Pottsville City Council has appointed FSL Public Finance as the city's independent financial adviser and grant-writing consultant following a divided vote that included debate over transparency, competitive bidding, the city's financial condition and whether the arrangement duplicates services already being performed.
Council approved Resolution 168 by a 3-2 vote during its August meeting on Monday evening.
Councilman Jonathan Marsh, Councilman Andy Wollyung and Mayor Thomas Smith voted in favor of the appointment, while Councilwoman Dottie Botto and Councilman Scott Price voted against it.
The resolution initially called for FSL to serve as the city's exclusive independent financial adviser and grant-writing consultant. It was amended before passage to exclude existing contracts with Mullin & Lonergan Associates for Community Development Block Grant work and Schuylkill Community Action for HOME-related programs.
The appointment is the latest development in a months-long discussion at City Hall over how Pottsville should handle financial planning and grant-writing services.
Supporters Point to FSL's Experience
Those supporting the appointment argued that FSL already possesses extensive knowledge of Pottsville's finances and has assisted the city with financial and economic development matters.
Marsh said that institutional knowledge would be difficult to replicate by bringing in another firm.
"Even if we bid it out, hired a different company, that company's going to come in and they're going to end up talking to FSL to get the history... because that's who has been linked to us for [8 to 10 years]," Marsh said.
Marsh also credited FSL with helping prepare city officials for a recent review by S&P Global, saying the preparation was provided without charge.
"If it wasn't for FSL, we would not have been prepared for that phone call," Marsh said. "They prepped us for that call... at no charge to the city."
Pottsville has maintained an A+ bond rating.
Marsh also said FSL's familiarity with the city's financial condition was particularly valuable as Pottsville works through its current financial challenges.
"No entity knows our financial situation better," Marsh said. "They're familiar with where we are financially, which is obviously we are in distress."
FSL's proposed rate of $125 per hour was also cited during the discussion, with supporters comparing that figure to the $295 hourly rate the city currently pays Mullin & Lonergan for certain services.
Supporters further credited FSL with identifying potential Rural Focused Opportunity Zone and federal Opportunity Zone opportunities for Pottsville.
City records confirm that council previously engaged FSL in June to prepare and submit a Rural Focused Opportunity Zone proposal to the Pennsylvania Department of Community and Economic Development.
Price Calls for Competitive Process
Price repeatedly questioned why the broader FSL appointment was not subjected to a competitive process.
"I'm asking the city to do the right thing and put this out for bid," Price said. "I'm asking the city to be fully transparent... to remove any look of impropriety."
Price also raised questions about professional and political relationships surrounding FSL, including the involvement of an FSL vice president with the city's transition efforts and a professional relationship involving the city solicitor and an FSL affiliate.
No evidence of wrongdoing was presented during the discussion, but Price argued that competitive bidding could help eliminate questions about the selection process.
Botto, meanwhile, objected particularly to the scope of the word "exclusive."
"I would like the word exclusive removed," Botto said. "I think it limits the city."
Opponents also questioned whether hiring another outside consultant was necessary as Pottsville employs a city administrator and is seeking to fill an assistant city administrator position that includes authority and grant-management responsibilities.
Wollyung pushed back against suggestions that political considerations were influencing the appointment.
"We need to stop letting politics dictate policy and what we're doing to have a positive Pottsville," Wollyung said. "It is getting out of control of writing a narrative that is not going to exist."
FSL Appointment Was Previously Tabled
The August vote was not council's first consideration of FSL this year.
At a special meeting on February 9, council had a resolution before it that would have appointed FSL as the city's interim financial adviser.
The measure was instead tabled by a majority of council after questions were raised about the cost and selection process.
At the time, Marsh argued that the city's financial circumstances required outside expertise, while Price, Wollyung and Botto voted to table the appointment.
During the February meeting, Price asked whether council had received a cost breakdown for FSL's services. Marsh acknowledged that it had not.
Wollyung also questioned how FSL had been selected and said council members should perform the same vetting they would conduct if another company sought the city's business..
City Previously Considered RFP for Grant Writing
The March meeting also provides additional context to the debate over whether FSL's grant-writing services should have been competitively sought.
At that meeting, council had a resolution on its agenda specifically calling for the approval of a Request for Proposals for future Grant Writing Services for the City of Pottsville.A separate agenda item called for council to review and potentially take action on the Pottsville Area Development Corporation's grant-writing contract.
The same meeting included several major grant-related proposals involving PADCO, including a $100,000 Keystone Communities Grant application for the first phase of the Pottsville Greenways Project and a $2.5 million federal Community Project Funding request for a police station relocation or rehabilitation project.
A separate RFP discussed during that period concerned Pottsville's Strategic Management Planning Program grant and should not be confused with the broader proposal for future grant-writing services.
City's Grant Work Has Been Split Among Several Organizations
The FSL appointment also comes after Pottsville used several entities to assist with its finances and grant programs.
At the beginning of 2026, council considered hiring PADCO to provide grant writing, financial analysis and strategic planning for the city and several related authorities and commissions.
Later that month, a city agenda called for the creation of a grant committee that would work with PADCO to identify projects needing grant-writing assistance.
Mullin & Lonergan has separately served as a consultant for Pottsville's Community Development Office. The February agenda included a resolution designating the firm as the Community Development Office consultant for fiscal years 2026, 2027 and 2028.
Pottsville continues to administer substantial CDBG and HOME-funded programs, including housing rehabilitation, demolition and infrastructure projects.
Those existing arrangements led council to amend the FSL resolution in August to prevent the firm's "exclusive" designation from interfering with the M&L and Schuylkill Community Action contracts.
Former PADCO Director Now With FSL
Another connection between FSL and Pottsville developed earlier this year.
Savas Logothetides joined FSL Public Finance as a vice president in May after previously serving as executive director of PADCO and executive director of the City of Pottsville Redevelopment Authority.
In those previous positions, Logothetides worked on fiscal sustainability, capital planning, grant integration and redevelopment initiatives in Pottsville. He also has experience with numerous DCED funding programs.
FSL describes itself as an independent financial advisory firm serving state and local governments and nonprofit organizations. The firm says it has operated since 2001 and provides financial advisory, debt-related and other consulting services.
The city's documented work with FSL in 2026 includes its June engagement for the Rural Focused Opportunity Zone proposal.
Mayor Points to CDBG Problems
Mayor Smith also pointed to problems involving the city's CDBG program while arguing for changes in how Pottsville handles its financial and grant-related operations.
"Tonight we just made a payment for $146,048 out of the general fund because of CDBG issues," Smith said. "This is not a satisfactory program. If everything was humming right in CDBG, we wouldn't be here."
The city's Community Development Office is responsible for the application and administration of various federal and state grant programs, according to the city's website.
Price Requests Preservation of Records
The disagreement did not end with the 3-2 vote.
Immediately following council's approval of FSL, Price formally requested that records associated with the arrangement be preserved.
"I'd like all records, including emails, text, and call logs preserved and forwarded within a 5-day window for the right to know for the open records law," Price said.
The request followed months of debate over the city's financial condition, its use of outside consultants and how financial and grant-writing services should be selected.
FSL will now serve as Pottsville's independent financial adviser and grant-writing consultant under Resolution 168, while the city's existing CDBG and HOME-related consulting arrangements remain outside the resolution's exclusivity provision.