The commissioners on Tuesday unanimously approved issuing the bond with the intent of spending the largest share, $1.66 million, on repairs to two municipal parking garages. The rest will go toward roof repairs on municipal buildings, three storm water projects and equipment purchases.
Moody's Investors Service last week downgraded the municipality's bond rating from Aa1 to Aa2, moving it from the fourth-highest possible rating to the fifth, citing Mt. Lebanon's declining fund balance.
Finance Director Andrew McCreery said the drop from a $10.86 million fund balance in 2011 to $5.41 million in 2013 happened mostly because of changes in bookkeeping.
“ ‘Downgrade' has such a bad connotation, but it's a slight downgrade,” he said, and Moody's adjustment could mean an extra $15,000 in payments over the 15-year life of the bond.
McCreery said Mt. Lebanon's fund balance previously included about $3.84 million that the Mt. Lebanon Parking Authority channeled through the municipality.
When the municipality absorbed the parking authority in 2012, that money — which the municipality couldn't spend, but which showed up as part of its fund balance — shifted to a dedicated parking fund, McCreery said.
In last year's budget, the municipality spent about $1.4 million of its fund balance on recreation improvements such as upgrades to its ice rink and tennis center.
The Moody's rating did not account for $162,600 the commission approved in July toward a $1.05 million project to replace two grass fields in the municipal park with artificial turf. The municipality is paying $800,000 for the project out of its reserves and money it had budgeted, but not spent, on other field improvements.
Some residents questioned why the commission was borrowing money for infrastructure when part of its budget surplus is going toward the turf project, or why the bonds were funding storm water projects when Mt. Lebanon already charged property owners a special fee for dealing with rainstorm runoff.
“Are these things essential needs that you're going to bonds for? Is artificial turf an essential need?” resident Kimberly Schevtchuck asked.
“It is a need,” Commissioner John Bendel said. Commissioner Dave Brumfield said a bond was funding the storm sewer projects for Marlin Drive, Mapleton Avenue, Lindendale Drive and Longuevue Drive — expected to cost about $1.5 million — so they could be built right away. Part of the storm water fee revenues would go toward paying back the borrowed money.
“You have no business spending $800,000 on turf when you're taking out a bond,” resident Elaine Gillen said.
Municipal Manager Steve Feller said the parking garage projects are under way, having been funded in part by parking money in anticipation of the commission approving bonds for the rest.
Matthew Santoni is a staff writer for Trib Total Media. He can be reached at 412-380-5625 or msantoni@tribweb.com.
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22 comments:
Didn't they also float a bond several years ago for street paving?
Which begs the question, if so where are our taxes going? Shouldn't things like street paving, building maintenance and sewer upgrades be included in the normal expenditures?
Perhaps we're spending far too much on things like PIOs and Engineers- for starters.
" ‘Downgrade' has such a bad connotation, but it's a slight downgrade,” — Finance Director McCreery.
I believe I remember reading the truck driver that crashed into Point State Park years ago a few years ago said the same thing as he started down Greentree Hill.
Ah yes. A ball field is a "need" but flood prevention is a "want."
2 + 2 = 5
Welcome to the new logic.
--Tom the Tinker
Sell the rec center and surrounding complex and the golf course. Disband the magazine and the PIO office. The Economic Development and Commercial District offices are redundant and not needed as the Planning Department can do those jobs or the business community can make an organization to promote the town. Is the IT office subcontracted out? if not, then it needs to be. Those moves are the low hanging fruit to reduce government spending.
Bendel with his, "It's a need!"
Seriously! We NEED artificial turf like we need a sewage system?
At one point I thought that guy might be smart. I have clearly changed that turn.
Hahahahahaha. These people are stupider than I imagined. Keep spending, fools. Go on. Why stop at 4 million? If you're going to plunge us into a financial black hole and jack up our taxes while not accomplishing anything, don't be half-hearted. Go all in. Borrow another 50 million. Chickens. Let's really sink the community. I mean wreck it. Let's see if we can dramatically change the demographics. I can't wait to read about more foreclosures, more Section 8 housing, elderly people not making rent.
Way to go, commissioners. You're making history.
