The North Team have flyer going around saying they cut our capital debt service.
How could we purchase 1.3 million dollars in Real Estate and borrow nearly 2 million to reline the sewers and reduce our capitol Debt Service? The accounting term is called smoke and mirrors
Borough Debt is a complicated to understand but the simple version is until our debt is converted into a bond it is called a bond anticipatory note and is interest only. Our debt service costs are will rise dramatically
Merchantville Total Borough Debt increased from 3.5 million in 2007 to 6.2 million in 2009
We have no plans to cut the Fire and Police. These are difficult times and everything in our Budget is subject to review, but no cuts will be made that will jeopardize public safety.
If you want your Elected officials to be straight with you Vote Column 2
Steve Rogers for Mayor
Jim Moore and Pam Matukonis for Council
How could we purchase 1.3 million dollars in Real Estate and borrow nearly 2 million to reline the sewers and reduce our capitol Debt Service? The accounting term is called smoke and mirrors
Borough Debt is a complicated to understand but the simple version is until our debt is converted into a bond it is called a bond anticipatory note and is interest only. Our debt service costs are will rise dramatically
Merchantville Total Borough Debt increased from 3.5 million in 2007 to 6.2 million in 2009
We have no plans to cut the Fire and Police. These are difficult times and everything in our Budget is subject to review, but no cuts will be made that will jeopardize public safety.
If you want your Elected officials to be straight with you Vote Column 2
Steve Rogers for Mayor
Jim Moore and Pam Matukonis for Council
Democrats:
The $2 million loans for the sewer relining is not part of the municipal budget or capital budget. In fact the actual number for the sewer relining was $1.786 million. Sewer and water utilities must be self financing by state law. In other words your sewer/water bill pays for the installation, maintenance and upgrades to the sewer and storm water system in town. Each year emergency repairs by collapsed sewers were costing the borough sewer authority more that the total cost of the loans that we secured (at 0% interest for 25% of the cost and 2% interest for the balance or thereabouts) to reline the sewers. The relining will add another 50 years to the system before we have to begin replacing the lines themselves.
Once you deduct to the $2 million from their figures listed below and you begin to realize that the other bonds were actually paid off and that we were smart and secured grants for some of the other capital projects and also refinanced our existing debt to lower interest rates, one starts to realize how we effectively lowered the bond debt.
In regards to the gimmick of “Bond anticipation notes”, you will note that Bond anticipation notes can only be kept for one year and then they are required to be refinanced as permanent debt. More importantly, however, from an accounting perspective,the State requires that you account for these anticipated loans as part of your total debt immediately. Even if the loans were kept as bond anticipation notes, all of the project expenses our opposition rails against are already capitalized and included in our figure.
In fact, the total debt for the borough as of today November 1, 2010 is $3.4 million which is equal to 1.19% of the total taxable property in town, quite a low amount of debt considering the state allowable debt ratio amount is 3.5%. This total debt figure includes ALL redevelopment projects, ALL bond anticipation notes, our portion of the debt to the water authority, and ALLother capital projects in town. We did it by smart and effective municipal finance; matching our contributions with grants.
Again, real facts not attack ads and fear.
Sincerely,
Frank North, Anthony Perno & Steve Volkert
Once you deduct to the $2 million from their figures listed below and you begin to realize that the other bonds were actually paid off and that we were smart and secured grants for some of the other capital projects and also refinanced our existing debt to lower interest rates, one starts to realize how we effectively lowered the bond debt.
In regards to the gimmick of “Bond anticipation notes”, you will note that Bond anticipation notes can only be kept for one year and then they are required to be refinanced as permanent debt. More importantly, however, from an accounting perspective,the State requires that you account for these anticipated loans as part of your total debt immediately. Even if the loans were kept as bond anticipation notes, all of the project expenses our opposition rails against are already capitalized and included in our figure.
In fact, the total debt for the borough as of today November 1, 2010 is $3.4 million which is equal to 1.19% of the total taxable property in town, quite a low amount of debt considering the state allowable debt ratio amount is 3.5%. This total debt figure includes ALL redevelopment projects, ALL bond anticipation notes, our portion of the debt to the water authority, and ALLother capital projects in town. We did it by smart and effective municipal finance; matching our contributions with grants.
Again, real facts not attack ads and fear.
Sincerely,
Frank North, Anthony Perno & Steve Volkert
PS: Our opponents came to borough hall and asked Council to fire the one fire fighter in town who maintains all of the equipment and performs all of the fire inspections. I consider that a significant cut to our otherwise wholly volunteer fire department. Our opponents also asked Council to let go of our Public Safety Officer, who is considered a part of the police department. The Public Safety Officer fulfills a variety of state mandated requirements. We could not in good conscious eliminate these two positions without potentially jeopardizing public safety to our residents.
