Peg Farraro, Ann McHale and Ron Angle all voted against this idea, but five Council members decided to gamble with your money.
We've lost.
In 2009 alone, the swaption payoff grew from $10 to $14 million. From 2010 until Monday, it has risen to $22.3 million, due next year.
Thanks to Glenn Reibman, Northampton County taxpayers now owe some bank $22.3 million for $1.9 million in 2004. What's worse, County Exec John Stoffa and the rest of Council are in the unenviable position of being forced to continue gambling. If they do nothing, the swaption might go up even more. If they pay it off and the swaption goes down, they'll look like idiots, too. No matter what they do, they lose.
Did I mention that Concord just happens to be Bethlehem's financial advisor?
36 comments:
Concord was Easton's financial advisors under Mitman. They made several bad financial recommendations that Easton will pay for over the next 20 years but one thing they didn't do was the swaption. Yes they recommended it but I know for a fact that Mitman asked several former officials, including Panto, and they advised against it. Thankfully Mitman listened.
Concord's worst advice was to refinance two pension bonds worth $20+ million dollars at a fixed rate of 7% and they ar enot callable. Panto has been trying to find a legal loophole to re0finance them but to date not successful. I only know this because I represented my union in a meeting the mayor called to update all unions on the financial status of the city.
So today the city pays 7%+ to invest $24 million in their pension fund which cuurrently is returning maybe 3-5% overall. Yes Concord's non-callable bonds are actually costing Easton money.
On a side note, I will say that I was impressed with Panto's compentency on city finances and he spelled everything out in a way that we all understood. The Panto team is really doing a good job on financial management.
At one point the swaption dropped just below $10 million. Stoffa should have pulled the trigger. So now we are up to 22 million. John Stoffa's poor management and leadership is costing the county taxpayers 12 million dollars.
A real leaser doesn't worry about how people will react to his decision. Whats a matter, poor Johnny boy may not be loved if he decides to sell.
You can spin and spin, but if the current county leaders were in fact leaders, you, Stoffa and the other pissants on county council wouldn't be dealing wiht this now.
Quit whinning, grow a pair and man up.
Who were the 5 who voted for it?
bend over bethlumites - it's coming and no lube
hey bernie, when were you on county council? what's this 5-2 vote and we lost! crap?
Dumbass alert at 7:47.
not as dumb as you bernie
Anon 4:06 AM, who doesn't have a life, still has a valid point. It was Reibman who got us into this mess but Stoffa and the current council appear to have blownn the opportunity to dump the swaption deal when it was at an all-time low. Stoffa has been without a CFO for months. What the heck is going on with that? And council, which ultimately has responsibility for the budget including the approval of bond issues and payment of debt has done nothing. They talked about a "trigger point" when the swaption should be paid off, but nothing was decided. Angle, who constantly claims that he is a financial genius has proposed nothing. So we just row merrily along, baling out the boat as the swaption leak gets bigger and bigger. One can only hope that by 10/12 we will be back down to $10 or less and the county wake up from this Reibman nightmare.
Anonymous 8:49AM
Given the current state of the economy I can't see the payoff figure going down. I do believe it might go higher. Stoffa and council blew it when they had the chance to pay off this debt
"Stoffa and the current council appear to have blownn the opportunity to dump the swaption deal when it was at an all-time low."
Untrue. Stoffa and the current Council are actually in a damned if they do and damned if they don't mess. They are being forced to gamble. It was never at an "all time low." When it was $10 MM, who's to say it would not have dropped to $5 MM? If it is paid now, and it drops to $6 MM, Stoffa will look like an idiot. If he doesn't pay, and it goes up, he looks like an idiot. This is completely Reibman's folly. Gambling should be restricted to Sands Casino.
"Who were the 5 who voted for it?"
It was opposed by Angle, Ferraro, McHale & Grube. The 2004 minutes are not on line, and I can no longer remember exactly who was on Council. I will track that down.
"hey bernie, when were you on county council? what's this 5-2 vote and we lost! crap?"
I was never a member of Council. When I say "we" lost, I am referring to taxpayers who will be forced to pay for this.
When the swaption was down to $10 million they should have dumped it. A no-brainer. There was no way it would have dropped another $5 million and that pales in comparison to the $12 million more it would cost them now. Stoffa and council should avoid tha Sands Casino at all costs.
A no-brainer? Really? Had Stoffa done that, he'd be drawn and quartered for spending $1 million for $1.9 million in 2004, especially if the swaption had gone down.
I recall no huge outcry from Council, or anywhere else, telling Stoffa to pay it off. Now that it has gone up, it is easy to say there was no way it was going to go down.
Let me ask you, does Stoffa pay it now or should he wait?
It's a good thing that mathlete Reibman is working his magic at the bridge commission, which just raised tolls 33%. The guy leaves a shit stain wherever he shows up and performs incompetently. His next stop is Musikfest. Beers will be $50.
So rather than lead, regardless of what some may say, old, "I want to be loved Stoffa", decided to do what he is best at, nothing. As a result he is costing us $10+million.
Stop the bullshit O'Hare. Stoffa should have sold. If people got mad, so what. Would his poor little feelings be hurt.
Other than you, Angle, Till and Owens, no one is going to be building statues to this guy. He moves so slow, as it is the birds just shit on him.
In your ongoing attempt to demonize Reibman for a bad decision you expose Stoffa's biggest flaw, he can't make a decision. Face it, if Stoffa and the fiscal wizard Angle had stopped pissing about Gracedale and knew what they were doing this thing would be gone.
