Council Meeting - Budget

President Michael Birkner called the meeting to order at 4:00 PM with the following Councilors present: Vice President Jacob Schindel, Mr. John Butterfield, 

Mrs. Susan Naugle, Mr. Graham Weaver, Ms. Rebecca Brown, Mr. Kyle Leinbach,

Mr. Robert Krummerich, Mr. Scot Pitzer and Mayor William Troxell. Staff present included: Borough Manager Charles Gable, Borough Secretary Sara Stull, Solicitor Harold Eastman, Chief Joseph Dougherty, Finance Director Nicolette James, Planning Director Scott Dellett and Public Works Director Dan Hilliard.

Others present included: Patti Lawson, Board Chair, Main Street Gettysburg; Chris Glatfelter, Executive Director, Adams County Arts Council; Vickie Huffaker, Executive Director, Adams County Office of Aging; Ann Birely and Joan Stremmel, Adams County SPCA; Deb Adamik, CEO, Main Street Gettysburg; Emmett Patterson, Board Member, Main Street Gettysburg; Wesley Heyser, 226 North Stratton Street; Philip Goble Sr., 132 East Middle Street; Roberta Cooke, 1040 Long Lane; Rodger Goodacre, 105 East Broadway; Ted Streeter, 111 East Middle Street; Glenn Blocher, 51 Hanover Street; Rebecca Weikert, 259 North Fourth Street; Margaret Gustafson, 429 Carlisle Street; James Fleet, 122 East Middle Street; Walton Davis, 301 Ridge Avenue; Steve Hemler, 535 York Street; Mike Shestok, 264 Baltimore Street; Jim Hale representing the Gettysburg Times and Jenni Wentz representing the Evening Sun.

President Birkner opened the meeting and announced that the Special Council meeting is for the presentation and discussion of the proposed 2015 budget. The final version of the budget will be presented to Borough Council at the December Council meeting for adoption.

Public Comment:

Walton Davis expressed his concern regarding the funding of Non-Profit Organizations; and suggested that Destination Gettysburg, that receives over a million dollars a year towards taxation, and the Gettysburg Chamber of Commerce, which is a similar organization, are the agencies that should bear the responsibility and not the taxpayers.

Philip Goble also expressed concern regarding the funding of Non-Profit Organizations, and in particular Borough Council giving an appropriation to Main Street Gettysburg. He pointed out that a few years ago Main Street said that if Council gave them money, then they would become self-supporting within a certain time line. Mr. Goble said that they are still not self supporting and that they should secure their own funding through fundraising and not be dependant on tax payers' money. He also pointed out his concern that the pole barn to store equipment for the Public Works Department was eliminated from the budget in order to fund these organizations. He said that the tax payers paid for this equipment and it should be taken care of properly. Mr. Goble said that Council needs to consider some of these issues and make the right decisions for the tax payers. He feels that council should work together and not work against each other, stating that "there are too many egos banging heads." 

Mike Shestok noted that at the last meeting he spoke about teamwork between Council and staff members. He said that he is sincere about protecting the new Borough Manager and Finance Director, and that Council should listen to the Manager's recommendations. He also expressed his concern regarding the Non-Profit Organizations that didn't get the opportunity to speak at the last Council meeting. Council is privy to the applications that they completed but feels that the Non-Profit Organizations should have a chance to present themselves. 

President Birkner noted that the Non-Profit Organizations will have the opportunity to speak tonight if they wish.

Peggy Gustafson said that she has no complaints about the taxes she pays, and is generally satisfied with the services that the Borough provides. She said that her concern is for Council to consider particular areas that are prime importance and should be the focus of Councils' mission. They are: Leadership of Borough Departments, Safety and Police Enforcement, Public Works Department and Rainy Day Funds. Mrs. Gustafson said that in order for the police and public works to do their jobs as expected by residents, Council will need to make sure that adequate man power and equipment is available. She pointed out that the pole building, which is important to keep the equipment stored and protected from the weather, should not be removed from the budget. Mrs. Gustafson also said that it's important to maintain the emergency fund, and that Council should add to this fund annually to provide adequately for unexpected needs. 

