Lower Merion Citizens for Responsible Budgeting
Audrey Romasco's Comments to the Commissioners - Dec. 3, 2008
Ms. Romasco is a Resident of Haverford, Lower Merion Township
Dec. 3, , 2008
To the Commissioners:
I would like to preface my remarks by expressing my appreciation for the overview sections available to the public on the internet. I would also like to urge you to amplify them next year by making the entire budget available on-line. One copy per library on desk reserve is inadequate for thoughtful public comment.
I address you with concern over the 2009 Budget and most specifically the Capital Improvement Program. What may have seemed merely aggressive 4 months ago, now, in light of the economy, appears immoderate and potentially cavalier.
Let me make perfectly clear at the outset that I am not in favor of deferring maintenance on the town’s infrastructure. I fully subscribe to the adage of “penny wise and pound foolish”. However, there are clearly discretionary projects within the CIP which could be deferred. I find it particularly ironic that the general budget Expenditure Reduction Recommendations highlights reduction of Ludington Library hours while in the CIP budget I find over $10.5M of renovation/expansion in the next two years!!!
I note from the Five Year Forecast that debt service is expected to rise by 7.9%. In fact, debt service, driven by the CIP, is projected to be 14% in the 2009 budget alone. In spite of this line item being singled out as one of the three driving factors in a 2009 Budget increase, we are projecting “normal” $10M bond issuances for fiscal years through 2012.
I appreciate the Ad Hoc CIP Committee reprioritizing previous plans, though I would have benefited from an addendum identifying which projects were A, B, or C. I gather all libraries were D, not as in “deferred”. The 2009 Budget notes that the Capital Projects Fund has decreased by $31.3M or –56% as compared to the 2008 Budget. However, as compared to the 2008 ACTUAL, it has increased by approximately 80%.
This raises an interesting question. In 2007 there was a $6M fund balance at year end, and we nevertheless went to bond for $10M in 2008. Now there is projected to be $4M left at the end of the year. Are we overborrowing and playing a game of use it or lose it?
In the next six years the CIP calls for Lower Merion to spend $155,061,000 on capital improvements at the same time we are undertaking two entire new high schools under another taxing authority. Granted, a significant portion is projected to be paid from state and federal funds. Given yesterday’s tableau of governors, hat in hand, I wouldn’t count on it. And from the number of times the term “reappropriation and updating” appears in the CIP overview, I suspect that projects are rarely eliminated, merely strung out.
Since I have moved here in 2002, the school tax rate has increased 50%, and the township tax rate has increased 40.45%. The Ratio of bonded debt to assessed value has gone up over 50% for the township and added to that is the bonded debt of the high schools.
I won’t reenact Paulsen on knee before Pelosi but my plea is no less fervent. Please reconsider the impact on the taxpayers of discretionary projects within the CIP. Thank you.
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