A special meeting of the East Amwell Township Committee came to order at 7:35 PM. Present were Mayor Peter Kneski, Deputy Mayor Linda Lenox, and Committee members Patricia Cregar, Timothy Martin, and C. Larry Tatsch. Township Administrator Timothy Matheny was also in attendance.
CFO/Treasurer Jane Luhrs was present during this meeting.
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 January 7, 2009 and revised on January 9, 2009. The purpose of this meeting is to meet with the CFO/Treasurer and Township Administrator to discuss the 2009 budget and to approve a resolution to go into executive session to discuss litigation and personnel.
The public is invited to attend and comment at the open portion only. Action may or may not be taken.
2009 Budget:
Mrs. Luhrs provided a budget packet including the 1/12/09 Revenues Sheet, a sheet entitled Preliminary Significant Changes in Appropriations, the 1/12/09 Appropriation Summary, the 2009 Capital Projects packet, the 2009 Budget Worksheets for Departments, and the packet of background data for the individual budget requests.
Mrs. Luhrs referred to the revenues sheet, based on last week's discussions, which showed a 3 cent increase over last year. She "played with" the numbers in the budget to reduce the appropriations number from $3,258,736.00 to $3,048,856.00 to try to get to a flat tax rate, as outlined on the significant changes page. This included a reduction in debt service (i.e., not borrowing for Higgins property, final payment last year on the original EDA loan for the municipal building, Reiter reimbursement from the state, reduction of bonds from $1.6 Million in short term BANS to $1 Million with a lower interest), a reduction in the capital improvements line item from $197,500 to $97,500 based on no capital improvement requests, raising the reserve for uncollected taxes $25,000 (i.e., the number is based on a calculation, which will be provided by the Auditor later in January or in early February), and adding $27,766 in line increases for operating expenses.
The total reduction of $209,880 did include the presumption that the state would provide CMPTRA funding. Mrs. Luhrs attended a budget seminar on January 9, and the state may have their numbers by mid-March instead of January. If no CMPTRA is received, this would equate to a 1.5 cent increase in taxes. She further explained that statute dictates that the energy receipts must go up each year; however, the state may reduce the CMPTRA to raise the energy receipts.
Mrs. Luhrs explained that the revenues were down last year (e.g., permit fees, interest, etc.), and the municipality can only anticipate what they brought in the previous year. The budget will meet the 3.5% index CAP; she did not calculate the 4% budget CAP. The $100,000 in unexpended funds was rolled into surplus at the end of 2008.
Mr. Martin referenced the appropriations summary and asked about insurance increases; health benefit costs increased by 6% and total liability (all insurance except Workers Comp) increased to $98,386.
Discussion took place on the capital projects budget, with the following highlights: There are no new road projects anticipated because there are three projects from last year to complete in 2009, i.e., Spring Hill Road, Back Brook Road, and Lindbergh Road. The DPW will be doing prep work on Back Brook and Lindbergh. Mayor Kneski felt it was important to project future road projects in order to entice NJ Department of Transportation (NJ DOT) funding. Mr. Matheny explained that Engineer O'Neal does keep East Amwell advised on grant opportunities, and he noted recent changes in NJ DOT administration contacts. A recommendation was made to have the Administrator check with the Engineer and Acting DPW Superintendent for possible projects this year.
The Clerk mentioned that there would have to be some funding in the budget to pay for mandatory statutory and cautionary signs on the roads earmarked in Ordinance 08-12. Some governing body members believed that the roads were already marked, and there may not need to be much funding in the budget to cover additional signs.
Mrs. Luhrs explained that usually NJ DOT grant applications are made in the fall; there was additional funding available in 2008 to allow for the ordinance for the Lindbergh Road repair. Going forth, however, if a grant is awarded at the end of the year, funding for work would be in the subsequent year's budget. Mrs. Luhrs also noted that there was a road projects list from last year with some projects, e.g., Runyon Mill Road and others. Mayor Kneski emphasized the need for a five year capital plan for planning, including having a cost analysis on each project; it would be helpful also in answering constituent's inquiries. Mr. Matheny agreed that there was a road project list from 2008, which may identity some capital projects.
Open Space capital projects were noted, including a request for $250,000 in easement costs and $31,000 in soft costs. There was also a request last year for a two year commitment from the Recreation Committee for field work at the municipal fields; no money was placed in last year's budget, and Mrs. Luhrs added $30,000 to the current budget.
