HONESDALE, PA — At the June 8 Honesdale Borough Council meeting, Bob Jennings told the council he had received a call from Michael Morris, who left a voicemail message saying a lawsuit in the amount of $100 million would be filed this week against council members serving in the early months of 2014. That would include some present and some former council members alleged by Morris to have participated in improper administration of Department of Community and Economic Development funds intended for a commercial building renovation. That project was described by Jennings and other council members as the “Smith-Morris Loan.”

Borough Council Solicitor Richard Henry advised the council to ask the state attorney general’s office to conduct a full-scale investigation of the matter, which sounded so complicated in Henry’s explanation of it that council members seemed unable to grasp all implications. The Dime Bank has foreclosed on the property and, according to Henry, the borough is only one of several lien holders in addition to the bank. Council President James Brennan asked, “Do I understand that Morris is suing us for a loan we extended to him?” Henry said, “Yes. He’s claiming that the money was improperly disbursed.”

The only council person qualified to dispute that claim was Scott Smith, who was responsible for the payments, but he wasn’t in attendance.

In other business, there was a unanimous vote to appoint Troy Johnson to fill the councilmember vacancy created by Harry DeVrieze’s resignation last month. A resident of Honesdale since 1973, Johnson was a telecommunications technician for 32 years before retiring in 2005. He has been working part-time at a variety of jobs since, and said in an introductory statement made prior to the council vote that his motivation for seeking a council seat is simply to serve the borough. By virtue of his appointment, he succeeds DeVrieze as chair of the parks and recreation committee and a member of the grants committee.

The mood of the meeting grew somber as the council grappled with hefty expenses and less-than-expected revenues. Brennan said that tax collection rates have lagged behind last year, which didn’t bode well for several major expenses. One is the failure of the police department’s only four-wheel-drive vehicle to pass an upcoming state inspection. Rich Doney, director of the Department of Public Works (DPW), said that the vehicle is no longer roadworthy and that he has advised Police Chief Rick Southerton that under no circumstances should it be used. If it is not replaced before the start of winter weather, police may be forced to use DPW vehicles.

Southerton also requested purchase of a metal gun safe for $1,500, to guarantee safe storage of department weapons. Noting that the police department office is unmanned most of the time, he said that weapons, including a vintage machine gun, are presently kept under lock and key in a wooden cabinet not equipped with an alarm. Southerton added that some equipment has gone missing in the past. The metal gun safe will be provided, at cost, from the state’s prison department. Brennan told Southerton, “We’re on a very tight budget now.” But Dan Barnes said, “Let me confer with finance committee chair Scott Smith to find the money.”

Southerton had more requests for the strained budget. Noting that it was becoming increasingly difficult to find part-time police officers willing to work the third shift, he suggested a shift differential that would translate into a 2 to 3% pay increase for night duty officers.