Minutes from

July 19, 2006

Board of Supervisors Meeting

In attendance were Walt Berry, Chairman; Barbara Eisenhardt; Barbara N. Lyons; Cynthia Philo; William Wightman, Finance Officer; Chief Stephen White; Richard John, Director of Operations; Denny Rickert, Roadmaster; Karen Sweeney, Park & Recreation Director; and Stephanie Mason, Township Manager.  Absent:  E. Thomas Scarborough, Jr.

Mr. Wightman provided the Board with the history of taxes over the last twenty (20) years and indicated that the Central Bucks School District has increase taxes 187%, Bucks County has increased 130% and Doylestown Township has increased 14%. Mr. Wightman noted that inflation has gone up in the last 20 years 58%. He indicated that the township has not kept up with inflation.

He indicated that the census from 2004, of the 17,600 residents only 9,357 pay earned income tax, that’s 53% of the residents, 47% don’t. 436 residents work in Philadelphia. We receive no tax money from them.

1987 was the last year that the General Fund millage was increased 3/8 of a mill. Since then the overall taxes have gone down. In 1992 the township began to break out Park and Recreation, creating 3 mills allocated to it. In 1992, overall the township went down in taxes by 2 mills. In 1997 there was an increase in millage for park and recreation, 3 mills for debt service. In 2003 the millage was increased for park and recreation, also debt service by 8 mills. At the same time the fire fund was increased by voter referendum up 2 mills. Primarily, during the interim from the time in 1992 to 2003 the debt service was covered through the general fund.

Inflation factor covered an average of 2.9% a year the last 20 years. Increase for inflation would have been 2.89mills. We would have more revenue that we don’t have because we did not keep up.

The EMS tax a $10 tax went up to $52 last year. It went from us receiving  $125,000 to $525,000. It was incorporated into the budget and had we not had it we would have had to dip into the reserve even more. Presently we have approximately $1.5 million in reserve, which is basically 2 years of debt service payment. When asked, Mr. Wightman indicated that he’d like to see the township have at least $3 million in reserve. Mr. Wightman indicated that the last time the capital reserve fund was increased was 2003. In 2004, 2005 and 2006 we had to dip into the reserve in order to balance the budget.

Just as an example in 2002 we paid $1.10 per gallon of gas, in 2006 we are paying $2.94 per gallon of gas.

Mr. Wightman indicated that 1 mill of tax equals $240,000 at a cost of $40 per household. 3 mills of tax would be $720,000 and $120 per household a year.

The finance committee met and reviewed the requests from the department heads and capital purchases which we are approximately $1.5 million short. Obviously, by the end we need to balance the budget for 2007.

Things of Concern - $210,000 franchise fee for cable, with legislation pending things could change. That money could go away.

Mr. Wightman indicated the items that the finance Committee working with the department heads, took out of the budget, which totaled approximately $456,307

Mr. Berry questioned, what do we need to meet the $1,160,523. Mr. Wightman indicated 5 mills. He indicated that may be unrealistic for the Board and they may want to look at 2 – 3 mills over a period of time each year.

Ms. Philo inquired if 5 mills would be sustaining, because you do not want to be stuck in the future. You want to make things more palatable.

Ms. Eisenhardt commented that if we keep cutting the items year in and year out, how many times can they be cut before we really need them.. There will come a time when we will have to raise taxes and raise taxes even higher.

Ms. Sweeney commented about tennis courts and maintaining them to a high level and addressing the needs of an aging infrastructure.

Chief White commented that he had been involved in several outside committees and the war in Iraq is being funded with most of the federal dollar and the federal government will not be allocating funds to the local level for law enforcement. They are expecting local levels to address things.

Ms. Philo commented about revenue producing facilities and keeping our eye on the break even level that people will continue to use them.

Mr. Berry commented about Kids Castle and its life span. He noted that its 10 years in the maintenance. Ms. Sweeney indicated that she believes that they could get 15 to 20 out of it due to good maintenance. But technically, the life expectancy was 10 years, that is based on maintaining things on a good level and because it was custom built. But obviously, the vandalism and the wear and tear is beginning to show. Kids Castle group days do generate around $5,000 per year, which helps to cover a portion of the maintenance, i.e. sealing the castle.

