Concerns raised over Phoenix Volunteer Fire department finances

HOLLIDAYSBURG, Pa. (WTAJ)– New questions are being raised over how the Phoenix Volunteer Fire Company handles its finances.

These concerns come as the fire company is requesting more funding from the borough to purchase a new fire engine. Volunteer firefighters filled the room on March 14 at the Hollidaysburg Borough Council meeting. Many were there to show their support for the fire company and support the possible purchase, but the request comes amid claims of money mismanagement.

“It appears that they are very dedicated firefighters. It’s the administration that they’re lacking,” Regis Naile with the Hollidaysburg Community Watchdog organization said.

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Naile is among a group of residents who question whether the fire company is responsible enough with its finances. Their concerns began a couple of years ago, when the former chief, Anthony Dibona, and treasurer, Benjamin Rhine, were both convicted of embezzling money through a federal grant.

“It was a federal grant program designed to recruit new firemen in the area,” Naile added.

A state audit conducted in 2020 and released in 2022 found serious deficiencies. These included undocumented expenditures, inadequate record-keeping and a failure to maintain state sales tax exemption, despite operating and fundraising as a non-profit 501-3c.

That audit also found that the fire company had failed to take corrective action to address problems identified in a previous audit. The question now being raised by Naile and other residents is if anything has changed.

“Since we pressed the issue, the fire company has given the borough the information needed for the amount of money that the borough gives them,” Naile said. “All of the other money, we have no information from that whatsoever.”

At the borough council meeting, Assistant Chief Eric Schmidt indicated the department’s financials are in order.

“There was an allegation that we didn’t file a 990 for 2022,” Schmidt said. “I have the 990 that was filed in 2022.”

But some council members want more documents, including an itemized list of how the requested funds would be spent. Some members of the fire company also voiced their concerns at the meeting with the Hollidaysburg Community Watchdog group.

“They need to let it go,” One Phoenix Volunteer Firefighter said. “The only thing they’re doing is hurting the community by putting a bad name on the department who doesn’t deserve it. If you want to go after someone, go after some of these watchdogs barking up the wrong tree.”

When Councilman William Kitt asked why the fire company doesn’t open their books for full transparency during the discussion, he didn’t get a clear response.

“My guess is there are no books,” Naile said.

The meeting was ultimately disrupted when a house fire call came in, and several members of the fire company left the meeting to respond. While everyone in the room was in agreement that the fire company is necessary and that most of the members are doing a great job, critics say that financial oversight is key to the company’s success.

Vice President of Council and Phoenix Fire Department member Brady Leahey says he would be in support of the department providing more transparency in their books, but not for all to see.

” I don’t know if it needs to be open to the public,” Leahey said. “I mean there’s a lot of, I mean the watchdogs they got an account. Why don’t they make theirs public.”

It was proposed by one council member to have a sit-down discussion with all sides to sort out the issue. Leahey says he is skeptical if this would work because the two sides may be too far apart.

“It’s just a few people making life tough on the fire company right now,” Leahey said. “They have reservations about the fire company for whatever reason.”

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WTAJ made several attempts to contact the Phoenix Volunteer Fire Department over the past two weeks but received no response. There’s still no decision as to whether or not the council will approve more funding for a new engine, but it is expected to be discussed at next month’s meeting.

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