I can't believe Bendel said the turf is a need. Oh wait a minute, I actually can.
I also agree with the person who said we need to disband the MtL magazine. As a former journalism teacher, I hate that publication. I am going to begin to tell them that on their vapid Facebook site. I don't care if they can see who I am.
- Jason
3:58 am - You are correct, back in 2009 the Board chose to finance a street sidewalk repair. Here's what Blog Lebo had about it back then:
"Mt. Lebanon commissioners voted 4-1 last night to finance a 2009 street reconstruction program through the issue of roughly $2 million in general obligation bonds. They also decided to approve designating $200,000 of that money for sidewalk repair.
"We should take the matter by the horns and pay as you go," said Dan Miller, the lone dissenting vote among the five commissioners. "I know my ward needs the sidewalks, but the policy is ridiculous."
Back then the Board also decided to wrap the bonds, delaying repayment on the better part of the obligation until the end of the bond period. The folks at Blog Lebo estimated that doing this would cost Mt. Lebanon taxpayers an additional $1 million dollars. The article above doesn't mention if the decided to wrap these bonds too. Hopefully not.
The 4th principle of the Democrat Committee of Mt. Lebanon:
"Be WISE by ensuring fiscal responsibility"
BWAHAHAHAHAHA!!
Proverb—
"No matter how far you have gone on a wrong road, turn back."
I am confused.
On Kelly's blog the items in the bond are included in her proposal for unassigned funds. Did they just ignore that?
12:39 PM, sure looks like it. Unassigned funds are there for the sole purpose of fulfilling the Sports Advisory Board wish list, don't ya know?
Funny thing. When the FIOS truck pulled up today to get back online, one of the first things he said, after diagnosing the problem with my FIOS, was "So you are spending a million dollars on artificial turf?" I thought he figured that out from seeing my yard sign. He said, "No, I read the newspaper every day." The same thing happened where he lives, somewhere in Fayette County. Only thing is that they are now spending a million dollars to take it out and replace it with grass. It appears that we are being laughed at in Fayette County!
Elaine
From the Trib article about the bond issue -
"storm sewer projects for Marlin Drive, Mapleton Avenue, Lindendale Drive and Longuevue Drive"
Check who lives on these streets.
From this week's Almanac--
"“I believe there is value in preserving our brick streets, and a part of why people come to live here ... I believe we should start to preserve the character of the neighborhoods,” Bendel said."
http://www.thealmanac.net/article/20140813/NEWS/140819977
Really Mr. Bendel, people moved here in part because of our poorly maintained, uneven brick streets? Please introduce us to these fine neighbors, I'd like to hear their opinions first hand.
Now if we maintained those quaint brick roads to their original condition one might agree with the commissioner. Unfortunately public works doesn't.
If you want to preserve something Mr. Bendel, preserve the natural grass at Wildcat/Middle and Brafferton Fields.
Bendel & Brumfield suffer from foot in mouth disease - open mouth, insert foot SOP !
Does anyone find it odd that the separate and independent Parking Authority's fund balance was included in the Municipality's funds balance, but when the Parking Authority was absorbed by the Municipality the funds balance of the Parking Authority disappeared from the Muni's funds balance?
It seems to me the Muni's funds balance should have gone up instead of down.
Did we spend the money?
It was a Marcia Taylor thing, John. The Muni guaranteed a bond issue for Authority - think of compensating balance requirements, and other GASB and GAAP requirements.
Was it tax money, or was it PA money on deposit with the township
Lebo has become so sleazy. It's really sad. All the petty little kings and queens running around trying to get their share. Disgusting. Friend of mine said he drove through Lebo a couple weeks ago and said the roads were crap, sidewalks torn up and we are now part of Dormont.
Newsflash to the people burning our present anf future tax dollars: you can't spend your way into class.
This comment was emailed to me privately.
"USC says 'MTL spends money like they have it.' Very appropriate."
Elaine
12:24 AM,
Who lives on Marlin?
I looked up Marlin and see that there are five pages of houses listed. I don't want to name names, but I did see a listing which the newcomers might be familiar with. Enough said on this, please.
Elaine
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