David DiGiacinto has only been a member of Bethlehem City Council since January, but was clearly disgusted by Bethlehem's bad marks in an independent audit of the City's finances in 2009. In a local government known for its civility, he had some testy exchanges with Business Administrator Dennis Reichard and Controller Meg Holland at an August 11 Finance Committee meeting. Listening to a presentation by Tracey Rash, a CPA with MaherDuessel, he summed up his complaints. "Basically, we had a negative fund balance ..., we have misuse of transfers, we transferred funds we shouldn't have transferred. Some of them, I guess, are considered illegal, against City Ordinance. We had internal control failures. We had an inability to make payments, pension fund payables. I'd say that's pretty much a disaster, fiscally mismanaged year. Wouldn't you agree with me?"
"No," answered Business Administrator Reichard. "There's not one bank statement that was negative. ... We did not fiscally mismanage this City. I take exception to that. Every bill was paid, every debt service was paid, every payroll was made."
"That's not what this audit says," countered DiGiacinto.
"This isn't stuff that anybody's going to jail on," responded Reichard, becoming defensive. "You may want to look at fiscal mismanagement. We're managing the City the best that we can. That's your words, that's mine."
"Where's the Mayor. By the way, where's the Mayor?" asked DiGiacinto. Mayor John Callahan was absent from yesterday's meeting, and DiGiacinto's question went unanswered as Chairman Reynolds tried to keep the meeting from spinning out of control.
DiGiacinto: "Is it true or not that the casino revenues last year, without the transfers from the Escrow and the fact that you didn't pay a lot of bills on time, ... that's how you really got through last year, Dennis? Let's be factual."
Reichard: "Isn't it true that if the federal government didn't bail out all the corporations ... "
DiGiacinto: "We're talking about Bethlehem here."
Reichard: "Awww, same thing. Same thing."
At the end of their exchange, DiGiacinto said he's simply unable to understand how Council adopted this year's budget, to say nothing of 2009. "You have a bad economy, as everyone likes to say around here, and you don't act conservatively? That's the disappointing part about all this. Instead, you raise the budget by six million bucks."
Then DiGiacinto asked Controller Meg Holland, "Where've you been?"
DiGiacinto had been Meg Holland's Democratic opponent when she ran for Controller in 2007.Furious, Holland exploded, "You want to know where I've been. I want to know where the person before me was. That's what I wonder, because this has been going on for years. ... It has not been the fault of this Administration."
She then detailed some changes she's recommended: increasing fees when police serve at private functions; increasing medical premiums; adding use permit fees; and re-billing accounts receivable; stopping the practice of allowing some City employees to take cars home, which costs $100,000 per year; and re-negotiating cleanup costs with ArtsQuest, which often costs the City more than it receives in payment, which is sometimes ten months after it was billed. "I think an expense like Musikfest - the cleanup and whatever, there should be some up front money given for that. We're paying people on a daily basis to go out there and clean up. We're not gonna' get paid 'till ten months later? We should be getting half of that fee up front."
DiGiacinto pressed Holland, asking her what she's doing about the problems identified in the audit, such as juggling funds in different accounts. Holland replied that was being done thirty years ago. "I'm asking you now, I'm not asking about thirty years ago," insisted DiGiacinto. "What are you gonna' do about it? Nothing? Just let it go, it's OK? It's a simple question. I mean, I thought that was part of what you were going to do."
"Darn! Or was that gonna' be you, as the Controller?" sniped Holland.
Once again, Chairman J William Reynolds intervened, and another question from DiGiacinto went unanswered.
30 comments:
Oooh...excellent.
Maybe soon, Bethlehem will have the same disfunctional government northampton county has. way to go, Dave!!!!
go for it digi. reynolds is now known as willy the wimp. donchez asleep at the wheel as usual
If the controller moved money from funds segregated for other purposes without getting permission from City Council, she probably should be investigated and removed from office and face any criminal penalties that may be applicable.
Moving money around that is segregated for other purposes without authorization rises close to something called fraud.
You mean Callahan didn't even attend the meeting? How arrogant. He is thumbing his nose at residents. We've heard he does very little city business anymore. He's only interested in campaigning. There should be a law that candidates cannot run unless they resign from their current office. We've heard of other candidates that ignored their current responsibilities as they campaigned.
Is this J.Reynolds the son of a very nice businessman?
Wow. This DiGiacinto sounds like a real tool.
More sore loserism I see.
There should be a law that candidates cannot run unless they resign from their current office.
But only if they are Democrats. You forgot your caveat.
Municipal budgets are presented on projections of year end figures. City council should be asking questions. Should they be upset. Not necessarily. If a municipality projects a December payment of $1 million dollars and does not receive the payment until the following March, a year end audit is going to demonstrate that the projections fell short by $1 million. To correct the timing difference, the municipality needs to amend its current year budget to reflect increased revenue for the unanticipated late receipt. Until Bethlehem goes through all year end adjustments and budget changes, the charges are premature.
"Until Bethlehem goes through all year end adjustments and budget changes, the charges are premature."
This happened to Beth last year, too.
Wow. This DiGiacinto sounds like a real tool."
Every local government should have a toolbox full of tools like DiGiacinto.
OMGOSH! You mean "Blame Bush Has Come to Bethlehem" What is that!
