MINUTES

BOARD OF COMMISSIONERS                          LOWER ALLEN TOWNSHIP

                BUDGET MEETING                                               NOVEMBER 5, 2018                           

 

The following were in ATTENDANCE:

BOARD OF COMMISSIONERS	TOWNSHIP STAFF
H. Edward Black, PresidentRichard F. Schin	Thomas G. Vernau Jr., Township ManagerErin Trone, Assistant Township Manager
Dean W. Villone	David Holl, Director of Public Safety
Carolyn E. Holtzman	Daniel Flint, Public Works DirectorRichard Grove, Finance Director
	Leon Crone, Captain, Police Department
	Frank Wirth, Lower Allen Fire Captain
	David Murdoch, Lower Allen Fire Chief
	Tina Thomas, Recording Secretary

 

President Black called the November 5, 2018 Budget Meeting of the Board of Commissioners to order at 6:02 pm.  He announced that Proof of Publication was available for review.  Vice President Simpson is out of town on business. President Black announced that there will be an executive session following tonight’s Budget meeting.

AUDIENCE PARTICIPATION

There was no response.

BUDGET DISCUSSION

2019 Proposed Budget – General Fund

Mr. Vernau provided the introduction to the Budget Discussion. He stated that our current budget is as follows:  $15,677,410.00 Revenue – $15,564,000.00 Expenditures = $113,410.00 Surplus. In order to make the last tax increase to carry us longer, we need to increase the budgeted surplus. To achieve this, we need to cut an additional $132,000 in spending at a minimum.

Commissioner Schin questioned the roundabout which was mentioned as a budget large project. Mr. Vernau and Mr. Flint explained that this is not coming out of the general fund and we will be reimbursed by PennDOT as the construction moves along.

Commissioner Villone thanked everyone for their help as he learned the budget process. He asked about what the surplus was in 2017 and what it is projected for in 2018. Mr. Grove stated that in 2017 we had a $298,000 loss in the general fund. In 2018 we anticipate a small surplus of $50,000 to $100,000. Mr. Grove also stated that the money coming in from building fees is not sufficient to reach the desired surplus. He explained that the Township is very sensitive to economic changes and new hires also affect the amount of time that the last tax increase will be sufficient.

Operating Budget Increase

Mr. Vernau asked if there were any questions on the memo that shows the 2018 to 2019 Operating Budget Increase. This has all capital items removed. President Black asked if personnel costs were included. Mr. Vernau stated that they are and there is an overall payroll increase of 6.2% if all departments are included. Removing the employees whose rates have been adjusted at a higher level to catch them up, the average employee increase based on performance evaluation is 2.46%.

Department	BudgetImpact	BoardConsensus
Administration:   400-318 Other Professional – Branding Consultant: Hiring a consultant would allow Lower Allen Township to create an identity and attract the right kind of development.  This is not an additional expense since it was in the budget from last year. Mrs. Trone would prefer to wait and see if the Bon Ton creates a new image for the Township and then consider the Branding Consultant.	$20,000	Postpone until after Bon Ton
Finance:  402-730 Capital Expenditure – Finance / Codes Software: Necessary for the Township to advance our software capabilities; it will streamline workflow for Finance and also help the Codes Department with online permit processing.	$15,630 (due to financing)	Leave In: 4
Information Services:407-260 Minor Applications – Microsoft Office E3: Mr. Vernau referred to the presentation he did on status quo vs. purchasing Microsoft E3 licenses. Additional fees would come from the additional mailboxes, cloud backup, and cloud migration tool. 407-312 Service Bureau – Cloud server fee: This annual fee is yearly and could increase 407-421 Training – Security Awareness Training: Online training for employees 407-730 Capital Equipment – Datto Server: This backs up our data to the minute and allows access even if servers crash; one-time fee.	$8,507         $9,600   $2,400   $4,590	Leave In: 3
Community and Economic Development:413-313 Engineering – ARRO Consultants: Help get GIS mapping updated and digitalized; must be finished eventually; also can be used by Public Safety. Allows plans to be done electronically instead of by manual field survey. 413-313 Engineering – Pedestrian/Bike Study: We received a $10,000 grant from the County to update trails and routes already created as well as add additional. Currently another application has been submitted through WalkWorks for another $10,000	$10,000       $10,000
Police:410-132 Salary, Patrolmen: One full year patrolman and one half year patrolman are requested with the goal of adding 4 police officers in the next 3 years. Recommendation is to add one officer each July for the next 4 years to have less impact on the budget. Commissioner Villone is concerned that if we do not hire additional officers now, we may get behind in the number needed in the future. Hiring two in July will save $54,000 in the 2019 budget. Mr. Grove stated that each officer added brings a tax increase one year closer. 410-133 Salary, CSO: Request for additional 624 hours of CSO coverage – 12 hours/week to cover evenings which are currently not covered. They are cost saving as they handle non-reportable accidents, help with school crossings, and write parking tickets.	$170,490                 $8,910	Leave in: 3 / in favor of 2 officers being hired in July         Leave in: 3
Public Safety:415-131 Salary, Public Safety Planner: Part-time position to update Township Emergency Operations Plan, TMI plan, and other Public Safety planning projects. The plans secure Disaster Funding. President Black is in favor if the project is done by the end of 2019 and for $17,000 or less. 415-242 Emergency Management: Smartboard for EOC – Dave pulled this item 415-260 Minor Equipment: QRS Equipment for PSO’s; Provide 24/7 Quick Response Service in our 2 PSO vehicles; equipment for basic life support until EMS service arrives. Karcher Floor Cleaner, needed for cleaning new nonslip Durex floors being installed in fire bays.	$17,000               $2,500     $4,700	Leave in: 3               Leave in: 4     Leave in: 4
Public Works: 440-260 Minor Equipment: Backhoe Hydraulic thumb; attachment needed for the backhoe bucket	$4,600	Leave in: 4
General Parks:452-371 Maintenance of Grounds: Brush mower; needed to mow trails more efficiently Bleachers; replacing wooden bleachers currently in poor shape at Pete’s Field and Wass Park with aluminum bleachers	$4,300 $3,000	Leave In: 4
Lower Allen Community Park:454-371 Maintenance, Grounds: Two bay swing replacement; this swing set at the lower pavilion has been damaged, possibly by someone backing into it Tot Lot playground; equipment is original and outdated. Recreation and Parks have requested new equipment for this playground.	. $5,000   $5,200	Leave in: 3   Leave In: 4

 

In summary, Mr. Vernau stated that we have come up with $70,000 out of the $132,000 necessary cost reductions. He also said that if the additional police officers are approved, a tax increase will be necessary sooner. Commissioner Villone asked what the goal is with the fund balance and Mr. Grove stated that the goal in the long term is to keep tax rates as low as possible which takes a plan. We will be at 28% at the end of the year or $800,000 of $15 million. We should have a surplus the next two years and then the surplus will go quickly.

Mr. Vernau also spoke about a dedication ceremony for Ken Rocuskie’s plaque at Public Works which is scheduled for December 27, 2018 at 8 or 8:30am. This was a convenient date and time for the family to attend.

President Black thanked everyone for their participation with the budget process and stated that he feels we have come up with a result that is sound for the constituents.

ADJOURNMENT TO EXECUTIVE SESSION

The Budget meeting of the Board of Commissioners adjourned to Executive Session at 8:14 pm. Employee wages will be discussed in this session.