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

Pottstown Mayoral Candidate, Ross Belovich – A Breath Of Fresh Air On The Political Landscape

It’s that time of the year when all good political candidates need to start their campaign for Mayor of Pottstown.  A relative newcomer to Pottstown, Ross Belovich has thrown his hat into the proverbial ring.

Ross is a 4^th Ward resident and has lived in Pottstown for about two years.  He has watched and studied the machinations of Pottstown borough government and decided he could make a positive difference.

I sat down with Ross Sunday afternoon to talk about why he is running and what he could bring to the table as mayor.  We talked for about an hour and a half and I believe I have a good sense of where Ross is coming from.  I had read some of his comments on Facebook and was intrigued enough by them to want to speak with him face to face.

Ross’ two passions are classic cars and computers.  He told me he has always been political and an active voter.  He feels it is important to vote!  Ross is running on the Republican ticket for mayor.

Ross sees many positive things going on in Pottstown but he has also observed Pottstown is missing unity.  There is no common vision or goal to move Pottstown forward.  Factions are pulling in different directions instead of working together.

Ross sees the position of mayor as being an ambassador for Pottstown.  The mayor should be promoting the borough to anyone who will listen.  Ross thinks marketing is crucial and needs to be done continuously.

We talked about crime, blight and some of the “hot button” issues facing Pottstown.  Ross is a big proponent of technology.  He feels Pottstown should be using security cameras to help the police department.  Cameras are a crime deterrent as well as a valuable tool for solving crimes (by using the footage to catch people in the act or by linking them to a specific time and place).  There are many grants out there to pay for cameras.  He said if downtown businesses also used cameras they could be networked with any existing borough cameras to provide a wider coverage area.  (Cameras are used successfully in Reading and Lancaster)

We talked about the problem of people loitering on High Street and bothering customers who are downtown to shop, eat or attend an event at the Steel River Playhouse.  There needs to be more of a police presence downtown.  Having a few beat cops walking the street would give patrons a sense of security and discourage loitering and panhandling.

Ross has observed there is a perception problem with Pottstown.  Many people think Pottstown is unsafe and will not venture into town.  Ross understands this perception, while very real to some people, is inaccurate and he would like to work on changing it.  In order to do this Pottstown needs to fill up the empty storefronts downtown and make the downtown more inviting to consumers.  Also if blight is eradicated, property values will go up.  Higher property values will provide more revenue for the borough and school district.

Ross supports the growing arts community in Pottstown and feels trying to lure high-tech companies into the borough would be another revitalization tool.  Pottstown is built out and needs to reinvent what it has.  No big factories will be coming to Pottstown and employing thousands any time soon.  It’s time to look at other alternatives for putting Pottstown back to work.  More jobs, equals more revenue for the borough and school district.  Ross is also a proponent of returning passenger rail service to Pottstown.

Ross likes the Core Values recently adopted by the borough but would like to see accountability tied to those values.  There should be serious consequences if those values are not being espoused by borough employees and leadership.

Lastly, Ross would like to promote better communication between the borough and the residents of Pottstown.  He is looking forward to seeing the new Pottstown Borough website when it is finished and hopes it is more “user friendly”.

On a whimsical note, Ross feels having fun and giving residents something to smile about is very important.  He thinks it would be fun to bring International Talk Like A Pirate Day to Pottstown as a borough holiday – (http://www.talklikeapirate.com/piratehome.html).  Argh matey!

To learn more about Ross or ask him any questions that are on your mind, you can contact Ross at http://www.facebook.com/MayorofPottstown

Pottstown Borough Manager’s Salary Comparison With Other Pennsylvania Cities

Please look long and hard at the list below and ask yourself WTF is going on with the Pottstown Borough Manager’s salary.  Why are Pottstown taxpayers on the hook for this gigantic salary!  The mayors of the cities listed below are the executives running these communities, not baby kisser like Pottstown’s illustrious Missy Mayor.  Their jobs are comparable to a borough manager only they are running MUCH larger communities with MUCH larger staffs making MUCH less money????????????????  These are also elected officials and more accountable for their actions as opposed to someone hired by their BFF’s and placed in power.

