Northampton County Fiscal Affairs Director Jim Hunter approached Council's Finance Committee yesterday to state he has "good news" and "bad news." The good news is that the County finished 2014 with $28 million in its general fund, more than was thought would be there. The bad news is that $17 million of that sum is needed to fund the 2015 budget, resulting in a rainy day fund of just $11 million. Because the County spends $11.5 million per month, that rainy day fund is too low and will be noted by independent auditors. Moreover, it's a violation of the County's own 2010 ordinance requiring a higher sum held for emergencies. Though Council can take action this year to build what is sometimes called a stabilization fund, the County is going to be tagged by independent auditors.
I have some good news and bad news of my own.
The good news is that Hunter explained this succinctly and matter-of-factly. No bullshit. No corporate babblespeak. We ended last year with more money than we thought we'd have, but our rainy day fund is dangerously low.
The bad news is that nobody understood Hunter, even though he speaks English. From Executive Brown to Controller Steve Barron to every Council member who tried to explain what Hunter meant.
He meant what he said.
After they all weighed in for several centuries with their lengthy and confusing explanations of what they thought Hunter meant, Finance Chair Glenn Geissinger finally threw in the towel.
"I'm lost," he admitted. "But that's OK."
What more can one expect from a lowly banker!
ReplyDeleteHunter has been pretty good. When it comes to finance, he is very straight and lets everyone else try to explain it.
ReplyDeleteFor the last 3 or 4 years they been saying that the county has no money and yet every year they end up with more than they predict???
ReplyDeleteBernie,
ReplyDeleteBased on what I saw from yesterday's meeting you missed part of it.
Hunter was clear and concise.
Geissinger and Phillips got it.
Werner, got it, but did not want to admit the point.
Parsons did not get it and that was why Geissinger threw in the towel and said I am lost, because he was lost why Parsons was not grasping the concept.
It seems the Dems have this obsession that the amount budgeted never gets all spent so they seem to think we should not worry about tomorrow. This ding from the auditors will be an issue if they need to issue a bond.
No, I believe it's safe to say that, other than Hunter, nobody relly had a clue.Gottas' call it like i see it.
ReplyDeleteBasically he was saying that either taxes have to be raised or more cuts need to be made. The amount budgeted never gets spent because of vacant positions that are budgeted for a full year and Brown had a lot of vacant positions.
ReplyDeleteGeez. We have another expert out there who wants to put his own spin on things. Can't any of you take anything at face value?
ReplyDeleteIf Bernie's synopsis is correct, does anybody else have a problem that the finance chair and council have so little financial knowledge they cannot understand the financial results?
ReplyDeleteIt was not the Finance Chair and Council. It was everyone. It was actually somewhat comical. I give Geissinger credit for just throwing in the towel. I have no idea what point Werner was trying to make bc I think he has no idea what he was trying to say. And so it goes for every person who chimed in. The Executive, Barron, Parsons, Geissinger and Philips all had to weigh in with interpretations, and it was pretty much all nonsense. Hunter had two things to say, and wasn't reading tea leaves or interpreting. One, we ended last year with more money than we thought we would. Two, our rainy day fund is low enough to mean that we will be tagged by independent auditors.
ReplyDeleteWerner appeared to possibly be taking a shot at Republicans increasing the tax rate, IMO. He couched it in the language of "we were told the sky is falling in and now I don't see there is a problem." He mentioned errors in past predictions, and IMO was suggesting the 1 mill increase wasn't needed - but everyone knows that it was. Hunter had a very clear message, but he delivered it to a group of politicians.
ReplyDeleteI believe Geissinger said "I'm lost" as a way of saying "let's move on". It was a poor choice of words under the circumstances, since Parsons was in fact lost.
Werner was of course trying to interpret things to his political advantage. But he failed. So did everyone who then had to weigh in with their own interpretations. The only one who actually looked like he knew what he was talking about was Hunter, but he was playing no games.
ReplyDelete@9:43,
ReplyDeleteThat seems to be the norm with the average politician. They want to be in charge of everything, but know nothing.
9:34, not when it comes from u
ReplyDelete"Geez. We have another expert out there who wants to put his own spin on things. Can't any of you take anything at face value?"
ReplyDeleteBernie, I sat and watched the video. Your face value is yours, I think you will agree. The resolution isn't such that we can see their faces clearly, but the audio is clear.
Some people here may not have viewed the video, but I put my time in. I reread your synopsis, and see you used the phrase "he admitted" in association with Geissinger's last comment he was confused. He seemed to follow all of the discussion up to the point he said that, without a sound of confusion in his voice. Maybe it was to give Parsons an out.
Yes, your take is possible. Geissinger may have been speaking more out of exasperation than confusion.
ReplyDeleteGeissinger has an accounting degree. I would hope this is something he could grasp.
ReplyDeleteI believe he does and may have been speaking out of frustration.
ReplyDeleteWell I see all the Rs but Mr. Phillips folded! Get rid of them all!!! Most especially Peg Ferraro! I wish I lived in her district.
ReplyDeleteYou do. She's an at-large member of council.
ReplyDeleteBarron has not had financial clue in 8 years. Why o why do you include him?
ReplyDeleteBarron is the people's choice! You don't get to admonish him for doing the people's will. Get over it already. The guy has charisma and is a real watch dog now. What more you want from him?
ReplyDelete