Streetlights Proposal A Nonstarter For Reading City Council

A 1947 topographic map of the Reading, Pennsylvania area. (Photo credit: Wikipedia)

City residents have been taxed to the hilt and need help from the state to help fix Reading’s financial woes, council members said at a finance, audit and budget committee meeting Monday.

A passionate discussion about the state of the city developed during the meeting, spurred by talk of a proposal to start charging residents for streetlights.

The administration has floated the idea of charging residents for streetlights that provide light to their properties.  Carole B. Snyder, managing director, earlier presented the proposal to council, saying it would free money to pave streets.

The city currently uses money from the state liquid-fuels fund to help pay for electricity for streetlights.

Read more:  http://readingeagle.com/article.aspx?id=485327

Harrisburg City Council Slams Receiver For Health Officer Exit

Map of Pennsylvania highlighting Dauphin County (Photo credit: Wikipedia)

HARRISBURG – The capital city’s restaurants might not be inspected during the next year because officials won’t spend $10,000.

That is, at least, the contention of some Harrisburg City Council members who blamed receiver William Lynch for losing a highly competent health officer to a better-paying post in a neighboring municipality.

Lynch was appointed to guide Harrisburg through the Act 47 recovery process brought on by the municipality’s $370 million debt and operating deficit.

For months, Lynch, his team, elected officials and city administration have presented a united front as they negotiate lower-cost deals with bondholders and city unions, as well as the sale of the incinerator and lease of public parking garages.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/06/harrisburg_city_council_slams.html#incart_m-rpt-1

Will A New Face In The Mayor’s Office Improve Harrisburg’s Image?

Map of Pennsylvania highlighting Dauphin County (Photo credit: Wikipedia)

Editor’s note: YES!  We would like to see Eric Papenfuse win the November election.  It’s time to restore someone with business acumen to the office of the mayor in Harrisburg.  Eric is an excellent businessman and has been a leader in helping to revitalize Midtown Harrisburg.  Eric’s bookstore, Midtown Scholar, is one of the anchors of the new Midtown.

When major financial news organizations send reporters to a city the size of Harrisburg to cover the election for mayor, it usually means things haven’t been going well.

That was evidenced Tuesday night, as a Reuters news dispatch described Mayor Linda Thompson‘s defeat in the Democratic primary. The story began, “The embattled mayor of Pennsylvania’s financially crippled capital of Harrisburg was ousted on Tuesday…”

Embattled.  Financially crippled.  Harrisburg.

No matter who wins in November, the city’s next mayor must repair Harrisburg’s badly damaged brand, and that could be one of the most formidable aspects of the job.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/05/harrisburg_mayor_thompson_pape.html#incart_m-rpt-2

Harrisburg’s Population Dips Since 2010, Census Bureau Says

Harrisburg has lost a few residents since the beginning of the decade, according to new 2012 population estimates released Thursday from the U.S. Census Bureau.

It’s hardly a mass exodus by any means, but Pennsylvania’s capital city has lost 249 residents since 2010, according to census estimates.  In 2012, Harrisburg’s city population stood at 49,279, a decline of 0.5 percent.

Harrisburg has faced no shortage of challenges.

The city’s financial calamities have drawn national attention.  Harrisburg’s debt has soared to $370 million, due to costly repairs to the city’s incinerator.  The state-appointed receiver, Maj. Gen. William Lynch, is negotiating agreements to try and resolve the city’s financial crisis.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/05/harrisburgs_population_dips_si.html

SEC Case Against Harrisburg Falls Short For Exempting Finance Pros, Some Say

Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

HARRISBURG, PA – No one answered the phone or the door at former Mayor Steve Reed’s home Tuesday nearly 24 hours after the U.S. Securities and Exchange Commission announced a settlement with Pennsylvania’s capital city over fraud charges rooted in activity during his administration.

Some public finance and securities experts saw the settlement – dubbed “toothless” by one – as a warning to municipalities that consequences await them if investors are misled by false or incomplete financial statements from local governments.

Others, however, criticized SEC for failing to hold the city’s hired advisers to account.

“Reed ran the city, (current Mayor Linda) Thompson (is running) the city,” said Mark Schwartz, a former bond lawyer who previously represented Harrisburg City Council on its ultimately rejected bankruptcy petition. “There is a ‘buck stops there’ liability for (city leaders), but the people who do the work are bond lawyers.  These are bonds that never should have been issued.  Reed cannot issue bonds on his own.  Professionals were abysmal in terms of fulfilling their responsibilities to investors and they have gotten off scot-free.  They’ve made millions.”

