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

Absent: ------------------ Councilman Atkinson

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

Courtesy of the Floor: NONE

Approval of Minutes: ---------- October 25, 2004 - Budget Meeting

Motion: ---I move we waive the reading of the Minutes of the October 25, 2004 Budget Meeting and accept same as presented.

Paulus, Kovacs: Moved and Seconded

Hayden, Kovacs, Williams, Paulus: ------- Aye ------- Unan.
Atkinson: ---------------------------------------------------- Abstained

Old Business:

1. Public Hearing – Continuation of Proposed 2005 Operating, Capital Reserve, Liquid Fuels, Water and Sewer Budgets (Review and Discussion)

Chairman Paulus opened the Public Hearing relative to the Proposed 2005 Budgets and indicated that tonight the Board would discuss personnel in an Executive Session and will not return to the meeting with any decisions.

New Business:

At this point in the meeting, a discussion was held relative to the 2004 Road Program. Councilmembers noted that the street lights in the area of Postal Rd. and Marcon Blvd. were not operating and the area was very dark as a result thereof. The Township Manager advised that PPL has been notified of the situation and should be repairing the street lights in the near future. There was also a discussion relative to the potential of placing reflectors in the road on Postal Rd., at least on the curves on the roadway. The Township Manager noted that she was not aware of whether or not that was part of the original contract but that the Township Engineer could be consulted and should the Board desire reflectors on the roadway same could be added

At this point in the meeting, Councilman Williams advised the Board that at his suggestion, Mr. Frank Smida of the Township’s Personnel Board is in attendance this evening in order to apprise the Board of the Personnel Board’s position and make any recommendations on the benefits package. Mr. Smida advised the Board that the Personnel Board stands unanimous in recommending a 4.2% increase for wages in accordance with the policy established in 1999 using CPI. Mr. Smida also noted that in the year 2002 Council adopted an ordinance, which would regulate increases for employee’s healthcare benefits. The ordinance also utilized CPI in that calculation. He noted that the ordinance has been successful in the last two or three years and that it is the recommendation of the Personnel Board that the ordinance remain in place. Mr. Smida further stated that he understands that some employees are concerned about the healthcare cost deductions. He also indicated that he understands the Township Manager is concerned. He noted that he is aware of the fact that the Personnel Board is a recommending board and that the Personnel Board studies issues, makes recommendations, but that the governing body has the vote. Mr. Smida further stated that the Board did not feel there was a need to do a survey about the cost of medical benefits because of the implementation of the ordinance. Accordingly, no survey was done.

Mr. Smida indicated that it is his understanding that the issue now is the cost of healthcare benefits. He noted that it was his opinion that for what the employees are getting and that the highest cost for them is approximately $4,000 per year for a premier health plan, the Personnel Board felt that the Township should follow the ordinance in place. He further noted that retirees are paying more for their healthcare benefits. Furthermore, Mr. Smida stated that if the Board is thinking of rewarding three of the employees and not giving the same relief to the other employees the Board would be wrong in doing so. He advised Council that he had called the other two board members but they were unavailable to make it tonight. The other members of the Board, however, agree with his position on these issues

In conclusion, Mr. Smida added the following comments. He indicated that he felt what we have here is a Township Manager acting as a union representative when she should be working for the Council. He felt that the Township Manager was acting instead of the Personnel Committee in performing functions that the Personnel Committee alone should be performing. He further indicated his concern over what he perceived as nepotism in the Township.

Courtesy of the Floor:

Chairman Paulus opened the Public Hearing relative to the Proposed 2005 Budgets. Chairman Paulus noted that Council would begin its review of the Proposed 2005 Sewer and Water Budgets at this time. The Township Engineer was in attendance at the meeting to review the proposed Budgets with the Board.

With respect to the proposed Water Budget for the year 2005, Council reviewed with the Township Engineer the projected Revenues and Expenditures and determined to make no changes to the proposed 2005 Budget figures. As noted by the Township Engineer, the proposed Revenues in the Budget total $507,100. Total Expenditures total $262,300, leaving an ending balance of $244,800.

At this point in the meeting, Council proceeded to review the proposed 2005 Sewer Budget. A discussion ensued relative to the need for the Township to increase the sewer rates across the Board due to an apparent usage decrease. It was also noted that the sewer account is not in a position to repay the loan payback to the General Fund Account in the amount of $70,000 either this year and most likely next year there may still be a problem regarding that indebtedness. In response to that situation, Council made the following motion:

Motion: ---I move that for the year 2004 and the year 2005, Council will waive the loan payback from the Sewer Account to the General Fund in the amount of $70,000 and would look at that issue again in the year 2006.

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

Upon reviewing the Sewer Budget, Council determined to make no changes to the proposed 2005 figures. The Township Engineer noted that this proposed Budget depicts total Revenue at $651,100, total Expenditures at $632,600, with an ending balance of $18,500.

At this point in the meeting, Council determined to review the proposed 2005 Liquid Fuels Budget. The Township Manager noted that this proposed Budget takes into account the monies currently in the account plus the state allocation for the year 2005 totaling $97,428. The Township Manager further noted that this Budget proposes an Expenditure toward the road construction program in 2005 of $95,000 leaving an ending balance of $2,428. A discussion ensued initiated by Councilwoman Hayden with respect to the Township using this account as a reserve for revenues and allowing same to buildup rather than utilizing the monies toward the road construction program. It was the consensus of the Board that they agreed with Councilwoman Hayden and accordingly the Budget was amended to show an Expenditure of zero in the year 2005 for road construction work.

At this point in the meeting, Councilwoman Hayden suggested to the other Board members that consideration be given to utilize the upcoming Budget hearing on Monday, November 1, 2004 to review employee issues by way of Executive Session. Councilwoman Hayden felt that the Manager need not attend. The Township Manager advised the Board that she would request the opportunity to speak to the Board regarding her recommendation as same relates to wages and benefits for Hanover Township employees. The Township Manager noted that the Board has received the recommendation of the Hanover Township Personnel Board and that she would also welcome the opportunity to review certain issues with the Board. Accordingly, Council agreed that the Township Manager would attend the Executive Session to present her views after which the Board would then continue their Executive Session discussions without the presence of the Township Manager.

Courtesy of the Floor: ---------- NONE

Adjournment:

Motion: ---I move we adjourn this meeting of the Hanover Township Council at 7:40 P.M.

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

Respectfully submitted,

Sandra A. Pudliner
Township Manager