The Budget Debacle

In many articles Patrick Varine, our local Trib-Live reporter who does an excellent job of covering local political issues, reported on Delmont's Budget Workshops and the possibility of "hot topics of debate."  The problem is to have any type of useful discussions there is a prerequisite of having an open mind and willingness to engage in discourse. I felt that any points I tried to raise would fall on deaf ears.  Consequently,  it didn't seem like a viable use of life energies to engage in discourse, so I remained relatively silent deciding to bring my impressions and my concerns to you, the Citizens of Delmont.  You will have the opportunity to vote on November 7 and decide the future of our community.

I knew the meeting was off to a poor start when the meeting opened with, "Okay, let's see how much money we have coming in and where we are going to spend it."  This approach to the changing dynamics of Delmont is going to allow the continued decline in population and further reduction of amenities that might aid in stopping this alarming trend.  It was stated at the October Council Meeting, "Our police force is a major reason people are coming to Delmont."   The reality is people aren't coming to Delmont for any reason.  Delmont is not alone Westmoreland County is hurting and that is why our Commissioners are working so hard on the ReImaging Our Westmoreland  project.  One of the things that I would like to do is try to piggyback onto the County's efforts and do the same for Delmont.

A governmental body that was interested in better serving the community might start the budgeting meeting with something like this.  Well it is budget time again.  Are there any areas that aren't working? Are there any new areas that we should budget for? Does our budget adequately provide for the services that Delmont citizens expect from us?  Last year we had to borrow $50,000 through a tax anticipation loan.  Why did this happen?  What is fundamentally wrong with our cash flow that allowed this to happen?  Was this an outlier, or is there a fundamental problem that will cause this to happen again?  What is happening in our population? 

Insights from Budget Work

• The only consistent revenue source for a Borough is tax that is based on property. Consequently, a sustainable budget would be based on that amount.
• I use to think that the idea of a quota for Traffic Violations was a joke, but local authorities can budget any amount of revenue that they want from that source.  The caveat being enough police to get it done.
• One of our largest sources of Revenue is in the from liquid fuels which is based on gas taxes.  So the more pollution we cause from auto emissions the more money we get.  The more liquor establishments we have the more money we get.  The more we allow our Environment to be degradigregated by fracking the we receive a minute amount for undeterminable length of time.

Seriously?

Here is a list of areas that Delmont has not Budgeted any money for since at least 2010.  

• Community Development-  Here is a point that needs to be remembered "Development" does not only mean creating buildings, but also progress and growth.  Sub-categories include: 1) Conservation of Natural Resources, 2) Housing, 3) Economic Development and Oportunity
• Parks, Shade trees, sidewalks, Trails Recreation      

What they didn't want to hear or believe

I thought it might be interesting to see what the population of Delmont has been doing since 2010.  Most municipalities use population data to determine levels of emergency services necessary.  Delmont's population has decreased 2.3% since 2010.  I wanted to look at it through a different perspective.  Delmont's per capita tax is for residents over 18 and under 65.  The rate is $5.00 a person.  I am excluding any discounts.  I took the amount of per capita tax collected as reported in audits from 2010-2016.  The chart below represents my findings. There could be slight discrepancies in numbers of residents based on delinquencies and out right failure to pay.

	2010	2011	2012	2013	2014	2015	2016
Population	2,683	2,672	2,661	2,659	2,651	2,639	2,622
Population paying Per Cap	993	983	945	993	995	974	973
% of Population Paying	37%	36.7%	35.5%	37.3%	37.5%	36.9%	37.1%

For whatever reason an average of 36.86% of the Delmont Population is paying the per capita tax.  I think it may be safe to assume that this is that this is close to the amount of population that is paying Earned income takes as well.  A question we might ask, " Should we use the number of population paying for the services or the total population number to calculate number of emergency service personnel?"  Yes, emergency services are potentially used by all citizens, but what happens when the cost is too much to be absorbed by the paying segments taxes?  The average number of the paying population is 980.

Another point that I did not mention at the budget meeting but that is related to this point is by the year 2050 approximately 67% of the world's population will be living in cities.  What effects will this have on Delmont?  What can Delmont do attract and hold residents?  Will Pittsburgh be that city, or might Murrysville become the epicenter?  These are issues that Delmont Leaders must start thinking about.  Every year, since I have been in office, there has been one Councilwoman vehemently opposed to paying Westmoreland County Transit Authority to maintain a bus stop here.  The Delmont Bus Stop is a vital link to Pittsburgh, albeit not a favorite way to commute in from the East Side of Pittsburgh.  Any transportation by motor vehicle from Delmont to Pittsburgh is not ideal.

