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New Castle hires first finance officer
The new official had served as controller for a Lawrence County agency.
NEW CASTLE, Pa. — The city has hired its first finance officer as part of New Castle’s fiscal recovery plan under state Act 47.
Mayor Anthony Mastrangelo said Tuesday that Stephanie Magusiak Dean, a city resident, will be paid $68,000 a year in the position.
The post was created as an initiative recommended in the recovery plan city lawmakers adopted in August 2007.
Dean has been Lawrence County Community Action Partnership’s controller for the past six years. She is to take on her new duties with the city July 7.
Mastrangelo said Dean will answer directly to him.
“It will be interesting to see how this unfolds,” the mayor said. “The city has never had a chief finance officer. We’re looking forward to seeing how this will affect the city and what impact it will make. It will be for the better, I’m sure.”
Mastrangelo said the city received 31 applications for the post. A screening committee that included members of the Act 47 recovery team interviewed seven candidates, and narrowed the list to two. Those two were interviewed by the recovery team as well as city council and the mayor.
Council and the mayor concurred in selecting Dean for the job.
Under the recovery plan, responsibilities of the finance officer include financial reporting, administration of grants and accounting and payroll function.
Some of those duties have been performed by city business administrator Tammi Gibson.
Mastrangelo said eventually Gibson’s job will focus more on economic development and possibly human resources, and her job title may change.
“The positions will evolve over time,” Mastrangelo said. “I’m sure they’ll be more defined as we go.”
In a related matter, the mayor said the state has extended the contract with Eckert, Seamans, Cherin Mellott of Pittsburgh and Public Financial Management of Philadelphia, the firms acting as coordinator overseeing the city’s financial recovery plan. The contract will run through the end of this year.
Mastrangelo said the two firms, working in partnership, will be paid a total of $550,363 for the year. The state appointed the firms last year after the secretary of the Pennsylvania Department of Community and Economic Development declared New Castle to be financially distressed under Act 47.
Under the initial pact, the firms were paid $198,779 to develop a recovery plan and $83,452 to implement it. Initiatives in the plan called for the creation of finance officer and business administrator positions.
Mastrangelo said he asked the state to allow him to postpone hiring another business administrator, a move that might not be necessary with Dean and Gibson working together. He said the state agreed to his request.
He added if a new business administrator’s position eventually is needed, that employee will not replace Gibson, but work on a team that includes Dean and Gibson.
Under the recovery plan, the state will pay Dean’s entire salary the first year. Likewise, if a new business administrator is hired, the state also will pay that salary of $80,000 the first year.