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West Chester Community Conversation 2011

West Chester Community Conversation 2011. WEST CHESTER COMMUNITY CONVERSATION 2011 BOROUGH EDUCATION – FINANCIAL CALLENGE. BACKGROUND THE PROBLEM REVENUE SOURCES FUNDS – POWER OF THE RESERVE FUND THE MINORITY ROLE OF TAXES COSTS SUMMARY ACTIONS. THE PROBLEM.

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West Chester Community Conversation 2011

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  1. West Chester Community Conversation 2011

  2. WEST CHESTER COMMUNITY CONVERSATION 2011BOROUGH EDUCATION – FINANCIAL CALLENGE • BACKGROUND • THE PROBLEM • REVENUE SOURCES • FUNDS – POWER OF THE RESERVE FUND • THE MINORITY ROLE OF TAXES • COSTS SUMMARY • ACTIONS

  3. THE PROBLEM • FIXED, PERSONNEL, DEBT & UTILITY COSTS = 79% OF BUDGET • SALARIES, BENEFITS & FIXED COSTS RISING • TAX INCOME FLAT OR DECLINING • STATE MANDATES INCREASE EXPENSES & LIMIT INCOME • 35% OF PROPERTY IS TAX FREE • INCREASED POPULARITY = MORE SERVICE DEMAND

  4. 2011 GENERAL FUND REVENUES

  5. MAJOR FUNDS

  6. TAX SUMMARY Thirty Five Percent (35%) is tax exempt. $2,501,782 in lost revenue. Four of the 60 organizations:Barclay Friends Home = $14,000First Presbyterian Church = $1,200Chester County = $7,500West Chester University = $35,000 62% of real estate taxes are paid by residents. 76% of the Earned Income Tax is paid by residents; the 24% paid by non-residents will decline. Total resident tax share = 28% of Borough revenue. A vacant store on W. Gay St., pays the same real estate tax as a busy restaurant and bar on E. Gay Street – no relationship to economic activity. 6

  7. 5 YEAR TREND EARNED INCOME TAX

  8. TAX REVENUES – SALARIES/BENEFITS

  9. WHAT DOES IT COST

  10. WHAT DOES IT COST

  11. ON-GOING ACTIONS 1. Selling Services Police Fire Sewer 2. State Lobbying State Mandates – Restrictions Local Revenue Options 3. Privatization Trash – considering Mowing & Landscaping Tree Maintenance Payroll Sludge Disposal Electric & Plumbing Inspections 4. Intergovernmental Cooperation Self Insurance Pooling Purchasing 5. Ad-Hoc Financial Advisory Committee 11

  12. POSSIBLE ACTIONS 1. Reduce Services 2. Increase Taxes 3. Tap Reserve Fund 4. Income Generating Ideas Donations by non-profits Contributions from profitable businesses Wills & Trusts State 5. Cost Reduction Ideas 2012 Union Contracts Volunteer Efforts 6. Government Consolidation – Cooperation 7. Other ?

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