Council Meeting Minutes

1 PENNSBURG BOROUGH COUNCIL MEETING SPECIAL MEETING January 24, 2018 – 7:00 P.M. The meeting was called to order by President Kristopher Kirkwood. The Pledge of Allegiance was recited . Answering roll call were Kristopher Kirkwood, Cody Belmont, Bruce Lord, Fred Schutte, Michael Mensch, Robert Seville, and Diane Stevens (by telephone). Also in attendance were Mayor Vicki Lightcap, Solicitor Matt Hovey, and Administrative Manager/Secretary Lisa Hiltz. The following statement was read by Council President Kristopher Kirkwood: As you know when our borough council began the preparation of the 2018 budget last fall, there were a lot of unanswered questions and open ended issues that existed which made our financial planning for this year extremely challenging. For the benefit of the community, we had made the decision to attempt to continue police operations with the Upper Perk Police District even though our neighbor, East Greenville, decided to withdraw from the regional force. While we were able to sustain the department for the remaining portion of 2017, the ongoing costs of maintaining the status quo of the department through 2018 cannot occur without significant tax increase to our residents. During our budget process, we were optimistic that perhaps East Greenville may wish to participate with us in some police service agreement. Accounting for that possibility, we estimated certain projected revenue in our police budget and overall borough budget. At the present time, we are uncertain as to what East Greenville might decide to do, and therefore, in order to be fiscally responsible to our residents, we need to discuss our options and analyze our financial position solely on the basis of decisions we , as council, can control. Last week, I requested our police department to review the budget that had been presented and provide us with various options to reduce expenditures. In that vein, I requested Lisa review and provide us an overall borough budget listing with overall expenses as well as any other reasonable suggestions to raise projected revenues. Following my review of this information and consulting with the mayor, it seemed that there was at least approximately $350,000 worth of expenditures that would have to be eliminated from our budget in order to continue our customary borough operations. As a result of this, I called a special meeting this evening and requested that the solicitor immediately advertise for this meeting so that we could begin discussions on how to address this concern. Given that this is a very time sensitive, it could not wait until our February 6th meeting. For discussion purposes this evening, I have provided the revised budget information that was prepared and we as a council now need to decide how to move forward with suggestions or solutions to address what could be a significant budget shortfall for 2018. Solicitor Hovey announced that Borough Council held an executive session the previous evening, January 23rd, 2018 at 7:00 p.m. to discuss matters of collective bargaining, personnel, and litigation. VISITORS/PUBLIC COMMENT: Ron Robinson deferred comment at this time. REVISED DRAFT POLICE BUDGET: The police department reworked the budget and presented it to council. Some of the cuts include the sale of two vehicles, a van, old computers, and administration reduced to part time. This proposed budget just about reaches the $350,000 reduction mark to include a chief and four officers. This also includes the police administrative secretary to go from full time to part time after the maternity leave expires for the borough assistant.  2 BOROUGH BUDGET: With the police department cuts, the borough budget should be balanced. The savings should increase in 2019. The police pension is a large part of the budget, and there is no change expected for 2018. 2019 will be a better year for the pension expenses. Revenues were reduced to $2,003,000 and the expenditures are around the same. Diane Stevens commented on the actuarial report that was provided and paid for by the Upper Perk Police Officers Association. The adjusted budget includes early retirement for Chief Michael Devlin, the lay-off of two full time officers, and a third officer to be on loan to Montgomery County on a part time basis for this year. A motion to provide three months formal notice of intent to lay off two officers pursuant to the provision of the current collective bargaining agreement was made by Fred Schutte and seconded by Bruce Lord. The motion passed with aye votes by all with the exception of Robert Seville who voted no. EXECUTIVE SESSION: An executive session was called at 7:21 p.m. to discuss contractual matter. Council reconvened at 7:56 p.m. Mayor Lightcap suggested that based on advice provided directly by the actuary, council “open a window of opportunity” to allow the police a one-time offer of early retirement for officers who obtain twenty-five years of service and are at least fifty years of age.. A motion to permit any police officer who is 50 years of age or older and achieves at least 25 years of service to at any time within the next 180 days, to retire early but receive pension benefits as if the officer retired at normal retirement age was made by Fred Schutte, seconded by Cody Belmont, and unanimously approved. A motion to approve and authorize the execution of the retirement agreement with Chief Michael Devlin conditioned upon Chief Devlin executing the agreement in a final form acceptable to the Borough’s solicitor was made by Fred Schutte, seconded by Robert Seville, and unanimously approved. PUBLIC COMMENT: Rob Robinson thanked council for their dedication and commitment to the Borough of Pennsburg. Mr. Robinson further read a statement regarding his opinion of the current situation (with East Greenville) and what the lack of twenty-four hour police coverage will bring to Pennsburg’s residents. He asked that both boroughs work together and put aside differences. Diane Stevens suggested a voluntary contribution from Pennsburg Square Shopping Center. Mrs. Stevens cited other businesses that have contributed to the borough, such as Rite Aid who maintains a municipal parking lot at no cost to the borough, and Dunkin Donuts who contributed to an upgraded traffic control signal. Robert Seville stated the lay off was very hard, and thanked the officers (who are ten year veterans) losing their jobs for what they did for this community. Jennifer Shelly, 450 Seminary Street, asked how it is decided who gets laid off. A motion to adjourn at 8:05 p.m. was made by Fred Schutte, seconded by Cody Belmont, and unanimously approved. 3