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
Tuesday, November 25, 2008
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.
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