About Me

My photo
Nazareth, Pa., United States

Wednesday, September 01, 2010

Financial Woes Persist in Johnny Casino's Bethlehem

Yesterday, John Callahan apparently had a news conference in which he detailed his plans for reducing the national debt. I sure hope they're nothing like his financial plans for Bethlehem, or we're all in trouble.

A devastating audit of Bethlehem's 2009 finances reveals that it finished the year $8.5 million in the red. What's worse was its practice of robbing Peter to pay Paul throughout the year. The City took tax money intended for other municipalities. It mixed restricted funds (like money borrowed for capital items) with unrestricted dough. It invested in goofy hedge funds for its pension. It missed its annual pension contribution.

Business Administrator Dennis Reichard's defense to City Councilman David DiGiacinto? "This isn't stuff that anybody's going to jail on."

How reassuring.

When the figures came in, Johnny Casino was MIA. Maybe he was playing craps.

Last year, to meet everyday expenses, the City borrowed from something called the non-utility capital account, a fund of about $5.5 million in borrowed money, set aside for capital purchases and improvements. But dipping into that account rendered the City incapable of paying for items vital to public health and safety.

A perfect illustration is a new, 105', aerial fire ladder truck. It was purchased from Glick Fire Equipment Company in October of last year, just in time for Fire Prevention Week. Purchase price? Around $750,000, and $250,000 of that sum was paid immediately in CDBG money. The rest was supposed to come from that non-utility capital account. But because Bethlehem had dipped into that account for operating expenses, the firetruck sat. Firefighters were unable to even train on it, much less put it into use.

Despite all the findings in this audit, Johnny Casino has apparently learned nothing. Here's the latest from people on the inside: "The City has 8 cruiser cars that haven't been paid and they are painting and detailing them. Ford Motor Co. called and told them they better not be using these cars because technically they still belong to Ford. I heard that one of the cruisers was already put out on the road and they had to bring it back to the City Garage."

11 comments:

Anonymous said...

how many times you gonna revisit the audit between now and the election?

Bernie O'Hare said...

As often as I receive evidence that Callahan is ignoring the findings.

Anonymous said...

HAHAHA! You find evidence? You mean the Dent campaign calls and says bring it up again. Wouldn't it be better to criticize Callahan's policy statements or something a little more legitimate than this? It's getting old. Even for your most ardent followers it's getting really old. Try a different approach or ask the Dent people for some new "dirt".

Bernie O'Hare said...

That information has nothing to do with the Dent campaign and comes from people who work for the City and are disgusted. Keep telling yourself it doesn't matter. You sound like Reichard, Holland and Willie Reynolds.

Anonymous said...

"Try a different approach or ask the Dent people for some new "dirt"."

You should probably be careful what you ask for in regards to dirt on Callahan. We all know there is plenty of dirt for the Dent people to find. For example, they may want to look into why the successful finance director abruptly left the Callahan for Congress campaign. Rumors are running rampant...

Anonymous said...

Bernie,

You shouldn't believe everything you hear especially from a union worker who feels they deserve more and doesn't care about the taxpayers.

Anonymous said...

NEXT PLEASE? I dare you to write one bad thing about Dent. It is impossible because you can't or because he's never actually done anything?

Anonymous said...

"We all know there is plenty of dirt for the Dent people to find. For example, they may want to look into why the successful finance director abruptly left the Callahan for Congress campaign. Rumors are running rampant..."

only in your fevered, porn-addled brain.

Anonymous said...

Some perspective is needed here.

Dent voted for devastating bailouts.

Callahan's sins are nothing compared to Dent's damage.

Bethlehem will quickly recover and maintain its status as the Valley's best city.

Charlies mudslinging blogospheric bitch slapping aside, the country will likely never recover from Charlie Dent's support of bailouts.

Anonymous said...

Charlie Dent supported George W. Bush! Enough said!

Anonymous said...

George Bush, Big Oil, Wall Street, blah blah blah. Zero originality. That is why Dent wins in November. Sam Bennett tried the exact same attacks and no one believed it then.