SavePottstown! has also been addressing this ridiculous imbalance and the head-scratching choice of the new Borough Manager – see  http://savepottstown.com/lang/es/2013/02/overpaid/

Here’s the promised comparison list:

- Philadelphia, $174,438 (population 1,526,006)

- Pottstown, $120,000 (population 22,377)

- Pittsburgh, $96,511 (population 305,704)

- Allentown, $95,000 (population 118,032)

- Bethlehem, $90,500 (population 74,982)

- Harrisburg, $80,000 (population 49,528)

- Easton, $80,000 (population 26,800)

- Wilkes-Barre, $79,911 (population 41,498)

- Erie, $65,000, going to $95,000 in 2014 (population 101,786)

- Scranton, $50,000, under review by City Council for an increase (population 76,089)

With the exception of the data on Pottstown and Pittsburgh, the salary figures came from the Scranton Times-Tribune.   Populations are 2010 United States Census results.  The Pittsburgh mayor’s salary is taken from an article in the Pittsburgh Post Gazette.

Ed Koch, Mayor Who Became A Symbol Of New York City, Dies At 88

New York City Mayor Edward I. Koch during a meeting with US president Jimmy Carter in 1978 (Photo credit: Wikipedia)

NEW YORK — Former Mayor Ed Koch, the combative, acid-tongued politician who rescued the city from near-financial ruin during a three-term City Hall run in which he embodied New York chutzpah for the rest of the world, died Friday.  He was 88.

Mr. Koch died at 2 a.m. at NewYork-Presbyterian Columbia hospital, spokesman George Arzt said.  The funeral will be Monday at Temple Emanu-El in Manhattan.

Mr. Koch was admitted to the hospital on Monday with shortness of breath, and was moved to intensive care on Thursday for closer monitoring of the fluid in his lungs and legs.  He had been released two days earlier after being treated for water in his lungs and legs.  He had initially been admitted on Jan. 19.

After leaving City Hall in January 1990, Mr. Koch battled assorted health problems and heart disease.

Read more: http://www.post-gazette.com/stories/news/us/ed-koch-mayor-who-became-a-symbol-of-new-york-city-dies-at-88-672972/#ixzz2Jfp1cqxz

Scranton Mayor Proposes Raising The Next Mayor’s Salary To $80,000

Editor’s note:  And the Borough Manager of Pottstown (population 22,377) rakes in $120,000.00 a year.  It would seem a raise is in order!  Make sure you read the rest of the article as they list mayor’s salaries for a number of cities in Pennsylvania.  NONE are any where near what Pottstown pays its Borough Manager.  Somebody’s getting WAY overpaid to run a small town.

Scranton Mayor Chris Doherty has proposed to city council that the next mayor who takes office in 2014 should earn a salary of $80,000, which would be $30,000 more than the $50,000 mayoral salary that has been in place over the past 22 years, he said.

Two council members said they agree that the pay of Scranton’s mayor should be increased because it is very low when compared to comparable midsize cities in the state, but they do not support a 60 percent pay hike of $30,000.

Council is expected today to consider introducing an ordinance to raise the mayor’s pay starting in 2014, Mr. Doherty said.

A new salary of $80,000 being proposed by Mr. Doherty, who earns $50,000 a year, would not be applicable to him, as he is not seeking re-election this year and his term ends in December.

Read more:  http://thetimes-tribune.com/news/scranton-mayor-proposes-raising-the-next-mayor-s-salary-to-80-000-1.1437303

Pawlowski To Run For Third Term As Allentown Mayor

English: City of Allentown from east side (Photo credit: Wikipedia)

His supporters say Allentown Mayor Ed Pawlowski is a visionary; a leader who has ushered unprecedented development into the city with the state-supported Neighborhood Improvement Zone.

His detractors say he’s a man in isolation, unwilling to listen to an angry populace unhappy with his plan to lease one of the city’s most valuable assets.

On Monday, Ed Pawlowski will announce a bid for a third term in office.

And so far, he has no opposition.  Political observers on both sides say that’s unlikely to change.

Read more:  http://www.mcall.com/news/local/allentown/mc-allentown-mayor-pawlowski-candidate-announcemen-20130113,0,6204569.story

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

Reading Codes Officer’s Residency Was At Issue

Reading codes manager Ron Natale is violating the city charter because he has not moved into the city within the required year of taking office, according to an investigator for the city Charter Board that enforces such rules.

However, despite the investigator’s official findings, which put the case into the board’s hands for a final ruling, a new investigator closed the probe.

And, the Charter Board’s confidentiality rules prevent anyone from explaining why.

