Special Session of Council

Borough of Greenville Council Minutes 10-28-19 BOROUGH OF GREENVILLE www.greenvilleborough.com MINUTES OF A SPECIAL MEETING OF THE BOROUGH OF GREENVILLE COUNCIL HELD IN COUNCIL CHAMBERS Monday, October 28, 2019 at 6:30 p.m. 1. Call to Order Paul Hamill, Council President 2. Roll Call: Paul Hamill, Council President Jonathan Bailey, Council Vice President Sean Hall, Council President Pro Tempore Anne Butcher Dane Mincer Evian Zukas-Oguz Linda Zuschlag Evan Hereford, Mayor Jasson W. Urey, Borough Manager James E. Douglas, Solicitor - excused Also present: Tracy Beil Emily Reagle Staff: Media: Rosalynn Reagle, Administrate Assistant Molly Moser, Record Argus Dave Hetrick, Financial Assistant Heidi Warren, The Herald 3. Public Comments (5 minutes time limit) Resident – None. Non-Resident – None. 4. New Business A. Mr. Urey provided the introduction of the proposed 2020 budget. Mr. Urey started the conversation with providing a recap of Millage rates and Earned Income rates from 2012 to current year. The Borough has initiated a total of 1.9 mills in increases over the course of that timeframe and has decreased the EIT rate by .65%. This did not include the 3 mill referendum passed for Fire Service. Mr. Urey also discussed that the budget was over three million in 2012 and has decreased to 2.7 million in current year. Mr. Urey proceeded with the review of the 2020 budget. Real Estate Tax collection has increased slightly due to the rental inspection process. The owner’s must remain current on their real estate taxes in order to obtain a license to operate their rental business. There has 1 Borough of Greenville Council Minutes 10-28-19 been a slight decrease in Earned Income Tax collections. There was an amount added into the Revenues from CDBG to fund a Code Enforcement Officer and also for an Act 47 Technology Grant for technology upgrades. Mr. Urey discussed health insurance premiums are being decreased because of a change in our health insurance carrier. Mr. Urey then reviewed the expenses for 2020. There is an increase in the training line item in preparation of new Council members being elected and going to training classes. There are projected salary increases in all departments including the tax collector along with a decrease in health benefits due to the change in carrier. There is a decrease in the labor relations legal fees line item due to the contracts for all departments being ratified this year and will not need to cover possible arbitration expenses until next negotiation year. Mr. Urey pointed out the addition of the Code Officer in the expenses with the remainder of CDBG funding on the revenue side to help cover some of the expenses. Public Works wages show a decrease but that is due to not replacing an employee that had retired. There is an allowance allotted for two part-time summer helpers for 2020. The Railroad Park water expenses will be invoiced to them and then they will reimburse the Borough for those expenses. Debt Service has been increased to cover the roof for the municipal building. That cost will be $15,500 per year for 10 years. There is also expenses listed for the replacement of the police cruisers equaling the cost of one cruiser per year over three years and 2020 will be the last payment on the Squad. Mr. Urey finished the presentation of the 2020 budget with a deficit of just under $46,000 and asked Council how to proceed in balancing the budget. It can be done with either an increase in general purpose millage of 1.5 mills, an increase in debt service millage of 1.79 mills or an increase of the Earned Income Tax by .1%. The Earned Income Tax increase would have to be authorized by the County if Home Rule does not pass on November 5th. Council held lengthy discussions of possible areas left that could be cut or taxes of some sort would have to be increased to cover the deficit. Councilor Bailey asked for a status of the paving project which Mr. Urey responded that it is about 70% complete and will be finished in the spring. Councilor Butcher asked about adding a Code Officer back into the budget at this time and it was discussed that it was absolutely necessary to become proactive again. Mr. Urey discussed that we are not currently staffed to do proactive code enforcement and we are merely being reactive. There has been a decline since the code officer was laid off two years ago. Councilor Bailey asked if maybe a Part Time Code Officer would be something to look at. Mr. Urey presented that with the CDBG funding, the General Fund is only seeing the expense equivalent to a Part Time Code Officer. Mayor Hereford