MINUTES OF THE MEETING OF THE MANHEIM TOWNSHIP BOARD OF COMMISSIONERS THURSDAY, OCTOBER 20, :00 A.M.

Transcription

1 Roll Call: The special meeting of the Manheim Township Board of Commissioners was held at 8:00 a.m., Thursday, October 20, 2011 in the Morgan Center at the Manheim Township Public Library. As duly advertised the meeting was open to the general public. Members present were: Commissioners Simpson, Casselbury, Downing, Flanagan and Martin and Manager-Secretary Michael D. Rimer. Assistant Manager Sean Molchany and Director of Finance Dawn Stratchko were also in attendance. Various members of the public were in attendance at different times including Steven Mentzer, Manheim Township Treasurer and Tax Collector, and David O Connor, local reporter. Welcome Overview 2012 Budget Workshop: Mr. Rimer welcomed everyone to this meeting. House Keeping Note Book Review and Adjustments: Mr. Rimer then handed out all of the additional pages and gave instruction as to where to place these pages in the Commissioners binders. Updates Since the 9/28/11 Morning Workshop Meeting: Mr. Rimer discussed the following Talking Points and Budget Highlights (which he also handed out at the meeting): Thanks to all Dept Heads and staff for their focus and a real effort to trim for the 2012 spending plan. Funding Structure for 2012: Remember, all RE tax revenues other than Fire Tax are directed to the General Fund (operating budget). This has not been the case in the past with $2 million being directed to the GCRF. The General Fund s anticipated surplus in 2012 is proposed for transfer to the GCRF (capital) - $956,428. (See Table) Capital Reserve Fund There is sizable expenditures planned for the capital reserve fund balance to meet CIP project requests proposed (See Table). Unpredictable EIT Revenue The EIT revenue is set at our best estimate based on recommendations from LCTCB. We anticipate holding this level in the future unless we have new and more accurate data. Expected normalization of EIT is the year Operating Expense Increase Very Low Considering 0.56% increase in operating expenses from 2011, which is very low considering some large increased in some areas. 24 of the Township s 32 GF accounts (75%) remained unchanged or reduced for Increase Reflected for Police per Contract Salary budget reflects a 4% contractual increase, including the Chief and Lieutenants. Page 1 of 8

2 Increase Reflected for a Non-Uniform staff Salary budget reflects a departmental 2% merit based increase. Pension Sees a Cost Increase in 2012 o Non-Uniform 20% o Police 64% Good News on Health Insurance Renewal o Benecon 0% renewal o Self-Insured HRA portion budget lowered to 40% (from 50% in 2011), based on actual 3 year history Overall Sense on Budget Performance This budget is a good to best case scenario budget, with little to no contingency financial resources at the account level should we run into trouble. Because the GF is balance we retain some fund balance, estimated to be $2.1 to $2.7 million. The budgeting and budget performance of the Township is tight. See Section 1B. Using an historical variance analysis at the account level, the staff was able to locate and remove operational resources to keep costs down and for GCRF appropriation. Mr. Rimer said Ms. Stratchko has balanced the budget! Regarding the EIT we will hold that number (4.975) for the next three years. President Simpson said 2012 will be the worst year as this EIT money could be hung up for two more years. She wants to be sure this budget includes an increase for staff and it does. Ms. Stratchko discussed the pension. This year we received $500,000 more than we expected. This will not affect next year s MMO. Commissioners Flanagan and Martin recommended splitting it evenly between uniform and non-uniform. Ms. Stratchko said neither of our pension plans is in distress this year, which will help us next year. Ms. Stratchko discussed health insurance this year was bad! We got back $14,000 for lack of administrative services for two months. The vision and dental portions were the worst. Benecon will do vision and dental for us for no cost. After discussion the Commissioners agreed to authorize Benecon to administer the dental and vision plans now. Ms. Stratchko said the unspent claims money came back to us. Ms. Stratchko discussed wellness incentives and the Commissioners asked her to look into this. Her goal is to keep the cost to the Township to a minimum. Commissioner Casselbury noted pain is more effective than reward; this applies especially financially. Ms. Stratchko said workers compensation has had little to no change. Page 2 of 8

