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.

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