KUTZTOWN BOROUGH DEBT 3-14-09

Kutztown Borough Debt 3-14-09 Gennaro A. Marino P.E.
www.marinoreport.com
Mayor Green &
Kutztown Borough Council
Dear Elected Officials,
The Borough Debt in January 2002 was about $14 million and after paying $9,088,000 in principal and interest for 8 years the Borough debt at this time is still about $14 million. But now the annual payment for interest and principal will increase about $80,000 to $1,216 000 a year. In the year 2000 this debt payment was $580,452 a year.
The Kutztonian News of Summer 2001indicates that the 2000 Budget was about $11 million and the 2001 Budget will be about $15 million. The present 2009 Budget is about $21 million.
This disastrous financial situation was brought on by you and your predecessors to support Hometown Utilicom which loses about $1 million a year. About $4 million of the Borough debt of $14 million is attributed to Hometown Utilicom and I think the total gross revenue from the subscribers for the past 7 years is less than $4 million.
I hope one of you comes to your senses and looks into the Borough finances as you look into your own. You all being very frugal I am positive that your personal finances do not resemble the Boroughs.
After losing Apex, Hometown Utilicom should be sold if possible, but shut down in one way or another. You have not made public how HU is spending the $1.3 million loan. The residents of the Borough deserve a complete financial report on Hometown Utilicom immediately.
My next letter will analyze the Budgets from 2000 to and including 2009.
Sincerely, Gennaro A. Marino P.E.