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/05/fsec_case_against_harrisburg_l.html#incart_m-rpt-1

Harrisburg Mayoral Race: The Bottom Line On Bankruptcy

Harrisburg mayoral candidate Eric Papenfuse has suggested entering bankruptcy would hand control of the city over to an unelected federal judge, but that’s just not true.

Even in a Chapter 11 bankruptcy for businesses, the judge does not take over operation of the company, notes Widener law professor Juliet Moringiello. In a Chapter 9 filing for municipalities, the powers of the judge are even more limited.

Separating fact from fiction is not always easy as bankruptcy becomes a talking point in the Harrisburg mayoral election.

The Patriot-News has talked to a number of bankruptcy experts, including people involved with the Harrisburg Receiver’s negotiations who spoke on condition of anonymity because they are not authorized to speak on the record about the process.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/04/harrisburg_mayoral_race_the_bo.html

COPS Funds Pose Quandary For Reading Police Department

A big new batch of federal grant money is available to police departments that want to hire more officers, but the strings attached to it make it uncertain whether Reading will apply.
Reading Police Chief William M. Heim said the city is eligible to apply for Community Oriented Policing Services (COPS) funds from the U.S. Department of Justice for the first time since 2009, when it received $1 million.

A review of grant program rules posted online indicates the city might be able to apply for partial funding of as many as eight police officer positions. Heim said he will be looking at the rules in the coming week.

Law enforcement funding was a big issue at the Berks-Reading crime summit in January, and the COPS application deadline is May 22.

Read more:  http://readingeagle.com/article.aspx?id=473304

Spencer Unveils Bold Plan For Reading

English: Downtown Reading, Pennsylvania; with Berks County courthouse on left; July 2007 (Photo credit: Wikipedia)

Reading Mayor Vaughn D. Spencer on Thursday outlined an ambitious agenda of more than a dozen initiatives, some already begun, to improve the finances and conditions of the city and its neighborhoods.

Speaking to several dozen people attending the Pennsylvania Economy League’s Issues Forum at the Berkshire Country Club in Bern Township, Spencer recounted his campaign themes and said: “Those are the promises; what people expect is performance.”

He then led the audience through a rapid-fire explanation of where the city is and where it’s planning to go in several key areas.

He said the city has set goals for each area and is requiring any department initiatives to match those goals, with their results to be measured.

Read more:  http://readingeagle.com/article.aspx?id=472999

After Delay, Reading Combines Some Bills

Editor’s note:  We like this idea.  It takes these bills and makes them part of the average person’s normal monthly expenses.  I bet people will be more willing to pay them on a monthly basis rather than quarterly.

City trash and recycling customers will find their bills easier to pay in June.

They won’t be any cheaper, but they’ll be monthly instead of quarterly; they’ll be part of the water and sewer bills; and there will be more ways to pay them.

“The benefit to city customers is that it’s more affordable, and because it’s consistent it will be easier to budget for,” Matthew Bembenick, director of administrative services, said at a Wednesday event announcing the transfer of billing to the Reading Area Water Authority.

But the long-planned deal got delayed, and the authority’s first bills will come out in May, when the city needs to get caught up for January through April.

Read more:  http://readingeagle.com/article.aspx?id=470572

Reading On Course For $35 Million Cumulative Deficit By 2017

A 1947 topographic map of the Reading, Pennsylvania area. (Photo credit: Wikipedia)

Reading is on course to amass a $35 million cumulative deficit by the end of 2017 even if it raises property taxes by 5 percent a year, controller Christian Zale told City Council on Monday.

The budget likely will be $1 million short this year and $1.4 million short in 2014, but Zale said the city’s own fiscal cliff comes in 2015, when it expects a $10.2 million deficit.

That will be repeated in 2016 with a $10.9 million deficit, and again in 2017 with an $11.4 million deficit, he said.

“Now is the time to address the 2015 cliff, (and) also ensure future decisions do not exacerbate these projected deficits,” he said.

Read more:  http://readingeagle.com/article.aspx?id=469810

State Puts Reading School District On ‘Financial Watch’

Map of Berks County, Pennsylvania, United States Public School Districts (Photo credit: Wikipedia)

The state has officially labeled the Reading School District as being in “financial watch status,” a step away from state intervention.

The Department of Education announced Friday that the district has hit several financial-difficulty indicators in the Act 141 early warning system. Passed last year, Act 141 is the state’s law to help financially distressed school districts.

Four districts – Harrisburg, Duquesne, Chester-Upland and York – already have been placed in Act 141 financial recovery and have state-appointed recovery officers overseeing their finances, something Reading officials are hoping to avoid.

Dr. Carlinda Purcell, superintendent, said she sees the designation as a positive step toward dealing with the chronic financial struggles.

