Local Government TV

Wednesday, December 13, 2023

Divided Allentown City Council Adopts Fiscally Irresponsible Budget

Northampton County Exec Lamont McClure has been taking it on the chin lately. November's election was a disaster, and it cost him his Administrator and could end up costing him a re-election. His relationship with Council, already frayed, has been damaged more as Finance Director Steve Barron is getting testy with them.  Though three new pro-McClure Council members have been elected, he still is at odds with five others. But things could be worse. He could be Allentown Mayor Matt Tuerk. Just last week, Allentown City Council adopted a meaningless resolution in which three wannabe Mayors (Ed Zucal, Ce-Ce Gerlach and Cynthia Mota) joined a clueless Council member (Natalie Santos) to declare they have no confidence in Hizzoner. They'll be able to put that in their negative mailers. Last night, they voted down his requested 2% tax increase for next year. I get that. But instead of dipping into unspent ARPA funds slated for nonprofits, which can be used for revenue replacement, they opted to dig the city into a hole by taking the needed $762,045 out of the fund balance. 

Of course, this vote went exactly the same way that the vote of "no confidence" went. Wannabe Mayors Ed Zucal, Cynthia Mota and Ed Zucal all proudly said No to the tax hike. Santos voted the way the triumvirate told her, once it was explained to her several times. Voting to compromise and support a 2% property tax hike were Daryl Hendricks, Candida Affa and  Santo Napoli.

I've said before that no municipality should be contemplating a tax hike until next year at the earliest. That's because, over the course of the past two years, the federal government has flooded local governments with cash under  both the American Rescue Plan Act (ARPA) and the CARES Act. Allentown received $57 million under just the ARPA.

If City Council really wanted to dodge a tax hike next year, and be fiscally responsible about it. they could reduce the $1.2 million allotment in ARPA funds set aside for nonprofits grants. Those nonprofits came out in force to heckle, catcall and demand that Tuerk be admonished last week. The three wannabe Mayors need those people as political allies when they run, and of course will be taking care of their pals with "competitive" grants. So while it might be good for the average taxpayer to dip into that nonprofits slush fund, it would be politically unwise.  The mob that turned on Tuerk could just as easily turn on them, especially if they say No.      

Instead of taking $762,045 from the money they set aside for their pals and political allies, they raided the city's fund balance, its rainy day fund. That's about the most fiscally stupid thing they could have done. 

Controller Jeff Glazier explained the idiocy. He told them that a healthy fund balance can be used for an unforeseen expense, from, flooding that seems to accompany every rainstorm in the city to real natural disasters that require an immediate response. It can be used for emergencies. But City Council is taking $762,045 from the fund balance for a recurring expense. They are digging a hole, and next year, that hole will be twice as deep. They will have to dip into the fund balance to the tune of $1.5 million, assuming it's still even there. 

"You can't tell me that makes sense," said Glazier. "It's an easy way out, but it's not a good way out." 
  
The good way out would have been to take that unspent ARPA money away from clamoring nonprofits. 

But three Council members with political ambitions have no desire to be fiscally responsible. They just want to win the next Mayoral race. 

Easton has one troublesome Council member who seems to think the city should establish an office of  foreign relations. Bethlehem has two council members who are original members of the woke brigade. But Allentown has three council members who are there for themselves and their own ambitions, not the people.

As I said before, Allentown is officially cRaZy.  

16 comments:

  1. Do politician ever have a good budget.

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  2. I agree the non profit spending should be cut, but Council did its job last night and set the overall limit.

    If Tuerk doesn’t want to dip into the fund balance to cover the difference, let him come to council and propose cuts to the non profits as he sees fit. All he did so far was threaten to cut events that are popular with the public (like Lights in the Parkway). He did that when proposing an un-needed 7 percent tax hike in his original budget.

    Thanks to the majority on council, they called his bluff and Tuerk was forced to go back to the drawing board. Somehow Tuerk then found “responsible” ways to cut the original budget and brought Council a revised proposal with only a 2% tax hike.

    Obviously, Tuerk is trying to hang a property tax hike on council and a majority is smart enough to realize it. Tuerk needs to stop playing politics now. If he believes it’s a bad idea to dip into the fund balance in the New Year, he can start watching City spending on January First.

    Will he? I doubt it. He seems more concerned with “proving” himself right than doing what’s right for the taxpayers.

