finance

City Manager Jason Molino told us a bit more about the announcement made by the city earlier today that the Internal Revenue Service had placed a lien on a City Hall bank account. Molino said the lien was the result of a "reporting error," and that the city's cash flow and debt were not affected.

"Payroll taxes are filed every three months," he added. "When you file a report with the IRS, the payroll needs to be equal to what was reported."

In the case of the payroll reported for the second quarter last year, the report was in error: that is, the numbers didn't match. Molino said that it was a one-time mistake.

"We've done the paperwork to correct the error," he said. That means that any financial penalties that may have been levied by the IRS would be revoked.

Molino said he could not comment further on the departure of Deputy Director of Finance Shelly D'Alba — also announced today following an executive session of the City Council this morning — including whether D'Alba was fired by the city or resigned.

The amount of the lien was not readily available, said Molino, though it should be provided to The Batavian soon.

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From WBTA earlier this afternoon (following reports that the City Council "hastily" met in an executive session this morning to deal with a "personnel issue"):

The Internal Revenue Service placed a lien on a Batavia City Hall bank account due to an error in a payroll tax report. The error, which occurred in the second quarter of last year, was recently discovered by city hall management and has now been corrected.

City Manager Jason Molino told WBTA that Deputy Director of Finance Shelly D'Alba "is no longer emplyed by the city," though there was no indication of whether D'Alba was fired or resigned his position. Also, though D'Alba was in charge of filing the payroll tax reports, Molino cautioned that "it would be wrong to link D'Alba's departure from City Hall to the payroll tax reporting error," writes Dan Fischer. The result of the lien was "human error," according to Molino, indicating that there were no criminal acts.

Get the full story at WBTA, plus an audio file of City Manager Jason Molino explaining the situation.