Newtown Township 2014 Budget Adoption Meeting - December 18 at 6:30PM

Do you have questions about why your taxes keep going up?  I do.  A review of this year's preliminary budget is cause for many questions. It currently proposes to raise your taxes again. You can attend the December 18th Newtown 2014 Budget adoption meeting at the Township Building at 6:30PM to learn more and ask questions.

Recently, resident Jan Elston wrote to the Supervisors and included questions that relate to the budget.  Her letter is included with this post.  The preliminary budget can be viewed at www.Newtowntownship.org  Along with Jan’s questions, here are some other questions that hopefully will be reviewed and answered before the final budget is adopted:

1.     Jan Elston asked: Who owns the Library part of the township building?  Why is our manager spending money we obviously can’t afford to renovate the upstairs?  Why is he getting raises and bonuses? 

2.     Regi Siberski questions every year and again this year:  Why are the Township Supervisors still having Taxpayers pay for their medical benefits?

3.     My additional questions/comments: Why does the preliminary budget show $135,000 in revenue for the Foreign Fire Insurance but $160,000 in expenses.  Here is an explanation of this item provided to me by resident Nate Glazer: "The Foreign Fire Insurance distribution, also known as Fire Relief, is a strict pass through item by statute. The municipality has a fixed time period, about 30 days, to forward the state’s allocation to the appropriate relief association. The two amounts, budgeted anticipated revenue and expense have to be the same. It is true that the actual amount is unknown at this time of the year – but they have to match in the budget." This is an error in the preliminary budget that was presented and adopted. 

4. In the Revenue portion of the preliminary budget, $10,000, Documents, Copies etc. (item # 01.361.54000 on page 1)is budgeted for 2014. In both 2012 and 2013, they’ve generated at least $34,000 in  revenue.  This budget number seems way too low to me. 

5.     There is no revenue category for Petty Cash, yet there have been months where petty cash was tapped for hundreds of dollars.  The handling and use of petty cash by township management concerns me. I wish they would explain how much is in petty cash, where it comes from and how they are accounting for it.

6.     In Revenue Other category, the Street Light Assessment(item # 01.383.11000 on page 3), the 2014 Budget is $20,000.  This year, they collected $27,271 so far.  I don’t know how/why this Budgeted number would lower for next year.   Are they planning to reduce the Street Light Assessment?

7.     In the Expense portion of the budget, (01-401.47000 on page 6), Administration General Expense, they have increase the budget to $6000.  What is this category paying for?

8.     They have a budget expense number of $9000 for Unemployment compensation, (item #01-401.16200 on page 6), except this year, they paid out about $3500.  Why are they projecting such a high figure—is there a plan to layoff/fire someone?  If not, this number should be lower.

9.     This is the year, I understand, that they would be doing a new Police Contract yet the budget for ( item #01-404.31120 on page 7), Police Collective Bargaining, is only $2500.  Is this really an adequate budget for this category?

10.  In expense category (item # 01-404.31150 on page 7) General Legal Fees, they have budgeted $50,000. In the past two year they have spent over $90,000.  It is curious that they think 2014 will require less in legal expense given the Paper Mill Road, BillBoard, 537 Appeal etc. cases they already know about.

11.  They have a budget expense(item # 01-410.42200 on page 10) Tuition Reimbursement of $16,000 yet in the past 2 years, they have not spent more than $1800(this year they project $5600 but they have only paid $1354 year to date).  This number does not seem to make sense.  It would be great to know why this is projected to be so high next year.  Also, would be great to know the criteria for tuition reimbursement. 

12.  I am very curious as to whether they are handling the cost of Building Code/Inspections accurately.  The budget expense number is $254,900(item 301-413.14400 on page 12).  The way I currently understand how these fees are determined is that they are a percentage of the permit fees.  It is not clear if the Revenue budget has already netted out these fees or not.  This budget category could use an explanation.

Finally, the capital reserve and other special accounts really should be scrutinized in my view. For example,$36,500 is forecast to be spent this year for recreation in the Open Space Fund(item #09-450.90000)—why ?  And, if as projected, all of the Capital Projects are approved, even assuming no items go over budget, the Capital Reserve Fund will be really low.  Almost half of the Capital Reserve Fund appears to be the $500,000 that the township previously borrowed when they anticipated moving District Court to the second floor of the township building.  That never happened but the township still has the loan.  This means that about half the reserve fund is debt.

Overall, it continues to be incredibly disappointing that it appears to me that there is no fiscal discipline or long range planning in this township. The preliminary budget proposes what I see as an unnecessary tax increase.  If the final budget includes an increase it will be reflective, I believe, of poor planning and an inadequate budget process.  Newtown residents deserve better.