McKeesport mayor changes tune on budget projections

When McKeesport council voted last month to allow Mayor Michael Cherepko to tap into a reserve fund to make payroll and pay bills, he said he believed the budget deficit could reach $2 million at the end of the year.

Monday night's budget meeting seems to have changed his mind.

“I don't believe we're going to be that high,” Cherepko said after the meeting. “That's because of the efforts of the administration and all parties involved. I truly commend our city administrator Matt Gergely.”

The proposed budget contains no tax increase and does not tap the reserve fund.

“I think it was one of the better discussions we've ever had,” Councilwoman V. Fawn Walker-Montgomery said of Monday's meeting. “It was really open and honest.”

Walker-Montgomery proposed eliminating council's salary of $4,000 a year per member, which would save $28,000.

Cherepko thanked Walker-Montgomery, but said that isn't necessary.

“It went pretty well,” Cherepko said of the meeting. “I think it's a fair budget, and we have to continue to look at other avenues for the long-term future of the city.”

Cherepko said that includes stronger delinquent tax collection, and he commended his administrative staff and the women in the collection department.

Projected revenue and expenses were balanced at $18,593,930.

Revenues include $2,304,809 in real estate taxes, $100,000 in delinquent real estate taxes, $150,000 in real estate transfer taxes, $2,392,345 in earned income taxes, $100,000 in earned income taxes for prior years, $100,000 in mercantile taxes, $325,000 in local service taxes, $550,000 in business privilege taxes, $463,000 in licenses and permits, $163,000 in fines, $10,000 in forfeits, $372,500 in parking revenue, $45,451 in state grants, $159,677 in revenue shared among local governments and $693,000 from miscellaneous sources.

Expenses include $28,000 for council salary, $54,660 for the city clerk's salary, $6,020 for the city controller's salary, $9,000 for advertising, $70,000 for the mayor's salary, $66,500 for the administrator's salary, $38,000 for the secretary's salary, $11,709 for medical benefits, $585,705 for finance costs, $83,942 for tax collection, $927,981 for insurance, $348,426 for parking and downtown costs, $1,318,680 for property maintenance, $4,933,537 for police, $2,258,467 for fire, $12,000 for ambulance and rescue, $59,047 for other public safety personnel and costs and $165,054 for public works administration.

The proposed budget raises the legal retainer from $84,000 to $99,000, and the community development director's salary from $55,200 to $60,000.

Council president Darryl Segina said he doesn't believe all of those figures, and said he takes issue with some salaries.

“Some of the revenue line items were overstated, and I think that will produce a shortfall next year,” Segina said. “There was a lot of displeasure with the $15,000 raise they gave (city solicitor) J. Jason Elash and the $4,800 raise to A.J. Tedesco, the community development director.

“I don't think there should have been raises for anybody if you're asking people to take pay freezes. You have to set the example,” he said.

The city is in negotiations with Teamsters Local 205 for new clerical and public works contracts. The agreements expire at the end of the year.

Teamsters chief executive officer Carl Bailey said there has been one negotiation meeting for each department, and the union and the city have exchanged proposals.

The city is proposing wage reductions and the union is proposing wage increases, Bailey said. Figures were not available at presstime.

Cherepko defended the salary changes. He said Tedesco is taking on more responsibilities, and Elash's increase is for health benefits.

“When (Elash) came back to the city (last year), we brought him on at a 43 percent pay cut compared to what he made the prior seven years as solicitor,” Cherepko said. “Which was in my mind unfair at that point.”

Cherepko said Elash and other city solicitors made more than $120,000 a year in previous administrations, and Elash was paying for health benefits out of pocket.

The mayor called Segina's comments “political vindictiveness,” noting the council president approved budgets for seven years without questioning those salaries.

Segina said his comments were not meant to be confrontational.

“I stated my case,” he said.

Council will have a public hearing about the budget at the Dec. 3 workshop. A specific time was not scheduled. Theregular meeting is scheduled for Dec. 4 at 7 p.m. in council chambers.

Michael DiVittorio is a staff writer for Trib Total Media. He can be reached at 412-664-9161 ext. 1965 or mdivittorio@tribweb.com.