Jersey Mike

Just got a phone call from a reliable source who told me that Linda Thompson is apparently pulling the six assigned officers out of Harrisburg schools because “There’s no problem in the schools and the only thing the cops are doing is intimidating the children.”

Another misguided, megalomania-showing move by MFN LDT.

The woman isn’t qualified to make a decision like that. Not after six months on the job. And certainly not with the ongoing turmoil at the Harrisburg School District.

Police in schools (especially schools in an urban, inner-city environment) aren’t uncommon in the post-Columbine days. Even before the Colorado massacre, city police regularly patrolled the hallways of some of the more aggressive schools.

Because schoolchildren whose parents don’t care about what they do at or away from school tend to bring things like guns and knives to school – thereby requiring a police presence to deter bad behavior.

If it’s true that Thompson DID order the police out of Harrisburg schools, then this woman just got six times crazier in my book.

Can things get any worse?

You betcha.

If there’s one person who knows more about the state of Harrisburg’s finances, it’s attorney William Cluck. This post was written by him and posted on the Harrisburg Forum of the PennLive website.

Please do your fellow citizens a favor and share this link. It is, by far, the most in-depth explanation of the quagmire we’re in that you’re going to read anywhere.

It is time to go directly to the citizens of the city and region instead of the political officials providing sound bites for the media. My intent is to shed some light, provide some facts, and identify, from my perspective, the issues and players in our financial crisis.

1. The debt is actually around $283 million. There is also a risk the Authority could be liable for an additional $25 million if it loses the CIT litigation. The revenue from the incinerator, after operating expenses, has been unable to pay debt service. So, the city’s taxpayers, as primary guarantor of the debt, must come up with money to pay the debt service to the bondholders. Since the city is essentially broke, the county, as secondary guarantor for about half the debt, must come up with the funds. If the county defaults, then the bond insurer makes the payments to the bond and note holders. And any entity that makes a payment wants to be reimbursed eventually.

2. There are basic solutions to addressing that debt. Come up with $283 million and retire the debt or come up with $50 to $100 million to reduce the debt so it can be restructured and more manageable. Of course, how to do that is the big issue. Sale of the incinerator could bring in anywhere from $75 million to $180 million- if someone will purchase it. Leasing the parking garages apparently could net up to $100 million. There you go, done deal. Sell incinerator for $180 million and use parking lease proceeds of $100 million and we can go back to our lives. Easier said than done. A more realistic scenario is to pay down the debt by $50 million to $100 million and look to the state financing authority to provide leverage in refinancing or restructuring the outstanding amount. Neil Grover and City Controller have put forth their concepts for reducing the debt. The rest of this post will identify the parties and how I view their respective interests. My intent is to provide transparency without revealing the substance of draft documents being negotiated and better inform the taxpayers so they are able to participate in this discussion. Let’s look at the parties and their interests and issues:

3. Harrisburg Authority- does not have a quorum, can not conduct business. Wants to lead, but has little leverage. The authority staff is competent and the incinerator operator has the facility up and running rather smoothly. The issues are financial not operational. The Authority wants to pay contractors (unfairly being held hostage), fix turbine blade (to generate up to $1 million additional revenue in electric sales), repair steam line (possible $4 million in revenue), increase receipts and revenue (get higher paying waste from outside county), decrease operating expenses (find solution for ash disposal). A proposed amended budget that you haven’t seen reveals it may be able to start paying between $7 and $12 million annually in debt service. Current debt load too high- debt service is approx $22 million annually.

4. This year’s dilemna- $35 mil due in December because authority, city and county kicked the can down the road in 2007 by borrowing to pay debt service for 2007 and 2008. if that amount is refinanced, expect an additional $2 million in debt service.

5. This year’s budget for debt service includes amounts to reimburse the county, city, covanta and bond insurer. So far this year, on behalf of the authority, the city has paid $637,500, county has paid $1,126,254 and the insurer has paid $425,193. Payments from the debt service reserve fund this year total $5,074,733. All of those payments must be reimbursed or replenished. And, about $10 million in debt service is left to be paid before end of year (not including the $35 million notes).