3 Section 1B Background handout: Mr. Rimer discussed Manheim Township s economic environment. He said Laura from the School District will provide their data since the 1990s. Section 6 Capital Improvement Plan (CIP) handout: Mr. Rimer discussed the rent payment and said they plan to renegotiate the lease with the Overlook Community Foundation at the October 24, 2011 Commissioners meeting. President Simpson discussed the Overlook Community Foundation. Steve Mentzer was in attendance and spoke about the Overlook Community Foundation. He felt that the Foundation is a real problem for taxpayers and he would like to see the Commissioners ramp up the termination of the Foundation. After discussion, Mr. Mentzer recommended that the funding of the water line at the Overlook Community Campus should be done entirely by the Overlook Community Foundation. In response to Mr. Mentzer s question, the Commissioners responded that the Foundation members do now have liability insurance. Commissioner Casselbury asked for an accurate cost for maintenance at the Overlook Community Campus. Mr. Mentzer also commented on TDRs. Taxpayers feel these are a disappointment and are now funding the program even though they feel they can t afford this. He recommended eliminating or reducing substantially the $600,000 line item for TDRs. Commissioner Casselbury said the TDR program is too hard on small business people. Commissioner Flanagan said he expects a spirited debate on this during the Zoning Ordinance update. Commissioner Martin discussed parking for the Manheim Township Public Library. Mr. Molchany said they put design funds only in the budget for The Commissioners again discussed TDRs. Commissioner Casselbury said he d like to cut the TDR budget in half. Commissioner Flanagan said he d like to double it. Commissioner Martin said he d like to cut it and take some of it for the Library. President Simpson said she d like it to stay as it is. Commissioner Downing agreed that it should stay in the budget. The majority opinion was that it stays in the budget. Commissioner Casselbury said he doesn t like the formula we use for the TDRs. The market is supposed to drive this commodity. President Simpson challenged Commissioner Casselbury to come up with a better system. The Commissioners agreed to debate this after January. Section 3 Financing Plan: Mr. Rimer explained that this section is about Revenue and said this Financing Plan is current. Ms. Stratchko said the changes include all the real estate millage, the EIT, Comcast (which is down a little because of a sign-on bonus), interest is down because of the economy, pension is going up, foreign fire went up, drug task force, building permits are up, the Lancaster Township contract is up to 6% (Police), and Compost Site fees are up over $30,000 to date because of part-time employees. Discussion ensued regarding the Compost Site. Page 3 of 8

4 President Simpson said there are municipalities pulling out of the Drug Task Force because of rising costs. Commissioner Flanagan reminded the Commissioners that being a part of this is a benefit for informational purposes. Commissioner Downing questioned the LIMC cost of $17,683 for next year. President Simpson discussed pros and cons of staying with the LIMC, including the Watershed Improvement Plan, where Manheim Township is already in compliance. She also said we would take a PR hit if we pulled out of the LIMC. At this point there was a brief break. The meeting reconvened and Mr. Rimer said since we re behind schedule we ll move the Finance and General Government Departments to the end of the Service Delivery section. Departmental Presentations Staff/BOC Interview Section 4 Service Delivery & Section 6 CIP: Golf: Ken Ord, Director of Golf, discussed the Golf Department, calling it an Enterprise Fund. Under Capital he said they would like two new greens mowers, both under state contract, to replace units that are 10 and 11 years old. They also need a new roof on the Pro Shop, so one of the mowers might have to go. There was a loss last year because money was transferred out of the fund. Ms. Stratchko called it an audit entry and will track the details of this later. Commissioner Casselbury asked Mr. Ord if he feels good about the 2012 budget, and Mr. Ord said it s OK; the rain in September was a huge problem. President Simpson and Commissioner Downing said repairing the roof should not be a capital project. Commissioner Martin suggested leaving both mowers in the budget. Mr. Ord noted that $300,000 is projected to be spent on the Sand Trap and he wanted them to work on the Pro Shop too. He said the Golf Department s budget went up $22,000 over last year for salaries and benefits. Commissioner Casselbury said it looks good and that Mr. Ord is running his Department lean and mean! Planning and Zoning: Lisa Douglas, Director of Planning and Zoning, discussed expenditures and said they are just over 2% from last year. She discussed City View, licenses and legal fees. Commissioner Casselbury asked if we get reimbursed for legal fees. Ms. Douglas said we get reimbursed for some of them. President Simpson asked about overtime. Ms. Douglas explained that it s comp time that hasn t been used (equating to time and a half). Mr. Rimer suggested not paying out comp time; Ms. Douglas suggested paying it quarterly. She commented that Planning and Zoning meetings are shorter this year. President Simpson suggested changing their hours so they don t accrue comp time. In discussing capital Ms. Douglas discussed zoning ordinance printing costs. In discussing revenue she said Planning and Zoning revenues are down. There is a split of the building code fees between Code Compliance and Planning and Zoning. The Commissioners discussed the Zoning Ordinance and the Stehli Silk Mill. Page 4 of 8

