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.