6. City has limited resources to back up its guarantee. What should the city do? Are the recommendations from management consultants enough to deal with this financial crisis? Is there the political will and leadership to put the parking garages and other assets into play? Can the residents sustain a tax increase? Taxes did not increase in the city over the years because these financings typically would kick a few million to the city’s general fund so taxes would not go up.

7. County refuses to raise tipping fees to raise additional revenue for authority, won’t cooperate in enforcing flow control costing authority up to $600,000 annually in revenue, insists on additional $4.90/ton being added to tipping fee to go to county’s office of solid waste, requires its own engineer, financial consultant and attorneys to oversee authority (and get reimbursed by authority).

8. Covanta wants to be repaid on the $22 million it has put out to fix the Barlow mess. It has not been paid the last two quarterly installments of $637,000. So, Covanta will not release any more funds to pay contractors who did work (about $2.2 million).

9. AGM the bond insurer. Publicly has stated it will not reduce principal or interest on the debt. will not allow use of the $3.6 million from the Barlow settlement to be used to pay contractors or fix turbine blade until city comes up with a plan.

There are all kinds of legal issues involving the rights and remedies of each of these parties. The county has sued the city and authority for reimbursement of the money they have paid and wants the court to order the city to budget for the debt service and raise taxes or sell/lease assets. Covanta has put forth a list of its terms it wants in a forebearance agreement. AGM has put forth its terms for a forebearance agreement. The forebearance agreement initially was to buy time to enable the city to come up with a plan, but now the document is turning into the outline of a plan, which explains why it is taking so long to finalize. The authority can only sit on the sidelines until it gets a quorum.

So that is a status report on where things are as of now. Will the mayor and city council continue the stalemate over adding at least a third member to the board? Who will provide the necessary leadership to make the unpopular recommendations to do some combination of leasing or selling assets, raising taxes, raising tipping fees, asking the state to assist in restructuring the debt and/or allowing the filing of chapter 9, or even sell the water system or sewage treatment system?

At least you now know what we know. We promise to keep you informed and hopefully hold public forums on these issues.

Today is June 23. It’s about 5:30 in the afternoon and a Wednesday. The “Harrisburg Jazz and Multi-Cultural Festival” Hosted By, er, was-Hosted By-But-Now-It-Ain’t-By-Mayor Linda Thompson begins in ten days and there’s nary a calendar, schedule, email blast, Facebook invite or even a TWEET to be found.

Sure, the city is in rough shape and whether or not this poorly-renamed “festival” was even going to happen was up in the air until only about a month ago, but you’ve got an event that you’ve known about since BEFORE you took office and there’s been nothing but BAD INK about it since the renaming- it’s time to HIT THE STREETS.

To make matters worse, the “headliner” of the “Jazz and Multi-Cultural Festival” has been announced…but it ain’t much worth getting excited about. The Duke Ellington Legacy Band – a band formed by the Jazz legend’s, ahem, grandchildren. (which, I guess is better than last year’s American Music Fest headliner – an Asia tribute band)

Look, I might not be qualified to comment on the finances of the city or the wacky situation involving the Harrisburg Authority and the incestuous nature that the appointments are taking, but I DO know a thing or two about booking a show and promoting events and I can say with full confidence that the 2010 American Music Fest Harrisburg Jazz and Multi Cultural Festival is going to be a major disappointment unless the new parks and rec director pulls a gigantic Raven out of his hat and brings back Jerry Garcia, John Lennon and Jim Morrison from the dead to headline a show on a stage borrowed from Pink Floyd and has Bill Graham come down from the skies to promote it.

TEN DAYS AWAY and NO LINEUP!?

Are there any bands booked for this thing? I titled the post the way I did because Linda Thompson is hosting this thing- so, who better to ask than the HOST, right?

Get with it, guys. And if you can’t figure out this part of the administration, HIRE someone to do it.

