Monessen deficit hits $345K; Shorraw, Coles still no shows

By Kaylie Moore
kmoore@yourmvi.com
Monessen faces the “daunting task” of overcoming a $345,000 deficit from 2017 which continues to grow, council learned Thursday.
Accounting firm Cypher & Cypher stopped by to present the city’s latest audit report.
Through Dec. 31, 2017, city revenues totaled about $3.4 million, while expenditures totaled more than $3.8 million.
Auditor Steven Cypher said the city only saw a net change in its overall fund balance of about $60,000, however, because of its sale of the former Monessen Municipal Complex.
“What concerns us is, you don’t have another sale pending to help you finance city operations,” Cypher said. “You have refinanced your debt, but that’s not likely to make up for a loss of a couple hundred thousand each year.”
Cypher said his firm “preaches fund balance,” because it’s the city’s working capital and contingency fund.
“It gives the mayor and council the ability to make the City of Monessen better tomorrow than it is today,” he said. “Right now, you’ve got about $600,000 to make up to be at the recommended minimum, and that’s a daunting task to achieve.”
While the city’s 2017 expenditures were $235,000 less than expected, Cypher said, its revenues were $252,000 less than expected, as well. The city did better in department earnings and property tax revenues than anticipated, however.
“You need to find the amount you need to run the city,” he said.
The firm identified key points for council to improve upon, including segregation of duties, bookkeeping, payroll entries, accounts payable, bank reconciliation, invoice approvals, real estate tax allocation, inter-fund balance transfers, vendor accounts, bank accounts and others. Council agreed to review the audit in-depth and report back to Cypher for its next steps.
“We need a lot of help financially, that’s for sure,” Councilwoman Lois Thomas said. “Little by little, we’ve got to get out of that hole.”
City solicitor Joseph R. Dalfonso said, while council members should be concerned, he believes they will “work to the fullest of their ability” to address the audit findings.
In another matter, Thomas and councilmen Anthony Orzechowski and Dave Feehan unanimously approved adoption of a new Quality of Life Ordinance.
Mayor Matt Shorraw missed his 10th consecutive meeting Thursday. Councilman Gil Coles also remained absent, having only attended one meeting since February.
The ordinance will govern certain property and maintenance violations, including waste and garbage accumulation and disposal; storage of unlicensed, unregistered, inoperable or disassembled motor vehicles; outdoor placement of indoor furniture; yard maintenance; snow and ice removal; proper refuse storage containers; proper recycling procedures; and address identification requirements.
Dalfonso said council and city code enforcement still have to work out a ticketing system.
“I believe there will be warnings issued first,” he said. “Keep in mind, this ordinance covers all the code violations that are in use right now.”
The new ordinance allows code enforcement to issue the equivalent of a parking ticket, rather than its traditional violation notices.
“There are a few new things in here, so this isn’t going to be up and running tomorrow,” Dalfonso said. “Council and the code department will inform everybody of what the changes are.
“This may work; it may not work, but it’s something better than the city had yesterday.”
In other business, council approved:
• Adoption of a new planning commission ordinance, outlining its powers, duties and jurisdiction, as well as number of appointments and member term limits.
• A request by the Mon Valley Opioid Coalition and Monessen police to host a parade Sept. 27 and close Parente and Grand boulevards for Mon Valley National Night Out.
• The hiring of five part-time police officers: John Dytko, Cody Klempay, James Stoken, Gino Faieta and Dominic Faieta.
• Authorizing Mackin Engineering to move forward with development of the city’s comprehensive plan at a cost not to exceed $100,000.
• Reimbursement of $9,350 total to the state for the excess aid received for the 2016 fire and police pension plans, as required by Pennsylvania Auditor General Eugene DePasquale.
• Reimbursement of $54,290, plus interest, to the police pension plan for the overpayment of benefits between April 2016 and July 2017, as required by DePasquale.
• Free parking at all street meters and metered lots on Donner Avenue, between Fourth and Twelfth streets, through the end of the current construction project.
• Acceptance of the donation of the former Pumpkin Patch property on Dennis Avenue from Robert Dojonovic.