Mayoral Candidates Differ on Peekskill’s Economic Condition
Peekskill Mayor Mary Foster dismissed Republican mayoral challenger Frank Catalina’s claims that the city is “on a path to economic collapse” as nothing but “political rhetoric.”
“In the worst economy ever, Peekskill has been growing and everyone knows it, except perhaps for Mr. Catalina,” Foster remarked last week after being informed of a so-called economic development press conference Catalina held across the street from City Hall.
Catalina, shadowed by Common Council running mates Chris Hanzlik, Joe Torres and Vincent “Boo” Vesce, maintained under Foster’s leadership over the last six years the city’s deficit has ballooned to $14.7 million and its fund balance has dropped from $8 million to approximately $7,000.
“During the past 49 years, there have never been successive deficits-behind-deficit budgets,” Catalina contended. “This is reckless spending. We have an administration that cannot control its spending. This is a dangerous spiral and they have no plan to correct it. Let’s get these five years of darkness behind us.”
Catalina said one example of Peekskill’s financial woes was the downgrading of the city’s bond rating from Moody’s from A1 in 2007 to Aa3 in May. However, Foster said Catalina, an attorney, was misinformed, explaining Aa3 was actually a better rating than A1.
Meanwhile, Foster, who noted Peekskill was 73 years old, said the city’s general fund savings balance at the end of 2012 was $7.2 million, down from $13.1 million at the end of 2007, which she attributed to pension costs ($4.1 million), loss of mortgage tax revenues ($1.8 million) and $500,000 in legal costs in the Jeffrey Deskovic case, which was settled last week (see story in this week’s paper).
Catalina also criticized Foster’s administration for not generating any economic activity.
“Two or three restaurants and a drug store on Main Street is not the kind of activity I’m talking about,” he explained. “Employer after employer declines to invest in the City of Peekskill and we have to ask why. Grants are not a substitute for economic activity. No grant will put a dime in the revenue stream.”
Foster offered a snapshot of the economic activity that has taken place in Peekskill under her watch and noted the Westchester County Association was hosting City Showcase Peekskill on September 25 that is expected to attract 100 real estate developers, investors and brokers to the city.
The mayor said at least 36 new businesses have opened in Peekskill, at least 12 existing businesses have expanded and two new housing developments totaling 124 units were planned in the downtown.
Rick has more than 40 years’ experience covering local news in Westchester and Putnam counties, running the gamut from politics and crime to sports and human interest. He has been an editor at Examiner Media since 2012. Read more from Rick’s editor-author bio here. Read Rick’s work here: https://www.theexaminernews.com/author/pezzullo_rick-writer/