Last year there was $40,000 put in the capital budget from the Open Space Tax for Clawson Park maintenance, and only $20,000 was used; Mrs. Luhrs put $30,000 in this line for 2009. The Administrator asked for $10,000 in the capital budget for the card access system, and $3,000 for a scanner and miscellaneous office equipment, as needed. Mrs. Luhrs had $33,000 in capital improvement fund costs, including $20,000 for the steel dump body. The plow will be added to the budget with an estimated cost of $10,000, and the existing hydraulics will handle the plow.
On a question from the governing body, Mrs. Luhrs and Mr. Matheny explained that there was still $18,000 in an ordinance to make the necessary repairs to the ramp outside the municipal building.
Mrs. Luhrs did not have a figure for COAH. Mr. Tatsch mentioned that Municipal Housing Liaison Robbins was looking into acquiring the Easter Seals house, i.e. grants or other options. Discussion took place on proceeding with the acquisition to lock into the five COAH credits. Mr. Tatsch reminded the governing body that funding for COAH must come from the developers' fees.
Mrs. Luhrs asked about the Meszaros property expenses. Mr. Tatsch explained the current Remedial Investigation by ERM on the property, with the intent that the municipality would be responsible for 25% of the clean up costs if any contamination is discovered. He did not believe that this would occur this year. After the investigation, ERM would have to submit a proposal for the clean up, and it would have to be approved by the NJ DEP. Mr. Tatsch recommended leaving the line open this year.
Under Road projects, the Administrator will review last year's list and discuss it with the DPW.
Mayor Kneski mentioned the energy audit being requested by the municipality, and depending on the items identified in the audit, the municipality is required to commit a certain percentage of funding for improvements. While it was unclear what would be identified, he thought it would be appropriate to put a figure in this year's budget.
Mayor Kneski also asked whether the governing body wanted to put any funding in the budget for solar power, noting that it could be done in phases. He mentioned the report done by Lyle Rawlings indicating the potential savings over the course of years to the municipality. Mr. Martin commented that it would be premature to do so this year since there are anticipated changes in the process, including having the utility companies becoming involved in production and distribution and changes in credits. Mr. Tatsch commented on the cost for an installation of a 47 kilowatt system at an estimated cost of $377,849 with a revenue production of $29,926.
Mrs. Luhrs referenced the individual department budgets and the background information for each budget request. She stated that she was able to reach a flat tax based on budget requests as outlined. However, the revenues are still unknown (e.g., CMPTRA); she asked if the Township Committee wanted to cut appropriations. She also commented on the tax appeal numbers and the fact that the current figures did not include a salary increase for the employees. Mr. Martin asked if it was possible to cut deeper into the budget; Mrs. Luhrs explained that the department line items were very lean. She stated that the governing body could go into the capital improvement fund. She noted that there should not be a CAP problem nor a problem with the 4% CAP. She recommended that the governing body review the requested budgets to determine whether they wanted to add or delete any figures.
Mr. Matheny asked the governing body for their direction on the barn at Clawson Park. There is currently an ordinance for $57,000 for the barn, which has not been utilized. Background included the following: the barn will be used for storage of the new tractor specifically purchased for parks and recreation; architect Terry Golda was authorized to produce drawings since the barn must meet NJ State Historic Preservation Office (SHPO) specifications; the project will have to go out for bid; quotes were received in excess of the amount funded in the ordinance; Mr. Matheny contacted a barn builder for revision standards to make the costs more economical, e.g., the original design called for a steel roof and hardy-plank for low maintenance; the specs include overhangs on the roof for weather protection, a second floor, windows, etc. Some discussion took place about the importance of internal estimates to make sure that the bids do not exceed the amount of funding in the ordinance.
Further history of the barn included the following: Ilona English proposed the original idea for the barn in 2005; the size of the barn is in excess of 20' x 40'; pole barns may be erected for well below the $57,000, but SHPO must approve the plans and the intent was to achieve an historic look; plans to make the roof heavy enough to support solar panels was also an item of consideration at the conceptual stage; keeping the $57,000 in the budget and "paring down" the design was suggested.
The $57,000 for the barn will be added to the capital budget as an approved fund, and $10,000 will be added for the dump truck plow.