Charter Board rulings have led to the firing of prior codes manager Jatinder Khokar and the transfer of Adam Mukerji, former community development director, to the Reading Redevelopment Authority.

Read more:  http://readingeagle.com/article.aspx?id=442291

After Early Bumps, Reading Mayor And City Council Say They’re InTune

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

The relationship between Mayor Vaughn D. Spencer and City Council got off to a rocky start, he and council members admitted Tuesday at a Berks County League of Women Voters breakfast.

But now they’re ready to move on to implementing Spencer’s agenda of making the city safer and cleaner, encouraging economic development and getting the finances in order, they said.

“The impression that the president of council and the mayor hate each other is not true,” Council President Francis G. Acosta said. “All of us on council would like to see the mayor succeed and attain his goals.”

About 20 league members attended the event in Calvary United Church of Christ, 640 Centre Ave.

Read more:http://readingeagle.com/article.aspx?id=374259

Camden Agrees To Regional Police Force

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All I can say is it’s about time!

Camden Mayor Dana Redd announced today that she was moving forward with a county takeover of the city’s police force following a recent spike in crime that has prompted questions about the city’s ability to police itself.

The announcement followed months of silence on the subject of whether Camden would enter into a policing agreement with Camden County, which has been pushing the creation of a regionalized police force spanning the suburbs and the city since early this year.

Read more: http://www.philly.com/philly/news/breaking/20111209_Camden_agrees_to_regional_police_force.html?ref=twtter.com

Embattled Harrisburg Mayor Linda Thompson Threatening River Gawkers With Arrest

Harrisburg Mayor, Linda Thompson is threatening to arrest and fine gawkers who wander down to Front Street to take pictures and check out the Susquehanna River.  10,000 city residents from Front to Third Street are being evacuated and the mayor wants people to stay away from the river.

There are plenty of pictures online that you can check out here: http://www.pennlive.com/midstate/index.ssf/2011/09/curiosity_causes_people_to_hea.html

Harrisburg Mayor Linda Thompson’s Recovery Plan Gets Cool Reception From City Council

Harrisburg, Pa – It may be a difficult road ahead for Harrisburg’s latest financial recovery plan, as several council members tonight voiced significant concerns over Mayor Linda Thompson’s Act 47 alternative.

 

Councilman Brad Koplinski complained that the mayor did not explore the potential of implementing a 1 percent, county-wide sales tax, nor did her plan include any concessions from bond insurer AGM…

 

To read the rest of the article and other coverage of Harrisburg’s Act 47 status, click here:

http://www.theburgnews.com/

 

 

“Teflon Bonnie” Dodges Bullet – Escapes Pottstown Council’s Ire Over Gallerygate

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Where to begin! 

Bonnie’s Mayor’s Report started off as the usual cheerleading session and turned into making excuses for her bad behavior, which she is not sorry for.  Bonnie said she did what she did because she is “passionate” and she felt the Gallery School Project was a bad idea.  She blithered on about differences and stepping on toes etc… but any apology in all that was missing, from what I could tell.

During the Announcements part of the meeting, which comes right before Adjournment, Councilor Weand raised a motion that we limit the mayor’s speaking at council meetings to the Mayor’s Report, if she was asked a direct question or if she needed to break a tie vote.  The other part of the motion was to forbid Bonnie from speaking negatively in public against Borough Council, like on WPAZ or to the County Commissioners, for example.

Councilor Gibson seconded the motion but only for the sake of debate.  Only Councilor Rhoads sided with Councilor Weand.  Maureen Allen was absent.  Chomnuk, Gibson, Kirkland and Toroney all sided with the mayor.  Councilors Gibson and Toroney expressed their displeasure at Bonnie’s recent behavior but felt it was not proper to limit her “face time” at meetings.  Councilors Kirkland and Chomnuk did not think her speaking time should be limited.

So once again, bad behavior in Pottstown is rewarded.  It’s okay to go outside the chain of command, bad mouth at will and undermine binding votes of council, all in the name of being “passionate”.

Expect more bad behavior, more diatribes and insubordination from our mayor in the future, now that she has been further empowered to do so.

Two Roy’s Rants thumbs up to Councilor Weand for doing the right thing and to Councilor Rhoads for backing him up and voting yes.

At this time, I will refrain from comment about the rest of Council until such time as I can think of a polite way to say what is on my mind.

