The article that appeared in this morning's edition of The Mercury was inaccurate as my previous entry detailed. Due to my email to the reporter and the editor-in-chief, they corrected the online edition of the story. Here it is... I would like to point out that the prepared statement was a statement from council and I was chosen to read it by council. The statement was thanking the police for their willingness to work with council to save money.
POTTSTOWN — The month of December had already seen 13 layoffs of borough employees to close a budget deficit. On Monday, elected officials turned to the police department to further reduce a double-digit tax increase in 2009.Emerging from a 35-minute executive session behind closed doors, council President David Garner announced a new two-year contract with the Police Department. Officers and their representatives agreed to hold wages and salaries at their current levels.In 2010, wages will increase 3.5 percent.What this means for taxpayers is that a proposed 12 percent tax increase has shrunk to 10.44 percent.
Police services are by far the largest expense in Pottstown's $35,114,988 budget, and Council Vice-president Greg Berry said the one-year wage freeze would save about $138,000.After a unanimous vote on the police contract, council split 4-3 on both the budget and tax rates for next year. Councilman Stephen Toroney was in the minority with Berry and Councilman Jody Rhoads.Toroney had opposed eliminating funding for the borough's economic development department during a Dec. 16 vote. On Monday, he said economic development is "one way for us to increase our revenue stream." By eliminating the department and the economic development director's position currently held by Terri Lampe, council saved $134,518 next year.Toroney also lobbied for the annual financial audit to be presented to council, which would allow council members to question the previous year's budget."An auditing firm will give us the truth," he said.Rhoads did not give an explanation for his votes. Berry said the budget process this year was a great improvement over previous budget cycles, adding, "In my opinion we needed to go deeper with cuts. However, it was apparent that further cuts and recoommendations of our budget team would not be supported by the majority of council."Berry, who is also the council finance committee chairman, read from a prepared statement on behalf of council, saying Pottstown faced many difficult decisions just like county and state governments have in a struggling economy.Although the statement offered praise on several occasions for Assistant Manager Jason Bobst and consultant/finance director Timothea Kirchner, it said council was not abreast of the "true extent of the borough's financial situation" until last month.Mayor Sharon Valentine-Thomas echoed that last point, saying, "This will not be a process that simply starts in October."She also read from a prepared statement, calling the 2009 budget a "product of hard work." Pottstown avoided 25 percent funding cuts from the four fire companies. Valentine-Thomas said the cost of public safety "should not be breached."On balance, the budget process arrived at several conclusions, including a "more economical outsourcing option" and greater expectations for managers to meet accounting targets, she said. The financial committee will now give monthly updates, the mayor said.She highlighted Pottstown's top three cost items: $9.6 million from the general fund for police, $1.9 million in employee benefits, and just under $500,000 for codes.Valentine-Thomas, who cast one vote Monday night, said she looks forward to a "greater level of co-opertivity" between the community and local government. Her vote came on the tax of 1.30635 mills for fire house maintenance.Councilman Mark Gibson abstained because he is a paid fire company driver.Gibson expressed disappointment with one or more of his previous votes concerning layoffs. He voted for cutting Lampe's position and against the elimination of 12 positions on Dec. 8. In retrospect, Gibson said he did not do "what's in my heart.""I would have made a different decision and I'm being honest about it today," he said.On the overall budget, Gibson hopes to have a better go of it for the 2010 fiscal cycle."I hope this time next year, we won't have to go through what we went through this year," he stated.The approved property tax rate for 2009 is 8.88872 mills, or about $8.89 for every $1,000 in assessed value.
http://www.pottsmerc.com/articles/2008/12/30/news/srv0000004379458.txt
Tuesday, December 30, 2008
Article Woefully Inaccurate
Here is a letter I sent to Nancy March & Mike Hays regarding the article below title 'Pottstown taxpayers face 10 percent increase.'
Good morning,
I read, with surprise, the article in today’s edition regarding council approving the budget. The article contained several inaccuracies and incorrect information.
This first incorrect piece of information is that the police wage freeze would save about $138,000, not $178,000 as reported. Council did not lay off Terri Lampe, we eliminated funding for the economic development department, there is a big difference. Council also did not layoff any other employees, Council cannot layoff anyone (except for the Borough Manager and Police Chief), again, funding for those positions were eliminated. The sentence that says “Toroney also lobbied for an independent financial audit, which would allow council members to annually question the previous year’s budget” is also very inaccurate. We have an auditing firm (which is required by law) that does conduct an audit every year. What Mr. Toroney was saying is that he feels the audit report should be presented to council, which it has not (at least since I’ve been on Council). On a side note, last year’s audit was used heavily in developing this year’s budget.
The prepared statement I read was a prepared statement by council, which I made sure I mentioned twice. See statement below. The statement was not regarding the budget decision, but instead was to thank the police for their willingness to work with the borough to keep costs down. The comment attributed to me (true extent of the borough’s financial situation) was read from the prepared statement thanking police. My personal comments, that I made last night regarding the budget were: I thought this budget process was a great improvement over previous budget cycles and that I appreciate the fact that it was an open process whether or not people chose to participate. In my opinion we needed to go deeper with cuts. However, it was apparent that further cuts and recommendations of our budget team would not be supported by the majority of council.
Mark Gibson is not a volunteer firefighter, he is a paid driver.
I feel that a correction would be appropriate.
Thank you,
Greg Berry
Pottstown Borough Council Vice President
Good morning,
I read, with surprise, the article in today’s edition regarding council approving the budget. The article contained several inaccuracies and incorrect information.
This first incorrect piece of information is that the police wage freeze would save about $138,000, not $178,000 as reported. Council did not lay off Terri Lampe, we eliminated funding for the economic development department, there is a big difference. Council also did not layoff any other employees, Council cannot layoff anyone (except for the Borough Manager and Police Chief), again, funding for those positions were eliminated. The sentence that says “Toroney also lobbied for an independent financial audit, which would allow council members to annually question the previous year’s budget” is also very inaccurate. We have an auditing firm (which is required by law) that does conduct an audit every year. What Mr. Toroney was saying is that he feels the audit report should be presented to council, which it has not (at least since I’ve been on Council). On a side note, last year’s audit was used heavily in developing this year’s budget.
The prepared statement I read was a prepared statement by council, which I made sure I mentioned twice. See statement below. The statement was not regarding the budget decision, but instead was to thank the police for their willingness to work with the borough to keep costs down. The comment attributed to me (true extent of the borough’s financial situation) was read from the prepared statement thanking police. My personal comments, that I made last night regarding the budget were: I thought this budget process was a great improvement over previous budget cycles and that I appreciate the fact that it was an open process whether or not people chose to participate. In my opinion we needed to go deeper with cuts. However, it was apparent that further cuts and recommendations of our budget team would not be supported by the majority of council.
Mark Gibson is not a volunteer firefighter, he is a paid driver.
I feel that a correction would be appropriate.
Thank you,
Greg Berry
Pottstown Borough Council Vice President
----------------
Council Prepared Statement/Press Release
As everyone knows, we are in difficult financial times. The economic problems
which the Country is facing has impacted large corporations, small businesses and
governments at all levels. In Pottstown, we are no exception.
As a community, we face many challenges moving forward into 2009, and in future
years to come. Many difficult decisions need to be made and we need to work together
cooperatively in order to solve our short-term economic woes and address our long-term problems that we will likely face.
With that background, since June of this year representatives of the Borough and
the Pottstown Police Officers have been attempting to negotiate a Police Contract, as the existing Contract expires December 31, 2008. Unfortunately, it was not until November of this year, however, that the Borough discovered the extent of the Borough’s financial condition. At that point, in the spirit of cooperation, the Police Officers graciously extended an offer to the Borough to allow for a one year Contract extension with no salary increase. Proceeding through proper channels, representatives of the Association and the Borough have since met and negotiated, and are pleased to announce, a two year extension of the existing Contract which will carry the Borough through the end of calendar year 2010.
The two year Contract will freeze existing base compensation for all police positions
for 2009 at the 2008 rates. The 2010 increase in base levels of compensation will provide for a 3.5% increase.
The savings to the Borough’s General Fund in 2009 will exceed $138,000.00, or the
equivalent of .154 mills. The Borough Council and the management would like to thank the Police for their offer and their willingness to work with the Borough during difficult economic times. The savings to the Borough are significant and have assisted Council in accomplishing savings that might not have otherwise been available when attempting to finalize the 2009 Budget.
We thank you for your cooperation and your efforts toward this goal that benefits the
entire community.
which the Country is facing has impacted large corporations, small businesses and
governments at all levels. In Pottstown, we are no exception.
As a community, we face many challenges moving forward into 2009, and in future
years to come. Many difficult decisions need to be made and we need to work together
cooperatively in order to solve our short-term economic woes and address our long-term problems that we will likely face.
With that background, since June of this year representatives of the Borough and
the Pottstown Police Officers have been attempting to negotiate a Police Contract, as the existing Contract expires December 31, 2008. Unfortunately, it was not until November of this year, however, that the Borough discovered the extent of the Borough’s financial condition. At that point, in the spirit of cooperation, the Police Officers graciously extended an offer to the Borough to allow for a one year Contract extension with no salary increase. Proceeding through proper channels, representatives of the Association and the Borough have since met and negotiated, and are pleased to announce, a two year extension of the existing Contract which will carry the Borough through the end of calendar year 2010.
The two year Contract will freeze existing base compensation for all police positions
for 2009 at the 2008 rates. The 2010 increase in base levels of compensation will provide for a 3.5% increase.
The savings to the Borough’s General Fund in 2009 will exceed $138,000.00, or the
equivalent of .154 mills. The Borough Council and the management would like to thank the Police for their offer and their willingness to work with the Borough during difficult economic times. The savings to the Borough are significant and have assisted Council in accomplishing savings that might not have otherwise been available when attempting to finalize the 2009 Budget.
We thank you for your cooperation and your efforts toward this goal that benefits the
entire community.
Pottstown taxpayers face 10 percent increase
(See Comments In Above Blog Entry About This Article)
Tuesday, December 30, 2008 8:01 AM EST
By Michael Hays
POTTSTOWN — The month of December had already seen 13 layoffs at borough council's discretion to close a budget deficit. On Monday, elected officials turned to the police department to further reduce a double-digit tax increase in 2009.Emerging from a 35-minute executive session behind closed doors, council President David Garner announced a new two-year contract with the Police Department. Officers and their representatives agreed to hold wages and salaries at their current levels.In 2010, wages will increase 3.5 percent.What this means for taxpayers is that a proposed 12 percent tax increase has shrunk to 10.44 percent.
Police services are by far the largest expense in Pottstown's $35,114,988 budget, and Councilman Greg Berry said the one-year wage freeze would save about $178,000.After a unanimous vote on the police contract, council split 4-3 on both the budget and tax rates for next year. Councilman Stephen Toroney was in the minority with Greg Berry and Councilman Jody Rhoads.Toroney had opposed laying off Terri Lampe, the borough's economic development director, during a Dec. 16 vote. On Monday, he said economic development is "one way for us to increase our revenue stream." By eliminating the position, council saved $134,518 next year.Toroney also lobbied for an independent financial audit, which would allow council members to annually question the previous year's budget."An auditing firm will give us the truth," he said.Rhoads did not give an explanation for his votes. Berry read from a prepared statement, saying Pottstown faced many difficult decisions just like county and state governments have in a struggling economy.Although Berry offered praise on several occasions for Assistant Manager Jason Bobst and consultant/finance director Timothea Kirchner, he said council was not abreast of the "true extent of the borough's financial situation" until last month.Mayor Sharon Valentine-Thomas echoed that last point, saying, "This will not be a process that simply starts in October."She also read from a prepared statement, calling the 2009 budget a "product of hard work." Pottstown avoided 25 percent funding cuts from the four fire companies. Valentine-Thomas said the cost of public safety "should not be breached."On balance, the budget process arrived at several conclusions, including a "more economical outsourcing option" and greater expectations for managers to meet accounting targets, she said. The financial committee will now give monthly updates, the mayor said.She highlighted Pottstown's top three cost items: $9.6 million from the general fund for police, $1.9 million in employee benefits, and just under $500,000 for codes.Valentine-Thomas, who cast one vote Monday night, said she looks forward to a "greater level of co-opertivity" between the community and local government. Her vote came on the tax of 1.30635 mills for fire house maintenance.Councilman Mark Gibson abstained because he is a volunteer firefighter.Gibson expressed disappointment with one or more of his previous votes concerning layoffs. He voted for cutting Lampe's position and against the elimination of 12 positions on Dec. 8. In retrospect, Gibson said he did not do "what's in my heart.""I would have made a different decision and I'm being honest about it today," he said.On the overall budget, Gibson hopes to have a better go of it for the 2010 fiscal cycle."I hope this time next year, we won't have to go through what we went through this year," he stated.The approved property tax rate for 2009 is 8.88872 mills, or about $8.89 for every $1,000 in assessed value.
http://www.pottsmerc.com/articles/2008/12/30/news/srv0000004379458.txt
Tuesday, December 30, 2008 8:01 AM EST
By Michael Hays
POTTSTOWN — The month of December had already seen 13 layoffs at borough council's discretion to close a budget deficit. On Monday, elected officials turned to the police department to further reduce a double-digit tax increase in 2009.Emerging from a 35-minute executive session behind closed doors, council President David Garner announced a new two-year contract with the Police Department. Officers and their representatives agreed to hold wages and salaries at their current levels.In 2010, wages will increase 3.5 percent.What this means for taxpayers is that a proposed 12 percent tax increase has shrunk to 10.44 percent.
Police services are by far the largest expense in Pottstown's $35,114,988 budget, and Councilman Greg Berry said the one-year wage freeze would save about $178,000.After a unanimous vote on the police contract, council split 4-3 on both the budget and tax rates for next year. Councilman Stephen Toroney was in the minority with Greg Berry and Councilman Jody Rhoads.Toroney had opposed laying off Terri Lampe, the borough's economic development director, during a Dec. 16 vote. On Monday, he said economic development is "one way for us to increase our revenue stream." By eliminating the position, council saved $134,518 next year.Toroney also lobbied for an independent financial audit, which would allow council members to annually question the previous year's budget."An auditing firm will give us the truth," he said.Rhoads did not give an explanation for his votes. Berry read from a prepared statement, saying Pottstown faced many difficult decisions just like county and state governments have in a struggling economy.Although Berry offered praise on several occasions for Assistant Manager Jason Bobst and consultant/finance director Timothea Kirchner, he said council was not abreast of the "true extent of the borough's financial situation" until last month.Mayor Sharon Valentine-Thomas echoed that last point, saying, "This will not be a process that simply starts in October."She also read from a prepared statement, calling the 2009 budget a "product of hard work." Pottstown avoided 25 percent funding cuts from the four fire companies. Valentine-Thomas said the cost of public safety "should not be breached."On balance, the budget process arrived at several conclusions, including a "more economical outsourcing option" and greater expectations for managers to meet accounting targets, she said. The financial committee will now give monthly updates, the mayor said.She highlighted Pottstown's top three cost items: $9.6 million from the general fund for police, $1.9 million in employee benefits, and just under $500,000 for codes.Valentine-Thomas, who cast one vote Monday night, said she looks forward to a "greater level of co-opertivity" between the community and local government. Her vote came on the tax of 1.30635 mills for fire house maintenance.Councilman Mark Gibson abstained because he is a volunteer firefighter.Gibson expressed disappointment with one or more of his previous votes concerning layoffs. He voted for cutting Lampe's position and against the elimination of 12 positions on Dec. 8. In retrospect, Gibson said he did not do "what's in my heart.""I would have made a different decision and I'm being honest about it today," he said.On the overall budget, Gibson hopes to have a better go of it for the 2010 fiscal cycle."I hope this time next year, we won't have to go through what we went through this year," he stated.The approved property tax rate for 2009 is 8.88872 mills, or about $8.89 for every $1,000 in assessed value.
http://www.pottsmerc.com/articles/2008/12/30/news/srv0000004379458.txt
Wednesday, December 17, 2008
Pottstown faces 12 percent tax hike
Wednesday, December 17, 2008 9:57 AM EST
POTTSTOWN — If no further changes are made to the budget at the Dec. 29 close-out meeting, taxpayers will face a jump in the property tax rate of roughly 12 percent in 2009.Tuesday night, borough council backed off a proposal to cut 25 percent of the funding provided to the borough's four fire companies, but went ahead and cut the economic development director position. That brought the tax hike down from 14.38 percent, which was where it stood when the council last left the budget table on Dec. 8.The elimination of the economic development position, decided by a 5-2 vote, brought the increase down to about 12.2 percent, said Assistant Borough Manager Jason Bobst.Councilmen Jody Rhoads and Stephen Toroney voted against eliminating the position and Toroney argued vehemently against the move, which will save the borough $134,518 in 2009.
