A judge on Feb. 3 approved Millvale’s emergency request to borrow $1.9 million so the borough can pay off its overdue debts as it works to right its financial ship.
Allegheny County Common Pleas Judge John T. McVay Jr. said he would draft his order granting Millvale’s petition after hearing testimony from an expert who has been working with the borough on its financial problems and from council Vice President Al Atkinson.
No one spoke in opposition to the borough’s request at the hearing, which had been rescheduled from Jan. 27 because of the snowstorm two days before.
It was a continuation of the hearing that began on Jan. 15, when McVay said he was leaning toward approving the request but said he wanted to hear from Michael Foreman, a retired state Department of Community and Economic Development staffer who has been working with Millvale through an Allegheny League of Municipalities program.
McVay said he believed borough officials who said council did not know that former borough Manager Ed Figas had been transferring money from dedicated funds to pay general expenses. He also was encouraged that borough officials have been open to and following the financial advice it has been getting so far.
Figas, who has not been accused of any criminal wrongdoing, has not responded to multiple requests for comment.
Foreman testified that what Figas had done resulted in debts and obligations, such as a 2024 tax anticipation loan and pension obligations, going unpaid.
Figas was seen as a nice and likable person, Foreman testified, but he didn’t know how to say no and told council what it wanted to hear, keeping the borough’s true financial condition hidden.
“It got to the point where it became unmanageable in terms of the overspending,” Foreman testified, adding Figas eventually “ran out of piggy banks or cookie jars to take money out of.”
Atkinson, a 30-year council member, testified that Figas would tell them money was in the budget and things were being paid. Atkinson said he was “quite shocked” to learn of the problem early last year, which included the borough’s water fund being depleted from more than $1 million to $90,000.
Figas intended to replenish the water fund, but that never happened, Foreman testified.
To prevent such a problem from happening again, Atkinson testified that council formed a finance committee to keep a better eye on spending and where it can make cuts. Also, all purchasing is now done through the current interim manager, rather than by department heads, Foreman testified.
Because Foreman’s report said the borough’s debts totaled $1.7 million, McVay questioned its request for up to $2 million.
Borough Solicitor Jack Cambest said the current amount is $1.9 million, as the unpaid debt continues to grow.
The borough hopes to close on the 10-year loan in mid- or late March. It will dedicate a portion of its property tax revenue to making the loan’s payments.
Council in December approved a 58% property tax increase as part of its 2026 budget.
“It was not an easy decision,” Atkinson said. “It was a necessary decision.”
Going forward, Atkinson said the borough will be hiring a new manager, who Foreman testified will need to have the right experience dealing with finances.
At a council meeting the same night, council President James Machajewski said council will vote Feb. 10 to retain Public Partners, a service of the Allegheny League of Municipalities, to conduct the manager search. The borough would pay an hourly rate, with a maximum total cost expected to be set at $5,000.
After a manager is hired, it will enter the state’s Strategic Management Planning Program, which Foreman described as an effort municipalities can take to avoid falling into financially distressed status.
The program provides matching grant funds to help municipalities develop multiyear financial plans and establish short- and long-term financial objectives. Foreman said it would be more in depth than the work he did for Millvale because the borough had limited funds to pay for his services.
While a 50% local match is usually required by the grants, Foreman testified Millvale should qualify for that being reduced to as low as 10%.
Council will follow the program and any advice it gets, which could include difficult or unpopular actions such as cutting staff, Atkinson testified, adding that it’s necessary to get Millvale back on track.
