A special budget work session of the Board of Supervisors was conducted on Monday, November 26, 2012 commencing at 9:00 a.m. Chairwoman, Ms. Silvernail, called the meeting to order. Present were Supervisors, Mr. Greenfield and Ms. Horan, Township Engineer/Zoning Officer, Mr. MacCombie and Township Accountant, Mr. Drozd.
The moment of silence and pledge of allegiance were waived.
Mr. Drozd began the meeting with changes that were requested to be made from the previous work session. Ms. Silvernail stated that there is still some question about the salary per year of the full time police chief position. Ms. Silvernail feels that the budgeted salary is too high and could be tweaked. Mr. Drozd stated the camera was deleted for the park at a cost of $4,500 and maintenance for the ball field was added for a cost of $2,000.
Mr. Drozd stated that a signed contract has not yet been received from the Road Department and the union. There has been no union dues paid as of yet. Mr. Drozd stated that work boots have been added and he understands the contract stipulates that the Township shall pay $560.00 per month of the health care cost per person. Mr. Drozd stated the police contract in place 1/1/2009 stipulates the Township will pay $540.00 per month per person. There is one office employee non-union who the Township pays $540.00 per month. Mr. Drozd stated he is still waiting to hear from Bob Ward from Whitford Insurance Company as to what the cost of healthcare will be for 2013. The healthcare plan was changed last year without the Board’s knowledge, and this year has to be changed back to the original plan due to the Police Contract. Mr. Drozd will keep the line item on the budget at $560.00.
Mr. Drozd stated there may need to be an increase in taxes for the year 2014 for a fire tax. Ms. Silvernail stated that the Fire Company Consolidation cost to the Township will go up if Sadsbury Fire Company decides to join the consolidation.
Mr. Drozd stated the Sewer Fund has an increase in carry over because buying a new communitor instead of fixing the old one saved $20,000.
Mr. Drozd stated the overall debt in sewer including the unpaid back billing for multiple EDU’s is $299,287.00. Mr. Drozd stated that the Township’s share is $175,000 and Pennsylvania American share is $123,000. Ms. Silvernail stated the sewer budget would be in much better shape if we did not have this debt.
Ms. Silvernail asked Mr. Drozd if it would be beneficial to refinance the sewer loan to consolidate the sewer account, as approximately 1/3 of the balance on the sewer budget is from unpaid invoices. Mr. Drozd will look into the benefit of refinance.
Mr. Drozd stated the 2013 proposed budget sets the flat rate to cover the annual debt service at $360.00 per year for the flat rate and $12.50 per 1000 gallons for the usage rate. Mr. Drozd stated he expects the sewer rates to increase in 2014 because of the Pennsylvania American Water Company rate increase. Mr. MacCombie stated the rate increase will be based on Pennsylvania American Water Company rate of $6.99 per 1,000 gallons to an increase for 2013 of $8.66 per 1,000 gallons.
Mr. Drozd stated that he has two options for a tax rate increase.
Option 1: Current millage .25 mills
New millage 1.90 mills
.9 mills relate to police majority of which is for payroll
Option 2: Current millage .25 mills
New millage 1.15 mills
.9 mills relate to police majority of which is for payroll
This option requires the General Fund borrows $175,000 from the capital to complete the Compass Road Storm Sewer Project.
Since the Township does not plan to do any major road work until 2016, the General Fund will repay the Capital fund over the following 2 budget years
2014 $87,500 plus interest at 2%
2015 $87,500 plus interest at 2%
Mr. Drozd stated this approach will help minimize the 2013 real estate tax impact of doing this large project by spreading it out over 2 years.
Other factors indicating the need for a tax increase are that property transfer taxes are down and the fact that many homes in the Township have applied for and gotten tax reassessment lowered on their property, tax income is down from previous years.
Ms. Silvernail stated that Mr. Drozd should start with option #2 and try to do some updating with figures and the Board will discuss this item at the regular Board of Supervisors meeting on December 4, 2012.
Ms. Silvernail polled the Board as to if they would like to have another work session on the 2013 budget. All the Board members agreed and are available, as is Mr. Drozd. The Board set the next work session for Thursday, November 29, 2012 at 9:00 a.m. Ms. Silvernail instructed that this date be advertised for the final work session and also advertise Monday, December 31, 2012 to vote on and adopt the 2013 budget.
Mr. MacCombie stated he has been monitoring the Stottsville Hotel for sewer usage. Mr. MacCombie stated he looked at and wrote a letter to the owner of the Stottsville Hotel. The owner is seeking to change his EDU count to 3. Mr. MacCombie stated he will continue to monitor his flow and make sure his usage continues to be equal to 3 EDUs. Mr MacCombie made it clear that there will be no credit for past usage and if the flow picks up and additional EDU’s are needed, they will have to be repurchased from the Township at the present rate. Mr. MacCombie will write a letter to the Board of Supervisors about the reduction of The Stottsville Hotel’s EDUs.
With there being no further business, Ms. Silvernail made a motion, seconded by Ms. Horan to adjourn the meeting. With there being no questions, the Board voting “aye”, the motion passed unanimously.
Respectfully Submitted,
Linda Shank
Assistant Secretary