State of the Borough of Smethport, Pennsylvania 2008
A Message from Mayor Ross Porter - Organizational Meeting Monday, January 7, 2008
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One of the Mayoral duties spelled out in the Pennsylvania Borough Code is to update the Borough Council & the Citizens from time to time as necessary as to the State of the Borough. As we swear in the new council it is the time to take a reflective look at where we are as a Borough, where we need to go as a Borough, what are some of the challenges are facing us and where we can look for solutions.

Part I. Recent Borough Projects and Successes:

A) Switch to AMP-Ohio:
On June 1, 2007 at 12AM the Borough made the switch from Select Energy, a Hess Oil Company owned subsidiary, to AMP-Ohio, a municipal, nonprofit cooperative electric provider. This switch has redefined our present economic condition for now. This will be discussed more fully under Part II below.

B) Opening of Nelson Street-German Street Foot Bridge:
During August of 2007 the Borough opened the Nelson Street-German Street Foot Bridge so that pedestrian traffic could cross at this former important intersection. Now school children, shoppers and walkers have a new route.

C) Recent new Smethport businesses: We are pleased to welcome a number of new Smethport businesses during the last few years: Olson & Tenglund Auto Parts, Inc.; Keppel Stone Works; Everyday Happenings Florist & Gift Shop; Food King Chinese Restaurant; new owners of Cottage House Restaurant. I am probably missing some other new or recent enterprises in this summary.

D) Public involvement and ownership of Borough government:
A community is only as vibrant as its citizens. Citizen involvement in Borough activities is critical. We need to encourage citizen “ownership” through involvement in Borough projects . We need to invite the Smethport citizens to participate in committee work. We need to build teams of citizens to accomplish our goals. To this end I would like to mention several citizen committees currently participating in municipal government:

Smethport Borough Operations Efficiency Committee:
One shinning example of community involvement this past year has been the development of the “Smethport Borough Operations Efficiency Committee”. This is a sort of “brain trust” chaired by Councilman Paul Raymond and made up of citizens Bob Bailey, Tom Ball,
Calvin O’Rourke, and Terry Palmer as well as the Borough Council President and the Mayor. This is a new standing committee that has met regularly throughout the year analyzing investment policy, fiscal software, on-line payments, and general operations evaluation.

Smethport Borough Board of Trade:
Smethport, like small communities across the nation, has been faced with business development challenges as the nation is “Wal-Marted”. The Smethport Board of Trade was organized during 2006 to encourage new business development within Smethport. The Board of Trade has worked closely with the McKean County Economic Development Director on a series of topics including a major fiber optic project. During August a meeting was held at the Borough Offices of top Smethport businesses, including Smethport Toy Company, Backus Corporation, Chef Specialty, Hamlin Bank and Trust, Northwest Savings, and County officials in an effort to bring a major fiber optic trunk line through Smethport.

Also top on the agenda has been the reinvention of the Christmas Store, with multiple meetings held with the owners, prospective buyers and operators, and the Governor.

Meetings are also currently being held to bring a wood architectural molding and millwork industrial manufacturing company within the Borough.
The Borough encourages all citizens and community groups, including the Chamber of Commerce, to become involved in Smethport economic development. Each community organization should make it its focus to encourage business development within the Borough. Community members in the Smethport Board of Trade include: Sean O’Day; James R. Herzog; Ernie Long; Jamie Pierotti; Mayor Ross Porter; William Todd; Dale Smith; and Woodward Romine.

Smethport Shade Tree Commission: Another excellent example of community involvement has been the Smethport Shade Tree Commission. Through the diligent work of this committee, with the assistance of Dr. Tim Pearson of the Penn State Extension and committee members Jeff Tanner, and Linda Lake and Chair, Jovanna Porter, the Shade Tree Commission tackled the huge problem of grappling with the declining Borough community forest and developing a long range Borough reforestation program. As a result of their efforts the Borough is receiving a 2008 CDBG Grant of $38,000 to plant new trees throughout the Borough. This is the first step of a three year replanting program that included a complete GPS inventory of the Borough community forest by the Shade Tree Commission. The Borough of Smethport will be replanted with hundreds of new trees which will redefine our Borough streetscape in years to come.

