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Health & Fitness

More Debt For the Newtown Township Municipal Authority?

The Newtown Township Municipal Authority will hold a "special meeting" to determine whether to accept additional debt.

At the past two meetings of the Newtown Township Municipal Authority, the board was asked to agree that an additional $100,000 that the township paid to Kelly and Close Engineers would be paid by the Municipal Authority.  

At both these meetings, the Municipal Authority Board determined that they would not agree to pay this additional money unless, and until, they figured out where all the Municipal Authority money had been spent and whether they were responsible for this payment. 

In March of 2009, the Municipal Authority had almost $800,000 (see attached documents) in their various accounts. Now, in July 2012, they have about $22,000 left (see attached documents).  

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Additionally, they have an outstanding debt of almost $500,000 (see attached documents) from a loan that the Municipal Authority owes to TD Bank. The township is responsible for the comprehensive plan for sewage facilities. The Municipal Authority is responsible to construct those facilities once the township has an approved plan.

The Municipal Authority, whose work is to construct sewage facilities, has spent at least $800,000 in the past three years. This does not include the $100,000 in question. It also does not include approximately $100,000 in additional bills which Kelly and Close Engineers still indicate they are owed (see attached documents).

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If this additional money is added to the balance, it means that almost one million dollars has been spent. And yet, during this period of time, the Municipal Authority has not constructed any sewage facilities.

On Monday, July 23rd, at 7 p.m., there will be a "Special Meeting" of the Municipal Authority to discuss the $100,000 again. It seems that in the course of the township audit, the auditor wanted an explanation of this $100,000 payment. The township indicated that it was a payment on behalf of the Municipal Authority.

The Municipal Authority has not agreed that this is the case. The township appears to be concerned about a material deficiency in their audit because of this $100,000 payment. In my view, and with the full knowledge of the Board of Supervisors, the Municipal Authority has spent taxpayer money which has not resulted in either a comprehensive plan (the township's responsibility) nor construction of sewage facilities for residents of the township.  

Before the Municipal Authority agrees to take on more debt, they should understand and explain to taxpayers where their money has been spent. At a public meeting, the Board of Supervisors authorized the $100,000 payment to Kelly and Close Engineers.  

The Municipal Authority did not agree to this payment at a public meeting.  Both the Municipal Authority and the Board of Supervisors, who appointed Municipal Authority members and attended meetings of the Authority over the years, are accountable for this spending.

Will the Municipal Authority agree to take on this additional debt because of pressure from the township?  Tonight, will taxpayers get an explanation of where their tax dollars have been spent? I hope that the Township's Board of Supervisors and Municipal Authority Board Members will answer these questions. 

 

PUBLIC MTG. NOTICES PUBLIC NOTICE: Newtown Township, Delaware County, Municipal Authority- Notice is hereby given that Newtown Township, Delaware County, Municipal Authority will hold a special meeting on Monday, July 23, 2012 at 7:00 P.M. at the Newtown Township Municipal Building, 209 Bishop Hollow Road, Newtown Square, PA 19073 to consider cost allocations related to the annual audit.
Appeared in: Delaware County Daily Times on Friday, 07/20/2012 
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