Park and Recreation generates about 30% of its revenue back each year.

Ms. Eisenhardt commented about the police. You can’t keep putting off items for so long. It is unrealistic. We need a more realistic approach.

Chief White commented about the AED machine and the fact that they were all donated but now they need to be replaced due to technical changes. It is not something that he wants to see cut from the budget.

Mr. John indicated that he has a list of $3 million worth of projects.

The Board discussed the possibility of increasing the millage to 5 mills with cuts. They talked about replacing the Tot Lot at Turk Park II.

Ms. Eisenhardt indicated that she would like to see an AED machine in the township building and also have one in the Activity Center. They talked about the hospital donating them. There was discussion about video surveillance. The PIMA Risk Management audit that occurred recommended that certain cameras be placed in the Police Department.

Mr. Wightman commented about the park system, and 2006 Budget General Fund kicked in $250,000. The park system is not self sufficient yet. Residents want parks and recreation. There was discussion regarding using community corrections people to help with maintenance. Mr. John was going to look into what it would take to do that.

Ms. Philo talked about Oktoberfest and the cost (approx. $125,000) to put it on. It makes anywhere from $15,000 a year but is weather dependant. The primary goal is to beak even. Obviously, the golf outing generates approx. $15,000 per year and are a lot less intense to put on. Ms. Sweeney pointed out that Oktoberfest is not a good fundraiser but it is a good will factor to the community.

Ms. Lyons recommended that talking about eliminating Oktoberfest is something that the Oktoberfest Committee and Park and Recreation Board discuss and bring a recommendation back to the Board. Everyone agreed.

There was some discussion regarding the C.B. Ambulance and their request for funding. Mr. Berry indicated that Doylestown Borough and the Township intergovernmental liaison met and both would like it to be a ballot issue however, they are meeting again to see exactly what the ambulance is requesting. We have heard that they don’t need as much as they originally thought.

Ms. Eisenhardt’s opinion was to go to 7 mills for an increase. It would be better than trying to play catch up and we would stay current with inflation.

Ms. Philo commented about roads and doing all that we can with new things.

Mr. Wightman indicated that a 7 mill increase would equate to a $280 increase per household.

Ms. Lyons supports the potential for a 5 mill increase, especially, if we can put more back into the budget but is concerned with 7 mills.

We discussed the replacement of a 1994 truck but keeping it to use with the summer crews. The new unit will cost $32,000. We also discussed the proposed mower. We need a new unit that is universal and can handle snow removal on the bike paths. It would be an all-in-one machine.

Ms. Eisenhardt commented on overlays and blacktop. This is a small portion of the budget and an increase to 7 mills could assist in doing more overlay projects.

Mr. Wightman indicated that 7 mills would also increase the reserve.

Mr. John indicated that oil and chip is approximately $22,000 per mile, black top is $80,000 per mile.

Ms. Lyons questioned over time how much are we spending. She will not vote for a nice road just because it’s prettier, but more costly.

Ms. Philo indicated that she recognizes oil and chip is used as a maintenance product.

Ms. Eisenhardt commented that putting overlay down is better than oil and chip even pediatricians recommend it. It is a safer surface for children to ride their bikes.

Mr. John commented about storm water management becoming big under the law. Priorities would be designated more for storm water. We will have to adhere to it in the future. Just in the township complex there will be things that have to be done, where we will be spending money from the general fund. He suggested perhaps separating it in the future. We anticipate almost $50,000 this year alone in storm water management.

At the conclusion the Board recommended that we build a budget at this point with a 7 mill increase showing all the items that were initially indicated for capital by the department heads that we cost out, black top, storm water, and we review the 10 year capital plan as it has existed and that we meet again on August 16, 2006 at 9:00 AM.

Being no further business the work session adjourned at 11:00 AM.

Respectfully submitted by
Stephanie J. Mason