Financial planning aid brings needed direction

The process took a while and wound through some confusing turns, but Pottstown Borough Council's decision to take advantage of state help with financial planning is a step in the right direction.
Council voted 5-1 last week to accept a $35,000 grant from the Pennsylvania Department of Community and Economic Development to participate in the Early Intervention Program.The program is designed to analyze and assess a municipality's operations and finances and to make suggestions for financial solvency and improved efficiency.The borough had applied for the grant last October and last month, a DCED representative visited council and asked why it had not acted after being informed it had been awarded the grant.Council asked for an additional month to consider the matter, given that a previous council had applied to the program and for some reason the $35,000 in matching funds the borough must provide was not included in the 2008 budget.That scenario alone illustrates why this program will be beneficial for Pottstown. The borough has struggled in recent years with financial missteps and lack of communication on key issues regarding finance.Just two weeks ago, the borough finance director resigned to take another job, leaving that key position vacant at the start of the 2009 budget planning process.Councilman Jody Rhoads cast the only no vote against the proposal, citing the $35,000 match as something the borough can not afford.Truth is, the borough can not afford not to accept this offer, even with a matching pricetag. The potential for increasing efficiency in managing borough finances is too important -- and carries too large a potential for payback -- to reject. Before voting on the proposal, council heard a report outlining a number of steps Easton, which is similar to Pottstown in tax base and demographics, could take to keep from continually raising property taxes."For $30,000 I hope we are not going to just get a book with the recommendations that were given to other towns," Rhoads said.But Mayor Sharon Valentine-Thomas pointed out that Pottstown could further reduce the costs by providing some "in-kind" services from staff."I never want to go through a budget anything like we did in 2006," she said. "We are the watchdogs for the taxpayers and we have to do whatever we can."Council Vice-president Greg Berry called the vote "perhaps the most significant vote taken for financial stability for the rest of the borough."Berry added, "This will finally help us deal with some management issues that have burdened us in past years."A plan that can help correct some of those issues and increase efficiency is indeed needed and welcome here.

Pottstown Mercury - 08/20/08 - http://www.pottsmerc.com/site/news.cfm?newsid=20082061&BRD=1674&PAG=461&dept_id=635485&rfi=6