Before yesterday's meeting of Northampton County Council's Finance Committee, chairman Ron Angle made sure each member was provided a copy of Monday's Morning Call editorial, condemning the tax rebate proposed by members Lamont (91 votes) McClure and Charles (Faithless Politician) Dertinger. "This is a ginned-up campaign issue for the 2009 council and executive races, not something to handle county finances responsibly. Council should drop it."That's unlikely.
Budget Administrator Doran Hamann gave council members a complete financial picture, projecting that, at the end of this year, the county surplus will only be $2 million.
Essentially, McClure and Dertinger are proposing a $7.7 million tax rebate, to be paid from a projected $2 million surplus. Howe are they going to do that?Magic.
Oh yeah, it's also going to cost the county to cut the checks and send them out. At one point, McClure estimated it would cost the county $300,000 to mail rebates. Later, he claimed it would be just half that. Obviously, he does not know.
Angle and Cusick oppose the rebate, while McHale and Grube support it. McHale believes some of the unrestricted reserve could be used to pay down debt, so I'm uncertain whether she really supports a rebate.
Dertinger pontificated it is "quite ridiculous when you consider we are carrying as much money as we are. It's an obscene amount of money to be carrying around for a rainy day." Grube complained previous administrations had much smaller reserves, and accused the Stoffa administration of hoarding a large balance "for the next race or whatever it is."
Even if the measure passes, it will be vetoed.
Why does county exec Stoffa believe it necessary to keep two months of expenses in reserve? The GFAO (Government Finance Officers Ass'n) recommends that "general-purpose governments, regardless of size, maintain unreserved fund balance in their general fund of no less than five to 15 percent of regular fund operating revenues, or of no less than one to two months of regular general fund operating expenditures."
Roughly a quarter of the county's revenue comes from real estate taxes. The rest is pass through money from the state and feds, which trickles in after the county seeks reimbursement. Between January and March, when tax revenue starts flowing in, the county must have sufficient funds to pay its way for ordinary expenses. In addition, there must be money for the labor contracts continually negotiated.
The Dertinger-McClure proposal is a fiscally reckless appeal for votes. If they were serious, they would have at least obtained reliable estimates of its administrative cost.
27 comments:
Stoffa and Angle need the money for the 33 million dollar parking deck they want to build. Just 10 mil less than the actual courthouse that you are always flipping out about.
How much is the fund balance actually ?
Anon 7:58,
If you read my blog, and are asaking that question, then I can't help you.
Anon 7:26, Yeah, the parking project sounds horrible - a long-term solution that gives the county room to expand its courthouse and prison without knocking down people's homes or buying an Atiyeh property.
Instead of being interested in the long-range needs of the county, it's much better to be interested in what benefits a campaign contributor.
General Fund Balance: 95 mil.
Unrestricted: 48.5 mil.
Restricted: 47 mil.
Unrestricted Fund Balance at the end of '07: 60 mil. (Admin. used 12 mil to balance '08 budget.)
When I questioned Mr. Hamann, he agreed that 30 mil. was an adequate fund balance. He also agreed 24 mil. was an aequate fund balance. He also agreed 20 mil. was an adequate fund balance. Mr. Hamann agreed with me that the County Real Estate Tax is responsible for only 28% of our Budget. By his own analysis, the Real Estate Tax does not fund 72% of the government. The 72% is funded by the State and Federal governments.
When Mr. Dertinger questioned Mr. Hamann about when the County had to tap the unrestriced fund balance even at the 14 million dollar level, Mr. Hamann did not and could not answer him, because it has never happened.
The fact is that on April 17th when we vote the unrestricted fund balance will be nearly 50 mil. And even if the rebate is approved, there will still be 40 mil. in the unrestricted fund balance. If the rebate is not approved, the fund blance will continue to grow to the Administration's predicted 64 mil. by the end of '08. That is nearly 20 mil. more than even their highly dubious formulation indicates that we need.
We've over taxed Northampton County taxpayers, and its time to begin giving it back.
Lamont McClure
Mr. McCluree, I will post your comment as a separate blog.
The blog was 1 to 2 months of reserve. Stick with 1 and return the money to the taxpayers. Not a big fan of county yahoos hoarding my money.
I'm with McClure. Sounds like a fiefdom.
