Present: --------------- Councilwoman Hayden; Councilmen Atkinson, Kovacs, Paulus, Williams;
------------------------------- Frederick W. Hay, P.E.; Sandra A. Pudliner; Vicky Roth

Absent: ------------------ 0

Attendance: ---------- 1

Courtesy of the Floor: Joe Feskanin, Standard of Living Study Group

Mr. Joseph Feskanin, 1680 N. Irving Street, initiated a discussion by advising the Township Engineer that in his absence at the last Budget Hearing he had delayed asking certain questions until Mr. Hay’s attendance this evening. Mr. Feskanin indicated that he had been advised that in formulating the proposed Budgets information is requested from different departments in the Township as outlined in the Budget, as well as outside consultants who submit what is necessary when requested. Mr. Feskanin questioned whether Mr. Hay had submitted an estimate to the Township with respect to the proposed Water and Sewer Budgets. The Township Engineer commented that in the Budget preparation process he sits down with the administrative staff and they review each line item for the proposed 2004 Budgets. Mr. Feskanin indicated that there appear to be some discrepancies. For example, he noted that he is requesting $10,000 for engineering fees in the proposed 2004 Water Budget when this year the Township only budgeted $6,000 and has only expended less than $5,000. Additionally, Mr. Feskanin noted that the Miscellaneous category which in 2003 was only budgeted with $1,000 has been portrayed in the 2004 Budget as an expenditure of $5,000. Additionally, Mr. Feskanin indicated that the category for subcontractors has a budgeted figure for 2004 of $15,000 when the Township has only expended as of this time approximately $3,000.

In response to Mr. Feskanin’s inquiries, the Township Engineer indicated that with respect to his engineering fees he has no idea at the present time as to what may or may not occur in the year 2004. He noted that both the Water and Sewer Budgets may be affected by emergency projects which may arise. He also noted that the category for Subcontractors Maintenance is in the Budget in the event there is an emergency situation which arises and which results in a large expenditure of funds. The Township Engineer further indicated that both with the Water and Sewer Budgets there are monies set aside for contingency situations and it does not necessarily indicate that those funds will be expended. With respect to the Sewer Budget, the Township Engineer indicated that the category for Minor Equipment does not show any expenditures in the year 2003 as of this time but that does not mean that the category is not necessary in the event that a situation would arise that would require the purchase of equipment. Mr. Hay indicated that the Township’s Budget includes funds for the unknown. If situations occur and the money is not appropriated the Township would be in a position where financing would need to be secured. It was further noted that in accordance with the Township’s Home Rule Charter funds cannot be transferred from one department to another until after September of the year. Mr. Feskanin questioned whether or not a surplus in the water and sewer accounts could be transferred over to the General Fund. The Township Engineer indicated that would not occur. It was noted that the Sewer Account is supported by the sewer users as is the Water Account. These accounts are separate accounts and those funds are never commingled with the General Fund Account. Councilman Atkinson noted that the Township has no Water or Sewer Authority. He further noted that the Water and Sewer Budgets are totally independent of everything else. The Township Engineer commented that the Township has already been in a position where either the Water or Sewer Account had to borrow money from the Capital Account and repay those funds when a situation occurred and the account did not have the monies to handle the problem. Mr. Feskanin commented that what the Board is saying in effect is that the funds in those accounts are cumulative and just carried over from year to year. The Township Engineer noted that there have been occasions when the Township has to raise the rate charges with respect to the different systems in the Township (Water and Sewer) because the surplus carried over is insufficient. He indicated that if something drastic happened the Township could utilize its surplus to rectify the problem without having to go out and borrow money.

Approval of Minutes:---------- October 20, 2003 - Budget Meeting

Motion: ------- I move we waive the reading of the Minutes of the Special Meeting of October 20, 2003 Budget Meeting and accept same as presented.

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

Old Business:

1. Public Hearing - Continuation of Proposed 2004 Operating, Capital Reserve, Liquid Fuels, Water and Sewer Budgets (Review and Discussion)

Chairman Paulus opened the Public Hearing which represented a continuation of the hearings on the Proposed 2004 Budgets. Council began its review with the Proposed 2004 Sewer Budget. With respect to the Revenue portion of the Sewer Budget, questions arose with respect to the figures proposed for the year 2004 relative to the Bethlehem Capital Costs and the Catasauqua Capital Costs. The Township Engineer indicated that he would look at those figures again to determine if they need to be revised. With respect to the Expenditure portion of the Sewer Budget, questions arose with respect to the Bethlehem Sewer Usage and the Catasauqua Sewer Usage and the Township Engineer indicated to the Board that he would again review the figures to determine if revision needed to take place. There was also question with respect to the Catasauqua Capital Costs and that figure would again be reviewed. With respect to the line item for Computer/Training/Supplies, Council determined to revise that figure from $10,000 to $5,000.

With respect to the Water Budget, in particular the Revenue portion of same, Council determined that the line item for Penalties and Interest should be revised to simply state Interest. With respect to the Expenditure portion of the Water Budget, the line item for Miscellaneous Expenses was revised from $5,000 to $1,000.

At this point in the meeting, Council reviewed the proposed 2004 Liquid Fuels Budget. It was noted that the Liquid Fuels Budget represents revenues collected from a gasoline tax which is distributed to all the municipalities in the commonwealth based on the miles of road within that municipality. In reviewing the proposed Liquid Fuels Budget, Council determined that Interest Earnings would be reduced from $150 to $50.

At this point in the meeting, there was a discussion with respect to the new drainage installation on Grove Road. Council felt that the Township Manager should discuss with the Township Engineer the possibility of placing a box grate to cover the severe depression off the roadway since they felt that is a hazardous situation in that area.

Courtesy of the Floor:---------- None

Adjournment:

Motion: ---I move we adjourn this meeting of the Hanover Township Council at 8:00 P.M.

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

Respectfully submitted,

Sandra A. Pudliner
Township Manager