Finance & Pension Committee

BOROUGH OF DOYLESTOWN FINANCE AND PENSION COMMITTEE MEETING THURSDAY, SEPTEMBER 11, 2025 – 6:00 pm MINUTES The above meeting was held on the above date and time with the following people present: Committee Members: Chair Amy Popkin, Jennifer Jarret, Bob Kinney, Connor O’Hanlon Council Members: Dennis Livrone Staff: John Davis, Caroline Brinker, Grant Rowe Approval of Minutes Minutes of April 10 and July 10, 2025 were approved (Kinney/O’Hanlon). Municipal Electric Procurement – Danielle Donovan, Mantis Innovation Ms. Donovan gave a comprehensive analysis of current pricing for renewing the Borough’s electric procurement contract. Current auction pricing is significantly higher than it was 3 years ago, with kwh pricing up as much as 800%. It was explained that this was largely because of supply factors (natural gas, primarily), increases in AI generation demand, and power-plant retirements (coal). Less than 20% of our current power mix is from coal; 50% is natural gas, the remaining contributions from hydro, solar, nuclear, and wind. Since pricing has been increasing, the Committee recommended locking in pricing now for the contract term beginning March 2026. Mantis Innovation recommended “Option A” for a 48-month term with Constellation, for our energy service needs. The Finance & Pension Committee members further recommended the addition of the 100% Green option. This represents a significant increase in the current costs, which is unfortunately reflective of the current wholesale market. The Committee recommended this item be passed to Borough Council for approval (Popkin/Jarret). Preliminary 1/1/2025 Act 205 Valuation Paul Baugher, Foster & Foster Actuaries Mr. Baugher presented a summary of the actuarial results as of 1/1/25 for the Non-Uniformed Pension Plan, comparing it with the 1/1/23 valuation. There was discussion on lowering the interest rate assumption, however it was not advised as necessary. The Committee recommended that the assumptions stay the same at 6.75% interest, 4% salary scale, and asset smoothing. The anticipated funding level will be 78.7% for the Plan. Mr. Baugher was authorized to finalize the valuation for filing prior to the 3/31/2026 deadline. Second Quarter Police & Non-Uniformed Pension Plans Performance Bill Smith, Girard Pension Services Mr. Smith provided an overview of the plan performance through June 30, 2025. For the year to date, the plan had a return of 6.2%. Mr. Smith also reviewed the investment markets and money managers, noting any that are on watch, or scheduled to be replaced. The asset allocations were reviewed with all classes being within target range. Disclosure of 2026 MMO The 2026 Minimum Municipal Obligation to the pension plan will be calculated based on the 1/1/2023 valuation and will be disclosed at the September 15, 2025 Council meeting. Finance Project Assistance Proposal Ms. Brinker presented the Committee with a proposal from Transcend Finance for assistance in completing several large projects to convert the Escrow and Fixed Assets modules into the accounting software package. It is proposed that this project be completed in steps with the escrow module being converted in 2025 at a cost of approximately $5,000. Additional services would be included in the 2026 budget prep process. The Committee approved the proposal (Popkin/O’Hanlon) Central Bucks Regional Police Department 2026 Preliminary Budget Ms. Brinker reviewed with the Committee the 2026 Preliminary Budget forwarded by the Central Bucks Regional Police Commission prior to the date specified by the terms of the Intermunicipal Agreement. The budget is still a work in progress, relying on multiple assumptions. The budget will be refined over the next couple months to incorporate actual health, workers’ compe3nsaation, and property & Liability insurance premiums and possible grant revenues which are expected to be finalized in September and early October. Also, as neither the Police CBA nor the AFSCME CBA have been settled, all wages in the budget are at the 2025 wage scale. The Committee recommended that this item be moved to Borough Council with the recommendation to reject the First Draft Budget, an action that is anticipated by the Police Commission (Kinney/Popkin) 2025 Mid-Year Budget Review The Committee reviewed the General, Water, Water Capital and Reserve Funds budgets through July 31, noting items that were anticipated to be over/under by year end. 2026 Budget Calendar Review Ms. Brinker reviewed with the Committee the calendar and schedule for the 2026 Budget Worksessions. Old/New Business - None Public Comment – None The meeting adjourned at 8:12 pm. Respectfully Submitted, Caroline Brinker Assistant Manager/Finance Director