As a community and country, we are experiencing an economic downturn that we have not seen in more than a generation. Families and businesses are having to make do with less - business revenue and personal income are down, and we have less discretionary money to spend. Meanwhile, the price of everyday items such as gas, groceries, utilities and the like are at least holding steady if not increasing.
The Sylvania community is nearing one of the highest taxed communities in Lucas County. While taxes are necessary to support quality services such as: the school system, senior center, safety services, infrastructure, recreation and park systems - it is equally imperative that Government Leaders provide quality service at a reasonable cost and successfully plan and save for future services, so as not to create an undue tax burden for its citizens.
Over the last few years we have improved service efficiencies, implemented cost saving and spending control measures throughout the township. As a result our reserves have increased over $6 million in the last three years and the Township was awarded the highest financial bond rating in Lucas County placing us in the top 10% in the State! Our annual budget process now includes a rolling five-year projection, enabling us to see year-to-year the status of necessary funding to maintain township services. With this level of 'savings' we can commit to maintaining excellent services in Sylvania Township while not increasing your taxes.
We are committed to helping you make it through this economic downturn - we will not raise taxes in the next four years. Your family has to live within its means, our families have to live within our means, it's about time government does the same.
While others may say they are against tax increases and may even promise not to raise taxes, look at what has been said and how people have voted. It is easy to make a promise based on someone else's hard work. But it is Pam and I who have actually followed through on fiscal restraint and lowering taxes, putting the township in the position of being able to not raise taxes for at least four years (and maybe longer).
(Disclaimer: I will note that the pledge of no new taxes does not apply to special assessments when petitioned for by a segment of residents for things such as street lighting, etc.)
Showing posts with label Budget. Show all posts
Showing posts with label Budget. Show all posts
Wednesday, October 28, 2009
Fiscal Restraint In Action
Prior to my election, one of my concerns with Sylvania Township was the drastic increase in spending, including spending increases four times the rate of inflation. I campaigned on fiscal restraint and accountability and now I want to show the results of what can be done fiscally, while maintaining quality services in Sylvania Township.
(Note: the following numbers exclude any capital transactions especially those related to the fire department's voter-approved capital plan).
(Note: the following numbers exclude any capital transactions especially those related to the fire department's voter-approved capital plan).
Fire Fund: 11.5% Increase
Fire Fund: Since 2006, spending in the fire department has increased 11.50% compared to a Consumer Price Index increase of 10.24% (from December 2005 to December 2008; I'm using December because that is realistically when we finalize our budget and what we expect to spend for the following year). The 11.50% increase includes the addition of 5 new firefighters as per the March 2008 Levy Proposal approved by voters. That means we will increase manpower without going significantly outside of inflation.
This was possible through diligent review of expenditures, careful planning and fiscal restraint. With cost efficiencies and fiscal discipline, we were able to 1) stop the borrowing the fire department had become dependent upon; 2) hire 5 new firefighters; 3) begin to repay the general fund the monies the Fire Department had borrowed and perhaps most importantly, 4) maintained the quality service our community expects and deserves.
This was possible through diligent review of expenditures, careful planning and fiscal restraint. With cost efficiencies and fiscal discipline, we were able to 1) stop the borrowing the fire department had become dependent upon; 2) hire 5 new firefighters; 3) begin to repay the general fund the monies the Fire Department had borrowed and perhaps most importantly, 4) maintained the quality service our community expects and deserves.
Police Fund: 12% Increase
Police Fund: Spending increased 11.85% in the police department compared to an inflation rate of 10.24%. The one-and-one-half percentage difference is relatively negligible, and amounts to less than $100,000 of a $6.7 million annual budget. Service has remained constant, training has increased drastically, and the 2005 Police Levy which was originally projected to last only until 2009, is now projected to last until 2013. The extension of the 2005 levy is in addition to the trustees' taking a tax holiday on an older police levy, saving township property owners $2.7 million.
Road & Bridge Fund: 33% Increase
Road & Bridge Fund: Spending on roads and our infrastructure has increased dramatically in the last four years and this is a good thing for our community. The Road and Bridge funds have seen a 33.20% increase in spending since 2006. Initially I'm sure this seems contrary to my position of fiscal discipline. But as I mentioned in prior discussions, we have returned the focus of the Road Department to our infrastructure in order to maintain quality roads and drainage systems. For example, in 2003 and 2004 the Township only repaved 1 mile of road. We need to resurface 6-7 miles a year in order to stay on a 20 year maintenance schedule (the typical life-span of residential roads). We have resurfaced over 30 miles of road since 2006.
So although our spending in the Road department has increased 33%, our service delivery to township residents and businesses has considerably expanded and improved. No longer is the road department simply picking up leaves and plowing roads; they are focusing on the very infrastructure that upholds our quality community. Fiscal restraint isn't just about spending less money; it is prioritizing the money we do spend so that we are spending it wisely and with focused priorities.