36 comments:
Mr. Rogers -
Is it true?
Are you not allowed to hold elected office?
Have you reported your intention to your employer's ethics officer and been granted permission?
Please, as you say, respond directly and "be straight"'with me.
Thanks in advance.
I wish Merchantville would put its budget on-line the way Cherry Hill does.
Then we could look at it easily and see who is playing with the numbers.
New Jersey law and Dept. of Human Services Rules have been adopted in response to double-dipping, pension abuse, influence peddling and partisan corruption.
Even a well-meaning State employee working in a developmental center for the retarded could be faced with a conflict of interest - as private agencies are constantly interfacing with municipal government to develop community homes to de-institutionalize these inmates.
That's why state employees have to be cleared by their ethics officers before seeking / accepting elected partisan office.
In the interest of full disclosure, we should note that Edward McDonnell, who is running for re-election to the Camden County Board of Freeholders is also the Executive Dean and VP of Economic Development at the Willam G. Rohrer Center, Camden County College. The Rohrer Center was opened in 2000.
In 2005 the Freeholders announced a 6-yr. $83 million capital initiative to rebuild the Blackwood Campus of Camden County College.
Maybe McDonnell was cleared by his “ethics” officer.
How did the boro "pay off" more than $3million in old debt? With what money?
If we had $3million laying around, why did we borrow money to buy the bank building?
Mayor North's explanation doesn't explain anything. Mark Brunton's quotes from the actual accounts showing some $6million in debt are more believable.
Full Disclosure you gave a great example.
If County ethics requirements were as rigorous and actively upheld as the NJ State employee's requirements are, what you describe would never have happened.
Interesting about the law - Legislators left themselves a number of loopholes often excluding themselves from the requirements.
Surprise, surprise!!!
If only Republicans were smarter and Democrats more honest. As it is, one yearns for absorbtion into a municipality so large there would be nothing that could be done about either. Then we wouldn't worry about $2 million or #2 billion or whatever it is that they are up to now.
The Repubs ask the question, "How could we purchase 1.3 million dollars in Real Estate and borrow nearly 2 million to reline the sewers and reduce our capitol Debt Service?" They provide the smug answer, "The accounting term is called smoke and mirrors." The real Republican answer is "We don't have a clue."
The Democrat answer is much more believeable. The things that the Republicans say are excluded from debt are, in fact, included in debt per the Democrats. That is a lot more beliveable.
The Republican comment regarding fire and police is also a bit lame. No where do they say they will not cut fire and police. They may have "no plan" to cut fire and police but say that "everything in our budget is subject to review." Saying "no plan" is not the same as saying "no cuts." This is very sneaky language. In any event, actions speak louder than words. They have already been seeking the demise of police and fire positions as the Democrats point out. For years the Republicans have been gleefully seeking the demise of the Public Safety Officer. Why don't they honestly come out and say that?
I don't think the Republicans are "being straight" with us in these postings and in their literature plus they exhibit that they clearly do not know what they are doing. None of these people have served in municipal government. If elected, they would learn by their mistakes which would be our costs. They have already demonstrated they are not being straight in their campaign literature; there is little liklihood they would be different if elected.
I thought Councilman Perno's rebuttal of the attacks against him was the best written piece of the campaign.
Tomorrow is the big day.
Vote Column 1, straight Democratic for a saner Merchantville.
For the SAME Merchantville.....
Better off sticking with Manny, Moe and Jack than putting Moe, Larry and Curly behind the wheel.
This appeared on Facebook:
Was back visiting Merchantville today to catch up with some old neighbors. Sorry I was a little rude to you, Jim Moore, my former neighbor, when you walked by. But I had just read the most outrageous political flyer bashing the motives of another former neighbor, Anthony Perno. You should be ashamed of yourself. The undertones of racism and classism with blatant lies are something I hope the people of Merchantville recognize. So Jim, sorry for staring at you with shock. I thought you were a better man than that.
You left, why even comment? Sounds like Russ still playing games in the town he left because of the school system.
Glad your gone......
My understanding was he left because his children had special education needs that the school wasn't equipped to handle. I don't blame him, take care of your kids first.
cruiser,
Perhaps you can answer the question:
How did we pay off over $1million in debt? If we had that kind of money why did we borrow that amount to buy the bank?
The Democrats' answer is like reading in the fog. I still don't know where the money came from or where it went.
