Special Budget Work session held Tuesday November 17, 2009

The Board of Supervisors conducted a special meeting commencing on Tuesday November 17, 2009 at 9:00 a.m. Chairwomen Ms. Silvernail called the meeting to order, present were Supervisors Mr. Hensel and Ms. Horan, Township CPA Mr. Drozd and members of the community.

Ms. Silvernail announced that the Board would dispense with the moment of silence and pledge of allegiance and reading of any minutes.

Mr. Drozd reported the following comments for the 2010 proposed general fund budget:

Mr. Drozd prepared the budget to allow for raises for the Township Police department due to the contract. Mr. Drozd reduced the vehicle code violations to 13,400.

The estimated Liquid Fuels allocation for 2010 is $76,747.80.

Mr. Drozd added $1,300 for the roof repair expense for the old police garage.

Worker compensation changed from 1.38% to 1.59% because of claim history, this is a 15% increase.

No rate increases were received from Herbert MacCombie or Lamb McErlane for the 2010 year.

The Board requested the mid mount boom mower be removed from the 2010 budget at $36,000.

4 full time employees are covered by health insurance; employees will have to pay $7.74 a month to keep the insurance because it exceeds $540.00. Short term and long term disability will be available for all full time employees as a group policy.

The Board discussed (3) proposals received for the year end audit. They were as follows:

Mingis, Gutowsky & Company $12,250.00
Maillie, Falconiero & Company $14,500.00
Maulo & Company $17,900.00

The Board requested to have the references checked and report at the next meeting. No action taken.

Mr. Drozd stated that he would move the Act 537 monies of $57,500.00 from the sanitary sewer budget to the general fund budget. Mr. MacCombie stated that the Township is still eligible for the 50% reimbursement it may be in 25% increments and the money received must be used to support another Township cause.

Mr. Drozd reported that the carryover balance December 2009 is as follows:

General Fund  $62,400.00
Liquid Fuels  $43,700.00
Act 209    $6,000.00
Capital Reserve $692,200.00
Total: $804,300.00

Mr. Drozd reported the following for the 2010 sanitary sewer budget:

Mr. Drozd reported that the DVC plant in Pomeroy has closed and requested that the Township request a report that will show how many employees are laid off.

The final phase of the sanitary sewer system is currently out to bid.

Mr. MacCombie stated that he received a Pennsylvania American Water Company customer usage report from Mr. Drozd. He stated that it appears that currently 42 homes are not being billed for sanitary sewer and some of the usage is only 39 gallons a day use per customer, Mr. MacCombie stated that this is not normal being as DEP said the Township sanitary sewer customer s will use 200 to 225 gallons per day on average.

Mr. Drozd stated that the Township will have an estimated carryover balance of $178,548. at the end of 2009 and a carry over balance of -$342,280.at the end of 2010.

Mr. MacCombie stated that flows are down and customers just are not using what was estimated, therefore the Township will not receive enough dollars to pay the debt service loan and builders are not building new structures. Currently the Township charges $90.00 flat fee per year and $8.00 per 1,000 gallons used. Mr. MacCombie and the Board discussed if there could be possible meter problems, and reminded the Board that himself, Lisa Myers and Joe Drozd met with PAWC earlier this year to discuss flow data and meters. It appears that all meters are operating properly.

The Board directed that Mr. MacCombie and Mr. Drozd crunch numbers to discuss a possible sanitary sewer rate increase.

The Board discussed scheduling another budget work session to be Monday November 23, 2009 at 9:00 am.

Ms. Silvernail made a motion, seconded by Ms. Horan, to authorize the advertisement of a special budget work session to be held on Monday November 23, 2009 at 9:00 am. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Respectfully Submitted,

Lisa Myers
Secretary/Treasurer