So although our spending in the Road department has increased 33%, our service delivery to township residents and businesses has considerably expanded and improved. No longer is the road department simply picking up leaves and plowing roads; they are focusing on the very infrastructure that upholds our quality community. Fiscal restraint isn't just about spending less money; it is prioritizing the money we do spend so that we are spending it wisely and with focused priorities.
General Fund: 23% Increase
General Fund: The General Fund provides funding for any township services not covered by fire, police and roads such as our accounting department and zoning. Spending in the General Fund has increased almost 23%. (For my calculations, I did not consider loans to the Fire Department 'spending' from the general fund, as that would be double-counting money that was spent by the Fire Department). The Trustees approved this spending increase for several reasons.
First, we have stepped up enforcement in the Zoning Department, including adding one full-time employee and a Certified Planner to help address some of the zoning and planning issues the Township faces. We have also hired a full-time Budget Director. Sylvania Township is an entity with a $24 million budget and a $10 million capital plan and employs over 150 people. We need someone who can oversee our budget and investments on a daily basis, as well as help each department with long-term planning. We are no longer reactionary in our fiscal policy, we are proactive and that benefits every department in the Township.
Finally, the general fund has taken on the expense of leaf and brush pickups. In the past, these were expenses of the Road Department but state law clearly directs that these services can only be provided in townships if the money comes out of the general fund, not money dedicated to maintaining and improving roads. So while this is an increase in spending for the General Fund, it was money that was already being spent but was accounted for in another fund.
Also, a $500,000 loan from the Road Department to the General Fund was repaid, which increased spending in the General Fund. This loan was made several years ago (before I became a trustee) in order to keep the Fire Department afloat. While this money was not intended to be paid back when it was borrowed, we felt it was appropriate since the Road Department is funded off of revenue from the unincorporated township while the Fire Department provides services to the unincorporated areas and the City of Sylvania.
First, we have stepped up enforcement in the Zoning Department, including adding one full-time employee and a Certified Planner to help address some of the zoning and planning issues the Township faces. We have also hired a full-time Budget Director. Sylvania Township is an entity with a $24 million budget and a $10 million capital plan and employs over 150 people. We need someone who can oversee our budget and investments on a daily basis, as well as help each department with long-term planning. We are no longer reactionary in our fiscal policy, we are proactive and that benefits every department in the Township.
Finally, the general fund has taken on the expense of leaf and brush pickups. In the past, these were expenses of the Road Department but state law clearly directs that these services can only be provided in townships if the money comes out of the general fund, not money dedicated to maintaining and improving roads. So while this is an increase in spending for the General Fund, it was money that was already being spent but was accounted for in another fund.
Also, a $500,000 loan from the Road Department to the General Fund was repaid, which increased spending in the General Fund. This loan was made several years ago (before I became a trustee) in order to keep the Fire Department afloat. While this money was not intended to be paid back when it was borrowed, we felt it was appropriate since the Road Department is funded off of revenue from the unincorporated township while the Fire Department provides services to the unincorporated areas and the City of Sylvania.
Increased Reserves Provide Future Service Stability
Although spending has increased in the General Fund, we have been able to substantially build the township's cash reserves, from $675,000 to over $7.0 million. Some of this money is the result of estate tax receipts received by the township of $4.4 million during my term as trustee. But it is interesting to note that in the five years prior to my term, the Township had received $4.2 million in estate tax receipts - and the cash reserves were 1/6 of that. It is not so much that we received substantial estate taxes, but that we didn't spend them.
The cash reserves that we have built up are important because they will help insure quality services for the next several years as our community and region works its way through the bad economy, including a decline of property tax revenue of about $500,000 for the township due to a drop in property values. We can continue to provide quality services without going to the taxpayers for more money because we have built up these reserves. If we had not, if we have continued the prior practices of spending most of what the township had - we would be in the unfortunate position of having to ask for more taxes or reducing services. But because we have been diligent and conscious of our spending, we are ready - and I am committed - to making it through the next four years without raising taxes.
The cash reserves that we have built up are important because they will help insure quality services for the next several years as our community and region works its way through the bad economy, including a decline of property tax revenue of about $500,000 for the township due to a drop in property values. We can continue to provide quality services without going to the taxpayers for more money because we have built up these reserves. If we had not, if we have continued the prior practices of spending most of what the township had - we would be in the unfortunate position of having to ask for more taxes or reducing services. But because we have been diligent and conscious of our spending, we are ready - and I am committed - to making it through the next four years without raising taxes.
Result: Rate of Inflation + Levy
In total, Sylvania Township's budget has increased about 16% (excluding capital items) over the last 4 years during a time when inflation increased just over 10%. This 6% difference equates to a total spending increase in excess of inflation of $1.2 million from 2006 to 2009, or basically the operational portion of the Fire Levy that was passed in March 2008. Maintaining government spending to the rate of inflation plus voter-approved levies is, in my opinion, the proper way to run government and defines fiscal restraint.