Mrs. Gustafson went on to say that after Council considers these prime issues, then they should consider the needs of the Non-Profit Organizations because they do an admirable job. She noted however that they do receive the benefit of forgiveness through their property taxes. Mrs. Gustafson suggested that Council consider the actual percentage of residents in the Borough who are members of the Non-Profits, the percentage of Borough residents who receive benefits from their services, and the actual funds that the Borough receives from each agency. She said that they are important agencies, but the tax payers' needs should be considered first.

Tom McKenney said that he is opposed to Non-Profit Organizations receiving funds, and said that it isn't Council's money to give away. He pointed out that citizens can donate money to organizations of their choosing. Mr. McKenney said that, if Council was to distribute funding, then the SPCA would be the only agency because they provide service benefits to taxpayers and "not just the businesses on Steinwehr Avenue", referring to Main Street Gettysburg's economic development. 

Mr. McKenney went on to say that he feels these budget problems will be an issue again next year. He said that Council should look at solutions for additional sources of revenue, such as taxing businesses that are using public property. He also asked Council to consider approaching Gettysburg High School to see if the vo-tech class would be interested in helping to build a pole building for the Public Works Department as a cost savings. Mr. McKenney also said that he heard the Borough may again use parking tokens, which are good for the businesses and that he would promote this. 

Steve Hemler asked Council what their opinion is of what Main Street does for the average taxpayer. 

President Birkner said that this is not appropriate at this time. He said that Council will have the opportunity to discuss the Non-Profits and make a decision individually if they wish to fund any of the Non-Profits later on the agenda.

Wesley Heyser said that he is in favor of the SPCA and also of Freedom Transit to receive funding appropriations. He pointed out that they both provide a viable service for the Borough. Mr. Heyser noted that residents use the bus service, and said that the Civic Research Alliance Study, provided to the Borough, indicated that one out of eight residents do not own a vehicle. He also said that the local contributions will secure state and federal funding to the transit authority, so it's important that the Borough contribute to them.

Non-Profit Organization Presentations:

Joan Stremmel, SPCA, presented Council with a packet of information and thanked them for their support in the past. She said that they provide a safe shelter for animals and also offer clinics to the community. Mrs. Stremmel said that they are in the process of renovating the building which is in dire need, and will also be adding an expansion to the building to provide a better service.

Vickie Huffaker, Adams County Office for Aging, stated that state and federal funding does not meet all the needs of the residents. She said that they are not asking for a handout but support from Council. Mrs. Huffaker pointed out that they provide services to residents over sixty years of age to include adult day care, transportation, and home- delivered meals, personal care, senior center etc. She said that they are open for other suggestions, and noted that they are looking for space for the senior center. Mrs. Huffaker thanked Council for their support, and the members that have spoken to her personally about the good job that their agency provides.

President Birkner said that each agency is doing a great job. There are differences of opinions about what the Borough of Gettysburg should do to support these agencies.

John Butterfield asked how many Borough residents they support. Mrs. Huffaker responded that they served 113 Borough residents totaling over $97,000 worth of services. This included adult day care, transportation, home-delivered meals, personal care, senior center and medical equipment loans.

Chris Glatfelter, Adams County Arts Council, thanked Council for their past support with the Star Grant Program noting that this is the seventeenth year. She pointed out to date it has served over 233,000 people and awarded over $197,000.

Patti Lawson, Main Street Board Member, said that Main Street views itself as an economic partner of the Borough with a vision on projects that will enhance the Borough. She said that everyone desires a vibrant community in which to live and work. Main Street demonstrated its return on investments and presented a check recently in the amount of $21,500 towards the Baltimore Street renovations. She thanked Council for their time and for listening to all of the Non-Profits' requests.

Deb Adamik, CEO, Main Street Gettysburg, reported that they recently conducted a survey of the downtown businesses. She said that one of the questions was whether or not they had insurance if they would be sued. Mrs. Adamik said that they all responded yes to having insurance.

Manager Gable presented the draft budget at this time.

Manager Gable reviewed the highlights of the budget. He noted that the previous draft budget did not include certain items, totaling $75,000 that had been removed to create a zero-tax-increase budget. Manager Gable said that by doing this, it would eliminate a notable service reduction to the Borough residents. The following six items are included in this current draft budget: 1) $10,000 added to the Public Works overtime budget which is primarily used for snow removal; 2) $10,000 added back to the part-time employee budget in Public Works, ensuring an additional road crew worker during the summer paving season; 3) $10,000 added to the Police court time budget to ensure no cost overruns if officers are mandated to spend large amounts of time in court defending cases; 4) $15,000 added to the Police overtime budget; 5) $15,000 added to the crosswalk budget, earmarked for Baltimore Street; and 6) $15,000 added back into the roads and alleys budget for winter maintenance repairs.

