Board of Supervisors
Tuesday, November 10 2009
MIDDLETOWN TOWNSHIP
BOARD OF SUPERVISORS
REGULAR MEETING
NOVEMBER 10, 2009
PRESENT:
CHARLES M. THOMPSON, JR., CHAIRPERSON}
ROBERT G. MCMONAGLE, VICE-CHAIRPERSON}
KATHY H. HEUER, SECRETARY} BOARD OF SUPERVISORS
H. GEORGE LEONHAUSER}
JASPER CARO}
RAYMOND STEPNOSKI, TOWNSHIP MANAGER
MICHAEL J. SAVONA, ESQ., TOWNSHIP SOLICITOR
HERBERT C. GERY, P.E., TOWNSHIP ENGINEER
1.CALL TO ORDER, PLEDGE OF ALLEGIANCE, AND ROLL CALL.
Mr. Thompson called the meeting to order at 6:30 p.m. After the pledge of allegiance, Ms. Heuer called roll.All
Supervisors were in attendance.There were also approximately 25 interested citizens in attendance.
2.ANNOUNCEMENTS, CORRESPONDENCE, AWARDS AND REPORTS.
A.NEXT BOARD OF SUPERVISORS MEETING -TUESDAY, NOVEMBER 24, 2009 @ 6:30 P.M.
3.PUBLIC COMMENT.NON-AGENDA ITEMS ONLY.
Michael Schumacher, Towpath Road, Levittown asked for an update on the Bristol-Oxford Valley Road construction
project.Mr. Stepnoski said he is not sure what the holdup is and will check into it and get back to Mr.
Schumacher.Mr. Stepnoski also stated that the person he delegated to put barriers up on Towpath Road for Halloween
neglected to do so and Mr. Stepnoski apologized.
Mr. Schumacher said that several people were almost hit by a car on Halloween night and a police report was filed.Mr.
Schumacher urged the Board to push PennDOT to get the job done as this is an extremely disturbing situation.He did
say that having the police vehicle at the site helps as an obstacle for motorists to go around.
Mr. Leonhauser asked what time of the day is the busiest for cut through traffic.Mr. Schumacher said rush hour
obviously is the busiest time.He has counted 150 cars in one hour from 4:30 p.m. to 5:30 p.m.
Erin Schumacher, Towpath Road, Levittown inquired if it would be possible to use barriers to create an S curve in an
attempt to have motorists slow down.
Mr. Stepnoski said he has gone out to the site and unfortunately there is no intersecting road that would allow any
sort of traffic calming, not the least of which is stop signs are not permitted for traffic calming.He said the
police vehicle would be used to aid in alleviating the problem in this neighborhood.
4.CONSENT AGENDA ITEMS.
A.CONSIDERATION OF AUTHORIZING PAYMENT OF BILL LISTS #10-8 DATED OCTOBER 28, 2009, #11-1 DATED NOVEMBER 2, 2009,
#11-2 AND ADDENDUM DATED NOVEMBER 10, 2009.
B.CONSIDERATION OF APPROVING THE RELEASE OF THE $56,180.00 CASH MAINTENANCE BOND FOR DUNKIN DONUTS RESTAURANT, ROUTE
213 AND S. FLOWERS MILL ROAD.
C.CONSIDERATION OF APPROVING ESCROW RELEASE #5 IN THE AMOUNT OF $15,437.74 TO LAUREL OAKS PRESERVE, LLC.
D.CONSIDERATION OF ENACTING RESOLUTION #09-17R, AUTHORIZING SIGNATURES FOR RDA REIMBURSEMENT OF GRANT MONIES.
E.CONSIDERATION OF ENGAGING FLEISHER FORENSICS WITH REGARD TO VAUGHN COLLABORATIVE.
F.CONSIDERATION OF APPOINTING PAULA MCNALLY TO THE MIDDLETOWN TOWNSHIP DISABLED PERSONS ADVISORY BOARD TERM TO EXPIRE
2011.
ACTION: MS. HEUER MADE A MOTION, SECONDED BY MR. CARO TO APPROVE CONSENT AGENDA ITEMS A THRU
F AS LISTED ABOVE.MOTION CARRIED UNANIMOUSLY.
5.CONSIDERATION OF APPROVING THE LANGHORNE SQUARE SHOPPING CENTER PRELIMINARY PLAN OF LAND DEVELOPMENT, TMP
#22-047-011, LOCATED ON ROUTE 1 AND HIGHLAND PARK WAY IN THE COMMERCIAL ZONING DISTRICT, S/LD #08-09.
Thomas Hecker, Esq., represented the applicant Federal Realty which is the owner of the Langhorne Square Shopping
Center along with Mark Havers, Engineer of Pickering, Corts & Summerson and David Joss, of Federal Realty.The
applicant is requesting approval to add a pad site to the shopping center.The proposed occupant would be T-Mobile in
a free-standing 2,800 square foot building.
Mr. Hecker explained the proposal meets all of the zoning requirements and fits well within the shopping
center.Langhorne Square Shopping Center underwent substantial renovations approximately 15 years ago which resulted
in the Redner's Grocery Store being built.At the time the center was expanded it was somewhat unique what
occurred.Highland Park had experienced a tremendous amount of flooding at that time to the point where some of the
residents had water up to their front doors.The primarily reason for that dealt with the lack of stormwater
management controls.A very large, underground vault detention system was developed which is actually located under
Redner's building.That vault has resulted in a substantial reduction in water leaving the site.