Read more: http://readingeagle.com/article.aspx?id=460369

Scranton’s Parking-Garage Rates Won’t Decrease; Chamber Seeks Parking Input

As Scranton leaders are considering increasing hours, days and rates of downtown parking meters, some business owners want to see the city’s parking-garage rates reduced.

However, the court-appointed receiver in charge of the garages and their rates, Mike Washo, said he has no plans to lower garage rates, because a reduction would drain revenue from the authority and further burden city taxpayers to fund any shortfall that may arise from reduced rates.

“We don’t believe that any reduction in parking garage rates at this time will generate additional customers to justify the reduction in rates,” Mr. Washo said. “At the end of the day, we’ll end up with less revenue.”

In recent weeks, a plan by Scranton’s mayor and city council to hire a private firm, Standard Parking, to manage the city’s on-street parking meters has raised numerous questions and concerns among downtown businesses, residents and council members.  Citing Standard Parking’s estimates, council members think the city can net an additional $1.8 million a year by switching parking-meter management from the inactive Scranton Parking Authority to Standard Parking.  Under this plan, which was tabled Feb. 7 by council, meter hours would extend from 8 a.m. to 6 p.m. Monday through Friday to 8 a.m. to 8 p.m. Monday through Saturday.  Ten-hour meters also would increase from $1 an hour to $1.50 an hour.

Read more:  http://thetimes-tribune.com/news/scranton-s-parking-garage-rates-won-t-decrease-chamber-seeks-parking-input-1.1444474

Reading Has Tossed 98 From Health Plan

In a move to save more than $1.3 million, the city so far this year has thrown 98 people off its self-funded health insurance policy, and plans to remove another 77 if arbitrators allow.

Carole B. Snyder, city managing director, said the total of 175 people includes 89 dependents of current city employees, nine nonpolice retirees, and 77 police retirees and/or their spouses, all of whom the city says are not eligible for city-paid insurance.

The Fraternal Order of Police has objected, and the city has agreed to wait on the police retiree purge until an arbitration panel rules. A hearing is slated for March.

Read more:  http://readingeagle.com/article.aspx?id=450169

Reading Mayor Outlines Progress Made During 1st Year In Office

A 1947 topographic map of the Reading, Pennsylvania area. (Photo credit: Wikipedia)

Mayor Vaughn D. Spencer not only used his annual “State of the City” speech Thursday to outline the progress he made his first year in office in 2012, but also to criticize City Council for what he called its obstructionism.

Spencer said he had a bold vision, and promised to hit the ground running on the first day to implement it.

“Then, something went wrong,” he said.

Spencer did not say what went wrong, but said the early disputes were resolved.

Read more:  http://readingeagle.com/article.aspx?id=448697

Courtright Announces Candidacy For Scranton Mayor

The hundreds of supporters entering the front door at the Keyser Valley Community Center on Sunday to see Democrat Bill Courtright formally announce his campaign for mayor of Scranton received smiles and handshakes from the candidate himself.

Bruce Springsteen’s “Glory Days” played in the background as Mr. Courtright focused on themes of “returning the luster” and reaching out to the people of his hometown – a place of staggering municipal debt and significant skepticism about city leadership.

The city’s current tax collector and a former city councilman, Mr. Courtright, 55, of 126 Ridgeview Drive, said he will bring commitment, competence and character to City Hall.

Without going into a lot of detail, he also offered insights into his immediate priorities if elected mayor, calling for an in-depth analysis of the city’s finances and plans to create a panel of community leaders to help solve the city’s problems.

Read more:  http://thetimes-tribune.com/news/courtright-announces-candidacy-for-scranton-mayor-1.1435709

Pennsylvania Third-Class Cities’ Problems, Solutions May Be Addressed

Map of Pennsylvania, showing major cities and roads (Photo credit: Wikipedia)

All 53 of Pennsylvania’s third-class cities share common bonds, and one state senator believes legislators who represent those cities should band together to help address their common challenges.

“Sprawl, changing demographics, public safety concerns and archaic tax structure have drained the vitality of our once-vibrant downtowns,” state Sen. John N. Wozniak, D-Johnstown, wrote in a letter to his colleagues.  “Since the causes are not unique, we can’t stand by and ask local government officials to stem a tide that is overwhelming their capacity and authority to innovate.”

Wozniak noted in the letter to colleagues from both parties in the Senate and House that while the state’s historic downtowns are unique, the fiscal problems they face are not.  With that in mind, Wozniak is proposing the creation of a bipartisan “Third-Class City Caucus.”

