Pfenning: $300,000 Casino Revenue Shortfall Predicted

Bob Pfenning

Yesterday, and in the past, I've written about political Controllers like Northampton County's Steve Barron and Lehigh County's Glenn Eckhart. Neither is an accountant. Both use their office to advance their political agenda. Then there's Bethlehem's Bob Pfenning, who has in the past contributed heavily to Mayor John Callahan's political foes. There's no love lost between those two. I'd expect him to unload on Callahan. But he didn't. After listening to his quarterly report last night, which lasted about three months, Pfenning impressed me as a fair-minded fiscal watchdog. He has been good for Bethlehem.

He's an appointed Controller, picked by the Northampton County Court after Council members were amazingly unable to reach a consensus.

I told Bob I had no idea why he even bothered applying because there was no way he would get the appointment. Though he's a CPA, he actively backed three Republicans trying to unseat Democratic opponents.

After assuring him he was wasting his time, he got the job.

Instead of using this position to play politics or make policy, Pfenning instead seems to have his eyes on finances. All he does is watch the money. Council President Eric Evans can't gong the Controller for going on too long. And Pfenning did that in his quarterly report. But he also made some interesting observations.

Casino Host fee. - Pfenning predicts that this year's casino host fee will be between $313,000 and $363,000 lower than projected.

Amusement tax: - Though budgeted at $600,000, only $23,442 came in during the first quarter. Pfenning conceded that much more revenue is anticipated after Musikfest gets under way.

Unpaid City fees. - Pfenning reports that $74,215 in money owed to the City is over 120 days past due.

Confirming purchase orders. - These are purchase orders issued after goods or services have already been ordered. Pfenning believes this should be kept at a minimum, and complimented the Callahan administration for "making good progress" in eliminating the practice.

Bond Proceeds For Minor Repairs. - Pfenning cautioned against using bond proceeds for repairs, unless they are designed to extend the useful life of asset. He noted that, contrary to the best practices recommended by the Government Financial Officers Association, the City was using bind proceeds to repair garage doors and air conditioners. He likened the practice to using a credit card to pay for current expenses. In next year's budget, the Administration will make an effort to pay for minor repairs from current revenue.