Greensburg finalizes $1 million loan that will be dedicated to public safety

Greensburg officials this week finalized a $1 million loan that will bolster funds dedicated to public safety that traditionally came from the now-closed J. Edward Hutchinson Parking Garage.

Council members unanimously approved an ordinance related to the almost $1.1 million loan.

“We wish we didn’t have to do it, but losing the revenue from the parking garage makes that a necessity,” said Councilman Randy Finfrock, director of accounts and finance. “We had to replace the funds somehow. So this is just a way to get us on track. We’re going to get roughly $1 million out of this loan and it’s dedicated to public safety.”

The approval will lead to an additional 1-mill charge for city residents, or between $20 and $25 per homeowner. That charge will be listed separately on tax statements so future administrations cannot use the money for items other than public safety.

City officials first discussed the loan in November after deciding to close the parking garage, a decades-old deteriorating facility attached to Excela Health Westmoreland Hospital. The parking garage generated about $140,000 the year before the pandemic. That money was earmarked to buy police vehicles and firetrucks.

A decade ago, the garage generated $250,000 per year.

The loan will now be used to keep money flowing into the capital fund used for public safety. Those funds will be used to purchase a new police vehicle each year over the next five years, and one firetruck. Finfrock noted that a police vehicle and firetruck could be purchased this year; however, plans have not been finalized.

Mayor Robert Bell in December noted that funds can be used only for vehicles, not other equipment.

Revenue from the 1-mill charge, which is expected to total $125,000, will be used to pay off the loan.

Wayne Gerhold, bond counsel for the city, is finalizing the loan. The city could receive the money by March 21, Finfrock said.

“That’s the target date, so anytime after March we’ll be able to use that $1 million,” Finfrock said.