Will the "Real" Actual Spent figures Please stand up

I was very distracted when I looked at the budget worksheets that we were presented with to make financial decisions.  I believe that the actual amount of money spent in one year ought to be equal in the yearly audit, reports generated from the ledger, and the worksheet.  The chart below shows the various amounts in those three areas.

There are two philosophies one can have for determining the amount of money spent. 1) Money spent in one budget category is money spent.  It doesn't matter if the money is from state sources, federal sources, county sources, fines collected, donations, grants, alien benevolence.  The point is it doesn't matter where they money comes from, it is still being spent. 2)  One can employ fuzzy math to make it appear that not so much money is being spent.

The chart below has audit values from 10 years ago, the budget figures presented on the worksheet, and four years worth of ledgers.  When I first started reading over the financial information I thought five years would be enough.  the figures in the charts speak for themselves.  I didn't think it necessary to acquire the actual ledger amounts five years more back.  In one of my blogs,  someone said that they didn't agree with my figures.DECD Audit Reports simply fill in the fields and you look at any audit in the State.  All the figures that I use can be verified.

	2010	2011	2012	2013	2014	2015	2016
Audit Actual	$274,815	$295,016	$266,875	$278,412	$333,042	$324,591	$293,118
Budget Sheet Actual	$297,234	$278,236	$266,321	$263,722	$306,619	$304,729	$281,483
Ledger Actual	N/A	N/A	N/A	$272,551	$300,573	$321,596	$299,212
Difference Audit- Budget Sheet	Higher $22,419	Lower $16,780	Lower $554	Lower $14,690	Lower $26,423	Lower $19,862	Lower $11,635
Difference Audit-Ledger	N/A	N/a	N/A	Lower $5,861	Lower $32,469	Lower $2,995	Higher $6,094

How to Spend the "Blood Money"?

Blood money is what I call the money that the Borough receives for Fracking that occurs in Pennsylvania courtesy of  Act 58 later superseded by Act 13.  The monies that are distributed don't come close to reflecting the permanent damage done  to the Pennsylvania  environment that citizens will be plagued with for eons.  

I am not going to debate or discuss the basic questions "To Frack or Not to Frack?" "How long or how much environmental damage is acceptable?" "Is fracking worth the damage?" But look at this decreasing "Free" money that has been given to us since 2012.

It is my opinion that lack of a plan, poor leadership, lack of vision, and fiduciary negligence have lead to the squandering of the $29,342.00 the Borough received from this fund since 2012.  This may seem like a very harsh thing to say but the question "How should we spend the $3,507.17 Marcellus funds? " The answer agreed on by most of the Council Members....."Let's give it to the Police towards the New Vehicle Lease."  

Why I am against this idea.

1. There are over thirteen allowable areas where the money could be used including; Roads,sewage, Stormwater, housing, worker training, Economic development, Parks, a Capital savings fund to be used in these areas, and planning.
2. The intent of the fund is to address long term Fracking consequences a leased car will not even last until I have grandchildren.
3. The vehicle lost more than $3,507.17 when it was driven off the dealer lot.
4. We are more than likely going to have to take out a tax anticipation loan and the interest and fees will be greater than this number.
5. It is inane to poor money in an "asset" that is rapidly depreciating in value.
6. If the money must go to the Police Department why not put it into a capital building fund.  At least a building will last longer than a vehicle.

Year	Act 13 Funds Distributed
2012	$6,840
2013	$6,161
2014	$6,505
2015	$5,774
2016	$4,062
2017	$3,507

Please note in the Audit Reports for 2015 and 2016 the Marcellus figure is mistakenly entered in the row corresponding to “Local Share Assessment/Gaming Proceeds”.  Kind of makes one wonder if anyone is reading the Audit Reports 

If you want to see how much money is being distributed click on Blood Money Distribution Statewide.  Fill in the year click on report.  You can then search the report for County or Municipality of interest in Pennsylvania.

