Jeffrey Scott of Montgomery
I have been a volunteer member of Montgomery Township’s Budget Finance Advisory Committee (BFAC) since 2006. The BFAC spent considerable time preparing a 10-year Capital Improvement Plan (CIP) for the township. BFAC looked at the township’s long-term capital improvement projects for the next 10 years. Included in the plan was the anticipated acquisition and cleanup of the NPDC property, now referred to as Skillman Village. BFAC’s goal was to find a way to finance these needed infrastructure improvements while minimizing the impact on the annual tax rate. Flexibility was built into the plan, with a recommendation that it be revisited and adjusted annually. The recommended plan was presented to the Township Committee at a public meeting. The Committee approved the CIP in the summer of 2006.
As a member of BFAC, I am writing to you because I think it’s important to clarify recent statements that have appeared in The Packet regarding the size of Montgomery Township’s long-term debt. The total debt of approximately $63 million needs to be broken down in to the different component parts in order to understand their purpose.
Approximately $13.5 million ( 22 percent) is due to the acquisition of open space. The acquisition of open space ultimately reduces the pace of development, the need for new school construction and thereby holds down school taxes.
Approximately $8.1 million (13 percent) is allocated for sewer utility improvements. The Sewer Authority is a self-supporting utility. Sewer fees support the operation. Only those residents who have a sewer connection pay these fees. The sewer utility is a self-liquidating utility and, as such, it can not run a deficit.
Approximately $22 million (35 percent) is due to the acquisition and clean up of the Skillman Village property. When the economy rights itself the township hopes to recover some of the acquisition and cleanup costs through the sale of development rights for the property.
The remaining $19 million (30 percent) has been used to pay for such things as the resurfacing of roads, improvements to various township parks, the purchase and installation of two modular units for Kid Connection, etc.
It is important to note that in addition to the potential reimbursements for some of the Skillman Village expenditures, the township hopes to recoup approximately $8 million in open space expenditures through green acres funding, county open-space funding and a variety of other grant opportunities.
The investments in open space and Skillman Village are major capital investments that produce perpetual benefits to the community that will be enjoyed by not only today’s taxpayers but future taxpayers as well. It makes sense to have the financial burden of such acquisitions shared by current and future taxpayers. That sharing of the burden is accomplished through the sale of bonds.
The best indicator that our debt obligations are reasonable relative to our tax base and budgets is that the tax rating of the township has been reconfirmed as a very high Aa2 rating.
I believe that Montgomery’s finances are well managed. The investments that have been made are important and will serve the township and its residents well in to the future. I encourage everyone to get involved in some way. If you are interested in serving on BFAC please contact any Township Committee member.
Jeffrey Scott
Montgomery

