Today’s news items [the Mayor’s statement (with a video, too); contentious topics & more] – 1/10/2019

newspaper

Don’t pay me | US Representative Lloyd Smucker has asked that he will not be paid during the ongoing government shutdown according to a page one LNP – Always Lancaster article.

Contentious topics | Miles away from Columbia there’s a new citizen controversy happening, as evidenced  by the letters-to-the-editor in LNP – Always Lancaster. “Manheim Township residents, and others, can express opposition to this monstrosity (the development plan for property around the old Sheraton-Conestoga property across Route 272 from Oregon Dairy) to township commissioners by attending their meeting at 6 p.m. Monday at the township library.”

Following the rules | Overheard at the Tuesday night council meeting: There are lots of questions about the operations of the local school board. Seems there’s discontent and consternation about the residence of a seated board of directors member and the rather regular non-attendance of another. The board does provide for “call-in attendance” and one member has a tendency to attend this way. Why, then cannot the board have call-in prerogative for citizens? Or “live-stream” and record the school board meetings for all?


Mayor Lutz’s statement | At Tuesday’s borough council meeting, More than a few people made statements and comments. Later in the meeting, Mayor Leo Lutz read a statement; he consented to our request to reproduce his comments here:

I would like to add a few figures to go along with Council President Murphy’s comments.

For the 11 years from 2009 to 2019 the annual budget has included the use of General Fund Reserve Monies 8 of those 11 years.

Included in that was $1,552,578 for the year 2018.

The first draft of the 2019 Budget called for $ 2,704,831

The Final approved 2019 Budget calls for $ 1,280,198

Net Budget reduction of $ 1,280,198

As noted, and I want to repeat, over the past 10 years Borough Council could have increased the millage in smaller increments, these discussions took place every year during Budget talks, but due to the economy the various councils decided to not increase the millage but to use General Fund Reserve monies. Was this wise? Maybe, Maybe not. Bottom line Councils decided that it was better to keep your money in your pocket rather than in a Reserve Fund.

Think about this, as reported, the tax increase based on a home assessed at $100,000 will see an increase of about $120. That amounts to just a little over $12 per year over the past 11 years.

During that same 11 years, contract wages increased an average of 3% compounded. As did administrative wages until this year. There will be no wage increase for Management Employees.

Wages increased $821,464 from the period 2009 to present. The 1.4 Mill increase generates $455,000 and does not cover the wage increase not counting the increase in medical benefits and retirement over that same period of time.

This figure is compounded by the decision to sell the Waste Water Conveyance System for about $8,000,000. Doing this the Borough assumed an average $120,000 per year in wages that were previously paid by the Municipal Authority.

Columbia Borough created a revolving loan fund along with other economic development funds that are matched with funds from County Agencies, like a First Time Home Buyer Assistance Program and a Program to offer low interest loans to residents to make façade improvements and necessary repairs or improvements. The Borough has partnered with Lancaster County Home Opportunity Partnership and Lancaster County Redevelopment Authority with these programs.

One of the reasons for the assistance programs to home owners is based on a conversation I had with a resident who needed to replace part of her sidewalk. She did not have the money to pay for the repairs and went to the bank for a loan. Her repairs would only amount to a couple hundred dollars but was told by the bank that the minimum loan she could get was for $5,000 at about 8% interest. She did not need that amount, nor could she afford to pay on a loan for that amount. The borough created a loan program for home owners with a very low interest rate for any amount to help homeowners.

Last year the Borough Budgeted $1.5 M for a revolving loan fund (Not a Giveaway) to assist business development. This program is typically used as a bridge loan to complete the financing package for a business being developed in Columbia Borough. This year the amount of $800,000 was included in the budget. This is not an additional $800,000 to last years $1,5M. When this Loan Program was created, the Borough Council received little or no negative comment.

This program is similar to programs developed by other municipalities like Reading, Lancaster, and most recently West Chester. I have had recent discussions with other municipalities wanting to copy Columbia’s Program.

