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The Lackawanna city treasurer is resigning and Mayor Thomas E. Radich is proposing the elimination of the position and transferring the duties to the director of administration and finance.

Kathleen A. Taylor, treasurer for nearly nine years and a city employee for more than 13 years, is resigning effective Dec. 31. She said she is moving to Olean, where her husband, Gerard, has accepted the position of postmaster.

The main job of the treasurer is to collect current and back taxes, and Mrs. Taylor has butted heads on more than one occasion with leaders of a tax revolt in the city.

She said encounters with some business people who are withholding taxes in protest of city taxing and spending policies had nothing to do with her decision. Rather, she said, she is leaving only because of her husband's transfer.

"It's been a pleasure working here," Mrs. Taylor said Tuesday. "I've lived here all my life and it's hard to leave. I'll miss many of the people."

Radich said Mrs. Taylor "has always distinguished herself as a dedicated, hard-working and competent employee" and has done "a remarkably capable job."

In a letter Tuesday to the City Council, Radich asked that it approve the necessary legislation to permit consolidation of the posts.

Radich proposed that the finance director's salary be increased from $31,370 to $42,000 a year to compensate him for the additional responsibilities. Elimination of the treasurer's salary of $31,256, plus fringe benefits, would more than offset the additional cost, Radich pointed out.

Radich said he believes Finance Director Robert Dombrowski is not adequately compensated for his current job, which also includes being purchasing director, and it would not be fair to require him to take on additional duties without a salary increase.

Radich also said he is studying the possibility of moving Dombrowski's office from the third floor of City Hall to the second floor and consolidating the treasurer's, purchasing and administration and finance offices.

The moves would cut costs and improve efficiency, Radich said.

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