Top 10 local stories listed
The following is a list of the top 10 stories of 2002, as decided by the Herald-Standard editorial board: 1. Fayette County reassessment
A three-year process of revaluing nearly 80,000 parcels of Fayette County real estate culminated this year when property owners finally got notice of the proposed new assessed values set to go into effect in 2003.
From August through October, the county’s five Tax Assessment Appeals Boards were scheduled to hear 10,100 formal appeals, which gave dissatisfied property owners a second chance to win reductions if warranted.
During those formal hearings, 45 percent of property owners got reductions, 1 percent saw increases, 38 percent saw no change in assessment, and 16 percent abandoned their hearings.
The county’s first uniform reassessment since 1958 resulted in a nearly five-fold increase in assessed value, from $831 million to $4.14 billion. However, figures released by the county’s chief assessor, James A. Hercik, show that the county’s “revenue-neutral” millage rate will plunge from 12.33 mills to 2.45 mills for 2003.
County commissioners Vincent A. Vicites, Sean M. Cavanagh and Ronald M. Nehls pledged not to raise taxes in 2003, keeping in spirit with the state law that prohibits a huge windfall in the year of a reassessment.
In a related matter that showed how inconsistent property tax rates had become, it was also revealed that at least three new and different systems for valuing property had been implemented in the county from 1971 through 1997.
2. Murtha-Mascara run-off
A statewide redistricting plan crafted by Republicans in Harrisburg saw incumbent Democratic U.S. Reps. John Murtha (D-Johnstown) and Frank Mascara (D-Charleroi) run against each other in the 2002 primary election.
Although the redistricting technically put Mascara’s Charleroi home in a new district that included southern Allegheny County, Mascara opted to challenge Murtha in the newly configured 12th District, which took in a sizeable portion of Mascara’s old 20th District.
Murtha used a combination of overwhelming support in the other counties in the new 12th and a strong showing in Fayette, where he bested Mascara, to capture the seat.
Starting in January, Murtha will represent most of Fayette, all of Greene and the southern part of Washington. In a related redistricting move, the eastern mountain area of Fayette is now in the district of U.S. Rep. Bill Shuster of Hollidaysburg, the first Republican to represent the county in the U.S. House in decades.
3. Bobish murder
4. Sept. 11 anniversary observed
5. Indians come to Brownsville
6. Amphitheater deal
7. Quecreek Mine rescue
8. Fayette County Housing Authority
Executive Director Thomas L. Harkless found himself embroiled in controversy when the U.S. Department of Housing and Urban Development (HUD) issued a “monitoring letter” asking for a response to its concerns regarding the authority’s business dealings with two firms that employed his relatives.
HUD’s Pittsburgh office took that step after board member Angela M. Zimmerlink requested that HUD look into the matter. Zimmerlink contacted HUD directly after she became disillusioned with the path taken by her fellow board members, whom she felt were trying to sweep the matter under the proverbial rug.
However, board Chairman Kenneth L. Johnson and Treasurer Beverly Beal said they and other board members were equally concerned but planned to go about resolving the issue in a different manner.
Johnson, in particular, said he wants HUD to issue a final ruling on the matter before the board decides what, if any, corrective or punitive action to take. Beal has said it was she who brought the business dealings to her fellow board members’ attention.
The issue involves computer-related work performed by Niche Networks Inc., a Virginia firm owned by Harkless’ niece, and telephone system work performed by Chestnut Ridge Communications Inc., a Pennsylvania firm that formerly employed his brother-in-law.
The authority is still awaiting HUD’s final ruling on the issue.
In a related move, Johnson authorized the Cohen & Grigsby law firm of Pittsburgh, which the authority uses for select matters, to research the “fiduciary duty” of a board member and the steps for taking action against a board member who breaches that duty.
Zimmerlink questioned the wisdom of spending $1,300 of taxpayer money for that purpose, which was not approved by the full board, and said it could be construed as an attempt to intimidate board members against contacting HUD regarding problems at the authority.
9. Priest scandal
10 Allegheny Energy in turmoil
Allegheny Energy had a rough financial year, halting dividends and warning of possible bankruptcy.
The energy company moved to halt its stock price free fall and return to financial stability after being pounded by some bad deals, possible fraud and hammering of its debt rating.
Allegheny’s troubles began when Moody’s Investors Service changed the senior unsecured debt ratings of Allegheny Energy and its subsidiaries. The company also reported a consolidated net loss of $334.4 million for the nine-month period that ended in September.
Allegheny Energy is working to borrow up to $2 billion, cutting its work force by 10 percent, trimming operating expenses by $45 million, abandoning $700 million worth of new power plant construction and putting some of its power plants on the block for sale, all in an effort to restore its financial vitality.
But the problems Allegheny Energy faces concern its workers, the financial markets and customers who rely on low-priced electricity from the utility.
If the company is unable to successfully complete negotiations with its lenders, including arrangements with respect to inter-creditor issues, it would likely be obliged to seek bankruptcy protection.