HU '06 Totals

Account 2006 Actual 2007 Actual 2008 Actual 2009YTO 10112 2009 Budget 2010
Department: 493 Intrafund Transfers $ -
4287 Transfer to Reserve $ - $ - $ - $ - $ - $ -
4288 Transfer to Capital Reserve $ - $ - $ - $ - $ - $ -
4289 Transfer to Operations $ 194,200.00 $ - $ - $ - $ - $ -
pepartment:•~3"ntrafUridTransf." ';',\ .. ,'. , I> ..... ,. , .. ,' , '." ' ..
totals: ' ~$' .', 1$4.2oo.0Q• $ .' ...• •• Is••. ,-' ... $ ." '.', $ - $, -
Department: 499 Depreciation $ -
4820 Improve Other than Bldgs. (dep) $ 4,000.00 $ 4,000.00 $ 4,000.00 $ - $ - $ -
4830 Buildings (dep) $ 3,800.00 $ 3,800.00 $ 3,800.00 $ - $ - $ -
4840 Machinery and Equipment (dep) $ 428,932.00 $ 431,133.00 $ 396,972.00 $ - $ - $ -
.....
"
Department: 499. Depreciation total$:, ,$436,732.00 '$ 438~e,33~OO ' $ 404.i712.0.0 ' S . $ - $ -
Revenue Totals: $ 1,235,975.57 $ 1,093,056.74 $ 911,424.75 $ 1,673,232.83 $ 1,964,761.00 $ 1,316,685.80
Expenditure Totals: $ 1,648,148.13 $ 1,521,377.10 $ 1.471,898.64 $ 1,174,252.21 $ 1,964,759.00 $ 1,316,685.80
IFund Totals: Telecommunications
Fund $ (412,172.56) $ (428,320.36) $ (560,473.89) $ 498,980.62 $ 2.00 $ 0.00


~

HU 2006 Revenue 11-29-09

Account 2006 Actual 2007 Actual 2008 Actual 2009YTO 10/12 2009 Budget 2010
Fund: 09 Telecommunications Fund $ -
Revenue $ -
341..o1\lnte •. ~.tl"c()m." •. •,j~m~~Q2J;I"I'••i:2j~,'O~'12! $ 1,203.16 $ 1,179.40 $ 1,783.00 $ 1,783.00
a42;'1Q:flerit;"ofl;arid; ..... ) S"$: •48~$24~3.9.1D ~:,: "$O~01:~28X $ 48,010.32 $ 47,842.09 $ 54,436.00 $ 54,436.00
375-10 Sales to Customers-Internet $ 216,086.44 $ 239,947.03 $ 282,365.13 $ 220,344.49 $ 280,000.00 $ 355,000.00
375-11 Sales to Customers-Television $ 253,251.86 $ 276,587.66 $ 284,501.12 $ 225,678.41 $ 290,000.00 $ 355,000.00
375-13 Bulk Sales $ - $ - $ - $ - $ 25,000.00 $ -
375-14 Priority Bdwdth (non-bulk sale) $ - $ - $ - $ - $ 1,000.00 $ 1,000.00
375-16 Internet Sales-Maxatawney Twp. $ 727.51 $ 988.80 $ 24,328.95 $ 58,615.60 $ 45,000.00 $ 51,000.00
375-17 Television Sales-Maxatawney
Twp $ 1,038.32 $ 1,447.44 $ 23,211.59 $ 51,891.34 $ 2,200.00 $ 50,000.00
375-20 Tariff- Res. Local Service $ 10,148.50 $ 7,351.00 $ - $ -$ 10,000.00 $ -
375-21 Tariff- Res. Long Distance $ - $ - $ - $ 4,124.02 $ 100.00 $ 100.00
375-22 Tarif- Com. Local Service $ 15,658.00 $ - $ - $ - $ 100.00 $ 100.00
375-24 Tariff- Com. Long Distance $ 35,528.52 $ 33,427.52 $ 51,120.52 $ 31,113.50 $ 37,000.00 $ 42,000.00
375-25 Fiber & Equip't Lease (external) $ - $ - $ - $ - $ 1,000.00 $ 1,000.00
375-30 Sale of Advertising $ - $ - $ - $ - $ 1,000.00 $ 1,000.00
375-31 Marketing Servo (from partners) $ - $ - $ - $ - $ 1,000.00 $ 1,000.00
375-40 Installation Services $ - $ - $ - $ - $ - $ -
375-41 Tariff-Altronics $ - $ - $ - $ - $ 100.00 $ 100.00
375-42 Telemetering Revenue $ 58,848.00 $ 73,262.00 $ 39,888.00 $ - $ 74,000.00 $ 30,000.00
375-80 Fiber & Equip't Lease (internal) $ 4,320.00 $ 9,120.00 $ 9,120.00 $ 6,840.00 $ 9,120.00 $ 9,120.00
375-81 Security Services (CCTV,
SCADA) $ 85,800.00 $ 108,900.00 $ 108,900.00 $ 81,675.00 $ 108,900.00 $ 108,900.00
375-82 AMR Data Service $ - $ - $ - $ - $ 1,000.00 $ 1,000.00
fl()UU~,~cc~unt:3~~S~I's,to •.. ' .• >:.;' .. ' ' '/' .... ,', ...•. ". > '.' ," •..•.•••• i
CU$torn~ •.• :tot.bl; '. ••$,881~401~1$;. 'j$.7G1It031,46.;$\823~S~~1'. ~.6eO~182~36 .. ,;$ ••886~520~OO'$ 1,006.320.00
380-00 General Miscellaneous Rev $ 1,547.90 $ 14,807.49 $ 4,082.16 $ 2,196.19 $ 10,000.00 $ 10,000.00
380-15 Payments From Other Funds $ - $ 235.11 $ (1,018.24) $ - $ - $ -
380-20 Sale of Material and Equip $ 448.88 $ - $ - $ 2,215.39 $ 47,838.00 $ -
~Ollu.f,):~C:~P"'~~:3~~:~Ettl.r:aI•• "\ .• : :!i" 1/ '.' ........•.•...••.••.....•.•. < '/.
Mlsc.llaneoU$\:t:t,v,tOfills: .' i \$' .;!I~ee~iiJ8:;: ;il$!;1~.Q4~;$Oi:,.I/'$i;3~083;92,;:!$.4~"1!1.58; /$ $7~838;OO '$ 10,000.00
392-07 Transf fl Electric Fund $ 305,000.00 $ 250,000.00 $ - $ - $ - $ -
392-87 Transfer to Reserve $ - $ - $ - $ - $ - $ -
392-89 Transfer to Operations $ 194,200.00 $ - $ - $ - $ - $ 239,146.80


