Scranton City Council OKs Revised Recovery Plan

Scranton City Council on Thursday passed the first of three votes needed to adopt a revised Act 47 recovery plan.

Council voted 4-0, with President Bob McGoff and Councilmen Joe Wechsler, Wayne Evans and Bill Gaughan all in favor, to introduce an ordinance to adopt the recovery plan crafted by the city’s Act 47 recovery coordinator, Pennsylvania Economy League.

Councilman Pat Rogan was absent.

Before the meeting, council held a caucus with PEL officials Gerald Cross and Joseph Boyle, city Business Administrator David Bulzoni, and Jim Rose of the state Department of Community and Economic Development, which oversees PEL.

Read more:

http://thetimes-tribune.com/news/scranton-council-oks-revised-recovery-plan-1.1844068

Scranton Councilman Worries New Union Contract Ties Hands In Exiting Act 47

Scranton could have a difficult time shedding its distressed city status because of the pay raises and other perks in the revised police contract, a city councilman warned.

The city has until 2020 to successfully exit the state’s Act 47 financially distressed municipalities program. The new seven-year police contract approved by a split city council Thursday and signed by Mayor Bill Courtright Friday will hinder the city because the contract locks in pay raises and benefits beyond 2020, said Councilman Bill Gaughan.

He questioned whether the contract extension would “tie the city’s hands” by eliminating the possibility of negotiating in 2017 savings in a new police contract, while at the same time locking in raises and benefits a year beyond the Act 47 deadline of 2020.

Mr. Courtright disagreed that the contract extension will make it more difficult for the city to successfully exit Act 47.

Read more: http://thetimes-tribune.com/news/city-councilman-worries-new-union-contract-ties-hands-in-exiting-act-47-1.1825840

York City Girefighters Laid Off Because Of Budget Cuts Hope To Return

Wednesday was a typical day for York City Firefighter Clifton Frederick IV: He helped install smoke detectors in a house, responded to a medical call and continued to familiarize himself with where equipment is stored at the Vigilant Fire Station.

Then he was laid off.

But he remains hopeful that he will return to the City of York Department of Fire/Rescue Services.

“Eventually, I’ll be back,” the 31-year-old said during the last few hours of his shift on New Year’s Eve.

Read more: http://www.ydr.com/local/ci_27251607/city-firefighters-laid-off-because-budget-cuts-hope

Hazleton Council Tables Budget Vote

Hazleton City Council is no closer to finalizing a 2015 budget.

Council voted 4-1 on Thursday to table the spending plan on second reading after voting on a number of amendments that put revenue projections some $619,000 below estimated expenditures.

Council will take another crack at amending the estimated $9.3 million spending plan on Wednesday.

The vote to shelve the budget followed a heated disagreement between Mayor Joseph Yannuzzi and council President Jack Mundie over a stormwater fee that was originally levied by a previous council majority for 2013 only — but is included in next year’s spending plan.

The debate ended with the mayor walking out of the forum during an argument with Mundie.

Read more: http://standardspeaker.com/news/hazleton-council-tables-budget-vote-1.1801694

York City Budget: Parties Scramble To Find Solutions

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

York’s budget woes have set off a scramble to find ways to save positions in the departments that could face the deepest losses — police and fire — and triggered a whirlwind of questions about what would happen to the city if a balanced budget can come only at the cost of cutting public safety personnel.

Mayor Kim Bracey‘s budget, which she introduced Tuesday, would cut 46 positions in the police department and eight fire-fighting jobs, and would cut the city’s work force from 412 employees in 2014 to 315 next year, documents show. Bracey said she was faced with few options and asked community partners, legislators and the county for outside help.

As of Friday, “no one has knocked on the door,” she said.

She has called for union concessions. Bracey said she will meet with fire union President Fred Desantis on Monday, and the city already is in negotiations with the Fraternal Order of Police. Police union president Mike Davis said he is “committed” to reaching an agreement before the end of the year.

Read more: http://www.ydr.com/local/ci_26992449/york-city-budget-parties-scramble-find-solutions

York Budget: Backlash Against Proposal Begins

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

Hours after York Mayor Kim Bracey outlined her proposal to dramatically reduce the city’s work force, including deep cuts to public safety forces, in order to close an anticipated $7 million budget gap, public backlash began.

“I’m ashamed for the city,” said James Waughtel during public comment at a City Council meeting Tuesday night, calling the potential loss of police and fire personnel “extremely devastating.”

Read more from Tuesday night’s City Council meeting.

Members of the fire union also lined the council chambers to listen as Bracey presented her plan to council members.

