While a resolution is on tonight's agenda to withdraw from escrow funds that city administrator Dennis Pittman says should not have been placed in the escrow account, questions remain on how council will proceed with the remainder of the money.
Pittman referenced the remaining $14 million from the city's transaction with the Municipal Authority of the City of McKeesport in which MACM pre-paid a $24 million mortgage on the purchase of its sewer lines from the city.
That $14 million is intended to serve as a consistent revenue source for budget years 2012, 2013 and 2014 as it lays groundwork for financial plans in 2015.
Pittman asked that council reconsider its previous decision to leave the funds in a non-interest bearing account until an investment is made. He asked that a new ordinance be written to allow the $14 million to gain interest as the investment process continues.
"I'm thinking we do the ordinance, and move it to an interest-bearing account until the investments are made," Councilman Dale McCall said.
Council president Michael Cherepko said those funds would already be invested if Pittman would have signed documents necessary for the PFM Group to perform a third-party analysis on potential investments.
"If this paper was signed for PFM in August, it would be making money now," Cherepko said. "Fact."
Pittman insists that the $12,500 fee for the analysis is not justified and that even non-professionals would provide the same assessment.
Cherepko's "fact" insert likely was a response to a memorandum titled, "Failing to plan is planning to fail, and failure should not be an option!," which Pittman distributed to council earlier in the day.
After the meeting, Pittman tossed the memorandum and said, "You can attach this to my retirement letter."
The memo lists four sets of "facts" and the "actions" required to resolve them. All of the items related to the $14 million and council's understanding of those funds as members pass the 2012 budget and future spending plans.
In other business, council will consider:
• Authorizing the city to provide start-up loan funding to allow Blue Roof Technologies to take part in a grant-funded project to construct six handicapped-accessible smart homes on two sites for McKeesport Housing Authority
• Subdividing the Yester Square section of Crawford Village into four parcels that would allow for reconstruction of taxable housing units in the city's Eighth Ward
• Approving Home Consortia Grant Funds used in a cooperative agreement that serves entities working toward community development in McKeesport, Penn Hills and Allegheny County.