Pottstown Mayor Storms Out Of Council Meeting After PDIDA Vote

Pottstown Mayor Bonnie Heath stormed out of tonight’s Pottstown Borough Council meeting after agenda item 7 did not pass (followed by her husband who made a derogatory remark about Council’s collective intelligence).  A roll call vote was requested by President Toroney.   The vote went as follows: Chomnuk – No, Gibson – Yes, Kirkland– Yes, Rhoads – No, Weand – No, Toroney – No.   Councilor Allen was absent.

During the Mayor’s lengthy report, Bonnie spent a great deal of time asking Council to vote yes for agenda item 7 which was a resolution authorizing the filing for funds with Department of Community and Economic Development (DCED) in the amount of $60,000 for the Main Street, Exit Grant, New Communities program.  What this means to the average taxpayer is that by voting yes the Borough of Pottstown would have been on the hook for the $60,000 matching funds if the Pottstown Downtown Improvement District Authority (PDIDA) failed to raise the other $60,000.  If PDIDA failed to raise the necessary $30,000 contribution each year, the Borough of Pottstown, by default, would have had to match the DCED grant.

The Finance Committee recommended that Council vote no because there is too much risk to the Borough to move forward, according to Finance Chairman and Fifth Ward Councilor Dan Weand.  The confidence in PDIDA’s ability to match this grant is very questionable.  According to Mayor Heath, PDIDA’s assessments would generate $42,000 a year leaving a positive balance for PDIDA of $12,000 each year.  Mayor Heath said there is no risk to Pottstown to approve this grant match because the DCED felt PDIDA would be able to match the funding based on their assessment figures.

President Toroney said PDIDA should look more toward volunteerism instead of paying a Main Street Manager.  He referenced Pottstown’s Riverfront Park as an excellent example of volunteerism.  President Toroney also said that Council does support PDIDA and downtown Pottstown, however, in this instance the majority of Council feels the financial risk is too great.  Councilor Kirkland said he was confident that PDIDA would be able to raise the needed funds.  Councilor Gibson said he supported PDIDA and voted yes for the resolution but did so “hoping” he made the right decision.

The majority of this money goes to pay the Main Street Manager’s salary.  Frankly, my experience with Mr. Wildrick is that he does not return emails.  Other than purple lights on the trees downtown and the Hometown Holiday events in December, did we get our bang for the buck in a year and a half?????  Evidently there are four members of Council who have the same question.  The other project Mr. Wildrick was working on was a skyline project to outline the downtown buildings like Boat House Row.  While this is a cool idea, it might make more sense to have a full downtown before we worry about ambient lighting.

Councilor Rhoads wondered how many businesses downtown are doing well.  If a number of businesses close that would hamper PDIDA’s ability to generate the sufficient funds to pay the DCED grant match.

President Toroney also stated that PDIDA needs to come up with a vision and a long-range plan.  We agree.

Councilor Gibson made the suggestion that PDIDA expand their territory to include more businesses in Pottstown.  The example he gave was the High Street Redner’s.   Redner’s makes money and as a company they give money to community projects and events in the form of corporate sponsorships.  Councilor Gibson said there are businesses that would love to be allowed to join PDIDA but are outside of their limited territory.

This vote means that unless PDIDA finds private sector funding (which is available) they will not have the funds to pay the Main Street Manager’s salary.

My suggestion to PDIDA is that you contact places like Lancaster and York, who have strong downtown organizations, and see what information you can glean from them.  I am sure they would gladly be of assistance and would be a wealth of information.

My other suggestion is that Mayor Heath should receive a formal reprimand from Council for leaving the meeting before adjournment.  As Councilor Gibson stated, every vote does not go his way but he respects the opinions and decisions of his fellow Councilors and does not get mad about it.  Councilors Rhoads and Weand echoed Councilor Gibson’s sentiments and were thanked by President Toroney.

Mayor Heath is an elected official who has an obligation to attend these meetings.  Because there were only six Councilors in attendance this evening, had there been a tie vote, the mayor casts the tie-breaking vote.  By leaving after agenda item 7, the mayor missed the voting for the remaining six agenda items! 

If you can’t stand the heat, get out of the kitchen!

Lansdale Mayor Blasts Council/Manager Over Reprimand

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The Mayor of Lansdale, Andy Szekely, has published a lengthy letter in today’s Lansdale Reporter outlining what he is claiming to be an improper reprimand given to him by Lansdale Borough Council and Lansdale’s Borough Manager.

