A special meeting of the East Amwell Township Committee came to order at 7:00 PM. Present were Mayor Larry Tatsch, Deputy Mayor Linda Lenox, and Committee members Patricia Cregar and Peter Kneski. Committee member Timothy Martin was absent. Township Administrator Timothy Matheny and Treasurer/CFO Jane Luhrs were also in attendance.

In compliance with the Open Public Meetings Act, a copy of notice of this meeting was filed in the Clerk's Office, posted on the bulletin board, and sent to the Hunterdon County Democrat, Times of Trenton, and Star Ledger on March 19, 2008. The purpose of this meeting is to meet with the Township Administrator and the Treasurer/CFO to discuss the 2008 budget. The public is invited to attend and comment. Action may or may not be taken.

Mrs. Luhrs provided handouts for the governing body members. She explained that there are numerous Local Finance Budget notices about the budget. There has been an unofficial notice that state aid will be restored to the municipalities less 22% this year, less 44% next year, and there after. Mrs. Luhrs explained that the Township received $160,463 in COMPTRA in 2007 and additional state funding; the additional funding is now gone. Based on the assumption that East Amwell Township would get 78% of their allocation of $168,000, she placed $125,161 on the COMPTRA line. The governing body will have to decide how to use the funding since they have already made budget cuts, e.g., reduce taxes, put into surplus, use less reserve for debt, increase budget line appropriations.

Mrs. Luhrs recommended that the Township Committee introduce the budget, hold a public hearing, but not adopt the budget until the final numbers are available from the state. If the budget is adopted, the money must only be used to reduce taxes. She also noted the 4% CAP next year on this year's budget, and she suggested increasing department appropriations so that the base from which to build the CAP is greater.

Mr. Kneski raised concerns about grants in this year's budget. Mrs. Luhrs explained that there are a number of grants, including the two new ones applied for at the last meeting. Mr. Kneski was concerned specifically with the Back Brook funding. There is $25,000 in the budget from the Township for this project and $36,000 for the municipal building project; there is cash in the current budget to do the work.

A lengthy discussion took place about the Spring Hill Road project, with the following highlights: There is $110,000 in the capital fund; if the Spring Hill project is not going forth, the Back Brook Road and municipal budget funding can be taken from this "bucket"; the Spring Hill Road project was funded, in part, by a state grant several years ago for which Montgomery Township was the lead agency; while originally the intent was to go out for bid in February 2008 and award the project in March 2008, no action has been taken; Hillsborough Township does not want to finance any of the work, and it is unclear how their portion of the road will be funded; East Amwell Township's section is a smaller section, about 700-800 feet; Mr. Tatsch asked whether it was a resurfacing or reconstruction, and Mr. Matheny advised that it was reconstruction, which is more expensive; Mr. Tatsch spoke about Engineer O'Neal's recent attempts at getting easements, and Mrs. Stahl added that he has been working on easements since the original application was sought; the cost will have likely increased from the original calculations several years ago, when East Amwell's share was $110,000; Montgomery Township is now looking for $125,000 from our municipality; all were in agreement that it was important to see where the project stands and whether it would go forth at all, i.e., if the grant expires in June, will an extension be sought. Mr. Matheny will speak to Engineer O'Neal tomorrow for an up-date on this project.

Discussion continued about the municipal building project. Mr. Matheny commented on the work started last year, and he noted that the rugs are now becoming unsafe in the meeting room area. He had heard that Living Waters Lutheran Church wanted to donate rugs for the large room, and he has been in contact with church member Terry Welsh about this. The cost for rugs for the meeting room area will be around $5,000, which may be donated by the congregation in appreciation for use of the municipal building. Mr. Matheny would like to see the room painted before the rugs are installed.

Mrs. Luhrs reviewed budget figures and concluded that if the work on Back Brook Road was postponed (i.e., the project time line is 18 months from the receipt of the grant), she could cancel the speed detector sign ordinance and with some surplus, there would be sufficient funding for Spring Hill Road and the municipal building. A question was asked about canceling the outstanding balance for the Clawson Park contractor, Makrancy Construction; this will not be done. Funding for Lindbergh Road and Rocktown Road were mentioned.

The ordinance for the additional $36,000 in funding will be introduced at the April 10, 2008, meeting. The ordinance for the Spring Hill Road project may be on the following agenda, and further information on the project will be sought.

