May 17, 2007 By Patty Yauger 3 min read

CONNELLSVILLE – A state agency has approved the city’s request for grant funding to assist with the hiring of a consultant to develop a five-year financial plan, according to council action Wednesday. Dennis Yablonsky, secretary for the state Department of Community and Economic Development (DCED), said in a letter dated April 6 that $79,175 would be available to the city to engage a consultant and provide related services for the long-term fiscal plan.

“We are very, very fortunate to get this grant,” said city Mayor Judy Reed. “We need some help.

“I’m very grateful to Gov. Rendell for his support to small communities.”

In January, council agreed to enter the DCED early intervention program after it again tapped reserve funds to balance the 2007 budget and determined the city would need to apply for a tax anticipation loan to meet its financial obligations through March.

Michael Foreman, policy specialist with the DCED Governor’s Center for Local Government Services, said that the program is for communities like Connellsville that are experiencing financial challenges tied to business closures, increased costs to provide municipal services or the operation of the city without any improvement in the tax base.

“(The program) is a guideline, roadmap and prospective for a five-year period,” he told council in January. “It looks at revenue and expenditure trends and assessing the financial condition of the community and coming up with a short term, intermediate and multiyear recommendations.”

Foreman said that the consultant would review in-place contracts, department efficiency, demographics, insurances and pensions funds along with past and present spending trends, in addition to analyzing other factors that impact city operational costs.

Yablonsky, meanwhile, said that the city is to be congratulated for entering the program.

“(Congratulations) for your dedicated efforts in forging a cooperative approach to dealing with public service requirements,” he said. “Projects such as this significantly improve the capability of local governments to deliver services more efficiently and with greater cost effectiveness.”

Turning to a related matter, council approved the repayment of the short-term tax anticipation loan.

The $450,000 loan was obtained through PNC Bank and was to be repaid by mid-July.

Councilman Terry Bodes, who oversees the accounts and finance department, said that the interest amount was reduced to $5,875.62 because of the early payment.

In other financial matters, council authorized the closure of two accounts at Scottdale Bank and opening of separate accounts with the Pennsylvania Local Government Investment Trust (PLGIT).

According to city Controller Jean Wrote, the Scottdale Good Neighbor Revitalization Account garnered a 1 percent interest rate for the $54,149 fund while the $51,771 capital reserve account paid a 2 percent interest rate.

The interest rates for city PLGIT accounts are currently at 4.97 percent.

In further action, council:

– Authorized the closure of Orchard Alley between Cottage Avenue and Prospect Street for the June 14-16 annual Immaculate Conception Parish Festival. The area will be closed from 6 to 11 p.m. during the three days.

– Agreed to close certain city streets for the May 28 Memorial Day Parade and the July 11 25th Annual John Woodruff Race.

– Hired Tracey Lynn Mongeau as a part-time police department building monitor at an hourly salary of $6.25.

– Approved the transfer of $13,040 in insurance proceeds to the Connellsville Senior Citizens Center board of directors for roof repairs.

– Authorized the payment of $2,600 to Hilltop Excavating for the relocation of a caboose from its location at the intersection of West Crawford Avenue and Route 119 to the Yough Bike Trail area.