Has the entire nationwide Democratic Party been issued a mandate: Blame Bush for Everything.
"Furious, Holland exploded, "You want to know where I've been. I want to know where the person before me was. That's what I wonder, because this has been going on for years. ... It has not been the fault of this Administration."
Digi needs to lay off the donuts.
"practice of allowing some City employees to take cars home, which costs $100,000 per year..."
What about checking cell phones for legitimate business calls vs. personal?
All of you seem to have no idea what goes on in the City of Bethlehem --- (and I admit that my comments may appear to be biased since I'm the daughter of Meg Holland)
1. Meg Holland's position is part-time and she spends at least 30 hours a week working on City of Bethlehem business -- she is onsite at her office at the city at least all day every Tuesday and Thursday and her private practice is blocks away from city hall - she does significant work from there and at home at night and on weekends.
2. Meg Holland does not work for Callahan and is not in his pocket(she actually perfers Dent)
3. Meg Holland has been cleaning up various financial issues and mismanagement at the City since she was elected -- the problem is that a lot had not been done in 30+ years therefore it TAKES TIME to get things changed - it doesn't happen over night - also with unions involved some changes take even longer...
4. Meg Holland has been sending memos and analyses to city council, the mayor and business adminsitrator since she was elected with recommendations how to cut expenses and correct inefficienies - some that have led to dramatic changes
Its extremely frustrating to read all of these ridiculous comments -- you all clearly have no idea what goes on -- why don't you set up a meeting with the Controller -- then you would have some idea!
Maybe you should do that Bernie. Bernie maybe you should also interview the auditors and ask them what they think about what Meg Holland has been doing...
All of your comments are ignorant and uninformed ... if I were my mom I'd ask DiGiacinto if he wants to take the job and let him go through all of the stress and difficult work... Meg Holland ran for Controller to help the CIty of Bethlehem - which she is doing ... but you're all too stupid to realize it.
I'll add that she may have been working behind the scense. I heard about the numerous memos to Council.
"This isn't stuff that anybody's going to jail on," responded Reichard, becoming defensive. "You may want to look at fiscal mismanagement. We're managing the City the best that we can. That's your words, that's mine."
Isn't there a code of ethics for individual CPA members? Couldn't
Reichard lose his association?
Sorry Daughter. Mrs. Holland accepted a job. No one forced her to take it. She could have resigned or made a public statement as to the 30-year mismanagement of her office. Did she? Keeping quiet does no one good, especially your mother and the city's overburdened taxpayers.
. if I were my mom I'd ask DiGiacinto if he wants to take the job and let him go through all of the stress and difficult work..
Maybe she should.
Is Meg Holland related to Ray Holland?
When you accept public office as when you accept any management position, you accept the good and the bad. You are hired to fix problems, not to offer excuses to quote my first boss. My first boss said if I wanted to hire someone to blame the predecessor, I might as well as just kept the predecessor. When I vote I vote to hear someone take responsibility, not to hear a tirade of excuses. As a voter I will make the final judgment if you or your predecessor is at fault. Until then, accept your responsibility.
There's a new sheriff in town, his name is DiGiacinto.
Those of us observing for some time have been expecting this. Now there is a person on council with a background and with actual experience in finance. What he has suspected and has now discovered is fiscal mismanagement from the mayors on down. The use of plural was intentional. Each mayor, each council member (except brand new ones) and Dennis and Wally are responsible.
The worst is yet to come...
VOR
I was one of the 27 in the room. I listened and it seemed to me that Digiacinto was making an sense. It's far past the time that Bethlehem stops sweeping their financial woes under the rug and start making real cuts.
Why was my post delete?
Write me back channel at BOHare5948@aol.com and I'll explain why I deleted your comment. It is completely unrelated to the substance of what you wrote, which by itself was fine. It relates to the name you chose to use.
maureen,
mommy show an immature lack of class by blaming this on a dead man
Who twisted Holland's arm to run? Settle down sweetheart you are not helping mommy.
she cried like a little spoiled brat when he mother was running for controller. Why? Because some dared to question mommy. That's politics baby. if you want to play with the big boys you have to have the stomach for it. now go to your room and pout
I have a lot of respect for Maureen bc she came on this blog, stated how she felt, and let everyone know who she is.
Although I think Maureen may have been a bit hasty and probably hurt her mother more she helped her, she said what she said out of love for her mom.
So let's knock off the anonymous attacks directed at her. Telling her to go to her room and pout is downright sexist. And doing it without signing your own name is cowardly. I suspect this latest attack comes from one of the trolls who infest this blog, and not from any of the players. But Maureen, I want to apologize for that dig.
And to the troll, she's no pol. If you want to slam her mom, fine. She's fair game. But Maureen is sticking up for her mom, and there's nothing wrong with that in my book. Do you feel like a big tough guy when you slam a woman anonymously?
Bernie -
I'm not one of those whose comments approached what you are considering a slam, but you have to admit her post was whiney and accusatory and took a direct shot, telling people they were ignorant of what really goes on in Bethlehem.
When she came with that attitude, which transcended simple defense of her mother, well, I don't think the pout comment was off at all. She is pouting publicly.
And, don't be so sexist as to believe boys don't pout, too.
You are right. She did make some incredible statements and opened herself up, but she also said who she was. Now I'm going to go pout.
Post a Comment