Present: --------------- Councilwoman Hayden; Councilmen Atkinson, Kovacs, Paulus, Williams;
------------------------------- Sandra A. Pudliner; Vicky Roth

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

Attendance: ----------2

Courtesy of the Floor: None

Approval of Minutes: ---------- Nov 17, 2003 Budget Meeting

Motion: ------- I move we waive the reading of the Minutes of the November 17, 2003 Budget Meeting and accept same as presented.

Paulus, Kovacs: Moved and Seconded
Atkinson, Hayden, Kovacs, Williams: ------- 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 with respect to the Proposed 2004 Budgets.

The Township’s Public Works Director, Bruce Pudliner, was in attendance at the meeting and Council proceeded to review with him the Department for Highway Expenses projected for the year 2004. With respect to said review the line item for Street Paint and Road Signs was revised from $12,000 to $20,000. The salary figures as shown in the Highway Department were as noted by the Township Manager set per Council’s directive. The line item for Traffic Signal Electric was revised from $6,000 to $4,000. The line item for Road Materials was revised from $2,000 to $3,000. The line item for Materials and Supplies was increased from $6,000 to $7,000. The line item for Traffic Signal Maintenance was increased from $20,000 to $30,000. The line item for the purchase of a new 10 ton dump truck was increased from $105,000 to $130,000. The line item for Street Lighting was increased from $51,000 to $55,000.

With the Public Works Director in attendance there was a discussion regarding the shoulder at the intersection of Airport and Catasauqua Roads and possibly placing NOs in the hashed areas indicating the shoulder. It was noted that PennDOT approval would need to be secured to accomplish that. It was also noted that the yield sign coming out of Friendly’s onto Catasauqua Road has faded and should be replaced. The Township Manager was directed to contact Friendly’s regarding same. Councilman Williams noted that legally Friendly’s would not be required to replace that sign but that the Township could request that they do so.

At this point in the meeting, the Township Manager advised Council that she would like to review with them all the changes made to the Operating Budget as well as the other Budgets in order that the finalization of Budget process could be accomplished. The review began with the Revenue portion of the General Fund Budget. The following revisions were noted. Earned Income Taxes was revised to $525,000, Public Utility Taxes was revised to $2,400. The total for other taxes was revised to $1,817,400. With respect to Licenses and Permits, Permits Other was revised to $1,000, Right-of-Way Permits was revised to $500, Park Permits was added as a new category and funded in the amount of $3,500. Total Licenses and Permits was revised to a figure of $55,600. With respect to Department Earnings, Employee Medical and Dental Reimbursement was revised to $9,412. Firemen’s Relief Association was revised to $25,500. Total Grants/Other Reimbursements was revised to $110,512. The total for Department Earnings was revised to $193,512. The Township Manager further noted that the surplus fund figure which she had projected as $400,000 should be revised to $450,000. Doing so changes the line item for Beginning of Year Carryover and Surplus Funds to $550,000.

With respect to the Operating Budget Expenditures portion of the Budget, the Township Manager noted that Council Salaries has been revised to $9,500. The salaries for Township Personnel are the Manager stated as per Council’s directive. The line item for Advertising was revised to $12,000. The line item for EIT, OPT, BPT Tax Commission was revised to $46,110. The total for Administration was revised to $329,707.

With respect to the Department for Fire Expenses, it was noted that Firemen’s Relief was revised to $25,500, changing Total Fire Expenses to $106,600 and the Total Expenses for Fire including the Capital Reserve item was revised to $131,600.

With respect to the Department for Recreation, the category for the DCED Grant was revised to $100,000 and the total for the Recreation Department was revised to $265,000.

With respect to the Miscellaneous Expenses Department, the category for Social Security was revised to $26,285. Employee Retirement was revised to $15,800. Rental of Hydrants was revised to $16,400. It was noted by the Township Manager that the Contingencies portion of the Budget shows a figure of $578,158. However, the Township Manager noted that because of the revisions to the Highway Department as well as the increase in the Revenue portion of the Operating Budget, this figure would change. With respect to the Capital Reserve Budget, the Township Manager indicated that they would have to review this Budget and other appropriations made into the Capital Program.

With respect to the Liquid Fuels Budget, the Township Manager noted that Interest Earnings was revised to $50. Total Year to Date Revenue was revised to $56,332 and the Ending Balance was revised to $1,332.

With respect to the Sewer Budget, it was noted that the line item for Bethlehem Capital Cost was revised to $9,000, changing Total Sewer Capital Cost to $111,500 and the Department Totals for Sewer Usage to $452,500. With respect to the Expenditures portion of the Sewer Budget, the line item for Bethlehem Capital Costs was revised to $9,000. The line item for Catasauqua Capital Cost was revised to $100,000, revising Total Sewer Capital Costs to $112,000. With respect to the line item for Computer Training Supplies, said line item was revised to $5,000. Total Sewer Expenses was revised to $805,100, Total Sewer Revenue was revised to $890,600. The Ending Balance was revised to $85,500.

