One of the requirements of a financially distressed city ought to be keeping a close watch on the money.

But it was revealed this week that New Castle had collected just 58 percent of its anticipated wage tax through September. According to the city’s 2008 budget, it expected to take in nearly $2,675,000 during the year.

The year, of course, is not over, so additional wage taxes will come in. However, this was a strange conversation to be having at a city council session in November.

That’s especially so when it was revealed that one factor in the lagging collections is the fact some employers aren’t submitting the proper amount of tax. City residents who work must pay a 2.2 percent wage tax, while non-residents have a 2.1 percent rate.

According to chief financial officer Stephanie Dean — who just recently came on board with the city — as many as 20 companies in New Castle are submitting taxes at rates lower than the required amount.

This means the city isn’t getting what’s it should. It also means workers for these firms will be hit with a bill when they file their tax returns next year.

New Castle did not boost its wage tax until the second quarter of the year. But there has been ample time to note a problem with collections and inform those businesses that somehow missed that tax hike memo.

Taxation is an unpopular subject. And one sure way to make matters worse is to handle it in an unfair or sloppy manner.

If taxpayers are facing different collection rates within the city, it will generate animosity and suspicion. At this point, city officials should be doing all they can to assure residents and businesses that municipal government is working hard on efficiency and accountability. Slow action to correct tax collection problems sends a completely different message.

The situation is compounded by the fact non-residents who aren’t paying the required amount may avoid some of the tax. The city will have a hard time collecting from them as individuals. So depending on where you work in the city determines the rate of tax you will pay. What sort of sense does that make?

Plus, if some taxpayers face an unanticipated bill from the city next year, how will they respond? We assume it won’t be with a smile.

New Castle has enough difficulties operating under Act 47 without adding to the mix with lackadaisical tax collection. It’s long past time to remedy this problem.