rick-bunkers-business-in-chapter-11

Rick Bunker’s Business seeks bankruptcy protection

Rick Bunker, the chairman of Jenkintown Borough Council’s finance committee is also an owner and the CEO of a company currently in Chapter 11 bankruptcy. On November 12, 2018, Prescription Advisory Systems & Technology, Inc filed for Chapter 11 bankruptcy protection to head off a lawsuit by a creditor.

According to the filing, the company “based in Jenkintown, PA, estimates its assets to be between $0 – $50,000 and its liabilities to be between $1–$10 million.”

Further the filing shows that Bunker requests self-control of the company’s cash accounts as well as no interference with payroll disbursements. Since Bunker is named as an employee he’ll presumably still receive his salary. Bunker describes himself in the filing as co-founder, starting the company in 2013.

Bunker seeks to convert the debt into equity, or in other words, turn his creditors into owners of a business he himself describes as one that “it has struggled for nearly its entire existence to attract the capital necessary for sustainable expansion and growth of its business. PAST has continually sought seed-money investment into the business, almost all of which was done by investors on an unsecured basis.”

The filing lists a total debt of $2.6 million.

Read more here.

Let's dive into the Jenkintown budget

Jenkintown Borough Budget review: Transparency takes another hit

Five percent increase still leaves Jenkintown with a $400,000 deficit

Last month, Jenkintown Borough Council voted to raise our taxes by five percent, exceeding the rate of inflation by sixty-two percent. Council Vice President and Social Media Bully Rick Bunker dismissed any concern by reminding Jenkintonians that our government spared us any increases for the past three years. In other words, be grateful that our government didn’t take more from us.

According to Bunker and Jenkintown’s nominally qualified Borough Manager George Locke (3% raise in 2019), most residents would see “only” about a $60 hike. We would ask if it’s only that much, then why raise it at all? Is there an institutional budget anywhere that couldn’t be cut 5% without the sky falling? (Answer: No. There is not.)

The only two council members to expressed anything approaching resistance were Chuck Whitney and Michael Golden. Within his brief statement about priorities, Whitney remarked, “I think though we need to understand this is not really our money. We have to be careful to distinguish between what’s nice to have and what we have to have.” Whitney acknowledged the added staffing, but continued, “Next year, I think we have to take a hard look at any additions. We can’t do everything.”

In a longer statement, Michael Golden supported Whitneys comments adding, “I’m a little concerned about how we communicate items with the borough with our constituents. I’m concerned with the communication effort and transparency above everything else. I think it’s difficult for people to see the budget and see why we make decisions and make other decisions. I think we can work harder in being transparent in how and why we act.” (Comments begin at the 35:10 mark.)

Golden also pledged to redouble efforts to communicate with the community.

In a rather specious retort, Council member Christian Soltysiak said, “All of our budget meetings are open to the public.”

If Soltysiak believes so strongly that the borough conducts itself with complete transparency, then why did most of the community, including some council members, find out about the purchase of the Cedar Street property after the fact? 

Simply putting up a notice and holding the meeting may fulfill the barest minimum of legal requirements, but in a town with 12 representatives for 4400 people, a little outreach might go a long way to counter the suspicions that our government does not have our best interests in mind. Any fan of “The Hitchhiker’s Guide to the Galaxy” will see the irony.

Here’s your five percent

So far, the Cedar Street property has cost us $268,000 just in budget outlays. Add to that the lost tax revenue to both the borough and the school district — which is not accounted for in the Borough’s budget — and that number easily crests $300,000 and will only increase. Have the properties around the proposed park increased in value yet? Just asking.

From what we understand, much of the raise comes from police pension obligations. Currently, Jenkintown has eleven police officers, and one full-time police sergeant earns about $100,000 in salary plus benefits and pension — a bill we get stuck with long after that officer leaves our force.

Wouldn’t ten be enough? How about nine? We ask only because we wonder if anyone else did. For a low-crime town such as ours, do we need so many cops or is this just more homeland security theater? Just curious.

We spend over $26,000 picking up leaves. You get charged directly for trash pickup, but your neighbor pays for your yard maintenance. Does that make sense? Is it fair? Only wondering.

