Despite difficulties presented by the struggling local and national economies, Lower Pottsgrove Township says it is on budget at mid-year.

SANATOGA PA – Despite a local economy that seems to just stumble along without picking up much speed, Lower Pottsgrove (PA) Township’s Board of Commissioners have good economic news of their own: revenues and expenses in the municipal budget at mid-year 2010 are on track, their finance director has advised.

• Commissioners are scheduled to hold their first meeting of August tonight at 7 p.m. in the municipal building, 2199 Buchert Rd., Pottstown PA. It is open to the public. As of 6 a.m. today (Monday, Aug. 2, 2010), no agenda for the meeting was available. When an agenda is ready it usually can be downloaded from the township website, here.

Here’s what’s up, and down, in the budget so far, according to Finance Director Michele Christman, who offered a report during the board’s July 22 meeting:

UP – Earned income tax collection. It represents the bulk of the township’s revenue to cover costs of running the government. Through June, or 50 percent of the year, Christman said, Lower Pottsgrove had collected 74 percent of the money it anticipated.

DOWN – Contractor registration fees. Before state regulations changed last year the township made a significant amount of money annually from registering home improvement and repair contractors to do business within its borders. Registrations during 2009 brought in $21,000. Because of the state change, Christman said, the township budgeted less than half that amount, only $12,000, this year. Even that was too generous; so far, it’s earned just $5,100 in such fees.

DOWN – Building permits. Too many homes already on the market, too little mortgage money available, greater difficulty in obtaining mortgages, and fears over where the economy is headed has substantially dampened new construction, Christman noted. Anticipated revenue from township building permits is off more than 70 percent, and even that was greatly scaled back from 2009.

UP – Advertising costs. Much of the township’s advertising expenses are incurred in legal notices published by its newspaper of record, The (Pottstown PA) Mercury. Through June advertising costs are over budget, according to Christman.

DOWN – Investment interest. Pick any investment vehicle – Lower Pottsgrove’s looked at most of them, Christman promised – and you’ll find few currently pay interest worth talking about. Interest rates kept low by the Federal Reserve as a means of boosting the national economy have depressed what financial institutions are willing to offer for any kind of short- or long-term savings. The township crossed its fingers and hoped for $20,000 in interest revenue during 2010, she said; so far it’s earned about $3,500.

UP – Police department legal costs. Due to a police officer injury matter that could be resolved this month, according to Solicitor R. Kurtz Holloway, this line item is already at 114 percent of budget with six months remaining, Christman said.

UP – Remember winter? Remember record snowfalls? Plowing township roads to keep them clear isn’t cheap, Christman noted, and the extreme weather earlier this year was costly. There’s good news coming from Harrisburg, though; Christman said the state Legislature had approved more reimbursements for townships hard hit by the snows. That money is expected to arrive soon.

Despite its problems, cost-cutting and other savings in its operations are keeping the township on budget, Christman reported. “We’re pretty much on target,” she said.

Related (to the Lower Pottsgrove Board of Commissioners’ July 22 meeting):

• Township On Budget, Despite Economic Bumps
• Township In The Market For Public Works Help
• Civil Service Commission Swaps Members
• Eagle-Eyed Secretary Saves Township Money On Paving
• Planning Chairman Dailey Resigns, Effective December
• Occidental Reservoir Removal Wins Board Approval
• Commissioners’ Hearing Tonight On Reservoir Removal

Photo from Clipart.com

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