We also received an update of our spending through September 2009 at a recent trustee meeting. With 3/4 of the year over, departments have spent 65-70% of their annual budget. A few line items are over budget, but overall spending is below expectations.
We also received an update of our spending through September 2009 at a recent trustee meeting. With 3/4 of the year over, departments have spent 65-70% of their annual budget. A few line items are over budget, but overall spending is below expectations.
Wednesday, October 7, 2009
Tax Holiday Extended in Police Department
As we begin the 2010 budget process, the Sylvania Township Trustees unanimously voted to extend the tax holiday that I first introduced in 2007. In total, this tax holiday will save Sylvania Township taxpayers $1,050,000 in 2010 and approximately $2,700,000 over three years.
We took this step because the Police Department is on sound financial footing while maintaining quality service levels that the Township has come to expect. This was possible through the hard work and dedication of our officers and department staff in watching expenses, while at the same time we negotiated reasonable raises and bonuses for these employees, something that many other governments are unable to do during this economic climate.
We took this step because the Police Department is on sound financial footing while maintaining quality service levels that the Township has come to expect. This was possible through the hard work and dedication of our officers and department staff in watching expenses, while at the same time we negotiated reasonable raises and bonuses for these employees, something that many other governments are unable to do during this economic climate.
Friday, August 28, 2009
Resurfacing More Roads
I'll be the first to admit, most people do not get excited about road repaving unless they happen to be running late because they are stuck in the middle of a traffic jam because of road work. But repaving roads is a vital tenet of maintaining a quality community and I am pleased that Sylvania Township has finally made infrastructure maintenance a priority. One only has to look at a neighboring city to realize what happens when capital improvements are put off for too long.
In the last four years, we have resurfaced over 30 miles of township/subdivision roads. Compared to one mile of road repaved in 2003 and 2004, the 30 miles is a marked improvement. On average we need to repave about 6 miles a year in order to maintain a reasonable repaving schedule so that all roads are in good repair. Clearly, the prior board failed in this obligation when they only paved one mile in two years.
At the same time we are repaving roads, we are often repairing and replacing curbs and gutters that are crumbling and in disrepair so that the whole project is completed simultaneously. Our crews also have reconstructed numerous sidewalk ramps to appropriate handicap-grade, improving the accessibility of our community and neighborhoods while working on roads in the area.
While repaving a record number of miles, we have also strategically leveraged our road repaving dollars by working with neighboring jurisdictions and Lucas County on joint road projects and securing Ohio Public Works Commission no-interest loans and grants for repaving projects. Later this fall, we will submit a grant/loan application which we hope will provide 49% of the funding for resurfacing and drainage projects in the following areas next year: Silica Road (between Brint and Convent, a joint project with the City of Sylvania); Westacre Subdivision; Country Walk Subdivision; Country Meadow Court; and Oak Creek Subdivision. Utilizing cooperative efforts with our neighbors and supplemental funding has allowed us to do more with your tax dollars while making infrastructure maintenance a priority.
Miscellaneous Public Works Items
A few other areas where we have improved services include:
- Introduction of new brine application equipment which allows for preventative spraying of salt/brine prior to anticipated snow storms in order to prevent ice from forming on roads; this helps minimize our snow plowing and salting resources;
- Under the guidance of a Capital Plan, we have purchased new, 'green' equipment which provide more efficient operation and lower maintenance costs; we have also liquidated obsolete and unused equipment in order to reduced personal property insurance and liability expenses;
- Increased safety training in an effort to reduce workplace accident and improve the safety of residents, businesses owners, and visitors of Sylvania Township;
- Repaid $500,000 borrowed from the Road fund in order to provide additional funding to the Fire Department via the General Fund;
- Provided training opportunity for employee leading to having an Emergency Vehicle Technician on staff, one of nine techs in the State of Ohio, providing cost effective maintenance services to the Fire Department.
Thursday, August 6, 2009
Minding Your Money
All of the above has been done while maintaining a tight control on spending. In the last three years, I have pushed for and achieved a tax holiday in the police department, totaling over $2.2 million - money that you the taxpayer has been able to keep. At the same time, we have extended the life of the 2004 police levy by 4 years. The 2004 levy was originally projected to last until 2009. Current projections indicate we can delay going back to the voters for more money until 2013. This was not done easily - it takes careful planning and constant monitoring of the budget. But I am proud that we have been able to improve the services provided by the Police Department while controlling spending.
Wednesday, December 17, 2008
Government Bail Outs
While Congress contemplates various request for 'bail-outs' from the banking and automotive industries, significant requests from government entities have surfaced, including pleas from states, counties, cities, and school districts. (I have not heard of a township asking for money, but maybe I missed it).
Most of the requests are being made for 'infrastructure' or 'capital' projects that the jurisdictions 'need', projects that will 'put hundreds of people to work.' But I have to question why all of a sudden these projects need to be done now? In reality, these governments have been putting off these infrastructure projects for years in favor of funding special programs and pet projects because those get more media attention and good press for elected officials who want to be re-elected or move on to higher office. Spending such as this tends to feel more immediate impact on the community, while ignoring the much greater impact that failing infrastructure has on the viability and sustainability of a region.
