[RP TownTalk] Town Budget

[Vernon Archer]

Hi Bruce,
Point of clarification, what your are refering to is item "B" on the final
page of the budget document entitled "Town of Riverdale Park Operating and
Capital Tax Rate" p. 7. Because the money is a for capital expenditure it is
not in the annual operating part of the budget that, I am guessing here, you
were looking in. Also, the money was borrowed and we are now in the process
of paying it off.  There is little money that is sitting in the bank that is
actually free of the original liability.

This was actually part of a larger debt and investment project which
included the addition to town hall.  If we were to not go forward with any
type of community center/bldg. improvement and simply give the money back to
the bank it would give us little if any tax relief because we would continue
to have to make the payment on the remainder of the loan at the agreed upon
payment level. Clearly we would pay the loan off quicker, but still not for
a number of years.

I hope this clarifies things Bruce, and thanks for your interest.

Vern

On Mon, May 17, 2010 at 2:28 PM, <bruce.wernek at mindspring.com> wrote:

> Hi Alice
>
> I talked to Alan Thompson at the Farmer's Market and he said the Town is
> not including ~$200K it has in the bank in the budget.  Recall, this was the
> money Archer wanted to use for the Riverdale community center.  I'm not sure
> how the accounting is being done, but I've never heard of assets being off
> the balance sheet.  The budget should include all assets and liabilities.
>  How can you ask for a tax increase when the Town has funds in the bank
> which are not in the budget?  Before any tax increases are considered, this
> balance must be put into the budget.  This money belongs to the taxpayers
> and must be made public so the residents have an understanding of the fiscal
> state of the Town.
>
> If I've missed something, bear with me.  I just could not find the line
> item for these funds in the budget.
>
> Bruce
>
>
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-- 
Vernon Archer, Mayor
Town of Riverdale Park, Maryland
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