Explainations
09-2010
It has been a rather tumultuous ride over the past few months with all of the changes from the state, the tax bills, the sewer fee and all of the confusion which surrounded them. Let me start of by explaining the sewer bill and its implications.
As I have mentioned several times in the past Audubon faced uncertainty the likes of which have not been seen before. We started this year with a $1.6 million deficit which was a direct product of loss of revenue from construction fees; lower tax collection rates, payment of deferred monies (pension and library) as well as several other contributing factors. We were forced to reduce the number of police officers, furlough public works employees and reconfigure the clerks office by going to a shared service arrangement which I will explain shortly. Additionally in order to keep the sewer department functioning we were forced to reinstate a sewer fee which is used as an offset to what we currently spend on our aging infrastructure.
First I will explain the sewer fee. The fee, for residents, is $10 per month or $120 per year. The bill you received is for 75% of this year so most bills will read $45 / $45. Next year your bill will be again on a 2-part form but will be $60 / $60. This is not a quarterly bill but a biannual bill. I apologize for the confusion that may have occurred.
Regarding the Borough Clerk’s office we were fortunate enough to enter into a shared service agreement with the borough of Magnolia which will save Audubon about $16,000 this year and over $47,000 next year. Although it was a difficult decision it was unavoidable.
So the big question that is asked now is “How do we look for next year”. The answer is not easy as we do not know what next year will bring but rest assured that we are in a far better position to keep taxes in control without jeopardizing the quality of life services this town is legendary for.
Lastly, to finish on a much brighter note, as part of our energetic and creative cost cutting this year we are very pleased to announce that we were able to reduce the tax increase from $180 to $140. This savings of $40 on the average home will be reflected in the next tax payment.
As always please feel free to contact me directly with any question and I will do my best to answer.
Thank you for understanding, patience and support.
Commissioner Bill Gannon
Director of Revenue and Finance
NEW YEAR WISH
12-2009
It was a good year, it was a troubling year. A year which presented us a reason to laugh and a reason to cry. The one thing that we all need to have is hope. Hope that things will get better. For me personally this has never been more relevant.
Unfortunate events and difficult decisions happened this year. These included the successful application for a tax waiver from the local finance board and the loss of a shared service contract with Audubon Park which precipitated the layoff of three fine police officers and these are only a few examples.
But as the New Year approaches let us not dwell on the difficulties but look back at the some of the good things both big and small.
·We all had a lot of fun at the July 4th celebration which as always thrilled the child in us.
·We had improvements made to the Sr. Center and more to come which had little to no impact on the taxpayer.
·We had several very successful community group sponsored events and fund raisers like golf outings, beef and beers, children’s dances and fashion shows which demonstrates the generosity of our close knit town.
·We received grants that allowed us to repave some of our streets as well as monies to help public safety with speed sensing signs which improve the quality of life.
·The fire department once again did a fantastic job with the holiday parade even though I am convinced they tried to knock us off the back of the ladder truck with low hanging branches (I of course am kidding).
These are just a tiny sampling of the good that has happened this year. I also know that regardless of what comes next year I can count on the people of Audubon to come together and get through it with our heads held high. This is what makes Audubon the greatest place to live. This is why I love this town so much and wanted to be involved. You are the spirit of Audubon and my New Year wish is that our spirit only gets stronger.
A very sincere Happy New from the Gannon family.
Cheers!
Commissioner Bill Gannon
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Extraordinary Aid
Monday, August 17, 2009
Many of you have probably heard that we were recently notified about the denial of extraordinary aid from the state. Let me explain what this really means but first I would like to dispel an unfounded and misconceived rumor that your taxes will skyrocket. This is just not the case. The estimated bill you received took into consideration the potential denial so there will not be another large hike.
Extraordinary aid is given to towns in dire need and the state determined we were not one of them. We have contacted Speaker Roberts office several times, and even paid a personal visit, to see if there is anything we can do. When we hear we will certainly pass along those reasons to you.
I want to assure you that we are not sitting idly by waiting for handouts. We are....…
1. Actively contacting the state and county legislature.
2. Aggressively looking for additional sources of revenue through
partnerships & services with other communities.
3. Looking at every way possible to pinch a little extra from every departmental
budget.
4.Applying for grants for everything from joint municipal studies to community
block development grants.
5.Repurposing borough assets from one department to another to avoid even
the smallest of capital expenditures
There are also many other ways we are striving to save money which include the creation of a cross departmental organization designed to consolidate infrastructure and technology expenses which include software, hardware and telecommunications. The goal of these initiatives is to improve efficiency and lower costs, which can help preserve the quality of life the residents of Audubon have come to expect.
I, as well as the other commissioners, am always available to answer your questions. I ask you do not succumb to rumors or innuendo and come directly to us for the truth. As always we are here to serve this community.
Yours truly,
Commissioner Bill Gannon
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Financial Update
Wednesday, July 29, 2009
As you are all probably aware Audubon is going through a difficult period financially which is due to the recession and other contributing elements like debt and declining state aid. It is incumbent upon us, now more than ever, to be as proactive as possible in conserving cash and looking at ways in which to increase revenues from outside sources. We are looking at long term strategic decisions which will also have a positive impact on the years to come.
The Borough is also facing unprecedented funding challenges for our current services as well as the library which was originally unfunded in the previous administrations introduced budget. Rest assured that we are going to fund the library as publicly stated by Mayor Ward during our July 21st commissioners meeting. There is a State statute which requires us to fund it through a mill calculation which translates to approximately a quarter of a million dollars.
Here is an overview of the situation we need to overcome. While the municipal portion of the taxes is approximately 25% of the total tax collected the borough is responsible by law to pay 100% of the levy to the school system and the county which together make up the other approximately 75%. This additional outlay is on top of our usual and budgeted operating expenses. These monies must be paid despite the fact that we are experiencing lower than usual tax collection rates in response to the poor economy and other economic factors. Add to this a declining surplus and the loss of income from services to other municipalities and we find ourselves facing the perfect storm of financial problems.
I can tell you honestly that we are facing all of these issues head on. We are not just concerned about today but are planning for tomorrow. We, as a community, will survive and once again thrive in the years ahead.
We sincerely ask residents to please be patient and understanding as we forge a new path in these very difficult times. In turn we will keep the public informed of our progress. As always we invite anyone interested to contact us and we will do our best to answer questions openly and honestly.
Yours truly,
Commissioner Bill Gannon