The financial woes coming from City Hall continue to mount....and now it’s
been revealed that The City council owes over three hundred and fifty thousand
dollars in Social Security Contributions.
A large portion of this is reportedly contributions that employees have deducted
from workers salaries but have been withheld by the council. It’s actually
an offence to with-hold those payments and to be honest it’s just plain
chancey – but the council issued a release today saying that it is trying
to pay up and that the employees’ benefits were never jeopardized.
A release issued by the council puts the blame at the doorstep of the City’s
Director of Financial Services Dwain Davis. It says that he acknowledges that
the council owes Social Security $364,329. Incredibly, the release says that
this third of a million dollars in arrears was not brought to the attention
of the Mayor or her council.
It says that the Financial Administrator met with Social Security and agreed
to settle the debt between December 2008 and May 2009 – when the council
collects the most revenue. The release says that between December and January,
four payments have been made amounting to eighty-eight thousand dollars about
a third of the debt – leaving the outstanding balance at $275,000, a cool
quarter million dollars.
The council’s release stresses that at no time were benefit payments
to employees jeopardized – but the truth s that has more to do with Social
Security regulations – because Social Security will honor an employee’s
claim even when the employer has failed to keep current with payments.
And in its defence, the council says that when it took office in 2006, it had
to pay off $307,000 in arrears accumulated by the last PUP council. That’s
fine and good, but if we’re not mistaken, the public’s judgment
- severe as it was – was issued upon that council’s performance
in 2006.