NEWTOWN TOWNSHIP FINANCIAL PLANNING COMMITTEE

100 MUNICIPAL DRIVE, NEWTOWN, BUCKS COUNTY, PA 18940

Internet: http://www.twp.newtown.pa.us

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Minutes for the meeting held on September 25, 2008

 

The regular meeting of the Newtown Township Financial Planning Committee met on Thursday, September 25, 2008 in the meeting room at the Newtown Township Municipal Building.

Members present were Glenn Beasley, Brian Wilson, Andy Salvucci, Ronald Kaizar, John Stranford and Mike Gallagher. Excused were Robert Dieterle, Elaine Gibbs and Jim McCrane.

Also present was Township employee Gary Crossland, Director of Public Works.

CALL TO ORDER:

Mr. Beasley called the meeting to order at 7:07 P.M.

NEW BUSINESS:

Discussion of the current economic situation and the implications with regards to the finances of the Township

Mr. Beasley advised that he requested this matter to be added to the agenda and suggested that the members discussed the current economic situation, what the potential implications are regarding income and expenditures to the Township and making a recommendation to the Supervisors.

Mr. Gallagher reported that the Supervisors have begun their preliminary review of the budget proposed for 2009. He advised that they have not begun discussing how the nation’s finances could affect the Township. He agreed this is a good topic for this Committee to discuss.

The members discussed the report to the Supervisors and agreed that at this time monthly updates are needed.

Mr. Beasley suggested that the members take the time to review what’s going on with the economy and think about the recommendations that the Committee should make to the Supervisors.

The members discussed the email received from Mr. McCrane with regards to the economic situation and the affects to the Township.

Mr. Stranford commented on the possibility of narrowing down the percentage of residents in the various industries. One member suggested getting information from the Tax Collector with regards to the Occupational Tax collected.

The members discussed how all industries would be affected by the economy.

The members discussed how the current economy could affect revenue.

The members discussed the affects to the Township’s reserves.

The members discussed the use of the MuniCast software for future forecasting of the Township’s revenue and expenses. Mr. Gallagher advised that he would check in with the Township to see if the software has been received.

The members discussed estimating the income and expenditures for 2009 and getting that information to the Supervisors for review at their meeting scheduled for October 15, 2008. Mr. Beasley advised that he would like to setup a sub-committee for this, the group would consist of Mr. Beasley, Mr. Wilson, Mr. Salvucci and Ms. Gibbs. Mr. Beasley advised that he would schedule a breakfast meeting; he will also contact Mr. Dieterle and Mr. McCrane to see if they would like to be on the sub-committee.

The members discussed contacting Council Rock School District to see what they are doing with regards to budgeting for 2009. Mr. Beasley advised that he would contact various individuals including Dennis McMenamin, Richard Abramson, Kyle McKessy, Jerold Grupp and Mark Klein. Mr. Stranford advised he would contact Bob Scohch, Council Rock Finance Director.

Mr. Kaizar will contact neighboring municipalities (Northampton, Upper Makefield, and Wrightstown) to discuss the Earned Income Tax.

MINUTES OF AUGUST 28, 2008:

Mr. Wilson moved to approve the minutes of August 28, 2008. The motion was seconded by Mr. Salvucci and passed unanimously with two members abstaining (3-0-2).

OLD BUSINESS:

Public Works – Capital Budget Presentation (continued discussions)

Mr. Crossland provided the members with a document showing the five (5) year paving cost projections. He reported that there is an error on page 5 (on the bottom section the amount should be $8.00 not $6.00, increasing the totals).

The members discussed the five (5) year paving cost projections, the funds received from the Liquid Fuels Tax and the funds needed for 2009.

The members discussed the Township budgeting for this expense.

The members discussed the possibility of imposing a road tax.

The members discussed the amount that residents pay in property tax to the Township.

The members discussed the Township’s debt service millage.

The members discussed researching the Township’s options and making a recommendation to the Supervisors.

Mr. Gallagher questioned if the Township could save money by putting the project out to bid as a five (5) year project.

Mr. Crossland discussed the cost of asphalt.

Mr. Kaizar commented with regards to a Performance Bond. Mr. Crossland reported on how a Performance Bond works.

Mr. Crossland advised that he would look into Mr. Gallagher’s suggestion with regards to multi-year bids.

Mr. Crossland reported on the 2009 Capital request for Public Works including:

Lease payment for crack sealer
$65,000.00
Purchase of a stainless steel tanker to hold “salt brine”
$60,000.00
Replacement of med. sized front mount John Deere 1445 trim mower
$30,000.00

Mr. Crossland reported on the equipment replacement schedule for 2010 – 2014 including:

2010 – Additional medium size dump truck
$ 85,000.00
2010 – Replace 1994 International dump truck
$130,000.00
2012 – Replace 1994 International dump truck
$132,000.00
2013 – Replace 1995 International dump truck
$135,000.00
2014 – Replace 1998 back hoe
$100,000.00

Mr. Crossland reported on the proposed maintenance of Township buildings and grounds including:

  • Outstanding issues for the current Administration/Police building are with regards to heating and cooling.
  • Clark Nature Preserve – replace septic tank, enlarge drainage field, waterproof the basement and enlarge the sump pump pit for approximately $25,000.00 - $30,000.00.
  • Helen Randle and Staples Playing Fields – install under ground water lines and installing guide rails for bleaches for approximately $5,000.00 - $8,000.00.

The members thanked Mr. Crossland for his time.

Discussion of the Departments’ Capital Request:

The Committee agreed to discuss the analysis at the October meeting.

PRIVILEGE OF THE FLOOR:

Mr. Gallagher reported that the Municipal Complex expansion project is scheduled to go out to bid in the next few weeks. The members discussed the financial implications if the Township were to delay the project.

Mr. Gallagher reported that the Woll Tract project is also scheduled to go out to bid.

Mr. Wilson commented on the 2009 Budget projections with regards to the amount budgeted for Police and Public Works vehicle maintenance being the same. The members agreed to look into the figure to verify that it is not an error.

The members discussed the funds budgeted for bridge maintenance.

Mr. Beasley suggested that the members review the 2009 Budget Projections and discuss at the October meeting.

Mr. Gallagher commented on the one (1) year term for Committee members and suggested if they are interested in remaining on the Committee to submit a resume.

The members discussed the term of this Committee being only one (1) year. Mr. Beasley suggested that the Supervisors increase the Committee’s term and advised that he would make that recommendation to the Supervisors.

ADJOURMENT:

There being no further business to come before the Committee, the meeting was duly adjourned at 8:22 P.M.

The next meeting is scheduled for October 23, 2008 at 7 P.M. The meeting will be held in the meeting room at the Township Municipal Building.

 

Respectfully submitted by:

 

Christy Holley, Recording Secretary