Financial Outlook for the City of Monessen Improving, Despite TAN Note Denial

MONESSEN — As the City of Monessen enters the third month of 2020, finances seem to be improving slightly, despite not receiving a Tax Anticipation Note.

The city was denied a Tax Anticipation Note twice, in recent months. A Tax Anticipation Note (TAN) is a sort of loan that municipalities can take to carry them until tax revenue comes in. The loan is then paid off by mid-year. Monessen typically borrows $500,000. This year, Monessen was denied by two banks and was not able to receive a TAN. The reasons being:

1. The recent instability of leadership and internal struggles taking place.
2. Budget and past financial statements do not make any sense.
3. A significant amount of long-term debt, without a concise plan of repayment.
4. A lack of collateral in the form of real property. (The city sold off past real property during the past administration.)

Despite the lack of a Tax Anticipation note, in the last two months, since the major changes in city administration and staff, Monessen has been able to:

1. Pay many past bills from 2019, that have gone unpaid;
2. Repaired and performed routine maintenance on 5 out of 6 of Monessen’s police vehicles;
3. Repaired city equipment, such as the city’s street sweeper and vactor truck;
4. Acquired two new police cars through a foundation grant;
5. Billed for routine reimbursements owed to the city for 2019, which were left incomplete;
6. Completed the city’s liquid fuels report, which was also left incomplete.

Additionally, the city will be issuing an RFP for financial services for interested auditing firms in order to save money. We will also be using Community Development Block Grant (CDBG) funds to pave a portion of 3rd Street and to demolish four arson homes that have been blighted for several years. Additionally, the city is in the very early stages of working with potential developers and investors for various projects across the city.

The following are approximate totals as of March 3, 2020 of several of the larger city accounts that may have interest amongst the public:

General Fund: approx. $200,000

Parks Fund: approx. $100,000

Line Usage: approx. $156,000

Liquid Fuels: approx. $265,000 (projected for 2020)

CDBG: approx. $298,000 (projected for 2020)

The city operates on a roughly $5,000,000 budget each year.

While the city still has unpaid debts, it has become more financially solvent. Despite not having the TAN, the City of Monessen has been able to remain relatively strong financially. It has made payroll, debt payments, and has kept up with general operations of the city. Taxes have been mailed out to property owners this past week, so revenue will begin trickling in from Tax payments. Since the city will not have the typical debt from the TAN, that is one less debt payment that the city will need to deal with. We are also hoping to look into additional grant funding to leverage and increase. existing funding in order to accomplish more projects throughout this city. All of this will set the city upon a stronger foundation, and a better path forward.

MS