The library will receive $240,000 of your money. Maybe you believe that’s money well spent, but we have a lot of wealthy people in town saving hundreds of thousands of dollars (if not millions) by sending their kids to public school rather than a private school. Their stock portfolios probably look better than ever and they’re getting a big tax cut this year. Perhaps if they believe we need a library, they could contribute more. Did you go to the library recently? If the town didn’t subsidize it, would you donate to it? If not, why not? Just asking.

Since 2015, the Hiway Theater has received $39,000 in subsidy from our tax dollars, not including the money they don’t contribute in property taxes as a non-profit. Have you been to the theater recently? If not, why not? The $6,000 the Borough will send to the theater in 2019 is the equivalent of about 120 memberships. Is there a reason why the theater couldn’t find 120 members in and around Jenkintown to get this off our budget? Kind of wondering.

These numbers admittedly make up a relatively small amount within an $8.6 million budget (with a $400,000 deficit), but five percent of that is $430,000 — or roughly the total of what we’ve outlined in possible cuts. These are only the items that stand out to us. You can bet there’s more. There always is.

Eliminate these amounts and arguably much more, and we could easily go another year without a tax increase, and we would bet our house that the sky won’t fall, houses won’t be left to burn, and your toilet will continue to flush.

Jenkintown toilet

Jenkintown Public Works committee plunges into sewer issue

Jenkintown Borough rarely sends out emails about its committee meetings. This month’s public works committee meeting was the exception, because of a particular challenge facing our town — where to send what we flush down our toilets.

Currently, Jenkintown sends all of its sewage through Cheltenham which then sends most of its sewage to Philadlephia. According to the engineers, Cheltenham has not kept up with maintenance, and now races to upgrade their system.

Since Jenkintown’s sewage accounts for just over 11% of their total flow, we’re on the hook for a little more than that percentage of the remediation costs. So far, this puts Jenkintown on the hook for $1.2 million.

Besides the cost, this impacts Jenkintown’s hopes for further redevelopment. Sewer capacity is measured in EDUs, or “equivalent dwelling units”. In Pennsylvania this amounts to about 400 gallons per day per household, and the Department of Environmental Protection allocates the number of EDUs depending on the capacity of a municipality’s (or company’s) treatment system.

Because Cheltenham receives and treats all of Jenkintown’s sewage, Cheltenham has veto power over any development proposal in Jenkintown if it exceeds our allocated number fo DPUs.

Penoni Asssociates brought a fact-finding presentation to the committee, outlining several options with projected costs ranging from $39,000 to $10.4 million. Penoni engineers and most of the council members present seemed to agree that doing nothing was not an option. No one is happy with the Cheltenham’s performance.

Much of the presentation focused on sending our sewage to Abington. This may or may not involve the construction and maintenance of expensive pumping stations.

Clouding the picture further is Aqua’s impending purchase of Cheltenham’s water system, including its sewers. A representative from the company on hand last night expects the company and the town to complete the deal before the end of this year.

No matter which option it chooses, Jenkintown is faced with a major and costly (for Jenkintown) public works project. Couple this with the exit of Glanzmann and their contribution to our tax roles, the ongoing struggles of our commercial district, and Council’s insistence on burdening this town with a park that no one wants, and taxpayers can expect to see more of its tax dollars flushed down the drain.

jenkintown's dubious achievements

A Jenkintown Christmas letter

Wondering what’s going on in Jenkintown? Glad you asked.

Thanks to six seasons of “The Goldbergs”, Bradley Cooper, and a glowing piece on the National Geographic website, Jenkintown often finds itself in the national spotlight. On paper, it sure looks like the type of town fit for a George Bailey and his savings and loan. Except that the deeper you dig, the more it looks like Pottersville.

Let’s take a look at Jenkintown’s dubious achievements of 2018:

Four of our major officials are being sued by a resident for civil rights violations for a bogus zoning violation because she had the audacity to run for mayor in defiance of the local Democratic political machine.

And what led us to this lawsuit? The Borough’s bogus zoning citation getting smacked down by the ZHB by a unanimous vote after nearly ten hours of testimony that starkly revealed not only George Locke’s incompetence, but Council leadership’s intolerance for dissent as well. Last we checked, the borough has spent more than $20,000 in defending its citation and prosecuting this resident. That number should increase almost exponentially by the end of next year.

Our Borough taxes are going up 5% this year. Despite this, Jenkintown Borough refuses to sell the property it bought two years ago for a quarter million dollars to build a park no one asked for and that will cost nearly a million dollars to complete.