I must say John Todaro was right. He kept saying that NC sould buy the Larry Holmes building for the extra office space and ample parking there. Any kind of expansion plan at the NC govornment center is a joke at best. Build some offices at the Gracedale location also to do more out of towner requests and do more operations by mail and the internet. It is parking at the NCGC that is the problem, not the volume of requests. 33 million to park there would be a slap in the face of every citizen in NC because 99% of these people are the same ones who park there every day. They are the 99% who are crying about parking. I will bet you that 80% of the citizens of NC have never even been to the NCGC. If these people who park there every day can't find a spot... let them walk a few blocks and save the taxpayers $$33,000,000
"$7.7 Million Tax Rebate From a $2 Million Surplus"
Must be a believer of those 'pills' I keep getting offers for, in my email in box. I think they can grow anything bigger.
O_o
Anon 11:06,
Bullseye.
Thank you Councilman McClure for your proposal on behalf of taxpayers. You layed out a very clear explanation of the 'facts' as opposed to the political speak of the Administration.
You are brave to come on this site since you are often smeared here and it is a Stoffa safe zone.
I'll second that, although I disagree completely with McClure. I appreciate that he did come on here and spell out his position, and will post his comment and my continued concerns tomorrow.
Hey Bernie,
how come the Mr Mcclure can come on your blog to comment on giving the taxpayers a rebate, but will not comment on your blogs about why all this extra "money" that is lying around isn't helping pay the county's own hard working employees a livable wage?? --hint hint like the overworked, highly underpaid employees from the revenue department who would be designated to do all the lengthy work involved to get these rebates to all the approx 116,000 homeowners who live in the county?? We don't even have the time to investigate and process "one" refund to "one" homeowner because of all the other higher priority work that is lying on our desks (and piles up even more every day) let alone this great feat council is trying to propose.......think about it. It would be much appreciated if the county would realize how bad the turnover is in this office enough to actually address the issue and do something about it. Oh I forgot, this is the county we're talking about......it's more important to mull over and decide to spend over a 1/2 a million on council chambers so that they can have a pretty seat to sit on and carved ceilings to look at for the hour they actually conduct their meetings............ silly me I forgot. All this overtime I'm working must be making my brain short circuit.
Thanks Bernie, its nice to see that someone uses the brain God gave them for some good---ever consider running for a county council position??
Thanks Bernie, its nice to see that someone uses the brain God gave them for some good---ever consider running for a county council position??
I appreciaste the nice words, but even I would never vote for me. The administrative cost of paying this rebate has clearly had no consideration, and I'll be responding to McClure's comment in a blog ready for tomorrow.
Mr. Stoffa should do the politically astute thing instead of the civic-minded thing and support the tax rebate. Hell, he should increase the rebate by 25 percent over what McClure and Dertinger are proposing.
My reasoning lies along these lines: 1.) The public never rewards public officials who are actual fiscal watchdogs and who force us to eat our peas and beets. We want our candy and our tax rebates now! Therefore, Mr. Stoffa, by acting responsibly and reasonably, is only increasing his odds of being defeated in the next election. Any of his long term plans will go for nought and it will be back to the pay to play business as usual days in Northampton County.
2.) By acting in a fiscally responsible manner, and likely getting defeated in the next election, he will leave a vast reserve in the county coffers. This reserve will then be doled out by the demagogue who beat him and that person will get all the credit for "funding necessary projects" and "meeting the needs of the community." Ask Jane Ervin how this sort of thing goes. She could write you a book.
Thank you for running your blog. I enjoy it.
Anon 11:12,
Stoffa won't do what's politically expedient, even if it costs him his office. he does what he thinks is right. He's very stubborn that way. But I've noticed people really respect him for it.
For example, he vetoed that tax rebate for soldiers in Iraq bc, quite frankly, it is illegal. It's a good idea, but was drafted poorly. Now no one is going to complain, but Stoffa thinks we need to be fair to all vets, niot just those in Iraq. So he vetoes the ordinance against everyone's advice, and people began to see that ordinance was purely political.
Now, with respect to that cash reserve, he has history on his side. You mention Jane Ervin, who was ousted for a 70% tax increase precipitated by a courthouse expansion that is only now underway. In NC, things are a little different.
Reibman was spending the seed corn, and once it was gone, there were massive layoffs and tax increases over 2 years that nearly equalled that 70%. It happened bc the cash reserve was not set at the right levels. It cost Reibman his job. What Dertinger and McClure propose will put ous on that same path again. Stoffa won't permit it.
