The city redevelopment authority is facing a number of financial difficulties despite being freed from its largest debt in 2015.

The authority has more than $92,000 in bills that are separate from its debts on the Penn Theater and another lot on Main Street, according to solicitor Tom King.

About $12,000 of that is owed to three past and present employees for back wages.

“The board’s going to be faced with some difficult decisions going forward,” King said. “But you can’t continue to owe money.”

King said the authority did not pay on multiple obligations in 2015, including federal tax withholdings on the salaries still owed to its employees.

That money, King said, is due when salaries are earned, not paid.

“You can’t just say we owe you ‘x’ number of dollars,” he said. “We need to get this under control.”

The authority has one employee, Veronica Walker, who is the secretary and manager.

Former executive director Art Cordwell resigned in the fall but has continued to work as a volunteer. Another employee has done the same.

The authority previously was the owner of Kelly Automotive Park and owed about $1.6 million on the ballfield.

However, the city Parks, Recreation Grounds and Facilities Authority took over the mortgage on the park in November in a deal with Dollar Bank.

The redevelopment authority lists $148,550 in projected income in its proposed 2016 budget and $104,222 in expenses.

However, those expenses did not include the $92,335 in operating debt or the mortgages on the Penn Theater or its lot at 150 S. Main Street.

The authority has a $250,000 mortgage on the Penn Theater. But King said the amount owed exceeds the face value of the mortgage due to interest rates.

“That has not been paid in quite some time and is in significant default,” he said.

Pittsburgh History and Landmarks Foundations holds the debt on the former theater.

The authority also owes money on the grassy lot at the corner of Main and Cunningham streets. A landscaping company will lease the space for nine months this year for $1,300 per month.

The board had a nearly hourlong executive session during its meeting to discuss possible litigation issues with its financing. King said another meeting will be next Friday at his office.

Despite the financial struggles, the board members said they are working toward solutions.

“We can definitely come out of it,” Chairman Fred Reese said.

Cordwell said his proposed budget would end 2016 with its outstanding debts cut to nearly $48,000.

King said the authority’s issues stem from reduced state funding in recent years.

“Having a major source of income go away means we need to operate differently,” he said.

The board voted to sell its office at 115 E. Cunningham St. It bought the property for about $92,000.

However, the state later told the authority it cannot use state funds to pay for the office, so authority instead has paid the mortgage payments through its administrative funds.

The move to sell the building coincides with the city’s desire for the authority to relocate to the office space of the tier parking garage where Butler County Adult Probation previously was.

Mayor Tom Donaldson has said he hopes both the authority and Butler Downtown can work together at the site.