The budgeting process

By MAYOR DAVID W. PYATT
As published June 17, 2009

One of our concerns has been the long-term process of replacing and adding to our Town’s needs in the years to come. The town staff has done a pretty good job of identifying these needs and trying to set money in escrow so we don’t get caught short.

This year has been particularly challenging because of the economy and drop in revenues. We also had to take money from the General Fund to supplement increases in costs in water and sewer operations.

Most people are unaware of how low our municipal tax rates are and what a bargain they have received over the past 20 years or so. There are many reasons for this, but I think it stems from a “can do” community attitude.

While I can’t light a candle to some of our past mayors, I consider myself a pretty frugal person and basically hate to spend money unnecessarily – sometimes even necessarily. Just ask my wife. I think duct tape is right up there with the Internet.

In the 1990s and early 2000s property values increased more than the cost of living, and we were able to “lower” our tax base a little at a time using something called the “constant yield tax rate,” an accounting trick only understood by a few Nobel laureates in economics. But it sure gets your attention when it stops working. It sure got my attention this spring.

I have a few (actually, more than a few) friends who aver that elected officials should never raise taxes and that it should be their sworn duty to lower them whenever they can. Sort of like a POW’s duty is to try and escape. I used to believe this, too.

Now that I’m sort of in charge of this budget process, I’m starting to realize that expenses are rising, in many cases faster than income – which is sort of going the wrong way.

I have a lot of admiration for Arnold Schwarzenegger – I can imitate his voice and sometimes call people and pretend I’m him – and I see how a pretty good guy has been twisted into a financial pretzel. I’m beginning my first loop of the pretzel with next year’s budget, which will start later this fall.

I’m not sure whether a tax increase will be required (I’m hoping it’s not), but I promise to squeeze as much juice from things as I can.

I spent the last 15 years of my career planning to replace nuclear facilities built in the 1950s and 1960s using more up-to-date building codes and, my specialty, safety standards. It is unnerving to see cost and time estimates to replace aging facilities often built in mere months and for a fraction of the modern cost.

I don’t see a relaxation of analogous codes and standards that municipal governments must follow today. I recently joined the American Society of Civil Engineers, and one of their agendas is to emphasize the need for infrastructure replacement, which their annual “Scorecard” gives grades like C, D and F in most cases. It has been pointed out that folks get recognized much more for building new things than replacing older things.

They make duct tape in colors now (I’ve added white to my inventory) and consider it as a very acceptable method for infrastructure replacement if that works.

The search for water

By MAYOR DAVID W. PYATT
As published June 3, 2009

I was once told that, after years of research, nutritionists decided that a hot fudge sundae with nuts is the world’s healthiest food. I have doubts on health impact, haven’t done all the research, but hot fudge sundaes are my favorite desert--but only once or twice a month.

The point is that, even though we don’t have all the “facts” we can compensate to some extent and make sensible decisions. Perhaps I could indulge more, but I enjoy each and every sundae.

I’m trying to apply these same principals to our current search for new water supplies. One approach, which I started on, is to hook up with a pipeline to Frederick County (near New Market). This “solves” our long standing water supply. Some folks argue that new development will pay for this.

Although we don’t have an accurate cost estimate, preliminary estimates range as high as $18 million. Preliminary discussions with developers indicate they just don’t have the money to pay. Arguments presented are that citizens want amenities and new commercial establishments.

The pipeline, in any event, would leave a sizeable financial burden, although one could also argue there will be more folks (new residents) to share this burden. An even bigger potential concern is that, with the pipeline, we could be in jeopardy of needing to increase our wastewater treatment plant.

After several years of searching with frustrating results, within the past several weeks we have made considerable progress in locating new water supplies (wells) in town, and believe we can develop adequate water (that is, for the “pipeline” and for some new commercial development) for several million dollars.

At this time I believe that this will satisfactorily satisfy our “Consent Order” with the Maryland Department of the Environment (MDE).

What I find frustrating is that, although I have a P.E. license and am a Registered Environmental Manager, it is difficult to get unbiased information. Even worse, we are located between two ice-bergs, e.g. counties, whose interests often don’t coincide with the town’s.

For example, the proposed Carroll County Master Plan would put an inordinate stress on our water supply if it were ever implemented. I am hoping that county residents will successfully overcome this portion of the Master Plan. As such I am not presently including it in any of our water needs.

I would like to thank Mr. John Woodhull, retiring councilman, for all of his hard work in finally resolving our ground water problem. Although I am writing this article, John’s efforts were the basis for coming up with a good water source in town after drilling numerous unsuccessful ones. Such is the bane of water exploration in this area.

Finally, for the upcoming decision point and input for the MDE Consent Order, due on June 30 (and since we are so close to finding an acceptable well water supply), I believe it is prudent to go in that direction. I still reserve the right to believe what I want regarding hot fudge sundaes.