The elimination of the post, currently held by Terri Lampe, comes on the heels of council's Dec. 8 decision to eliminate another 12 positions and to take $177,000 from a payment from Waste Management, which was originally intended for the trash fund, to help fill the budget hole in the general fund.It was not a decision that came easily, or without objection. Former school board member Robert Morgan, who sits on the borough's economic advisory council, urged the council to keep the position, saying it takes time for economic development efforts to take hold."We've got a good three-year head start, now is not the time to stop," said Morgan. "We have to continue that or Pottstown is just going to die."He said the only thing that lowers taxes is an improved tax base and the only thing that will improve the tax base is economic development.Former Councilman Harry Price, who also sits on the economic advisory body, said while he may not have a great deal of expertise in economic development, "I have a great deal of experience on what makes Pottstown tick." He said without continued efforts to boost the tax base, Pottstown would have to continue to cut personnel in order to balance its budget."The fat days of the 50s, and 40s and 60s are gone, we need to have someone on this 24/7," said Price. "This is an investment and you have to take some risk."Both Borough Council President David Garner and Vice President Greg Berry argued that the elimination of the position does not mean the elimination of economic development.Garner said, "I don't think the model is appropriate," to have the borough being the primary funding source for this activity. "I don't think we have the expertise on council to have oversight."I have to say I don't think we were getting a great return on our investment," said Garner. "There are better ways of doing it and we need to do better."He said he had been in discussions with the TriCounty Chamber of Commerce, Pottstown Area Industrial Development Inc. and Steve Nelson, the chief operating officer for Montgomery County, about ways it could be done better."But I can't report to you that we have a detailed proposal," Garner said.Berry said the decision "is an opportunity for some of these other organizations to work together with the borough to partner together for economic development."But Andy Paravis, chairman of the board of supervisors of North Coventry Township and a founding member of the Pottstown Metropolitan Regional Planning Committee, said it was Lampe who was coordinating efforts like that, including a proposal to revitalize the Hanover Street bridge, a joint project between the borough, North Coventry, and Montgomery and Chester counties."Eliminating economic development from this community is a mistake," Paravis said. "We have to be prepared for when the economy comes back."Calling the vote "a grave mistake," Toroney said "you might as well put a bullet in this town. You might as well kill us. I'm really angry that we're doing away with economic development in this town. The tax base is the problem, not the people who are working here in borough hall."As for the proposed cuts to the fire companies, an issue close to the hearts of the half-dozen or so firemen who sat in the audience Tuesday, Garner said, "A cut of 25 percent would have been nice from a budget perspective, but it does not make sense in how it would play out."He added, "Personally, I'm not ready to bring this issue back to the table."Neither, apparently, was anyone else.Rhoads, who has remained largely silent during budget discussions except for prepared remarks at the end of the meetings, had a few more Tuesday."In my opinion, this whole budget process was infected before it started due to animosity and disrespect toward the workers, animosity and disrespect toward our economic development director and unprofessional and irresponsible statements," Rhoads said."All year long I have been hearing vague comments and I have asked you again and again to be specific. If you want to be a part of this process, you're welcome to join and if you have a specific contribution to make, please make it. But as for these vague comments, I just don't know if they're very productive," shot back Garner.The council's final meeting, at which the tax rate will be officially set, will be held at 6 p.m. Monday, Dec. 29, in borough hall. Although at that meeting the tax rate legally can be further reduced over what was advertised, it cannot be raised.
http://www.pottsmerc.com/articles/2008/12/17/news/srv0000004296762.txt
POTTSTOWN — If no further changes are made to the budget at the Dec. 29 close-out meeting, taxpayers will face a jump in the property tax rate of roughly 12 percent in 2009.Tuesday night, borough council backed off a proposal to cut 25 percent of the funding provided to the borough's four fire companies, but went ahead and cut the economic development director position. That brought the tax hike down from 14.38 percent, which was where it stood when the council last left the budget table on Dec. 8.The elimination of the economic development position, decided by a 5-2 vote, brought the increase down to about 12.2 percent, said Assistant Borough Manager Jason Bobst.Councilmen Jody Rhoads and Stephen Toroney voted against eliminating the position and Toroney argued vehemently against the move, which will save the borough $134,518 in 2009.
The elimination of the post, currently held by Terri Lampe, comes on the heels of council's Dec. 8 decision to eliminate another 12 positions and to take $177,000 from a payment from Waste Management, which was originally intended for the trash fund, to help fill the budget hole in the general fund.It was not a decision that came easily, or without objection. Former school board member Robert Morgan, who sits on the borough's economic advisory council, urged the council to keep the position, saying it takes time for economic development efforts to take hold."We've got a good three-year head start, now is not the time to stop," said Morgan. "We have to continue that or Pottstown is just going to die."He said the only thing that lowers taxes is an improved tax base and the only thing that will improve the tax base is economic development.Former Councilman Harry Price, who also sits on the economic advisory body, said while he may not have a great deal of expertise in economic development, "I have a great deal of experience on what makes Pottstown tick." He said without continued efforts to boost the tax base, Pottstown would have to continue to cut personnel in order to balance its budget."The fat days of the 50s, and 40s and 60s are gone, we need to have someone on this 24/7," said Price. "This is an investment and you have to take some risk."Both Borough Council President David Garner and Vice President Greg Berry argued that the elimination of the position does not mean the elimination of economic development.Garner said, "I don't think the model is appropriate," to have the borough being the primary funding source for this activity. "I don't think we have the expertise on council to have oversight."I have to say I don't think we were getting a great return on our investment," said Garner. "There are better ways of doing it and we need to do better."He said he had been in discussions with the TriCounty Chamber of Commerce, Pottstown Area Industrial Development Inc. and Steve Nelson, the chief operating officer for Montgomery County, about ways it could be done better."But I can't report to you that we have a detailed proposal," Garner said.Berry said the decision "is an opportunity for some of these other organizations to work together with the borough to partner together for economic development."But Andy Paravis, chairman of the board of supervisors of North Coventry Township and a founding member of the Pottstown Metropolitan Regional Planning Committee, said it was Lampe who was coordinating efforts like that, including a proposal to revitalize the Hanover Street bridge, a joint project between the borough, North Coventry, and Montgomery and Chester counties."Eliminating economic development from this community is a mistake," Paravis said. "We have to be prepared for when the economy comes back."Calling the vote "a grave mistake," Toroney said "you might as well put a bullet in this town. You might as well kill us. I'm really angry that we're doing away with economic development in this town. The tax base is the problem, not the people who are working here in borough hall."As for the proposed cuts to the fire companies, an issue close to the hearts of the half-dozen or so firemen who sat in the audience Tuesday, Garner said, "A cut of 25 percent would have been nice from a budget perspective, but it does not make sense in how it would play out."He added, "Personally, I'm not ready to bring this issue back to the table."Neither, apparently, was anyone else.Rhoads, who has remained largely silent during budget discussions except for prepared remarks at the end of the meetings, had a few more Tuesday."In my opinion, this whole budget process was infected before it started due to animosity and disrespect toward the workers, animosity and disrespect toward our economic development director and unprofessional and irresponsible statements," Rhoads said."All year long I have been hearing vague comments and I have asked you again and again to be specific. If you want to be a part of this process, you're welcome to join and if you have a specific contribution to make, please make it. But as for these vague comments, I just don't know if they're very productive," shot back Garner.The council's final meeting, at which the tax rate will be officially set, will be held at 6 p.m. Monday, Dec. 29, in borough hall. Although at that meeting the tax rate legally can be further reduced over what was advertised, it cannot be raised.
http://www.pottsmerc.com/articles/2008/12/17/news/srv0000004296762.txt
Monday, December 15, 2008
Attracting businesses depends on attractive tax rate to keep them.
Pottstown Mercury - Opinion
Monday, December 15, 2008 6:12 AM EST
One of the most difficult decisions the Pottstown Borough Council faces this week is the budget proposal to eliminate the borough's economic development director position.The proposal is projected to save $180,000 a year by doing away with the job currently held by Terri Lampe and the other costs that support the job.According to Borough Manager Ray Lopez, the $180,000 figure comes from looking at "the issue in its totality, the costs involved, the expense of wages, benefits, meetings, conferences, the office, the support."The argument for keeping the position is that it is the one area that can bring a return on its investment by attracting business to town.
The job was praised by this newspaper and by town leaders when it was created several years ago as a necessary and important step to revitalization in the borough.And, the mission of economic development remains the path with greatest hope for solving the tax problem in Pottstown over the next 10 or 15 years. Without an influx of businesses and the people that businesses bring, the town's future is bleak.That rationale, however, is for a different time and place.Ask a business owner why they chose someplace other than Pottstown to locate or why their project has stalled here or why they picked up and left, and the high tax rate will be near the top of their list of reasons.The best marketing genius in the world can not overcome the unwelcoming fact of Pottstown's disproportionately high tax rate.Now, when keeping that tax rate from skyrocketing higher depends on painful decisions, losing the office of economic development director becomes one of those difficult choices.The arguments that economic development must go forward are without dispute, but no one is going to success in developing the town's business potential if taxes are not brought under control,Economic development may need to go forward without municipal dollars.Council President David Garner said at last week's council meeting that he has met with Tim Phelps, the executive director of the TriCounty Area Chamber of Commerce, and was told the chamber and Pottstown Area Industrial Development "want to address the issue" and that Phelps provided him with "an outline" of how that might happen."They want to figure out a way to assume the management and advancement of the plan," Garner said, referring to the borough's economic development strategic plan.However, "it's not all ironed out so we don't know yet what that would look like and the chamber is still looking for other partners."Council Vice President Greg Berry has pointed out to council that in Montgomery County, Lower Merion Township is the only other municipality with an economic development director, but it is not the only place where economic development occurs.The resources for economic development can come from many places — county and regional partnerships, business organizations like the chamber, volunteer groups like the Pottstown business authority — that do not demand municipal tax dollars.There are many difficult decisions being made within departments in borough hall, and services as sacred to residents as fire and police protection are being scrutinized.The economic development office is a luxury — to some it is seen as a luxury we can not afford to lose and to others as one we can not afford to keep. But, in these tough times, any luxury becomes obsolete.Economic development is as important to Pottstown as ever, but the past few years have shown that the best path may be the one that is accomplished with less instead of more.Business growth will not occur unless the cost of doing business here is attractive.Right now, the cost of finding new businesses is getting in the way of keeping them.
http://www.pottsmerc.com/articles/2008/12/15/opinion/srv0000004271002.txt
Monday, December 15, 2008 6:12 AM EST
One of the most difficult decisions the Pottstown Borough Council faces this week is the budget proposal to eliminate the borough's economic development director position.The proposal is projected to save $180,000 a year by doing away with the job currently held by Terri Lampe and the other costs that support the job.According to Borough Manager Ray Lopez, the $180,000 figure comes from looking at "the issue in its totality, the costs involved, the expense of wages, benefits, meetings, conferences, the office, the support."The argument for keeping the position is that it is the one area that can bring a return on its investment by attracting business to town.
The job was praised by this newspaper and by town leaders when it was created several years ago as a necessary and important step to revitalization in the borough.And, the mission of economic development remains the path with greatest hope for solving the tax problem in Pottstown over the next 10 or 15 years. Without an influx of businesses and the people that businesses bring, the town's future is bleak.That rationale, however, is for a different time and place.Ask a business owner why they chose someplace other than Pottstown to locate or why their project has stalled here or why they picked up and left, and the high tax rate will be near the top of their list of reasons.The best marketing genius in the world can not overcome the unwelcoming fact of Pottstown's disproportionately high tax rate.Now, when keeping that tax rate from skyrocketing higher depends on painful decisions, losing the office of economic development director becomes one of those difficult choices.The arguments that economic development must go forward are without dispute, but no one is going to success in developing the town's business potential if taxes are not brought under control,Economic development may need to go forward without municipal dollars.Council President David Garner said at last week's council meeting that he has met with Tim Phelps, the executive director of the TriCounty Area Chamber of Commerce, and was told the chamber and Pottstown Area Industrial Development "want to address the issue" and that Phelps provided him with "an outline" of how that might happen."They want to figure out a way to assume the management and advancement of the plan," Garner said, referring to the borough's economic development strategic plan.However, "it's not all ironed out so we don't know yet what that would look like and the chamber is still looking for other partners."Council Vice President Greg Berry has pointed out to council that in Montgomery County, Lower Merion Township is the only other municipality with an economic development director, but it is not the only place where economic development occurs.The resources for economic development can come from many places — county and regional partnerships, business organizations like the chamber, volunteer groups like the Pottstown business authority — that do not demand municipal tax dollars.There are many difficult decisions being made within departments in borough hall, and services as sacred to residents as fire and police protection are being scrutinized.The economic development office is a luxury — to some it is seen as a luxury we can not afford to lose and to others as one we can not afford to keep. But, in these tough times, any luxury becomes obsolete.Economic development is as important to Pottstown as ever, but the past few years have shown that the best path may be the one that is accomplished with less instead of more.Business growth will not occur unless the cost of doing business here is attractive.Right now, the cost of finding new businesses is getting in the way of keeping them.
http://www.pottsmerc.com/articles/2008/12/15/opinion/srv0000004271002.txt
Sunday, December 14, 2008
Borough seeks answers to looming budget woes
Sunday, December 14, 2008 12:25 PM EST
POTTSTOWN — When Borough Council meets Tuesday to consider more changes to a budget that threatens to raise property taxes by 19 percent in 2009, two major unanswered questions will loom over their deliberations.Although council made a controversial vote at the Dec. 8 meeting to eliminate 12 positions and partially fill a budget gap with $177,000 from a Waste Management payment, which was supposed to be used to keep trash costs down, it failed to vote on two major recommendations made by the administration. One would cut 25 percent of the $185,000 the borough gives to each of its four fire companies every year. The other is the elimination of the borough's economic development director position, a post now held by Terri Lampe and which borough officials said costs taxpayers $180,000 a year.Although council Vice President Greg Berry made both motions, none of the other council members present would venture a second so a vote could be taken.It seems likely that when council meets again Tuesday for further budget discussions these matters will be high on the list of potential action items.
Prior to formally considering the measures, council members heard from residents, workers and managers.Fire Chief Richard Lengel, who opposes the cuts to the fire companies, outlined changes he could make to his budget and insurance expenses the fire companies have said they will absorb which could save the borough more than $26,000. He argued that the funding cut could be absorbed in no other way but by cutting back on the paid drivers in each firehouse, and that could endanger lives and property.Because the number of volunteers who respond to fires has dwindled over the years, getting a paid professional to the scene as quickly as possible makes all the difference in the world, said Lengel.He said for every minute a structure fire burns without being fought, it doubles in size."Over the past 50 years, we have done the job with the same 12 positions, no increase in personnel," Lengel said. "In 1997, we had 9,000 man hours logged, but over the last three years (with fewer volunteers), we've had 4,000 man hours, even though the number of calls stays constant."He said out of 324 calendar days in 2008, only 35 had zero fire calls and 75 percent of the remaining days have two or more fire calls."Lessening funding for the fire companies, which will affect having four drivers on all the time, and you start rolling the dice," Lengel said, "and that's my case."Former Councilman Arthur Green, who now sits on the borough's economic advisory board, urged the council to "fully fund the police and firefighters. They are the most basic and tangible function of government and I support raising taxes, if necessary, to support them."Green also urged the council to restore if not the economic development director's position, "at least some mechanism for allowing the projects to continue forward."Green said, "The strategic plan lays out the future of Pottstown. If you sacrifice it, you sacrifice our future. It is a false economy to do this for a few dollars that you might save today if it ends up cutting off future dollars.""I have been seeing e-mails that suggest by cutting this position we're not going to follow the strategic plan and that is completely false," said Berry. "We are considering the value of having an economic development director, and if that position is or will be providing a return over five, 10 and 20 years."Added Berry, "No one has ever provided me any numbers that show we're getting a return on this investment. All I ever get is a lot of innuendo, a lot of fluff. Just because we have no director does not stop economic development efforts."Borough Manager Ray Lopez told the council that when the recommendation to eliminate the position was formed "we looked at the issue in its totality, the costs involved, the expense of wages, benefits, meetings, conferences, the office, the support and concluded it cost us $180,000. We thought that was a big wad of money to swallow."Council President David Garner said he met prior to the Dec. 8 meeting with Tim Phelps, the executive director of the TriCounty Area Chamber of Commerce, and was told the chamber and Pottstown Area Industrial Development "want to address the issue" and that Phelps provided him with "an outline" of how that might happen."They want to figure out a way to assume the management and advancement of the plan," Garner said. However, "it's not all ironed out so we don't know yet what that would look like and the chamber is still looking for other partners."He reminded the council that a recent deal with The Hill School for the abandonment of Green Street provides for a $25,000 payment from the school to be used for economic development.Other department heads also outlined how they cut their budgets.Public Works Director Doug Yerger said the cuts he made to the streets department would be most visible to taxpayers "during larger snowstorms. That could be the penalty. If we don't have the manpower, we might have to hire people from outside."Police Chief Mark Flanders, whose department consumes the largest portion of the budget's general fund, said by the time he was done, $390,000 had been cut from his budget."At the first swipe, we cut $70,000 and then they came back and asked for more, so we had to look at decreases in the work force. So eliminating one full-time office worker and one part-time parking enforcement officer added another $150,000 to the total," Flanders said."It's painful, it truly is," said Flanders. "What else can I say?"Also painful was the laying off of workers, notices for which were delivered last week, but who goes may not be the same as who was proposed to go.First of all, the borough's contract with the American Federal of State, County and Municipal Employees unit allows those with seniority to "bump" into lower positions they have held if their position is eliminated. Also, complications may ensue from a grievance the union filed over the fact that the contract calls for the borough to "lay off all temporary, seasonal and part-time employees within the department prior to any layoff of regular full-time employees," which is not what was done.Part-time employees who were not identified as being among those to be laid off include the newly hired part-time water meter reader and the second parking enforcement officer.It remained unclear Friday how the union's action will affect the eventual outcome. Also unclear is what the final effect will be on the taxpayer.Assistant Borough Manager Jason Bobst, who has helped put the budget proposal together, could not immediately calculate the exact effect a 19 percent tax hike would have on the average property assessment in Pottstown, which stands at about $78,000. He also failed to fulfill an offer to e-mail that information to The Mercury last week.That may well be among the details fleshed out at Tuesday's council meeting, a meeting made necessary largely because of Garner's refusal to accept a 19 percent tax hike."I am not satisfied this is a budget I am ready to vote on," Garner told council members."I am trying to turn over rocks. I think 19 percent is way out of line," Garner said. "I don't think we've done a real good job here."
http://www.pottsmerc.com/articles/2008/12/14/news/srv0000004268644.txt
POTTSTOWN — When Borough Council meets Tuesday to consider more changes to a budget that threatens to raise property taxes by 19 percent in 2009, two major unanswered questions will loom over their deliberations.Although council made a controversial vote at the Dec. 8 meeting to eliminate 12 positions and partially fill a budget gap with $177,000 from a Waste Management payment, which was supposed to be used to keep trash costs down, it failed to vote on two major recommendations made by the administration. One would cut 25 percent of the $185,000 the borough gives to each of its four fire companies every year. The other is the elimination of the borough's economic development director position, a post now held by Terri Lampe and which borough officials said costs taxpayers $180,000 a year.Although council Vice President Greg Berry made both motions, none of the other council members present would venture a second so a vote could be taken.It seems likely that when council meets again Tuesday for further budget discussions these matters will be high on the list of potential action items.