Areas I believe deserve Budget Consideration

• There was some concern and disappointment expressed over Code Enforcement revenues and the length of time that it is required to collect fines.  Hire a Public works person to free up time for Supervisor to engage in more activities, or hire another person and consider other options for code enforcement.
• Our Borough Secretary is currently doing the work of a Secretary, Treasurer, and Borough Manager.  Give her some  at least part time help.  I have thought about this since I attended a Secretary/Manager training last year.
• Consider hiring a Police Secretary and perhaps reduce some part time positions.  This may save money and allow the officers more time to patrol and not have to worry about paperwork.
• Money to train attend training for Council Members.
• Money to Develop a Plan for Delmont
• Money for Economic Development
• Fund for Flooding and other disasters that might not be subject to FEMA
• Either getting Rid of the Per Capita Tax or Doubling it

Delmont is facing some big challenges.  We need an innovative Council who will make the tough decisions that "Honor/Preserve our Past, Live with Vitality in the Present, and Create Our Future."

Questions comments always welcome. david4delmont@gmail.com

Piper's Hidden Agenda for Delmont

"If liberty means anything at all, it means the right to tell people what they do not want to hear."

George Orwell

It may seem like a very strange time to talk about "my agenda" for Delmont, but it is Election time, no my term isn't up yet, and I have feeling that some may be out there trying to use fabricated stories about what I believe to try and discredit candidates of which I have positive impressions.  I have positive impressions and minor concerns for all of the new candidates.  I have positive impressions and concerns for the incumbents that seek to hold power.  The way I will vote is based solely on my beliefs of those who truly care and represent the people of Delmont and act according to their will as much as practicable; and, the candidates who have some vision of what our Community can become.

Anyone, including people associated with the Borough, past or present who would say anything that is inconsistent with what I write here is a bold face liar.    Furthermore,  I believe that anyone that would misconstrue my positions and spread them has an agenda of their own.  If you want to know my position just ask.  I always try to make myself available and I provide my e-mail address, david4delmont@gmail.com, in most of my public postings.  Warning, I am human and as I learn more and circumstances change my positions will change as well maintaining the People of Delmont and the future of our Community as guiding principles.

What is the crux of my Agenda?  

To develop a plan that would embrace the phrase "Preserving/respecting our past, vibrantly living the present, and creating a sustainable future."  I have ideas but this is something that all citizens of Delmont must discuss.  What legacy do we want to leave our progeny.    This is extremely complex and difficult to engage citizens as recently demonstrated by 1) Delmont Zoning Ordinance update, and 2) The County's efforts to re Image Westmoreland.  I have been to several of these workshops and meetings and the attendance has declined.  What I find most interesting is many of the people that came to the final public commenting meeting were absent from the actual planning process where their concerns could have been considered and possibly built into the final product.

1. To make Delmont a reasonably safe, and secure Community with many amenities that enhance economic vitality, provide for various forms of recreational activities, educational enhancement activities, environmentally sustainable living area  that all lead to a happy and healthy population. This might mean putting some Sacred Fat cows on a diet, but it doesn't mean killing the cow.  Or if the cow is to remain so fat, that would necessitate increasing revenue generating techniques in order to provide a more balanced diet to the rest of the animals on the farm.  My use of "reasonably safe" may make some nervous, and some may argue that you can never be too safe.  Ben Franklin said it best when he said, They who can give up essential liberty to obtain a little temporary safety deserve neither liberty, nor safety."  It is so important that Patriotic Americans remember "fear" and "terrorism"  are the primary tools of those who wish to become Tyrants, and they helped Hitler secure power in 1933.
2. Create the atmosphere where all citizens of Delmont feel respected and motivated to participate in local government to the extent that they wish.
3. To encourage a sense of Leadership in Delmont that is willing to accept responsibility, and  accountability for their actions and hold a firm line on the division of powers and areas of responsibility.  I have not seen any signs of strong leadership since I started following local politics closely six years ago.

Why do I blog?

1. I want to be as transparent as the law will allow,  explain the issues as I understand them, and encourage you, the citizens of Delmont, to share with me your concerns so that I can represent you to the best of my ability.
2. There have been actions by Council that have insulted my intelligence, my view of how a Democracy is supposed to function, and my understanding of what it means to be a Patriotic American.  Please understand that not all of these feelings are currently being felt but this is an overview of why I got involved in Delmont Politics in the first place.  Also, please note I stressed "me" and "my" not because I wish to be egocentric but because it is my opinion of how I am viewing the situation through my biased half century of life.  Everyone has their own views based on their biases and life situations.
3. Since I have been elected I have felt isolated from my fellow Council people.  Some of this I am sure is my fault, but nobody has approached me and I feel that over-all I am talking to a close minded group of individuals. From my perspective there are some that may be semi open to ideas but for what ever reason feel safer going with the status quo. Consequently, I appeal to you the electorate to voice your opinions on different issues based on what I write.  I know that they will listen to you at least around election time.
4. Sometimes I blog certain things just  just to spark discussions.  In a democracy it is important to get as many individuals as possible involved.     