5 Manheim Township Fire Rescue: Rick Kane, Fire Chief/Emergency Management Director, discussed expenditures and said they want to move uniforms to the Fire Tax. Discussion ensued about items that can t come out of the Fire Tax fund. He said the three fire companies have one combined Manheim Township Fire Relief Association and software. As part of expenditures they bought the new fire trucks, but the Relief Association spent the money to outfit them. Under capital, Mr. Kane said there are three items which they will come out of the Fire Tax. He mentioned that they haven t sold their three used fire trucks yet. He then explained the increase in the part-time pool. Commissioner Flanagan asked if we have any more volunteers. Mr. Kane said yes and they re live-ins, but they often leave quickly. The live-in program is almost full. But they have a driver and officer issue their live-ins are 18 to 20 years old and aren t old enough to drive the truck!. They hope to add two more to the part-time pool. Commissioner Downing asked what the Fire Department is transitioning to. Mr. Kane said the part-time paid firefighter pool has been very successful. All of their part-timers have stayed. We are 7 to 10 years away from a full-time Fire Department. Codes: Don Forry, Director of Code Compliance, discussed the building permit activity reports. Revenues are determined when a permit is issued. The number of permits is the same as in Commercial construction is carrying it right now. Under expenditures Mr. Forry discussed controlling overtime better, working in-house rather than use contractor inspectors, and dues, conferences and training have all been combined. He wants to look at some of their personnel issues next year. He has tried to trim based on past history. He discussed capital requests City View Portal, on-line permitting and service requests and talked about the benefits of this program. The permitting process was discussed, which will mostly be done electronically. Library: Katrina Anderson, Library Director, and Dan Coleman, Library Assistant Director, discussed the current data for the Library: 174,000 people are expected this year, their collections are increasing and their programs have had the second highest attendance in the County! Under expenditures Mr. Coleman said the café manager is doing a great job keeping costs under control. Commissioner Flanagan asked how the geothermal is working out. Mr. Coleman said it s great; they ve adjusted custodial supplies based on actual usage. He stated the Manheim Township Public Library Foundation Board is a 501c3. Their emphasis is shifting from collections to staffing for next year. They want to bring up their FTE to 11.2 for next year and they re working to stretch their dollars. Diversifying their funding source is their goal. Page 5 of 8

6 Mr. Coleman said their PR/Marketing Manager is doing a great job. They would like her position to be full-time (she s currently ¾ FTE). President Simpson and Commissioner Downing concurred. Increasing her to full-time will increase the Library revenue; she s raised approximately $74,000 this year so far. Next year they project she will raise $108,000 as part-time, even more as full-time. Commissioner Downing mentioned the value of the PR/Marketing Manager s expertise in helping other Manheim Township Departments (such as the Barn, etc.). President Simpson agreed that she would be a tremendous resource and said this proposal is budget neutral in that it wouldn t cost Manheim Township anything. Commissioner Martin moved to put this in the budget making Lori full-time. Seconded by Mrs. Simpson. Motion carried four to one with Commissioner Casselbury voting no. They then discussed budgeting procedures for the Manheim Township Public Library Foundation Board. President Simpson said the goal is for the Library Foundation Board to be independent. Commissioner Casselbury questioned the children s library assistant position and special events. Ms. Stratchko explained that this all goes through the Escrow Accounts. Commissioner Casselbury asked to see what goes into and out of the Escrow Accounts in the future. Police Department: Chief Neil Harkins stated he went through some items where he could cut $20, Staffing is budgeted for 65 in 2011 and 62 for 2012 because they re losing three positions, which includes East Petersburg, Lancaster Township and the Drug Task Force. The possible policing of other municipalities was then discussed. The Commissioners then went into Executive Session. When they reconvened, Commissioner Martin moved and Mr. Downing seconded extending the Chief of Police contract for five years. Motion carried unanimously. Recreation: Margie Earnest, Director of Recreation, said the Parks and Recreation Plan will be presented at their next meeting; then presented to the Commissioners at their November 21 st meeting. She suggested they take a look at this on the website. Ms. Earnest said expenditures are down 3% and leisure is down by 6%. Programs are leveling out. They will not run a program that s a deficit she ll cancel it. They eliminated the evening security position. They hope to have evening hours at Stauffer Mansion next year. They did not change their contribution amounts for next year. She then discussed pool revenues. She s working on refining part-time wages. She expects revenue to offset expenses. She discussed the various sites and said mini golf made money this year and called it a success story. Commissioner Martin suggested adding a clean-up charge to the Weaver Road park for next year. Commissioner Casselbury asked about the trees that were cut down at Landis Woods. Carl Neff added no one knows anything about cutting down those trees. Commissioner Casselbury said if they ever cut anything down in Landis Woods to tell him first. Page 6 of 8

