Somerset commissioners ask court to resolve dispute with treasurer over funds

David Hurst, The Tribune-Democrat, Johnstown, Pa.
·2 min read

Oct. 25—SOMERSET, Pa. — A dispute between Somerset County commissioners and the county's treasurer over investments is now headed to court.

Somerset's three commissioners filed a suit against Treasurer Anthony DeLuca last week, asking a county judge to enforce the County Code and issue a declaration affirming the treasurer has no decision-making authority regarding county investments.

Both sides indicated earlier this month the dispute was headed to court, but this is the first legal action.

County Commissioners Gerald Walker, Colleen Dawson and Pamela Tokar-Ickes took the step after DeLuca declined to transfer $10 million to a Somerset Trust investment CD earlier this month.

DeLuca wanted the county to invest solely through First National Bank, which offered a slightly higher rate.

Interest rates have soared in recent months, creating opportunities for counties with adequate fund balances — and unspent American Rescue Plan dollars — to invest the money and generate revenue in the short term.

But DeLuca has disagreed with the county's choices — first a move that would have invested funds through the Pennsylvania Local Government Investment Trust and then earlier this month, by splitting the money between Pittsburgh-based First National Bank and Somerset Trust.

DeLuca refused to move the money earlier this month before a temporary compromise was reached a week ago placing the funds into a money market account while the dispute lingers in court.

The commissioners maintain they have the sole authority to decide how county funds are spent and invested. Their 14-day suit cites several County Code references that county treasurers have no authority to vote on fund transfers and that while they have a duty to deposit and transfer funds, they do so at the direction of the county commissioners.

"(T)he corporate power of each county shall be vested in a board of county commissioners," Solicitor Michael Barbera wrote in the suit, citing one section of the Code.

And that includes executive and legislative moves, appropriating funds and executing contracts, he added.

Barbera also wrote that DeLuca took it upon himself "without authorization" to open to open money market accounts for two county offices.

DeLuca maintains that as treasurer he has the right to make such moves when necessary, and said he rejected the county's request to move American Rescue Plan funds because the county could have gotten a better return through the Pittsburgh bank.

He also disagrees with the fact the county sought its own rate requests after he provided earlier ones.

DeLuca, reached for comment Monday, said his solicitor David Leake is preparing a response to the county's filing.

To Leake, there's "gray area" as to the authority county treasurers possess.

He said a court decision could be precedent-setting.