Pottstown taxpayers face 10 percent increase

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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.
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