Special Session of Council

Borough of Greenville Council Minutes 10-17-16 BOROUGH OF GREENVILLE www.greenvilleborough.com MINUTES OF A SPECIAL MEETING OF THE BOROUGH OF GREENVILLE COUNCIL HELD IN COUNCIL CHAMBERS Monday, October 17, 2016 at 7:00 p.m. Call to Order Brian W. Shipley, Council President Roll Call: Brian W. Shipley, Council President Amy Hollowell, Council Vice President Jonathan Bailey, Council President Pro Tempore Janet Earle, Councilor Paul Hamill, Councilor Linda Zuschlag, Councilor Joshua Stephens, Mayor Katrynna Amos, Junior Councilor – Excused Braydon Knauf, Junior Councilor - Excused Jasson W. Urey, Borough Manager Solicitor, Douglas, Joseph & Olson - Excused Also present: Lisa Hamill Paul Molton John McDonald Staff: Media: Rosalynn Reagle, Administrative Assistant Caleb Stright, Record-Argus Lyle Huffman, Director of Public Services Melissa Klaric, Sharon Herald Brian Mazzanti, Director of Public Safety David Hetrick, Financial Assistant PUBLIC COMMENTS: Resident – Mr. John McDonald asked if there would be a comment session after the presentation of the proposed 2017 budget. Non-Resident – None. NEW BUSINESS: A. Introduction of proposed 2016 budget. Mr. Jasson Urey, Borough Manager, presented the proposed 2017 budget with the following comments. 1 Borough of Greenville Council Minutes 10-17-16 REVENUE PORTION OF THE GENERAL FUND  Real Property Taxes Mr. Urey presented a slight increase in the collection rate although the assessed value had decreased slightly.  Local Ta Enabling Act (ACT 511) Taxes Mr. Urey presented a decreased Earned Income Tax (EIT) for resident and Earned Income Tax (EIT) for non-residents. Mr. Urey proposed both rates dropping to 1% which would allow the Borough to begin the exit of Act 47. The Borough must maintain that for three consecutive years to remove the distressed title.  Business Licenses and Permits & Non-Business Licenses and Permits Mr. Urey presented an increase to the rental licenses line item due to changing from biennial non-owner occupied inspections to annual. Mr. Urey explained that 2017 will be the first year for annual inspections to be completed.  Rents and Royalties Mr. Urey presented a decrease in the well drilling proceeds due to the drop in production of the wells located on Borough property. There is one well located on the Airport property and two on the Park property.  Intergovernmental Revenue - State Mr. Urey explained the decrease in the DCED Grant line item. This was the grant for the Storm Water Utility and will be closed out by the end of 2016.  Local Government Units – Contracted Services Mr. Urey informed Council that 2017 is the last year in the Contract with West Salem for police coverage. A new contract will be negotiated in 2017.  Charges for Services Mr. Urey presented a change in how building permits will be budgeted for creating a more accurate representation. Prior to 2017 all permits, including UCC permits, were grouped under one line item. With this proposal, the UCC permits will be separated out from the municipal permits issued. UCC permits are done by a third party contractor with specific expenses. By separating them out, the expenses associated with those types of permits will be more accurate.  Other Financial Sources Mr. Ureys presentation does not project the use of Fund Balances in 2017. Mr. Urey presented a total revenue of just under 2.6 million which is a reduction in revenue of about $150,000 from 2016. 2 Borough of Greenville Council Minutes 10-17-16 Mayor Stephens and Councilor Earle asked a few questions regarding the revenue figures presented and their questions were answered. EXPENSE PORTION OF THE GENERAL FUND  General Government - Legislative Mr. Urey presented the 2017 figures to remain the same as 2016.  General Government – Administration Mr. Urey presented a slight decrease in the wages due to the creation of the Storm Water Utility Fund. The Storm Water Utility Fund has its own budget for 2017 and a portion of the employee costs were moved from the General Fund to the Storm Water Utility Fund. Mr. Urey also presented a slight increase in the costs for health insurance. The Borough will realize an increase in healthcare costs of 8 ½% for 2017.  General Government – Solicitor/Legal Services Mr. Urey presented a decrease in costs for legal fees due to the labor contracts being negotiated in 2016.  General Government – Engineering Services Mr. Urey presented a decrease in engineering services for the General Fund due to moving some of those expenses into the Storm Water Utility Fund.  Public Safety – Police Mr. Urey presented a slight increase in the overtime costs and in health care costs, but also a decrease in the costs of fuel. The decrease in fuel costs was due to the drop in fuel prices. Mr. Urey also presented an increase in the donation purchases line item due to Public Safety Director, Brian Mazzanti, having excellent results soliciting for donations.  Public Safety – Fire Mr. Urey presented a slight increase in the overtime costs and health care costs, but also a decrease in the costs of fuel. Mr. Urey also presented an increase in the donation purchases line item due to Public Safety Director, Brian Mazzanti, having excellent results soliciting for donations.  Public Safety – Code Enforcement Mr. Urey presented a decrease in the amount budgeted for contracted services-PA UCC inspections. Mr. Urey discussed that in previous years this expenses was not calculated on just UCC Permit revenue, but all permit revenue. Mr. Urey again explained that for 2017 the permits will be separated out on the revenue side to calculate a more accurate expense moving forward. 