The crux of the disagreement is over the Lansdale Performing Arts Center which the mayor feels should be funded privately and the Council is funding with taxpayer money.  The mayor made public some details about coding for the performing arts center that were discussed in Executive Session.  According to the mayor, this discussion violated the Sunshine Law plus there is no code on the borough books authorizing Lansdale Borough Council to reprimand the mayor.

When presented with the written reprimand, the mayor was told there would be “consequences” if he failed to sign the document.  Whoo! 

You can read the mayor’s letter here:

http://thereporteronline.com/articles/2011/04/21/opinion/doc4daf56ae668da460052550.txt?viewmode=fullstory

City Of York Mulling Fire Company Regionalization Option

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The City of York, PA has four fire stations and a staff of 67 firefighters.  However, like all municipalities, York is looking at ways to cut costs.  Kim Bracey, York’s Mayor, said she will not close/merge any fire stations or cut staff if it will cut response time.  However, Mayor Bracey said the Fire Committee is looking into options like regionalization and cooperative agreements with other fire services organizations, including volunteers.

Emergency services costs are a big-ticket budget item and Bracey said city government needs to be responsible stewards of the taxpayer’s money.  If working together as a regional fire department can achieve the same high-quality results, at a lower cost, that option needs to be explored.  It has worked for many police departments.  York County already has regional police departments.  The Fire Committee will present their fire/EMS modernization plan to the public on April 5^th.

The City of York has 43,718 residents (2010 census) and a land area of 5.20 square miles.  Mayor Bracey was the city’s Community Development Director before being elected mayor.

Scranton Mayor Chris Doherty Invited To The White House For St. Patrick’s Day

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Scranton Mayor Chris Doherty received a letter from the White House inviting him and his wife to celebrate St. Patrick’s Day with the President and First Lady.  Mayor Doherty was surprised by the invitation.  V.P. Joe Biden was born in Scranton and Secretary of State Hillary Clinton’s father was born in Scranton, so there is a Scranton connection in Washington, D.C.

In March of 2008, during the presidential primary, then Senator Obama spoke at the Irish Women’s Dinner at the Radisson at Lackawanna Station Hotel in downtown Scranton.  In April of 2008, Senator Obama returned to Scranton for a meal at the Glider Diner.  Mayor Doherty supported Hillary Clinton in the presidential primary and raised money for her campaign

It should be noted that Scranton’s St. Patrick’s Day parade is reported to be the fourth largest in the United States.  150,000 people pack Scranton for the parade and festivities.  The good news is that the parade in Scranton will be on March 12^th so Mayor Doherty will still be in town for the celebration. 

In 2008 Hillary Clinton was Grand Marshall for the parade.  Mayor Doherty would like the President or Vice President to come to Scranton and be Grand Marshall of their parade.

Congratulations to Mayor Doherty for this high honor.

Scranton: Northeast Pennsylvania’s Economic Growth Engine (Part Two)

(Continued from yesterday’s Part I below)

I asked Mayor Doherty if the population decline in Scranton was a concern and was he focused on trying to reverse it.  The mayor said the population is growing and becoming more diverse.  There are now two dozen languages being spoken in the Scranton School District and over 70 ESL teachers.  When the mayor took office ten years ago there was one ESL teacher in the school district.  I recently read that the Scranton/Wilkes-Barre metropolitan area is the least diverse of any metropolitan area in the United States over 500,000 people.  It would seem this may be changing.

We talked about the significance of what having a medical college and possibly a law school would mean for Scranton.  Bringing in and retaining college educated people will help stop the “brain drain” and grow a population with more disposable income.  This in turn fosters economic development and reduces crime.  Medical schools and law schools bring a certain amount of prestige to any city lucky enough to have one.  Perception is a hard thing to change.  These types of accomplishments will tangibly demonstrate that Scranton is not a rust-belt, blue-collar, post-industrial casualty.  Instead, Scranton has pulled itself up by its bootstraps and seeks to reclaim her proud heritage and rightful place as an economic powerhouse in Pennsylvania.

With a new governor in Pennsylvania things will most likely change.  Ed Rendell was a friend to Scranton and poured $140 million into the city for economic development.  Governor Corbett is still an unknown, only just taking office.  Many who received funding from Rendell are worried that money might be harder to come by under Corbett.  The good news from Scranton is private sector funding for economic development has reached a level that will sustain Scranton in the event that money from Harrisburg dries up.

