Board of Supervisors Agenda

MINUTES
Upper Saucon Township Board of Supervisors
Special Meeting
Monday, November 23, 2009 – 6:00 P.M.
Township Municipal Building

Members Present:
Miro A. Gutzmirtl, Chairman
Stephen Wagner, Vice Chairman
Joseph M. Horvath
John E. Gilda, Jr.
Joaquim “Jack” DeMatos

Staff Attending:
Thomas F. Beil, Township Manager
Robert E. Kassel, Jr., Asst. Township Manager
Dennis E. Harman, P.E., Township Engineer
Sharyn Heater, Director of Community Development
Daniel Stahlnecker, Superintendent of Water/Sewer
Donald Eck, Jr., Superintendent of Roads
Charles Castetter, Jr., Fire Chief
Robert Coyle, Jr., Chief of Police
Karl Schreiter, Jr., P.E., Township Sewer Engineer

CALL TO ORDER
Chairman Gutzmirtl called the meeting to order at 6:00 p.m. in the Public Meeting Room of the Upper Saucon Township Municipal Building, 5500 Camp Meeting Road, Upper Saucon Township, Lehigh County, PA.

PLEDGE OF ALLEGIANCE
Chairman Gutzmirtl asked all in attendance to stand and recite the “Pledge of Allegiance.”

PUBLIC COMMENT
Lynnette Saeger, 5410 Chestnut Hill Road (representing Southern Lehigh Public Library) - Ms. Saeger approached the Board to address reduced funding, a reduction of $17,000, in the Township’s contribution to Library services. Ms. Saeger argued that the Library Board had an unwritten agreement with the Board of Supervisors to maintain the Township’s contribution for Library services at $168,000 until the 2010 census, further indicating that without the agreed to funding level, jobs at the Library would be lost and services would be discontinued. Ms. Saeger argued that the Library was an integral part of the community with continual increases in patronage, most of the increased demand for services coming from Township residents. In addition, Ms. Saeger contended that the Library Board, complying with requests from the Township, has approached surrounding municipalities to increase their contributions.

Mr. Gutzmirtl rebutted the argument contending that in addition to the Township’s contribution for services, the Township also pays debt service for the Library building. Mr. Gutzmirtl also argued that
he knew of no informal agreement between the Board of Supervisors and the Library Board, but he did not think that such an agreement would change his mind. He felt the cuts in spending identified in the budget were required to adapt the Township’s budget to difficult economic conditions.

Aaron Maslonka, President, Upper Saucon Police Union – Officer Maslonka questioned if officer killed in service insurance had been purchased by the Township. Mr. Gutzmirtl assured him that the insurance was purchased and Mr. Beil confirmed that officer killed in service insurance was purchased. Officer Maslonka also asked if the Township was pursuing any avenues other than employee contributions to shore up the pension fund. Mr. Gutzmirtl responded that the Township was open to any suggestions, but did not see any other viable way of making up the shortfall. Mr. Gutzmirtl said that the Township changed Pension Plan Trustees which, based on 2009 results, surpassed the results of the old trustee.

PROPOSED 2010 BUDGET
PowerPoint Presentation by Robert Kassel, Jr., Assistant Township Manager
Mr. Kasssel gave a PowerPoint presentation to the Board on the proposed 2010 Township Budget. A copy of the presentation is attached hereto, made a part hereof, and identified as Attachment “A”.

Mr. Kassel reported that revenues remained firm throughout 2009 and he expected the pattern to continue through 2010, acknowledging that the Board of Supervisors would continue to review revenues and expenses on a quarterly basis in 2010 as they did in 2009. Mr. Kassel did note that Earned Income Tax (EIT) exceeded Real Estate Tax as the primary revenue source for the Township. Mr. Kassel also identified that the Township must monitor 16 different funds, each with specific requirements and rules, all of which must be addressed separately in the budget.

Mr. Kassel explained that the approach to the budget process established for 2010 was to develop a baseline budget. The baseline budget is the cumulative total of each department’s minimum expenditures needed to operate the department, without cutting back on any services. The baseline is the department’s original 2009 adopted budget less “one time” expenditures. Expenses over and above the baseline budget would be identified in decision packages prepared by department heads and reviewed individually. The Board’s Finance Committee and Township Administrators reviewed decision packages submitted by each department head, accepting or denying the request. The final tally of decision packages and the baseline budget constitutes the proposed budget. Mr. Kassel discussed every aspect of the baseline budget explaining each item to the Board of Supervisors and the public. Mr. Kassel and Mr. Beil introduced and discussed all decision packages submitted by department heads explaining to the Board the reasons why they were accepted or rejected.