'2.

Borough Finances 11-28-09

Borough Finances 11-28-09
I visited the Kutztown Borough Office and asked to see the Budget and was given a loose leaf notebook with the 2006 actual, 2007 actual, 2008 actual, the 2009 YTD (10\12), the 2009 Budget and the 2010 budget. These were the headings shown in the report.
For starters the pages were not numbered. I asked for and received copies of the section on Hometown Utilicom which was 9 pages.
On the 9th page under Fund Totals: Telecommunications Fund, was posted
2006 Actual $ (412,172.56)
2007 Actual $ (428,320.36)
2008 Actual $ (560,473.89)
2009 YTD 10\12 $ 498,980.62
2009 Budget $ 2.00
2010 Budget $ 0.00
The figures in parenthesis are negative numbers which proves Telecom loses money and the loss increases every year.
The reason 2009 figures are positive is because the Borough under Bond and Note Proceeds (3rd page) added $900,000.00 and $959,184.00 to the 2009YTD and the 2009 Budget respectively and noted them as revenue.
I will explain the 2006 Actual in this post. I will explain the others in future posts. When you add interest income of $1,875, rent of land $48,624, telemetering $58,848, security services of $85,800, transfer from electric $305,000 and transfer to operations of $194,200 to 2006 actual it equals what HU lost in 2006 which is $1,106,519. The above amounts are from services provided by HU to the Borough. There are more illegal transfers in the report. Don’t forget there are no figures noted as audited.
This can all be seen in the records at the Borough desk, just ask to see the Budget. I will, in the near future analyze the 2007, 8, and 9 budgets which all lose about $1 million a year. I think this is proof that HU is a loser and can’t wait to hear from you. Thanks. As always Jerry

Agenda Update 11-17-09

Agenda Update 11-17-09
The Agenda for the 11-17-09 Council Meeting was made public the day of the meeting. It was made public late because the Council did not want to disclose that the Borough was going to adopt the 2010 real estate rates, amend the electric rates for 2010 and pay Long & Barrell (not to exceed) $29,000 for the 2009 Annual Audit. The Agenda also stated the Borough is going to increase the number of new employees.
More proof that HU loses about $1 million a year is the electric rates and Real Estate Taxes are going up. Now we will wait a month and a half to see the minutes of the meeting. Sincerely, Jerry