One of Mayor Doherty’s mottos is “invest in yourself”.  Two examples of this are the restoration of the municipal building lobby and fixing the broken “Scranton The Electric City” sign that is perched atop on of the city’s taller buildings (pictured above).  The mayor feels strongly about the message neglect, disrepair, messy, dirty and cluttered can send to residents and visitors.  The first-floor lobby area in the historic Municipal Building was cluttered with soda/snack machines and was in need of a major spruce up.  The mayor did just that.  (While I was waiting outside the mayor’s office, I took a picture of the lobby because it was so impressive – see Part I photos).   The “Scranton The Electric City” sign had been broken for decades.  Now the sign lights up every night and makes a positive statement about the Scranton of the present, while honoring the city’s past accomplishments.

Having frequent events is an important tool Scranton uses to promote itself, attract tourists and prospective residents.  Scranton has a huge list of events like First Night, St. Patrick’s Day Festival (3^rd largest in the U.S. and draws 150,000 people), La Festa Italiana (draws another 150,000 people), Komen for the Cure (10,000 people), Steamtown Marathon (2,500 people), Scranton Jazz Festival and the Pages and Places Book Festival.  These events are helping to make Scranton a “destination”.

My last question to Mayor Doherty was “What has been your greatest challenge?”  His answer was “changing the way people think”.  People need to believe that things are possible instead of falling into the “it can’t be done here”, “it will never work”, “we can’t afford it”, “we never did it that way before” and the litany of excuses to maintain the status quo.  The status quo is why Scranton hit bottom and had 22 empty building in its downtown. 

Mayor Doherty has a vision for Scranton and is undeterred by criticism and negativity.  Nor is he content to rest on his laurels.  He always has future projects on the back burner and showed me some of them while we walked.  The mayor is taking the revitalization of Scranton one project, one building at a time. 

I will share one last thing Mayor Doherty said to me, which is important to always remember.  These things take time.  It took seven years to get to the Connell Building project completed.  Construction took less than one year.  All the planning, committees, red tape etc… took six years.  Rome was not built in a day and neither will Scranton (or any other city) be magically revitalized.  The mayor has accomplished all these things over ten years.  It takes a dedicated team of people to make all this happen.  It also takes someone like Chris Doherty to lead the team with a positive, can-do attitude, a never give up mentality and most of all a healthy dose of patience.

The Electric City has a bright future and is poised to again become one of Pennsylvania’s most vibrant and important cities. 

 

Scranton: Northeast Pennsylvania’s Economic Growth Engine (Part One)

I recently had the pleasure of being given a tour of downtown Scranton by Mayor Chris Doherty.  Here are some thoughts and observations from my experience.

Mayor Doherty is a very down-to-earth person.  I was impressed by his friendliness towards the residents of Scranton and his commitment to the city.  We were joined by developer Charlie Jefferson.  Charlie developed the Connell Building and is working on some other projects in Scranton.  I will be writing a separate article about Charlie and his projects.  These two gentlemen made my trip enjoyable and highly productive!

Mayor Doherty gave me some basic information, before we left the office, about what has gone on in Scranton during the ten years he has been mayor.  When Mayor Doherty took office there were 22 empty buildings in downtown Scranton.  Scranton had hit a low point.  He decided his focus as mayor would be finances, the parks system and the downtown.  Former Governor Ed Rendell gave Scranton $140 million during the eight years he was in office.  It has certainly been put to good use.

One thing which pleasantly surprised me is the walkability of the downtown, for a mid-sized city.  The nice grid pattern of the streets, good signage and cleanliness were huge pluses.  I felt completely safe.  Scranton has a low crime rate for a mid-sized city.  As we walked and talked it became readily apparent that Scranton has turned the corner.

There are plentiful and diverse restaurants in the downtown which include things like Thai, Lebanese and Vegan.  A high-end steak house is also under construction downtown.  It will be along the lines of Morton’s or Ruth Chris.  We walked through the construction area that is being framed-out.  The influx of new center city residents, the Commonwealth Medical College, the University of Scranton, two courthouses, a municipal building, Steamtown Mall and new companies setting up headquarters downtown have swelled the demand for goods and services.  There is substantial foot traffic downtown, a key ingredient to redevelopment.

Mayor Doherty has built three new parking garages and rehabilitated one to make sure adequate parking is available for downtown visitors, shoppers and workers.  Lack of parking had been an issue that kept people from coming downtown.