Read more: http://www.ydr.com/politics/ci_26971075/york-budget-backlash-against-proposal-begins

Hazleton Moves To Save Money On Fire, Police Pensions

Downtown Hazleton, PA (Photo credit: Wikipedia)

HAZLETON, PA — The city council approved use of a 75 percent amortization option to calculate its 2015 Minimum Municipal Obligation for the city’s non-uniformed, fire and police pension plans on Tuesday.

Don Williamson, ASCO Financial Services Group president, said although the city status as a distressed city has progressed from Level 3 to Level 2, it is still eligible to contribute to its MMO at a discounted rate for the years 2015 and 2016.

The move will save the city over $1 million dollars per year.

Councilman David Sosar inquired as to whether this would result in an increased financial burden to the city in upcoming years, to which Williamson replied, “I really don’t think so.”

Read more: http://www.timesleader.com/news/local-news/50460903/Hazleton-moves-to-save-money-on-fire-police-pensions

Fiscal Board Approves Philadelphia’s 5-Year Plan

English: This is my own work, Public Domain Photograph, not copyrighted Ed Yakovich http://www.flickr.com/photos/10396190@N04 (Photo credit: Wikipedia)

Philadelphia’s finances are improving and are likely to continue doing so through 2019.

The Pennsylvania Intergovernmental Cooperation Authority (PICA) board made that optimistic determination Monday when it unanimously approved the city’s five-year plan.

The city’s fiscal overseers cautioned, however, that various risks were still associated with the Nutter administration’s long-term budget, including unresolved labor contracts, the School District’s fiscal crisis, and the pension fund.

Despite its concerns, PICA staff found enough good news in the five-year plan and in its most recent revenue reports to endorse that administration’s fiscal road map to 2019. So did the City Controller’s Office. Both the staff and the controller had recommended the opposite last year, for the first time in PICA’s history.

Read more at http://www.philly.com/philly/news/20140722_PICA_likes_Phila__s_5-year_plan.html#qRukpGb4zKGUI7xu.99

Local Tax Hikes Add To Burden Around Luzerne County

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

At least 11 of Luzerne County’s 76 municipalities are increasing real estate taxes this year, according to statistics compiled by the county treasurer’s office.

These increases are on top of an 8-percent tax hike for all county property owners, which amounts to $42 more on a $100,000 property.

White Haven has the highest percentage increase — 31.6.

The owner of a $100,000 property in the borough will pay $60 more, with a tax bill increasing from $190 last year to $250 in 2014.

Read more: http://timesleader.com/news/local-news/1138044/Local-tax-hikes-add-to-burden-around-county

Facing 4.3% Tax Hike, Pottstown Working To Close $330K Budget Deficit

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

POTTSTOWN, PA — The public got its first look at the proposed $38.3 million borough budget for 2014 on Wednesday night and saw a projected deficit of more than $330,000 — the rough equivalent of a 4.3 percent property tax increase.

Finance Director Janice Lee made the budget presentation, but did not identify how the administration will propose to close the deficit, which her presentation spreadsheet pegged more specifically at $332,308.

Other than a property tax increase, options for closing that budget gap could include additional revenue from other sources or decreased expenses.

Asked after the meeting how much of a tax hike would be needed to close that gap, Lee declined to speculate and noted that the administration has not yet made a recommendation to borough council, whose members listened to the budget presentation Wednesday night but asked no questions.

Read more: http://www.pottsmerc.com/general-news/20131107/facing-43-tax-hike-pottstown-working-to-close-330k-budget-deficit

Stripped-Down Harley Rebounds From Recession

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

Some motorcycle enthusiasts feared Keith Wandell might be the outsider who drove Harley-Davidson into the ground.  Instead, he may be remembered as the guy who kept the motorcycle maker on the road.

Wandell grabbed the handlebars at the motorcycle maker in the heart of the economic crisis in 2009.  Harley lost $55 million that year, as buying a motorcycle stopped being an option for many consumers.

“We had to make, quickly, some big, bold, decisions,” he said in a recent interview.

Wandell was the first CEO from outside Harley, so those decisions were watched closely.  Not all were well-received.  He got the union’s approval to use temporary workers, which enabled Harley to time its production closer to the peak bike-buying season, saving time and money.  He relied less on middle-aged men in the U.S. to buy the bikes.  And he focused the company on doing what many say it does best: making big, powerful, premium-priced Harleys.  But that meant getting rid of some popular secondary brands.

