Attendance: ---------- 0

Courtesy of the Floor: NONE

Old Business: NONE

New Business:

1. Public Hearing – Proposed 2009 Operating, Capital Reserve, Liquid Fuels, Water and Sewer Budgets (Review and Discussion).

Chairman Paulus opened the Public Hearing relative to the Proposed 2009 Budgets. A discussion began with respect to the Summary of the Proposed Budgets as provided by the Township Manager. The Township Manager noted that a surplus figure of $200,000 is shown in the Budget but that said figure is speculative and the Township will need to wait closer to the end of the year to make a final determination regarding that figure.

There was a discussion relative to the input in the Revenue portion of the Operating Budget received from the Township’s Tax Collector, Berkheimer Associates. The Township Manager advised that with respect to Earned Income Tax collection, she has opted to utilize the low projection figure due to the fact that the Township has to a large extent lost revenues from nonresidents working at the Agere facility. The Township Manager also noted that the Local Services Tax figure in essence only includes three-quarters at the higher rate due to the fact that the fourth quarter of collection is always received in the first quarter of the following year. There was considerable discussion with respect to the issue of the Local Services Tax as noted in the Berkheimer letter being $47 rather than $52. The Township Manager indicated that she was of the opinion that the $47 relates to the Township’s revenues and the $5 is the monies going to the school district. Previously, when the Township was at a $10 rate, that rate was split $5 to the Township and $5 to the school district. Councilman Atkinson questioned that scenario and requested that the Township Manager check with Berkheimer.

Associates to determine what the Local Services Tax covers and if indeed there is a $5 distribution to the school district. With respect to Business Privilege Tax Collections, the Township Manager advised that she has shown the high projection per the Tax Collector’s correspondence to the Township. It was noted that although the Airport Centers Shopping Center may be in operation in the year 2009, certain stores may not open until the Fall of that year or at the earliest mid-year 2009. The Business Privilege Tax owing for 2009 would only be for the portion of the year they are in operation. Accordingly, Berkheimer has taken a conservative approach in their projection and the Township Manager advised the Board that she is in agreement with same. Accordingly, the figure shown in the Proposed Budget involving Earned Income Tax at $425,000, Local Services Tax at $300,000 and Business Privilege Tax at $1,190,000 remain unchanged at the present time.

At this point in the meeting, Council entered into a discussion with respect to the Summary of the Budgets provided by the Township Manager as same relates to full-time Township employees. There was discussion relative to the formula that the Township had utilized in prior years to determine cost of living increases. The Township Manager noted that in reviewing the Township’s ordinances, she had discovered that the formula utilized had never been put into ordinance form and in that regard she provided the Board with copies of a proposed ordinance for consideration. The Township Manager noted that inflation as shown in the ordinance from June of last year to June of this year was excessive, i.e. 11.1%. After removing healthcare cost as a percentage decrease from that figure, the cost of living raise per employee would still have been slightly in excess of 10%. This being unacceptable in terms of salary increases, the Township Manager noted that she has added language to this proposed ordinance which says that in no case, however, shall the COLA increase for Township employees in any given year exceed 5% over the current salary.

Council also reviewed proposed salary increases of 25 cents per hour for the head of the Code Enforcement Officers Department and 15 cents per hour for the other Code Enforcement Officers as set forth in the Township Manager’s Summary of the Budgets. Council found those figures to be acceptable. The Township Manager also noted that Miscellaneous Contingencies is currently shown at a figure of $70,304 which will need to be adjusted to a more realistic figure during the Budget process.

With respect to the proposed ordinance relating to salary and pay rates, namely, Bill No. 2008-9, Chairman Paulus introduced Bill No. 2008-9 at this time. Bill No. 2008-9 is an ordinance amending Chapter 1, Part 7, Section 1-724, Salary; Pay Rates, of the Statutory Code of Hanover Township.

At this point in the meeting, Council proceeded to review the Revenue portion of the Proposed 2009 Operating Budget. It was determined that Real Estate Current would be revised from $45,000 to $44,000. Real Estate Interim was revised from $4,000 to $3,000. Deed Transfer Tax was revised from $150,000 to $125,000. There was a discussion relative to the Public Utility Realty Tax. The Township Manager advised the Board that Lehigh County had indicated prior to this year that the Public Utility Realty Tax Funds would no longer be forthcoming. However, the Township received a check most recently in the amount of $2,832. Council requested the Township Manager to research this to determine if these funds were inadvertently sent to the Township or if indeed the Township will be receiving Public Utility Realty Tax in upcoming years. With respect to the Commercial Parking Lot Tax line item, Council determined to revise that figure from $160,000 to $150,000. All the above relates to the Department for Taxes as shown in the Revenue portion of the Operating Budget.

With respect for the Department for Licenses and Permits, the Township Manager advised that the Liquor Control Board has forwarded a check in the amount of $2,300 to the Township. However, the Township had budgeted $3,700. Council determined that the Township Manager should go back through the records in an effort to determine why the reduction has occurred. With respect to the line item for Park Permits, Council revised same from $4,000 to $3,500.

At this point in the meeting, Chairman Paulus closed the Public Hearing relative to the 2009 Proposed Budgets. The next Public Hearing would be held on Monday, October 20, 2008 at 4:00 P.M.

Adjournment:

The meeting was adjourned at 5:00 P.M.