Courtesy of the Floor: None

Approval of Minutes: ------------------ October 29, 2007 - Budget Meeting

Motion: I move we waive the reading of the Minutes of the October 22, 2007 Budget Meeting and accept same as presented.

Paulus, Hayden: Moved and Seconded
Atkinson, Dreisbach, Hayden, Kovacs, Paulus: ------- Aye ------- Unan.

Old Business:

1.) Public Hearing – Continuation of Proposed 2008 Operating, Capital Reserve, Liquid Fuels, Water and Sewer Budgets (Review and Discussion).

Chairman Paulus opened the Public Hearing relative to the proposed 2008 Budgets. In attendance at the meeting was the Township Engineer to review with the Board the proposed 2008 Sewer and Water Budgets. In that regard, the Township Engineer began a review with the Board of the proposed 2008 Water Budget. Mr. Hay noted that the Beginning Operating Reserve proposed at $900,000 includes the Revenues from the Capital Program for Water System Improvements, which had reverted back to the Water Account as a result of non-expenditure over a three year period. As Council was aware, in accordance with the Township Charter if funds are not expended for a three year period, they revert back to the fund from which they were appropriated. The Township Engineer reviewed with the Board the proposed Revenue portion of the Water Budget and Council made no revisions to same. With respect to the Expenditure portion of the Budget, the Township Engineer reviewed same with the Board and no revisions were made to the Expenditures as set forth. The Township Engineer advised the Board that the usage rate for customers has been reduced from $5.10 to $2.75 in the proposed Budget and that the minimum usage has been set at 7,000 gallons per quarter. Mr. Hay noted that previously the minimum usage had been 11,000 gallons.

At this point in the meeting, the Township Engineer reviewed with the Board the proposed Sewer Budget for the year 2008. The Township Engineer advised that this proposed Budget sets forth a flat rate for usage of $5.00 per 1,000 gallons of usage. Additionally, the Township Engineer noted that a minimum has been set at $35.00 representing 7,000 gallons usage. The Township Engineer advised the Board that some of the Township’s biggest users over the last few years have gone away. He cited the Sure Fit facility as well as the Qualex facility. As Council is aware, Sure Fit is not in existence and Qualex has reduced their usage. Basically, the Township Engineer advised that we don’t have the flows but still have the expenses. With respect to the current rates as they compare with the proposed $5.00 flat rate, the Township Engineer noted that the Allentown rate for Usage and Capital Costs currently is $4.02. The rate for Bethlehem users for Usage and Capital Costs is $3.55 and the rate for Catasauqua users including Usage and Capital Costs is $4.29. There was a discussion with respect to the minimum and Councilman Atkinson noted that the minimum is really a minimum charge which is necessary for maintenance of the sewer system. There was also a discussion regarding the fact that the Township does have excess capacity in both Bethlehem and the Catasauqua sewer plants. As Council is aware, Mr. Hay noted that some of the Catasauqua usage has been sold to Hanover Township, Northampton County, and that the new shopping center would utilize Catasauqua sewer. With respect to Bethlehem, the Township Engineer indicated that we have 250,000 gallons per day capacity and average approximately 125,000 gallons per day. Mr. Hay did note that the law states that you must cover 80% of your flows. Mr. Hay noted that he is aware that Bethlehem Township is in current need of sewer capacity but that he would like to check the IMA with the City of Bethlehem before making any recommendations to the Board regarding sale of the additional capacity. After all the discussions regarding the proposed Sewer Budget, the Budget as stated remained unchanged.

At this point in the meeting, Councilman Paulus closed the Public Hearing relative to the proposed 2008 Budgets. It was noted that the next meeting would be held on Monday, November 12, 2007 at 7:00 P.M. for review of the Highway Budget set forth in the General Fund as well as the Fire Department and Emergency Management Budgets set forth in the General Fund.

Courtesy of the Floor: None

Adjournment:

The meeting was adjourned at 7:35 P.M..

Respectfully submitted,

Sandra A. Pudliner
Township Manager