And by the way, if you want to be called the "Democratic Party" instead of "Democrat Party" you shouldn't insult the Republicans by calling them "Repubs." It's petty.
because his children had special education needs that the school wasn't equipped to handle.
NJ public schools are required to create individual educational plans(IEP) for special children (and thought-to-be special children) with involvement and approval of parents. Parents are entitled to a free legal/educational advocate to help them in the IEP planning process and in an appeal if thought necessary. The cost or availability of personnel for approved special programs are not negating factors. Meeting the IEP requirements is a mandate.
If a parent left the Merchantville school district for alternative programming, it was not because our school "wasn't equipped to handle" the parent-approved IEP.
Our school has many weaknesses, management being one. But the school personnel from top to bottom are organized and operating on a special education model.
I have been complaining about the inefficiency of that for eight years. It is not an instance where I am known to be frequently wrong.
Cruiser, where is Mr. Perno's defense against attacks printed? I have not found it.
And is this safety officer you are talking about the same Community Affairs Officer who has so many "make-work" jobs in his job description (to justify that position) that he couldn't do them all, if he knew how?
Hope you all will step away from your keyboards long enough to vote!
Talk. Bash. Mumble quietly. But VOTE!
Our Democratic controlled is the one that supported the original 60' tall, overly dense TCE project. It's the one that fired the code officer for not pushing that development enough. It is now proposing 3 story walk-ups for the center of town.
Our Democratic controlled government bought the bank building, taking a huge gamble with our money--and losing.
When you take these kinds of actions, you have to take your lumps in the election. When you take these kinds of actions, you have shown yourself to be irresponsible.
Although a lifelong Democrat, I'm voting Republican for Merchantville this year.
As far as I know I'm the ONLY ONE who has provided an authoritative reference to debt numbers (the 2009 Borough Audit, in the North/Rogers thread).
Why didn't the Democrats cite a source in their note at the head of this thread? Could it be because they can't? Do they not have an authoritative source for thier claims?
Their claims are based on things that most people can't easily verify. How interesting.
But on at least one point they are either lying, or they're doing something illegal. They claim that bond anticipation notes must be converted to "permanent debt" within one year. The bank certainly did not convert within one year. A lie, or an illegality?
The claim of 3.4 million in debt is also a lie. CHECK THE AUDIT. IT'S THE AUTHORITATIVE SOURCE, and it says that at the end of 2009, two years later, the Total issued debt was $6,196,872.43.
And who owns the Merchantville sewer system? Pennsauken? Camden? Cherry Hill? No, MERCHANTVILLE. Merchantville also owns the debt.
Who's lying?
kt - I know first hand that the MES has tried to avoid creating special programs. It doesn't matter if you cold win that fight or not. Once you realize the school does not want to help your child its not worth a fight. Any parent faced with the prospect of forcing a school system to accommodate their child vs moving/private school will always choose the latter. Just another shot to our property values, and another reason why our small school system is profoundly broken.
In response to Mark B's posting, the criticism that all of this, from the Republicans and the Democrats, is not easily verifiable is correct. That could arguably be part of the Repubican's design in bringing up these matters so late in the campaign. If the Republicans wanted to campaign on facts, they should have done it soooner so the facts could be verified.
Your mention of the $6.2 million of debt at the end of 2009 is not relevant to what the Democrats said. The debt number they cited was as of November, 2010.
Between the end of 2009 and November, 2010 the debt could have been reduced because of the effect of the grant for the sewer bonds. If the grant was received all at once and paid off the bonds, then they are gone. If the grant pays the princiapl and interest payments as they become due, then that debt is no longer borough debt. The sewers may be Merchantville's but the debt is owned by the the grantor.
Now Safety - Mr. Perno's rebuttal was in a mailing which arrived at my house (via US Mail) about last Wednesday. Plain white mailing, business size folded card. Very plain on the outside. Did not look like campaign literature.
In the past I have heard the same description of the police officer you have provided. It is part of the long-term Republican propoganda to attack the position. I have always said that as long as there is a Merchantville it should have its own police force and it should be effectively and efficiently managed. Elected officials have to be trusted to manage it. With all of the thunder thrown at that position, I have to believe they have considered it and justified it.
Good government is not about providing jobs, it is about providing services. But it takes jobs to provide services and those jobs should be good paying and secure for good preformers in the jobs. If you believe the Republicans, that is not the case with respect to the police officer. It all comes down to who you believe and who is believable.
One problem with your 10:39 posting, cruiser -
There is no sewer grant.
Thank the lord this will all be over in a few hours!
It looks like Republicans are winning all over the country this year. Who is favored to win in Merchantville? Any idea?
