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The budget
meeting of the Township Committee was held this date at the Municipal/Police Building located on Little Philadelphia Road. The meeting was called to order at 9:00 a.m. by Mayor David Dempski.
SUNSHINE LAW COMPLIANCE - The Mayor
noted that this meeting was being held in compliance with the Open Public Meetings Law of 1975 in as much as a notice had been published in the Star Gazette and transmitted to the Express Times and posted at the municipal building.
ROLL CALL: Horensky, present; Kovacs, present; Mueller, present; Strunk, present; Dempski, present. Township Clerk Mary Ann O’Neil, Clerk, Andrew Coppola, Dave Evans, Auditor and John Mooney were also present.
Kovacs said that a
letter dated January 18, 2006 from ADT had been sent to the Township giving
a quote to continue with the alarm system at the Brown and Brown Building. Their proposal is for inspection of the checking signals and the Certificate of Inspection is $480. The Monthly Monitoring Cost would be $50.00. Kovacs asked for approval to have the inspection for the checking of signals and Certificate of Inspection. The Mayor asked if they could use internet access or do they have to have a telephone line. Kovacs said they will need a telephone line to do the monitoring. Kovacs said that other things would have to be done, the police would have to be notified and there is a reset code that the police would have to have and a member of the committee gets a call that the alarm went off. Kovacs said there is no telephone line, so the monthly monitoring could not be done at this time, but the inspection could be done. Mueller made a motion to authorize Kovacs to proceed with ADT hooking up the alarm system for the Brown and Brown Building, Horensky seconded.
ROLL CALL: Mueller, yes; Horensky, yes; Kovacs, yes; Strunk, yes; Dempski, yes.
Strunk asked if a telephone line is going to be put in. Kovacs said something should be done because people will be working in the
building. Strunk said the alarm needs a dedicated line, so another line would be needed for general phones. Horensky made a motion that a dedicated line be installed at the Brown and Brown Building, Kovacs seconded.
All were in favor.
The Mayor will call the telephone company to see how this is connected, but agreed a dedicated line is necessary. The Mayor will give Kovacs the information when he gets it.
The Mayor said the Committee
was present to start the first meeting of the 2006 Budget Planning Process.
Strunk said that he wanted to thank everyone that had a part in putting the budget together.
It was a challenge with everything that has been happening in the Township. There are still additional challenges to face and he asked that Dave Evans speak as to how they got the preliminary numbers, what has been done and what temporarily has been plugged. Evans said the expenditures side of the budget is something the Township has about 95% control over, but there are still items that may come forth once the Annual Financial Debt Statement (AFS) is finished. The basic spending plan can be worked and agreed upon. What needs to be verified is the debt service, preferred charges and reserve for uncollected taxes. The AFS will give you the surplus numbers, required 2006 appropriations, tax collection percentages, realized miscellaneous revenues, delinquent tax revenues allowed, delinquent revenues taxes for 2006, and other information that is needed before the budget can be introduced. Evans said, as he told the Committee in 2005, he recommended not to introduce the budget until the State discloses the 2006 State Aid Numbers.
Strunk said that Coppola has tried to do the AFS and has run into a snag. Coppola said that in closing out the general ledger, that
the expenses is something that he has never seen before and it doesn’t seem to work. Evans said that what happens is that with some tax collectors, that they have their pot of money and send over money pretty much when they feel like it and you cannot match up January’s receipts with the Treasurer’s deposits. Evans said that what he has advised some Treasurers to do is just take the money and put it into a collectors account and when you get the collectors report you allocate it out. However, Evans was advised that the Tax Collector still has not closed out December yet. The Collector has provided much information, but the Committee will have to get him moving if there is more information from him to be gotten, then they will close out, Evans said that Coppola did a great job on the expenditures and putting the budget together. Evans said if the Township wants him to do the AFS they have to let him know. Strunk said that Coppola feels with what has happened, it is beyond his capability to complete it. Strunk said if Evans is going to do it, it would cost approximately $5000. Evans said the AFS, by Statute, is due February 10th, but you are allowed an automatic five day filing period, so it is not considered late until February 15th. There is a $5 a day late fee for every day that you do not file after February 15th. So, even if you were ten days late, it would cost only $50. Evans said he has to do it, he would have to send a swarm of people in to get it done. Evans said that pulling the AFS together requires a lot of time and a lot of expertise.
Horensky said that Coppola has done a great job, but admits the Township is behind. It has been a very rough year that the Township went through. It is very complicated what needs to be done.