“We can no longer afford to consider the plight of our cities as a concern that is separate from the overall welfare of our Commonwealth,” he said.

Read more:  http://www.timesleader.com/stories/Third-class-cities-problems-solutions-may-be-addressed,256451

Reading Weighs Accepting Grant For More Firefighters

A 1947 topographic map of the Reading, Pennsylvania area. (Photo credit: Wikipedia)

Editor’s note:  We can’t predict the future. Take the money, hire the people and hope for the best!

Spending a $4 million federal grant to the city is not as easy as it seems.

The problem is not what the grant would do – hire 30 new and badly needed firefighters for the next two years, adding more personnel to each truck – but what happens to those firefighters when the grant expires.

Fire Chief David Hollinger and City Council labored over the issues Monday night.

On the positive side, the grant does not require the city to keep the grant-paid firefighters after the grant runs out in March 2015.

Read more:  http://readingeagle.com/article.aspx?id=443754

Chris Kelly: How Can Scranton Find A Talented Mayor For $50G?

Editor’s note:  And sometimes people are grossly overpaid and get lousy results, but we won’t name any names.  And sometimes you do a national search for qualified candidates (that was funded by tax dollars), offer a huge salary to attract the cream of the crop and then STILL give the job to your best pal with almost no hands-on experience.

HELP WANTED: CEO for financially distressed 146-year-old limited partnership drowning in long-term debt and enough past-due bills to choke a goat.  Successful applicant will be responsible for managing the needs, wants, safety and endless complaints of 74,000 customers while juggling chronic deficits, anemic revenues, suffocating union contracts and crippling legacy costs using a business model that hasn’t evolved since the advent of indoor plumbing.  ANNUAL SALARY: $50,000.  Seriously.  That is not a typo.

Mayor Chris Doherty’s recent announcement that he will not seek a fourth term as the CEO of Scranton was as anticlimactic as the average January sunset – bleak blue beams bleeding into blackness.  Anyone with a calendar saw it coming.

Eleven years into Mr. Doherty’s reign, the Electric City remains powered more by wishful thinking than objective reality.  More than 20 years after it blundered into the roach motel that is the state’s Act 47 Distressed Cities Recovery program, Scranton is still stuck.  Mr. Doherty promised escape from distressed status by the end of his first term.  He failed, but he had a lot of help.

Read more:   http://thetimes-tribune.com/opinion/editorials-columns/christopher-j-kelly/chris-kelly-how-can-scranton-find-a-talented-mayor-for-50g-1.1428801

Judges Reject Scranton Commuter Tax

A panel of three judges Wednesday rejected Scranton‘s petition for a 1 percent wage tax on the nearly 23,000 nonresidents who work in the city but live elsewhere.

The city may make up the resulting budget shortfall next year by borrowing more next year than had been anticipated or selling an unspecified city asset, Mayor Chris Doherty said.

In their 50-page ruling, Lackawanna County Judges Terrence Nealon and Robert Mazzoni and visiting Pike County Judge Harold Thomson stated the city failed to prove its case for a 1 percent earned income tax on the 22,655 nonresidents working in the city.

The city failed to pass a required hurdle of having “substantially implemented” a revised recovery plan, by failing to fulfill two revenue generators in that plan.  Those included failing to obtain a commitment from a lender for a lease-back borrowing measure to be undertaken next year; and failing to obtain commitments from nonprofit entities for significantly increased donations, according to the ruling.

Read more:  http://thetimes-tribune.com/news/judges-reject-scranton-commuter-tax-1.1418855

PEL: Scranton Needs More Than 12% Tax Hike

Map of Pennsylvania highlighting Lackawanna County (Photo credit: Wikipedia)

Scranton‘s state-designated recovery coordinator, Pennsylvania Economy League, has told city officials they need to raise property taxes next year higher than the 12 percent that the city budget for 2013 proposes. Exactly how much higher was not stated.

In a letter received Thursday, PEL Executive Director Gerald Cross notes that the city has not dedicated a tax millage toward paying for the city’s second unfunded debt package approved by a court this year, of $9.75 million. In that case, Judge Peter O’Brien, a senior visiting judge from Monroe County, on Oct. 31 ordered that a tax millage be dedicated to paying back this unfunded debt.

It was the same arrangement the city sought and received in January, when a different judge, Senior Monroe County Judge Jerome Cheslock, approved the city’s first unfunded debt, of $9.85 million, and ordered that this amount be paid back with a dedicated tax millage over 10 years.

The first unfunded debt package translated into the 12 percent tax hike in the proposed budget for next year, city officials have said.

Read more:  http://thetimes-tribune.com/news/pel-scranton-needs-more-than-12-tax-hike-1.1413187