Lansdale Proposes No Tax Increase in 2014 Budget

Lansdale Borough Council is poised next month to approve a $31.7 million balanced budget with no real estate tax increase, keeping the millage rate in the borough at 3.5 mills.
Lansdale's taxes account for 12 percent of the total borough taxpayer bill, or about $399 a year. North Penn School District and Montgomery County account for 77 percent and 10 percent, respectively.
On Wednesday night, Borough Manager Timi Kirchner presented a budget overview to council and the public, which touted the borough's financial roadmap, grant successes and infrastructure improvements.
"In the last four years, we've created a template for best practices in local government. The first step was to stop dipping into savings to pay for daily operations," she said.
Kirchner said the borough took to raising revenue sources to a level that assured public safety, quality of life and growth in new businesses and housing. This led to critical infrastructure improvements and investors coming to town.
"We also raised $7 million, with several applications pending, in grant dollars for major improvements to our town," she said.
Administration also created revenue-producing projects, such as the Merck Wastewater Treatment Project that reaped $7 million for capital upgrades and $1 million in annual revenues.
Kirchner said the borough's financial position is strong, citing auditors that have affirmed strong reserves, reasonable debt and an operations budget that resulted in balanced revenues and expenses.
Kirchner touched upon Lansdale's progress in "getting (its) internal house in order" by implementing a human resources system, a purchasing system and new information technology upgrades.
"Efficiency and effectiveness is at the heart of a results-based government and technology gives us better ways to serve our customers while minimizing administrative overhead and assuring connectivity between the departments for better communication and a better work product," she said.
Lansdale is in the midst of facilities upgrades to 311 W. Main St., the municipal complex, Wissahickon Park building and 421 W. Main St.
"311 W. Main is at the heart of our downtown and is a historic structure that the facilities study revealed had significant code violations. The 311 Task Force and the steering committee recommended a business plan, a building plan and immediate restoration of the facade. This is but one example of putting the building and grounds study in motion," she said.
Kirchner said long overdue infrastructure improvements are in constant motion "with wastewater treatment, streetscape, street and utilities improvements as real life examples that studies do not sit on shelves."
"These projects represent well over $10 million of investments in the borough," she said.
Then, there is the partnership between Lansdale Borough and the Lansdale Parking Authority, of which a parking study and wayfinding project are just two main results.
The major result of that partnership is the Madison Parking Lot development project, initiated by a land transfer by council to the parking authority.
"The result is a $51 million investment by (Equus Capital) in combination with $2.5 million in grants with the promise of more," she said.
Kirchner said the budget, among many things, brings well-conceived debt service and ensures historic structures are preserved.
"The budget, as required by law, is balanced and does not require a tax increase, nor does it require borrowing from the reserves garnered from the tax increase three years ago," she said. "Our taxpayers have the assurance that the services and facilities that they own are in good shape now and into the future."
There are, however, some code permit fees that will be increased in 2014. The Reporter reports that the adjustments are revenue-neutral and would impact the final budget by about $10,000.
Councilman Dan Dunigan, who chaired the administration and finance committee, spoke on his proud success as councilman over the past four years and the recent work that went into the 2014 budget. Dunigan was ousted in the 2013 Republican Primary in Ward Three and leaves council in December.
"This was the fourth and final budget presentation that I have presided over as chairman. With (finance director) Brian Shapiro and the rest of the department heads who very cautiously and carefully monitored that budget, it's seldom that a body such as this can put a plan in motion that started four years ago and continues today," Dunigan said. 
He said that, when he came onto council four years ago, he had spent more than 40 hours a week uncovering and redeploying assets of the borough and its resources.
"To see the fourth and final rendition of a plan set in motion is gratifying to me," he said. "What I've said all along is, I've tried to put together a budget in such a position that the group that follows will have to actively work to screw it up. I think we left the borough in a fine stead. The group should be commended."