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A crash on Wall Street could reverberate on Walnut Street, city officials warned during last night's council meeting.

Like many municipalities, the city takes out what are called "tax anticipation loans" at the beginning of each calendar year. They're short-term loans that allow the city to pay its bills during the first quarter of each year until wage and property tax payments start arriving.

"If credit dries up, I can't see us getting a tax anticipation loan next year, which would really put us in a bind," Councilman Darryl Segina said.

Mayor James Brewster --- a former Mellon Bank executive --- said the collapse of several major New York investment banks and brokerages is the worst economic crisis of his lifetime.

"It goes beyond scary, and needless to say, we weren't in really good shape beforehand," Brewster said.

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There is positive news to report, however. A 2003 audit discovered that McKeesport's employee pension plans were short of covering their expected liabilities by $4 million.

But according to Ray Malinchak, city controller, the plans are currently well above 80 percent funded, the standard for being fully funded under the Pension Protection Act of 2006.

Since moving the city's pension plans to Sky Bank, the predecessor of Huntingdon Bank, the funds have grown about 7.17 percent, City Administrator Dennis Pittman said.

"The numbers were actually up this year through August, but September was a horrendous month," Brewster said. "I want to reassure our employees that your pensions are whole, and in good standing."

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In addition, other capital investment projects are moving forward, including the extension of Marshall Drive from Old Long Run Road to Route 48, and the addition of a "flyover" vehicle ramp from Lysle Boulevard into the RIDC industrial park on the other side of the CSX Railroad tracks.

"Obviously, everybody is scrambling for funding, but no one has turned us down yet," Brewster said.

In an unrelated matter, Segina, chairman of the International Village committee, reported that this year's three-day festival returned more than $40,000 to the city treasury. A final report on income and expenses was submitted to council and is available for public review at city hall, he said.

Strong attendance and a change in soft-drink vendors helped boost revenues, Segina said, noting that some volunteers working the gates this year were accosted by residents complaining about the $2 admission fee and demanding to know where the money was going.

"That's an affront to every city (employee) and volunteer who's out there trying to do their jobs," he said. "For $2, you get entertainment all day, and free parking. I think that's the cheapest ticket in town."

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There was time for a little levity later, when Malinchak read the monthly report of city expenses and made the routine recommendation that council approve all of those expenses.

"Do we have enough to pay the bills this month?" Segina asked Malinchak.

"With your help, we do," Malinchak quipped.

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In Other Business: The Twin Rivers Council of Governments is moving back into the city, and council last night committed to remaining a member of the organization through 2019.

The cooperative, which provides group purchasing and public-works services to 13 member municipalities, is currently located in the West Mifflin Municipal Building on Lebanon Church Road, but the borough has pulled out of Twin Rivers and joined the South Hills Area COG.

In an Aug. 25 letter to Brewster, COG President David Pasternak reported that the group intends to move into the former Municipal Authority of Westmoreland County building at the corner of Walnut and 28th streets in Christy Park. The water authority vacated the building, a former Super Dollar supermarket, as part of a cost-cutting effort last year.

In return, Twin Rivers asked the city to remain in the COG for at least 10 years. A motion to authorize the city's continued membership in COG was approved by 5-0 vote. Councilors Loretta Diggs and Paul Shelly Jr. were absent.