Finances to be focus of public meeting

The city is trying to work out concessions with its employees.
By VIRGINIA ROSS
VINDICATOR CORRESPONDENT
NEW CASTLE, Pa. -- A public hearing to determine whether the city is financially distressed has been scheduled for 7 p.m. Dec. 6 at the New Castle High School auditorium.
The Pennsylvania Department of Community and Economic Development will conduct the hearing under state Act 47, the Municipalities Financial Recovery Act. City officials said they intend to work together to develop and initiate a recovery plan before the hearing.
They said they are hopeful their plan will be acceptable to the state so the city can avoid going into Act 47.
Last month, city residents petitioned the state to seek financially distressed status for the city. That is one of several ways the option can be pursued. The move can also be initiated by city council or by the mayor's office.
City council had announced plans to vote on the matter at a public meeting last month. But the lawmakers postponed a decision to work out proposed concessions with city employees.
Pay freeze
Council has asked several unions representing city employees to agree to a pay freeze next year.
The state must now gather information about the city's finances and present it at the hearing. Resource Development and Management, which conducted a financial evaluation of the city, has attended several council meetings during the past year and has recommended the city go Act 47.
RDM representatives have reported the city has maintained a deficit over a three-year period; its expenditures have exceeded revenue for a period of three years or more; and it has accumulated and operated for each of two successive years a deficit equal to 5 percent or more of its revenue. All of these issues meet criteria needed for pursuing distressed status as outlined in Act 47, the representatives said.