The budget will be introduced at the April 10 meeting, and a public hearing will take place in May. Mr. Kneski asked about having another budget meeting for public comments about the state funding issues. Some discussion took place on the work the governing body did to keep the tax rate tight in terms of the budget cuts anticipated from the state. Mrs. Luhrs asked how the governing body would utilize the returned state aid, i.e., going into surplus, for more capital ordinances, adding more to the engineering line, which is half way utilized at this time, adding more to department budgets, etc. She again reminded the governing body about the 4% CAP next year on the 2008 budget, and she cautioned that the budget should not be so tight. Mr. Tatsch felt that a one to two percent increase in the budget each year is appropriate, and he commented on not using so much surplus. Mrs. Luhrs suggested that the budget could be amended before adoption.

Mrs. Luhrs continued by reviewing the revenues and appropriations. Clean Communities funding was received in the amount of $8,392.12, which will help with clean up day and solid waste costs. There is also a $1,000 grant from Hunterdon County Heritage Commission in the budget. Mrs. Luhrs explained that the ANJEC grants were not in the budget since they cannot be included unless the grants are received. The state funding of $202,444 for the Meszaros remedial investigation is in the budget, and the $38,560 from the Hunterdon County Open Space Trust Fund is also included. There is $519,043.00 shown as a reserve for payment of debt from the Reiter funding, which will be used to pay off notes. The fire district tax is a "pass through" and if reinstated at 78%, the amount will be $1,718.34. Mrs. Luhrs added $3,000 for gypsy moth suppression, which would be discussed tonight. She also explained that the Defined Contribution Retirement Program would replace the pension fund for employees hired after July 1; this contribution will be a payment of 3% at every pay period, similar to the deferred compensation payments. Mrs. Luhrs also commented on a new recycling tax, but she had no information on the intent or the amount.

Mr. Tatsch re-opened discussions on gypsy moth suppression. The following are highlights: Resident Neal Tobin appeared at the March 27, 2008, meeting and voiced his concerns; Mr. Tatsch read an article in the Hunterdon County Democrat about Clinton Township's program, for which residents were asked to pay for a part of the state's aerial treatment program; Mrs. Luhrs contacted the Clinton Township Administrator, who advised that their Township sent letters and requests for funding to 250 homes. The funding for the program was appropriated in Clinton's budget and donations were put in the budget as refunds; Auditor Case advised Mrs. Luhrs that this might not be the correct method. The Township could set up a dedicated by rider fund, and money placed in this account could be used for future treatment programs. The governing body agreed that they would consider any future treatments on a case-by-case basis; Mrs. Luhrs stated that a dedicated by rider resolution would not be appropriate, and the money could be put into the budget as miscellaneous revenues appropriations.

Mrs. Stahl explained that the New Jersey State Department of Agriculture revised the spray area from 83 acres to 73 acres as a corrected figure, and there would be only one treatment application. The fee to the vendor is $39.94 per acre at a cost of around $2951.00. While Clinton Township already found out that they would be eligible for a 25% federal refund, East Amwell Township has not yet received any verification. The Committee discussed whether it was appropriate for Mr. Tobin to contact his neighbors to ask for financial assistance for the spraying. They also discussed the potential for having all of the 24 neighbors agree to subsidize the spraying.

Mrs. Stahl raised a question about whether or not any of the residents would feel compelled to finance the state program in light of their concerns of other budget cuts, including loss of the curbside brush pickup. Mrs. Cregar asked if there have been complaints. Mr. Tatsch mentioned a recent conversation with DPW Superintendent Howell about the Back Brook Road project. Mr. Howell has input from Engineer O'Neal about the price difference if a contractor or the DPW does the work, i.e., $1,100 more if a contractor does it. If the DPW does not proceed with the Back Brook Road project, the Department will be free to do other projects. Discussion took place about possibly reinstating brush pick up, with the following highlights: notices have been sent to the residents that the program has been cut and further information on how residents may get rid of their brush will be forth coming in the next few months, including having residents take their brush to the grit yard once Mr. Howell decides on the timing process; Mr. Kneski felt that spring was a better time of the year to chip rather than fall; reinstating the program this year may cause some confusion. The decision was not to reinstate the brush chipping program this year, although it may be considered for Spring 2009.

It was noted that the DPW would also have other road projects this year, including Lindbergh Road, which they will be able to complete on their own.

