Exec Lamont McClure Delivers Last Report to NorCo Council

NorCo Exec Lamont McClure is stepping down at the end of the year. At last night's meeting of County Council, he delivered a final report that details the county's financial position and employee compensation. 

So what I wanted to do with my final report was frame for you where this administration ends financially, and we just did the budget, so we're not gonna relitigate that. We litigated it, and it concluded.

But I sort of, I do think I need to talk a little bit about what the financial picture, the county, is because there was a lot of talk about that vis a vis, the state's inability to timely pass the budget. So, we anticipate, and these aren't my estimates, these are Brandon Dunstain's [Budget Administrator] estimates.

When the books close in February, we will have 37 to $40 million in cash. So that was a concern that we would be out of cash. The new administration will be able to make payroll and tell the taxes roll in for the new year.

I wanted to also let counsel know and create the record that, as we walk out of here, Northampton County government will have $1.2 billion of borrowing capacity. Let me repeat that, Northampton County will be left by this administration and this council $1.2 billion of borrowing capacity. This comes despite the fact that we built a forensic center, and we've borrowed money to ameliorate a 50-year-old crumbling garage. So the $1.2 billion is more than adequate for future executives and councils to do whatever they need to do in terms of the public works of Northampton County. So I thought that was important to let everybody know.

And while we're talking about borrowing capacity, our bond rating, as I walk out this door, is double A1. Which is the second best bond rating you can have, and I believe, the finest bond rating of any municipality in the Lehigh Valley. So, not only will you be able to borrow $1.2 billion, if you have to, you can borrow it for less money because your bond rating is so solid.

We have also talked about pension, and OPEB  [other post employment benefits]. So today, the pension fund sits at $566,642,484. Almost $600 million. There are people, not yet born, who will work for this county, that could be covered by this almost 600 million dollars. So it's very important for us to understand where we are today, and that is at almost 600 million. The OPEP Fund sits at $59,249,712. The total under management - I added it up - $625,892,196. That's what I am leaving as I walk out. The door.

One other thing that I want to talk about is the county's long-term indebtedness. 20 years ago, our long-term indebtedness was $128,743,766. By the time I took office in 2018, our long-term indebtedness was $110,881,061. We got it down, despite having borrowed, to build the state-of-the-art forensics center by 2024, we got it down to $69,861,859. It's gone up a little bit to $84,381,512, because we borrowed the money to fix the crumbling 50-year-old parking garage, but still below, when I took office and substantially below, where it was 20 years ago.

Now, this financial picture is sometimes connected to a fallacious argument, that fallacy, that this was done on the backs of our employees. And that is not, in fact, the case.

What do we know about employee compensation? One of the things we know about employee compensation is that the ever-increasing cost of healthcare diminishes whatever employees get in their raises, correct? 

So for the last, and I'll provide, I'll provide your staff with this information so that you can all have it in front of you to digest and pass on to the new members of council, but for the last 8 years, our employees' healthcare costs to them have not risen. For eight years, our employees' healthcare costs, to them, have not risen. I don't know of another employer where that happened. If you find one, let me know. It is a unicorn.

Additionally, there's this notion that our employees  - who are valuable to us - haven't received their fair compensation over these last eight years, and I'm including the eighth budget that just passed. And I want to just go over with you, as I promised, what the compounded totals of their raises have been over the last eight years. And we broke it down through each of the bargaining units.

So, to start with the nonunion career service, their compensation has risen 27.87% during my time as county executive, and during this council in the previous council's time governing.

The corrections officers, they have risen 27.78% plus 75 cents an hour in that first contract they got when we arrived.

AFSCME Gracedale, they have risen 27.27%. AFSCME residual unit, 26.61%. Their salaries have increased. And don't feel bad for AFSCME residual, because although it's 2% in 26, in 27 and 28, they get four and a half and four and a half. So they'll be tacking another 9% onto that.

Deputy sheriffs, they are 30.9%. Their compensation is raising over the last eight years.

The Detectives Association, Detectives, have gone up 36.2% over the last eight years.

The Human Services Workers, the folks at DHS, nice folks who come here, their compensation has risen 34.93%. And the steel workers, uh, at Gracedale, it's 33.53%.

So it is just not true that, you know, our excellent financial position is based on not having paid folks, especially in light of the fact that healthcare is not risen in the last eight years. 

That concludes my report.

Thank you.