Several companies have relocated or grown their businesses downtown.  An old Woolworth’s store is now home to Morgan Stanley Smith Barney & Fax Serve, which combined employ 200 people.  A high-end salon opened downtown that has grown to 80 employees.

Downtown Scranton has a Hilton Hotel and a Radisson Hotel.  The Radisson is the former Lackawanna Railroad Station.  Talk about an adaptive reuse success story!  We went inside so the mayor could show me around.  It is fantastic!  Both hotels are large and well-kept.  I asked Mayor Doherty what the occupancy rate averaged and he said “85%”.  Scranton hosts many events, conferences and meetings which help keep the hotels full and visitors coming into Scranton.  The mayor made a good point by saying people visit Scranton, leave impressed and spread the word!

The University of Scranton is located downtown and home to 7,000 students.  The university is growing by leaps and bounds.  Currently there are two enormous construction projects taking place that total more than $100 million.  The university is also considering the establishment of a law school which would be another huge economic boost for Scranton.  The University of Scranton is a key partner, along with the city, in transforming the downtown.

Commonwealth Medical College is building a campus downtown.  This is Pennsylvania’s first medical school to be built in 50 years.  The school is now leasing space and is in their second year of operation.  In September, the student body will move into the school’s new permanent downtown site.  The medical school will be responsible for bringing 800 new jobs and 600 students into downtown Scranton.  Six hundred new apartments/condos will be needed in the next five years as a result.  (If the law school becomes a reality; housing demand will sharply increase above the current projection for 600 units, fueling further economic development downtown.)

During our tour, we walked past the building used as the fictional Dunder Mifflin Paper Company headquarters in NBC’s hit mockumentary, The Office.  Scranton was on the list of possible locations being considered.  When it was discovered the bar across the street from the building was named The Office, Greg Daniels decided it was perfect.  The Office has brought a great deal of free publicity to Scranton and has increased tourism.  There are monthly tours offered (March through December) and conventions, for fans of The Office, that bring many people to Scranton.

There is more to come in Part II on Thursday



Pottstown Is Not The Only Municipality With Fire Department Budget Woes

Image via Wikipedia

Pottstown has struggled with its Fire Department budget for some time.  The debate over merging fire companies to cut overhead has been suggested.  Currently Pottstown has four fire companies with paid drivers and administration.  The majority of the firefighters are volunteers.  The borough gives the four fire department money and pays the health insurance for the drivers.  Each fire company must then raise any additional funds themselves.

Scranton, Wilkes-Barre and Allentown have obviously larger fire departments with more paid staff.  Volunteerism is down.  A huge problem these three cities have experienced is a drastic increase in overtime.  Scranton’s Fire Department racked up just under one million dollars in overtime for 2010 (more than double what was budgeted).  The Scranton Fire Department had a budget of $14.3 million for 2010.

Allentown’s Fire Department overtime budget was blown in 2010 when $1.4 million was spent on overtime.  Wilkes-Barre spent $322, 958 on overtime which was nearly double what was budgeted.

A big culprit is sick time.  Sick time use in Scranton has been rising for the last three years.  When one firefighter calls out sick, another firefighter is called in and paid overtime to cover the shift.  Scranton is changing their schedules, minimum manning requirements per shift and instituting fire company brownouts to save money this year.  Only $83,950 was included for Fire Department overtime in the city’s $74.9 budget for 2011.

The Scranton Fire Department blames being a 168 man department with only 150 firefighters on the payroll.  Overtime was being used to “make up the difference”.  Like Scranton, Allentown also has minimum manning requirement per shift which contributes greatly to their overtime.  Wilkes-Barre Mayor, Tom Leighton said his city experiences a 25-30 percent call off rate in every shift, which burns up overtime.

In Scranton, the average firefighter costs the city $84,000 in salary and benefits every year. This will increase substantially after the arbitration award kicks in.  Mayor Chris Doherty’s salary and benefits come to about $65,000 per year, as a point of reference.  Firefighters get 18 sick days per year, which can be accrued up to 120 days, 240 days or unlimited, depending on their hire date.  Firefighters get paid for unused sick days at the termination of their employment.  They are reimbursed anywhere from 25 percent to 100 percent, depending on their date of hire.

I hope Pottstown Council carefully studies these issues before making the paid drivers employees of the borough.  If this comes to pass, we need to learn from these three cities to avoid a bill we cannot afford.