Pattye Benson

Community Matters

Month – January 2010

Local Company Named Best Philadelphia-area Stock for 2009

January 7, 2010
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As our family’s financial planner, I manage our personal portfolio and am always exploring various ways to diversify our holdings and follow Wall Street daily. Although the nation’s economic times have caused me to lean towards international stocks of late, I am equally interested in following local Philadelphia area based companies.

In the review of 2009 US stock markets last week, there is indication that technology stocks are on the rebound and that banking industry stocks underperforming (no surprise on that one). Was there a similar pattern in the Philadelphia area market? This morning, I was thrilled to read online that the Philadelphia region has named Unisys Corp. as the biggest gainer in 2009!

The biggest gainer came as a surprise to me. It was Unisys Corp. of Blue Bell. (Unisys has a very large office location on Swedesford Road in Tredyffrin). Its shares rose 353.7 percent in 2009, a reflection of continuing cost-cutting at the computer-services company and its return to profitability in the second quarter after four years of losses.

As a means of full disclosure . . . the reason for my excitement in this announcement? My husband Jeff has worked for Unisys for 30+ years, and the recent economic climate has terminated in major layoffs of many employees, decrease of benefits and increase of employee costs, etc. So to have some good news on the home front, well, that’s just plain good news!

The third-best performer in the Philadelphia area was Safeguard Scientifics Inc., the Wayne company that invests in and manages software and life-science companies. Its shares rose 149 percent last year.

Maybe we are starting to turn the corner on the economic front (at least locally) . . . here’s hoping it’s true!

Casinos Hit the Jackpot in Pennsylvania

January 7, 2010
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The casinos have hit the jackpot. . . Pennsylvania Legislature has given them the authority to install table games such as poker and blackjack. The PA House voted 103-89 in favor of table games and the bill is now on Gov. Rendell’s desk, who will likely sign it today. The larger casinos will be allowed 250 tables for the new table games and the smaller resort casinos will be permitted to have 50 tables. The gambling regulators expect it may take up to six months to get the table games up and running.

For those who want to know . . . in addition to poker and black, the new law will include craps, baccarat and roulette. Table games will be taxes at a rate of 16% of gross revenue, with 2 percentage points going to local counties and municipalities. At the end of the second year, the gross tax rate will drop to 14%. Licensing fee to the larger casinos will be $16.5 million and the small resort casinos fee will be a charge of $7.5 Million. The fees will increase after June 1. It would seem to me that the licensing fees are really going to help fill the coffers of the state but some gambling opponents have argued that the fees are too small. There was also a suggestion that there should have been a ‘bidding war’ and let the licenses go to the highest bidder. Pennsylvania has nine operating casinos and all are expected to apply for the new table games licensing. In addition to infusing the state with licensing and tax revenue, the PA Gaming Board is expects casino table games will add thousand of jobs in the Commonwealth.

Gov. Rendell had turned to the table games revenue as a way to help settle the 2010 budget issues. If you remember, Pennsylvania lawmakers it a 100+day impasse that finally ended in October but the details for the table games had remained unresolved. If Gov. Rendell did not have the OK on this gambling bill settled by tomorrow, he was threatening layoff of more State employees; I heard the number could have been has high as 1,000.

What’s the saying, desperate times call for desperate measures. Not being a gambler, I guess I don’t have a strong opinion one way or the other . . . except I am excited that the approval of the table games bill will offer our residents thousands of job opportunities. Not to mention the millions from licensing fees and tax revenues.

Other Side in Tredyffrin

January 6, 2010
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Malvern resident Kathleen Keohane offered her opinion on the Firefighter’s Holiday Drive in this week’s edition of the Main Line Suburban.

Other side in Tredyffrin

To the Editor:

I’d like to respond to a letter in last week’s newspaper by Tredyffrin supervisors Bob Lamina and Paul Olson. It artfully attempts to reframe a series of controversial actions taken by the board over the last month but in my view fails miserably.

