Coatesville City Manager Harry Walker was able to convince the majority of city council Monday night to transfer $1.5 million from the city's diminishing Trust Fund, but failed to sell the need to layoff off 11 city workers which council unanimously rejected.

The unanimous vote came despite city Finance Director Stacy Bjorhus' warning that the city may not be able to meet payroll next month. According to Bjorhus, the city will be short $900,000 by year's end. The city's monthly payroll, according to figures released by the city, is $316,000. She said the layoffs would make the city more efficient.

Walker said the layoffs would save the city $440,000 annually in salaries and benefits.Walker wanted to layoff 2 in the Codes Department, 1 in Administration, 1 in Finance, 2 in the Recreation Department and 3 police radio dispatchers and 2 crossing guards.

After the meeting, Walker said he could still follow through with the layoffs despite councils unanimous stand against him. "I could, but I won't," he said. Walker said he had the authority under the city's Home Rule Charter. "It's (the layoffs) inevitable. Where are they going to get the money."

Council Member Ed Simpson objected to the layoffs because those Walker targeted had more seniority than some employees being kept on the payroll. Simpson also questioned how much money the city was paying consultants. At Simpson's urging, council approved a motion to have the Finance Department prepare a detailed accounting of money paid to the city's two solicitors, Andrew Lehr and Martin Powell, and to SRG America and Relevante, two consulting firms. Simpson had wanted a detailed accounting of all consulting firms used by the city; however, he amended his motion when it appeared his motion would fail.

Walker highlighted a letter form the secretary of the Department of Community and Economic Development (DCED) that warned if the city doesn't face up to its severe financial challenges its capacity to deliver the most basic services will be threatened.

DCED warned that unless the city lowers what it termed "the uncompetitive tax burden" it will continue to undermine redevelopment and force residents to flee the city. The city has the highest real estate and earned income taxes in the county while having its poorest population.

DCED said it and other state agencies were willing to help, but it is up to the city and its government to demonstrate fiscal responsibility.

An earlier report prepared by Fairmount Capital Advisors warned that unless the city cut is operating costs and and undertake a zealous redevelopment program, the city could face deficits of $13 million over the next decade. Walker said Monday night that his administration has "worked diligently to implement and achieve its (the Fairmount report's) most challenging recommendations.

Coatesville's ailing finances are not new. The Fairmount report warned that the city facing economic disaster if it could not bring about meaningful redevelopment that would provide a needed boost in the city's tax base which has largely remained unchanged over the last 20 years. Since the present council was elected four years the city's once heralded $800 million redevelopment has become a distant whisper.

Walker referenced the economic conditions in Reading to highlight that Coatesville isn't the only municipality in Pennsylvania undergoing severe economic woes. Recently, said Walker, the mayor of Reading requested the city be declared a distressed city under the state Municipal Recovery Act. DCED, according to Walker, said the city cannot fulfill its responsibilities for the health, safety, sand welfare because of its increasing deficits.

Monday night's council meeting started 35 minutes late due to an extended executive session, part of which Walker and City Solicitor Andrew Lehr did not participate.