In attendance from the
Board of Supervisors was Barbara N. Lyons, Chairman: E.
Thomas Scarborough, Jr, Vice Chairman; and Jeffrey Bennett.
From the Ways and Means Committee: Mark Glassman, David
Nettina, Brenda Bray and Ed Ebenbach. Staff in attendance:
William Wightman, Finance Officer; Richard John, Director of
Operations; Stephen White, Chief of Police and Stephanie
Mason, Township Manager. Absent: Barbara Eisenhardt, Cynthia
Philo.
Mrs. Lyons indicated
that at the last work session the Ways and Means Committee
asked the Board to identify a fund balance range that would
be acceptable to the Board. She indicated that last year the
Board had identified $1,000,000.00 in the fund balance. She
believes that we should strive to again keep $1,000,000.00
in the Fund balance.
Mr. Glassman indicated
that was a good balance to keep and indicated that the
Township would not want to go too low based on the economy.
Mr. Glassman then
discussed some housekeeping items and he indicated that the
accounting treatment for the sale of the land to PennDOT
totaling approximately $166,000.00 needs to go into the Fund
balance perhaps the Capital Reserve or Off-Site and treat
that revenue and address it now that it has arrived. That
will show in the next draft.
Also he wanted to have
a discussion regarding the nuances of the restricted and
unrestricted funds balance. He indicated that the restricted
balance is over as $1.3 million and combined with the
unrestricted fund balance of $1.5 million that 2009 would
end a projection total fund balance of $2.8 million.
He also discussed the
money in the Debt Service Fund and that with the refinancing
of the bond issue in 2008 that we are starting to see a
residual build up as funds are being brought in and
expenditures are beginning to decrease. There was
significant discussion on how that residual could be used to
offset capital improvement projects and it was recommended
that the staff speak to the Township Solicitor to clarify
how to go about properly utilizing the residual in the Debt
Service for capital projects especially those relating to
building improvements.
Mr. Glassman also spoke
with the Board regarding the Pension obligation and
utilizing the 2007 Valuation vs. the 2009 which the Township
can do. The changes to Act 44 will allow the Township to do
smoothing and this will help.
Mr. Wightman indicated that
there were concerns about the new levels set forth in the
obligations of municipalities with their pension plans if they
fell below a certain funding level. Fortunately, for Doylestown
Township, we are at a funding level at 72% with a combined
pension plans and therefore we are not obligated to do any
additional reporting with the changes to Act 44.
Mrs. Lyons indicated that it
appears the Township has done what it needs to do for 2010. We
should continue to monitor the situation as we head into 2011
and address the pension item at that time.
Mr. Glassman indicated that
the Board has been provided with reconciliation of operating
surplus as well as 2009 Budget vs. 2009 projected, 2009
projected vs. 2010 Budget and fund balance rolled forward
sheets. To again reiterate some of the assumptions the 26 pay
vs. the 27 pays, the land sale, the holding of the 3.5% wage
increase based on contract, the savings benefits from the health
insurance rate stabilization fund and the one time revenues that
have been addressed from building permits for the hospital and
the YMCA.
The Board looked at the
reductions in the Transfer Tax, the EIT Tax for 2009 is down and
was budgeted flat we’re continuing to budget flat under EIT and
the real estate. Also the transfers were down a little only
about 10%.
It would appear that at the
end of 2009 we have $45,798.00 operating surplus and projecting
for the end of 2010 an operating surplus of $132,957.00.
Mrs. Lyons indicated that it
appears that the Ways and Means Committee and Staff are taking a
conservative approach and that’s good in light of the greater
economic conditions of the area.
Mr. Nettina indicated that
he’d attended meetings with Bucks County Industrial Development
Authority who indicated that unemployment figures did not start
in this area until a few months ago vs. general unemployment
related nationwide vs. regionally. Metro Philadelphia area did
better than other parts of the county.
Mr. Glassman then discussed
the Fund balance and the way the Township sets up the restricted
vs. the unrestricted funds, some of which have legal obligations
for restricting and others that have been self-imposed by the
Township over a period of time and a clarification of what some
of those funds could be used for in doing various projects for
the Township.
Again there was discussion
regarding the Debt Service Fund as established to pay down the
bonds which would be paid off in 2017 and that the same level of
revenue is being collected but payments have decreased somewhat.
There was some discussion on
changing the millage and the ability to change debt millage to
another type of millage. We’d be able to use it for other things
without changing the overall millage rate.
Mr. Bennett inquired how the
funds would come out of the Debt Service Fund to be used in
other funds and also how do you reduce the taxes if need be by
2017.
It was agreed that
additional legal assessment was necessary.
Also there was discussion
on the Capital Fundraising Fund to be used for capital
improvements for the Township’s park system as established. It
could be utilized for the purchase of open space as well as
capital improvements in the parks, such as, back stops,
pavilions, etc.
Mr. Nettina inquired about
the proposed purchase of open space utilizing County bond issue
funds that have been allocated to the Township to be used for
preservation of open space.
Mrs. Lyons indicated that
she had served on the County’s Open Space Task Force with the
last bond issue that was approved by the voters and the desire
of people in Doylestown and Central Bucks is to continue to
preserve open space and the benefits of the Municipal Open Space
programs that the County offers.
The street light buyout is
something that will provide a great savings in the operations
budget. Although a large capital out lay to acquire the lights.
The long term savings is beneficial to the Township and one that
should continue to remain under consideration.
It was the consensus of the
Ways and Means Committee and the Board to have the staff go back
and revise the Capital Improvements Project list and allocate
the items to specific funds and then at the next Budget Work
Session on Nov. 4th discuss utilizing various funds
and continuing to maintain a restricted and unrestricted fund
balance at around $2 million.
Mr. Ebenbach indicated that
he’d be happy to work with the staff in preparing for the next
meeting.
Being no further business
the meeting adjourned 8:30 PM. The next meeting will be on
November 4, 2009 at 6:00 PM.
Respectfully submitted by
Stephanie J. Mason
Secretary
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Authored by Development Solutions