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.