Monday, November 5, 2007

Controller Race Update

The Bethlehem Controller race is winding down.

Here is the latest:

1. Maureen Holland-Schaeffer, Meg Holland's daughter, has posted a comment on a previous post, which I feel deserves some attention. Her comment is her mother's response to a letter to the editor which was published in the Express-Times on November 3, 2007. The letter questions Holland's mailer which states the budget in the City is $121 million. The writer states the correct amount is $58 million. Holland's explanation is as follows:

"In Mr. Horwath’s letter to the editor on November 3, 2007 he stated that the city budget of $121 million as reported in my campaign mailers was off by $63 million. The City of Bethlehem budget is $121 million, which I detail below.

Operating Budget (in millions)
General Fund 58.523
Water 18.000
Sewer 11.931
Golf 1.400
911 1.898
Total Operating Budget 91.752

Capital Budget (in millions)
Non-utility 13.650
Water 4.392
Sewer 3.211
Community 6.930
Liquid Fuels 1.417
Total Capital Budget 29.600

Total City Budget = $121.352


Unfortunately Mr. Horwath was only informed of the General Fund budget. The Controller’s job is the “watchdog” of all city accounts, therefore, only considering the General Fund budget would be incorrect.

Meg Holland CPA/ABV, CIA, CVA, CFE"

Fortunately, for the people of the City of Bethlehem someone with an expertise in accounting and the knowledge of the City's budget is running for Controller. The choice is clear, Meg Holland is the best candidate for City controller.



2. I saw this article on the Bethlehem Daily Start blog on The Morning Call website. Instead of raising taxes, Mayor Callahan tapped into the Sewer Hook Up fee payment that Bethworks/Sands paid early. It is $1.7 million. He moved the money to the General Fund to cover payroll, medical expenses and worker's compensation. The fee, which was instituted by Callahan 2 years, is paid by developers. So the City is using money that was paid early and is not needed now, and will be repaid before it is needed.

Dave DiGiacinto's, the Democratic candidate for controller, endorser Republican Alan Blair, the interim Controller, does not think it is legal and says it is a bad idea.

Apparently Blair would rather layoff workers and raise taxes, than have the City borrow from itself and pay itself back with interest after the beginning of the year.

I think there may be a better way to take care of the City's year end cash flow problem but do not think layoffs and raising taxes is the answer and until a better solution comes around borrowing from itself is the best solution.

An interesting discussion on the Controller race follows the Daily Star article in the reader comments.


I hope the City residents do the right thing tomorrow and elect Meg Holland to be City Controller. She is the only candidate who is ethically bound to be impartial because she is the only candidate who is a CPA.

4 comments:

Anonymous said...

Maureen Holland Schaeffer--

The Express Times will also be publishing a correction to the letter to the editor in tomorrow's paper..... unfortunately it might have already changed voters' minds even though it wasn't true... I can also be sure that this letter to the editor from Frank Horwath was written by the DiGiacinto team and they probably didn't call city hall to verify the amounts.... all said and done the Total City of Bethlehem budget is $121 million not $58 million.... (the general fund budget is $58 million)

Tom Foolery said...

Looks like the voters in Bethlehem surprised us all with the controller vote..Good for them.

BethlehemDem said...

Tom Foolery, I always assumed you were an old school kinda guy.

It is good for the voters of Bethlehem.

Tom Foolery said...

I was saying it is good for them.
I meant it. It is also a shot at Schweder and his supporters. The mayor zapped him again..