Swansea Covers Budget Shortfall With American Rescue Plan Funds

Posted 11/5/22

At a special called meeting Nov. 2, Swansea Town Council took action to address finance shortfalls and make sure payrolls are on track, according to Council Member Michael Luongo.

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Swansea Covers Budget Shortfall With American Rescue Plan Funds

Posted

At a special called meeting Nov. 2, Swansea Town Council took action to address finance shortfalls and make sure payrolls are on track, according to Council Member Michael Luongo.

Luongo told the Chronicle “it’s not unusual” for the town to encounter shortfalls this time of year. He said the council “had a civil meeting” and agreed to tap into the town’s American Rescue Plan funds to address shortages. 

The amount of the shortage has not been revealed.

“I got my paycheck,” Luongo said.

At an earlier meeting, town officials considered holding off on paying council salaries because of the shortfall. But council members did receive their pay after complaints were made that Mayor Viola McDaniel had received her pay.

The town has received two American Rescue Plan grants each totaling approximately $240,000, Luongo said. He said he would have preferred addressing the shortages through a municipal loan program that allows a town to obtain funds while anticipating tax income.

The Chronicle was unable to get a response from McDaniel on the meeting.

The financial conflicts affecting the town are continuing after Luongo and Council Member Doris Simmons filed lawsuits in August against McDaniel, Town Clerk and Treasurer Margaret Harvey and Auditor John Brown seeking an explanation for a finding in a recent audit that $3 million in town assets were unaccounted for.

Brown has since countersued, alleging he is being defamed by the action.

So far, no legal proceedings have occurred. A hearing scheduled in September was postponed due to health issues faced by Attorney Jake Moore, who is representing Luongo and Simmons.

swansea town council, lexington county government, budget issues, american rescue plan funds

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