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Public criticizes HR after payroll errors, $92,000 workers'compensation audit bill; HR director defends quarter figures
Summary
Council heard an HR quarterly report that showed headcount, benefits costs and low turnover. Public commenters and a council member challenged apparent payroll and 1099‑R errors and a $92,000 audit payment for workers' compensation; the borough said staff will address the issues in a work session.
John Krauser, the borough HR director, presented the quarterly human resources report, outlining benefit participation, first‑quarter costs and staffing metrics. Krauser said 83.9% of employees participate in the borough’s Highmark Blue Shield medical plan and reported first‑quarter medical costs of $691,105 and an HSA total of $268,002.50. He reported a total headcount of 136, one new hire in the first quarter, and a turnover rate of less than 1% year-to-date.
During public comment, Ernie (Ernie) Flynn, a Ward 6 council member and resident, raised multiple concerns he said were missing from the report. Flynn said many blue‑collar employees received longevity pay combined in a single check this year without prior notice, pushing some into a higher tax bracket and leaving employees with smaller-than-expected net pay. He also said 1099‑R retirement forms were issued incorrectly for the second time, requiring reissue. Most prominently, Flynn said the borough had just paid a $92,000 workers' compensation audit bill that he described as “a colossal mistake” arising from inaccurate payroll numbers provided to the carrier.
Council members asked for clarification. Borough staff (Mr. Metrick) declined to respond in detail at the meeting but offered to address the issues at an upcoming work session where accounting records could be reviewed. Sean/Metrick acknowledged there is documentation and suggested further explanation would be provided in a work session.
Krauser’s report also included other benefits details: dental participation (~110 employees), vision participation (~111 employees), retirement plan counts (44 uniformed, 47 non‑uniformed, 91 total on the pension plan), pension labor cost figures ($3,283,004.33 for the year to date) and low participation in voluntary training (10–12%). Krauser said demographic self‑identification fields were left blank on the report because 59% of employees opted not to provide demographic data.
Ending: Committee members accepted the report and scheduled follow-up in a work session. Borough staff said they will provide further documentation and explanation regarding the payroll, 1099‑R reissues and the workers’ compensation audit payment at a more detailed finance or work session review. No formal disciplinary or contractual actions were taken at the committee meeting.