Messrs. Lamina and Olson, along with fellow supervisor Warren Kampf, made the evening news several weeks ago when they presented a giant cardboard check representing funds they’d raised for the township’s three fire companies. The facsimile represented pledges from the community to cover the amount they’d voted to cut from the 2010 budget two weeks before.

This effort by these three “citizen-supervisors,” as they called themselves, was an unnecessary exercise because these cuts should never have been made in the first place. In the absence of dire financial circumstances, adequate funding for our fire companies should never have come under the ax – a position held by surrounding communities that also struggled with this year’s budgets but kept fire funding intact.

Also, in an effort to tie the grand gesture of soliciting for contributions to our fire companies to Republican Party politics, our elected township supervisors perverted their roles as public officials. Much was made of the party’s pledge of “matching funds” both in Lamina and Olson’s letter and at the township’s final BOS meeting. But the money came from individuals who are members of the party and not the party. Yet the windy speech given by the chair of the TTRC before Channel 3 cameras made the source of the funds unclear.

The source of the other contributions opens up a can of worms as well. Do they represent funds normally raised by the fire companies that will cause their separate fund-raising projections to be overly optimistic? Will the funds be allocated according to the individual fire-company cuts or according to the location of the donor? Isn’t there some concern that funds were solicited from companies doing business with the township? For example the law firm of Lamb McErlane contributed in December and one of its partners was reappointed township solicitor on Jan. 4. Liberty Property Trust made a contribution and it will bring a matter before the board sometime this year involving the possible condemnation of land to build an access road. Even the slightest whiff of pay-to-play should be avoided.

In my view this face-saving fund-raising activity should never be repeated. While the community’s support for the fire companies in the form of annual contributions should be encouraged, our supervisors’ job is to oversee the safety and proper maintenance of our township and to allocate our tax dollars accordingly. Over 500 residents signed a petition asking that the budget cuts to our fire companies be restored. I believe that given more time and awareness, an overwhelming number of Tredyffrin residents would have signed it. There’s no political divide on this issue. Safety comes first.

Going forward we need to establish a citizen group in Tredyffrin, made up of fire and township officials, community businesspeople and concerned residents to study and recommend a secure and adequate funding stream for our fire companies. The decision should never again be left up to seven supervisors, one of whom is running for higher office on a platform of no tax increases.

Kathleen Keohane, Malvern

Tredyffrin Easttown School District . . . Continuing Discussion on 2010-11 Budget

January 6, 2010
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The posting, Understanding the Tredyffrin Easttown School District Budget Process has generated interesting comments. Please take the time to read these thoughtful remarks from our local residents. In my review of the Tredyffrin Easttown School District (TESD) budget, I admit that I very surprised to learn that 75% of our school district budget is allocation to teacher and administration salaries.

In my attempt to understand the salary range of teachers, I found an interesting online site which details the salaries (2007-08) of the 195,000 Pennsylvania public school teachers and administrators. This link will now only allow you to review the range of TESD teacher and administration salaries but also allows a comparison of TESD salaries other school districts. It is particularly interesting to review the salaries of Radnor, Upper Merion and Great Valley school districts as compared to Tredyffrin-Easttown. There has been much discussion about the teacher unions, teacher salaries and benefits, pension plans, etc. I would like further research on the pension retirement programs.

Firefighter Holiday Drive Update . . . Courtesy of Supervisor Olson

January 6, 2010
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I had a call this morning from Supervisor Olson in regards to the Firefighter’s Holiday Drive. Supervisor Olson explained that he will update me on the Holiday Drive contribution checks — each time they are turned over to the Berwyn Fire Company.

Rip Tilden, president of Berwyn Fire Company will receive the checks on behalf of the 3 fire companies and then make the appropriate distributions to Radnor, Paoli and Berwyn Fire Companies. Currently, Mr. Tilden is on a Wharton-student trip in Africa (Mr. Tilden is a Wharton faculty member) but upon his return, Supervisor Olson intends to turn over the next group of checks. Contribution checks will continue to be turned over to the Berwyn Fire Company on a regular basis and Supervisor Olson has committed to calling me each time with an accounting. Although Supervisor Olson is the point person for delivery of the checks to Berwyn Fire Company, it is my understanding that Supervisors Lamina and Kampf are also doing their follow-up and collections with the local businesses.