Prior to formally considering the measures, council members heard from residents, workers and managers.Fire Chief Richard Lengel, who opposes the cuts to the fire companies, outlined changes he could make to his budget and insurance expenses the fire companies have said they will absorb which could save the borough more than $26,000. He argued that the funding cut could be absorbed in no other way but by cutting back on the paid drivers in each firehouse, and that could endanger lives and property.Because the number of volunteers who respond to fires has dwindled over the years, getting a paid professional to the scene as quickly as possible makes all the difference in the world, said Lengel.He said for every minute a structure fire burns without being fought, it doubles in size."Over the past 50 years, we have done the job with the same 12 positions, no increase in personnel," Lengel said. "In 1997, we had 9,000 man hours logged, but over the last three years (with fewer volunteers), we've had 4,000 man hours, even though the number of calls stays constant."He said out of 324 calendar days in 2008, only 35 had zero fire calls and 75 percent of the remaining days have two or more fire calls."Lessening funding for the fire companies, which will affect having four drivers on all the time, and you start rolling the dice," Lengel said, "and that's my case."Former Councilman Arthur Green, who now sits on the borough's economic advisory board, urged the council to "fully fund the police and firefighters. They are the most basic and tangible function of government and I support raising taxes, if necessary, to support them."Green also urged the council to restore if not the economic development director's position, "at least some mechanism for allowing the projects to continue forward."Green said, "The strategic plan lays out the future of Pottstown. If you sacrifice it, you sacrifice our future. It is a false economy to do this for a few dollars that you might save today if it ends up cutting off future dollars.""I have been seeing e-mails that suggest by cutting this position we're not going to follow the strategic plan and that is completely false," said Berry. "We are considering the value of having an economic development director, and if that position is or will be providing a return over five, 10 and 20 years."Added Berry, "No one has ever provided me any numbers that show we're getting a return on this investment. All I ever get is a lot of innuendo, a lot of fluff. Just because we have no director does not stop economic development efforts."Borough Manager Ray Lopez told the council that when the recommendation to eliminate the position was formed "we looked at the issue in its totality, the costs involved, the expense of wages, benefits, meetings, conferences, the office, the support and concluded it cost us $180,000. We thought that was a big wad of money to swallow."Council President David Garner said he met prior to the Dec. 8 meeting with Tim Phelps, the executive director of the TriCounty Area Chamber of Commerce, and was told the chamber and Pottstown Area Industrial Development "want to address the issue" and that Phelps provided him with "an outline" of how that might happen."They want to figure out a way to assume the management and advancement of the plan," Garner said. However, "it's not all ironed out so we don't know yet what that would look like and the chamber is still looking for other partners."He reminded the council that a recent deal with The Hill School for the abandonment of Green Street provides for a $25,000 payment from the school to be used for economic development.Other department heads also outlined how they cut their budgets.Public Works Director Doug Yerger said the cuts he made to the streets department would be most visible to taxpayers "during larger snowstorms. That could be the penalty. If we don't have the manpower, we might have to hire people from outside."Police Chief Mark Flanders, whose department consumes the largest portion of the budget's general fund, said by the time he was done, $390,000 had been cut from his budget."At the first swipe, we cut $70,000 and then they came back and asked for more, so we had to look at decreases in the work force. So eliminating one full-time office worker and one part-time parking enforcement officer added another $150,000 to the total," Flanders said."It's painful, it truly is," said Flanders. "What else can I say?"Also painful was the laying off of workers, notices for which were delivered last week, but who goes may not be the same as who was proposed to go.First of all, the borough's contract with the American Federal of State, County and Municipal Employees unit allows those with seniority to "bump" into lower positions they have held if their position is eliminated. Also, complications may ensue from a grievance the union filed over the fact that the contract calls for the borough to "lay off all temporary, seasonal and part-time employees within the department prior to any layoff of regular full-time employees," which is not what was done.Part-time employees who were not identified as being among those to be laid off include the newly hired part-time water meter reader and the second parking enforcement officer.It remained unclear Friday how the union's action will affect the eventual outcome. Also unclear is what the final effect will be on the taxpayer.Assistant Borough Manager Jason Bobst, who has helped put the budget proposal together, could not immediately calculate the exact effect a 19 percent tax hike would have on the average property assessment in Pottstown, which stands at about $78,000. He also failed to fulfill an offer to e-mail that information to The Mercury last week.That may well be among the details fleshed out at Tuesday's council meeting, a meeting made necessary largely because of Garner's refusal to accept a 19 percent tax hike."I am not satisfied this is a budget I am ready to vote on," Garner told council members."I am trying to turn over rocks. I think 19 percent is way out of line," Garner said. "I don't think we've done a real good job here."
http://www.pottsmerc.com/articles/2008/12/14/news/srv0000004268644.txt
Council cannot shirk responsibility for tough decisions in tough times.
Pottstown Mercury - Opinion
The budget decisions facing Pottstown Borough Council this year may not represent the most difficult choices ever undertaken, but they are becoming the most difficult to accomplish.Council has been grappling for two months with the news that jobs and services might have to be cut to balance the 2009 budget, and even at that, the borough could still face a double-digit tax increase.But despite the handwriting being on the wall for some time, council members are avoiding the hard decisions. While department heads and consultant and acting financial director Timothea Kirchner crunch numbers and present the financial picture for consideration, some council members sit silent.Last Monday, council did manage to arrive at some of the difficult budget decisions, including a split vote to lay off 12 employees. But, on two other significant and highly controversial items -— the elimination of the economic development director's position and a 25 percent cut in funding to the borough's four fire companies — motions failed for lack of a second.
Without a second, there was no opportunity for council members to explain their reasons for their decision —because they didn't make any, much to the chagrin of Council President David Garner. Garner said council's unwillingness to make decisions will translate to the second double-digit tax hike in three years."Taxes were raised 25 percent two years ago and 9 percent last year. We need to do better," Garner said. "The reality is revenues in the borough are declining, and they are declining because the taxes keep going up."Garner is not the only one getting frustrated.Borough employees have come to the administration and to council with ideas on ways to save money, and on Monday, the chairperson of the Pottstown unit of the American Federation of State County and Municipal Employees said union members were offering a wage freeze in the current contract.Unit chairperson Karen Lewandowski said the wage freeze would save the borough about $111,648. But no action followed.Last week, Lewandowski told council that as much as $300,000 in additional revenue could be obtained by charging a 10 percent late fee to septic haulers who are behind on their payments for taking septage to the sewer plant for treatment.Lewandowski and others have complained that a number of suggestions on ways to reduce costs have been ignored.Garner's encouragement to his fellow council members to bring to a vote the tough decisions is laudable.But, council does not appear to be willing to reciprocate or work with the union on ideas that could save money. Is the unwillingness because the ideas are wrong, or because council members perceive them as coming from the wrong corner?This is not a budget where anyone is going to come away satisfied. The borough's eroding tax base has come up against its pressing needs, and the collision poses considerable challenge.But, these are the times when leaders must step up to take more responsibility, not less. The call to keep money in the budget for economic development must be balanced against the reality that the borough's tax base is its worst enemy. The emotional clamor to protect fire and police services must be weighed against the pain of higher taxes in a deteriorating economy.Council must respond.The town's elected leaders can not pretend that by putting off votes a miracle will happen, that by ignoring the alarm bells, the fire will go out by itself. The silence and lack of action is disturbing; the unwillingness to work side by side with employees to find answers is destructive.If no other changes are made, the budget as it stands now would drive a 19 percent tax increase in 2009. Garner and others are urging council members to prevent the downward economic spiral that such a hike might spark.Time is running out.
http://www.pottsmerc.com/articles/2008/12/14/opinion/srv0000004269112.txt
The budget decisions facing Pottstown Borough Council this year may not represent the most difficult choices ever undertaken, but they are becoming the most difficult to accomplish.Council has been grappling for two months with the news that jobs and services might have to be cut to balance the 2009 budget, and even at that, the borough could still face a double-digit tax increase.But despite the handwriting being on the wall for some time, council members are avoiding the hard decisions. While department heads and consultant and acting financial director Timothea Kirchner crunch numbers and present the financial picture for consideration, some council members sit silent.Last Monday, council did manage to arrive at some of the difficult budget decisions, including a split vote to lay off 12 employees. But, on two other significant and highly controversial items -— the elimination of the economic development director's position and a 25 percent cut in funding to the borough's four fire companies — motions failed for lack of a second.
Without a second, there was no opportunity for council members to explain their reasons for their decision —because they didn't make any, much to the chagrin of Council President David Garner. Garner said council's unwillingness to make decisions will translate to the second double-digit tax hike in three years."Taxes were raised 25 percent two years ago and 9 percent last year. We need to do better," Garner said. "The reality is revenues in the borough are declining, and they are declining because the taxes keep going up."Garner is not the only one getting frustrated.Borough employees have come to the administration and to council with ideas on ways to save money, and on Monday, the chairperson of the Pottstown unit of the American Federation of State County and Municipal Employees said union members were offering a wage freeze in the current contract.Unit chairperson Karen Lewandowski said the wage freeze would save the borough about $111,648. But no action followed.Last week, Lewandowski told council that as much as $300,000 in additional revenue could be obtained by charging a 10 percent late fee to septic haulers who are behind on their payments for taking septage to the sewer plant for treatment.Lewandowski and others have complained that a number of suggestions on ways to reduce costs have been ignored.Garner's encouragement to his fellow council members to bring to a vote the tough decisions is laudable.But, council does not appear to be willing to reciprocate or work with the union on ideas that could save money. Is the unwillingness because the ideas are wrong, or because council members perceive them as coming from the wrong corner?This is not a budget where anyone is going to come away satisfied. The borough's eroding tax base has come up against its pressing needs, and the collision poses considerable challenge.But, these are the times when leaders must step up to take more responsibility, not less. The call to keep money in the budget for economic development must be balanced against the reality that the borough's tax base is its worst enemy. The emotional clamor to protect fire and police services must be weighed against the pain of higher taxes in a deteriorating economy.Council must respond.The town's elected leaders can not pretend that by putting off votes a miracle will happen, that by ignoring the alarm bells, the fire will go out by itself. The silence and lack of action is disturbing; the unwillingness to work side by side with employees to find answers is destructive.If no other changes are made, the budget as it stands now would drive a 19 percent tax increase in 2009. Garner and others are urging council members to prevent the downward economic spiral that such a hike might spark.Time is running out.
http://www.pottsmerc.com/articles/2008/12/14/opinion/srv0000004269112.txt
Thursday, December 11, 2008
Headline Inaccurate
The headline "Council votes to lay off 12 workers" is woefully inaccurate and misleading.
Council did not vote to lay off anyone, instead council voted to eliminate 12 positions. Council can only hire and fire the borough manager and police chief. Council cannot lay off employees.
Council did not vote to lay off anyone, instead council voted to eliminate 12 positions. Council can only hire and fire the borough manager and police chief. Council cannot lay off employees.
Wednesday, December 10, 2008
Council votes to lay off 12 workers
See commentary regarding inaccurate headline.
Wednesday, December 10, 2008 11:58 AM EST
POTTSTOWN — Borough Council Monday night made some, but not all, of the difficult budget decisions it faces, the most significant being a split vote to lay off 12 employees.If no other changes are made, the budget, as it stands now, would drive a 19 percent tax increase in 2009.With Councilwoman Maureen Allen absent Monday night, the deciding vote on the layoffs fell to Mayor Sharon Valentine-Thomas, who votes on council only to break a tie.Joining the mayor in voting to eliminate the positions were council President David Garner, Vice President Greg Berry and Councilman Stephen Toroney.
Council was unable to make a decision on two other controversial aspects of the administration's budget proposal — the elimination of the economic development director position and a 25 percent cut in funding to the borough's four fire companies — because no one was willing to second motions for either action.Berry made both motions, but to Garner's visible frustration, none of the other members of council was willing to give either motion a second. Thus, neither matter could be brought to the floor for a vote."I am a little frustrated," Garner told council members. He added that "I am not voting for a 19 percent tax increase.""Taxes were raised 25 percent two years ago and 9 percent last year. We need to do better," Garner said. "The reality is revenues in the borough are declining, and they are declining because the taxes keep going up."He aimed his frustration at the council's failure to make a vote on the economic development position."With a declining tax base and the economy the way it is, keeping in $180,000 to pay for economic development is not advantageous for our community," he said."Everywhere else, they are cutting positions; we don't have the luxury of keeping everyone intact."Prior to voting to proceed with the layoffs, Berry reminded the members of council that they are elected not to represent the borough's employees, but the taxpayers."We represent and answer to the taxpayers and only the taxpayers of Pottstown," he said."Do I think 19 percent is something this town can take? I'm not sure," said Assistant Manager Jason Bobst, who with consultant and finance director Timothea Kirchner had made the case for the cuts."What I am sure of is we're going to be in the same situation next year if we don't take action now," Bobst said. "Just since we started this process, we've lost $8 million in property value, and it's going to continue to slide and we're trying to use this process to dig our feet into the sand and start to push back."Prior to the vote, Karen Lewandowski, who chairs the Pottstown unit of the American Federation of State County and Municipal Employees, informed council that the union members "have presented council with an offer of a wage freeze to their current contract." She said the wage freeze would save the borough about $111,648.It is unclear if the matter was given consideration by council; although, the members did meet in a closed-door executive session to discuss, among other things, contract matters.When the matter was raised during the meeting, Garner dismissed it saying, "There's nothing there."Last week, Lewandowski told the council that as much as $300,000 in additional revenue could be obtained by charging a 10 percent late fee to septic haulers who are behind on their payments for taking septage to the sewer plant for treatment.Monday night, Bobst said the borough is moving to implement a percent fee as a penalty, but that care must be taken."It's difficult to build a budget on outstanding debt," said Bobst. "To some extent, we have to accept this as being part of the business we're in. That's why we only budget on an assumption of collecting 93 percent of all taxes owed.""We tried implementing fines a few years ago and as soon as we brought the hammer down, the hauler declared bankruptcy and we didn't see a dime, so we could be hurt in the long run," said Brent Wagner, the superintendent at the sewage treatment plant.Lewandowski was not the only union member to address the council. Code Enforcement Officer Dave Borzick, recognizing that the task before council is "a difficult one," urged them to "get all the facts, not just the information designed by a few individuals with their own agendas."He pointed out that the money-saving ideas the union has recently provided "have been ignored before and I would wonder why you would only be taking advice from the very individuals that have allowed these situations to occur over three years. It seems like more smoke and mirrors."Borzick ended by quoting Adolf Hitler, saying, "Make the lie big, make it simple, keep saying it and eventually they will believe it."Don Read also addressed the council, saying the problem Pottstown faces is "there are more tax users than there are taxpayers" and urged the members to "break the cycle.""I will tell you that the taxpayers have been brought to a boiling point, and I'm one of them," Read said. "When did a good paying job become an entitlement funded by the taxpayers?"Read, who is also a member of the Pottstown Borough Authority, told the council, "You do not represent labor, management, department heads, contractors or consultants. You represent the taxpayers."He found agreement with another member of the authority, Aram Ecker, who told the council, "Without exception, everyone is at their wits' end about how much it costs to live in Pottstown.""Back in the 1990s, we had 32,000 people in town and we had a payroll of 90 employees. Now we have 21,000 people in town and we have 180 employees. There is an exodus of people leaving Pottstown. You can't raise taxes 50 cents," he said.No budget decision will be final until Dec. 29, council's adjournment meeting, where the budget and tax rate will be officially adopted.Garner wants a few more decisions to be made."I am not satisfied this is a budget I'm ready to vote on," Garner said. "I am trying to turn over rocks because I think 19 percent is way out of line. I don't think we've done a real good job here."As a result, he convinced council to have another meeting to discuss the budget. It will be held Wednesday, Dec. 17, at 6 p.m. in borough hall. It was not immediately clear if the public will be allowed to speak.Despite Garner's comments, council did make some decisions. With a 3-2 vote, it decided to make use of $177,000 — left over from the $250,000 payment made by Waste Management in resolving the dispute over the treatment of landfill leachate — to help fill the gap in the general fund.Garner, who is the solicitor for the borough authority which was involved in obtaining the payment, abstained, and Toroney and Councilman Mark Gibson voted against the measure.Council also decided to take the administration's recommendations on delaying borrowing for a project to build new hangars at the airport and to continue three programs funded largely by grants but which require matching funds from the borough.
http://www.pottsmerc.com/articles/2008/12/10/news/srv0000004243059.txt
Wednesday, December 10, 2008 11:58 AM EST
POTTSTOWN — Borough Council Monday night made some, but not all, of the difficult budget decisions it faces, the most significant being a split vote to lay off 12 employees.If no other changes are made, the budget, as it stands now, would drive a 19 percent tax increase in 2009.With Councilwoman Maureen Allen absent Monday night, the deciding vote on the layoffs fell to Mayor Sharon Valentine-Thomas, who votes on council only to break a tie.Joining the mayor in voting to eliminate the positions were council President David Garner, Vice President Greg Berry and Councilman Stephen Toroney.
