Back in February, The Morning Call published a Lamont McClure Op-Ed insisting that Northampton County is sitting on a $60 million mountain of cash, so there's no reason to be worried about Gracedale, the County's nursing home. In a dueling op-ed, I argued that we really only had about $15 million to spend on day-to-day expenses. Which one of us was right?
According to LarsonAllen, the County's independent auditor, that would be me.
Manager Michael Palazzo, a CPA, in a review of his firm's 2010 audit at yesterday's Finance Committee hearing, stated that the the general fund undesignated balance at year's end was $16 million, which represents 18% (or two months) of general fund expenditures. Palazzo told the Finance Committee yesterday that future financial statements will footnote the total fund balance to prevent future misunderstandings.
McClure, who attended no Committee meetings at all last year and has to attend one this year, might want to think about doing the job he was elected to do instead of misleading the public. If he did that, he'd learn the following:
* LarsenAllen gave the County an "unqualified opinion," which is the highest level of opinion an auditor can give. It's often referred to as a "clean" opinion.
* At a time when cities like Allentown and Bethlehem are drowning in red ink, Northampton County finished 2010 in the black by $989,200.
* County debt decreased $4.7 million during 2010, as bond issues are paid down.
* Real estate tax revenue went from $81.7 million to $82.8 million, a 1.4% increase. This is the result of the Sands Casino TIF agreement negotiated by Executive John Stoffa, Council member Ron Angle and Bethlehem.
* But total revenues decreased by 0.1% as a result of declining grant money from the state and federal government.
* Hotel tax shot up 17.6%, from $1.17 million to $1.37 million.
* Gracedale cost the County $2.5 million in 2010.
* 77% of the County's workforce is union, spread out among 11 different bargaining units. Five union contracts expired in 2009, and another two expired at the end of 2010.
Just because the $60 million is spread out in different boxes does not mean county council can't access it. You are not being honest. Any competent reading of the report will make that clear.
ReplyDeleteStop bullshitting. All the auditors do is tell you if the money you put in the boxes adds up. It does. what you assign to the boxes is up to the county.
McClure is right. You Angle and Stoffa are still misleading the public.
No, it was pretty clear that there is only $16MM to play with. You can't take the swaption money our of a box like you moronically suggest, nor can you take out the money needed to pay bills. In fact, not enough was set aside for the swaption. It's $2 million short.
ReplyDeleteThank you Vic Mazziotti.
ReplyDeleteGood stuff. As a CPA, I know there are just three kinds of accountants: the kind who can count and the kind who can't.
ReplyDeleteTime to dump McClure!
ReplyDeleteMcClure has certainly proven himself to be a bad fit for a Council position.
ReplyDeleteWe got rid of Dertinger, another math wizard. If we eliminate McLure and Ferraro we are on our way putting together an intelligent council.
ReplyDeletePeg's purty smart. She gets paid for a job where her attendance record is atrocious. She economies her efforts and still gets paid.
ReplyDelete"* But total revenues decreased by 0.1% as a result of declining grant money from the state and federal government."
ReplyDeleteThis is the best part of the story.
When counties, municipalities, school districts, special interests, etc., learn to live within their means, the feds can stop confiscating and borrowing money to dole out to them. Just the tip of the iceberg, but we have to start somewhere.
Let the weaning begin.
It was nice to see Barron Von Footinmouth attend yesterday's finance committee meeting. Angle tried in every way to embarass him to the point of bringing up the controller's solicitor who according the the Barron is a "bargain." But in the end Teletubby just raised his arms in frustration and waddled back to his seat in the audience. Always refreshing to see Milt the Kilt make an appearance at a council meeting. Maybe even tonight??
ReplyDeleteGilbert wasn't good enough but McClure and Rev. "St. Bernadette" Martinez are financial wizards that no one questions.
ReplyDeleteMcClure was right and the bottom line is $60 million. The county "assignees" amounts and this Administration assigned certain amounts that Angle and Stoffa agreed on.
ReplyDeleteThe auditors told us nothing we didn't already know. It does not change the facts as presented by Mr. McClure. The bottom line is the county has $60 million dollars more than it needs to operate, period!
This audit was about silos and how they are filled as per law, not necessarily by how much is in those solo's.
We are all not blind Angle/Stoffa sheep O'Hare.
A Knowing CPA!
If you're a CPA, I'm a brain surgeon. There is no $60 MM pile of cash, and everyone will find that out in October.
ReplyDeleteMcClure very smugly told the Unions what they wanted to hear, knowing they were unsophisticated enough to swallow the story of the hidden $60 million. He really did them a disservice because under a private Gracedale they could have kept their jobs and still been in a union. Now when they get laid off, he'll just blame it on someone else and continue being smug. The losers in the end are the Unions.
ReplyDelete" Barron Von Footinmouth "
ReplyDeleteGotta' love the name.
Really? So I guess there's no reason to set aside money to pay bills or salaries or the swaption or for capital projects.
ReplyDelete77 % of the County's work force is Union. what a sad state of affairs.
ReplyDelete