SMETHPORT — The Erie certified public accountant who audits Keating Township financial records told the township supervisors on Wednesday night that he sees no problems with the municipality’s budget process.

Last month, the supervisors adopted the proposed 2017 budget. Supervisor Rich Tanner cast the lone “no” vote, saying, “I’m not working on a budget if it’s not clear” and called for a forensic audit by an outside party. At that time, Tanner added, “If I’m wrong, I’m willing to step down as a supervisor.”

At the November meeting, Supervisor chairman David McClain and Doug Covert voted to adopt the tentative spending plan.

Also at the November supervisors’ meeting, McClain noted that the 2017 and previous budgets were drafted the same way and without any legal problems. “This is the same action Second Class Townships have used for decades.”

McClain and Covert were confident in the budget preparations.

“I’m not aware of any problems with the township budget,” said paid auditor Alan C. Felix, CPA, in his comments to the supervisors on Wednesday. “A budget is an estimate of expected expenditures and is not intended to be a straitjacket. Budgets are based on reviews of prior expenditures and inform the citizens about the supervisors’ intentions about projects, such as road maintenance.

“At the same time, winter costs, such as overtime and fuel, are hard to predict in northwestern Pennsylvania.”

Felix also explained two different auditing procedures: cash and accrual methods.

Felix also referred to the safeguards built into the budgeting audits, saying, “There are several sets of eyes that watch the township’s expenditures: First are the supervisors, followed by the elected auditors, and then me. I’m not here to second guess the supervisors.”

According to the township, the 2015 liquid fuels audit by the state and the workmen’s compensation payroll audit were completed without issues.

When the supervisors considered final approval of the 2017 budget that amounts to about $1,077,000, Tanner stated his objections to the budget, which concerned payroll and timesheets, without offering any details.

“What do you want fixed?” McClain asked Tanner.

“You said there was nothing wrong, so let’s vote on the budget.”

The vote was a repeat of the November tally. McClain and Covert both voted for adoption, and Tanner voted against it.

The new budget calls for no tax increase.

The total tax of two and one-half mills on the dollar valuation of the lands in the township for 2017 equals $.25 cents per hundred dollars of assessed valuation of taxable property.

Two residents spoke about the matter during the meeting. Ann Baldwin said the call for a forensic audit and reported in the newspaper was unfair to the current secretary-treasurer.

Vicki Bickford, a former township secretary-treasurer, said, “A budget is a guestimate; there is nothing set in stone. I never heard of a forensic audit.”

In other matters, the supervisors approved a three-year agreement with Smethport Disposal Services for the exclusive collection and disposal of solid waste in the township. The contract begins Jan. 1, 2017 and expires Dec. 31, 2020.

The supervisors agreed unanimously to support a firefighter/EMT/criminal justice program to be offered to secondary school students in McKean, Potter, Cameron and Elk counties by pledging to provide $2,000  for five years, beginning with the 2017-18 fiscal year.

In another resolution that gained approval, the township will offer township sewer system customers in all three phases of the project an annual five percent discount if their bills in full by Jan. 31 of the current year.

During the public session of the agenda, the supervisors heard from an East Smethport resident who reported a serious water problem at two side-by-side buildings in the village.

The supervisors said they were aware of the problem and will keep working to solve the issue.

An update of Phase II of the township wastewater treatment project, the Hilltop area, showed that 94 percent of the customers have paid for their grinder pumps and 329 have been installed.

Supervisor Doug Covert, said, “We did a walk-through of the plant, and everything is working properly.”