During this period, the borough donated $100,000 to the Columbia Borough Fire Company for a new Fire Police Vehicle and bought the former Columbia Number 1 Fire Company building assuming their loan with an $800,000 to $1,000,000 balance. Columbia Borough values the service of our Fire Company and its volunteers and was willing to help financially. The Borough has been fortunate to be able to lease the building with the possibility of sale.

Many compare the Columbia Borough Tax Millage with other municipalities. Here is a comparison as an example;

Manheim Township has a Real Estate Millage rate of 2.66 Mills. 1 Mill of tax in Manheim Township generates $3,152,255. This makes up 31% of Revenue, while Earned Income Tax generates 25 % of Revenue.

 1 Mill of tax in Columbia Borough generates about $325,000 and makes up 28% of Revenue, while Earned Income Tax generates 8 % of Revenue.

You can see the large disparity in Earned Income Tax Percentage. One of the important ways to keeping Property Taxes down is to increase the amount of business in the community which will grow the value of the community, create jobs and increase Earned Income.

We cannot afford business like Colonial Metals to shut down or move out of Columbia without having an aggressive Economic Development Plan to grow business and create jobs. This will increase the amount of Earned Income easing the need for more Real Estate Tax. The Borough is doing this.

Considering the fact that the Borough has not raised taxes in 10 years and has assumed those increases and costs noted combined with all the economic development and revitalization efforts, I commend this council and those council’s over the past 10 years for holding taxes to an average of $12 a year.


And below is a comment following a post at Columbia Spy‘s facebook page. At the Tuesday night council meeting, the borough manager announced that Nate Bunty would be the person who’ll be working with the borough on developing the livestreaming / archiving of the borough’s council and committee meetings. See what we mean about “in veritas facebook?”

Nate Bunty: Did you notice a basic logical problem with Norm’s argument – he thinks the loan fund is illegal because the borough code does not allow the borough to invest in mortgages THEN in the next breath complains that the Community First Fund can charge all of the interest, therefore not allowing the borough to make a return…

MAYBE the Community First Fund can charge up to the rate of interest, so the borough DOESN’T make an ROI in this way because they CAN’T invest in mortgage instruments. If the funds are loaned out and no profit is made, that keeps it legal. (I am just guessing at this, I don’t know)

Then you think, WTF would we have this program for…

WELL if you were at the meeting and stayed for the Mayors remarks, which I had posted a video of in What’s Happening until one of the moderators deleted it and put me in commenting jail, you would have heard that other municipalities locally collect much more Income Tax as a percentage of their revenues than Columbia does!

So the return in the long run for economic development is an increase in the amount of income tax collected by the borough because there will be more jobs in town.

Here is a video of the mayor’s 11-minute statement from Nate Bunty’s facebook page.

2 comments

  1. “Little or no negative comment”? The mayor is well aware that most people do not attend meetings, therefore it takes them awhile to catch up because the minutes aren’t posted promptly either. Unfortunately, many residents trust council to make wise decisions with their money. As I said before, if they’re not paying attention, they’re going to just pay. It’s not so much the lack of outcry when the ordinance itself was set up as it is once people start to follow the money. I believe there are three goals listed in the ordinance, each of which are lofty, clearly placing taxpayer dollars at risk. As far as the fire department, when they were forced into consolidation and wanted to sell the Front Street property, they could not because the borough would not release the land that the building sits on. So the borough had no other choice but to take on the building. Tax money should be going toward assisting a fire department rather than a private, for-profit business. This statement by the mayor is, by design I’m sure, more opaque than transparent.

  2. In an article for LNP, Mayor Lutz said people are tying the Revolving Loan Fund to the tax hike and that’s not true. In the same article, Mayor Lutz said if they removed the funds allocated for the Revolving Loan Fund it would ease the increase, but not erase it. So by his own admission it IS tied…when he just said that’s not true, WTF?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s