Council was unable to make a decision on two other controversial aspects of the administration's budget proposal — the elimination of the economic development director position and a 25 percent cut in funding to the borough's four fire companies — because no one was willing to second motions for either action.Berry made both motions, but to Garner's visible frustration, none of the other members of council was willing to give either motion a second. Thus, neither matter could be brought to the floor for a vote."I am a little frustrated," Garner told council members. He added that "I am not voting for a 19 percent tax increase.""Taxes were raised 25 percent two years ago and 9 percent last year. We need to do better," Garner said. "The reality is revenues in the borough are declining, and they are declining because the taxes keep going up."He aimed his frustration at the council's failure to make a vote on the economic development position."With a declining tax base and the economy the way it is, keeping in $180,000 to pay for economic development is not advantageous for our community," he said."Everywhere else, they are cutting positions; we don't have the luxury of keeping everyone intact."Prior to voting to proceed with the layoffs, Berry reminded the members of council that they are elected not to represent the borough's employees, but the taxpayers."We represent and answer to the taxpayers and only the taxpayers of Pottstown," he said."Do I think 19 percent is something this town can take? I'm not sure," said Assistant Manager Jason Bobst, who with consultant and finance director Timothea Kirchner had made the case for the cuts."What I am sure of is we're going to be in the same situation next year if we don't take action now," Bobst said. "Just since we started this process, we've lost $8 million in property value, and it's going to continue to slide and we're trying to use this process to dig our feet into the sand and start to push back."Prior to the vote, Karen Lewandowski, who chairs the Pottstown unit of the American Federation of State County and Municipal Employees, informed council that the union members "have presented council with an offer of a wage freeze to their current contract." She said the wage freeze would save the borough about $111,648.It is unclear if the matter was given consideration by council; although, the members did meet in a closed-door executive session to discuss, among other things, contract matters.When the matter was raised during the meeting, Garner dismissed it saying, "There's nothing there."Last week, Lewandowski told the council that as much as $300,000 in additional revenue could be obtained by charging a 10 percent late fee to septic haulers who are behind on their payments for taking septage to the sewer plant for treatment.Monday night, Bobst said the borough is moving to implement a percent fee as a penalty, but that care must be taken."It's difficult to build a budget on outstanding debt," said Bobst. "To some extent, we have to accept this as being part of the business we're in. That's why we only budget on an assumption of collecting 93 percent of all taxes owed.""We tried implementing fines a few years ago and as soon as we brought the hammer down, the hauler declared bankruptcy and we didn't see a dime, so we could be hurt in the long run," said Brent Wagner, the superintendent at the sewage treatment plant.Lewandowski was not the only union member to address the council. Code Enforcement Officer Dave Borzick, recognizing that the task before council is "a difficult one," urged them to "get all the facts, not just the information designed by a few individuals with their own agendas."He pointed out that the money-saving ideas the union has recently provided "have been ignored before and I would wonder why you would only be taking advice from the very individuals that have allowed these situations to occur over three years. It seems like more smoke and mirrors."Borzick ended by quoting Adolf Hitler, saying, "Make the lie big, make it simple, keep saying it and eventually they will believe it."Don Read also addressed the council, saying the problem Pottstown faces is "there are more tax users than there are taxpayers" and urged the members to "break the cycle.""I will tell you that the taxpayers have been brought to a boiling point, and I'm one of them," Read said. "When did a good paying job become an entitlement funded by the taxpayers?"Read, who is also a member of the Pottstown Borough Authority, told the council, "You do not represent labor, management, department heads, contractors or consultants. You represent the taxpayers."He found agreement with another member of the authority, Aram Ecker, who told the council, "Without exception, everyone is at their wits' end about how much it costs to live in Pottstown.""Back in the 1990s, we had 32,000 people in town and we had a payroll of 90 employees. Now we have 21,000 people in town and we have 180 employees. There is an exodus of people leaving Pottstown. You can't raise taxes 50 cents," he said.No budget decision will be final until Dec. 29, council's adjournment meeting, where the budget and tax rate will be officially adopted.Garner wants a few more decisions to be made."I am not satisfied this is a budget I'm ready to vote on," Garner said. "I am trying to turn over rocks because I think 19 percent is way out of line. I don't think we've done a real good job here."As a result, he convinced council to have another meeting to discuss the budget. It will be held Wednesday, Dec. 17, at 6 p.m. in borough hall. It was not immediately clear if the public will be allowed to speak.Despite Garner's comments, council did make some decisions. With a 3-2 vote, it decided to make use of $177,000 — left over from the $250,000 payment made by Waste Management in resolving the dispute over the treatment of landfill leachate — to help fill the gap in the general fund.Garner, who is the solicitor for the borough authority which was involved in obtaining the payment, abstained, and Toroney and Councilman Mark Gibson voted against the measure.Council also decided to take the administration's recommendations on delaying borrowing for a project to build new hangars at the airport and to continue three programs funded largely by grants but which require matching funds from the borough.
http://www.pottsmerc.com/articles/2008/12/10/news/srv0000004243059.txt
Monday, December 8, 2008
PCTV contributing to general fund, not draining it
Monday, December 8, 2008 7:44 AM EST
POTTSTOWN — As it turns out, PCTV is not losing money after all.When Assistant Borough Manager Jason Bobst and Timothea Kirchner, a financial consultant and interim finance director, began putting together the 2009 budget, one of the areas they found worrisome was a capital item to borrow money for, among other things, $300,000 worth of new equipment for PCTV.According to the audits from 2006 and 2007, Kirchner told council Dec. 3, PCTV had been running a deficit.But after meeting with PCTV chief Mark Pollock, she came to realize that at least until 2007, it was the other way around, and that it was PCTV that was helping to prop up the general fund.
"We keep peeling back the layers of the onion," Kirchner said.Beneath the outer layer, in which PCTV was going to require an infusion of cash from the general fund in 2009, Kirchner said she found that in 2004, council had transferred $150,000 into the general fund. In 2005, it was $200,000. In 2006, it went up to $250,000 and in 2007, it was $175,000."Essentially, over many years the general fund was drawing out of this enterprise to balance the budget," Kirchner said."Think of it, over eight years, PCTV has put over $2 million into the borough's general fund and we haven't cost the borough one penny to operate," Pollock told The Mercury.As a consequence of this deeper investigation, Kirchner said Pollock had re-submitted his budget, particularly given the drop in advertising dollars that have occurred as a result of the recession."But has also reduced his expenditures significantly," she said.As a result, the $63,000 that had once been penciled in as the general fund's contribution to PCTV has been eliminated from the budget proposal, Kirchner said.
http://www.pottsmerc.com/articles/2008/12/08/news/srv0000004215439.txt
POTTSTOWN — As it turns out, PCTV is not losing money after all.When Assistant Borough Manager Jason Bobst and Timothea Kirchner, a financial consultant and interim finance director, began putting together the 2009 budget, one of the areas they found worrisome was a capital item to borrow money for, among other things, $300,000 worth of new equipment for PCTV.According to the audits from 2006 and 2007, Kirchner told council Dec. 3, PCTV had been running a deficit.But after meeting with PCTV chief Mark Pollock, she came to realize that at least until 2007, it was the other way around, and that it was PCTV that was helping to prop up the general fund.
"We keep peeling back the layers of the onion," Kirchner said.Beneath the outer layer, in which PCTV was going to require an infusion of cash from the general fund in 2009, Kirchner said she found that in 2004, council had transferred $150,000 into the general fund. In 2005, it was $200,000. In 2006, it went up to $250,000 and in 2007, it was $175,000."Essentially, over many years the general fund was drawing out of this enterprise to balance the budget," Kirchner said."Think of it, over eight years, PCTV has put over $2 million into the borough's general fund and we haven't cost the borough one penny to operate," Pollock told The Mercury.As a consequence of this deeper investigation, Kirchner said Pollock had re-submitted his budget, particularly given the drop in advertising dollars that have occurred as a result of the recession."But has also reduced his expenditures significantly," she said.As a result, the $63,000 that had once been penciled in as the general fund's contribution to PCTV has been eliminated from the budget proposal, Kirchner said.
http://www.pottsmerc.com/articles/2008/12/08/news/srv0000004215439.txt
Borough workers bring cost-cutting ideas to council
Monday, December 8, 2008 7:44 AM EST
POTTSTOWN — With the clock ticking and borough council yet to make any of the wrenching budget decisions placed before its members by the administration, the president of the workers union stood up Wednesday to argue that some methods of saving money were being ignored by management.Karen Lewandowski, who heads the local chapter of the American Federation of Federal State and County Employees, provided information to council including a way in which more than $300,000 could be added to the coffers every year.Before she could provide that information, Councilman Mark Gibson had to buck Borough Council President David Garner's refusal to let her speak and force a motion to suspend the rules of the work session during which council normally does not take outside comments.Garner, was joined by Council Vice President Greg Berry and Councilman Stephen Toroney in voting against Gibson's motion.
Once allowed to the microphone, Lewandowski informed council that currently several companies that empty septic tanks and bring the contents to the sewage treatment plant for disposal, are behind in paying the fees they are charged.Last month, wastewater treatment plant superintendent Brent Wagner told the borough authority that four of those companies account for $174,000 that are overdue by more than 150 days and said he had put them on a payment plan.Lewandowski said, these companies are not charged the 10 percent interest fee that residential water customers who are late with their bills are charged.She said overall, the amount of fees past due for septic disposal are $250,171.52 and that charging 10 percent interest on those and other overdue bills could accumulate as much as $300,852 in additional revenue.That measure alone would cut nearly in half the $692,357 budget gap that stands in the current proposed 2009 budget, a gap that will require an 10.95 percent tax hike to close, even if council moves ahead with the drastic measures proposed, including eliminating five management and eight union positions and cutting contributions to the borough's four fire companies by 25 percent.Assistant Borough Manager Jason Bobst said without making the changes recommended by the administration, property taxes would have to be raised by 27 to 30 percent to close the budget gap.Bobst who, along with consultant Timothea Kirchner put together the current budget proposal, asked for permission to respond to Lewandowski's comments, but Garner said tonight's council meeting would be the proper venue.Lewandowski, whose union does not include the 43 members of the police union, also presented information indicating that the borough's higher-paid managers annually clock more overtime pay than the union workers.Since the managers are higher paid, this practice costs taxpayers more money, particularly when — as has happened numerous times in the past — the union files grievances over the way this violates the contract. Typically, the borough ends up settling these grievances by having to also pay overtime to the union workers who, under the contract, should have been called in, even though they didn't do any work.Because personnel matters are not public, Borough Manager Ray Lopez has in the past declined to indicate whether any of the managers who are allowing this practice to occur has been disciplined.Lewandowski's analysis of 2008 showed managers in the water department logging twice the over time of union workers — 211.75 hours; sewer department managers logging one and a half times more overtime than union workers and streets department managers logging one and half times more overtime than union workers.Her information packet included a salary list showing that the union's 65 full-time workers and five part-time workers cost taxpayers $2.7 million, with the average salary at $39,016.The highest paid AFSCME union workers on the list, code enforcement officer Dave Borzick, earned $47,382.40 in 2008.Her information also included a list of the borough's 26 managers (not including the police department), who cost taxpayers $1.6 million and earn an average of $61,872.Lopez is the highest-paid of these managers, expected to earn $93,712.50 in 2008.Lopez addressed a figure used during the Nov. 24 budget meeting when Lewandowski said with the lay-offs, the borough would have a manager-to-worker ratio of 2 to 1.Lopez, exempting four employees who are not in the union but are not supervisors, also included the summer workers hired in the summer and the borough's crossing guards in making his calculation and said when those employees are included, the ratio stands at one manager for every six workers."But we don't look at it that way, we look at it as a team," Lopez said.Gibson and Councilman Mike Wenzel were not buying what Lopez was selling."How can you look at it that way?" Gibson said angrily. "We're cutting full-time people and you want to count the seasonal workers who are here for two or three months?""I don't see how you can include the summer help and the crossing guards," seconded Wenzel.Whether the information Lewandowski provided will be taken into account by council members when making their decisions may not be known until tonight, when Garner promised Bobst and Kirchner that council would vote on a number their recommendations.The administration has already begun meeting with the workers who may be laid off in order to ensure that should that final decision be made, they will not appear on the 2009 payroll.One of those recommendations is the elimination of the Economic Development Director position, currently held by Terri Lampe. Wednesday night, Pottstown Memorial Medical Center CEO Steven MacLauchlan and Tim Phelps, executive director of the TriCounty Area Chamber of Commerce, said they would like to talk to the borough about coming up with a partnership that could ensure those functions continue. Both are members of the borough's economic advisory committee and spoke as such.On the subject of funding to the fire companies, Fire Chief Richard Lengel had made several proposals, including having firemen charge for the fire safety inspections they now conduct for free, as a way to prevent the 25 percent funding cut.Bobst said a 2.5 to 3 percent tax hike would be required to make up that funding cut, to which Mayor Sharon Valentine-Thomas responded "I'm advocating for that."Council set Monday, Dec. 29 at 6 p.m. for its annual adjournment meeting, making it the last day the budget can legally be adopted.The next meeting at which the budget will be discussed is tonight at 7 p.m. on the third floor of borough hall. It is the meeting at which the public is permitted to speak.
http://www.pottsmerc.com/articles/2008/12/08/news/srv0000004209158.txt
POTTSTOWN — With the clock ticking and borough council yet to make any of the wrenching budget decisions placed before its members by the administration, the president of the workers union stood up Wednesday to argue that some methods of saving money were being ignored by management.Karen Lewandowski, who heads the local chapter of the American Federation of Federal State and County Employees, provided information to council including a way in which more than $300,000 could be added to the coffers every year.Before she could provide that information, Councilman Mark Gibson had to buck Borough Council President David Garner's refusal to let her speak and force a motion to suspend the rules of the work session during which council normally does not take outside comments.Garner, was joined by Council Vice President Greg Berry and Councilman Stephen Toroney in voting against Gibson's motion.