October Meeting Reflections

There were actually three meetings held on Tuesday October 10, 2017.  It started with the special meeting on the Zoning Ordinance, followed by the regular meeting and a short Executive meeting.  As I said in previous blog, I will address concerns with meetings latter. 

Two major points I want to expand upon briefly here.  They are LED Street Lights and Delmont Volunteer Fire Department.

Street Lights

The question was asked by Council Woman Becky Matesvac, 'Yeah, what about those Street lights? Are they saving us any money?

There are a couple of things to remember before even looking at the data I have to address the question.

• The street lights were over 25 years old.
• There was a rate height request that included potential light removal fees of $3300.
• Power rates were due to increase anyway.
• The installation of the lights cost the Borough $0.00

The following chart list some information about Lighting costs.  Two years considered 2016 and 2017.  The lighting switched about 3rd week in March.  Keep in mind the length of days changes throughout the year and the rates can vary as well.  For some reason the light portion was not part of bills paid section of monthly Council meetings.

Yr.	J	F	M		A	M	J	J	A	S	O	N	D
2016	1214.62	*		1769.00	1769.00				*		*	*	1257.98
2017	2582.87		2241.19				952.89	1470.62	1158.95	1158.95	1158.95

* Reports I have without mention of Street Light Expenditures

Blank spaces to date means I couldn’t locate my copy of Bills paid for that month 

I don't wish to embellish the effectiveness of this project enough activities get over embellished.  My best guess is the lighting will save anywhere between $98.07-$1,112.25 a month depending on time of year over the old lights.  My own opinion is since cost was zero any savings are good.  Besides using less power is just the right thing to do.

Delmont Volunteer Fire Department

Out of all the emergency services the existence of a Fire Department financially impacts each and every citizen more than the others.  The men and women that choose to give their time to serve their fellow human beings no representation , no retirement,and sadly at times little to no gratitude.  Delmont would be in a very tough position if we had to pay for fire service.  Many communities are offering volunteers tax breaks or educational benefits to join the service.  Most disheartening to me were comments bad by some such as " We have a check $13,825.09 and nobody could be here to pick it up?" "Yeah, and they always are coming looking for money." "Yes, and they don't attend the safety meeting" "They sure have been getting a lot of calls." "How many firemen do we have anyway?" "How many that can actually drive the truck?" "And to top it off we have to pay their workers comp."

My impressions and clarifications

• The $13,825.09 is pass through money from the State and the Borough had nothing to do with acquiring that money.
• Yes, representatives from the Fire Department should be here and at the safety meeting. It is frustrating that they didn't attend.  What is their incentive?  They made an error on a form that almost tripled the amount of Worker's comp we had to pay.  Did they receive help and understanding for the error?  No, they got chastised and told let our insurance people feel out the paperwork.
• We pay workers comp for Police, Public Works, and Administrative services.  Why has noone ever complained about that? Yes, it has to go into a special fund because no insurance companies want to carry it.  This is proof of the risks they are willing to take to protect our citizens and there are complaints made about it.
• All of the statements made are not helpful or conducive to building a working relationship.  Yes, there are some wishes and we need to find a solution.
• True Firemen are not employees of the Borough, but they should be on a level playing field of respect and decency as Borough employees. 

Get Rid of Delmont's Police Force??????

I would like to thank Jim Bortz for bringing this most serious conspiracy to my attention.  I have not heard of such a plot but it can not be allowed to succeed.  Delmont has a good Police force and needs its Police Force.

They did an excellent job at the Apple Festival.  I was very impressed with the Chief's concern for the officers and making sure they had enough to eat and drink during the long shift.  He truly lead by example as he went to areas where there where difficulties.  Delmont Police were not only able to maintain traffic flow of the festival but also follow up on a reported hit and run.  They did a great job of getting an Emergency response vehicle headed to Vandergrift through the traffic jam on 66.

Anyone who has information on those who want to get rid of the Delmont Police Force please contact me immediately at david4delmont@gmail.com I would not want to vote for them either.

