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LEHIGH VALLEY WEATHER

Catasauqua council gets financial status update

Catasauqua Borough Council held an Aug. 5 special meeting to discuss challenges facing council.

The special meeting was a hybrid meeting, with both in-person and virtual options. However, there were technical problems, so the video was not viewable and the audio was garbled. It was reported the official recording at the borough office was also garbled.

The Press is planning a follow-up article, if necessary, if a clear audible recording of the meeting surfaces.

The meeting, lasting nearly two hours, featured statements from Catasauqua Borough Solicitor Thomas Dinkelacker. He was to review the daily operation of the borough after the borough manager and treasurer vacated their positions. It appears the manager and treasurer duties will have to be picked up by council until a replacement treasurer and a borough manager are hired.

In other business, the financial status of the borough was to be addressed by the borough’s bond adviser, Ryan Hottenstein. He reportedly provided an explanation of the downgrade of the borough’s bond rating by Standard & Poor Inc.

Catasauqua’s bond rating was reduced to BB+, which is the highest level of noninvestment-grade bond rating. Hottenstein, reached after the meeting, noted the bond rating decrease was the result of a number of factors, including the departure of Catasauqua’s two financial management staff - the borough manager and the treasurer.

This statement was underscored by Councilman David Bernini, who, after the meeting, publicly answered a constituent question.

“Ryan [Hottenstein] indicated one major contributing factor in this most recent decline (of Catasauqua’s bond rating) was the resignation of two key management/financial personnel.”

Hottenstein reportedly provided council with financial trends for the past few years. He showed how fund balances were being reduced and how that has adversely affected the borough’s financial health.

There was also to be a discussion of the upcoming police contract, insurance policies considerations and a discussion of the appraisal fee for the Iron Works site.

Under unfinished business, there was to be a discussion of the upgrade of the water fluoridation system for Catasauqua’s water, and a discussion of a quality-of-life ordinance was to occur.

At a previous meeting, it was reported grant funding will provide at least a partial payment for the fluoridation upgrade.

At the end of the meeting, council went into executive session to discuss personnel issues regarding the borough manager’s departure, to receive legal advice for financial issues, discuss the police contract and any other legal issues council is facing.

After the meeting, Councilman Paul Cmil said he has a plan he will present to the public utilities committee that can, in his mind, solve the water and sewer plant financial challenges. Cmil is the chair of the public utilities committee.

The public utilities committee meeting is set for 7 p.m. Aug. 18 at the borough municipal complex, 90 Bridge St. Check catasauqua.org for meeting updates.

It is worth noting the August meetings for the recreation, public safety, general government and planning and zoning committees are all canceled, according to the borough’s website.

The next council meeting is set for 7 p.m. Aug. 29 at the municipal complex. It is a hybrid meeting, with both in-person and virtual options. Visit catasauqua.org for the call-in number and access codes to view virtually.