Special Budget Work Session Monday November 23, 2009

The Board of Supervisors conducted a special meeting commencing on Monday November 23, 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 stating moving forward with the General Fund Budget, no payroll was adjusted for the 2010 year except for the Township police department due to the newly adopted police contract.

At the Boards request, Mr. Drozd removed the mid mount boom mower attachment that cost $36,000.00.

Mr. Drozd added $57,500.00 for the Act 537 Planning.

Mr. Drozd decreased the budget for the auditing expenses to $39,000.00.

Mr. Drozd stated that the carryover balances as of December 31, 2009 will be as follows:

General Fund $44,000.00
Liquid Fuels $43,700.00
Act 209 $6,000.00
Capital Reserve $692,200.00

Ms. Horan questioned what the difference is in the amount of $92,000.00 in the revenue verses the expense of $122,000.00 for the liens. Mr. Drozd answered that the $92,000 portion of the money is a payback from sheriff sale and the expenses show additional monies for the 2009 unpaid amounts that will eventually go to lien.

Mr. Drozd made the following comments regarding the 2010 Sanitary Sewer Budget

Mr. Drozd stated that the Township will need $692,800 to balance the budget that includes completion of the final phase of sewer and payment of the operating expenses. Mr. Drozd provided the Board with (2) options, they are as follows:

Option 1 raise the flat rate from $90.00 to $450.00 and the gallons per day usage rate from $8.00 per 1,000 gallons to $14.50 per $1,000 gallons with the first 50 gallons per day at zero costs.

Option 2 raise the flat rate from $90.00 to $350.00 per year and the gallons per day usage rate from $8.00 per 1,000 gallons to $14.50 per $1,000 gallons with the first 50 gallons per day at zero costs. There is $66,000 of advance tapping fees available to fund this year’s budget but if the Board chooses this option and a disaster or serious mechanical issues occur with the pump station the Township will have no reserve to fall back on.

Mr. MacCombie reported that in the previous meeting when he said 42 of Pennsylvania American Water Company customers were not being billed was in error, it appears that when one tenant moves out and another moves in they run a report that produces zeros for that previous tenant.

Mr. MacCombie stated that Pennsylvania American had an increase last year of 177% and the Township tried to keep their costs to the residents slightly higher than before. Mr. Hensel asked what the pump station is currently using per day. Mr. MacCombie stated 150-160 thousand gallons per day but the pump station is capable of 410,750 gallons per day. If the Township would have the developments build out as they were supposed to the Township would not have these concerns right now.

Ms. Horan asked why the Township is a bulk customer. Mr. MacCombie stated that the Township began the sanitary sewer project approximately 10 years ago and wanted to have control of the sanitary sewer lines and did so through the Act 537 plan. If the Township was not a bulk customer then Pennsylvania American Water Company would own the lines and could place them anywhere they choose too. Mr. MacCombie stated that the Township’s tapping fees went from $2,445.00 to $2,541.00 which only shows an increase of $100.00 in ten years. Mr. MacCombie stated that Sadsbury has reasonable tapping fees compared to other Township’s.

Ms. Silvernail asked if the Township can raise the tapping fee for future connections for developments that have not paid in advance for their tapping fees. Mr. MacCombie stated “yes” but the Township should not raise the fees until the final phase has been completed, but future connections can have a higher rate.

After discussion, Ms. Silvernail made a motion, seconded by Ms. Horan, to choose Option 1 that will increase the sanitary sewer flat rate from $90.00 to $450.00 per year and raise the rates from $8.00 per 1,000 gallons to $14.50 per 1,000 gallons with the first 50 gallons per day at zero costs. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Mr. MacCombie stated that if the economy was good and the developers built as planned the Township’s rates would be ½.

Mr. Hensel asked what the approximate value of the sanitary sewer system is to the Township. Mr. MacCombie stated if he had to guess it would be between 7 and 8 million dollars. Mr. MacCombie stated that approximately 3 million dollars in assets were donated to the Township in sanitary sewer lines.

Mr. Hensel stated that if the economy picks up the Board can look at the rates again in the spring. The Board agreed.

Ms. Silvernail made a motion, seconded by Ms. Horan, to authorize the advertisement of the final general fund budget and the sanitary sewer budget for public view and comment for the next 30 days. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Ms. Silvernail made a motion, seconded by Ms. Horan, to authorize the advertisement of a special meeting to close the books and adopt the budget on Thursday December 31, 2009 at 9:00 am. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

With there being no further business, Ms. Silvernail made a motion, seconded by Ms. Horan, to adjourn the special budget work session. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Respectfully Submitted,

Lisa Myers
Secretary/Treasurer