Glass City Jungle

This came in about 13 hours ago via email – I wanted to format it in a similar fashion to how it was sent to make it easy for those of you looking for a specific item, it is the October 2009 Newsletter from Sylvania Township Trustee DeeDee Liedel:

Greetings!

With the election less than a week away, I wanted to touch on one final topic regarding the improvements and changes that we have made at Sylvania Township – fiscal accountability.

Hanley & Liedel Pledge: No New Taxes!

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.)

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).

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.

Police Fund: 11.85 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.

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.
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.

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.

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Please, forward this email to other voters in Sylvania. There are six days left before the November 3rd election, and it is important to get the truth out to residents of Sylvania, so that we can remain a Quality Community You Can Afford to Live In.

Sincerely,

DeeDee Liedel
Sylvania Township Trustee