Supervisor Olson and I agreed that we would keep a running to-date total on what has been collected to make sure that it reaches the promised $23,200 ‘cardboard check’ amount by March 31, 2010. I will post the information on Community Matters as it becomes available. I would suggest that the Berwyn Fire Company or the Board of Supervisor liaison give an update on the Holiday Drive contributions with their regular fire company reports.

Tredyffrin Township . . . First Board of Supervisor Meeting of the New Year

January 5, 2010
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Last night was the first Board of Supervisors Meeting for 2010. Most of the meeting was about the necessary housekeeping for our local government . . . swearing-in of new supervisors (Kichline, Donohue, Richter) and also the election of the chair and vice chair of the Board. Supervisor Lamina will serve as Chair and Supervisor Olson as Vice Chair of the Board. It was curious to see how the seat assignments of the members of the Board — aside from the chair and vice chair, I wonder how the seating on the board is decided. Can we read anything in to the placement from left to right as follows: Donohue, DiBuonaventuro, Kampf, Lamina, Olson, Richter, Kichline.

The organizational meeting included the resolution to name the emergency services; adoption of the meeting schedule for the various township boards and approval of the consultants and law firms. I wonder if the township reviews the contracts with the various consultants/firms yearly as part of the budget review process. I wonder if these firms just become ‘grandfathered in’ and are status quo year after year. Do you suppose their fees are discussed and whether they are negotiable? Due to the economy, many firms are having to adjust their fee schedules to remain competitive — should there be an expectation on the part of the township to ask for this kind of consideration of the companies doing business with the township. Just a question.

Following the organizational meeting, there was a brief regular meeting. In fact, Chair Lamina asked if any Board member or audience members had any new business. The question was asked so quickly that at least one person I know missed the question and missed the opportunity to give her prepared written remarks. The pace was such last night if you blinked, you missed an opportunity to make comment or ask questions. Supervisors neither offered an update on the contributions to-date nor did residents ask for a status report on the Fire Department contribution; guess it’s a good thing that we have this blog — otherwise, we would not know have a clue on the subject.

A Public Hearing on the Patriots Path Plan followed the Board of Supervisors meeting. The consultants gave a slide presentation of the draft plan. Audience members spoke passionately both in favor of the plan and also some of the residents likewise related their concerns about the project, particularly about the width of the path, privacy, elimination of wildlife and trees and plants. Residents in the Great Valley are in the process of putting together a survey and asked that the supervisors not vote last night. The Board agreed to delay a decision to allow for further review and discussion; the plan will be revisited at the February Board meeting.

I have lived in the Great Valley for 25 years and I have never been to the Warner Spur/Cedar Hollow area to see the old railroad trail, location of the proposed Patriots Path. I suggested to several Great Valley Association Board members that I think it would be a good idea for a field trip for supervisors and interested residents to visit the site. I understand that this is private property owned by the Township so I would suggest perhaps a Sunday afternoon date that everyone could meet at a specific location and review some of the proposed path area. It’s hard for some of us to visualize the path without having seen the area. Perhaps the Sidewalks, Trails & Path Committee and also members of the Open Land Conservancy could be available to show the residents around. Just an idea . . .

Understanding the Tredyffrin Easttown School District Budget Process

January 5, 2010
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I attended last night’s Board of Supervisor Meeting and the Public Hearing for the Patriots Path Plan — more about that later today. However, as a result I was unable to attend the TESD’s Finance Committee meeting held at the same time. Local Malvern resident Ray Clarke attended the Finance Committee meeting and provided his notes and personal observations from last nights meeting. I appreciate Ray’s attendance at the Finance Committee and his remarks are provided following this posting.

I admit to not fully understanding the school district’s budget process and unfortunately, the information available on the TESD website is limited. With a potential of a 7.2% tax increase, I think that we need to all do our homework and get involved in this process. I have been doing a bit of research about the actual school district budget process. I thought that the following questions and answers would benefit us to better understand the Tredyffrin Easttown School District school board budget. I was able to find this information on PA state websites; if any of the details are incorrect, I would appreciate clarification.