Manager Gable pointed out that the value of grants to the Borough is significant, and said that the Borough will realize approximately 1.5 million dollars in grant funding in 2015.

Manager Gable said that this budget provides a new bobcat and articulating tractor for the Public Works Department. It also provides for new safety vests and tasers for the Police Department.

Manager Gable also said that this budget will complete a major infrastructure project that has been delayed for many years. He said that a PIB loan will be used to partner with Columbia Gas to do a complete reconstruction of East Middle Street.

Manager Gable said that with a generous grant through DCED and the EIP program, the Borough will make significant improvements to its information technology capabilities. It will include new government software and new parking software.

Manager Gable pointed out that this budget also creates new revenue sources for the Borough. This includes: rental income from Verizon Wireless to rent the tops of certain traffic lights for cell boosters; rental housing inspections will be done in-house; increase parking meter rates to $1.00/hour Borough-wide; increase fees/permits; and elimination of exemptions for admission taxes.

At this time President Birkner asked for a motion and discussion regarding the transfer of $75,000 as outlined by Manager Gable.

Moved Mr. Weaver, seconded Mr. Butterfield to authorize the Finance Director to transfer $75,000 from the Capital Projects Fund to the General Fund for the purpose of balancing the 2015 budget, negating the need for a property tax millage increase in FY 2015. This transfer would reduce the appropriation in line item 18-430-730 in the Capital Projects Fund (the Pole Barn) to $10,000.00, and would fully fund the proposed FY2015 General Fund as presented in the Manager's Budget message, subject to the condition that the Borough must restore $75,000 to the Capital Projects Fund consistent with the recommendation of the Borough Auditor. A roll call vote was taken. YEA: Ms. Brown, Mr. Butterfield, Mr. Krummerich, Mr. Leinbach, Mrs. Naugle, Mr. Schindel, Mr. Weaver and Mr. Birkner. NAY: Mr. Pitzer.

Discussion regarding the pole barn ensued. 

Kyle Leinbach asked how this money got in the Capital Projects Fund. Nicolette James replied it's been in this fund for some time and she believes it was from the sale of the Train Station that was earmarked for capital expenditures. 

Scot Pitzer asked how it was earmarked for a pole barn before the budget was preliminarily approved. Nicolette James responded that when Council tasked staff to prepare the budget, the Public Works Director agreed to give the $58,000 that was allotted for a pole barn so that it could be used towards the loan for the technology equipment. She pointed out that, at that time, Mr. Pitzer, Mr. Leinbach and 

Mr. Krummerich asked that this money be put back into this year's budget for a pole barn. 

Bob Krummerich asked why the pole barn was budgeted at $58,000 last year and this year it is $85,000. Nicolette James said that due to prevailing wages the price increased. 

Kyle Leinbach asked why the transfer of the $58,000 grant match would not need to be paid back. Mrs. James said that it was used for a Capital Project and is not required to be returned. She pointed out that Capital Project Funds cannot be spent on operating expenses in the General Fund, and therefore, would need to be repaid into the Capital Project Fund next year.

John Butterfield noted that there isn't currently a Fund Balance Policy adopted yet, and asked how this would affect transferring funds from one fund to another fund. Manager Gable responded that Council has more latitude now then if the Fund Balance Policy were in place. He said that the purpose of this policy is to set protocol for this type of situation, and that it essentially "ties Council's hands from raiding any particular fund in order to fund another project in another fund." 

Susan Naugle asked if the pole barn could be included in a PIB loan. Nicolette James responded no. 

Solicitor Eastman advised Council that if these funds must be restored to the Capital Projects Funds, then it should be made part of the motion that is currently on the table.

President Birkner asked Mr. Weaver and Mr. Butterfield, who made the motion that is currently on the table, if they were in agreement to revise the motion. They both agreed to the amendment of the motion. The following line will be added to the motion: subject to the condition that the Borough must restore $75,000 to the Capital Projects Fund consistent with the recommendation of the Borough Auditor. 