I look back at the township and the status of some infrastructure projects when I took office in 2006. In 2004, the township paved 0.99 mile of roadway; in 2003 no roadway was repaved. Given that we need to repave 6.5 miles +/- in order to maintain a 20 year repaving schedule, these two years put us drastically behind. And why did this happen? Because the administration and elected officials chose to focus resources on feel-good stuff like brush pick-up and weekly leaf pick-up. They also raided the road department budget to operate the fire department.
But my point is that the township was not allocating proper resources to the road department so that they could maintain our infrastructure. Failure to maintain and repair our roads, storm drains, and other infrastructure is a costly decision, because the longer you put off infrastructure projects, the more costly they are to do. For the last three years, the trustees have unanimously agreed that we needed to refocus our attention on the township's infrastructure and structured the budget accordingly. Earlier this year, the trustees were criticized by some for not doing additional brush pickup throughout the summer storms. But our road department was involved in extensive road resurfacing projects and the cleanup of both Schlicker and Smith Ditches to prevent flooding. Despite the criticism, I believe we made the right choice to focus on infrastructure projects as opposed to aesthetic projects such as brush pickup.
Other governments have been doing (and continue to do) what the township used to do - putting resources in non-mandatory services that sound good, look good, and feel good, but in reality take needed resources away from maintaining the equipment and facilities that are needed to support keeping our roads, bridges, buildings, water, sewer and other systems in good condition. By asking for funds from the federal government, these governments are asking others to pay for their poor decisions and mixed-up priorities, while communities like Sylvania township are making those hard decisions on our own and paying for them out of our own pocket.
I am not in favor of the federal government bailing out state, local and regional government's failure to properly allocate enough resources and revenue to infrastructure projects. The voters of these communities elected their public officials; let those same voters figure out how and who should address their infrastructure needs. It is not the job of the federal government to bail these governments out, at the expense of all taxpayers.
Most of the requests are being made for 'infrastructure' or 'capital' projects that the jurisdictions 'need', projects that will 'put hundreds of people to work.' But I have to question why all of a sudden these projects need to be done now? In reality, these governments have been putting off these infrastructure projects for years in favor of funding special programs and pet projects because those get more media attention and good press for elected officials who want to be re-elected or move on to higher office. Spending such as this tends to feel more immediate impact on the community, while ignoring the much greater impact that failing infrastructure has on the viability and sustainability of a region.
I look back at the township and the status of some infrastructure projects when I took office in 2006. In 2004, the township paved 0.99 mile of roadway; in 2003 no roadway was repaved. Given that we need to repave 6.5 miles +/- in order to maintain a 20 year repaving schedule, these two years put us drastically behind. And why did this happen? Because the administration and elected officials chose to focus resources on feel-good stuff like brush pick-up and weekly leaf pick-up. They also raided the road department budget to operate the fire department.
But my point is that the township was not allocating proper resources to the road department so that they could maintain our infrastructure. Failure to maintain and repair our roads, storm drains, and other infrastructure is a costly decision, because the longer you put off infrastructure projects, the more costly they are to do. For the last three years, the trustees have unanimously agreed that we needed to refocus our attention on the township's infrastructure and structured the budget accordingly. Earlier this year, the trustees were criticized by some for not doing additional brush pickup throughout the summer storms. But our road department was involved in extensive road resurfacing projects and the cleanup of both Schlicker and Smith Ditches to prevent flooding. Despite the criticism, I believe we made the right choice to focus on infrastructure projects as opposed to aesthetic projects such as brush pickup.
Other governments have been doing (and continue to do) what the township used to do - putting resources in non-mandatory services that sound good, look good, and feel good, but in reality take needed resources away from maintaining the equipment and facilities that are needed to support keeping our roads, bridges, buildings, water, sewer and other systems in good condition. By asking for funds from the federal government, these governments are asking others to pay for their poor decisions and mixed-up priorities, while communities like Sylvania township are making those hard decisions on our own and paying for them out of our own pocket.
I am not in favor of the federal government bailing out state, local and regional government's failure to properly allocate enough resources and revenue to infrastructure projects. The voters of these communities elected their public officials; let those same voters figure out how and who should address their infrastructure needs. It is not the job of the federal government to bail these governments out, at the expense of all taxpayers.
Friday, October 3, 2008
Tax Holiday Expanded but Still Not Enough
The good news first: we have expanded the tax holiday that I lobbied for last year. We chose not to collect approximately $700,000 in property taxes for the police department this year, 2008. As we begin the budgeting process for 2009, we voted not to collect $1,050,000 in property taxes for the police department, expanding the tax holiday to township residents.
Despite reducing revenue by over $1 million, initial projections indicate that the 2004 police levy will last another 3 years. If we had not declared a tax holiday, the police levies would last an additional 10-15 years, making taxpayers today pay for services that will not be rendered for almost 15 years. That is not logical and is why I supported the decision to roll back taxes on our residents.