Discussion returned to the gypsy moth suppression program and the intent to ask residents for funding for the program to save the trees on this road. The governing body discussed the following: one treatment of aerial suppression will not eliminate the infestation, but it would be helpful; there are a number of large, older trees on this border road, and the spraying will benefit the residents on Wagner Road; Mr. Tatsch mentioned comments from a farmer during the public hearing on gypsy moth suppression about paying for treatment on his field in the past; Mr. Tatsch also mentioned the devastation to trees during past infestations, and he explained how the pest cycle progresses, i.e., while the caterpillars do not travel from tree to tree, once they become moths, they will fly to other areas to expand the problem; spraying the area may decrease the number of eggs. Mrs. Luhrs recommended putting $3,000 in the budget for the program and not asking neighbors to solicit donations. Ms. Lenox and Mrs. Cregar both agreed that they would like to see the funding back in the budget for the suppression treatment. The Clerk will send a letter from the Township asking for subsidies from the residents on Wagner Road, and any funding received will be put into surplus. The Clerk will also notify the NJ Department of Agriculture that they will be participating in the program this year.

Mrs. Luhrs again reviewed the budget packet she provided to the Township Committee. $500 will be placed in both the defined contribution retirement program and the recycling tax line items. The tax rate will not be changed and the revenues will remain as shown. All were in agreement that the budget should be introduced at the April 10, 2008, meeting. Mr. Tatsch will complete his budget message for inclusion with this year's budget.

The governing body was asked to review the 5 year Capital Program from 2008 through 2012. Mr. Tatsch and Mrs. Luhrs explained that this was a planning tool only and the municipal was not locked into any commitments. Items discussed included the following: the Township has verbally committed to funding $1,000,000 over a course of years towards the purchase of the Higgins property - it was unknown whether any funding would be necessary this year, but if so, it would be approximately one-third of the cost; the five year plan for open space will show $715,300; $1,720,000; $500,000; $300,000; $300,000; Mr. Kneski commented on the importance of creating a five year road plan, and Mrs. Luhrs suggested increasing the engineering line item since one half of this line item has already been utilized; the $470,000 in the 2008 line item for road projects included grant funding - a recommendation was made to put $500,000 per year for the next four years in the five year plan; Mr. Matheny explained that the plan is to get into a cycling of replacing equipment, and the capital plan will include $140,000 for 2008 and $75,000 in each of the four remaining years; Mr. Kneski commented on his recent tour of the grit yard, and he believes conditions are satisfactory and vehicles are kept appropriately.

Further discussion included the following: Clawson Park equipment and improvements will have $10,000 in each line for the five year plan; improvements to Clawson House were discussed, including the recent stabilization and the intent to repair the roof; the quote for the roof repair may be around $4,000; Historic Preservation Committee has been charged with looking for grant funding, and it was unclear if they have been able to find any grants for this year; the governing body speculated that no grant funding would be available for the house rehabilitation this year; Mr. Matheny explained that Architect Terry Golda is revising the house plans because the elevator cannot be placed on the back of the house; state approval of any new plans will have to be sought; the improvement plan will show nothing in 2008, $400,000 in 2009, $300,000 in 2010, and zero in 2011 and 2012.

Building renovations were discussed at length. Mr. Tatsch would like to see the key card access system installed at sometime, and a suggestion was made to have the wiring installed while the building is under construction at this time. The governing body appreciated Living Waters Lutheran Church donating the funding for the rug. Mr. Kneski commented on the work to be done to the exterior of the building in the future, and some discussion took place about leaks to the roof over the garage area (i.e., the roof over the garage was not replaced when the roof to the main building was replaced). Mrs. Luhrs explained that the funding for the chairs for the dais came out of buildings and grounds last year.

Mr. Tatsch commented on the program on solar energy, which was recently given to the governing body. Mrs. Stahl will copy the Township Committee on a recent email she received indicating that municipalities will not be eligible for solar energy rebates at this time; however, Mr. Tatsch speculated that there would be federal incentives in the future for solar conversion, and he provided specific information about solar use in Cambridge, Massachusetts.

The building renovation line will show $36,000 in 2008, $25,000 in 2009, and $15,000 in 2010, 2011, and 2012. The office equipment line item will show zero in 2008, and $14,000 in the remaining four years of the five year plan.

Mr. Tatsch thanked the governing body for performing the exercise of preparing the plan, which he and Mrs. Luhrs did last year. Mr. Tatsch will work on the budget message.

There were no members of the public to provide comments.

There being no further business, a motion was made by Ms. Lenox, seconded by Mr. Kneski, and it was carried unanimously to adjourn the meeting at 8:50 p.m.

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Teresa R. Stahl, RMC/CMC

Municipal Clerk