FINANCIAL PLANNING COMMITTEE

TUESDAY APRIL 15, 2003


Approval of Minutes: On motion of member Vance,   seconded by member Fidler and approved by all present  minutes of the meeting held on April 15, 2003 were approved. 


The Newtown Township Financial Planning Committee met on Tuesday,  April 15, 2003 in the meeting room of the Newtown Township Municipal Building. 

Members present were Chairman Richard Weaver,  Allen R. Fidler, III,  Philip Mewmuis, Robert Dieterle, Phil Vance and Ryan O’Keefe.   Members excused were Sarita Tirpak and Elaine Gibbs.  Township Manager Robert Pellegrino was unable to attend. 

Call to Order

Chairman Weaver called the meeting to order at 8 A. M.

Approval of Minutes 

Minutes of the meeting held on March 18, 2003 were approved as submitted on motion of Phil Vance, seconded by member Robert Dieterle and approved by all present. 

Chairman Weaver stated that  he and manager Pellegrino were planning to present a Resolution regarding the Reserve Account Policy to the Board of Supervisors at its’ meeting scheduled for April 23rd. 

Committee members suggested a separate account in the Reserve Fund Account be set up for the purpose of Building Expansion. 

A five-point Recommendation, developed in October, 2002  was to be presented to the Board of Supervisors and copied to the Committee.   Discussion centered on Item #4,  “Appropriations from the 15% reserve fund should only be authorized by a unanimous vote of the Board of Supervisors and should be for emergency or for expenditures of a non-recurring nature.”   Chairman Weaver noted plans for land development are in place at the present time,  awaiting a reply from the Archdiocese of Philadelphia regarding the purchase of land:  Parcels A, B & C. 

Discussion centered on Item #3,   “Reserve Funds between 15% and 20% could be appropriated to balance the annual budget”.   The question concerning members was:  “Should this be a one-time, non-recurring transfer?”  Chairman Weaver inquired if consideration should be allowed if a catastrophic event happens?   The consensus was that it should be of a “non-recurring” event. 

It was decided that this discussion should be continued at the May meeting when Manager Pellegrino and Finance Director Gibbs would be present.   

Chairman Weaver noted that an example was approval to transfer $900,000. from the general fund, $400,000. of which was to build a pole barn, which never happened. 

Member Fidler asked Chairman Weaver if there is currently a policy that a review be done in December whereby certain items might be re-classified? 

Member Dieterle recommended that the Policy Recommendation developed and approved by the Financial Committee,  along with the Resolution which had been submitted to Supervisors by Raymond W. “Skip” Goodnoe be  resubmitted at this time to the Board.   Chairman Weaver was directed to speak with Manager Pellegrino and Finance Director Gibbs to accomplish this.  ( A revision would be copied to members of the Finance Committee.) 

Reasons for Borrowing

A brief discussion was continued on the reasons for borrowing money:  

1.      Expansion of township buildings, etc.,

2.      Timing of refunds:  PaDOT refunds for reconstruction of Sycamore Street may

            impact general fund revenues adversely.

It may be a consideration to enter into a “line of credit” with an area banking institution for certain “revolving expenses”, as needed. 

Adjournment

There being no further matters to come before the Committee, the meeting was duly adjourned.

  

Respectfully submitted,

 

 ______________________
Ethel K. Hibbs, Secretary