While this increased tax holiday is great, I don't believe it is enough. For the last three years I have been asking that we develop and implement an investment policy, a cash reserves policy, long-term plans for the general fund, and capital improvement plans for all departments. While we have not focued on these long-term financial issues, our cash balance continues to increase - we are spending less money then we collect. While at first glance this is great, the reality is that we are taking money from the pockets of our residents and businesses and we don't know if we need it or how it will be spent.
I asked that my fellow trustees consider choosing not to collect the 0.5 mill inside levy which collects about $700,000, funds a small portion of our general fund and is assessed against all township and city property owners. I made this request because I object to the township continuing to collect money with no real plans on how to spend it. I firmly believe that if government has money, they will figure out a way to spend it; that doesn't mean we need it.
There was not support for the general fund tax holiday from my fellow trustees. Part of the reason for that is the timing - we have to certify amounts to the auditor's office before we really start the budgeting process, so I'll admit that it's hard to know at this point whether or not we really need that $700,000. But I still hate the thought that we continue to collect all monies available to us while our cash balance improves.
I did secure from my fellow trustees commitments - on the record - to make sure we work to get the policies in place, the plans developed, the processes in order so that next year when we can give serious consideration to the general fund tax holiday. I will hold them to that commitment.
Despite reducing revenue by over $1 million, initial projections indicate that the 2004 police levy will last another 3 years. If we had not declared a tax holiday, the police levies would last an additional 10-15 years, making taxpayers today pay for services that will not be rendered for almost 15 years. That is not logical and is why I supported the decision to roll back taxes on our residents.
While this increased tax holiday is great, I don't believe it is enough. For the last three years I have been asking that we develop and implement an investment policy, a cash reserves policy, long-term plans for the general fund, and capital improvement plans for all departments. While we have not focued on these long-term financial issues, our cash balance continues to increase - we are spending less money then we collect. While at first glance this is great, the reality is that we are taking money from the pockets of our residents and businesses and we don't know if we need it or how it will be spent.
I asked that my fellow trustees consider choosing not to collect the 0.5 mill inside levy which collects about $700,000, funds a small portion of our general fund and is assessed against all township and city property owners. I made this request because I object to the township continuing to collect money with no real plans on how to spend it. I firmly believe that if government has money, they will figure out a way to spend it; that doesn't mean we need it.
There was not support for the general fund tax holiday from my fellow trustees. Part of the reason for that is the timing - we have to certify amounts to the auditor's office before we really start the budgeting process, so I'll admit that it's hard to know at this point whether or not we really need that $700,000. But I still hate the thought that we continue to collect all monies available to us while our cash balance improves.
I did secure from my fellow trustees commitments - on the record - to make sure we work to get the policies in place, the plans developed, the processes in order so that next year when we can give serious consideration to the general fund tax holiday. I will hold them to that commitment.
Police Union Negotiations
It's been a bit of a rough year, as our police department unions have been working without a contract since October 1, 2007. Despite this internal unrest, our police personnel have continued to serve the residents, businesses and guests of Sylvania Township to their highest ability and I appreciate and respect their dedication to our community.
During the past year, we have been diligently negotiating with all three police unions, but the process has been long as there were numerous issues that we had to address in order to increase the efficiency and cost effectiveness of the police department, while maintaining the quality service that our community expects.
Certainly, working without a contract is not necessarily conducive to productive labor-management relationships. It was not a situation that I was pleased with, but clearly we have to have a union contract structure that allows us to make the management decisions necessary to operate the police department in the best interests of the public.
But the final outcome of the union negotiations resulted in 3.0-3.5% raises for each of the next two years (plus one year retroactive); in addition, there was a $1500 signing bonus. In exchange, we have the right to implement a more cost effective health insurance plan (an 80-20 plan as compared to our current 100%/fully-insured plan) with employee contributions of 10% (up from about 2.5%) and more management flexibility in manning levels and shift supervision. We were denied our requests to set up more flexible shifts and to change the disciplinary process to a structure that would be more respectful of individual personnel.
I don't view contract negotiations as a win-win type of things; we all lose something. But hopefully now that the process is over, we can get past the unfortunate consequence of being on opposite sides of the bargaining table and focus all of our energies on providing efficient and effective safety services.
During the past year, we have been diligently negotiating with all three police unions, but the process has been long as there were numerous issues that we had to address in order to increase the efficiency and cost effectiveness of the police department, while maintaining the quality service that our community expects.
Certainly, working without a contract is not necessarily conducive to productive labor-management relationships. It was not a situation that I was pleased with, but clearly we have to have a union contract structure that allows us to make the management decisions necessary to operate the police department in the best interests of the public.
