Other People's Money?

As 2015 Perkasie Borough budget discussions continue here are a few things that residents may be interested in:

• There is a $700,000 (or is it $800,000?) surplus in the general fund above and beyond the level that was voted on by a previous council to be in reserves.   This is essentially an "overpayment" that electric customers have paid over the past few years.  The question is will this money be returned to the people who have dealt with the 66% rate increase, or will it be spent?  Every $100K is an opportunity for a 1% reduction in electric rates- so borough residents and businesses could see a 7-8% rate reduction next year in electric costs.
• There are plans to hire 3 more borough employees.  Is this really necessary?
• Borough officials have claimed to have "cut" almost $1,000,000 in spending from the budget so far...but this is mostly the "wishlist" items of department heads and therefore not really cuts.   These include electric "smart meters" and a $275,000 street sweeper- that incidentally is being demonstrated at public works this morning (9/30/14) even though it has been cut from the budget (see below pic)
• The borough trash fee could double next year from $12 to $22 as less bags are sold.  The idea has been floated to give borough residents an option of having a toter but this idea received resistance from councilperson Florence Frei (215-257-7054) and Mayor John Hollenbach (215-257-7617) who prefer things stay as they are and not change with the times.

The next budget meeting is Saturday October 4th at 9am at the Borough building at Chestnut & 7th Street.  Will council treat your electric bill (tax) as they would their own money, or is it simply "Other People's Money"?    Do you want your electric rates to go down, or let the Borough keep spending your hard earned money?  You need to demand it.

The $275,000 street sweeper demonstrated at Public Works- will it stay on the cutting room floor or will it sweep more of your electric bill every month?  

Perkasie 2015 Preliminary budget

To the credit of the finance committee (Ryder chair, Krantz, Aigeldinger, Pizzolo, Stottlar) they began the budget process early this year and have already held 2 public meetings with department heads on July 28 (minutes) & Sept 3rd.

Observations:

• Dept heads were tasked with presenting 3% decreases in their budgets yet still came forth with wishlist items that were given consideration including $550,000 expense on electric "smart meters" and $75,000 replacement of pool slide, and $258,000 street sweeper  These 3 items have since been removed from preliminary budget as part of the claimed "almost $1 million reduction in spending" which is a duplicitous claim. 
• Preliminary 2015 budget is $5,435,934 which is an increase of 3.7% from last year.
• 10% increase in health insurance costs
• 13% increase in pension contributions
• indicated 34% increase in water & sewer rates from PRA

The finance director made it clear that spending had to be lowered because of an anticipated reduction in electric revenue from loss of a major consumer in the borough.  The borough is claiming some offset from new housing developments which may explain the council's vote to approve a zoning change for a new housing development in the face of 50 residents packing a meetings and saying emphatically NO.

At this time there is a surplus estimated for the general fund balance in excess of what is required of $810,041.  A comment by Aigeldinger was that that could be put to work elsewhere in the budget with perhaps a 3-4% decrease in electric rates.   Council members would be wise to realize that this is money that has been paid by electric users, and in the face of a 66% increase in 2008 that money should be returned to ratepayers in a rate decrease.  Every 1% rate reduction across the board is estimated to cost $100,000 so this amount could mean up to an 8% reduction in electric rates.  Borough electric customers should make their voices heard about what they think should be done with that excess!

Budget memo discussed at Sept 3 meeting below:

Note in the below figure that a $20,000 expense for the "economic development consultant" remains, even though no progress report has been given with an explanation of achievement towards goals.

Also of note is that the administration wants to add new employees to give the parks & recreation Director a raise to assist the borough manager.  The borough has functioned effectively without an assistant manager since January 1.

Much work remains and the council is reminded to sharpen their pencils and remember that the Borough operates for the residents of Perkasie.