School district taxes went up almost 4% to help pay off a debt load to buy things the district never really needed and for pensions enjoyed by teachers and staff no one can accuse of being underpaid. This comes after nearly five years of 3-4% annual hikes, so that Jenkintown now spends about $25,000 per pupil. Recently it announced plans to build a “security vestibule” to protect our kids from a shooter who won’t arrive for the next 10,000 years.

Our commercial district, long in the doldrums since on-street parking was removed to make our main street a four lane highway continues to molder, while surrounding towns have all fully revived since the Great Recession, becoming attractive destinations.

In November, we received the news that one of our major businesses, Glanzmann Subaru will leave town by the end of next year, leaving a huge gap in not only our commercial real estate market, but in our tax rolls as well. We can look forward to another significant tax hike next year as well.

Our borough manager who, thanks to his self-afflicted physical infirmities, can’t be bothered to get out of his Toyota Sequoia to perform actual inspections of properties he’s cited for violations received a 23% pay raise three years ago plus more since then. This year he stated under oath that putting a lawn mower in your pickup probably means you’re running a business.

Administrators of the Jenkintown Community Page on Facebook will turn off commenting on any posts that spread bad news because of the potential to scare away potential residents.

After more than thirty years of hand-wringing over what to do about residents parking on the Walnut Street sidewalks, we simply explained how the ongoing and documented non-enforcement of its own code exposed us to an ADA-related lawsuit. In a meeting, George Locke expressed his skepticism.

And prominent citizens who can afford to are getting out, usually right after their last kid graduates from school.

Bedford Falls or Pottersville? You decide.

Escape from Jenkintown

One now-former resident tells his story and why he waited to get out before telling it.

The hype that surrounds Jenkintown often describes it as a “A Big-Hearted, All-American Town“, and if you remove the politics or the insidious machinations of our public officials, and maybe it is.

We settled here in 2002 and in 2015 made the mistake of looking under the municipal rocks. It wasn’t pretty.

This reporter has heard from several hostile quarters, “Why don’t you just move?” or “If you don’t like it, leave,” or most famously, “Jenkintown isn’t for everyone,” as if other towns don’t have their fair share of Rick Bunkers, i.e. apathetic fools tone deaf to the needs of their constituents and unfit for public office.

Lucky is the person who has the resources to do exactly that. We receive emails, calls, and discrete taps on the shoulder on almost a monthly basis from people admitting to a fearful reluctance to speak out against our government. Indeed, we heard from Jim Smith much earlier this year who asked me not to convey his opinion about Jenkintown’s ongoing decline for fear of retaliation by George Locke.

Now safely ensconced in nearby Rydal, Jim posted the following on the Jenkintown Community Page:

We moved. Seriously. After 48 of 51 years in Jtown; my wife, kids, and I graduating from JHS; and our holding out hope that things would get better, we finally threw in the towel. Over the last few years especially, it appeared that the town was going in the wrong direction – increasing storefront vacancies; a school district running a deficit despite increasing taxes; spiteful Borough management; the ‘curb fiasco’; failure to see the ‘big picture’ and take actions beneficial for the future; and more, we finally decided that our dream of living happily ever after in the borough was just that – a dream.

We stayed in the zip code (Rydal) and will continue to support the vendors in the borough as much as possible (filled with wonderful business owners who deserve our support), and we really hope our fears of continuing deterioration of the town don’t come to fruition, especially because what makes the town so special is the residents. Jenkintown is a very unique place… but as evidenced by how things are being run, it appears there is a major disconnect between what the residents want and deserve and those making the decisions.

So instead of voting with our mouths, we voted with our wallets. Instead of continually being angry over things like the Downs situation (just a microcosm of bigger issues), we can watch what happens without a ‘dog in the fight’, so to speak. We hope for the sake of all the great people in Jenkintown, present and future, that things change for the better – perhaps the elections next year will be a step in that direction. Kudos to all of you who are putting in the time and effort with the hope of making a difference – our hearts and hopes will be with you!

Having visited hundreds of similar small towns across this country and reporting upon those in varying degrees of decline or revival, we’ve come to the inexorable conclusion that the blame for decline — like ours — almost universally falls at the doorstep of borough/township/city hall.