Jeannette officials look to pinch pennies to restore $278K to capital reserve account

Jeannette officials said they are hoping to come up with about $278,000 that was moved out of its capital reserve account last year and never replaced.

Solicitor Tim Witt is examining a $1.9 trillion covid-19 relief bill passed by federal lawmakers to see if any funds would be available to municipalities. City clerk Nathan Bish and Mayor Curtis Antoniak said they will keep a close eye on spending this year.

“Hopefully, we can recoup some of this money that we can put back,” Antoniak said.

The situation was discovered this month when Antoniak said he checked on the balance of the reserve account that was created with $4 million from the city’s 2015 sale of its sewer authority to the Municipal Authority of Westmoreland County. Antoniak said he learned $287,000 was removed from the account in early 2020 and put into the general fund for city expenses. It was never replaced, as is customary. The city is working with an auditing firm, he said.

“That situation is legitimate, and it stems from our former (chief fiscal officer) misleading city council with regards to the capital reserve,” Bish said.

Retired chief fiscal officer Michelle Langdon, who is running for city council, did not address the situation when asked by a reporter.

“My campaign for city council is based upon bringing businesses and jobs to the city,” she said in an email. “Mud-slinging politics is counterproductive to my vision and goals.”

Witt said the transfers appeared to be used for general expenses. The city regularly uses the capital reserve to loan itself money in certain situations, including before tax revenue streams in, but then it is repaid.

“It’s just apparent those transfers back the other way never took place” in this situation, he said.

Antoniak, who is running for reelection, said it might have an impact on the 2021 budget and potentially could affect the city’s bond rating.

“I’m sick over this because we were told … we were OK financially,” Antoniak said.

The issue prompted council during an agenda meeting Tuesday to be hesitant to hire a full-time public works employee, but rather opt for two part-time summer help positions. Bish said that a plan to put $100,000 into the capital reserve account as part of the 2021 budget should not be affected.