Horensky said he would be in favor of authorizing Evans to do it, just so they know it has been done right. It is creating the foundation for future years. Horensky said this is not a bad reflection on what Coppola has been doing, he has been doing an excellent job, but the Township is at a point in time where they have to start fresh and get a firm foundation and get it done correctly. Strunk asked, once this is done, will it get it to a fresh start point that when a new CFO is hired, that it will give them a place to start from and go forward. Evans said absolutely. Evans said they will sit with the new CFO and work with them to put in the entries to bring their 1/1/06 balances in agreement with the audit report for a starting date. Evans said it is extremely important that the CFO has a good ongoing dialogue with the auditor throughout the year. The bank reconciliations should be done on a monthly basis and the cash balance agree with the general ledger. Evans said they can get the CFO to the point of having good reliable beginning balances and it is incumbent to take the balances and do their work on a regular basis and prove themselves.
Evans said it will take a couple week to do the AFS and they will probably run right through until February 15th. If they go this date, whatever the fine would be, he would pay it.
Horensky made a motion to authorize
Dave Evans’s firm to do the AFS for the Township, including the meeting with the CFO, at a rate of $5000, Mueller seconded.
ROLL CALL: Horensky, yes; Mueller, yes; Kovacs, yes; Strunk, yes; Dempski, yes.
Evans said that the
Township authorized debt where you spent the money, but never issued the debt.
Now you have limitations on this, depending on the bond counsel that some will not allow you after three years to issue the debt. So, the only option left is to raise it in the budget. In this scenario, he recommended that they raise a portion of it each year to catch up. Evans said, if the Township is at 2.8 cents now, and there is $278,000, the first question would be, what do you want the local rate to be? Then, he would feel comfortable to bringing this down to $50,000 or $60,000, as long as the Township is on a definite plan to clean up the debt. Evans said the Township cannot be held hostage on what the school and County is doing, you have to look at what the Township can control, which is the local tax rate only. Strunk said the Township needs to increase the spending as far as trying to reduce the debt. Right now there is a projection ten years down the road that the Township will get bit with an enormous bill that will have to re-bond for things already used. So a plan must be developed somewhat similar that is in place now with the $278,00 to get rid of this. Evans said it is an expense, depending on where you want your tax rate to be, there is room on what you want to do. Strunk said, right now there is $ 130,000 must be trimmed from the budget to bring it to a level to where they can keep the $287,000 debt
Evans suggested that the Committee focus on what they want to spend and then get some idea of the parameter they want as far as tax rate, then he can come back, once he has the AFS done to deal infinite
terms on what the tax rate will be. The Committee went over each department salaries and expenses and tried to cut the budget. They also went over expenses at the New Municipal Building (Brown and Brown Building).
Peter
de Boer, Public Works Manager came before the Committee and they went over the DPW Salaries Overtime and Expenses. de Boer would like to have a part time clerical worker once the office moves to the new building. The Committee did not think it was necessary at this time. de Boer would like to see all the roads in the Township paved and/or reclaiming with some major drainage and sub-base work. He suggested it be put to the people as a referendum. It would cost $2 million dollars. After discussion, the Committee asked Coppola to put some information together on a $2 million bond payable at $200,000 a year for the next ten years. de Boer would like a new front loader. There would be different options on getting it, it could be leased or bought outright. Coppola is to review the various options and give a report to the Township.
Police Chief James Mc Donald came before the Committee and they went over the Police Salaries, Overtime and Expenses. The Chief will be replacing three vehicles, two police cars and a Durango. There was discussion on
leasing the new vehicles, how many we are still leasing and if any are coming off.
Coppola said none are coming off at this time. It was determined that Officer Phil Smith was in budget twice at a salary of $64,000. This was left in the budget at this time. The Chief said that he does not make as much money as his men, because he does not have any overtime. He is getting $82,000 and requested that the Committee give him an additional $3,000 to bring his salary up to $85,000.
The Committee went over the balance of the budget.
The Mayor left the meeting at 12:20 p.m. It was realized that the Committee could go no further on the budget at the February 4, meeting. After discussion, Strunk made a motion to cancel the Budget Meeting of February 4, 2006 at 9:00 a.m. and it be rescheduled for Saturday, February 25, 2006 at 9:00 a.m., Kovacs seconded.
ROLL CALL: Strunk, yes; Kovacs, yes; Horensky, yes; Mueller, yes.
There being nothing further that could be discussed, Kovacs made a motion to adjourn at 12:45 p.m., Horensky seconded. All were in favor.
Respectfully submitted,
Mary Ann O’Neil RMC/CMC
Township Clerk
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