Smethport Planning Commission:
The Smethport Planning Commission worked tirelessly during 2006 and 2007 to create a sign ordinance for the Borough. The Sign Ordinance was not approved by the Borough Solicitor and the Planning Commission will need encouragement to continue their work. Smethport Planning Commission includes members Jenny Nielson, Chair Tina Ponivar, Jovanna Porter, and Renee Snyder.
Smethport Historic Registry Commission: The Smethport Historic Registry Commission was approved by Borough Council during 2006 as a local historic registry project to promote the recognition and preservation of the many historic properties, both restored and unrestored that are located in the Borough and its immediate surrounding region. To date 28 buildings are officially registered. There are no restrictions on the property owners as to what, if any restorations take place, but property owners are encouraged to improve and historically preserve these Smethport treasures. The Historic Registry Commission is headed by Chair, Mary Pierotti, Lester Jordan, Jr., David Johnson with the Mayor as a non-voting member. A listing of the Smethport Historic Registry properties is located at <http://www.smethportpa.org/ registrylisting.html>

Smethport Heritage Council: The Smethport Heritage Council is a new, 21 member council organized by the Borough during 2007 with a mission to implement the Route 6 Heritage Community work plan.

During 2003 Smethport was chosen as the first Community along the US Route 6 Corridor as a Heritage Community and awarded a grant to devise a long range plan to develop “heritage tourism” within the Borough and the region. The Smethport Chamber of Commerce, on behalf of the Borough, facilitated the development of the long range plan with the assistance of the Commonwealth of PA, PA Route 6 Corporation and the EADES group.

The Heritage Council meets monthly in the Borough Office Meeting Room and interested citizens are encouraged to attend and participate. Most of the real work of the Heritage Council is done within its many subcommittees. The next Heritage Council Meeting is Wednesday, January 23 at 7PM and interested citizens are encouraged to attend.

Smethport Mansion District Walking Tour Project: The Smethport Mansion District Walking Tour Project, now a subunit of the Smethport Heritage Council, was formed following the successful grant award from the Pennsylvania Lumber Heritage Region during 2006. The Mansion District was recognized as a unique Smethport asset and awarded a $15,000 grant funded in part by DCNR-Lumber Heritage, with matching funds from the Allegheny National Forest Vacation Bureau and the Smethport Chamber of Commerce.

During late 2007 two more grants for Phase II of the Mansion District Walking Tour project have been applied for by the Heritage Council to fund further signage of the Mansion District. One grant provides matching funds for the second grant so both grants must receive funding for Phase II to be implemented.
Potato Creek Trail Association: The Potato Creek Trail Association, under the auspices of the Borough, is a new Smethport community foot trail and motorized trail association that is working closely with the Tuna Valley Trail Association and the McKean County Snowmobile Association to develop a network of foot trails, “rails to trails”, and snowmobile trails connecting Smethport directly with the other trail networks in the county as well as to the Allegheny National Forest.
Work Meetings for the newly forming Potato Creek Trail Association will be on Wednesday, January 9 and Thursday, January 17 at 3:45 PM until 5:45 PM to work on Mission Statement , Vision Statement, and initial simple mapping of existing and future trails on county topo maps.

This is simply an overview of some of the projects and initiatives undertaken by the Borough

Part II: Problems & Challenges facing the Borough:
I. Aging water system: The Borough Council is currently studying a massive rebuild of the underground water supply system. This is a major, multi-million dollar infrastructure project that will require a long term loan through PennVest. Last year the project was estitmated to cost $11,000,000. The cost for the same project this year has spiraled out of control to $20,000,000.

We need a full-press to scour both state and federal grant sources as well as lobby our representatives to assist us in any additional way on this project. The securing of additional sources of revenue must be a primary focus.

II. Electric:
There are 961 Boroughs in the Commonwealth of Pennsylvania. Of those 961 Boroughs, Smethport has the unique distinction in being one of only 35 communities within the Commonwealth that owns its own electric power company. This electric ownership has resulted in a long history of low Borough taxes.

On June 1, 2007 at 12AM the Borough made the switch from Select Energy, a Hess Oil Company owned subsidiary, to AMP-Ohio, a municipal, nonprofit cooperative electric provider. This switch has redefined our present economic condition for now. Fiscally we are finishing 2007 in the black and starting to rebuild our depleted capital reserve. This is a milestone for our Borough. But we must take action to insure financial stability in the future.