There is an excellent book that I recently finished and I am including a picture of it.  It is very important for all levels of government and am working on a project to include it in the educational curriculum of Local Officials.  The book is On Tyranny: Twenty Lessons from the Twentieth Century by Timothy Snyder.

Two Lessons I would like to share from here.

Lesson 10 "Believe in Truth.  To abandon the facts is to abandon freedom.  If nothing is true, then no one can criticize power, because there is no basis upon which to do so. ..."

Lesson 8 " Stand Out. Someone has to.  It is easy to follow along.  It can feel strange to do or say something different.  But without that unease, there is no freedom. ..."

Adding Categories Doesn't Reduce the Budget: The Tale of the Engineering Expendatures

The one good thing about the Police Budget is there was a time when they were able to operate within its constraints.  The same can not be said for Engineering services.  The Engineers have never operated within budget.  Now it is possible that the ignorance of Council may have impacted this condition.  It should be noted that the highest amount of funds spent on Engineering services to date is only 22.38% of the amount budgeted for Police in 2017.

Before reviewing the numbers behind the Engineering budget for the last five years, I would like to address my understanding of "Budget" since there are some that believe that my critical review of the Police Budget may have been based on not understanding what a "Budget" is.  A Budget is a plan on how to spend money over a specified time usually between 1-5 years.  Legislative requirements dictate that for most governmental bodies in the United States from local municipal governments all the way up to the Federal Government that the official process be accomplished on an annual basis.  In fact for many smaller local governing bodies any other time frame would be next to impossible because of all the fluctuations in income and expenses locally.  1) Budgets are not written in stone and can be adjusted periodically to meet changing needs.  2)  Budget overruns could be a result of poor budgeting technique and not poor fiscal administration by department heads. 3) Budgets must be changed when there is a major event that affects spending. My personal beliefs about local government spending budgeting 1)  The budget should be strictly adhered to unless extreme events dictate a change. 2)  The Budgeting process should be a top down process where Council sets the budget and the Departments work within those constraints. 3) The budget should reflect the overall Plan of the Community including all of the service needs.  When possible, and within reason, the budget should also consider the desires of Delmont's Citizens. ( An example of this is the recent interest in Tennis Courts).

Often times in small communities, budget changes are proposed at the council meeting, discussed briefly, voted upon, and then accepted.  I will take up the subject of the Council Meetings themselves in another post.  I am not talking about decisions involving only a couple of hundred dollars; but rather, ens of thousands of dollars or more.  Delmont does not have the fiscal luxury to make such major decisions so late in meetings,.  After a long meeting, most everyone is tired and eager to conclude business.

Five Year Review of Engineering Expenditures

Description	2012	2013	2014	2015	2016
Budget Amount	$25,000.00	$30,000.00	$30,000.00	$40,000	$40,000
Amount Spent	$29,917.17	$39,771.23	$55,554.34	$63,028.97	$33,447.12
Engineering Pump Station	N/A	N/A	N/A	N/A	$11,255.28
Road Engineering	N/A	N/A	N/A	N/A	$16,430.45
MS4	N/A	N/A	N/A	N/A	$9,718.71
Real Total	N/A	N/A	N/A	N/A	$70,851.56

Since I was elected the Engineering budget has been a concern to many fellow Council members.  Some Council members were suggesting changing Engineers; in fact, I met with another Engineering firm making inquires.  Engineering costs would initially higher to ensure all information was present, and changing firms when there is regulatory involvement can make it more challenging.

But if we take a close look at the numbers we need to ask the question, "Are the engineers disregarding the budgetary constraints, or was the initial budget inadequate?  Perhaps it is a combination."  Another interesting point is in 2016 the Engineers came in under budget, but there were 3 new cost centers added that means in reality money spent would be $30,851.56 over the allotted amount.  2013 was the last year a fair amount was given by Council.  The sequential years Council gave a Budget figure lower then the actual amount spent.  The entire amount of Engineering money spent represents approximately 7% of total budget.  

The important things to remember are the Borough now operates the pump station, and regulations for MS4 and storm water are going to be increasing.  I believe that the three new areas were added to better track expenditures then to cover the extra expenditures.   

It is my opinion that as much information as possible concerning quality of Engineering versus amount of money spent be analyzed, weigh the initial expense if new Engineers are desired, check any possible legal implications of change if desired and do it.  Complaining about the Engineers exceeding faulty Budget numbers is not productive.