With respect to the Water Budget, in particular the Expenditures portion of same, Miscellaneous Expenses was revised to $1,000. Total Water Expenses was revised to $247,000, changing the Ending Balance to $220,850.

At this point in the meeting, there was a discussion with respect to how the additional money showing in the Contingencies section of the Miscellaneous Department would be appropriated into the Five Year Capital Program. It was noted that there would be at least $500,000 available for appropriation into Capital Projects. There was a discussion over the Proposed Road Program for the year 2004. The Public Works Director noted that Irving Street would need to be done. Mr. Joseph Feskanin, 1680 N. Irving Street, questioned the Public Works Director as to what is proposed to be done. Mr. Pudliner indicated there would be total reconstruction. Mr. Feskanin inquired if widening was part of the project and Mr. Pudliner indicated that was not the case. It was noted that the work to be done would be reconstruction from Dauphin and Irving Street up to Irving and Marcon Blvd. It was also noted that Postal Road from the post office would need to be reconstructed as part of the 2004 Road Program. The Public Works Director also noted that there is a need to repair many of the storm sewers in Lehigh Valley Industrial Park III. He felt that also should be accomplished in the year 2004. With respect to these discussions, Council determined that the excess funds in the Contingencies portion of Miscellaneous Department should be appropriated by way of appropriating $300,000 into Future Roads, $100,000 into Miscellaneous Stormwater and $100,000 into the Canal Project. It was further noted that if there were funds in excess of $500,000, those funds would be appropriated into the Future Road Construction Capital Program.

At this point in the meeting, it was determined that the December 1 Budget Hearing would be cancelled. The Township Manager indicated that she would provide the Board with the appropriate revised Budgets at their December 3, 2003 Council Meeting. Council would have an opportunity to review same and a special meeting would be held on Monday December 15, 2003 at 7:00 P.M. for adoption of the 2004 Budgets. The end of year meeting for payment of end of year bills was also scheduled for Monday, December 29, 2003 at 4:00 P.M.

At this point in the meeting, Chairman Paulus closed the Public Hearing relative to the Proposed 2004 Budgets.

New Business:

Councilman Kovacs advised all present that he, the Township Manager and the Township Clerk had attended the ceremony for the new airport fire rescue facility at the Lehigh International Airport. He commented that the proceedings were very well done. He also indicated he had an opportunity to speak to Mr. Lawrence Krauter of the Lehigh-Northampton Airport Authority and discuss with him the lighting at the Airport Road/Race Street intersection. Mr. Krauter noted that he felt that the approval from the FAA to allow that to proceed should be secured by the springtime of 2004.

At this point in the meeting, Councilman Williams brought to the Public Works Director’s attention the letter which had been written to the Council members regarding his department and their feelings relative to wages. Councilman Williams felt that the letter seems to indicate that the employees were disgruntled and unhappy with the Township. Mr. Pudliner indicated that Chairman Paulus had asked him to write a letter and he did so outlining the work the Public Works Department accomplishes. Councilman Williams questioned why the letter relates to the Council’s action over the last three years. The Public Works Director noted that there had been no substantial wage increases, merely cost of living increases over that time frame. He further indicated that in previous employment in addition to cost of living there had been a little something extra by way of merit. The Public Works Director did note that with respect to this year’s budget he felt that Council has improved somewhat in the wage increases. Councilman Williams indicated he didn’t understand what the Public Works Department does over and above what is required. The Public Works Director noted that there have been many things that had been accomplished by the Public Works Director which could have been contracted out. Councilman Williams felt that if something is too much for the department to handle it should be contracted. Councilman Williams also indicated that he had raised the issue of longevity increases in the past but nothing came of it. Councilman Williams noted that possibly the Public Works Director should sit down and write another letter as to how things could be improved.

Courtesy of the Floor:

Mr. Joseph Feskanin, 1680 N. Irving Street, advised the Board that he concurred with the issues raised by the Public Works Director. He also noted that he feels medical costs are outrageous. Mr. Feskanin went on to indicate that he believed he understood the process with respect to additional contract work and the fact that legal expenses are somewhat fixed. However, with respect to engineering he questioned who has the oversight with respect to how contracts are let. Mr. Feskanin was advised that the Township goes through a bidding process. With respect to roads, Councilman Williams commented that the Township Engineer would prepare specifications and then the project would be bid. Councilman Atkinson also concurred that the engineer prepared specifications and puts the construction out for bid. Council receives bids and makes the award of the contract. It was also noted that the Township may accept the bid from “the lowest responsible bidder”. By this, Councilman Kovacs indicated that the word “responsible” is the key word and that the contractor’s qualifications would be checked out prior to awarding the bid.

Adjournment:

Motion: ---I move we adjourn this meeting of the Hanover Township Council at 8:25 P.M.

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

Respectfully submitted,

Sandra A. Pudliner
Township Manager