Once allowed to the microphone, Lewandowski informed council that currently several companies that empty septic tanks and bring the contents to the sewage treatment plant for disposal, are behind in paying the fees they are charged.Last month, wastewater treatment plant superintendent Brent Wagner told the borough authority that four of those companies account for $174,000 that are overdue by more than 150 days and said he had put them on a payment plan.Lewandowski said, these companies are not charged the 10 percent interest fee that residential water customers who are late with their bills are charged.She said overall, the amount of fees past due for septic disposal are $250,171.52 and that charging 10 percent interest on those and other overdue bills could accumulate as much as $300,852 in additional revenue.That measure alone would cut nearly in half the $692,357 budget gap that stands in the current proposed 2009 budget, a gap that will require an 10.95 percent tax hike to close, even if council moves ahead with the drastic measures proposed, including eliminating five management and eight union positions and cutting contributions to the borough's four fire companies by 25 percent.Assistant Borough Manager Jason Bobst said without making the changes recommended by the administration, property taxes would have to be raised by 27 to 30 percent to close the budget gap.Bobst who, along with consultant Timothea Kirchner put together the current budget proposal, asked for permission to respond to Lewandowski's comments, but Garner said tonight's council meeting would be the proper venue.Lewandowski, whose union does not include the 43 members of the police union, also presented information indicating that the borough's higher-paid managers annually clock more overtime pay than the union workers.Since the managers are higher paid, this practice costs taxpayers more money, particularly when — as has happened numerous times in the past — the union files grievances over the way this violates the contract. Typically, the borough ends up settling these grievances by having to also pay overtime to the union workers who, under the contract, should have been called in, even though they didn't do any work.Because personnel matters are not public, Borough Manager Ray Lopez has in the past declined to indicate whether any of the managers who are allowing this practice to occur has been disciplined.Lewandowski's analysis of 2008 showed managers in the water department logging twice the over time of union workers — 211.75 hours; sewer department managers logging one and a half times more overtime than union workers and streets department managers logging one and half times more overtime than union workers.Her information packet included a salary list showing that the union's 65 full-time workers and five part-time workers cost taxpayers $2.7 million, with the average salary at $39,016.The highest paid AFSCME union workers on the list, code enforcement officer Dave Borzick, earned $47,382.40 in 2008.Her information also included a list of the borough's 26 managers (not including the police department), who cost taxpayers $1.6 million and earn an average of $61,872.Lopez is the highest-paid of these managers, expected to earn $93,712.50 in 2008.Lopez addressed a figure used during the Nov. 24 budget meeting when Lewandowski said with the lay-offs, the borough would have a manager-to-worker ratio of 2 to 1.Lopez, exempting four employees who are not in the union but are not supervisors, also included the summer workers hired in the summer and the borough's crossing guards in making his calculation and said when those employees are included, the ratio stands at one manager for every six workers."But we don't look at it that way, we look at it as a team," Lopez said.Gibson and Councilman Mike Wenzel were not buying what Lopez was selling."How can you look at it that way?" Gibson said angrily. "We're cutting full-time people and you want to count the seasonal workers who are here for two or three months?""I don't see how you can include the summer help and the crossing guards," seconded Wenzel.Whether the information Lewandowski provided will be taken into account by council members when making their decisions may not be known until tonight, when Garner promised Bobst and Kirchner that council would vote on a number their recommendations.The administration has already begun meeting with the workers who may be laid off in order to ensure that should that final decision be made, they will not appear on the 2009 payroll.One of those recommendations is the elimination of the Economic Development Director position, currently held by Terri Lampe. Wednesday night, Pottstown Memorial Medical Center CEO Steven MacLauchlan and Tim Phelps, executive director of the TriCounty Area Chamber of Commerce, said they would like to talk to the borough about coming up with a partnership that could ensure those functions continue. Both are members of the borough's economic advisory committee and spoke as such.On the subject of funding to the fire companies, Fire Chief Richard Lengel had made several proposals, including having firemen charge for the fire safety inspections they now conduct for free, as a way to prevent the 25 percent funding cut.Bobst said a 2.5 to 3 percent tax hike would be required to make up that funding cut, to which Mayor Sharon Valentine-Thomas responded "I'm advocating for that."Council set Monday, Dec. 29 at 6 p.m. for its annual adjournment meeting, making it the last day the budget can legally be adopted.The next meeting at which the budget will be discussed is tonight at 7 p.m. on the third floor of borough hall. It is the meeting at which the public is permitted to speak.
http://www.pottsmerc.com/articles/2008/12/08/news/srv0000004209158.txt
Tuesday, November 25, 2008
Budget picture in the borough gets worse
Tuesday, November 25, 2008 10:35 AM EST
POTTSTOWN — The news didn't get any better Monday as borough council sat down for its second attempt to decide on a budget that may result in cutting 13 positions and 25 percent of the contribution to fire companies, and a tax hike of 11 percent or more.In fact, the news is so bad it's bad news in the past, present and future.Timothea Kirchner, a consultant with Financial Solutions and the borough's acting finance director, said the results of the 2007 audit show that the borough ended that budget year in a $1.2 million hole.As for the present year, the latest figures indicate 2008 will likely end with a deficit of "between $800,000 and $900,000."
Kirchner said the borough has "enough cash on hand to take care of that deficit," but may not have enough to pay bills until April 2009, when tax revenue begins coming in.As for the fiscal future — specifically 2009 — things don't look any brighter.Although council held off on making a final budget decision Monday evening — the result of which may add $100,000 to the 2009 budget — it did not appear that there would be any last minute good news that would spare them from making any of those decisions.Assistant Borough Manager Jason Bobst told the council that the latest figures show the borough's assessed property value dropping further, $4.8 million to be exact, since the last time they checked it. Changing nothing in the current budget proposal, that loss of value would increase the proposed tax hike from 11.47 percent to 11.53 percent.One piece of good news presented Monday night offset that loss: Bobst said the borough's health care costs are expected to go down in 2009 by $69,000. That alone would bring the proposed tax hike from 11.53 percent down to 10.95 percent.It was not these items on which discussion focused Monday night, rather it was on the $1.1 million in cuts that the administration has proposed and, primarily, on the jobs on the line.Mayor Sharon Valentine-Thomas, who said she was speaking Monday as "a champion for public safety and emergency services," said the proposed cuts to the fire companies would "jeopardize the safety of the borough and the integrity of its buildings."Valentine-Thomas said a series of cuts suggested by Fire Chief Richard Lengel and a .402598 millage increase to the fire tax could help to close the gap.That proposed fire tax increase would add $20 to the $65 a homeowner whose home is assessed at $50,000 now pays toward fire protection, said Bobst.Valentine-Thomas added, "I don't believe putting ourselves in jeopardy for downtown buildings having more fires with less coverage is a good revitalization plan."On that subject, Councilman Stephen Toroney went to bat for Economic Development Director Terri Lampe, whose position is set to be cut under the current proposals. He pointed out that with her gone, economic development will "fall on the shoulders of people not trained to do economic development."Council Vice President Greg Berry, who also chairs the council's finance committee, said Pottstown is one of only two municipalities in Montgomery County employing an economic development director, the other one being Lower Merion. "So there are other municipalities in Montgomery County doing a much better job at revitalization without a director," Berry said.But Councilman Jody Rhoads said he and other council members had received letters from The Hill School and Pottstown Memorial Medical Center "concerned about us getting rid of the director we have in town. There seems to be a lot of concern from some big players in town."He suggested the mayor and council members forgo their salaries for 2009 as a symbolic act, to which Toroney said, "I have no problem with that."Bobst said that would save the budget $7,600.Councilman Mark Gibson said the budget could save $77,000 by dropping three grants that require matching funds from the borough. The grants he identified are the homeownership initiative, which costs the borough $30,000 and gives it access to $270,000; a $15,000 match for an airport project that gives the borough access to $585,000; and the $32,500 the borough must provide to get another $32,500 from the state to hire a consultant to get its finances in order.Borough Council President David Garner said this last grant "is meant to help us with the very type of issues we're dealing with right now. I think we absolutely need to pursue that project."One thing that may no longer be pursued is the continuation of Pottstown Community Television. Bobst explained that since 2007, PCTV has been a drain rather than a boon to the general fund, requiring between $150,000 to $200,000 a year.Kirchner said that in 2008 she anticipates PCTV will again cost the general fund "six figures." She said those costs "have to do with the debt on the equipment that the borough recently purchased."That lead Garner to note, "Perhaps PCTV will be a casualty of this budget."The human casualties of the budget proposal were on hand in force.Karen Lewandowski, president of unit 2784 of the American Federation of State, County and Municipal Employees, introduced the council to each of the union members who would be laid off under the current proposal, asking all eight to stand. They ranged in duties and service with the borough from Kathie Minotto, a payroll clerk with the borough for 28 years, to Greg Dopwell, a streets worker with the borough for less than a year."I just wanted you to look them in the eye," she said.Lewandowski also noted that with the elimination of the union positions, the borough's ratio of managers to employees would drop to one manager for every 2.4 employees."You're telling us to suck it up. Well I'll suck it up when that ratio's lowered," she said.Minotto said, "Many times we have brought issues to the manager and the assistant manager about excessive spending and reported unnecessary overtime by management positions, but it was like talking to a wall."She offered the example of a manager at the borough garage, who she did not name, "who goes on vacation five times a year and one manager gets one hour of double-time every morning during those five weeks to come and open the garage when there are already three managers there anyway."Jo-Ann Kelley, whose husband works in the streets department, also told council that it should "keep union workers and cut redundant managers and supervisors."Gibson voiced similar concerns when he questioned why the water plant has three supervisors working during the day and none at night, causing overtime to be incurred every time one has to come in to deal with an issue in the evening.Borough Manager Ray Lopez said that matter is being addressed."I asked that question four of five months ago and I didn't get a straight answer then, and I don't think I'm getting a straight answer now," Gibson said.Dopwell told the council he left "a good job" to come work for the borough "and I have to wonder why you hired me if I'm getting cut a couple of months later."He said his last day could be as early as Dec. 19, "right before Christmas, and I haven't even done anything for my four children yet. I'm real upset." He then wished all of the council members a "Happy Thanksgiving."It remains unclear if the appeal will be effective.Berry replied, "It would be much easier for us to say there will be no cuts, but we can't ignore the fiscal disarray the borough has been in for the past several years, and we are bringing these fiscally responsible issues to the table, in public."Toroney said, "These are not just positions, they're people." He noted that none of those whose positions may be cut were alerted ahead of time and found out in the public meeting."We cannot look at an individual person. We have to look at the positions themselves," Berry said. "I cannot see what other way you could do it in a public setting, unless you want to continue, as in years past, doing it all behind closed doors in the back room."Garner said he was impressed by the proposal management brought to council. "I think we can go deeper."He noted that much of the focus of council's questions focused "on the little things and we have a huge, huge deficit."When budgeting began, the gap was $1.9 million and would have required a 30 percent tax hike to close it without cuts. If the proposals discussed Monday are enacted, that shortfall will drop to just under $700,000."Every year we ask, 'What will it take to turn the borough around?' and raising taxes every year is not the answer," Garner said. "Even with these cuts, there will be a tax increase."Garner also said he would like to consider a restructuring of the fire department. "Not just cuts, restructuring," he said. "I think it's a luxury to have four departments and 12 paid drivers."The suggestions he asked Bobst to investigate in that area are not completed and have not yet been made public."I do not want to use trite expressions, but things have to change," said Garner. "I've lived here all my life and every year it has just been 'suck it up and pass on the tax increase.' It has to stop."
http://www.pottsmerc.com/articles/2008/11/25/news/srv0000004129030.txt
POTTSTOWN — The news didn't get any better Monday as borough council sat down for its second attempt to decide on a budget that may result in cutting 13 positions and 25 percent of the contribution to fire companies, and a tax hike of 11 percent or more.In fact, the news is so bad it's bad news in the past, present and future.Timothea Kirchner, a consultant with Financial Solutions and the borough's acting finance director, said the results of the 2007 audit show that the borough ended that budget year in a $1.2 million hole.As for the present year, the latest figures indicate 2008 will likely end with a deficit of "between $800,000 and $900,000."
Kirchner said the borough has "enough cash on hand to take care of that deficit," but may not have enough to pay bills until April 2009, when tax revenue begins coming in.As for the fiscal future — specifically 2009 — things don't look any brighter.Although council held off on making a final budget decision Monday evening — the result of which may add $100,000 to the 2009 budget — it did not appear that there would be any last minute good news that would spare them from making any of those decisions.Assistant Borough Manager Jason Bobst told the council that the latest figures show the borough's assessed property value dropping further, $4.8 million to be exact, since the last time they checked it. Changing nothing in the current budget proposal, that loss of value would increase the proposed tax hike from 11.47 percent to 11.53 percent.One piece of good news presented Monday night offset that loss: Bobst said the borough's health care costs are expected to go down in 2009 by $69,000. That alone would bring the proposed tax hike from 11.53 percent down to 10.95 percent.It was not these items on which discussion focused Monday night, rather it was on the $1.1 million in cuts that the administration has proposed and, primarily, on the jobs on the line.Mayor Sharon Valentine-Thomas, who said she was speaking Monday as "a champion for public safety and emergency services," said the proposed cuts to the fire companies would "jeopardize the safety of the borough and the integrity of its buildings."Valentine-Thomas said a series of cuts suggested by Fire Chief Richard Lengel and a .402598 millage increase to the fire tax could help to close the gap.That proposed fire tax increase would add $20 to the $65 a homeowner whose home is assessed at $50,000 now pays toward fire protection, said Bobst.Valentine-Thomas added, "I don't believe putting ourselves in jeopardy for downtown buildings having more fires with less coverage is a good revitalization plan."On that subject, Councilman Stephen Toroney went to bat for Economic Development Director Terri Lampe, whose position is set to be cut under the current proposals. He pointed out that with her gone, economic development will "fall on the shoulders of people not trained to do economic development."Council Vice President Greg Berry, who also chairs the council's finance committee, said Pottstown is one of only two municipalities in Montgomery County employing an economic development director, the other one being Lower Merion. "So there are other municipalities in Montgomery County doing a much better job at revitalization without a director," Berry said.But Councilman Jody Rhoads said he and other council members had received letters from The Hill School and Pottstown Memorial Medical Center "concerned about us getting rid of the director we have in town. There seems to be a lot of concern from some big players in town."He suggested the mayor and council members forgo their salaries for 2009 as a symbolic act, to which Toroney said, "I have no problem with that."Bobst said that would save the budget $7,600.Councilman Mark Gibson said the budget could save $77,000 by dropping three grants that require matching funds from the borough. The grants he identified are the homeownership initiative, which costs the borough $30,000 and gives it access to $270,000; a $15,000 match for an airport project that gives the borough access to $585,000; and the $32,500 the borough must provide to get another $32,500 from the state to hire a consultant to get its finances in order.Borough Council President David Garner said this last grant "is meant to help us with the very type of issues we're dealing with right now. I think we absolutely need to pursue that project."One thing that may no longer be pursued is the continuation of Pottstown Community Television. Bobst explained that since 2007, PCTV has been a drain rather than a boon to the general fund, requiring between $150,000 to $200,000 a year.Kirchner said that in 2008 she anticipates PCTV will again cost the general fund "six figures." She said those costs "have to do with the debt on the equipment that the borough recently purchased."That lead Garner to note, "Perhaps PCTV will be a casualty of this budget."The human casualties of the budget proposal were on hand in force.Karen Lewandowski, president of unit 2784 of the American Federation of State, County and Municipal Employees, introduced the council to each of the union members who would be laid off under the current proposal, asking all eight to stand. They ranged in duties and service with the borough from Kathie Minotto, a payroll clerk with the borough for 28 years, to Greg Dopwell, a streets worker with the borough for less than a year."I just wanted you to look them in the eye," she said.Lewandowski also noted that with the elimination of the union positions, the borough's ratio of managers to employees would drop to one manager for every 2.4 employees."You're telling us to suck it up. Well I'll suck it up when that ratio's lowered," she said.Minotto said, "Many times we have brought issues to the manager and the assistant manager about excessive spending and reported unnecessary overtime by management positions, but it was like talking to a wall."She offered the example of a manager at the borough garage, who she did not name, "who goes on vacation five times a year and one manager gets one hour of double-time every morning during those five weeks to come and open the garage when there are already three managers there anyway."Jo-Ann Kelley, whose husband works in the streets department, also told council that it should "keep union workers and cut redundant managers and supervisors."Gibson voiced similar concerns when he questioned why the water plant has three supervisors working during the day and none at night, causing overtime to be incurred every time one has to come in to deal with an issue in the evening.Borough Manager Ray Lopez said that matter is being addressed."I asked that question four of five months ago and I didn't get a straight answer then, and I don't think I'm getting a straight answer now," Gibson said.Dopwell told the council he left "a good job" to come work for the borough "and I have to wonder why you hired me if I'm getting cut a couple of months later."He said his last day could be as early as Dec. 19, "right before Christmas, and I haven't even done anything for my four children yet. I'm real upset." He then wished all of the council members a "Happy Thanksgiving."It remains unclear if the appeal will be effective.Berry replied, "It would be much easier for us to say there will be no cuts, but we can't ignore the fiscal disarray the borough has been in for the past several years, and we are bringing these fiscally responsible issues to the table, in public."Toroney said, "These are not just positions, they're people." He noted that none of those whose positions may be cut were alerted ahead of time and found out in the public meeting."We cannot look at an individual person. We have to look at the positions themselves," Berry said. "I cannot see what other way you could do it in a public setting, unless you want to continue, as in years past, doing it all behind closed doors in the back room."Garner said he was impressed by the proposal management brought to council. "I think we can go deeper."He noted that much of the focus of council's questions focused "on the little things and we have a huge, huge deficit."When budgeting began, the gap was $1.9 million and would have required a 30 percent tax hike to close it without cuts. If the proposals discussed Monday are enacted, that shortfall will drop to just under $700,000."Every year we ask, 'What will it take to turn the borough around?' and raising taxes every year is not the answer," Garner said. "Even with these cuts, there will be a tax increase."Garner also said he would like to consider a restructuring of the fire department. "Not just cuts, restructuring," he said. "I think it's a luxury to have four departments and 12 paid drivers."The suggestions he asked Bobst to investigate in that area are not completed and have not yet been made public."I do not want to use trite expressions, but things have to change," said Garner. "I've lived here all my life and every year it has just been 'suck it up and pass on the tax increase.' It has to stop."
http://www.pottsmerc.com/articles/2008/11/25/news/srv0000004129030.txt
Sunday, November 23, 2008
Pottstown asks borough authority for car loan
Sunday, November 23, 2008 6:20 AM EST
POTTSTOWN — Not everyone can buy a new car, or maybe several new cars, without knowing where the money is coming from, but not everyone is the borough of Pottstown.According to information made public at Tuesday night's Borough Authority meeting, when the borough formally asked the Authority for a $686,000 loan, that is exactly what has happened.Assistant Borough Manager Jason Bobst and Timothea Kirchner, a financial consultant and acting finance director, laid the scenario out for the borough authority board members.