Q. Is there a difference between the preliminary and final budget?
A . The preliminary and final budgets are distinct documents since the passage of Act 1 of 2006. The preliminary budget is the document that is adopted in January and the final budget is adopted not later than June 30th . Both Budgets may reflect the same amounts but the provisions of Act 1 of 2006 require the district to adopt either a preliminary budget or a resolution which binds the district to a tax increase of no more than the index.

Q. What is the proposed budget?
A . The proposed budget applies to both the preliminary and final budgets. The proposed budget is the budget that is put on public display prior to the board taking action on either the preliminary or final budget.

Q. What happens if the district does not adopt its budget by June 30th?
A . The budget is the district’s authority to incur expenditures. If the district does not adopt its budget on time then it may not make any expenditure for the new school year until a budget is passed. The district may however, continue to issue payment for items that were part of the prior year expenditures.

Q. The district is considering action on the proposed final budget but it does not contain a major expenditure item. Is the district permitted to increase its budget after it introduces the proposed final budget?
A . Yes. The district may increase the amount of spending during the public review and comment period. The limitation of the increase is to the index plus any approved exceptions.

Q. The district is considering action on the proposed final budget but it does not contain a major expenditure item. Is the district permitted to increase its budget beyond the adopted preliminary budget?
A . Yes. The district may increase the amount of spending during the public review and comment period for the final budget. However, the limitation of the increase is to the index plus any approved exceptions.

Q. May the real property tax mill rate be increased after the proposed preliminary budget is introduced?
A . Yes. The increase is subject to the index plus any exceptions that the district may qualify for, or proposed referendum question.

Q. May we introduce any of the budgets more than 30 days before adoption?
A . Yes. Act 1 of 2006 establishes a minimum time requirement. The district may introduce the preliminary and final budgets earlier if they choose.

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The Following notes are from 4 January 2010 TESD Finance Committee Meeting as provided by Malvern resident Ray Clarke

The Finance Committee took the next step in the process to get state approval for a potential tax increase in excess of the Act 1 index, requesting approval for exceptions that – if implemented – would lead to a property tax increase of 6.63% – 1.16 mills – half the township total millage! Without the increase, the deficit would be $9.2 million. Even with the increase there would be a $3.9 million deficit.

There was no change in the administration cost reduction proposals presented at the last Committee meeting, which would reduce costs by $2.35 million, leaving the deficit still at $1.5 million.

The Committee asked the Administration to come to the next Finance Committee on February 8th with a list of potential expenditure cuts that would erase the entire $9.2 million deficit, thus setting up the discussion in the other TESD Committees and the community to find a tradeoff between tax increases and program cuts.

Any tax increase for 2010/11 would have to be funded from property owners. If the School district wanted to implement an EIT for 2011/12 it would have to give notice to the Township by November 2010 and would share the revenues with the Township.

The discussion suggested some emerging Board strategies:

  • Expect the state to come up with some kind of fix to the $7 million increase in pension contributions that contribute to the growth in deficit from the baseline $9.2 million in 2010/11 (above) to $25 million in 2012/13 (and beyond). (Note: $11.5 million of the $29 million General Fund Balance is designated for PSERS Rate Stabilization.)
  • There are no overarching principles (tax increase caps, expense reduction goals) for dealing with the remaining $7-8 million a year increase in the deficit, beyond the general commitment to maintaining the quality of the district’s education program.
  • One target is for significant reduction is benefits costs in employee contracts beyond 2011/12. (One commentator thought current benefits might be subject to Obamacare’s excise tax on rich programs!). In the meantime, the Board would consider dipping into reserves to fund short term increases that are contracted.
  • The idea of fees received a lot of traction. For example $5-10 per day parking fee for CHS students.