Hadn’t been to a City Council meeting in awhile so I thought I’d stop in a couple of weeks ago to catch up on the happenings of our local elected officials. I got there right as the meeting was ending at around 6:30, so after chatting briefly with Councilwoman Susan Brown Wilson and saying hello to a few of the regulars, Roxbury and I went over to Spice for a few happy hour beers.

Clearly, I haven’t been writing much about local politics lately. For a few reasons, but most notably, I simply don’t give a shit anymore.

Time and again, I’ve been disappointed by the (in)action of our local elected officials. Sure, on the campaign trail, they’ll say “yes” more times than a townie in the local seaside bar when the ship of starved sailors docks. But once the pomp and circumstance ends and everyone goes back to their post-election-year lives, it’s a different story.

The same elected officials who made promise after promise on the campaign trail will feign forgetfulness when the points they promised are brought up to them again in, say, March.

Therefore, I just don’t care. I’m here to bring great concerts to this city and that’s what I’ll continue to do. I tried to get these liars and thieves to understand my plight with the Amusement Tax but their lack of action on my single cause- my only action-item, my “cross to bear” has made it crystal clear that they do not work for us. They are supposedly “public servants” but I’ve seen VERY little that would make me believe anything other than the fact that most elected officials have an agenda and a personal objective and if a constituents request or point fits into a pre-existing notion held by said official, then that citizen is in luck. The elected official will “champion” their cause. But if a citizen or group of citizens has a groundbreaking and innovative request of their local leaders and truly wish to see some change happen inside a poorly managed, cumbersome, ego-driven, narcissistic, sociopathic and “Napoleon Complex” riddled elected body, they’re shit out of luck.

ANYWAY…Roxbury and I were having a few beers at Spice and in walks Freshman City Councilman Kelly Summerford. If you recall, I wasn’t (and still am not) a Kelly Summerford fan. And his actions last night further cemented my idea that this guy is not working for the people and is so far out of touch that it’s hardly worth the effort to bring him up to speed.

But I’m here to do that. Kelly- this one’s for you, buddy. You see these words? These words you’re reading right now? On this website? The critical lashing I’m giving to you and the rest of the elected officials that are reading this as well? It’s within a “browser” on your “computer” that you had to “type” in the “address” of to “get here”. (Or, someone “emailed” you a “link” and you “clicked on it”) See it? Got it? THIS, my friend, is a BLOG. And I am a blogger.

You see, I’m spelling this out as if I’m talking to a six year old because time and again, you fucking politicians can’t get it right.

This is a blog. Go ahead. Click around. Use the search box in the upper right to look for your name. Or anyone in an elected position within the City of Harrisburg’s name for that matter.

Kelly, technology has allowed people like me all over the globe to express our opinions and otherwise unreported facts that mainstream media doesn’t report on. We write these things on blogs. I am not anonymous. You saw me in person the other night. I shook your hand. Blammo. You know who I am.

Now, THIS PAGE however, is NOT a blog. That page linked from those words is what is called a “Message Forum”. BIG, BIG difference between a Message Forum and a BLOG. On a message forum, it’s much easier for a “poster” (or someone who writes things and gets them displayed on said Message Forum) to remain anonymous. It’s simple to create a screen name and post different, disparaging comments about  a plethora of topics. Everything from whether or not Linda Thompson is a qualified leader or not to who has the best cheeseburger in town. That’s what  a message board is for.

But if these elected officials don’t even know what a BLOG is, how can we expect them to lead our city into a more fruitful time?

It’s simple, guys- this is the year two thousand and ten. “Teh Internets” has been around for decades now. And blogs have been here for over ten years. Get to know them.

Blogs and bloggers CAN be your friends. Adversaries. Allies. Or, they can be your worst enemies. It’s your choice, really. I told you guys the other night that I think that EACH of you council members SHOULD have a blog. You SHOULD communicate with the public who elected you. That’s what you’re HERE for .

YOU serve US. Not the other way around.

