Verona finance director Jerry Kenna resigns, council hires new bookkeeper, payroll service

Mar. 11—Verona finance director Jerry Kenna has resigned from the borough, again.

The former borough manager turned money manager submitted his resignation via email, which was read by council President Nancy Carpenter at at council's March 9 meeting.

"Due to the growth of my business and my family, it is time to move on," Kenna wrote. "Best of luck in your future growth and development."

Kenna, 36, of Oakmont pledged to stay on board through the end of the month to assist in completing the 2020 borough audit. He did not participate in the virtual meeting.

Carpenter and Councilman Ray Suchevich thanked Kenna for his services.

"It's a lot better since he took over," Suchevich said of Verona's financial standing. "Whether a lot of people agree with that or not, I think Jerry did a very fine job."

Borough business owner Stefani Garibay disagreed, saying Kenna put the borough in "a difficult financial situation" and hopes he is "held accountable for his actions."

Garibay questioned how the borough missed its minimum municipal obligation payments to the police and nonuniform pension fund.

Carpenter said the borough owes about $80,000 for missing the last two years' payments, and Verona would get that money back in state aid.

"We might have to be tightening our belts in every facet we spend money," she said. "Things are going to get straightened out."

Kenna said March 10 that he submitted documents to the state both years, but aid was never sent back. That aid would have taken care of the payments.

"I filled out what I understood was the correct paperwork and never received the state aid," Kenna said. "Once you receive it, you have 30 days to roll it over into your pension fund. We never received it."

He also briefly talked about how the borough has prospered over the years with him watching over the finances.

"As treasurer of Verona since 2013, I've been an instrumental part of the growth and financial well being of the borough," he said via email. "Over the past several years, because of the improved financial condition of the borough, we've been able to secure millions of dollars in state grants.

"The discussion of the pension has been brought to my attention, and I am continuing to work with borough council to resolve any discrepancies prior to my resignation on March 31."

Resident Kim Roller during the council meeting questioned who was responsible for the error, and said the borough would have to take money from the farmers market and other events to help pay for it.

Vice President Dave Matlin said an interest payment for missing the minimum municipal obligation is around $10,000, and that was not budgeted. It will be paid from the general fund.

Another $10,000 interest payment was made last year to cover the first missed payment.

"We're ultimately responsible for ensuring that these fiduciary responsibilities are taken care of and fulfilling the obligation to the pension plan," Matlin said. "Now that we've been made aware, we're doing everything we can to correct that and focusing on the future and moving on to ensure that this thing doesn't happen."

Kenna declined to respond to Matlin's comments.

Council in December passed this year's budget with no tax increase. It also accepted Kenna's first resignation that month.

He was borough manger at the time. Council agreed to rehire him as finance director while the borough searched for a new full-time manager.

This year's budget has $70,000 allocated for a manager and $24,000 for accounting services.

Kenna took over as manager for Mark Stanton, Verona's current code enforcement officer, in 2016.

He served the borough part time and operates a finance business in Oakmont. Kenna launched the company in 2007.

Matlin announced bookkeeping and payroll services proposals from several companies during the meeting.

Council decided to go with Bookminders of Pittsburgh at an annual cost of about $20,200.

Proposal documents show there is start-up fee of $5,000 and a $2,000 fee if the contract is terminated within 12 months.

Council also unanimously approved a payroll services proposal from Paychex at an estimated annual cost of $2,620. Another payroll proposal considered was from ADP at an annual cost of about $2,900.

"Our employees need their paychecks," Suchevich said. "We can't play around too much, too long."

Matlin said the borough had to take action during the meeting to ensure there would be no financial recording issues in a few weeks.

"It's something that needs to be continued as seamlessly as possible after (Kenna) ends his service," Matlin said. "Paychex was our payroll provider before 2020."

Council in January hired a consultant to help them with their search for a full-time borough manager and related financial transitions.

Verona contracted with Susan G. Hockenberry Coaching and Consulting through April 30 at a cost of $3,200.

Hockenberry is the executive director of the Quaker Valley Council of Governments and launched her own consulting practice in 2019.

Matlin said the manager search has been put on hold so the borough can focus on more immediate concerns with the transition to new bookkeeping and payroll services.

Michael DiVittorio is a Tribune-Review staff writer. You can contact Michael at 412-871-2367, mdivittorio@triblive.com or via Twitter .