Special Session of Council

Borough of Greenville Council Minutes 10-27-14 BOROUGH OF GREENVILLE www.greenvilleborough.com MINUTES OF A SPECIAL MEETING OF THE BOROUGH OF GREENVILLE COUNCIL HELD IN COUNCIL CHAMBERS Monday, October 27, 2014 at 6:00 p.m. Call to Order Brian W. Shipley, Council President Roll Call: Brian W. Shipley, Council President Pamela S. Auchter, Council Vice President Alfred L. Peden, Council President Pro Tempore Jonathan Bailey, Councilor Amy Hollowell, Councilor Donald B. Shaw, Councilor – excused Linda Zuschlag, Councilor Joshua Stephens, Mayor – excused Jasson W. Urey, Borough Manager Solicitor, Douglas, Joseph & Olson Katrynna Amos, Junior Councilor PUBLIC COMMENTS: Resident – None. Non-Resident – None. NEW BUSINESS: A. Impact of Commonwealth changes to ACT 47 – Mary Jane Hirt. Dr. Hirt said that the Commonwealth is trying to put a timeline on exiting ACT 47. She said that if it is signed it should be effective by the end of December or beginning of January. Dr. Hirt said that if we can pass an amendment to our ACT 47 plan, then we will have 5 years to exit (which will mean that we are self-sufficient). If we do not, then we will have to exit in 3 years. On January 01, 2015 she recommends doing a self-study to help identify a menu that will put us in a position to exit in 5 years. If we can’t exit then one of two things will happen; 1. We 1 Borough of Greenville Council Minutes 10-27-14 will need to merge with our neighbors and become one or; 2. We will dis-incorporate and the territory will fall under the state. In mid-2019, Dr. Hirt will report to the Commonwealth about exiting distress. She said that the 2015 budget will be a foundation for getting out of ACT 47. Councilor Zuschlag said that she thought we were in pretty good shape as of now. Dr. Hirt said that we have to be self-sufficient before we can exit distress which will take time. B. Introduction of Proposed 2015 Budget Council President Shipley commending Mr. Urey, Mr. Hetrick, Department Heads, and Finance Committee on their hard work the budget. He added that the budget is not balanced yet. REVENUE PORTION  Real Property Taxes Mr. Urey said he sees a small decrease in real estate collections due to tax exempt properties and demolitions. He added that our collection rate has increased to 91%.  Local Ta Enabling Act (ACT 511) Taxes Mr. Urey said they are looking to cut the Earned Income Tax (EIT) for non-residents in half. Councilor Bailey asked what the percentage rate is. Mr. Urey said it is 1.185%. Councilor Bailey asked if the EIT for residents would be reduced as well. Mr. Urey said that he is unsure and that they are still waiting for numbers that will come next week.  Business Licenses and Permits & Non-Business Licenses and Permits Mr. Urey said the Non-Owner Occupied Property Inspections will be taken place again in 2015.  Rents and Royalties Mr. Urey said that rent for the airport has been moved to a separate budget that includes only the airport. He also said that rent for the Sports Complex Fields and Riverside Park fields is new along with pavilion rentals at Riverside Park. Mr. Urey said that we are charging rent for the Recreation Center and Fire Station Bay so that will bring in extra revenue.  Intergovernmental Revenue - State Mr. Urey said the DCED Grant is the Storm Water Utility Grant that will be an in and out. He said that he would like to try again this year to get another intern to help with the real estate taxe study.  Charges for Services Mr. Urey said that the fire inspections are every other year with the new ordinance so that is why you see a decrease in that line item. 2 Borough of Greenville Council Minutes 10-27-14  Other Financial Sources Mr. Urey said the Use of Funds will be shown on the expenditures side, mostly for one time revenue. EXPENSE PORTION  General Government - Administration Mr. Urey said the Storm Water Utility Study is an in and out item.  General Government – Solicitor/Legal Services Mr. Urey said that the labor regulations legal fees are increased because we have contract negotiations next year.  General Government – Engineering Services Mr. Urey said that the fees are increased due to the Bracken Alley project.  Public Safety – Police Mr. Urey said there is a slight increase in the Police budget. Council President Shipley that these are due to contractual increases.  Public Safety – Fire Mr. Urey said that there is a significant increase due to wages, overtime, and part-time costs.  Public Works – Highways Mr. Urey said that there is an increase due to employee costs related to employee transferring from the Parks Department.  Public Works – Repairs of Vehicles/Equipment Mr. Urey said there is a decrease since we replaced a few vehicles and they shouldn’t need as much maintenance.  Airport Mr. Urey said that because of grants and the fact the airport is self-sustaining, we have created a separate fund. He added that the budget was distorted by the grants. Council President Shipley said that it will be on a different budget.  Parks and Recreation 3 Borough of Greenville Council Minutes 10-27-14 Mr. Urey said that this section has decreased due to making some employee adjustments and transferring them to the Public Works Department.  Railroad Park Mr. Urey said that our rent increased.  Insurance – Casualty/Surety Mr. Urey said that they budgeted for a 10% increase – normally don’t get new rates until late in the year.  Comments Mr. Urey said that they are running a deficit of $152,055.98. Council President Shipley said that the Finance Committee will work to get the budget balanced. He said that we could take money from liquid fuels but that would be less money for paving. Council President Shipley said that they are looking at a reduction in wage tax and maybe increase property taxes. He said that it is a work in progress and that nothing is off the table. He also said that we are getting down to the point where we have to make tough decisions to get out of ACT 47. Dr. Hirt said that we have been working the last few years on steps to get out of ACT 47 – not using liquid fuels money for street lights and not using CDBG money for wages. She said that we are making good steps to put us in the right direction. C. Motion by Councilor Hollowell, seconded by Councilor Auchter, to enact Resolution 2014-18 Storm Water Utility Study Grant Request. Motion carried. D. Motion by Councilor Zuschlag, seconded by Councilor Auchter, to accept the recommendation from Lawrence County Social Services Inc. to proceed with housing rehabilitation at 105 N. Third Street. Motion Carried. PUBLIC COMMENTS (Related to the Proposed 2015 Budget) None. ADJOURNMENT Having no other business before council, motion by Councilor Auchter, seconded by Councilor Bailey, to adjourn the meeting at 6:39pm. Motion carried. Respectfully submitted, Jasson W. Urey Borough Manager/Secretary 4