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Unethical or just ignorant? Listen to the video for my opinions and read my blog below:
This video is about the misleading and false representation that we have a $3.8 million dollar surplus IN THE 2020 BUDGET.
It indicates in my opinion that our supervisors and our Finance Director do not know what they are doing. INTRO @ 00:01
First Clip(from 3.9.20 video meeting): creation of equipment fund: @ 4:34
Here Mrs. Savage clearly states the creation of a capital equipment fund and moving $5 million of sewer fund proceeds into this fund. This fund is not part of the annual budget process yet she insists that it be part of the funds added to determine if we have a budget surplus. Does everyone understand now? How they attempt to cloud the true budget information for 2020. We have a deficit folks and Mrs. Savage and the board are hiding it. Why? How does this affect our community? They are subsidizing our taxes, when the sewer money is gone we can expect large tax increase....but these people will be gone. David Speece plays ignorant but he knows because I discussed this with him. This budget mess was orchestrated under the regime of John Cusatis in 2019 while he was chairperson. I witnessed the most strange budget process I have ever seen in my 40 years in finance. To summarize, They created a new fund, called it the capital equipment fund, added it to the other funds and then told us that adding up the balances of our funds that we had a $3.8 million surplus. Our staff and our supervisors after repeatedly told/explained that this was not a surplus but were funds from the sewer plant refused to admit this and address/explain and consider the true deficit.
2nd Clip(from 1.13.20 supervisors meeting): Claims no deficit but a $3.8 million surplus Its a typo !!! @ 4:55
Make no mistake, we have a budget that has a built in deficit and there is no way to dispute this! Exeter Township supervisors meeting short clip from the Jan. 13th meeting in the library. You will hear Jen Savage our Finance Director and now temp treasurer tell us there is no budget deficit and you will hear me challenge her assumption. She says there is a $3.8 million dollar surplus because she adds all the fund balances together. But you can't do this and accurately state we have a surplus. Why? because they created a new fund and moved $5 million into it from the sewer proceeds. This covers up the deficit. Is she just inexperienced or purposely lying to our community? What we and they need to look at is the revenue for the General fund and does it cover all of our expenses and it does not. First, there is a typographical error, then listen carefully how she says adding up all funds. This is not about all funds, some funds have their own unique income streams. The only fund we are concerned with here is the "General Fund" which is about 99% our budget and is derived from real estate taxes and income taxes along with miscellaneous fees. What she/they have done is create a new fund and moved $5,000,000 into it from the sewer fund and added this amount to the budget, essential hiding the true deficit.
3rd Clip (1.27.20 supervisors meeting): Mr. HOWELL asks about $3.8 million surplus @ 8:08
Mr. Tom Howell asks an excellent question. This is the meeting where David Speece said the $3.8 million dollars surplus claim would be addressed. ( See 1.13.20 meeting video) but as you hear it here it never was addressed. But you do hear Jennifer Savage once again clearly state that we have a $3.8 million budget surplus for 2020. This is completely false and misleading. In another video clip You can see this if you look at the Budget forecast for the "General Fund" only. This is our main fund, our budget essentially. You will hear Mrs.Savage claim the our revenue exceeds our expenses but this is not true. It is all covered up by the Sewer fund proceeds. LISTEN CLOSELY AS SHE CLAIMS REVENUE EXCEEDS EXPENSES AND THAT IS WHY WE HAVE A SURPLUS.
4th Clip(3.9.20 supervisors meeting) Mrs. Reilly asks where is the money coming from to cover lost revenue? HEAR MRS. SAVAGE CLEARLY ARTICULATE THE GENERAL FUND WAS BALANCED WITH SEWER FUND MONIES. @ 11:04
Great Question: Where does the money to cover the reduction in taxes come from?
Ask yourself this question: IF I HAD A $3.8 MILLION DOLLAR SURPLUS, WHY WOULD I NEED TO BALANCE THE BUDGET?
You heard Mrs. Savage say that the Budget was balanced by moving the INTEREST EARNED on the sewer proceeds along with back sewer bill payments.
IF you look at the budget the interest amount is $600,000 and the back sewer bill payments are $1,200,000.
According to Mrs. Savage and Mr. Speece this will be re-approved each year creating a $1,800,000 budget deficit. ( the additional $600,000 is, we are told to come from interest on the sewer proceeds)
HERE IS MY QUESTION: Last Chapter: @ 13:40
IF THE 2020 BUDGET HAS A $3.8 MILLION SURPLUS WHY WOULD WE NEED TO BALANCE THE BUDGET WITH INTEREST EARNED ON THE SEWER PROCEEDS AND RECEIPTS FROM BACK PAYMENTS FROM CUSTOMERS?