Special Session of Council

Borough of Greenville Council Minutes 10-26-15 BOROUGH OF GREENVILLE www.greenvilleborough.com MINUTES OF A SPECIAL MEETING OF THE BOROUGH OF GREENVILLE COUNCIL HELD IN COUNCIL CHAMBERS Monday, October 26, 2015 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 - Excused Joshua Stephens, Mayor – Absent Jasson W. Urey, Borough Manager Solicitor, Douglas, Joseph & Olson - Excused Also present: Frank Vanderslice Lisa Hamill Paul Hamill Paul Molton John Rizzo Shirley Rizzo Vivian Gearhart Gary Gearhart Kathy Leonard John McDonald Donald Leonard Christy Fox Dr. Mary Jane Hirt Staff: Media: Rosalynn Reagle, Administrative Assistant Caleb Stright, Record-Argus Lyle Huffman, Director of Public Safety Services Melissa Klarig, Sharon Herald David Hetrick, Financial Assistant PUBLIC COMMENTS: Resident – None. Non-Resident – None. NEW BUSINESS: A. Introduction of proposed 2016 budget. 1 Borough of Greenville Council Minutes 10-26-15 Council President Shipley provided the Councilors and the audience an overview of the challenges facing the Finance Committee as they prepare the 2016 Budget. The 2016 budget proposes to reduce the Residential Earned Income Tax to 1% and to eliminate the Non-Resident Earned Income Tax. The Committee was faced with making those reductions while still dealing with the declining revenues in Real Estate Tax collection and continued decline in assessed valuation. Forty-one percent of the Borough has a non-taxable status and collection rate is very low at 89.39% being collected. This year is slated to end with a $6,000 surplus and that is only being accomplished by not filling vacancies in the Police and Fire Departments and eliminating the Parking Enforcement Officer position. Council President Shipley reviewed the fund balance (aka savings account) and explained what the purpose of that fund is for. Out of the almost $1,000,000 fund balance, $820,000 is designated to cover obligations already owed by the Borough. That leaves approximately $159,000 as unrestricted funds to cover any emergencies or unexpected expenses throughout the year. Council President Shipley announced that two of the three unions (Police and ASFME) are still in negotiations so throughout the proposal values associated with those departments are purely speculation until those contracts can be settled. This proposed budget includes not filling a vacancy in the Police Department and the Fire Department and also not be filling an upcoming opening in the Street Department due to a retirement in 2016. Council President Shipley also explained that this proposal will include keeping the 3 Mills in place plus the 3 Mills special purposes for Fire Protection. That 6 Mills is equal to about $200,000 in revenue leaving a $100,000 shortfall. Dr. Mary Jane Hirt added comments in regards to the Fund Balance account explaining that account is in place to protect you so you do not have to borrow in an emergency situation. Dr. Hirt also expressed that $159,000 is not sufficient and should try to grow that balance. Please keep in mind that as day to day expenses keep rising the Borough needs growth to sustain the current level of services. Dr. Hirt also discussed that the typical collection rate for Real Estate Taxes is between 95% and 97% so the Borough is way below that with a collection rate of only 89.39%. REVENUE PORTION  Real Property Taxes Mr. Urey said there is a proposed decrease due to the assessed value and the collection rate decreasing. Also a new line has been created for the new Fire Levy  Local Ta Enabling Act (ACT 511) Taxes Mr. Urey said they are looking to cut the Earned Income Tax (EIT) for resident to 1% and eliminating the Earned Income Tax (EIT) for non-residents. Mr. Urey said to keep in mind that 2016 amounts will still reflect some elevated rates because fourth quarter collections will not be received until the beginning of 2016. Additional reductions will have to be made during the 2017 Budget process.  Business Licenses and Permits & Non-Business Licenses and Permits 2 Borough of Greenville Council Minutes 10-26-15 Mr. Urey said the figures are mostly remaining the same as the 2015 Budget figures.  Rents and Royalties Mr. Urey said the figures are mostly remaining the same as the 2015 Budget figures.  