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.