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Dunmore Council approves movement of Sewer Authority proceeds into Fidelity account; Treasurer reports June dip in revenue
Summary
Council approved moving some of about $3.8 million in Sewer Authority proceeds from FNC Bank to Fidelity for professional management to maintain banking relationships; Treasurer Mark Burton reported a $445,000 June net loss and a year‑to‑date net income of $2.3 million, citing lower summer tax collections and a $91,000 landfill fine payment.
Dunmore Borough Council voted July 8 to move a portion of approximately $3.8 million in Sewer Authority proceeds currently held at FNC Bank into accounts managed by Fidelity’s wealth management team.
Vice President Katherine Oven, who led the recommendation, said both FNC and Fidelity presented investment options and that moving some funds to Fidelity would allow the Borough to maintain relationships with both community banks while professional managers assist with municipal investments. "They are very competent. They work with a lot of municipalities," Oven said. Councilmember Patrick Loughney said he preferred splitting funds differently and voted against the motion; the measure passed with a single recorded no vote.
The investment action followed Treasurer Mark Burton’s June financial report. Burton said June produced a net loss of $445,000 but left Dunmore with year‑to‑date net income of $2.3 million; he attributed the monthly decline to seasonal drops in real‑estate tax collections and noted the receipt of $91,000 as the first of two landfill fine payments. Burton also cited repairs/solid‑waste expenses of about $17,000 and a $60,000 partial Minimum Municipal Obligation (MMO) payment.
Council did not provide exact dollar amounts being transferred to Fidelity at the public meeting; Oven described the total Sewer Authority balance and the goal of continuing to support both local banks. Councilmember William O’Malley referenced the expected annual yield improvement, asking whether the borough would realize roughly $100,000 more per year than previously; Oven agreed with the expectation but did not present a written yield projection at the meeting.
Council directed staff to proceed with the bank transition and continue financial oversight through the Treasurer and Manager. Loughney asked for further clarification on the split of funds before voting and recorded the lone no vote.
