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