7 Public Works: Carl Neff, Director of Public Works, said the Library is coming off of its guarantees, so as these things break we ve been fixing them. He then discussed the Compost Site and the part-time staff who started in June. They discussed commercial and residential rates. Commissioner Casselbury asked about labor costs at the Compost Site. Mr. Neff said there are two guys there three days a week. In response to another question, he said the rate is $30.00 per ton for commercial. Commissioner Downing asked about the 50 charge for Manheim Township biodegradable bags where we pay $1.00 for each bag and then 50 when we dump them at the Compost Site. Mr. Neff said 30,000 bags are put out at leaf collection time at no charge to the residents. The bags cost $36,000 per year. After general discussion, Mr. Neff recommended moving all bags out to the Compost Site, keeping it at $1.00 per bag and 50 per dump with free bags to state road people. Mr. Rimer asked Mr. Neff to comment on the commercial business model. Mr. Neff said we re at 10,000 tons with 5,000 tons allowed; Mr. Rimer said we re at maximum capacity. Mr. Neff then discussed maintenance. Some contracts are coming in less this year than last year. He and Phil Mellott, Assistant Director of Public Works, have cut over $170,000 out of this budget. Under capital, Mr. Neff said we paved nine miles this year. It was $62.00 per ton this year as opposed to $75.00 per ton last year. They discussed the demolition of the two houses on the golf course and Erbs Quarry Road where it s been widened three times and now must be redone. LEDs and retroreflectivity are two projects that must always be updated and will never be done. There is a component of the retroreflectivity that has been extended. Urea will be put at the Buch Avenue site. They discussed the MS4 Clean Water Act going to the Chesapeake Bay. He stressed that Mr. Mellott has been doing a great job. He then discussed the Weaver Road and Community Parks. Unionization was briefly discussed. General Government: Ms. Stratchko talked about decreases (the IT position and salaries and benefits). Commissioner Downing and Commissioner Martin discussed Kelly Wells, Public Events and Community Events Manager, and increasing activities at the Barn. They want to increase the marketing budget for next year by $25, especially for weddings and receptions. They also discussed the lighted billboard on Manheim Pike in East Petersburg near Ethan Allen which is available for $1,000 per month. Mr. Molchany said we don t advertise there every month, but if you agree to advertise there for a year the charge is $800 per month. Mr. Rimer discussed the sign out front. Mr. Molchany said they had to work with Verizon to get a modem inside the sign (with a cell phone connection). It should be functioning within the next two weeks. Finance: Ms. Stratchko said that audit fees will go up $1,000 for next year. She said Steve Mentzer pays the Finance Department $ per month because the Finance Department takes their tax bills when they re not open. And their other source of Page 7 of 8

8 revenue comes from Fire Relief which pays $1,000 to $1,500 to do their bookkeeping. Commissioner Downing thanked Ms. Stratchko for the budget and said it was a great job. Section 7 Other Funds: Mr. Rimer then went through the rest of the budget booklet. Commissioner Martin asked about a Resolution regarding Impact Fees. President Simpson asked why we keep such a big balance in the Parks Capital Fund. Mr. Molchany explained about new parks, new projects and we must control the land. Commissioner Flanagan had questions about the Capital Reserve Fund. He was told the Impact Fee fund budget is just a guess. The Commissioners told Ms. Stratchko that she did a great job on the budget. They just want some feedback on whatever changes are made going forward. Mr. Rimer announced that the presentation on the Recreation Plan, the Zoning Ordinance and the presentation of this budget will be on the agenda for November 21, Adoption is scheduled for December 12 th. Adjournment: There being no further business before the Commissioners, Commissioner Martin moved to adjourn at 4:30 p.m. Seconded by Mrs. Simpson. Motion carried unanimously. Respectfully submitted, Michael D. Rimer Manager-Secretary Page 8 of 8