Stoffa inherited a huge surplus thanks to the guts of Reibman.
Economic stimulus package of Reibman allows Stoffa the fiscal wiggle room to do what he has done-nothing.
He will leave office with the Reibman surplus and you will cheer.
To the revenue employees. Ask Stoffa why he won't pay you more. as Executive he could put it in the budget and send it to Council, you backed the guy and now we all pay. Revolt leaders you can complain but my dilema is your fault not Reibmans.
We can beat up the thinking processes of Dertinger and McClure all day. Seems too easy here. However, the council President and VP are party members and they won't rein them two in? So who is really at fault?
I don't believe McHale or Grube perceive themselves as partisan Democrats, at least not usually. There are times when they act that way, but not often. I actually think they are more independent, and that it is McClure and Dertinger who attempt to make everything too partisan.
Excuse me Mr. anonymous 2:54 am--
just to inform you, no I did not ask nor vote for Stoffa, and yes Bernie is right on the money in his more up to date article--Reibman screwed us all up big time, gave us a really nice pay freeze because of his stupidity and selfishness and over the years look at what its effect is on our revenue office. If the county when Reibman was still standing remembered the employees they wouldn't have sought help from a union which put things on hold for us longer. You can't run a government down for 8 years and expect it to pick up in 2 it doesn't happen, especially when more selfish idiotic council members like Mcclure (I vehemently wouldn't have and didn't vote for him either---uh hello it was council {I do recall Mcclure's name being one of them} that kept denying us a raise to begin with, and it was that silly wife of his that tried to do his campaiging in our office not too smart on his part since I would expect that if a council member wants more votes from the employees he represents, then he would be better prepared with the knowledge of where the employees stand as far as their raises, because she had the nerve when trying to play advocate for his campaign to inform us all when asked that all the county employees received their raises already........ Lets just say that the employees were not too happy.)
So, then how in fact would or could anyone validate that all Stoffa would have to do is hand over some numbers to council for them to approve, when they were the ones who kept denying us to begin with????
Perhaps you should get all your facts (instead of ridiculous opinions) straight first before trying to show us how smart you think you are.......and stop accusing "everyone" else for making votes they did not in fact make.
Ask Stoffa why he won't pay you more. as Executive he could put it in the budget and send it to Council,
This is BS, by the way. There is no wat that Stoffa can unilaterally give a payraisae to members of a collective bargaining unit. That would be considered a union bustin' move.
Incidentally, who the hell blogs at 2:54 AM?
Annon 10:02,
Employee's can disagree. You claim you didn't vote for Stoffa then give an erriely simmilar speech that I heard from Pro-Union (and Stoffa) hotheads before the primary. At least Reibman didn't lie and was straight with us. Now you take it out on McClure, who next Dertinger. Yea, your'e independent alright. Stoffa and all of them on Council are to be faulted and won't get my vote.
Well we got your guy and that went real well. Most of us voted against Reibman based on your opinion and so-called promises of Stoffa. Thanks alot.
I am an insomniac trying to figure out how to pay bills BO, and to 10:02 must be nice to post from work when you are so busy. Won't be fooled again.
http://www.mcall.com/news/opinion/anotherview/all-mcclure4-11.6349757apr11,0,6027060.story
Excuse me, anonymous exactly what are you trying to pull with constantly "assuming" my thoughts and opinions, and lastly my blogging location at that........your quote..........."Most of us voted against Reibman based on your opinion and so-called promises of Stoffa. Thanks alot."
.........as mentioned before, I did not support Stoffa, and neither do I now, especially after the way he treated the lump of traffiking employees that confronted him in his chambers as to rally and question the fact that our raise was being denied yet again..........
and have you ever heard the expression of, you know what "assume" means??????-------it just so happens that I was not at work when I was posting, but no these thoughts never occur to people who believe they have all the answers do they??
.........if we could get back to the real subject Bernie started with about how "financially irresponsible" it would be for the county to give a rebate from money that "the county budget administration" clearly tried to show wasn't there?????
Are Tax Office employees blogging during the day ?
This is rich. A county employee dares criticize a member of county ccouncil and gets tagged for posting a daytime comment. County emplyees are permitted to use their computers to express themselves just like everyone else. Let's stop treating them like little children and realize people do make personal use of their computers at work. So long as they don't abuse the privilege, there is nothing improper about it. Whaty bothers the insomniac anon is that county employees see right through this BS for what it is.
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