But the final outcome of the union negotiations resulted in 3.0-3.5% raises for each of the next two years (plus one year retroactive); in addition, there was a $1500 signing bonus. In exchange, we have the right to implement a more cost effective health insurance plan (an 80-20 plan as compared to our current 100%/fully-insured plan) with employee contributions of 10% (up from about 2.5%) and more management flexibility in manning levels and shift supervision. We were denied our requests to set up more flexible shifts and to change the disciplinary process to a structure that would be more respectful of individual personnel.
I don't view contract negotiations as a win-win type of things; we all lose something. But hopefully now that the process is over, we can get past the unfortunate consequence of being on opposite sides of the bargaining table and focus all of our energies on providing efficient and effective safety services.
Thursday, August 28, 2008
Just compensation
A recent Toledo Blade article took umbrage with the raises that we gave some of our administrative staff recently, particular our administrator, Mr. Thomas. While I wince at having an employee's salary subject to such open analysis because a person's income is generally a personal and private topic not subject to public scrutiny, the reality is that all of our employees are fully aware that this information is public record and is turned over to anyone who asks. That being said, I have no problem discussing my part in the decision to award these raises.
First, let's get some facts straight that the Blade did not: prior to July 1, 2008, Mr. Thomas received $105,000 annual salary plus $450 per month in a car allowance, for a total W-2 compensation package of $110,400. During our recent annual review for Mr. Thomas, we rolled his car allowance in to his salary and increased the total package to $125,000. Thus, he received a 13% raise, not 19% that the Blade reported.
The Blade takes great pains to point out several townships that pay less than we do, as well as noting that a couple of large townships do not have an administrator. One of those townships without an administrator, Marion Township in Marion County, actually has only 20% of its population (fewer than 10,000 people) in the unincorporated part of the township; the rest is located within the city of Marion which has its own separate government just as the City of Sylvania does. The other, Beavercreek Township, has only 3,000 out of a total population of 41,000 in the unincorporated portion of the township. These are hardly valid comparisons to Sylvania which has over 25,000 residents outside the City of Sylvania, but they certainly where useful in making it look like we are paying our administrator too much.
But beyond those two example, according to the Center for Public Management and Regional Affairs at Miami University (link: http://data.cpmra.muohio.edu/salary/2007Data/07data.htm), the following are administrator salaries from some of the larger townships in Ohio for 2006 and 2007:
- Colerain - $118,955 (Largest Township)
- West Chester - $121,900 (3rd Largest Township)
- Washington - $108,530 (4th Largest Township)
- Anderson - $117,157 (9th Largest Township)
- Union - $125,000 (11th Largest Township)
- Deerfield - $109,507 (32nd Largest Township)
- Harrison - $115,000 (33rd Largest Township)
Not included in the above numbers may be additional perks such as a car allowance, additional retirement allocations, or factors such as experience and education of the administrator. Also, I am not familiar with what services these townships provide; not all townships have their own police, fire, etc., while others have recreation, parks and the like.
Mr. Thomas has brought to the township a new level of professionalism, management, and oversight, providing valuable guidance and strategic direction to the trustees. No longer are our labor contracts negotiated without the assistance of an attorney; no longer do we simply sign off on any building permit or development proposal that is brought in to our zoning department; no longer do we simply add 3% to last year's budget and ignore the budget until next year; no longer do we ignore the budget impact of labor negotiations.
Thursday, June 26, 2008
The Delimma of Storm Debris
Sylvania Township has been receiving numerous phone calls and emails regarding storm debris pickup from residents expecting us to pick-up storm debris that has been placed in the roadway by residents. At the same time, we have also been fielding phone calls from residents who are complaining about neighbors who are placing yard debris in the roadway, obstructing parking spaces, making it difficult to see on-coming and cross traffic, and unsightly refuse piles. Who should we respond to, those expecting additional services or those who believe their neighbors are not tending their own lawns appropriately?
So let me start off with our policy on brush pickup. We provide brush pickup services twice a year, once in April and once in September. There is no policy to pick up storm-related debris after severe storms go through the area. On a case-by-case basis, trustees (former and current) have directed the public works department to perform brush pickup in certain areas and after certain severe weather. But there was no consistency with regard to when it was done, who received the services, or what other projects may suffer in order to provide this un-stated service.
Where does that leave us with regard to the current brush piles located in some roadways? At our last regular meeting, the trustees discussed the issue and agreed that we could not pull our crews off of some very necessary and important infrastructure jobs for the 4-5 weeks it would take to complete a township-wide brush pick-up. These infrastructure projects include long-delayed maintenance of Schlicker Ditch to prevent flooding, asphalt patching, roadside mowing, street sweeping, catch basin and storm drain repairs and resurfacing projects.
In 2008 we received $599,000 in grants and loans from the Ohio Public Works Commission for local road resurfacing and reconstruction projects. We are required to complete certain services and projects in order to receive these monies. If we do not complete these projects, in violation of our agreements, we default on the current loans and grants, and hinder our ability to receive additional loans and grants in the future.
