I'm sure that you have been waiting for the other shoe to fall, so here is the story from the Somerset Daily American:
http://www.dailyamerican.com/da-ot-indian-lake-proposes-21-percent-tax-increase-20111117,0,2044172.story
This story was also picked up by Johnstown TV, Channel 6. I did not know they knew we existed.
Please note that this is a preliminary budget. It will be advertised, available for public review at the Borough Office Building, and not voted upon until December 14th Council Meeting.
A few things that I would add to the reporting of this story, which I think is critical information to understanding the current situation;
-Your dam is stable, the remaining work, called Phase III, is to contain or pass the Maximum Possible Flood, a condition that might happen once in a lifetime, or longer, if ever. These requirements were changed and the two possible solutions are to contain the MPF by raising the height of the dam, or enlarged spillway capacity. Raising the height of the dam is by far the less costly option, however it requires signing of Flowage Easements by every water front property owner, Park Lots included. Your Council is fully committed to the first option and the budget is based upon that happening.
-In 2012 we will be moving from short term financing of the dam remediation to permanent long term financing. We have been living off a line of credit which requires us to pay interest only, in 2012 we will put in place a financing plan to pay off the borrowed money. Barring the unforeseen this should be the last tax increase due to this project.
Friday, November 18, 2011
Thursday, November 10, 2011
2012 Budget
Writing and passing a budget for Indian Lake Borough is not an easy process and one that brings with it difficult decisions. For 2012 it is an especially difficult process.
By law the Borough must pass a balanced budget by the end of the year. Before that we must advertise our Tax Rate Ordinance and Budget. The tax rate must be submitted to the County Assessment Office by December 23rd.
Your Borough Council worked until midnight Wednesday evening and even then had to schedule another special session for next Wednesday. There was a second Council Meeting in October just to work on the budget. I cannot express our sincere appreciation loudly enough for all the work that our Borough Manager, Theresa, has done and continues to do for us on the budget.
The big ugly bear in the closet is the Dam Remediation Project. The Borough currently has a seven and one half million dollar ($7,500,000.00) line of credit with Somerset Trust. We presently have borrowed approximately five and a half million from this line of credit. We are obliged to pay only interest on the amount of money borrowed. This year we paid against the borrowed principle the money recouped from the sale of the excess 30" gate valve and the full amount of the 2010 tax increase, 3 mils. This line of credit expires in May 2012, we need to have an alternative in place no later than June.
Your Council has decided to bite the bullet and procure long term financing for the project now, as soon as we can. We will start paying off this debt, plus the cost of Phase III, in 2012.
Difficult decisions will have to be made in regard to the budget, taxes will definitely go up. There is no way to maintain the essential services to the Borough without both of these actions.
One big word of caution, all this is predicated upon obtaining 100% of the Flowage Easements from all waterfront property owners. Without these our cost for Phase III will rise another 2 to 2.5 million dollars. Please ask your waterfront neighbors if they have signed and submitted their Flowage Easements.
By law the Borough must pass a balanced budget by the end of the year. Before that we must advertise our Tax Rate Ordinance and Budget. The tax rate must be submitted to the County Assessment Office by December 23rd.
Your Borough Council worked until midnight Wednesday evening and even then had to schedule another special session for next Wednesday. There was a second Council Meeting in October just to work on the budget. I cannot express our sincere appreciation loudly enough for all the work that our Borough Manager, Theresa, has done and continues to do for us on the budget.
The big ugly bear in the closet is the Dam Remediation Project. The Borough currently has a seven and one half million dollar ($7,500,000.00) line of credit with Somerset Trust. We presently have borrowed approximately five and a half million from this line of credit. We are obliged to pay only interest on the amount of money borrowed. This year we paid against the borrowed principle the money recouped from the sale of the excess 30" gate valve and the full amount of the 2010 tax increase, 3 mils. This line of credit expires in May 2012, we need to have an alternative in place no later than June.
Your Council has decided to bite the bullet and procure long term financing for the project now, as soon as we can. We will start paying off this debt, plus the cost of Phase III, in 2012.
Difficult decisions will have to be made in regard to the budget, taxes will definitely go up. There is no way to maintain the essential services to the Borough without both of these actions.
One big word of caution, all this is predicated upon obtaining 100% of the Flowage Easements from all waterfront property owners. Without these our cost for Phase III will rise another 2 to 2.5 million dollars. Please ask your waterfront neighbors if they have signed and submitted their Flowage Easements.
Friday, November 4, 2011
Tuesday, November 8, 2011 is ELECTION DAY
Thanks to you, I have been serving this community as a member of Borough Council for a year and 10 months. It has been rewarding, it has been trying, but most of all it is work that needs to be done.
Your support of your elected officials is very important. You demonstrate support by first and foremost voting.
Therefore I ask you to vote this coming Tuesday. Vote for those candidates who stood up, ran in the primary, and are now on the November ballot. They have volunteered to work for you for the next four years, show them that you appreciate their willingness to work for our community by casting your vote tomorrow.
Thank you
Your support of your elected officials is very important. You demonstrate support by first and foremost voting.
Therefore I ask you to vote this coming Tuesday. Vote for those candidates who stood up, ran in the primary, and are now on the November ballot. They have volunteered to work for you for the next four years, show them that you appreciate their willingness to work for our community by casting your vote tomorrow.
Thank you
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