Proposition No. 4

CAPITAL IMPROVEMENT PROJECT COST LIMITATION

To be voted on by all borough voters

Shall Initiative Ordinance 2005-01 reducing the cost ceiling from $1,500,000 to $1,000,000 on borough capital improvement projects that require voter approval and additionally requiring that all capital improvement projects in excess of $1,000,000 be approved by no less than 60 percent of voters in an election of the citizens residing in the affected area be adopted?

YES [A Yes vote would require no less than 60 percent voter approval of any borough capital improvement project over $1,000,000, whether funded by federal or state grants, or modifications to capital improvements required by Borough Code or State Statutes. Insurance proceeds are exempt from voter approval. This would be retroactive to April 15, 2005.]

NO [A No vote would defeat the ordinance and would retain the existing $1,500,000 cap on capital projects that could be constructed without voter approval.]

PROPOSITION SUMMARY:

On August 4, 2005, the Borough Clerk certified an initiative petition which seeks to reduce the cap on all borough capital projects over $1,000,000 that can be constructed or acquired without voter approval. Projects must receive an affirmative vote by no less than 60 percent of the affected voters for such projects to be approved.

Currently, capital projects with a total project cost of $1,500,000 or more must receive voter approval unless the Borough Assembly waives the requirement for such approval by ordinance. Federal and State grant funds are not included in the $1,500,000. Repair or replacement of damaged borough capital projects, paid through insurance proceeds, does not require voter approval in both the existing ordinance and this initiative ordinance.

Initiative Ordinance 2005-01 would require that capital projects costing over $1,000,000, regardless of the funding source (including federal grants, state grants, borough funds, and other funds), must be approved by no less than 60 percent of the voters residing in the affected area.