Other new ideas (with no $ assigned) included:

  • Outsourcing maintenance and janitorial and special education (to the IU)
  • Reducing legal costs (how?)
  • Eliminating non-contract employee salary increases (4.5% in the preliminary budget)
  • Considering more actively the Teacher Early Retirement proposal (perhaps applicable to 6-7 staff with the right combination of age and longevity, worth $30-50,000 per retiree -but the net impact of course loaded with assumptions)

The critical point was made that while small savings are indeed important and must be pursued, the district’s expenses are driven by compensation. Since the rate is contracted, that can only be impacted by FTE reduction. It is indeed possible that some reductions can be implemented with no reduction to quality (eg FLES, the Middle School curriculum changes already proposed, perhaps a 7 period day at CHS and the outsourcing programs), but we may be past much of the “low hanging fruit”, and reduced FTE will translate to a reduction in many prized programs.

So back to the ultimate question: what programs/class sizes does the community want and how are we prepared to pay for them? There is an opportunity to get engaged as this process unfolds, and indeed to vote!

Note that, although our property tax millage may be low compared to some adjacent jurisdictions, the amount we pay is a combination of the rate and the assessed value, so just looking at the rate alone does not tell the whole story. Our neighbors also differ greatly in residential/commercial mix.

All in a Name . . . Patriots Path Plan

January 4, 2010
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Following tonight’s Board of Supervisor Meeting will be a Public Hearing for the Patriots Path. The Patriot Path Plan is a proposed trail network which will connect historic American Revolutionary War sites within East Whiteland, Malvern Borough and Tredyffrin Township via the Chester Valley trail system. The path would connect East Whiteland’s Battle of the Clouds Park, Malvern Borough’s Paoli Memorial Grounds and adjacent Paoli Battlefield, which was the site of the infamous Paoli Massacre, and Valley Forge National Historical Park.

The Board of Supervisors adopted the Tredyffrin Township Park, Recreation and Open Space Plan (PROS) in 2005. The PROS plan was included in the township’s 2009 Comprehensive Plan. The primary benefit of incorporating the Patriots Path Plan in the Comprehensive Plan is for help with future funding opportunities. As part of the multi-municipal effort, the Patriots Path funding opportunities could be increased. That said, tonight’s discussion does not imply a commitment to build the trail, nor impose any timeline on further action.

The purpose of the public hearing will be to consider the adoption of the Patriots Path Plan as part of the Tredyffrin’s Comprehensive Plan. There are two segments of the Patriots Path that are located within Tredyffrin Township:

  • Valley Forge Segment: 1.8 mi. connection from the Chester County Trail to Valley Forge National Historic Park through Tredyffrin Township
  • Cedar Hollow Segment: 1.8 connection from Chester County Trail to Cedar Hollow Preserve and Cool Valley preserve via the Warner Spur Trail and then extending an additional mile to East Whiteland to connect to the Valley Creek Segment.

There is concern among some of my Great Valley neighbors over the proposed Patriots Path and the proximity of the path to their properties. Tonight’s discussion should be useful for members of the community who are ‘for and against’ the proposed path. Sometimes misunderstanding of the facts can be at the root of the problem; tonight’s information session should help both sides with any misinformation.

For many of us, we will recall the years that some Radnor Township residents spent in argument over the 2.2 mi P&W Radnor Trail. There were resident that lived next to the abandoned railroad tracks that were very much opposed to it and the trail debate lasted decades (lawsuits, gag orders, etc) and became a major political issue. The Radnor Trail finally became a reality and many of the resident’s earlier fears have not materialized. In fact, I’m thinking that many of the neighbors probably use the Radnor Trail themselves and the trail certainly stands as a success story and attribute to the Radnor community.

The success of Radnor Trail aside, we need to look at the Patriots Path Plan and make sure that concerns/questions of Great Valley residents can be answered by the township staff and the Supervisors. Good open discussion is always helpful — here’s hoping that tonight’s public hearing will provide that kind of forum.