In August, Borough Council agreed to proceed on a number of capital projects, including a new Chevy Tahoe for Police Chief Mark Flanders and several new patrol cars.These vehicles, along with three new cars for the code enforcement department and new equipment for Pottstown Community Television and equipment for borough hall, were to be paid for through a "lease purchase" agreement with a firm named Municipal Services Group, identified by former finance director Robert Armelin.The cars and equipment were purchased, but the financial deal was never finalized, Bobst said.That's when the trouble began.Because the audit of the 2007 books was (and is) still not complete "and that caused (Municipal Services Group) to be skittish about loaning money to the borough," Kirchner said.The result was the potential for the borough to pay 4 percent interest on themoney, rather than the 2 percent originally proposed."The borough purchased the equipment in anticipation of the financing going forward," Kirchner said.Given that the borough's other option is to issue a general obligation bond, an expensive process for less than $1 million, Kirchner and Bobst said they felt obligated to explore a less expensive option.In response to questions from the authority, Kirchner made it clear that it is too late to give the equipment back and not spend the money."It's not the way I would recommend doing business in the future, but it's the situation we're in now and it keeps the money in the borough," Kirchner said.The borough offered to pay the Authority 3 percent over the five-year course of the loan.Borough Authority Chairman Ronald Downie thanked the staff for at least asking first."I appreciate that at least the borough is not going ahead and doing it without asking us," Downie said.Kirchner said although she and Bobst are attempting to clean up the borough and Authority budgets, as well as previous bad practices, she nevertheless recommended the move."I know you've heard promises in the past, but we're trying to change things going forward," she said."But how many finance directors do we have to go through?" asked Downie. "Every problem we run up against each time is essentially finance.""It's true," Bobst said, "that in years past an agreement to do things like this has been verbal, or never been offered at all, and that the borough has never paid the authority back. But this issue caught us off-guard."Off-guard or not, the Authority board did not appear anxious to agree to the deal."Our fiduciary responsibility is to invest our money in doing capital projects that enhance services for our ratepayers," Downie said. "I don't think we should be in the position of lending money."Authority member Don Read agreed, saying "my threshold question is how does this benefit our ratepayers? I would like to stay as a water and sewer authority only."Although the water and sewer funds combined have about $2.5 million in reserve, Downie worried that loaning some of that money out might crimp the authority's ability to continue with its capital budget program."I think that $600,000 would be better utilized on authority directed projects," Downie said. "I would rather use it to put solar panels up at the water plant because it would save our ratepayers money."Referring to the budget discussion that had just occurred, Downie said "why are we looking at increases for our ratepayers, would we loan money out for things that are not giving them a return?"David Busch, a financial expert with the authority's engineering firm, BCM, said there would be a return — $60,000 in interest."It's our view that we should strike the best deal we can on behalf of the community," Kirchner said.But Downie pointed out that the authority serves customers in the surrounding communities as well as just Pottstown. "We have ratepayers outside Pottstown and we are obligated to do what is best for our customer base," he said.Authority member Tom Carroll said he is reluctant because PCTV is not currently contributing to the general fund, but is a drain upon it, and he does not believe money should be invested in it."My biggest problem is how do we hold PCTV accountable to make money," Carroll said."I don't want the Authority to be the oversight committee for borough operations," Read replied.Referring to the mortgage meltdown fueled, in part by subprime mortgages, Carroll replied, "If you look closely at how some of the money that was lent to people in this country was spent, you might come to the conclusion that we should not have lent them money or we might not all be in the fix we're in."In the end, the Authority made no decision, agreeing to table the matter until more information on the proposal is gathered.
http://www.pottsmerc.com/articles/2008/11/23/news/srv0000004087962.txt
POTTSTOWN — Not everyone can buy a new car, or maybe several new cars, without knowing where the money is coming from, but not everyone is the borough of Pottstown.According to information made public at Tuesday night's Borough Authority meeting, when the borough formally asked the Authority for a $686,000 loan, that is exactly what has happened.Assistant Borough Manager Jason Bobst and Timothea Kirchner, a financial consultant and acting finance director, laid the scenario out for the borough authority board members.
In August, Borough Council agreed to proceed on a number of capital projects, including a new Chevy Tahoe for Police Chief Mark Flanders and several new patrol cars.These vehicles, along with three new cars for the code enforcement department and new equipment for Pottstown Community Television and equipment for borough hall, were to be paid for through a "lease purchase" agreement with a firm named Municipal Services Group, identified by former finance director Robert Armelin.The cars and equipment were purchased, but the financial deal was never finalized, Bobst said.That's when the trouble began.Because the audit of the 2007 books was (and is) still not complete "and that caused (Municipal Services Group) to be skittish about loaning money to the borough," Kirchner said.The result was the potential for the borough to pay 4 percent interest on themoney, rather than the 2 percent originally proposed."The borough purchased the equipment in anticipation of the financing going forward," Kirchner said.Given that the borough's other option is to issue a general obligation bond, an expensive process for less than $1 million, Kirchner and Bobst said they felt obligated to explore a less expensive option.In response to questions from the authority, Kirchner made it clear that it is too late to give the equipment back and not spend the money."It's not the way I would recommend doing business in the future, but it's the situation we're in now and it keeps the money in the borough," Kirchner said.The borough offered to pay the Authority 3 percent over the five-year course of the loan.Borough Authority Chairman Ronald Downie thanked the staff for at least asking first."I appreciate that at least the borough is not going ahead and doing it without asking us," Downie said.Kirchner said although she and Bobst are attempting to clean up the borough and Authority budgets, as well as previous bad practices, she nevertheless recommended the move."I know you've heard promises in the past, but we're trying to change things going forward," she said."But how many finance directors do we have to go through?" asked Downie. "Every problem we run up against each time is essentially finance.""It's true," Bobst said, "that in years past an agreement to do things like this has been verbal, or never been offered at all, and that the borough has never paid the authority back. But this issue caught us off-guard."Off-guard or not, the Authority board did not appear anxious to agree to the deal."Our fiduciary responsibility is to invest our money in doing capital projects that enhance services for our ratepayers," Downie said. "I don't think we should be in the position of lending money."Authority member Don Read agreed, saying "my threshold question is how does this benefit our ratepayers? I would like to stay as a water and sewer authority only."Although the water and sewer funds combined have about $2.5 million in reserve, Downie worried that loaning some of that money out might crimp the authority's ability to continue with its capital budget program."I think that $600,000 would be better utilized on authority directed projects," Downie said. "I would rather use it to put solar panels up at the water plant because it would save our ratepayers money."Referring to the budget discussion that had just occurred, Downie said "why are we looking at increases for our ratepayers, would we loan money out for things that are not giving them a return?"David Busch, a financial expert with the authority's engineering firm, BCM, said there would be a return — $60,000 in interest."It's our view that we should strike the best deal we can on behalf of the community," Kirchner said.But Downie pointed out that the authority serves customers in the surrounding communities as well as just Pottstown. "We have ratepayers outside Pottstown and we are obligated to do what is best for our customer base," he said.Authority member Tom Carroll said he is reluctant because PCTV is not currently contributing to the general fund, but is a drain upon it, and he does not believe money should be invested in it."My biggest problem is how do we hold PCTV accountable to make money," Carroll said."I don't want the Authority to be the oversight committee for borough operations," Read replied.Referring to the mortgage meltdown fueled, in part by subprime mortgages, Carroll replied, "If you look closely at how some of the money that was lent to people in this country was spent, you might come to the conclusion that we should not have lent them money or we might not all be in the fix we're in."In the end, the Authority made no decision, agreeing to table the matter until more information on the proposal is gathered.
http://www.pottsmerc.com/articles/2008/11/23/news/srv0000004087962.txt
Wednesday, November 12, 2008
'09 budget wrestles with $1.9M shortfall
Wednesday, November 12, 2008 9:15 AM EST
By Evan Brandt, ebrandt@pottsmerc.com
POTTSTOWN — Property taxes would go up more than 11 percent next year; 13 borough employees would lose their jobs, and all four fire companies would have their funding cut by 25 percent if the preliminary budget presented to Borough Council Monday night were to be enacted as is.The budget presented, however, is preliminary and unlikely to be adopted without change. What remains unclear is what changes may be made, seeing as the members of Borough Council had few specific comments about the proposal during the public meeting.One thing was clear to one member of council."It's very clear to me that the party in borough hall is over," said council Vice President Greg Berry, who also chairs the finance committee.
It was a sober presentation made two hours into the meeting before a standing-room only audience that had turned out to voice support for firefighters and borough workers, among other subjects.Despite waiting two hours to get answers and, in some cases, their jobs on the line, the facts presented quieted any audible discord.The presentation was made primarily by Timothea Kirchner, a consultant serving as the interim borough finance director."I know I'm not telling any of you anything new when I say that this is a challenging time for all municipalities," Kirchner said. "In Pottstown, you have significant challenges with a good economy; as it is, we are all going to have to make extraordinary decisions just about everywhere."When the management team sat down to put the budget together, it was quickly clear that Pottstown would face a $1.9 million budget gap in 2009 if cuts were not made and revenues not raised, she said.Closing that gap with a tax hike would have raised property taxes by 30 percent, Kirchner said, and the managers were unwilling to bring that to the council.There are a number of contributing factors of the borough's budget woes. The total assessed value of the borough's property has dropped and is expected to continue to do so in 2009.Further, she said, the 2008 budget was built on the assumption that 97 percent of the borough's property taxes would be collected, despite the history of the borough's collection rate being closer to 93 percent. That alone has resulted in a $300,000 gap in budgeted property tax revenues. Add to that a $275,000 shortfall in budget real estate transfer taxes and even the loss of revenues from PCTV.On the expense side of the equation, the borough faces a contracted 3.5 percent salary hike for the borough's union employees and is estimating an increase for police, who are currently in contract negotiations with the borough. Also, health care costs are expected to rise by 15 percent.This proposed budget does not include any salary increases for management and no increase in worker compensation insurance.Faced with these realities, the borough's management team made a number of recommendations, including the elimination of 13 positions -- five management positions and eight union posts. Included in the proposed management cuts are the code enforcement director, currently vacant; the economic development director, a post currently held by Terri Lampe; the streets supervisor, currently held by Al Shaulis; a parks maintenance supervisor and a projects coordinator.Cuts to union positions include an engineering inspector, service worker, police secretary, part-time parking enforcement officer, a codes enforcement officer, a full-time and part-time janitor, and an accounts clerk in the finance office.The borough could save $35,000 by contracting out for janitorial services and another $40,000 by contracting our for payroll services, Kirchner said.Other savings could be realized by eliminating borrowing for a proposed airport hangar project, cutting the night cleaning service, and enacting a 25 percent cut to Pottstown's four fire companies.The proposal also calls for using $177,000 of the $250,000 Pottstown recently received as part of its settlement with Waste Management over landfill leachate to close part of the gap in the general fund budget, the largest portion of the budget and the portion with the largest gap.With those changes, the budget gap shrinks from $1.9 million to $692,357.Of that gap, $430,309 comes from the general fund, Kirchner said. The fire budget makes up another $162,030 of that shortfall and with a debt service gap of $140,423 making up the third largest portion.Of the general fund's expenses, 55 percent is the police department and the other 19 percent the fire budget.Of note is the parks and recreation department, whose budget remained within its revenues with no gap under the proposal for 2009.Should Borough Council choose to adopt this budget as presented, it would result in a millage increase of 0.922864 or a property tax hike of 11.47 percent, Kirchner said.According to information provided by Kirchner, this increase would mean a $69.21 increase in 2009 over this year's bill of $603.63 for a home assessed at $75,000, just below the borough's median property assessment."We tried to keep the tax increase as low as possible," said Assistant Borough Manager Jason Bobst.With the council asking no specific questions, Bobst asked that members send him any suggestions about changes they would like to see in the proposal."We need to know what areas are sacred and what you don't want to cut, or what you would like to see cut more," Bobst said.While council did not ask questions about the budget, they did manage to get in a little sniping.Councilman Stephen Toroney, vice president of the previous borough council, took exception to Berry's comment about "the party in borough hall.""I guess I must have been around during the party, but the managers who were here and the council and I took our job seriously. It was not about play time," Toroney said.He said the economy has taken a serious turn and that it was this turn of events that is responsible for much of the pain outlined in the budget presentation."I stand by my comment," Berry replied."We're all adults here and I am sick of this beating up on each other," said Councilman Jody Rhoads. "We all have to work together."Councilman Mark Gibson agreed. "We're supposed to work as a whole, Democrats and Republicans, and these kind of comments aren't helping people," Gibson said.Looking at Berry, he added, "We're so much more efficient now than we were in the prior two years, but right now you're starting to sound like Jack Wolf" in reference to the previous borough council president.Borough Council President David Garner intervened and said, "Hopefully, we're all staying focused on the task at hand."Berry praised the clarity of Kirchner's presentation. "This is something that has not been seen in this borough in a long time," he said.What also has yet to be seen is when the next budget meeting will be held.Apparently unprepared that another budget meeting must be scheduled, the council members were unable to settle on a date.
By Evan Brandt, ebrandt@pottsmerc.com
POTTSTOWN — Property taxes would go up more than 11 percent next year; 13 borough employees would lose their jobs, and all four fire companies would have their funding cut by 25 percent if the preliminary budget presented to Borough Council Monday night were to be enacted as is.The budget presented, however, is preliminary and unlikely to be adopted without change. What remains unclear is what changes may be made, seeing as the members of Borough Council had few specific comments about the proposal during the public meeting.One thing was clear to one member of council."It's very clear to me that the party in borough hall is over," said council Vice President Greg Berry, who also chairs the finance committee.