These projects maintain our infrastructure which contributes to a quality community. If we divert resources to brush pickup, we are in essence emphasizing aesthetic priorities over the need to keep our infrastructure maintained. In the long run, failing infrastructure will be more detrimental to our community than unsightly debris in roadways after storms.
This fall's brush pickup will start September 8. If you wish to dispose of yard waste prior to that, I would encourage you to contact your private refuse company or use the free drop-off facility maintained by the Lucas County Solid Waste District at 6505 West Bancroft St.
If you have placed debris in the street in front of your house, I suggest you remove it; it is illegal to obstruct the roadway as it interferes with road safety and street sweeping. Help keep our community clean.
So let me start off with our policy on brush pickup. We provide brush pickup services twice a year, once in April and once in September. There is no policy to pick up storm-related debris after severe storms go through the area. On a case-by-case basis, trustees (former and current) have directed the public works department to perform brush pickup in certain areas and after certain severe weather. But there was no consistency with regard to when it was done, who received the services, or what other projects may suffer in order to provide this un-stated service.
Where does that leave us with regard to the current brush piles located in some roadways? At our last regular meeting, the trustees discussed the issue and agreed that we could not pull our crews off of some very necessary and important infrastructure jobs for the 4-5 weeks it would take to complete a township-wide brush pick-up. These infrastructure projects include long-delayed maintenance of Schlicker Ditch to prevent flooding, asphalt patching, roadside mowing, street sweeping, catch basin and storm drain repairs and resurfacing projects.
In 2008 we received $599,000 in grants and loans from the Ohio Public Works Commission for local road resurfacing and reconstruction projects. We are required to complete certain services and projects in order to receive these monies. If we do not complete these projects, in violation of our agreements, we default on the current loans and grants, and hinder our ability to receive additional loans and grants in the future.
These projects maintain our infrastructure which contributes to a quality community. If we divert resources to brush pickup, we are in essence emphasizing aesthetic priorities over the need to keep our infrastructure maintained. In the long run, failing infrastructure will be more detrimental to our community than unsightly debris in roadways after storms.
This fall's brush pickup will start September 8. If you wish to dispose of yard waste prior to that, I would encourage you to contact your private refuse company or use the free drop-off facility maintained by the Lucas County Solid Waste District at 6505 West Bancroft St.
If you have placed debris in the street in front of your house, I suggest you remove it; it is illegal to obstruct the roadway as it interferes with road safety and street sweeping. Help keep our community clean.
Fire Department Overtime
Earlier this year, after the fire levy was passed, a document was put together by several members of the Fire Department regarding the cost of overtime and the potential benefit of hiring more firefighters in an effort to reduce overtime. This report seemed to indicate that overtime would almost be eliminated if three firefighters were to be hired into the department.
Unfortunately, further review of the information indicated problems with the assumptions, calculations and methodology used. At our June 17 trustee meeting, Fire Chief Welsh acknowledged that the data used to make calculations was inaccurate and the methodology was flawed.
Reality is that numerous factors contribute to overtime, including training schedules, family and medical leave, military leave, minimum manning, shift holdovers, large incidents, etc. While hiring an additional fire fighter may lower some categories of overtime, it will actually increase other categories of overtime.
I am constantly reviewing financial information to make sure we are operating as efficiently as possible while maintaining the high level of services our community is used to. This includes analyzing the affects of recalling firefighters from laid-off status. At this point, due to retirements, etc., we have been able to recall two of the three laid-off firefighters. We are maintaining 52 firefighters on staff until we begin to receive the proceeds of the 1.25 mill levy next February, at which time we can begin to implement the staffing proposals of the levy.
Unfortunately, further review of the information indicated problems with the assumptions, calculations and methodology used. At our June 17 trustee meeting, Fire Chief Welsh acknowledged that the data used to make calculations was inaccurate and the methodology was flawed.
Reality is that numerous factors contribute to overtime, including training schedules, family and medical leave, military leave, minimum manning, shift holdovers, large incidents, etc. While hiring an additional fire fighter may lower some categories of overtime, it will actually increase other categories of overtime.
I am constantly reviewing financial information to make sure we are operating as efficiently as possible while maintaining the high level of services our community is used to. This includes analyzing the affects of recalling firefighters from laid-off status. At this point, due to retirements, etc., we have been able to recall two of the three laid-off firefighters. We are maintaining 52 firefighters on staff until we begin to receive the proceeds of the 1.25 mill levy next February, at which time we can begin to implement the staffing proposals of the levy.
Rocket Ventures and the LCIC
Recently, the township was approached about investing in Rocket Ventures, a venture capital group, via our membership in the Lucas County Improvement Corporation (LCIC). County Commissioner Pete Gerken encouraged the member entities of the LCIC to invest with the prospect of great returns. I have looked into the possibility of Sylvania Township 'investing' in Rocket Ventures via the LCIC and what I have found out concerns me greatly when it comes to the role of the LCIC and its member entities.