So there you have it Kelly, Linda and whoever else was unclear about exactly what a “blog” is.

“So close”

That should be the city of Harrisburg’s tagline.

“We are so close to Baltimore. We are so close to Philly. We are so close to Pittsburgh, NYC and DC”

And to go even further….we are so close to having a competent administration. We are so close…well, not really, to having our city finances in order…with that, we’re pretty far off.

Swing and a miss.

One thing we’re not very far off on is the viability of Harrisburg being branded as a full-on music city. Not unlike Asheville, NC or Austin, TX-

Sure, we’ve only got 46,000 (and dropping) residents where other cities that have multiple venues boast populations in the six-digit range, by comparison, I think that we’re pretty well satisfied, musically.

Considering our “tertiary” status in the eyes of the major booking agencies, we still do pretty okay with getting good names through town.

This past weekend sounds like it was pretty rockin’ on all accounts. Sunday night had four bands doing a fundraiser for Haiti- Koji, A Public Betrayal, the brand-new In Wilderness and Wade Yankey played to a capacity crowd at the Midtown Scholar Bookstore. The night before, The Greatest Funeral Ever had a solid showing at the HMAC while we had a capacity crowd at The Abbey Bar for Pan.A.Ce.A, …soihadto… and East Hundred from Philly. Out in the reaches, Malone’s on Derry was jumping on Thursday for Adam Ezra and on Friday for Mark Santanna. Add to that all of the Morgan’s Place, Brewhouse Grille, Pep Grill and other downtown spots hosting acoustic music, there was, seriously, something for everyone.

Our venue choices are growing as well. You see, when I started in this business six years ago, all that anyone would talk about is how great things “usedta” be with the Metron and The Vault and concerts on City Island. Today, however, we’ve got the Whitaker Center (despite a current lag in relevant shows on their calendar, I’ve got faith that will change), we’ve got the bar shows in and around the area, we’ve got the questionably-attained-from-the-city HMAC (we’re an arts center, er…music venue, er…pool hall) who, despite the drunken-ways of John Traynor seems to be a place that the kids like going and, of course, The Abbey Bar at Appalachian Brewing Company. (Don’t worry, I won’t leave my self out of the zing-ing. I’ve joked that they should change the name to Appalachian Banquet Company with all of the private parties that get booked in there….and I realize how long it can take to get a beer on the busy nights).

But this isn’t about me.

Harrisburg doesn’t have an identity. York is almost synonymous with Harley Davidson Motorcycles. Lancaster is known for how butter-churningly-Amish they are (but still rock shit at the Chameleon Club) and Reading…well, reading has that murder-rate thing going for them.

So why, with all of the winds of change blowing in this city, have we not begun thinking about branding ourselves?

Population is dropping. Businesses are fleeing for the suburbs. Crack dealers and prostitutes are just as plentiful as construction-hustlers. And we finally got what we wanted with the removal of Reed from office.

So? Where’s the change?

If the Thompson Administration wants to do some good in this “sit-tee” then they better start making a gameplan. Because they clearly didn’t have one going into office. So here’s my suggestion – brand and market Harrisburg as a music-hotbed of the midstate. Blast it out there. Make it “our thing” because, even though I just rattled off a half dozen venues and great bands in the area, I left a lot out. I don’t even know what goes on up on the hill, but I’m sure there’s music up in those parts. So then Linda doesn’t have to feel like she’s turning her back on anyone.

This city is “so close” to being attractive. It’s like, if you saw that pretty girl but she was wearing an ugly sweater…she’d still be good looking if she took that ugly sweater off. So, there you go, Harrisburg. Take off that ugly sweater and make us look good. So good that ALL the boys will want us. They’ll be lining up to bring us flowers and chocolate and get into our…

You get my point.

Harrisburg needs ideas? There’s one. Now you can’t say that I never contributed anything.

Certainly, if this were to occur, something would need to be done about the amusement tax. But with a budget that’s seven figures in the red, what’s a couple hundred thousand more in the name of progress?