Monessen suffers more financial setbacks
MONESSEN – Monessen was dealt more financial setbacks in recent weeks as its public liability insurance company dropped its plan about the same time as the city’s credit rating was downgraded.
Moody’s announced May 16 it gave Monessen’s bond rating a “negative outlook” because of its deficits and the challenges it faces with a weakening tax base. The investor service also warned the financial outlook for the Mon Valley city likely will continue to be pressured over the next 12 to 18 months, its website states.
During a council meeting Monday, Lucille D’Alfonso, chairman of the department of accounts and finances, blamed negative news reports about Monessen that featured Mayor Lou Mavrakis discussing issues including blight and debt. D’Alfonzo said those reports worsened the city’s reputation and ability to seek new money.
“They’re doing nothing to bring people in,” D’Alfonso said at a heated and lengthy council meeting.
Mavrakis responded by saying Moody’s didn’t downgrade the city’s rating because of negative news, but because the city ended 2015 with a more than $700,000 deficit.
Monessen asked for state assistance to avoid becoming a distressed municipality as it deals with debt Mavrakis estimated at $13.5 million over the next three decades.
D’Alfonso also said the city’s liability insurance carrier dropped Monessen’s policy because it processed too many claims and it lacked faith the city would be able to pay its premiums. The company’s name was not immediately known Monday night, but council did agree to purchase another policy with an increased premium and deductible.
D’Alfonso did give a report that indicated the city’s debt, library and parks funds were funded and there is a bank balance of $269,891 after payroll was met. She did warn the general fund could be weakened as the city remained under a spending freeze.
“The money dribbles in,” D’Alfonso said. “We cannot succeed with the current tax base.”
The bickering on council prompted city solicitor Gary Matta to step out of his role and urge council members to improve the way in which they work together.
“We need to start working together,” Matta said, adding the city only has a limited amount of money to solve a large amount of problems.