Tube City Almanac

July 03, 2008

No Rabbits, Just Red in City Budget

Category: News || By

City Administrator Dennis Pittman wrote a name on a slip of paper last night --- "Harvey" --- and passed it to Mayor Jim Brewster.

As in the giant rabbit from the Pulitzer-winning play and the movie of the same name starring Jimmy Stewart.

As in the "super rabbit" that City Controller Ray Malinchak says that Brewster will have to "pull out of his hat" to keep the city in the black this year.

But if a six-foot-tall talking rabbit like "Harvey" was standing by, ready to help, he wasn't speaking up at last night's city council meeting.

. . .

A combination of rapidly rising fuel costs, unexpected expenses and revenue shortfalls has the city staring into a half-million-dollar hole this summer.

As a result, Brewster said he has asked every department head to conserve resources and money. Police cars, for instance, are no longer to be left idling while not in motion.

"We can't even pave some streets right now, because paving a street which used to cost four to five thousand dollars now costs $20,000," he said. "As employees leave, we're not replacing them, which is not a good thing."

Besides escalating oil prices, the biggest unbudgeted expense this year is an unprecedented 83 percent increase in the health insurance premiums paid for about 80 city employees to Highmark, the region's Blue Cross/Blue Shield affiliate. The additional charge amounts to $620,000.

Although the city is negotiating with another health insurance carrier, Brewster said premiums are still likely to go up as much as $300,000.

. . .

Revenues are off by $150,000 --- the amount the city expected to be paid by a cellular telephone company that wants to erect a tower at the old Union Avenue reservoir.

The proposal was tabled when residents of the Seventh Ward expressed concerns about increased RF radiation the tower might generate; the mayor said last night he and council have asked for a report on the health effects of cell towers, and will have another meeting with residents to discuss the report before taking any action.

Other unexpected expenses have included emergency repairs to a collapsed sewer main on Palm Street and to the roof of the former municipal building at 201 Lysle Blvd., now used by police and firefighters.

. . .

Brewster said last night he's "working" on several things in hopes of balancing the budget. City officials say they're very close to signing several tenants for the empty offices at 201 Lysle.

And it's still possible that the cell phone tower will be erected on Union Avenue.

"But if it phases in late enough in the year, we'll get maybe $10,000," Pittman said, "and the rest will be a receivable. That $140,000 a year from now won't pay any bills in December."

The state's decision to allow the annual $52 occupation, or "emergency services," tax to be paid quarterly, rather than as a lump sum, will also hurt the city's cash flow in the fourth quarter, he said.

. . .

In Other Business: Plans to build a new regional courthouse in the Third Ward continue to progress, Brewster said.

Last week, city and county public works employees cleared weeds and debris from the so-called Capco property along Walnut Street, where the courthouse is likely to be built.

The lot holds a half-finished warehouse that was going to be used by the now-defunct Capco Construction Co.

Capco was seized by federal investigators after authorities discovered its founder, Thomas Cousar, was diverting funds and material from U.S. government projects to his own businesses.

The property on Walnut Street is now owned by the Redevelopment Authority of Allegheny County, which had underwritten a $400,000 loan to Capco.

Brewster said he's been in steady contact with Allegheny County Executive Dan Onorato and District Attorney Stephen Zappala Jr.

"Once it's completed, 35 different communities will be coming to your city to our courthouse, which I think is a tremendous thing for McKeesport," he said.

The mayor said he could not comment further on reports that the parent company of the Tribune-Review and Daily News was considering the city for the site of a $75 million printing plant.

"I'm not at liberty to discuss it, but as we get more permission, we will disclose more details," Brewster said. "It's got great possibilities."






Your Comments are Welcome!

In re: “Once it’s completed, 35 different communities will be coming to your city to our courthouse, which I think is a tremendous thing for McKeesport,” he said.

The criminals from 35 different communities will be coming to your city.
froman - July 03, 2008




The Mayor and his administration have their work cut out for them in these difficult economic times. Just think if McKeesport would have “partnered” with Don Barden to construct a casino here! It is incumbent for all of us to tighten our belts and support the Mayor’s efforts to save money. Maybe if we all resumed sweeping our own side walks, shoveling a neighbors walk, recycling and driving SLOWER we will get adjusted to the failing economy. Our grandparents and parents knew how to get along with less material things – spending time in “Porchville” and getting to know your neighbors may not be all that bad. Don’t forget Renzie Park is a great resource to simply enjoy the day – who needs a smoke filled, casino where the games of chance are rigged against you. Pinch that quarter and save as much as you can. It ain’t going to get easier regardless of who wins in November!
Donn Nemchick - July 03, 2008




As Buford “Mad Dog” Tannen said in the movie Back to the Future III,

“We got ourselves a new courthouse…high time we had a hanging!”
Chris - July 03, 2008




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