A) “Power Cost Adjustment” Clause for Borough Electric Needed: The Borough presently is fiscally solvent. But fiscal stability is not insured. The Borough must continue its fight for a Power Cost Adjustment clause through the Pennsylvania Utilities Commission so that we can guarantee that the Borough expenses to operate our Electric Department do not exceed our income of the sale of electric. A Power Cost Adjustment clause will tie our profit margin directly to our expenses to operate just as in the private sector. This is of supreme importance for the economic future stability of the Borough of Smethport. The Borough has been in discussions with AMP-Ohio seeking their legal assistance with the PUC in this endeavor. During August the Mayor met, in Columbus, with the Chief Financial Officer of AMP-Ohio and received a pledge of support from the company to assist the Borough with its PUC Power Cost Adjustment clause.

B) “Cost of Service” Study Needed: AMP-Ohio has requested that we do a Cost of Service study so that we are in a position to secure a Power Cost Adjustment clause. The Cost of Service Study will give us the ammunition we need to make the case for a permanent Power Adjustment Clause. The study will direct us on a number of criteria helpful in making our case to the PUC.

III. Shrinking Business District:

Loss of Christmas Store: The closing of America’s First Christmas Store in December 2005 was a symbolic tragic loss for Smethport. This was our flagship tourist business until its closure. The loss of the Christmas Store, coupled with the earlier destruction of the Kinzua Viaduct, was an intense, double whammy for the Borough. One of the very top goals for the Borough is to move a new business into the former Christmas Store/Hamilton Building location. This is Smethport’s symbolic “anchor store” business. With the loss of the Christmas Store Smethport is not whole. There has been a multitude of meetings and multiple discussions with potential buyers and two meetings with Governor Rendell. We have the Governor’s support and interest. We just don’t have the right buyer. There have been many potential buyers but the facility remains empty.

Main Street Development: One only has to look down the business district to see the loss of businesses. Smethport’s business district has been on decline for many years. This is not a phenomenon limited to Smethport. Small communities across the nation are facing a decline of Main Street thanks to the Wal-Marting of America.
But not all communities are declining. Smethport needs to reinvent itself. A 2007 Pen-Dot traffic count for US Route 6 indicated that over 5,200 vehicles pass through Smethport daily. This means that over 150,000 vehicles a month pass through Smethport. Smethport needs to capitalize on that traffic. We need to actively find new, niche businesses that will attract some of the Route 6 traffic.

One of the goals of the Route 6 Heritage Community work plan is the development of Heritage Tourism. We need to lure in some of the traffic passing through our community
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ACTIONS:
Basic Concept: A Community that does not invest in itself and its future can not expect private investors to invest in businesses within the Borough.
In accordance to the Smethport Heritage Community Work plan:

A) Smethport needs to join the Main Street Program: The Main Street Program, established by the National Main Street Center of the National Trust for Historic Preservation is a highly successful community revitalization strategy that helps to rebuild downtown communities and strengthen the local economy. The underlying premise of the Main Street approach is to encourage economic development within the context of historic preservation. The Main Street program encourages the rebuilding of the historic commercial district by encouraging the development of pedestrian friendly, locally unique businesses that appeal both to our local population as well as the passer-by.

Solving our problems requires us to boldly make a financial investment on behalf of the Borough and our future. We need to invest in Smethport.
Basic Concept: A Community that does not invest in itself and its future can not expect private investors to invest in businesses within the Borough.

B) We need to invest in Gateway Signage: Our community image is fundamentally important to our economic well being. First impressions are important to communities. Our gateway into Smethport is our “front door”. Our gateway provides the introduction to our community.
Matching fund grants are available to provide one-half of the cost of creative gateway signage.
Basic Concept: A Community that does not invest in itself and its future can not expect private investors to invest in businesses within the Borough.

C) We need to invest in Main Street Streetscape: Streetscape consists of street paving, sidewalks, traffic lights, public signs, landscaping and public art. A historically pleasing streetscape can repay its cost in increased tourism and shopping revenue, increased citizen use of public spaces, enhanced community pride, and new investment by the private sector.

Again: A Community that does not invest in itself and its future can not expect private investors to invest in businesses within the Borough.
Matching grants are available to the Borough as a result of our Heritage Community designation and planning grant. We must be bold and invest in our future and take advantage of the opportunity to reinvent our community.
To act will build a bright future for the Borough of Smethport. Inaction will lead to an inevitable economic decline.
Revitalization of our downtown and extended business district will revitalize Smethport’s local economy.

Ross Porter Mayor- Borough of Smethport January 7, 2008