It was a sober presentation made two hours into the meeting before a standing-room only audience that had turned out to voice support for firefighters and borough workers, among other subjects.Despite waiting two hours to get answers and, in some cases, their jobs on the line, the facts presented quieted any audible discord.The presentation was made primarily by Timothea Kirchner, a consultant serving as the interim borough finance director."I know I'm not telling any of you anything new when I say that this is a challenging time for all municipalities," Kirchner said. "In Pottstown, you have significant challenges with a good economy; as it is, we are all going to have to make extraordinary decisions just about everywhere."When the management team sat down to put the budget together, it was quickly clear that Pottstown would face a $1.9 million budget gap in 2009 if cuts were not made and revenues not raised, she said.Closing that gap with a tax hike would have raised property taxes by 30 percent, Kirchner said, and the managers were unwilling to bring that to the council.There are a number of contributing factors of the borough's budget woes. The total assessed value of the borough's property has dropped and is expected to continue to do so in 2009.Further, she said, the 2008 budget was built on the assumption that 97 percent of the borough's property taxes would be collected, despite the history of the borough's collection rate being closer to 93 percent. That alone has resulted in a $300,000 gap in budgeted property tax revenues. Add to that a $275,000 shortfall in budget real estate transfer taxes and even the loss of revenues from PCTV.On the expense side of the equation, the borough faces a contracted 3.5 percent salary hike for the borough's union employees and is estimating an increase for police, who are currently in contract negotiations with the borough. Also, health care costs are expected to rise by 15 percent.This proposed budget does not include any salary increases for management and no increase in worker compensation insurance.Faced with these realities, the borough's management team made a number of recommendations, including the elimination of 13 positions -- five management positions and eight union posts. Included in the proposed management cuts are the code enforcement director, currently vacant; the economic development director, a post currently held by Terri Lampe; the streets supervisor, currently held by Al Shaulis; a parks maintenance supervisor and a projects coordinator.Cuts to union positions include an engineering inspector, service worker, police secretary, part-time parking enforcement officer, a codes enforcement officer, a full-time and part-time janitor, and an accounts clerk in the finance office.The borough could save $35,000 by contracting out for janitorial services and another $40,000 by contracting our for payroll services, Kirchner said.Other savings could be realized by eliminating borrowing for a proposed airport hangar project, cutting the night cleaning service, and enacting a 25 percent cut to Pottstown's four fire companies.The proposal also calls for using $177,000 of the $250,000 Pottstown recently received as part of its settlement with Waste Management over landfill leachate to close part of the gap in the general fund budget, the largest portion of the budget and the portion with the largest gap.With those changes, the budget gap shrinks from $1.9 million to $692,357.Of that gap, $430,309 comes from the general fund, Kirchner said. The fire budget makes up another $162,030 of that shortfall and with a debt service gap of $140,423 making up the third largest portion.Of the general fund's expenses, 55 percent is the police department and the other 19 percent the fire budget.Of note is the parks and recreation department, whose budget remained within its revenues with no gap under the proposal for 2009.Should Borough Council choose to adopt this budget as presented, it would result in a millage increase of 0.922864 or a property tax hike of 11.47 percent, Kirchner said.According to information provided by Kirchner, this increase would mean a $69.21 increase in 2009 over this year's bill of $603.63 for a home assessed at $75,000, just below the borough's median property assessment."We tried to keep the tax increase as low as possible," said Assistant Borough Manager Jason Bobst.With the council asking no specific questions, Bobst asked that members send him any suggestions about changes they would like to see in the proposal."We need to know what areas are sacred and what you don't want to cut, or what you would like to see cut more," Bobst said.While council did not ask questions about the budget, they did manage to get in a little sniping.Councilman Stephen Toroney, vice president of the previous borough council, took exception to Berry's comment about "the party in borough hall.""I guess I must have been around during the party, but the managers who were here and the council and I took our job seriously. It was not about play time," Toroney said.He said the economy has taken a serious turn and that it was this turn of events that is responsible for much of the pain outlined in the budget presentation."I stand by my comment," Berry replied."We're all adults here and I am sick of this beating up on each other," said Councilman Jody Rhoads. "We all have to work together."Councilman Mark Gibson agreed. "We're supposed to work as a whole, Democrats and Republicans, and these kind of comments aren't helping people," Gibson said.Looking at Berry, he added, "We're so much more efficient now than we were in the prior two years, but right now you're starting to sound like Jack Wolf" in reference to the previous borough council president.Borough Council President David Garner intervened and said, "Hopefully, we're all staying focused on the task at hand."Berry praised the clarity of Kirchner's presentation. "This is something that has not been seen in this borough in a long time," he said.What also has yet to be seen is when the next budget meeting will be held.Apparently unprepared that another budget meeting must be scheduled, the council members were unable to settle on a date.
Trash bill will jump by only $5
Wednesday, November 12, 2008 7:48 AM EST
POTTSTOWN — Believe it or not, there is some good news to come out of the borough's budget deliberations.Considering the increases in fuel costs predicted for the next three years; the increases in landfill tipping fees and all other costs of doing business, Borough Council Monday adopted a new three-year contract with the current trash hauler, J.P. Mascaro, that will raise residents' trash bills by exactly $5.A number of alternates were built into the bid to allow for a number of potentially money-saving possibilities, Public Works Director Doug Yerger explained to council Monday night. Not the least of these is a monthly pickup for yard waste that will pull grass clippings, hedge trimmings and brush out of the waste stream and thus off the scale at the landfill, lowering tipping fee totals.Another way to keep those numbers down is increased recycling and the new 65-gallon recycling containers that are to be issued to residents. This will help increase recycling and reduce the trash that goes to the landfill at a higher cost, said Councilman Stephen Toroney, a longtime member of the trash committee.
The larger recycling containers will allow all recycling, paper, plastic and metal, to be deposited in one place, said Yerger."This is a big opportunity to save significant dollars," Yerger said of the new recycling effort.The contract will continue to provide twice-a-week trash pickup as well as the current sticker system for bulk pickup."We think the people who throw away bulk items should pay for it," said Toroney. "It only costs $15 for small items and $25 for white items. You try getting someone to cart something away for $25 these days.""This could have been worse," Yerger said of the bid numbers. "I was very worried about the high cost of fuel."Councilman Jody Rhoads, who cast the only vote against the contract, said charging everyone the same for trash pickup continues to have those who throw out small amounts subsidizing the cost of those who generate more trash."Perhaps the poor, the low-volume users, the elderly, the retired and our citizens in general could combine their concerns about the inequality of the trash situation into one loud scream that would penetrate the eardrums of those who have continually ignored the pleas for fairness," Rhoads said."Saying you are getting a good deal since you can put out all the trash you want is just saying increase our tonnage and increase our bill," he said."This is part of living in a community, of living in a society," Toroney said. "I send no kids to the schools, but I pay my school taxes proudly.""You complain you don't want to be a part of this, then go somewhere else," he added.Council President David Garner agreed, saying, "The numbers we received are amazing under the circumstances. I think having a $5 fixed increase for the next three years is fairly incredible," he said. "I think Mr. Yerger did a great job in breaking this down into its component parts to make it attractive to the bidder.""I hope recycling will reduce the tonnage in the trash system," Garner added.The borough may also look at ways to limit the number of trash containers residents can put out."As a society, we throw out far too much," he said.
http://www.pottsmerc.com/articles/2008/11/12/news/srv0000004024469.txt
POTTSTOWN — Believe it or not, there is some good news to come out of the borough's budget deliberations.Considering the increases in fuel costs predicted for the next three years; the increases in landfill tipping fees and all other costs of doing business, Borough Council Monday adopted a new three-year contract with the current trash hauler, J.P. Mascaro, that will raise residents' trash bills by exactly $5.A number of alternates were built into the bid to allow for a number of potentially money-saving possibilities, Public Works Director Doug Yerger explained to council Monday night. Not the least of these is a monthly pickup for yard waste that will pull grass clippings, hedge trimmings and brush out of the waste stream and thus off the scale at the landfill, lowering tipping fee totals.Another way to keep those numbers down is increased recycling and the new 65-gallon recycling containers that are to be issued to residents. This will help increase recycling and reduce the trash that goes to the landfill at a higher cost, said Councilman Stephen Toroney, a longtime member of the trash committee.
The larger recycling containers will allow all recycling, paper, plastic and metal, to be deposited in one place, said Yerger."This is a big opportunity to save significant dollars," Yerger said of the new recycling effort.The contract will continue to provide twice-a-week trash pickup as well as the current sticker system for bulk pickup."We think the people who throw away bulk items should pay for it," said Toroney. "It only costs $15 for small items and $25 for white items. You try getting someone to cart something away for $25 these days.""This could have been worse," Yerger said of the bid numbers. "I was very worried about the high cost of fuel."Councilman Jody Rhoads, who cast the only vote against the contract, said charging everyone the same for trash pickup continues to have those who throw out small amounts subsidizing the cost of those who generate more trash."Perhaps the poor, the low-volume users, the elderly, the retired and our citizens in general could combine their concerns about the inequality of the trash situation into one loud scream that would penetrate the eardrums of those who have continually ignored the pleas for fairness," Rhoads said."Saying you are getting a good deal since you can put out all the trash you want is just saying increase our tonnage and increase our bill," he said."This is part of living in a community, of living in a society," Toroney said. "I send no kids to the schools, but I pay my school taxes proudly.""You complain you don't want to be a part of this, then go somewhere else," he added.Council President David Garner agreed, saying, "The numbers we received are amazing under the circumstances. I think having a $5 fixed increase for the next three years is fairly incredible," he said. "I think Mr. Yerger did a great job in breaking this down into its component parts to make it attractive to the bidder.""I hope recycling will reduce the tonnage in the trash system," Garner added.The borough may also look at ways to limit the number of trash containers residents can put out."As a society, we throw out far too much," he said.
http://www.pottsmerc.com/articles/2008/11/12/news/srv0000004024469.txt
Tuesday, November 11, 2008
Fire companies out in full force against cuts
Tuesday, November 11, 2008 3:56 PM EST
By Michael Hays, mhays@pottsmerc.com
POTTSTOWN — Flanked by dozens of emergency responders, a handful of residents implored Borough Council to rethink a sizable budget cut to the four local fire companies."What can we do as a community to help the fire houses without them taking a 25 percent cut?" asked Johnny Corson. "These gentlemen and these ladies deserve a chance not to be shut down."Corson, the vice president of the Pottstown chapter of the NAACP, was one of four people to address this issue during the public comment portion of Monday's council meeting. Borough officials are examining the 2009 budget, which has not yet been approved. Pottstown could face a revenue shortfall of at least $300,000, which has necessitated a search for areas to trim.The borough's four volunteer fire companies — Good Will Steam, Phillies, Empire Hook & Ladder and North End — are each allotted $185,000 annually, according to Mike Campeggio.
Campeggio, the Good Will chief, spoke on behalf of all local companies Monday night."If enacted, this budgetary reduction will adversely affect the emergency response capabilities of the department and will most definitely place borough residents at risk," he said.For the past several years, each company has requested $235,000 apiece, according to Campeggio. He said that amount is based on actual expenses incurred for salaries, fuel, utilities and vehicle maintenance."In actuality, the companies are starting each calendar year with only 78 percent of its actual projected operating budget," he said.One resident questioned where Pottstown spends its taxpayer dollars. The 2008 budget was $45 million.Phillip Thees brought up the fact that borough officials "found" $2 million in a forgotten account several months back.Referencing January's devastating fire on the 200 block of High Street, Thees said the four companies must be protected."We in this town need to protect and preserve our entire fire department — all four fire houses," he said.Council members should look to economize in other departments, too, Thees added.Resident Bruce Madara said Pottstown manages to "cut things" and still raise taxes. His remarks came while he criticized some borough officials for their attitudes toward citizens who ask questions.After the public was heard, Mayor Sharon Valentine-Thomas read from her report. Engaging in public safety is no simple task, she began. "We can't ever underestimate or take for granted the service you provide," Valentine-Thomas said.Although Pottstown has a fire department, it relies on both volunteers and paid firefighters. According to Campeggio, the borough fire department has 12 career firefighters and a chief (Richard Lengel). Approximately 25 trained volunteers supplement this staff.All four stations operate 24 hours a day, seven days a week, Campeggio said.As for financial accountability, the Good Will representative said all four companies are required to submit an itemized annual budget to Lengel.A bill passed by the Pennsylvania General Assembly addresses this area. Act 8 of 2008 requires local borough officials to annually evaluate their need for emergency services and determine the appropriate level of funding. Part of the law states that the itemized accounting must be presented before any additional funding can be considered by a municipality.The revenue shortfall going into 2009 came about through two fairly recent discoveries. In July, former borough Finance Director Robert Armelin predicted the borough would end the year with a shortfall of $200,000. Last month, a financial consultant hired by the borough to help prepare its budget in the wake of Amelin's resignation announced that Pottstown owes an additional $125,000 toward the workers compensation fund.Should public monies shrink beginning in January, local fire companies will have to rely more heavily on fundraisers. Campeggio listed Christmas trees, bingo, phone solicitations, food sales and fairs as a few common sources that are already tapped."Even standing in the street with fire boots will not generate enough donations to make up for a 25 percent budget cut," he said.
By Michael Hays, mhays@pottsmerc.com
POTTSTOWN — Flanked by dozens of emergency responders, a handful of residents implored Borough Council to rethink a sizable budget cut to the four local fire companies."What can we do as a community to help the fire houses without them taking a 25 percent cut?" asked Johnny Corson. "These gentlemen and these ladies deserve a chance not to be shut down."Corson, the vice president of the Pottstown chapter of the NAACP, was one of four people to address this issue during the public comment portion of Monday's council meeting. Borough officials are examining the 2009 budget, which has not yet been approved. Pottstown could face a revenue shortfall of at least $300,000, which has necessitated a search for areas to trim.The borough's four volunteer fire companies — Good Will Steam, Phillies, Empire Hook & Ladder and North End — are each allotted $185,000 annually, according to Mike Campeggio.
Campeggio, the Good Will chief, spoke on behalf of all local companies Monday night."If enacted, this budgetary reduction will adversely affect the emergency response capabilities of the department and will most definitely place borough residents at risk," he said.For the past several years, each company has requested $235,000 apiece, according to Campeggio. He said that amount is based on actual expenses incurred for salaries, fuel, utilities and vehicle maintenance."In actuality, the companies are starting each calendar year with only 78 percent of its actual projected operating budget," he said.One resident questioned where Pottstown spends its taxpayer dollars. The 2008 budget was $45 million.Phillip Thees brought up the fact that borough officials "found" $2 million in a forgotten account several months back.Referencing January's devastating fire on the 200 block of High Street, Thees said the four companies must be protected."We in this town need to protect and preserve our entire fire department — all four fire houses," he said.Council members should look to economize in other departments, too, Thees added.Resident Bruce Madara said Pottstown manages to "cut things" and still raise taxes. His remarks came while he criticized some borough officials for their attitudes toward citizens who ask questions.After the public was heard, Mayor Sharon Valentine-Thomas read from her report. Engaging in public safety is no simple task, she began. "We can't ever underestimate or take for granted the service you provide," Valentine-Thomas said.Although Pottstown has a fire department, it relies on both volunteers and paid firefighters. According to Campeggio, the borough fire department has 12 career firefighters and a chief (Richard Lengel). Approximately 25 trained volunteers supplement this staff.All four stations operate 24 hours a day, seven days a week, Campeggio said.As for financial accountability, the Good Will representative said all four companies are required to submit an itemized annual budget to Lengel.A bill passed by the Pennsylvania General Assembly addresses this area. Act 8 of 2008 requires local borough officials to annually evaluate their need for emergency services and determine the appropriate level of funding. Part of the law states that the itemized accounting must be presented before any additional funding can be considered by a municipality.The revenue shortfall going into 2009 came about through two fairly recent discoveries. In July, former borough Finance Director Robert Armelin predicted the borough would end the year with a shortfall of $200,000. Last month, a financial consultant hired by the borough to help prepare its budget in the wake of Amelin's resignation announced that Pottstown owes an additional $125,000 toward the workers compensation fund.Should public monies shrink beginning in January, local fire companies will have to rely more heavily on fundraisers. Campeggio listed Christmas trees, bingo, phone solicitations, food sales and fairs as a few common sources that are already tapped."Even standing in the street with fire boots will not generate enough donations to make up for a 25 percent budget cut," he said.
Sunday, November 9, 2008
Firefighters: Proposed budget cut would put public's life and safety at risk
Sunday, November 9, 2008 6:20 AM EST
By Brandie Kessler
POTTSTOWN — After learning that Borough Council may discuss possibly cutting the fire department's funding by 25 percent when the 2009 budget is publicly aired for the first time Monday, several members of Pottstown's four fire companies gathered to discuss their concerns.At the top of the list of concerns is how residents could be affected if a proposed budget cut were approved.