Intergovernmental Revenue - State Mr. Urey said the State Fire Commissioners Grant is to replace the utility vehicle. And the DCED Grant is for the Storm Sewer Utility. Not all invoices are expected to be received in 2015 so an allotment has been realized in 2016 covering the overflow into that year. Also, concerning the Recycling Grant (Act 101), reimbursements for the years 2011 through 2013 were received in 2015.  Charges for Services Mr. Urey said that there is a reduction in the Parking Permits line.  Other Financial Sources Mr. Urey said the Reimbursement from Water Authority line item is for the Bracken Alley project. The Reimbursement from PENNVEST shows revenue received because some reimbursements are projected to be received in 2016. Both are reimbursements for engineering expenses. EXPENSE PORTION  General Government - Legislative Mr. Urey said Council has elected to opt out of receiving paychecks reducing the Salary- Elected Officials line item.  General Government – Administration Mr. Urey said that the Salary for the Public Services Director, the Public Safety Director and the Borough Secretary wages have been removed from the Police, Fire, Streets, and Parks budgets and included in this section. The DCED – Storm Water Utility Study line item is off setting the revenue side (DCED Grant).  General Government – Solicitor/Legal Services Mr. Urey said that the labor regulations legal fees are decreased because contract negotiations will be over and contracts will be in place.  General Government – Engineering Services Mr. Urey said that the fees are being reimbursed from PENNVEST.  Public Safety – Police 3 Borough of Greenville Council Minutes 10-26-15 Mr. Urey said there is a decrease in the Police budget due to moving the Public Safety Director wages and the Clerk wages into General Government Administration.  Public Safety – Fire Mr. Urey said that there is a decrease due to the Public Safety Director wages being moved into General Government Administration. The Capital Outlay is for the utility vehicle purchase  Public Safety – Code Enforcement Mr. Urey said there is a proposed decrease in Contracted Services - PA UCC Inspections.  Public Works – Highways Mr. Urey said that there is a decrease due to the Public Services Director wages being moved into General Government Administration.  Airport Mr. Urey said the Airport has been separated out of the General Fund budget.  Parks and Recreation Mr. Urey said the Wages – Summer Mowing has remained the same.  Debt Service – Principal and Interest Mr. Urey said the debt service payments for the Sports Complex remain the same, but as this is paid down the interest payments decrease. There is 10 years remaining on the bond.  Insurance – Casualty/Surety Mr. Urey said that they budgeted the same as 2015. Normally new rates are not received until late in the year because the renewal is in February.  Comments Mr. Urey concluded with a deficit of $102,310. Dr. Hirt reminded Council of their workforce limitations with the amendments and asked if the proposed budget stays within those limitations. Council President Shipley stated that the proposed budget did keep within those caps. PUBLIC COMMENTS (Related to the Proposed 2015 Budget Mr. Paul Hamill asked how much did the part time wages increase in all departments. President Shipley responded with increases from $69,400 to $81,40o in the Police Department and from 4 Borough of Greenville Council Minutes 10-26-15 $63,245 to $90,937 in the Fire Department. Mr. Paul Hamill then asked if there were any increases for the Administration. President Shipley responded with $1,000 increase which is the same as negotiated in the Fire Contract. Mr. Paul Hamill then asked what the decreased dollar amount is for the Resident Earned Income Tax and the Non-Resident Earned Income Tax. President Shipley responded with Non-Resident decreased by approximately $130,000 and Resident decreased from $406,000 to $208,000. Mr. John McDonald spoke regarding wage increases. Ms. Kathy Leonard spoke regarding wage increases and the Main Street closure. Mr. Donald Leonard spoke regarding Main Street closure. Mr. John Rizzo and Mrs. Shirley Rizzo spoke regarding the Main Street closure. Ms. Christ Fox spoke regarding the Main Street closure. Mr. Gary Gearhart spoke regarding the Main Street closure. ADJOURNMENT Having no other business before council, motion by Councilor Auchter, seconded by Councilor Hollowell, to adjourn the meeting at 7:15pm. Motion carried. Respectfully submitted, Jasson W. Urey Borough Manager/Secretary 5