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By MICHAEL McNARNEY mmcnarney@leader.net
Friday, March 14, 2003 Page: 3A
WILKES-BARRE – A rapidly worsening financial picture was presented to the
Wilkes-Barre City Council by Parente Randolph auditors Thursday.
“There’s problems – big problems,” said Parente principal Eugene Pelesh.
“Council has to get involved in this.”
Pelesh said the city’s overall financial health – called “fund equity” –
declined by $3.4 million, leaving a positive figure of about $3.5 million at
the end of 2001.
“If the trend continues – at the end of 2002 it could be break-even. I
don’t know. I don’t have a crystal ball,” Pelesh said. “We do know what’s
happening on the call center … if that’s any indication; it seems like it
can only get worse.”
The overall picture Pelesh and council members were so concerned about
includes assets, debts, bills that have to be paid and money that is expected
to come in.
Copies of the audit were initially supplied only to council members and
city officials. Legislative records clerk Lisa Sanfilippo later made two
copies for reporters, but they were missing 12 of about 50 pages. No copies
were made available for the more than 30 citizens who packed the room.
Pelesh said the fact that the city had a general fund balance of $915,036
in 2001 – something the mayor has trumpeted – wasn’t important, except if a
person considers it was a huge decline from $2,294,379 in 2000.
McGroarty disputed Pelesh’s conclusions, arguing that the general fund was
like an operating fund, and that including other parts of the city’s financial
picture was like a private citizen counting a 20-year mortgage on his home as
a liability when looking at his overall financial health.
“Most people I know have a 20-year mortgage,” McGroarty said, telling
Pelesh that maybe people the auditor knew “make $91,000 a year and that have
a house for $1.9 million” and pay their mortgage off in a couple years.
Later, McGroarty pointed out that Parente Randolph is owned in part by
Charles Parente, who is the Wyoming Valley Health Care System’s chairman. The
system wants to open a methadone clinic in Plains Township near Wilkes-Barre,
something McGroarty stringently opposes.
Council President Mike McGinley asked the auditors to keep an eye on the
city’s financial health and to report back in a few weeks.
In other business:
McGroarty refused to apologize to fellow East End native and Councilman
Jim McCarthy for remarks the mayor made at council’s Feb. 20 meeting.
“Do you have no morals, sir? Have you no shame?” McCarthy asked Mayor
McGroarty. The mayor, sitting in the audience, scribbled on a notepad.
McGroarty never looked up to meet McCarthy’s eyes.
McCarthy was angry that McGroarty said minors had been served at McCarthy’s
bar, Jim McCarthy’s Tavern on the Hill, at 349 E. Northampton St. McCarthy
said the accusation was untrue and that state records show the bar has never
been cited with such an offense.
“Mr. Mayor, you’re a liar,” McCarthy said, reading from a written
statement. “You caused embarrassment to my family and you caused financial
harm to my business because sometimes people believe your lies.
“I demand you apologize here and now, where you made your false and
defamatory statements.”
McGroarty didn’t respond during the meeting. Later, McGroarty said:
“There’s nothing to apologize to Mr. McCarthy for.”
The council heard from firefighters Greg Freitas and Al Walker, who want
McGroarty to sign off on a form that will allow them to count their fire
service as training time so they can receive federal education benefits.
Council agrees with the firefighters, but McGroarty still refused to sign.
Michael McNarney, a Times Leader staff writer, may be reached at 831-7305.