3 Borough of Greenville Council Minutes 10-17-16  Public Safety – Planning and Zoning Mr. Urey presented an increase for fees-legal which would include the costs associated with a Zoning Hearing being performed. This year was the first year since 2012 that the Zoning Hearing Board was called upon, but moving forward that possibility should be realized in the budget.  Public Safety – Crossing Guards/Parking Enforcement Mr. Urey presented the same figures as 2016. President Shipley reminded all in attendance that the expenses for crossing guards are shared with the School district.  Public Safety – Stray Animals Mr. Urey presented a decrease in this expense and informed all in attendance that finding a location to take the rescued animals is being worked on.  Public Works – Highways Mr. Urey presented that some of expenses in this section have decreased due to being shifted to the Storm Water Utility Fund.  Public Works – Street Sweeping Mr. Urey presented that this section has been moved from the General Fund to the Storm Water Utility Fund.  Public Works – Winter Maintenance Mr. Urey presented a decrease in the supplies-ice melt line item due to a large donation from Walmart received early in 2016. It is projected that the donation was large enough to eliminate the need to purchase any during 2017.  Public Works – Street Lights Mr. Urey presented a decrease in the costs associated with street lighting in anticipation of changing to LED.  Public Works – Storm Sewers and Drains Mr. Urey presented that this section has been moved from the General Fund to the Storm Water Utility Fund.  Parks and Recreation Mr. Urey presented an increase in wages to allow for three part time summer help positions. Mr. Urey discussed filling three part time positions during 2016 worked out very well and that the Parks looked the best they had looked in quite some time.  Civic Donations 4 Borough of Greenville Council Minutes 10-17-16 Mr. Urey presented a decrease in the donation for the Greenville Flower & Garden Club. This is due to the fact that the Club is no longer active.  Debt Service – Principal and Interest Mr. Urey recommended adding line items for small borrowing, small borrowing interest and fiscal agent fees. These items are not new expenses but where represented in different areas of the 2016 budget.  Insurance – Casualty/Surety Mr. Urey presented figures that match the 2016 expenses due to not receiving the new rate schedule until February.  Comments on the General Fund Mr. Urey presented the expenses with a total of just under 2.6 million making the 2017 proposal a balanced budget. SEWER FUND Mr. Urey presented the proposed 2017 Sewer Fund Budget as a balanced budget. Mr. Urey presented to all in attendance that there is not an anticipated rate increase and also that any upgrades needing completed will be in accordance with the Sewer Plant Upgrade project that is anticipated within the next five years. AIRPORT FUND Mr. Urey presented the proposed 2017 Airport Fund Budget as a balanced budget. Mr. Urey presented to all in attendance that amounts presented in the Airport Federal Grant line item and the Airport State Grant line item on the revenue side are grant funds for anticipated upgrades. Mr. Urey presented to all in attendance that the amounts presented in the Rehab Hanger Taxi Ways line item and the Snow Removal Equip Building line item were pulled from the ten year plan. Mr. Urey also commented that no upgrades projects were completed during 2016 and those upgrades are all dependent on Federal approval. Mr. Urey reminded all in attendance of the decrease in revenue for the well drilling proceeds as discussed during the General Fund presentation. Mr. Urey discussed the addition of a few new line items created in an effort to better track specific expenses. STORM WATER UTILITY FUND Mr. Urey presented the proposed 2017 Storm Water Utility Fund Budget. Mr. Urey explained that the 2017 proposed budget is the first year for a fully realized budget. Mr. Urey proposed an 80% collection rate on the utility fee and also reviewed the expense items that were pulled from the General Fund. Mr. Urey explained the Pennvest Note line item is for the Bracken Alley project. That Note is for 25 years at 1% interest. 5 Borough of Greenville Council Minutes 10-17-16 Mr. Urey proposed a Fund Balance of $62,823 for 2017. Councilor Earle asked if the projected fund balance will go into Capital Outlay. Mr. Urey responded with confirmation that fund balances due move into Capital Outlay funds. President Shipley discussed with all in attendance that the Borough must maintain a balanced budget, which means the Act 511 Earned Income Rates must remain at 1%, for three consecutive years to petition to exit Act 47. PUBLIC COMMENTS (Related to the Proposed 2017 Budget Mr. John McDonald asked for questions relating the engineering costs being moved from the General Fund to the Storm Water Utility Fund. Mr. McDonald also questioned where the $100,000 that had been budgeted for Storm Water in the General Fund is. Lastly, Mr. McDonald stated that the Borough did not have to exit Act 47. President Shipley, along with other Councilors attempted to answer Mr. McDonald’s questions. ADJOURNMENT TO EXECUTIVE SESSION Motion by Councilor Hollowell, seconded by Councilor Bailey to adjourn to executive session at 7:45pm to discuss a personnel matter. Motion carried 6 – 0. Motion by Councilor Hollowell, seconded by Councilor Hamill to adjourn from executive session at 8:06pm. Motion carried 6 – 0. ADJOURNMENT Having no other business before council, motion by Councilor Bailey, seconded by Councilor Hollowell, to adjourn the meeting at 8:07pm. Motion carried 6 – 0. Respectfully submitted, Jasson W. Urey Borough Manager/Secretary 6