Luzerne County’s recent purchase of a new payroll processing system from ADP prompted questions and complaints during Tuesday’s on-the-road council meeting in Hazleton.
The administration said the program will replace the county’s labor-intensive paper system with a more efficient computerized version.
According to the contract, human resources management company ADP will receive a one-time implementation fee of $197,650 to set up the program; up to $71,565 for implementation-related travel and expenses; and $5.50 per employee monthly, which would amount to $92,400 annually with the county’s estimated 1,400 workers.
Citizen Brian Shiner questioned how the county will come up with additional funds for the expense, saying an earmark of only $150,000 was identified in the council-approved budget. He also said the public had been told a computerized payroll module was included in the county’s $1.28 million financial software program purchased from Michigan-based New World Systems Corp. in 2012.
County Manager C. David Pedri, who signed the contract, said the expense will be covered by budgeted funds and was thoroughly reviewed. However, he said he would provide a detailed response to questions about the source of the funds and what the New World system can and can’t provide at a later date because he didn’t have the contract details with him at the meeting.
Citizen Walter Griffith maintained council should be grilling Pedri about the contract. He also urged council to halt the administration’s plans to spend $150,000 on a county website redesign and freeze all non-emergency capital fund spending.
Under Pedri’s new proposed capital plan, the county has $4.87 million remaining for capital projects. After eliminating and adding projects, the county would spend $3.6 million and be left with $1.26 million.
It’s unclear when county officials will be willing and able to borrow again because the county still owes approximately $325 million through 2028.
Council members have until Sept. 1 to amend the plan. They did not start discussing what projects they want to keep or eliminate Tuesday, saying they will address the specifics at future sessions.
Councilman Rick Williams said new projects must be carefully weighed because the plan, as proposed, means the county’s only option may be more borrowing if the $1.2 million doesn’t cover capital needs until existing debt is paid off in a decade.
Citizen Mark Rabo suggested county officials deposit money they recoup from an expired tax-break program into the capital fund.
The money is from a Tax Incremental Financing, or TIF, program in which the county, Wilkes-Barre Area School District and Wilkes-Barre Township temporarily sacrificed property tax revenue from new development along Highland Park Boulevard and at the Arena Hub Plaza in the township to fund infrastructure improvements on Highland Park and Mundy and Coal streets.
Pedri said the county is entitled to approximately $1.4 million. He said he will brief council on plans to recoup the money at its June 27 meeting. The city did not sacrifice revenue for the program, but some city officials have argued money should be left in the pot to further extend Coal Street.
Council members can opt to deposit TIF receipts into the capital plan, Pedri said, noting he advocates earmarking the funds for deficit reduction as originally planned. The county is carrying a deficit pegged at $9.4 million at the end of 2015. The status of the deficit will be divulged in the 2016 audit slated for release June 30.