"You're risking life and safety of the public," said Martin Durchin, of North End Fire Company.The fire companies were made privy to the possibility of a budget cut as high as 25 percent by Pottstown Fire Chief Richard Lengel who said the the matter was brought to his attention by his boss, Borough Manager Ray Lopez.The possible cut may be a result of a more than $300,000 shortfall in the borough's budget.In July, former borough finance director Robert Armelin predicted the borough would end the year with a shortfall of $200,000. Then, in October, Timothea Kirchner, a consultant with Financial Solutions of Reading which was hired to help the borough prepare its budget in the wake of Amelin's resignation, announced that the borough owes an additional $125,000 to one of the its insurance companies for its workers compensation fund.Representatives from North End, Phillies, Empire Hook & Ladder and Goodwill fire companies, were upset by the possibility of a budget cut, especially one as substantial as 25 percent, because it would affect the efficiency of their response. The hit could be so hard that if a cut as high as 25 percent was approved, it could result in the closing of a firehouse."You've gotta admit that 25 percent ... if somebody's going to take 25 percent of your income" that's a lot, regardless of whether you run a retail establishment or a fire company, said Mike Campeggio of Goodwill Fire Company.Joe Groff, of the Phillies Fire Company, said there are approximately 900 calls for service that Pottstown's fire companies respond to annually. A cut in the budget will not only have an effect on the ability of the paid personnel's response but "it will affect the volunteers, too," he said."They're going to feel they're not being respected by the borough."The four companies were allotted $740,000 collectively each year from 2007 to 2009 from the borough's overall budget. That figure, when split among the four companies, amounts to $185,000 each. But the services that each of the companies provide, "you can't put a number on that," said Dave Ondik of Empire Hook & Ladder.Ondik further noted that the companies "have been very frugal with the money they receive," explaining that despite a rise in fuel prices which spiked this summer, the operating costs for the companies "have been even-keeled."Lengel said the borough fire companies are faced with the fact that fundraisers aren't successful like they used to be. However, the fire companies have managed to purchase eight pieces of apparatus in the past 17 years through "their own hard work" fundraising, which have not cost taxpayers a dime.Furthermore, the fire officials noted that the funding for the fire companies has not increased in 3 years, and it was last increased 4 years before that.According to Lengel, the fire companies funding has increased just 50 percent in the past 17 years.With $185,000 each company received in 2007 and 2008, and which they are hoping to again receive in 2009 to put towards their operating costs if it isn't cut, the fire department still "starts out in the hole," Lengel said.A large portion of the fire department's funding goes toward paying a driver who is a career firefighter to be on duty 24 hours a day, seven days a week, at each of the four fire companies.Having all four companies is important, the fire officials agreed, because it allows them to respond appropriately to all calls for service.Kevin Yerger, of Goodwill Fire Company, explained that during the devastating fire that struck the 500 block of High Street Sept. 19, fire officials were on the scene within a minute of the call. During their first nine minutes on the scene, officials had performed four rescues of people on a rooftop, searched the exposures of the burning buildings, evacuated those in danger and coordinated a medical helicopter for one person who had sustained severe injuries."That won't happen," Yerger said, if the funding for the fire departments is cut and their response time is affected as a result.The fire in the 200 block of High Street that erupted Jan. 26 and caused more than $2.5 million in damage, could have been much more damaging and costly if the initial response wasn't as strong, officials said."That could have been a whole block instead of three buildings," Ondik said.Durchin emphasized that it's not just commercial buildings that benefit from a quick response — currently an average of 2 to 3 minutes — from the borough's fire companies, but its also residential buildings.Cutting funding from the fire companies affects their ability to operate efficiently, Durchin said. "It just curtails our ability to serve the public and that's what we were formed for."Campeggio noted that when the borough asks for a fire company's assistance, whether to help clear fallen trees in the interest of public safety, assist the police department with a call, or any other request, "we do it and there's no additional cost incurred," because the fire companies budget is set. There's no overtime paid to the borough's fire companies. They are given the funds approved in the budget, and that's what they have to work with for the year."The borough needs to provide assistance to the residents of the borough," Campeggio said. "No matter how minor or severe. We need to be able to respond.""We at the fire companies, we understand budgets," Groff said. "But we want to protect the citizens.""We need to stress to the residents that we're always there for them, now's the time for the residents and the business owners to come to bat for us," Campeggio said, urging residents and business owners to make it known what the fire services in the community mean to them.Don Gephard, of Empire Hook & Ladder said being a member of a fire company in the community means being responsible for serving the community."I think there's a lot of pride in the fire departments in the borough," he said. "We're here for the borough and we want to give the best service we can."The Borough Council meeting is scheduled for 7 p.m. Monday at Borough Hall.
http://www.pottsmerc.com/articles/2008/11/09/news/srv0000004002391.txt
By Brandie Kessler
POTTSTOWN — After learning that Borough Council may discuss possibly cutting the fire department's funding by 25 percent when the 2009 budget is publicly aired for the first time Monday, several members of Pottstown's four fire companies gathered to discuss their concerns.At the top of the list of concerns is how residents could be affected if a proposed budget cut were approved.
"You're risking life and safety of the public," said Martin Durchin, of North End Fire Company.The fire companies were made privy to the possibility of a budget cut as high as 25 percent by Pottstown Fire Chief Richard Lengel who said the the matter was brought to his attention by his boss, Borough Manager Ray Lopez.The possible cut may be a result of a more than $300,000 shortfall in the borough's budget.In July, former borough finance director Robert Armelin predicted the borough would end the year with a shortfall of $200,000. Then, in October, Timothea Kirchner, a consultant with Financial Solutions of Reading which was hired to help the borough prepare its budget in the wake of Amelin's resignation, announced that the borough owes an additional $125,000 to one of the its insurance companies for its workers compensation fund.Representatives from North End, Phillies, Empire Hook & Ladder and Goodwill fire companies, were upset by the possibility of a budget cut, especially one as substantial as 25 percent, because it would affect the efficiency of their response. The hit could be so hard that if a cut as high as 25 percent was approved, it could result in the closing of a firehouse."You've gotta admit that 25 percent ... if somebody's going to take 25 percent of your income" that's a lot, regardless of whether you run a retail establishment or a fire company, said Mike Campeggio of Goodwill Fire Company.Joe Groff, of the Phillies Fire Company, said there are approximately 900 calls for service that Pottstown's fire companies respond to annually. A cut in the budget will not only have an effect on the ability of the paid personnel's response but "it will affect the volunteers, too," he said."They're going to feel they're not being respected by the borough."The four companies were allotted $740,000 collectively each year from 2007 to 2009 from the borough's overall budget. That figure, when split among the four companies, amounts to $185,000 each. But the services that each of the companies provide, "you can't put a number on that," said Dave Ondik of Empire Hook & Ladder.Ondik further noted that the companies "have been very frugal with the money they receive," explaining that despite a rise in fuel prices which spiked this summer, the operating costs for the companies "have been even-keeled."Lengel said the borough fire companies are faced with the fact that fundraisers aren't successful like they used to be. However, the fire companies have managed to purchase eight pieces of apparatus in the past 17 years through "their own hard work" fundraising, which have not cost taxpayers a dime.Furthermore, the fire officials noted that the funding for the fire companies has not increased in 3 years, and it was last increased 4 years before that.According to Lengel, the fire companies funding has increased just 50 percent in the past 17 years.With $185,000 each company received in 2007 and 2008, and which they are hoping to again receive in 2009 to put towards their operating costs if it isn't cut, the fire department still "starts out in the hole," Lengel said.A large portion of the fire department's funding goes toward paying a driver who is a career firefighter to be on duty 24 hours a day, seven days a week, at each of the four fire companies.Having all four companies is important, the fire officials agreed, because it allows them to respond appropriately to all calls for service.Kevin Yerger, of Goodwill Fire Company, explained that during the devastating fire that struck the 500 block of High Street Sept. 19, fire officials were on the scene within a minute of the call. During their first nine minutes on the scene, officials had performed four rescues of people on a rooftop, searched the exposures of the burning buildings, evacuated those in danger and coordinated a medical helicopter for one person who had sustained severe injuries."That won't happen," Yerger said, if the funding for the fire departments is cut and their response time is affected as a result.The fire in the 200 block of High Street that erupted Jan. 26 and caused more than $2.5 million in damage, could have been much more damaging and costly if the initial response wasn't as strong, officials said."That could have been a whole block instead of three buildings," Ondik said.Durchin emphasized that it's not just commercial buildings that benefit from a quick response — currently an average of 2 to 3 minutes — from the borough's fire companies, but its also residential buildings.Cutting funding from the fire companies affects their ability to operate efficiently, Durchin said. "It just curtails our ability to serve the public and that's what we were formed for."Campeggio noted that when the borough asks for a fire company's assistance, whether to help clear fallen trees in the interest of public safety, assist the police department with a call, or any other request, "we do it and there's no additional cost incurred," because the fire companies budget is set. There's no overtime paid to the borough's fire companies. They are given the funds approved in the budget, and that's what they have to work with for the year."The borough needs to provide assistance to the residents of the borough," Campeggio said. "No matter how minor or severe. We need to be able to respond.""We at the fire companies, we understand budgets," Groff said. "But we want to protect the citizens.""We need to stress to the residents that we're always there for them, now's the time for the residents and the business owners to come to bat for us," Campeggio said, urging residents and business owners to make it known what the fire services in the community mean to them.Don Gephard, of Empire Hook & Ladder said being a member of a fire company in the community means being responsible for serving the community."I think there's a lot of pride in the fire departments in the borough," he said. "We're here for the borough and we want to give the best service we can."The Borough Council meeting is scheduled for 7 p.m. Monday at Borough Hall.
http://www.pottsmerc.com/articles/2008/11/09/news/srv0000004002391.txt
Monday, November 3, 2008
Welcome to the new format!
Welcome to the new blog format of fiscalresponsibility.org! The blog format will allow me to more timely post updates, articles, etc. regarding my pursuit of bringing fiscal responsibility to Pottstown. Your suggestions are appreciated.
Saturday, October 25, 2008
Borough pushes back presentation of 2009 budget
Saturday, October 25, 2008 6:22 AM EDT
By Evan Brandt
POTTSTOWN — Tax-conscious residents who had planned to attend the first presentation of the borough's 2009 budget, originally planned for Tuesday, will have to cool their heels for two more weeks.Apparently the budget, which a consultant said last week is among the most unnecessarily complicated she has ever seen, remains too complicated to be ready for its scheduled first airing.Borough Manager Ray Lopez announced Oct. 22 that the first public presentation of the budget will not occur until Nov. 10, which is borough council's regularly scheduled public meeting.
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The release announcing the change noted that borough staff and Timothea Kirchner, the consultant with the firm Financial Solutions "have been working round the clock to assure the numbers they present for the 2009 budget are a true reflection of the actual costs of services to the citizens of the borough."Noting that "the actual process of putting the budget together did not begin until mid-September, due to the fact that the finance director left the borough in late August," Lopez wrote that "other data, critical to the completion of the budget, such as health care costs and insurance costs, are only coming in this week."Borough council was warned by Kirchner last week that this year's budget would not be pretty.With a 2008 budget already laboring under the weight of a projected $200,000 shortfall and the discovery of an unexpected workers compensation insurance bill for another $125,000, Kirchner told council that "I am very concerned that expenses will outpace revenues."Kirchner also told council that its budget is unnecessarily complicated and that this year she and the staff would attempt to simplify it."We have committed to getting this budget right and to improving the budget process," Council Vice President Greg Berry, who chairs council's finance committee, said in the release."It isn't about hurrying to get the budget out. It's about getting it right," Berry said. "We should take the time to do that while fulfilling our obligation with regard to the required time for public discussion of this budget. Delaying until Nov. 10 accomplishes both goals."Following Kirchner's budget presentation last week, Berry said that with the exception of a tax increase, "everything is on the table, including heads."
Sunday, October 19, 2008
No lack of interest in finance director job
Sunday, October 19, 2008 1:32 PM EDT
By Evan Brandt
POTTSTOWN — Although the borough is without a finance director — again — there's no shortage of people who want to replace him.So far, 40 applications for the job have been received, said Timothea Kirchner, a consultant with Reading-based Financial Solutions, the company hired by the borough to help hire a new finance director as well as put the 2009 budget together and prepare for a state-backed overhaul of Pottstown's financial and management structure.These last two tasks have taken the majority of Kirchner's time, she told borough council Oct. 14, but she said she will continue to review the applications.Whichever applicant is successful will find themselves in the midst of a consultant review under the aegis of a state program called the Early Intervention Program.
An initiative of the Pennsylvania Department of Community and Economic Development, the EIP, as it is known, is designed to help struggling municipalities get their financial house in order before disaster hits.Kirchner's firm has been involved with EIP projects in Lancaster and she said the fact that Pottstown will soon undergo this review, which will result in recommendations for making the borough operate more efficiently, is "the good news" in this year's budget process, which is looking to be a gloomy one."It's very good the borough has decided to go through the Early Intervention Program," Kirchner told council. "It will have short and long-term financial and management objectives and its aim is to improve the overall management of the borough."The requests for proposals from financial consulting firms will be "out on the street on Oct. 20," Kirchner said. Responses will be due by Nov. 24."We have an aggressive timeline and we're shooting for the job to be done by July 1, so you can incorporate it into the 2010 budget," she said.One of the places that consultant is likely to focus, Kirchner said, is the borough's finance department.She said the borough's "revolving door" history of finance directors had made it difficult to establish any consistency in approach to policies and practices."In my opinion, the borough manager and the assistant borough manager are in charge and the finance department is there to serve all the departments of the borough," Kirchner said."I think there was a disconnect and we have to take a hard look at who's responsible for what," she said.Council Vice President Greg Berry, who also chairs council's finance committee and championed the acceptance of the DCED grant that will help to pay for the EIP consultant, praised Kirchner's insights."We know there has been mismanagement and financial shell games going in the borough for years and we know that fiscal responsibility has clearly not been occurring over the years," Berry said.What the EIP study will do, Berry said, is three essential things."It's one thing to find these problems, then we have to find a solution and then put practices in place to make sure they don't happen again," he said.
Pottstown sees bleak budget picture in '09
Sunday, October 19, 2008 1:32 PM EDT
By Evan Brandt
POTTSTOWN — A tax hike, service cuts, higher trash bills and layoffs.Some or all of these politically unpalatable choices are part of Pottstown's financial future, as borough council prepares to start on a budget a financial consultant has warned will involve some tough decisions.The consultant, Timothea Kirchner, works for Financial Solutions of Reading and this week she appeared before borough council to give an overview of the upcoming budget process and to sound the warning about what it might entail.Council already knows some of the problems.
In July, former finance director Robert Armelin predicted the borough would end the year with a shortfall of about $200,0000.And Tuesday night, Kirchner informed council that she had discovered a letter indicating the borough owes an additional $125,000 to a worker compensation insurance trust fund due to underestimating Pottstown's payroll by about $2 million.Another obstacle to a balanced budget in 2009 is the dwindling value of property in Pottstown.With the real estate market in free-fall, more and more property owners are challenging their property assessments — and winning.Assistant Borough Manager Jason Bobst said the total assessed value of Pottstown property has dropped by $7 million to $8 million.That means without any tax increase at all, all other borough taxpayers must make up between $56,340 and $64,000 in lost income — either that or the borough has to cut that much out of the 2009 budget to keep the tax rate the same."I am very concerned that expenses will outpace revenues," saidKirchner.The struggling economy will also probably depress the borough's tax collection efforts, she added."In past years, you've had a 93 percent collection rate for your property taxes, which is really pretty good," she said. "But this year we're being very conservative and only estimating your revenue lines based on a 90 percent collection rate."Another obstacle is the budget itself, according to Kirchner."One of my immediate concerns is, to put it quite bluntly, you have a very complicated and complex budget in its format and in a number of items," she said."I've done county budgets for Lancaster that has a quarter of a billion dollars, and they are not as complicated in format as I have seen in this borough," said Kirchner who admitted to council that "I am enjoying being here, although I will say I almost ran out of the building on the first day,"Her observation was received sympathetically by Councilman Stephen Toroney, who once served as the chairman of council's finance committee."I've been on council going on nine years and there are parts of our budget that are still a mystery to me because of the complexity of it," he said.Given the "short time frame" Kirchner faced when her firm was hired and the demands of the budget timeline, she had not intended to make wholesale changes to the budget, hoping instead to make the changes for the 2010 budget."But as I looked at it, I realized I cannot in good conscience give it to you as it has been done before," she said.The borough's notoriously obtuse budget "is probably the result of a number of different finance directors moving through the borough and everyone had their own style, their own approach," Kirchner said."Everyone is frustrated with the budget and its format," said Kirchner, adding that her solution is "to get more of management involved in the entire budget process."She said the borough's managers have been open to her entreaties "and everyone is going through the budget line, by line, by line and there has been a lot of time and frustration by the directors."The goal is two-fold. One goal is to "ensure the budgets line up with what the managers say are actual revenues and expenditures" and also "to push hard to come in with the lowest budgets possible."Kirchner said "it is the staff's responsibility to bring you as lean a budget as possible."At the same time, she said she and Assistant Borough Manager Jason Bobst are "working to simplify the budget and budget documents by constantly asking the question: 'Why is it done this way?'"One area of the budget for which there was no good answer to that questions is in the grants and capital budget portions, said Kirchner."There really is no rhyme or reason for why some things are placed here and some things are placed there," said Kirchner.There are two big unknowns that will affect the final picture for the 2009 budget.One is the fact that the audit of 2007 was still not complete as of Oct. 14."We can't put a budget on the table without the confidence in the numbers that we can't have until the audit is in hand," said Kirchner.Toroney questioned why the audit was left open until March. "How can we legally keep a budget open?" he asked. "I want the confidence to know that when I vote on a budget, it won't be kept open."Another factor will be the increase in the cost of providing health insurance to the borough's employees.This particular mystery always carries a lot of suspense as well, not only because of the big part it plays in determining the borough's expenditures for the year, but also because the final numbers typically do not arrive until late December, when the budget is almost finished."The next eight weeks will be critical for health insurance costs," Bobst told council. "There will be an increase and I'm hoping that we'll be able to get some preliminary numbers based on the last 12 months and put something in front of you that is reasonably accurate."The final 800-pound gorilla in the budget room is trash.For the past three years, borough taxpayers have benefited from a trash contract that, despite the initial increase, has kept the price steady.That ends this year when a new contract will have to be signed."The wild card here is the trash contract," said Bobst.Bids on that contract will be opened Nov. 7.Given all these factors, borough council will have some tough decisions to make."I, for one, will not balance this budget on the backs of the citizens of this town," said Toroney. "We either have to raise taxes or cut services, that's the reality.""Everything is on the table," said Council Vice President Greg Berry, "including heads.""Well I won't touch police," Toroney said. "That's sacred ground for me.""We intend on taking a very fiscally conservative approach to this budget," Kirchner said.Council set 5 p.m. Monday, Oct. 27 in borough council's chambers as the time and place where Kirchner's official budget presentation will occur. Subsequent budget meetings will commence following that presentation.
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