11-16-09 No Coucil Meeting Agenda

No Council Meeting Agenda for November 17, 2009

The Borough website states the next Scheduled Council Meeting is on Tuesday November 17, 2009 at 6:30 pm. As of 8:00 pm Monday November 16, 2009 there is no Agenda for the Meeting on the website. I hope Councilman Elect Derrick Mace takes note as to what he is getting into. I congratulate him on being elected and wish him luck at his endeavor. Again this is done intentionally to keep the Borough residents from seeing how the Council and the Mayor are squandering our hard earned tax and utility revenue. At the meetings they very often vote on legislation which is not on the Agenda.
Yours truly, Jerry

Sept, 15, '09 Council Meeting Minutes

Sept. 15, Council Meeting Notes
Page 17672 of the September 15, 2009 Council meeting Minutes states, I quote, “Jack Long of Long Barrell & Co. provided a brief overview of the Borough’s audit report for the year ending December 31, 2008”. The Audit Report for 2008 has not been reviewed by the Borough Council or the Mayor for more than 8 months? Who is checking our finances?
Page 17685 of the minutes states, “A motion was made by Mr. Seyler and seconded by Mr. Gangewere, Resolved, To authorize the appropriate Borough officials to execute an agreement with Berks Products for the fiber optic cable quarry installation project. All in favor except Ms. Bray and Mr. Snyder voted nay. There being a majority in favor, the motion passed”. And then, “A motion was made by Mr. Seyler and seconded by Mr. Gangewere, Resolved, To hire the recommended vendor to install a fiber optic cable on a messenger out to the quarry. All in favor except Mr. Snyder who voted nay. There being a majority in favor, the motion passed. PLEASE NOTE: There are no details, facts or figures mentioned for the installation or the messenger contracts. How much will this cost? Did the Information Technology Director Caruso, who heads Home Town Utilicom, make a presentation? Nepotism is alive and well in Kutztown.
The minutes also show the Council also passed a Resolution, which I think should be an Ordinance, that police officers will pay 5% of their salaries into their Pension Plan every year. I calculate that 5% will come to about $40,000 a year. Why can’t the Borough with a $21 million Budget fund the Pension?
This plainly shows where the priorities of the elected Borough Officials lie. The Borough Council votes to fund the cost and execute the contract of a new preferred HU subscriber outside the Borough after the fiber is installed. Being it is for HU there is no limit to the cost. Hometown Utilicom already loses $1 million a year.
My point is it takes more than eight months to review the Annual Audit. Then the Council votes to have the Police pay into their Pension. The amount paid by the Police will save Borough funds which will find their way into HU.
This is a perfect example of how this Borough is wildly and irresponsibly handling our finances. I predict every fee, electric, water and sewer rates will have to be raised to fund this wild spending and $14 million debt. The Borough Council already made it easy to raise all rates through Resolutions which are easier, faster and cheaper than Ordinances.
Jerry retired Professional Engineer in Pa., N.Y., and Nevada

MARINO SPEAKS

Marino Speaks 10-25-09
I would like all my subscribers to know that the people who comment on my blog not only have trouble with 3rd grade arithmetic they would also have trouble with a 3rd grade reading comprehension test. Let it be known what I stand for and what I say. For the slow readers I will not write a paragraph. I will just make simple sentences and number them:
1) The Borough of Kutztown is a great place to live. Don’t forget I picked it.
2) I am very happy with our utilities, our superintendents and the Borough personnel that maintain them.
3) Hometown Utilicom which is not a utility but a business venture that loses $1 million a year, has been losing $1 million a year for 7 years should be shut down immediately.
4) Borough Manager Khalife and the HU Director Caruso who oversee HU are overpaid at salaries of $100,000 and $80,000 respectively.
5) Contrary to all of the Borough’s statements and lies there has never been a complete Financial Report on HU. HU revenue is grouped together with the General Fund and the Electric Fund (where all the big money is) to hide the fact that HU is a losing proposition.
6) The Borough is violating the Borough Code by transferring revenue from the Water and Sewer Funds to finance HU. The Borough Code states that revenue has to stay in the fund that receives it. But revenue is allowed to be transferred from the Electric Fund which is why we pay double the electric rate paid by the surrounding area.
7) The Borough Debt of $14 million is a disgrace for a Borough of 5,000 and don’t forget there are about 1,500 renters.
8) The Borough falsifies the Budget, publishes fraudulent reports and alters foreman reports and does not employ a degreed accountant or retain a CPA.
9) The Reading Eagle recently wrote that the Borough Council voted to appoint a Committee to guide HU. It will take place at the beginning of the year exactly one year after it was recommended by CCG Consulting. The article also stated that HU had 1,000 customers that is the same amount CCG Consulting stated we had one year ago. In other words HU did not gain one new subscriber in a year.
I think it is high time that the Borough elected officials shut down Hometown Utilicom, cut spending and open all financial books and records to the public.

Jerry
Treasurer of the Kutztown American Legion
Post 480 1966-2007 11 years