The company made $624 million last year, the best annual profit since 2008.  It also boosted profit by 30 percent in this year’s first quarter, compared to the same period in 2012.  With lower costs and more efficient production, analysts say Harley is in a good position to grow as the global economy improves and in better shape to weather any future downturn.

Read more:  http://www.ydr.com/business/ci_23421255/stripped-down-harley-rebounds-from-recession

Michigan To Appoint Emergency Fiscal Manager For Detroit

English: City seal of Detroit, Michigan. (Photo credit: Wikipedia)

DETROIT — Gov. Rick Snyder of Michigan announced on Friday that the city of Detroit is so snarled in financial woes that the state must appoint an emergency manager to lead it out of disaster.

“There is probably no city that is more financially challenged in the entire United States.  If you look at the quality of services for citizens it’s ranked among the worst.  So we went from the top to the bottom over the last 50 or 60 years,” Mr. Snyder told Detroiters in a town-hall-style meeting that was broadcast live on local television stations across the city.

“It’s time to say we should stop going downhill,” he said.  “There have been many good people that have had many plans, many attempts to turn this around, they haven’t worked.  The way I view it, today is a day to call all hands on deck.”

The state-appointed manager, who could be selected later this month, would ultimately wield powers aimed at swiftly turning around the municipal government’s dire circumstances — powers to cut city spending, change contracts with labor unions, merge or eliminate city departments, urge the sale of city assets and even, if all else failed, to recommend bankruptcy proceedings.

Read more:  http://www.nytimes.com/2013/03/02/us/michigan-appoints-emergency-manager-for-detroit.html?hp&_r=0

No Pottstown Tax Hike Due, In Part, To 3-Year-Old Report Says Council President

Location of Pottstown in Montgomery County (Photo credit: Wikipedia)

Editor’s note:  And also due to the tireless efforts of Jason Bobst, Janice Lee and Dan Weand for fixing the broken accounting system.  Imagine what Pottstown could become if Council President Toroney followed the ULI Report recommendations!

POTTSTOWN — Borough Council President Stephen Toroney credited a 2009 consultant report on the borough’s finances for starting Pottstown down the road to what he considers a landmark achievement, that was made official Monday with the adoption of a $38.5 million that does not raise borough taxes for the first time in recent memory.

Councilman Mark Gibson, who, as a paid driver for the Empire Fire Company could be said to benefit financially by voting for the budget, which makes contributions to the fire companies, abstained from the vote.

But the budget, officially balanced at $38,530,729, otherwise received unanimous support from the remainder of council.

Read more:  http://www.pottsmerc.com/article/20121214/NEWS01/121219662/no-pottstown-tax-hike-due-in-part-to-3-year-old-report-says-council-president#full_story

Former Coatesville City Manager Discusses His Termination

Editor’s note:   Sounds so familiar!

COATESVILLE, PA — More than five weeks after he was fired, former City Manager Gary Rawlings discussed recently why he was let go, the situation with the city’s police department and other issues.

City Council never provided the public with a specific reason as to why they terminated Rawlings on June 11. Rawlings said he, too, was never provided with a reason from council for his eventual dismissal.

“I was never given a reason and can only assume,” said Rawlings, who served as manager for 13 months.  “I guess it was that they were unhappy with my style.  But I tried to draw a line between my responsibilities and theirs based on the city charter.  When it came to personnel matters, I told them they had to stay out of it or else they could get in trouble.

”Rawlings said council was “too involved” in the day-to-day management in the city.  He said the council never set goals for him even though it was part of his contract.  He said council should “set goals and then step back” when hiring a city manager.  He said the next manager will also need more time to develop.

“Thirteen months is not enough time to judge someone’s management style,” Rawlings said.

Read more: http://www.dailylocal.com/article/20120723/NEWS01/120729924/former-coatesville-manager-discusses-his-termination&pager=full_story

Scranton’s Leaders Brace For 2012 Staff Cuts

Scranton Mayor Chris Doherty’s reaction to staff cuts contained in city council’s 2012 budget was simple.

“We will do more with less,” Mr. Doherty said Wednesday, reflecting on how his administration plans to grapple with looming personnel reductions after lawmakers on Tuesday night overrode his veto of their $85.3 million 2012 budget.

Despite a wide-ranging list of cuts – including 29 firefighter layoffs proposed by Mr. Doherty himself – the mayor maintained there could be delays in nonessential services, but stressed garbage collection will continue uninterrupted.

“We have to live in the budget they give us,” said Mr. Doherty. “We are going to make it work.

Read more: http://thetimes-tribune.com/scranton-s-leaders-brace-for-2012-staff-cuts-1.1250766#ixzz1i37DSzKa