My belief is that the Dems are the favorite to win based on "conventional wisdom." They have won many recent elections. They have a very loyal and large constituency. They have a good get-out-the-vote machine. They have excellent candidates who are very experienced.
Opposing them are the Repubs who have made one of the largest campaign efforts in recent years. Their candidates are political newcomers who have no experience in local government. Their campaign seems to be based on the notion that only less spending can better Merchantville and that progessive efforts to redevelop blighted areas are a waste of money. The Repubs are also riding on the national tidal wave that "if you are in, you are out" caused by the lackluster economy. The local Repubs could be hurt by negative reactions to their campaign literature.
All candidates, both parties, are fine people.
I think it will be very close but that the Dems will win in the end - all three positions.
Feel free to beat up on me tomorrow if I am wrong. I don't intend to gloat if I am right.
To the contrary, my belief is that the Republicans will pull this one out. Residents are looking for political newcomers who have no experience in local government -- game changers. I don’t expect to agree with them all the time, but I feel certain they will listen to the residents of Merchantville.
Any negative reactions to their simple, straight-foward campaign literature came from Democrats who wanted to create the appearance of “scurrilous allegations” with implications of “scandalous behavior.” Honest statements of fact, such as those presented by the GOP candidates, should win out. The people of Merchantville can see through the Dems' smoke and mirrors.
I just saw Steve Rogers at the polls and asked him directly about whether he had reported his candidacy for Mayor to his State employer. He assured me that he had followed the rules and had cleared his candidacy with his State employer. I would expect nothing less from a retired Marine Master Sergeant.
Maybe he didn’t know he had to report his actions to “Anonymous” or “Bureaucrat” -- he could find you more easily if you would use your name.
When did the Dems resort to "scurrilous allegations" in the campaign? It seems to me that everything in that category came from the Repubs in their vicious and false attacks on Mr. Perno.
What are the Dems' scurrilous allegations? Be specific.
I wrote: "... Democrats who wanted to CREATE THE APPEARANCE of “scurrilous allegations” with implications of “scandalous behavior.” (My bold for emphasis.)
The GOP literature simply asked: “Is it any surprise why council candidate Perno wants us to have a bike path to Camden? He gets paid to do it. Merchantville doesn’t need any more conflicted leaders in government.”
That’s a true statement. The Cooper’s Ferry Development Association (which Anthony Perno heads) published its plans for a Camden Active Trail Network in June 2008. That document specifies that one of 5 connections would link Camden City with the Merchantville Bike Trail through Merchantville to Moorestown. (pg. 2).
Part of Mr. Perno’s paid job as Pres./CEO of Cooper’s Ferry is to “organize stakeholders to promote and support the campaign for the Trail Network”. (pg. 5).
There was not the faintest suggestion that Perno was “putting money in his pocket”(as stated by Lavardera), nor was there any “implication of scandalous behavior” and “corruption” (as you suggested, Cruiser). Nobody ever implied that Mr. Perno personally or financially benefitted from the building of bike paths in Merchantville, as he wrote in his own letter. They only said it was his JOB to promote the bike path extension -- it was, and it still is.
As a Councilman, Mr. Perno properly recused himself from reviewing and voting on defeated school budgets in 2008 and again in 2010 because his wife was a member of the School Board that prepared the budgets.
Yet in 2009, Mr. Perno did not recuse himself from voting on a plan presented and endorsed by the very non-profit organization he runs. That was clearly a conflict of interest.
The Republican literature was correct. A few local Democrats made it seem like a major personal attack.
LANDSLIDE FOR DEMS!
North - 830
Rogers - 471
Perno - 772
Volkert - 834
Moore - 505
Matukonis - 467
Andrews - 750
Gladding - 460
Egan-Jones - 682
Leone-Zwil - 494
McDonnell - 653
Rodriguez - 663
Zallie - 477
DeCristofaro - 471
HURRAY!
The preceeding brought to you by Joan Brennan, editor of the Brennangrad Gazette.
Merchatville works with PennsaukenSchool District(as it should) for its special education needs. what can't be done in house is done in one of the pennsauken schools. Perfect solutions.
Nice prediction on the Election Gail! As usual you have your finger on the pulse of this community. Congrats to the level headed educated people of Merchantville for not falling for the drudgery of the local R's. It is nice to see negative campaigning responded to with an overwhelming rejection.
It was an honest mistake. I really DID think the people of Merchantville would see through the Democrats’ smoke and mirrors. I was wrong.
Disheartening, isn't it, Gail?
I, too, thought the Merchantville voters were more insightful than they turned out to be.
The Merchantvillans won the day, to all Merchantvillians detriment.
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