Discussion returned to the energy audit being requested from independent auditors. Mayor Kneski explained the process as done in Princeton Township; the Clerk asked if it was possible to get a copy of Princeton Township's report to determine their findings and potential costs. It was unclear what the results of the Township audit would discover and how much funding would be necessary to make the adjustments, e.g., new windows, insulate the building, etc. The list of municipal properties, as provided by the Administrator and the Clerk, were reviewed. Grant funding would be available to pay up to 75% of the costs, with an additional 25% being funded based upon installed measures recommended by the audit.
Mrs. Luhrs asked the governing body if they could afford to fund both the audit associated costs and the solar energy system. There was a consensus to proceed with the energy audit costs rather than both the audit and solar items; a recommendation was made to put $8,000 in the budget for the energy audit costs, if results are determined by the end of the year. A copy of the information will be provided to the Treasurer for her records. Mayor Kneski explained the audit process, including a site visit which would be performed by the selected independent auditor for Township owned properties.”
The Clerk reminded the governing body that the trailer on the municipal property is actually owned by the Township but being occupied by the Little League. Discussion took place on the results of the electric bill audit done by Mr. Rawlings, showing a steady use of electricity on the site. Some discussion was held on how the trailer is used, including heating and electricity usage, trailer occupancy, etc. Mr. Tatsch commented on taxpayer money being used to pay for electric service for the trailer. History of the trailer's use was provided, i.e., it was originally installed as a Hunterdon County annex library and purchased by the Township for a nominal fee in 2002; OEM originally wanted to use the property but decided against it for security reasons, and the governing body allowed the League to use it rather than use the municipal building for sports registration, etc. Committee members noted that since there is now an easily accessible meeting room in the municipal building, the league could hold their registration here. The suggestion of passing the electric bill along to the league was also mentioned.
The results of the electricity audit were reviewed, and the Clerk noted that in the past couple of years, new parking lot lighting was installed and it was unclear on which meter these lights were billed. Mr. Tatsch explained that there would be a separate $65 bill for these lights and maintenance of the lights would be taken care of by the electric company.
A recommendation was made to have the Clerk draft a letter to the Little League asking them how they were using the trailer and what electric use they were generating to cause the amount of the monthly electric bills. The Mayor will review the letter before it is sent.
Further discussion took place on the Clawson Park barn. Mayor Kneski suggested that the bids be prepared with energy efficiencies built into the specs. Mr. Matheny said that the building would be unheated and only require electricity and lights. Mr. Tatsch was concerned in light of the recent vandalism; he questioned building the barn in the isolated area at this time. Mr. Martin agreed that holding off on building this year was a good idea.
Mr. Matheny again noted that the specs could be revised as a cost effective measure; however storing the park mower on site would be an appropriate use of the building. Mayor Kneski agreed that the recent vandalism at the park was a concern; once the house is renovated, that might be a deterrent to vandals. The possibility of installing a security or surveillance system at the house and barn was mentioned. Mr. Matheny also noted that the Township Committee might want to consider leaving the park open (not locking the gates); having the locked gates precludes the police from patrolling after dark.
All were in agreement that the barn would not be built this year, but perhaps in 2010. The possibility of canceling the ordinance and putting the $57,000 back into the Open Space Trust Fund was mentioned, but not pursued. It was then suggested that the ordinance could either be cancelled or used at a later date. Mr. Tatsch suggested taking the $57,000 earmarked for the barn and using to make repairs on the Clawson House. Mayor Kneski felt that investing the money might have an effect on project scope later, and he recommended doing all the renovations at one time.
Mrs. Luhrs explained that there are two ordinances that might be cancelled, i.e., $139,000 for the dump truck and $18,000 for the road-side mower. The recommendation for the road-side mower came from the previous DPW Superintendent and may not be a viable option. At the end of last year the Township Committee made decision to modify the existing dump truck with a new body and plow, and the Treasurer was authorized to cancel both ordinances.
Mrs. Luhrs also mentioned that there is over $14,000 in an existing ordinance for Clawson Park for payment to the builder. Mr. Matheny provided details on contacting the Comptroller of the company about deficiencies at the park, including a faulty ice skating rink. Attorney Cushing is involved in the process, i.e., whether the Township has to pay the contractor, whether the work will be done, etc. All agreed that the ordinance could not be cancelled.
DPW Positions and Discussion on Litigation: Committee members agreed that Mrs. Luhrs would be able to attend the full executive session.