asked about holding off on replacing the cruisers for one more year. Mr. Urey discussed the issues that the Borough ran into with holding off replacing the cruisers in the past. They retain their value much better if the current replacement schedule is kept. Last time the Borough was able to pay for one of the cruisers with the trade in of the previous ones. Also it was discussed the importance of keeping three vehicles in the fleet versus reducing it down to two vehicles. Councilor Mincer questioned using grants to purchase the cruisers. Mr. Urey discussed that grants would be applied for, but without a guarantee of the receipt, the full expense of the purchase must be budgeted for. Councilor Hall requested to move to item F on the agenda and discuss the expense of maintaining a paid Fire Department verses maintaining a volunteer Fire Department. Councilor Hall discussed that the only way to maintain this level of service was to find a new revenue stream to pay for it, there was simply nowhere left to cut services unless the entire department was changed to volunteer. The creation of a Fire Fee was discussed and Councilor Hall questioned Council President Hamill on the 2 Borough of Greenville Council Minutes 10-28-19 progress of the program. Council President Hamill discussed that he had held discussions regarding this at the PSAB conference and that a program like this takes time to create because there are no other municipalities that have done this. Greenville would be a pioneer for this program. Council President Hamill also discussed that raising revenue is the only option left to close the deficit in the proposed 2020 budget. But that changing the Fire Department from a paid department to a volunteer department takes time and there are other ideas and options besides just eliminate the paid department. Council President Hamill also mention there is the idea of Regionalization as well. He said he told the State we needed help with that while at the PSAB Conference as well. Council discussed the creation of an Advisory Committee for the creation of a Fire Service Fee to make the paid Fire Department self-sustaining. Councilor Zukas-Oguz asked for input on increasing Earned Income Taxes versus increasing Real Estate Taxes. Mr. Urey discussed that the Borough would need the Court to authorize the increase of Earned Income Taxes if Home Rule does not pass the ballot on November 5th. If it does pass, that it would be up to Council to make that increase, otherwise Council can increase Real Estate Taxes. B. Motion by Councilor Butcher, seconded by Councilor Mincer to hire Joseph Svirbely as a Skilled Laborer in the Street Department. Motion carried 7-0. C. Motion by Councilor Zuschlag, seconded by Councilor Hall to ratify the collective bargaining agreement with the Teamsters Local Union 261 (Greenville Police) for a period of January 1, 2020 – December 31, 2023. Motion carried 7-0. D. Motion by Councilor Mincer, seconded by Councilor Butcher to ratify the collective bargaining agreement with the Greenville Borough Fire Fighters IAFF Local 1976 for a period of January 1, 2020 – December 31, 2023. Councilor Hall discussed that by approving this contract essentially Council was guaranteeing that the residents would see an increase of some sort whether it be in taxes or a fee. Councilor Hall discussed that it is not about the increase for the employee wages, but the fact that the Fire Department itself accounts for a large portion of the budget and it is simply a service that the residents cannot afford to pay increases to maintain the current level of service. Councilor Hall also questioned Council as to how they planned on paying for the increased expenses over the course of the contract if it can’t be pay for its expenses now. Motion carried 6-1; Councilor Hall voted no. E. Motion by Councilor Mincer, Seconded by Councilor Bailey to ratify the collective bargaining agreement with the American Federation of State, County and Municipal Employees (AFSCME) Local 2778 for a period of January 1, 2020 – December 31, 2023. Motion carried 7-0. F. Motion by Councilor Mincer, seconded by Councilor Bailey to authorize the borough Manger to petition DCED to make a contract amendment for the balance of the Home Rule Study Commission Grant to be used for development and implementation of a Fire Service Fee. Motion carried 7-0. 5. Adjournment Motion by Councilor Hall, seconded by Councilor Bailey to adjourn this special session of council at 6:45pm. Motion carried 7-0. 3 Borough of Greenville Council Minutes 10-28-19 Respectfully submitted, Jasson W. Urey Borough Manager/Secretary 4