    Perhaps City Controller Jeff Glazier can also do his job and advise the Mayor on some areas in the budget that can be cut to avoid eating into the fund balance, instead of cheerleading for a tax hike. Did Glazier bring up the alternative of using the ARPA funds last night, or was he just another political hack there to do Tuerk’s bidding?

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  3. BernieOHare to 7:06, a Council that takes care of its nonprofit pals while ignoring the citizenry is not doing its job. Also, Glazier was sbsoltdly right. It is incredibly stupid to use the rainy day fund for an expense that willl be there next year. I just told you where to cut.

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  4. As a City resident, I could have tolerated a 2% tax increase, seemed reasonable. The elephant in the room in Allentown is LCA. Their annual water and sewer rate hikes make a 2% increase in City property tax look like chump change. While City Council publicly debates a modest tax increase, LCA just raises water and sewer rates significantly with little public interest and no public advocacy. The police pension grab given out by simpleton Roy Afflerbach and he resulting sale of the water and sewer systems to LCA by Pawlowski to pay for the police pension grab will go down as two of the worst public policy moves in Allentown history.

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  5. wee willie/tuerk - just two more turds in the dem punch bowl. Both councils think more about their political careers than they do the people they are supposed to be serving. But the real problem is the voters who blindly press the "D" button. Look in the mirror voters - you will see the real source of this foolishness.

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  6. I am sick of and a now deleting comments that lay the blame for Allentown's fiscal mess at the feet of Democrats. NorCo is Democratic and actually reduced taxes. When it was Republican, it raised taxes. Easton has had no real estate tax hike for many years and is Democratic. The reason cities have higher tax rates is because more affluent citizens do not live in them and industries have left while municipal services are far more costly in a city than they arein the burbs. This has nothing to do with political party. While one-party rule certainly exacerbates this issue, it is by no means the sole reason. So come up with more nuanced explanations.

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  7. Spending on every level of government, Allentown municipal up through Federal, is way out of control. Why? Self-serving politicians who realize the damaging effects of their foolish handling of OUR money can be years away. You can be sure the level of spending will not be reduced. They’ll find other money to throw around by raising other taxes, fees, and surcharges. Some services will be cut back to make a point, of course.

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  8. Atown makes NH county look like the Garden of Eden in comparison.

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  9. This is one of those deals where no matter how much money at the state and federal levels flows into the city, ASD and LCA they always plead poverty. Give em' two bucks, they'll find a way spend three. We could send another $1 million each and I guarantee they'd still sing the same song no matter which political party.

    It's politics 101. Look at what is going on in Washington the last 6 months. SAME THING! Currently they want well over 3/4 a trillion dollars for defense alone. Crazy stuff.

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  10. Bethlehem is adding another member of the Woke squad with Councilwomen elect Laird joining Kwiatek & Wilhem. Fortunately Bryan Callahan ran & will at least be a public voice to help expose Bethlehem woke politics that starts with its Marxist Mayor.

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    1. I believe you forgot councilwoman Van Wirt as well. Boy if I had mute button for her mic.

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  11. Allentown's problems aren't because of Democrats being Democrats, that's correct. Allentown's problems go much deeper. For one, the people (elected or community) who have lead [sic] the city over the past few decades have been, and still are a bunch misfits and, in some cases, criminals. Secondly, many of the elected officials don't appear very intelligent. The only entity with a collective IQ lower than Allentown city council could be the ASD school board.

    It's a city with a rich history but marred by inept, corrupt, and just plain stupid leaders whom seem to be getting more inept and dumb year after year.

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  12. "Bethlehem is adding another member of the Woke squad with Councilwomen elect Laird joining Kwiatek & Wilhem. "

    Laird has now been anonymously attacked several times in various posts, so I thought I'd share what I know. I have had the opportunity to speak with her and found her to be extremely well-informed about Bethlehem, more so than some Council members. I asked her about her independence and she was also questioned about it during the debate. She insisted she would be independent and form her own opinions. Until proven otherwise, she is entitled to the benefit of the doubt. Of course she is far more liberal than I am, but most city issues have little to do with ideology. Will she provide oversight? I believe so. Will she come up with creative solutions to city problems? I believe so. She might actually be a positive influence on the others.

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  13. The photoshopped Dumbo ears are petty. So much for civil discourse.

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  14. 1:04, That photo comes from the city web page. I did not touch it.

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  15. Hope your right about laird but she was endorsed by Reynolds which taints any independence she may proclaim. As you say, let’s watch the votes to find out which Laird shows up.

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