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RESOLUTION # 27-08
WHEREAS, the Open Public Meetings Act, P.L. 1975, Chapter 231 permits the exclusion of the public from a meeting in certain circumstances; and
WHEREAS, East Amwell Township Committee is of the opinion that circumstances presently exist; and
WHEREAS, the governing body of the Township of East Amwell wishes to discuss litigation and to discuss hiring for the DPW positions; and
WHEREAS, minutes will be kept and once the matter involving the confidentiality of the above no longer requires that confidentiality, then minutes can be made public;
NOW, THEREFORE, BE IT RESOLVED that the public be excluded from this meeting.
By Order of the Township Committee,
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Peter Kneski, Mayor
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Motion by Ms. Lenox, seconded by Mrs. Cregar, and carried unanimously to approve the resolution.
The executive session began at 9:00 p.m.
The regular meeting resumed at 9:20 p.m.
2009 Budget, Continued:
Mayor Kneski previously spoke with Engineer O'Neal on the cost for the five-year capital plan, and the anticipated cost is $4,000. Additionally, the mandatory participation in the Water Quality Management Plan (WQMP) with the County is in its first phase. Engineer O'Neal suggests that $5,000 be placed in the budget for this line item; this is a separate line item from Stormwater Management. There will be a meeting of the WQMP team on January 21, and further information may be available after that time. Mr. Matheny asked if the amounts proposed by the engineer were "not to exceed numbers" or a flat fee; Mayor Kneski believed that they were "not to exceed" numbers.
Mr. Martin noted that Mrs. Luhrs provided the sheets showing a flat tax; these figures did not include a salary increase for employees.
Mrs. Luhrs asked Ms. Lenox for the Agricultural Advisory Budget, which was not yet received. The Agricultural Advisory Committee discussed the budget at their December meeting. Ms. Lenox recommended increasing the secretary's salary line to $700 and decreasing the Other Expenses line to $200.
The Ambulance Corps budget was included in the figures discussed tonight, i.e., the regular contribution for operating and capital and nothing for the building fund campaign.
Committee members discussed the next meeting. Mrs. Luhrs stated that Auditor Case will be in at the end of the month, and revenue figures should be finalized; she believes that they will not go any lower. She noted that if CMPTRA aid is cut, $106,000 would be cut from the budget to get to the same tax rate. She suggested that the Township Committee might want to look at individual budgets to see if they could be adjusted; however, these budgets do not have "a lot of fat." Mrs. Luhrs also stated that she could take $100,000 from the capital improvement fund; she explained that capital funding cannot be used for operating expenses. Mrs. Luhrs will also cancel the $139,000 dump truck and $18,000 road-side mower ordinances.
Committee members noted that liaisons have attended Board meetings on the budget discussions and are familiar with requests. Mayor Kneski, Mr. Martin, and Mrs. Luhrs did attend the Recreation Committee meeting to discuss their budget, and it was cut by $400. Mayor Kneski felt that it was not necessary to invite staff to the Saturday, January 31, meeting. If there were any questions at that time, individuals would be invited, as needed, to future budget meetings.
Mrs. Luhrs recapped changes to the budget, including adding $4,000 for the 5-year capital plan, $5,000 for the WQMP plan, and $8,000 for the Energy Audit for a total of $17,000.
Mr. Tatsch asked Mrs. Luhrs to provide information on percentage costs if salary increases were given to the employees. Mrs. Luhrs explained that the base salary for 2008 was $741,629. She provided the following table: 4% increase would be a $30,000 increase; 3.5% - $26,000; 3% - $22,000; 2.5% - $18,500; 2% - 14,800; 1.5% - $11,000; 1% - $7,500. Mr. Martin referenced a website for Hewitt Associates, a Human Resource company, which showed that a majority of the private sector would be offering less than 3% increases to their employees, i.e., 2.25 - 2.5%; he further noted that while base salaries were not increasing, employee bonuses were still being considered.
Some discussion was given to bonuses or stipends as a possibility; it was noted that in past years stipends were given to Mrs. Cregar, Mrs. Luhrs, and Mr. Marion for extra work performed. Committee members felt that this might be a way to compensate employees.
A motion was made by Mr. Tatsch, seconded by Ms. Lenox, and carried unanimously to open the meeting to the public. There being no members of the public, motion was made by Mrs. Cregar, seconded by Mr. Martin, and carried unanimously to close to the public.
There being no further business, a motion was made by Mrs. Cregar, seconded by Mr. Tatsch, and it was carried unanimously to adjourn the meeting at 9:40 p.m.
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Teresa R. Stahl, RMC/CMC
Municipal Clerk