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Wednesday, April 01, 2015

NorCo Council Officially Establishes a Rainy Day Fund

By a 6 to 2 vote, Northampton County Council last night adopted an ordinance that officially establishes a rainy day fund that will segregate between 5-15% of the general government portion of each annual budget. Based on the current budget, that's between $6.9 and $20 million. A one mill tax increase, approved by Council last year will go into this fund, which is designated officially as the "committed fund balance." This measure was proposed by Hayden Phillips and Glenn Geissinger.

Before this measure was adopted, Budget Administrator Doran Hammann was asked what he thought. Hammann told Council that this fund is something "rating agencies would look at" when the County decided to float its next bond for capital improvements. "The bond rating is very critical to the price you pay," he observed. "I see no problems with moving forward."

"I don't see why we raise taxes and put it in a piggy bank," complained Ken Kraft.

"It's not a piggy bank," responded Glenn Geissinger. "I don't want our infrastructure to fail," he said, meaning the bridges and other capital improvements that are needed down the road, including $15 million in repairs at Gracedale.

Lamont McClure derided the notion of raid=sing taxes and adopting this measure "to please Wall Street and please accountants. He stated the fund balance is currently approaching $30 million.

As originally drafted, this fund would be in what Phillips called a "lockbox" that could only be opened by a 2/3 vote of county Council. Lamont McClure proposed giving the key to a bare majority, warning that a minority could thwart the will of council. That reasoning swayed Glenn Geissinger, who provided the fifth vote to an amendment supported by McClure, Kraft, Scott Parsons and Bob Werner.

Democrats Scott Parsons and Bob Werner joined four republicans in establishing this fund. "It is he right thing to do," Parsons simply explained. McClure and Kraft were the sole holdouts.

Peg Ferraro, fighting an illness, was absent. .
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5 comments:

  1. AnonymousApril 2, 2015 at 6:39 AM

    "Lamont McClure derided the notion of raid=sing taxes and adopting this measure "to please Wall Street and please accountants. He stated the fund balance is currently approaching $30 million."

    Exactly! Thats all these rainy day funds are about especially when the local government is already sitting on gobs of cash. The Republicans on Council that raised taxes to please the banking industry will certainly pay at the polls this year. It is unbelievable that taxes were raised by these so called conservatives especially during an election year!

    ReplyDelete
  2. AnonymousApril 2, 2015 at 6:44 AM

    The republicans that raised taxes are not up for election until 2017. But you can keep them from getting a super majority this year but not voting for the republican candidates

    ReplyDelete
  3. AnonymousApril 2, 2015 at 9:37 AM

    "The Republicans on Council that raised taxes to please the banking industry will certainly pay at the polls this year."

    You have it backwards. The people who raised taxes are not up for re-election, which made it easier for them to do it.

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  4. AnonymousApril 2, 2015 at 11:33 AM

    Shouldn't the headline say "fUnd"

    ReplyDelete
  5. AnonymousApril 3, 2015 at 9:23 PM

    This fund is for Brown to raise Cathy Allen's salary and rest of his know nothing minions while Council remains apathetic for this illegal use of funds with no consequence.

    ReplyDelete

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