Excuses excuses. Poor Johnny boy, don't be mad at him.
Where were you when you wanted Stoffa to pay?
This is truly a sad state of affairs. The same people who got Reibman into this mess are the same people advising the City of Bethlehem what to do. The same guy in Bethlehem (Callahan) who pushed for the swaption listened to the Reibman advisors. They got nice fat donations to their campaign funds and now we pay the price. Why hasn't anyone looked into the legality of these swaptions? I understand the guy who made a nice commission on this deal is now deceased. Still, where is the investigation? A true criminal investigation?
Where is the Reibman flowing today? Is it to Barron and Company. Is it to Callahan? Why don't you call Reibman and ask him why he did this to the taxpayers. Aren't we entitled to some explanation.
Lets see. Reibman has a crook named Soloman as his right hand man in County Government. The crook goes to Jail. We have a swaption costing us a hundred times more than Soloman tried to get away with, someones pockets were filled with gold, and no one goes to jail????? Where's the justice?
Agree with earlier post that an investigation be conducted. The AG is going after school supers' golden parachutes. Reibman and his gang of crooks should be investigated. Funny thing is, he's get work release to the bridge commission and not return to NCP, since they seem only administer the "release" part of the program.
Yes, pull the trigger. NOW. I can't cry over spilled milk, but we can prevent it from going higher, like it has in the past year. This is ridiculous.
Can't pull the trigger now. Too late. Stoffa and council should have dumped it at $10 M. No one would have complained.Government paralysis at its finest.
Where were you when Stoffa and Council did not pull the trigger? Hindsight is 20-20, but I recall no "experts" demanding that it be paid then. The truth is that Reibman put Stoffa and Council in an untenable, damned if you do, damned if you don't, situation.
We could fund Gracedale for 3 years on the sum that Reibman's folly will make us pay.
The "where were you" people aren't the elected leaders of the county O'Hare. That is the flaw in your argument. In doing your usual flack duty for Angle/Stoffa, you want to slam Reibman and portray poor John as a victim like the rest of us.
Here is the problem. Reibman's swaption went through with votes from county council. That is history. Now we have new "leaders". You argument is that Reibman's folly gives the Stoffa gang a pass on leadership.
No one needed to "be there" clamoring for anything. Ccounty Executive Stoffa and fiscal genius Angle should have pulled the trigger at $10 million, period. That's what the Hell they were elected to do. If later on, people hate their decision, that is the price of decisive leadership.
Christ O'Hare, at least Reibman made a decision, a bad one but a decision. Stoffa sits on his hands and you call him a leader.
He blew it and so did the financial guru, Angle. They wanted these positions, no one twisted their arms. If they can't take the heat that goes with tough calls, they should resign and let competent decisive people run things.
Was it a rumor that Gracedale is going to be moved to a different county building with 300 beds? Its under construction now....
I think its a rumor
The swaption is a rumor too.
DEmocracy is not a spectator sport. You don't sit back and complain. You try to make a difference, whether it is with Gracedale, the bond or the swaption.
You anonymously complain that Stoffa should have pulled the trigger already, But weren't saying diidly when the swaption was at $10MM.
But somebody was. Ron Angle wanted Council to come up with a trigger figure at which the swaption would be paid. That never happened.
You can try to tag Stoffa for this, but this is ALL Glenn Reibman It is completely unfair to put Stoffa in a position where he must gamble with taxpayer dollars, but that is exactly what has happened.
If he pays the swaption at 22 and it drops to 12, you'll be the first person screaming that he wasted money, just as you are screaming now.
It is a foolish transaction that never should have been allowed in the first place.
You are a Stoffa lackey and on this topic you are proving it.
I don't think that ANYONE is suggesting that Stoffa should pull the trigger at $22 M. You just don't get it BO. When they could have cut bait at @10 M they were whistling in the wind. Whether it was Gracedale that distracted them or some other lame reason both Stoffa and coucnil were negligent. It was Reibman's ugly mess but we missed a chance to clean it up. Now it will be a millstone for another year, causing anxiety and false assumptions about its effect on the county's fund balance.
No, If Stoffa had pulled the trigger at $10 MM, you'd all be screaming he should wait until it is $1.95 MM and that he just blew $8 MM of taxpayer money.
There is one, and ONLY one, person who bears the responsibility for this disaster - Glenn Reibman. Instead of looking at the real culprit, you slam the person stuck cleaning the mess.
It would appear he has not cleaned up anything, so why even bother writing this stupid piece. We get it you hate Reibman. Stoffa is benefiting from the Bush effect. No Obama fanatics blame everything on Bush to excuse nobama's incompetence. You do that for Stoffa.
If you are going to blame Reibman for leaving Stoffa "a mess", he has yet to "clean up". Will you praise Reibman fro leaving Stoffa the largest cash surplus in county history to live off of?
(crickets, crickets) Didn't think so.
You are really pathetic O'Hare. You blame a stupid Reibman decision in the past for Stoffa's lack of leadership in the present.
They should cut Reibman's nuts off so he can't pass those genes on to another generation of politicians.
anon 1:29, maybe Reibman can give them to you.
Joan M.
Was it a Republican majority of County Council that approved the swaption?
revised headline? Reibman/Republican Council Folly??
It was certainly a bi-partisan failure, but the leader and proponent of this idea was Reibman. It failed, and he tried again.
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