Berkheimer Associates has stepped up to take over the earned income tax collection services inSusquehannaCounty. Montrose Borough utilized Berkheimer for its EIT collection prior to Jan. 1 when it was mandated by the state that only one company process EIT collection in a county.

Reimel also reported that theTCCdoes have a $500,000 bond it will take Centax to court to collect on the outstanding or unaccounted for revenues.

“Fortunately, we have a little bit of a cushion,” Reimel told his fellow council members. “Many municipalities have none and are having a hard time. This is the culprit.”

Council voted to sign an agreement with Penelec in an effort to move ahead with placing cameras in Memorial Park. The cameras will be mounted on Penelec poles.

Council will also be advertising to take bids for the roof repair project at the borough garage and voted to pay project engineering fees to Francis Fruehan for his work.

Bids for the borough’s surface treatment project for the streets were opened with the project being awarded to Vestal Asphalt at the low bid of $46,244.43.

Council members and Street Dept. Supervisor Ken DiPhillips also discussed water that is seeping up though the pavement onWilson St.

Councilwoman Julanne Skinner said the problem began after the catch basin was moved from the street’s intersection withSouth Main St.

DiPhillips said the water has been tested for chlorine and sewage in an effort to locate its source but it appears to be fresh water.

The street department plans to excavate the area, fill it with gravel and pipe it to the drainage basin, DiPhillips explained.

Although no public comment portion was listed on the meeting agenda, Council President Tom LaMont called for public comment from “borough residents.”

One audience member confirmed Skinner’s report that the water seepage onWilson St.became worse after the catch basin was relocated.