President Birkner asked for a roll call vote at this time.

Moved Mr. Weaver, seconded Mr. Leinbach to authorize the Borough Secretary to give notice and cause the same to be published that the proposed budget for Fiscal Year 2015 has been prepared and is available for public inspection with the proposed budget providing a total estimate of all funds of annual revenues in the amount of $7,021,861.00 and an estimate of annual expenditures in the amount of $7,015,690.00, which includes the general fund estimated revenues in the amount of $4,347,299.00 and an estimated expenditures in the amount of $4,347,299.00. A roll call vote was taken. YEA: Ms. Brown, Mr. Butterfield, Mr. Leinbach, Mrs. Naugle, Mr. Schindel, Mr. Weaver and Mr. Birkner. NAY: Mr. Krummerich and Mr. Pitzer.

At this time Manager Gable reviewed each line item for the revenues. 

Council members discussed the repercussion of increasing parking meter rates, RRUO and parade fees. Scot Pitzer asked where the Pillow Tax amount was derived from, and asked if the hotel that is closing was taken in to consideration. Manager Gable said that Norris Flowers, Executive Director of Destination Gettysburg, provided the amount. Bob Krummerich asked why the transfer tax for the hotel wasn't included. Manager Gable replied that the sale is not final so he doesn't have an amount.

At this time Manager Gable reviewed each line item for the expenditures. 

Scot Pitzer asked Chief Dougherty if the 50% reduction in overtime is realistic for his budget. Chief Dougherty said that he requested $83,969 which was based upon historic usage, and he also factored in the pay raise based upon the pending police contract. Kyle Leinbach asked if he realistically would use the $83,700 budgeted for part-time police. Chief Dougherty responded that historically they have not used that much. Mr. Leinbach asked if that line item can be transferred to another line within the police budget.

Manager Gable explained that this has been discussed during police negotiations, and that the full-time police want their time off and not be forced to work when they are off or on vacation. He said that this is why he increased the part-time line item to $83,000, and decreased the overtime by 50% so that they can utilize part-time police instead of full time officers. Manager Gable pointed out that the police are still adequately funded even compared to last year, and that the chief can shift line items within his department if needed.

Scot Pitzer asked Dan Hilliard if he is comfortable with his overtime being reduced to $9,000. Nicolette James explained that the overtime was not cut from Public Works but moved into the Parking Department. She pointed out that the majority of the overtime was budgeted for Dave Reese who maintains the parking garage. 

At this time President Birkner asked if members had any comments to make

regarding appropriations to Non-Profits as listed under Community Development.

Scot Pitzer said that he is uncomfortable with making any allocations to any Non-Profits due to the projected six digit deficit this year and the money transferred that must be returned. He noted that there are reductions in core areas of Borough government that he would be more comfortable using this money to fund those areas. Mr. Pitzer also said that now that there is a policy in place to receive applications for funding, it could grow with other agencies submitting applications in the future and could possibly get out of hand.

Bob Krummerich said that he has not changed his position, and has always felt that Council should not hand out tax dollars to organizations.

Bob Krummerich also said that he is skeptical of creating a new position for Code Enforcement. He noted HUD has "clamped down", and that funds may not be used from CDBG funding for this position.

Scott Dellett noted that part of the reason is the necessity of getting the ADA ramps completed. He said that CDBG funds have been dedicated to get this work done.

Kyle Leinbach said that this budget represents a "hard fought compromise and that nobody is truly happy," but "we can all live with this."

President Birkner asked for a roll call vote at this time for the proposed budget.

Moved Mr. Butterfield, seconded Mr. Pitzer to authorize the solicitor to prepare, finalize and publish a proposed ordinance for enactment at the next monthly general business meeting of the Borough Council to be held on December 8, 2014 for the purposes of fixing the real property tax rate for fiscal year 2015 at 3.6203, the occupation tax rate at 30 mills, and the fire protection services appropriations tax rate at 0.2500 mills. Motion carried unanimously.

With no further business to come before Council, moved Mr. Butterfield seconded Mr. Schindel to adjourn the meeting at 5:55 PM.

Respectfully submitted

Sara L. Stull

Borough secretary