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
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
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