Board of Supervisors Agenda

MINUTES
Upper Saucon Township Board of Supervisors
Special Meeting
Saturday, November 29, 2008 - 10:00 a.m.
Township Municipal Building

Members Present:
Miro A. Gutzmirtl, Chairman
Stephen C. Wagner, Vice Chairman
John E. Gilda, Jr.
Joyce V. White

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

CALL TO ORDER
Chairman Gutzmirtl called the meeting to order at 10:00 a.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
Public Comment is summarized as follows:

Mark Wirth – 2438 Black River Road – Mr. Wirth was concerned about development in Upper Saucon Township causing stormwater problems on his property at 2438 Black River Road which is located in Lower Saucon Township.

Chairman Gutzmirtl instructed Mr. Beil to contact Mr. Wirth to further discuss his concerns.

PROPOSED 2009 BUDGET
PowerPoint Presentation by Robert Kassel, Jr., Assistant Township Manager
Mr. Kassel gave a PowerPoint presentation to the Board on the proposed 2009 Township Budget. A copy of the presentation is attached hereto, made a part hereof, and identified as Attachment “A.”

Discussions concerning the 2009 budget are summarized below:

• Police Budget – The amount budgeted for police department expenses in 2009 was $2,046,600.
  
  Chairman Gutzmirtl asked Chief Coyle to look into purchasing extended warranties for new police vehicles.
  
  Mr. Gilda noted that for the past few years, certain line items in the police department budget are increasing at a rate much higher than the rate of inflation.  He was concerned that the Township’s current tax rate could not be maintained if this trend continues.

• Debt Service for Library Building – Chairman Gutzmirtl questioned if the interest rate associated with the debt service for the library building was a fluctuating rate.
  
  Mr. Kassel replied, no, the interest rate was fixed, but because of the amortization schedule, the amount due was different each year.

• Employee Pensions – Mr. Horvath asked about the investment of pension funds during the period when the Township was changing Trustees.
  
  Mr. Kassel explained that losses to the Township’s pension funds were minimized when the stock market crashed because the pension funds were being transferred to a new Trustee.

• Cash Flow Summary Projection for 2009 – Al Cancellieri of 1790 Flint Hill Road requested a cash flow summary projection for 2009.
  
  Mr. Kassel said the Township does not prepare cash flow summary projections, however, the Township does try to maintain a 10% reserve in the event of a revenue shortfall.
  
  Chairman Gutzmirtl added the budget was flexible and if the economic downturn worsened, adjustments would be made to compensate.
  
  Mr. Cancellieri was glad to hear the Township was safeguarding itself and residents.

• Road Construction Capital Reserve Fund – Mr. Wagner questioned what institution held the fund, if it was an individual account, and if so, what type of account was it. He was also curious about the details of the $600,000 borrowing.
  
  Mr. Kassel addressed Mr. Wagner’s questions saying, the fund was a special individual money market account held by Quakertown National Bank and FDIC insured for up to $250,000. As for the borrowing, Mr. Kassel said that it probably would be done through a bank loan of some sort.
   

• Real Estate Tax – Mr. Beil pointed out that while the 2009 budget was the tightest and most difficult budget he had worked on, he was proud to say that for the 20th consecutive year there would be no real estate tax increase by the Township. In addition, he said there would also be no increase in water and sewer rates for 2009.
  
  Chairman Gutzmirtl felt it was a noble accomplishment given the fact that many surrounding municipalities are increasing taxes this year.   He complimented the hard work of Mr. Beil and Mr. Kassel.
  
  Mr. Gilda clarified a point he made earlier saying he was not trying to single out the police operating budget. He noted that other areas of the budget were also increasing at a rate that would not be sustainable in the future.

• Amendment to the Land Acquisition Fund – Mr. Beil asked the Board to consider setting up a special annual open space grant program.  The grant would be in the amount of $2,000 and would be awarded to a resident or local business that has a creative approach to promoting open space or educating the public about the benefits of open space.  It was the consensus of the Board to budget an additional $2,000 to account number 33-400-500 in order to fund the open space grant program.

• Taylor Drive Road Project – Mrs. White was upset that the Taylor Drive road project was removed from the budget again for 2009. She said she understood the circumstances behind the decision, but hoped that it will be a priority in 2010.

Adoption of Tentative 2009 Budget
A motion was made by Mrs. White and seconded by Mr. Wagner to adopt the tentative 2009 Budget which includes an additional appropriation of $2,000 to fund the open space grant program, 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 23, 2008 at 6:00 p.m.

The vote was taken by roll call, and the results were as follows:

Chairman Gutzmirtl: Yes
Mr. Wagner: Yes
Mr. Gilda: Yes
Mr. Horvath: Yes
Mrs. White: Yes

The motion carried by a vote of 5 to 0.

COURTESY OF THE FLOOR
None

BRIEF RECESS
The Board took a brief recess before proceeding with the agenda.

FIVE-YEAR CAPITAL BUDGET PLAN – 2010 THROUGH 2014
PowerPoint Presentation by Thomas Beil, Township Manager
Mr. Beil briefly reviewed a PowerPoint presentation on the Five-Year Capital Budget Plan, which listed the various projects under consideration and the possible funding sources for each.  The presentation included building and grounds, administration, park and recreation, (including the rails to trails project), land preservation, public safety (police, fire, and ambulance), storm water maintenance, drainage, road improvements (Taylor Drive and Afton Village projects), planning and zoning, water system, sewer collection, and sewer treatment plant projects.

At the conclusion of the presentation, Chairman Gutzmirtl asked how the cost of these projects compared to the cost of the projects done over the last five years, and if the plan was an aggressive or realistic plan.

Mr. Beil replied it was a wish list that was overly aggressive. It would be up to the Board to determine what was feasible. As for a cost comparison, he told the Chairman he would have to compile the information and get back to him at a later date.

Mr. Gilda said it was good to see all of the projects and funding sources on paper. He said it was now the Board’s responsibility to determine what constraints exist and how to prioritize within those constraints.

Mrs. White’s only concern was if the list was publicized, residents would be disappointed when the projects were taken off the table.

Chairman Gutzmirtl understood Mrs. White’s concern, but was concerned himself that the Township had been operating without a clear cut plan. He felt the plan was a step in the right direction allowing the Board to see into the future and comprehend the magnitude of things to come.

Mr. Wagner agreed saying it would allow the Township to think long-term.

Al Cancellieri – 1790 Flint Hill Road – Mr. Cancellieri believed the plan and the model were great steps towards informing and educating the public about the workings of their taxes and their Township.

ADJOURNMENT
A motion was made by Mr. Wagner and seconded by Mrs. White to adjourn the meeting.

The motion carried by a vote of 5 to 0

                                                                       
Secretary