MINUTES

BOARD OF COMMISSIONERS                           LOWER ALLEN TOWNSHIP

BUDGET MEETING                                               NOVEMBER 16, 2020         

 

The following were in ATTENDANCE:

BOARD OF COMMISSIONERS	TOWNSHIP STAFF
Dean W. Villone, President H. Edward Black, Vice President Richard F. Schin (arrived at 7:56 pm)	Thomas G. Vernau Jr., Township Manager                       Erin Trone, Assistant Township Manager Richard Grove, Finance Director
Thomas H. Kutz	David Holl, Director of Public Safety
Carolyn Holtzman	Daniel Flint, Public Works Director
	Leon Crone, Captain, Police Department
	Tony Deaven, EMS Captain
	Frank Wirth, Fire Captain Dave Murdoch, Fire Chief – Lower Allen Fire Co
	Tina Thomas, Recording Secretary

President Villone called the November 16, 2020 Special Budget Meeting of the Board of Commissioners to order at 7:00 pm.  After the Pledge of the Allegiance, he announced that Proof of Publication was available for review.  President Villone said that Commissioner Schin was absent with excuse as he is attending the COG Budget meeting.

 

BUSINESS PERTINENT TO THE TOWNSHIP

There was no response from the audience.

 

BUDGET INTRODUCTION

Mr. Vernau provided a summary of the budget process to date. He spoke about the updated Fire budget including the quint and said that the General Fund has remained the same with a deficit of $263,450. Mr. Grove also said there have not been many changes. He mentioned a second lieutenant being added for a quarter of a year to train with Lieutenant Thomas. A refund from the Township’s health insurance was factored in as well as a 2.4% increase in non-uniform wages. He said that the deficit remains the same.

 

Mr. Vernau said that he and staff have looked for ways to cut money. The most that can be saved would be $198,565 by cutting things like minor equipment on the list he provided. He said Township staff does not believe the cuts are a fiscal necessity as all departments have stayed below the percentages required by resolution. Mr. Vernau noted that the fund balance is high and it needs to be spent down a little. He offered to go through the line items that were suggested as possible cuts. His hope is that the budget is ready to go by next Monday’s BOC meeting.

 

BUDGET DISCUSSION

President Villone agreed that eliminating items from the list would just be pushing them to the future. He also said that many of the items are investments in the community. He asked about the Electronic Message Board, 409-730, which is $25,000. He is unsure if it is necessary right now. Mr. Vernau said he is in favor of the sign because the current sign is no longer supported by software. He added that parts are hard to find. Vice President Black is in favor of the new sign as well as Commissioner Kutz because it provides information to the public. Mr. Vernau said that the Township will continue to use the current sign until it needs to be replaced. President Villone said that he appreciates the departments staying within the recommended guidelines. He said that, based on the resolution, the fund can be drawn down by a million dollars over five years and Mr. Grove agreed that the deficit is not a financial concern.

 

Commissioner Kutz asked about 400-131, part-time office help for $1,620, which has not been used in the past few years. Mr. Vernau said it has been used in the past for specific projects but he does not know of any upcoming needs in 2021. Commissioner Kutz also asked about 402-260 Endpoint Security III for $18,480 and if it is necessary to upgrade to this eventually. Mr. Vernau said that 3rd Element recommends it for their clients due to the security it provides. Commissioner Kutz then questioned the pickleball courts in 452-700 and how the amount of $20,000 was arrived at. Mr. Vernau said that a contractor provided the quote for them. It includes the resurfacing, line painting and permanent nets. He said 4 pickleball courts can fit on one tennis court, and the original tennis nets will stay up to act as a backstop. Commissioner Kutz asked about item 420-124 which provides for Lieutenant salary for one quarter of the year for $42,303. He inquired if there will be 3 Lieutenants on the payroll from January 1^st until April 1^st, and if waiting to promote the second Lieutenant would save the $42,303. Captain Crone said that for 3 months there will be three Lieutenants. He said that holding off on promotion would make the department short because one of the corporals will be pulled from their position to begin training with Lieutenant Thomas. This will eventually lead to an open spot in patrol. Captain Crone said that the department will be looking for an officer early in 2021 to fill the spot that will be opening. He added that the Lieutenant salary line item accounts for every position that follows in the promotions.

 

OTHER FUNDS

Mr. Grove said the Fire Fund is the only one that has had changes made to it. It was found that purchasing the Quint in 2021 would save some money as opposed to waiting until 2023. A loan from the General Fund for $600,000 in the middle of 2021 will pay for almost half of the quint. The loan will be repaid two years later in 2023 by the Fire Fund with 3% interest. This will save 10% in construction costs with very little effect on the fund balance. Mr. Vernau anticipates enough money being in the Fire Fund to cover the cost of the chassis by June. He said there will be another $600,000 payment in November when the quint is finished. Fire Chief Murdoch explained that this particular fire engine has a unique design that allows it to get in smaller spaces but still have the capability of ladders and aerials, as well as being a pumper. This is very helpful for getting through Arcona and other areas with narrow streets. He also said that the long-term plan is to have less units in the fleet but have units with multifunctional capabilities.

 

Mr. Vernau commented on a few of the other funds. He said that there will be a rate increase due to Penn Waste charging the Township more with the extended contract. Under Debt Service, Mr. Vernau said that we owe less than we used to by financing in-house. Commissioner Kutz asked if the plan is to use the fund balance to balance the budget and Mr. Vernau agreed. Mr. Grove said that the fund balance is approximately $6 million. This includes 30% necessary to get a top credit rating and $2 million to cover a recession without raising taxes. As it is now, $263,450 will come from this fund balance to cover the budget deficit. Commissioner Kutz asked if this could be broken down for the Commissioners before they vote on the budget. In response to President Villone’s question, Mr. Vernau said that the budget must be on the table for 20 days and it is usually voted on at the final Board of Commissioners meeting of the year.

 

Commissioner KUTZ moved to put the 2021 Budget on the table starting tonight, November 16^th. Vice President BLACK seconded the motion.  Commissioner Schin arrived at 7:56 ready to participate in the vote, being in agreement with the budget related information discussed at tonight’s meeting. Mr. Vernau reminded everyone that there could be no substantive changes once the budget is on the table. Motion carried 5-0.

 

ADJOURNMENT

The Budget Meeting of the Board of Commissioners adjourned at 7:58 pm.