I thought it might be useful to give some links to those of you who like to read further about the proposed Patriots Path Plan. Tim Lander, member of the Open Land Conservancy and also on the Sidewalks, Trails and Path Committee offered helpful information, including articles concerning the Radnor Trail and providing a vintage photo (below) of the trestle bridge over Valley Creek. I encourage people to attend the Public Hearing tonight and if interested, review the following documents:

former trestle across Valley Creek, with nothing but farmland in sight (foreground is now the OLC Cool Valley Preserve);
The former trestle bridge across Valley Creek in the Great Valley, with nothing but farmland in sight (foreground is now the Open Land Conservancy’s Cool Valley Preserve);

Supervisor Olson Provides Updates on Fire Company's Holiday Drive

January 4, 2010
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I am excited to report that Supervisor Olson contacted me in regards to my questions surrounding the Fire Company’s Holiday Drive, the timeline for collection, contributions collected to date, responsibility for follow-up, etc. Yes, on the eve of the first 2010 Board of Supervisor meeting, Supervisor Olson called to give me an update. As you recall, Supervisors Olson, Lamina and Kampf organized the Holiday Drive, which culminated in the $23,200 cardboard check that was presented to Berwyn, Paoli and Radnor Fire Companies at the last Board of Supervisor Meeting on December 21. Supervisor Olson was able to offer the following information in regards to the Holiday Drive.

  • There is now a paper trail in place to track the pledges and donations, which will allow easier follow-up.
  • All fire company Holiday Drive pledge money to be contributed by March 31, 2010.
  • All checks for the Holiday Drive are to be made payable to ‘Berwyn Fire Company’. Berwyn Fire Company will make the appropriate disbursements to Radnor and Paoli Fire Company.
  • Supervisors Olson and Lamina met with Berwyn Fire Company president Rip Tilden in the last couple of days; checks totally $8,950 were given to the fire company.
  • According to Supervisor Olson, there is not concern regarding the duplication of fundraising efforts to local businesses. It was my understanding that the Berwyn Fire Company is willing to review the contribution checks and make the decisions necessary so that each fire company receives contributions from businesses in their particular jurisdictions.
  • Supervisor Olson is unclear as to the exact meaning of Tredyffrin Township Republican Committee (TTRC) Chair CT Alexander’s ‘matching fund’ statement that accompanied his announced contribution of $5K from TTRC. Supervisor Olson indicated that the TTRC money was going directly to the Berwyn Fire Company and was not included in the $8,950 checks already distributed. He was uncertain of the exact contributions to date by TTRC but thought it was about $2K (Apparently, TTRC’s contributions are going directly to Berwyn Fire Company). Supervisor stated that he was not a TTRC committee person and therefore was not certain about the details. He suggested I contact Mr. Alexander directly for follow-up on that issue. (If Mr. Alexander or members of TTRC are reading this blog, any update you can provide related to the $5K fire company contribution would be helpful).
  • Supervisors Olson, Lamina and Kampf will take care of all necessary follow-up required for the Holiday Drive.
  • I inquired whether the full list of Holiday Drive donors would be public. Supervisor Olson’s reply was appropriate; he said that the judgment to release the donor list would need to come from the fire companies.
  • Supervisor Olson mentioned the idea of creating a Fire Company board, suggesting representation on the board from local businesses. There are required capital expense items upcoming for the Berwyn Fire Company, and help with funding is needed.
  • It is not the intention of Supervisor Olson to make the Holiday Drive an annual event.

Supervisor Olson was completely forthcoming in his responses. Although I am grateful for his candor, I did suggest that it would be helpful if he would make this information public at tonight’s Board of Supervisor Meeting. Open and transparent government leaves the public asking fewer questions and I challenge the Board of Supervisors to think about this as a resolution for the New Year.

Based on the fundraising talents of Supervisors Olson, Lamina and Kampf, . . . I am making a personal appeal. If they can raise in excess of $20K for the fire companies in a matter of days, I am asking them to help me and the Board of Tredyffrin Historic Preservation Trust with our Build the Barn Capital Campaign. Historic preservation needs their help in Tredyffrin; I am asking them to join us to raise the necessary funds for our rebuilding effort. Locally, we have recently witnessed the tear down of La Ronda in Lower Merion and Radnor’s Eastern College tear down of a historic log cabin. Let’s show our neighbors that Tredyffrin Township cares about their historic resources . . . and I’m asking the Board of Supervisors to help.

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