The Morning Times published an article in their November 22nd edition entitled “Daly, Thomas weigh in on budget crisis.” (Thomas is Mayor Denny Thomas. Mayor Thomas is a former councilman having served on the council for the most of the last two decades). The author, Warren Howeler, asked Mayor Thomas and I three questions, noting that we were silent during the discussions that led to the failure to advertise the budget and the tax ordinance.
The three questions were (1)Were you surprised about the outcome? (2) The borough really has two options to make up the $103,849 that still needs to be eliminated — cut the money that was going to be transferred to capital reserve or eliminate employees. What are your thoughts on these two subjects and do you support either option? and (3) Are there any additional comments you would like to make on this issue?
Here are my responses, which were printed verbatim in Warren’s article:
1) Were you surprised about the outcome?
I was very much surprised since the outcome given the fact the Admin committee unanimously agreed at the November 7th meeting to recommend a 1 mill increase in the real estate tax and $13/quarter increase in the sewer rate. Why they changed their minds or why they turned their backs on their decision is a mystery to me.
2) The borough really has two options to make up the $103,849 that still needs to be eliminated — cut the money that was going to be transferred to capital reserve or eliminate employees. What are your thoughts on these two subjects and do you support either option?
These are the only two options as I see it and I support neither option.
I believe we have the minimum number of personnel necessary for the Borough to continue to provide the services and programs I believe they want. Some of my colleagues have suggested that we need to cut personnel, but they have not been able to answer Borough Manager Jarrett’s challenge to identify which programs and/or services they want to cut to achieve that goal.
Maintaining an ongoing capital reserve program is most sensible action we must take and should not be compromised. If it accomplishes nothing else, these funds are used to reduce or eliminate the need to borrow, thereby saving interest costs over the long term. It does provide an easy, immediate solution to avoid a tax increase, but at what cost? Eliminating capital reserve activity in the next fiscal year is irresponsible and must never be considered. It hasn’t worked before and it won’t work now.
3) Are there any additional comments you would like to make on this issue?
I am bothered by the lack of trust in our Admin staff. They, in absence of any direction from Council, filled the leadership vacuum and developed a budget they felt was necessary to continue to operate the borough and its services at the level they believed necessary. As they are the people who are in daily contact with borough operations and residents, their viewpoints and the budget they prepared have a lot of credibility with me. The Public Works Committee made some substantive cuts at the October 22nd meeting, hopefully cuts that won’t compromise our operations and I congratulate them, but I do not believe further cuts are possible without serious impact.
I am bothered by the lack of historical perspective. This council raised taxes twice in the last ten years, with the rate rising from 8.00 mills to 9.92 in FY 2007. This is damn good record. Compared to our neighbors, I believe we are providing more services for the cost. (2007 rates for our neighbors, Athens’ rate was 13.75, South Waverly’s was 11.50, the township was 10.00; Bradford County was 10.63 mills, and let us not forget the Sayre Area School at 40.50 mills).
I am bothered by the idea that the borough should use its budget to offset the increases in the cost of living that affect us all – presumption being the borough is immune to the same pressures. The supposition that we are reducing residents’ standard of living because of a tax increase is preposterous as we are providing the services and programs that directly impact that standard of living, e.g., police and fire protection; refuse collection; the recycling program (which we hope to substantially improve in 2008, depending on the success of our grant application); the borough parks; the sewer infrastructure program that improved the worst sections of our sewer system; flood protection system; and our annual road paving program, to name a few.
I am bothered by comments made during these budget discussions and at earlier meetings. Some of those comments directly impacted the moral, and probably the trust, of our employees, the very people we depend upon.
Finally, speaking for myself, I am retired military and living on a fixed income with annual cost of living adjustments that never have kept pace with the cost of living. I do not like the idea of paying more taxes, but I will pay for services I want, and the borough is providing them. I think it is money well spent. The propose tax rate increases my taxes by $32, hardly an amount that breaks the bank.
Here, quoting from the Morning Times, is Mayor Thomas’ comments:
The final decision on the budget does lie in the hands of the members of the borough council, said Thomas.
“I know that they are looking out for the taxpayers just like I am,” said Thomas.
Thomas said he is worried that the borough will fall into the same trap that Bradford County found itself in a couple of years ago where it didn’t raise taxes over a long period of time and then was forced to raise the millage by 3.5 mills in order to balance its budget.
“I would be in favor of doing a little bit at a time, maybe a mill at the time,” he said. “We’re running a business and we can’t run at a deficit.”
Thomas said he would not support the elimination of any money being transferred next year from the general fund into capital reserve.
“We have a fire truck to pay for in 2014,” he said. “We’ve been putting money away for that.”
The new fire truck that Thomas is referring to is for the Wheelock Hose Co. in Milltown.
The borough is also putting money away for a new police car a couple of years down the road, said Thomas, noting that the municipality did benefit from a donation from Guthrie Healthcare System that paid for the department’s newest vehicle.
“I’m not in favor of going into our capital reserve,” he said.
“It is up to them (the council) if they want to continue on or not,” said Thomas. “I really don’t think that one mill is that bad and I’m going to say what I said earlier – I don’t want this to be like what happened in Bradford County a couple of years ago where it went no tax raise and no tax raise, and all of sudden we get hit with a 4 mill tax raise.”
Thomas also noted that he doesn’t believe that department heads will be able to trim their budgets back to where they are this year.
“We cut the budget one time, and then they came back and we cut it,” he said. “We all sat there and there was nothing else we really could do. A lot of this in the budget is contractual with the unions and our employees. So I don’t know what they’re looking to do this time. I imagine they could go back and get a little bit more, but I don’t think they’re going to get another mill.”