Mr. Gutzmirtl thanked the Township staff for their relentless effort to keep costs under control for 2010. The budget included projections into 2014, projections that Mr. Gutzmirtl suggested would require the Township to further cut costs in the ensuing years or face the possibility of a tax increase.

Mr. Horvath, Chairman of the Finance Committee, addressed salaries and wages for employees. Uniformed wages will increase as identified by the union contract. Wages for non-uniformed employees will remain flat for 2010. Mr. Horvath explained that the wages in past years exceeded increases in the cost of living and that no cost of living adjustments are expected at the State level, a policy the Township elected to follow.

Motion made by Mr. Wagner and seconded by Mr. Gilda to adopt the tentative 2010 Township Budget and to authorize the Township Manager to advertise the Budget so that final consideration of the Budget can be accomplished at the Board of Supervisors meeting on December 21, 2009 at 6:00 p.m.

The motion was adopted by a vote of 5 to 0.

COURTESY OF THE FLOOR
Jerry Trexler, 5696 Blue Grass Road – Mr. Trexler asked the Board to look into refinancing the debt on the new Library at a lower interest rate. Mr. Gutzmirtl agreed to consider such a request.

Brian McLaughlin – 2340 Taylor Drive – Mr. McLaughlin suggested to the Board that the proposed cuts were quality of life issues, contending that funds projected to maintain recreation areas would not meet the minimum maintenance requirements, funds allocated to open space preservation signs exceeded the Township’s contribution to senior citizen programs, and suggested that the decision to keep employee wages flat would impact morale in 2010. Mr. Gutzmirtl defended the preservation signs and the decisions of the administration on the allocation of funds, emphasizing that the Township’s goal was to preserve all the jobs in the Township during these difficult economic times. Mr. McLaughlin disagreed with the concept of bringing in consultants, and suggested the Township use its existing personnel. Mr. McLaughlin questioned the need for recreational facilities. Mr. Gutzmirtl explained the need expressed by residents for more active and passive recreational parks to improve quality of life goals. Mr. Gutzmirtl invited Mr. McLaughlin to return to the final budget meeting in December to present some of his specific recommendations. Mr. McLaughlin did ask for a clarification on the tax exempt status of the Olympus corporate campus, Mr. Beil said that although Olympus is exempt from local taxes because it resides in a Keystone Opportunity Zone, the company agreed to pay a fee equivalent to the local Township and school taxes.

Aaron Maslonka, President, Upper Saucon Police Union – Officer Maslonka questioned if performance measurements from the Township were authorized under the existing contract. Mr. Beil acknowledged that the question was a legal issue, but along with Mr. Horvath, Mr. Beil stated that the performance measures were intended for non-uniform employees.

Lynnette Saeger, 5910 Chestnut Hill Road (representing Southern Lehigh Public Library) – Ms. Saeger argued in favor of her request to recover the $17,000 cut from the Library budget. Ms. Saeger said that the $168,000 contribution is less than the measurement of “fair share,” a measurement based on the residency of Library users. Mr. Horvath countered that the total cost paid by the Township includes not only the amount for services, but also the amount paid for servicing the building debt ($89,200 per year) which is solely paid by the Township. Ms. Saeger polled the Board on whether or not they supported the reduced funding for the Library. The Board essentially favored the funding allocation as proposed in the budget.

Brian McLaughlin – Mr. McLaughlin wanted to know if there are any restrictions on how recreation funds can be spent. Mr. Beil explained that State law restricts the expenditure of recreation funds to certain projects and improvements.

David DeLong – Upper Saucon Employee – Mr. DeLong asked for a clarification of the increases in health care insurance. Mr. Beil responded to Mr. DeLong’s question.

Lyne Miller – Upper Saucon Employee – Ms. Miller questioned the need for a new salaried position on Township staff while keeping employee wages unchanged. Mr. Gutzmirtl justified the new position as it being a necessary position. Mr. Gutzmirtl received the support from other Board members on the need for the new position. Mr. Gutzmirtl explained that the Township held off on the hire for several years.

ADJOURNMENT
A motion was made and seconded to adjourn the meeting.

The motion carried by a vote of 5 to 0.

______________________
Secretary