Point blank, townships are not allowed to make an investment in a venture capital fund. We are restricted to 'safe' investments, so that the taxpayers' money is not put at risk. Further review of the rules regarding townships and Community Improvement Corpoations (CICs) indicate that townships are allowed to make financial contributions to CICs to help defray administrative expenses, but we are not allowed to give additional monies.
Basically, the suggestion that the township's use the LCIC to side-step our restrictions on 'safe' investments is not allowed under the Ohio Revised Code (ORC). This attempt to invest in a venture capital fund by way of the LCIC is illegal and something that I will not support.
I have also talked to several people regarding the county's ability to make such an investment. Per my conversations, the county is under similar restrictions regarding their investments and therefore a direct investment in Rocket Ventures would not be allowed under the ORC. Sidestepping those laws by using the LCIC is, in my opinion, highly suspect as well.
It is my opinion that the LCIC should not be used to by-pass the laws established for the safekeeping of taxpayer funds. If our member entities cannot directly make this investment, we should not allow the LCIC to be used as a middleman. I am opposed to the LCIC making an investment in Rocket Ventures on behalf of member entities. If member entities have the ability to make the investment (or believe they have the ability to make the investment) they should do so directly and not drag the LCIC into this issue.
Point blank, townships are not allowed to make an investment in a venture capital fund. We are restricted to 'safe' investments, so that the taxpayers' money is not put at risk. Further review of the rules regarding townships and Community Improvement Corpoations (CICs) indicate that townships are allowed to make financial contributions to CICs to help defray administrative expenses, but we are not allowed to give additional monies.
Basically, the suggestion that the township's use the LCIC to side-step our restrictions on 'safe' investments is not allowed under the Ohio Revised Code (ORC). This attempt to invest in a venture capital fund by way of the LCIC is illegal and something that I will not support.
I have also talked to several people regarding the county's ability to make such an investment. Per my conversations, the county is under similar restrictions regarding their investments and therefore a direct investment in Rocket Ventures would not be allowed under the ORC. Sidestepping those laws by using the LCIC is, in my opinion, highly suspect as well.
It is my opinion that the LCIC should not be used to by-pass the laws established for the safekeeping of taxpayer funds. If our member entities cannot directly make this investment, we should not allow the LCIC to be used as a middleman. I am opposed to the LCIC making an investment in Rocket Ventures on behalf of member entities. If member entities have the ability to make the investment (or believe they have the ability to make the investment) they should do so directly and not drag the LCIC into this issue.
Friday, May 23, 2008
Finally, Let's Talk Money
At the end of 2007, cash resources of the Township increased by $5,737,488.46 from the end of 2006. This includes an increase of over $3.2 million in the general fund; almost $700,000 increase in the police fund; and almost $250,000 in the fire fund (this carryover balance will help maintain service levels in the fire department for 2008 until the department begins to receive the new levy revenue).
The only major fund that had a decrease in fund balance from 2006 to 2007 was the Road & Bridge Fund. The decrease was $17,000. The road department works on a different budgeting horizon, often saving up cash resources for several years in planning a large road project, so it is not unusual for the cash balance to vary greatly from year to year. Bottom line is that despite this small decrease in cash balance, the road department is in good financial position.
What does this mean, to have increased cash resources by almost $6 million to $14,282,862.35? Some believe this means we are being careful with taxpayers dollars, simply by having not spent all the money we received. (Having excess cash is good, but it is not necessarily evidence that wasteful spending does not happen.) Others believe that all of this money means we should be spending more in the fire department. (Just because we have money doesn't mean we should spend it. All township services should be efficient and effective, so that we are not wasting money. ) And still others believe that this means we should be cutting taxes and letting our residents and businesses keep more of their money.
The right answer is probably a combination of all of these. It's a delicate balance and obviously there is a wide range of opinions s to whether that balance has been met. But I continue work hard to do what I can to keep a good balance of keeping cash reserves, spending wisely, and keeping taxing as low as possible so that we stay "A Place to Grow".
The only major fund that had a decrease in fund balance from 2006 to 2007 was the Road & Bridge Fund. The decrease was $17,000. The road department works on a different budgeting horizon, often saving up cash resources for several years in planning a large road project, so it is not unusual for the cash balance to vary greatly from year to year. Bottom line is that despite this small decrease in cash balance, the road department is in good financial position.
What does this mean, to have increased cash resources by almost $6 million to $14,282,862.35? Some believe this means we are being careful with taxpayers dollars, simply by having not spent all the money we received. (Having excess cash is good, but it is not necessarily evidence that wasteful spending does not happen.) Others believe that all of this money means we should be spending more in the fire department. (Just because we have money doesn't mean we should spend it. All township services should be efficient and effective, so that we are not wasting money. ) And still others believe that this means we should be cutting taxes and letting our residents and businesses keep more of their money.
The right answer is probably a combination of all of these. It's a delicate balance and obviously there is a wide range of opinions s to whether that balance has been met. But I continue work hard to do what I can to keep a good balance of keeping cash reserves, spending wisely, and keeping taxing as low as possible so that we stay "A Place to Grow".
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