As a result of more strict laws dealing with stormwater management, as properties redeveloped or developed on the
other side of Route 1, such as Lowe's, they were required to implement their own stormwater management systems.As a
result of both the development on the other side of Route 1 and the underground vault detention system Mr. Hecker is
happy to say that what was proposed has worked extremely well over the years.
This particular small building is proposed on existing macadam.This proposed building was taken into account years
ago when the stormwater management system was developed, so there is no new stormwater management proposal in
connection with the proposed building.There is; however, a slight reduction because some landscaping and green area
will be added to the site.Substantial buffering has been installed in the rear of the property where it backs up to
Highland Park and 15 years later those 6 foot tall pine trees are now 30 feet tall and full and provides a good
screening against the residential area.The proposed building is at the front of the center by Route 1.
Mr. Caro asked if there will be a reduction in the parking spaces.Mr. Hecker said there is a slight reduction of 4 or
5 spaces.
Ms. Heuer said when the Bucks County Planning Commission reviewed this in November 2008 it was a proposed fast food
restaurant.Ms. Heuer asked if the fact that they haven't reviewed it as a retail store will make any difference in
the review letter from the Bucks County Planning Commission.Mr. Hecker said the Bucks County Planning Commission has
reviewed the plan and there is a letter dated September 17, 2009.The proposed pad is 200 square feet less in size and
the traffic impact for a retail building would be significantly less than a fast food restaurant.
Mr. Thompson inquired if the proposed building is a modular building and is this the type of building that can be
taken down should T-Mobile move out.Mr. Joss explained that the proposed building is not specific to T-Mobile and
could be used for another use if at such point in time T-Mobile leaves. Mr. Joss said Federal Realty would endeavor
to fill the building as it is not in their best interest to have a vacant building either.
Mr. Stepnoski asked if the rear of the shopping center has signs stating that large trucks may not leave their
engines idling as the Township has received complaints from residents of Highland Park.Mr. Joss said he is not sure
if there are signs posted, but will look into it and make sure that they are installed.He will also advise the
security company for Langhorne Square to step up their efforts and make sure that tractor trailers are not left
idling.
Mr. Savona identified the review letter dated October 1, 2009 from Mr. Gery, Township Engineer that lists the
conditions of approval.Mr. Hecker advised that there are no issues in the letter that are not "will comply" items.Mr.
Hecker said there is only one waiver requested and that is curbing and sidewalks.The ordinance reads that sidewalks
should be installed around the street frontages.This was an issue that was addressed when the Shopping Center
expansion was done with Redner's.At that time it was decided to not require sidewalks around the perimeter of the
center particularly along Route 1 in an effort to keep pedestrians away from Route 1.The proposed plan has sidewalks
around the building so the waiver request only pertains to the street perimeters.
Ms. Heuer said that historically the Board has been requesting a fee in lieu of sidewalks and asked the Board if they
feel it is necessary at this time.Mr. Thompson asked for a consensus of the Board with regard to this issue.Mr.
McMonagle and Mr. Caro agreed with the fee in lieu of sidewalks.Mr. Leonhauser disagreed with collecting a fee in
lieu of sidewalks.Ms. Heuer said the Board recently requested a fee in lieu of sidewalks on another development and
should be consistent.Mr. Thompson agreed with Ms. Heuer.
Mr. Savona said at the last meeting the Board agreed to accept a fixed donation to the Township's Park &
Recreation Fund in lieu of doing the calculation and would also be appropriate at this time.Mr. Savona said the
traditional number that is used for calculating the fee in lieu of sidewalks is $25.00 per linear foot which would be
$3,750.00 for this development.
Mr. McMonagle said his position is that two weeks ago the Board made a mistake by cutting a deal with a development
project that shorted the Township's Park & Recreation Fund $7,500.00 and he would be in support of keeping with
the ordinance and charging for the linear frontage fee in lieu of at Mr. Savona's calculation of $3,750.00.Ms. Heuer
stated that is a bit high.Mr. Leonhauser believes that the Board should go with the $2,500.00 like before if they are
going to charge anything.
Mr. McMonagle said the problem that he sees is that the Board is setting a precedent and it is a mistake and a bad
move two weeks ago to give up $7,500.00 that is required in the ordinance.Mr. Hecker said if there is a consensus of
the Board to have the applicant pay the $3,750.00 fee in lieu of sidewalks he will do that.After discussion it was
agreed by four of the Board members to accept the $3,750.00 fee in lieu of sidewalks.
Mr. Savona clarified that the waiver would be from SALDO 509 requiring sidewalk along the street frontage in
consideration of a fee in lieu $3,750.00 as agreed by the applicant and the consensus of the Board.
Mr. Savona said that the Township Planning Commission is recommending preliminary/final plan approval.Mr. Savona
asked Mr. Hecker if his client is in agreement with the calculated Traffic Impact Fee.Mr. Savona said the applicant
has agreed to comply with all of the comments of the Township Engineer in the review letter dated October 1, 2009 as
well as to comply with the Traffic Impact Fee requirements as determined by the Traffic Engineer.
ACTION:MR. MCMONAGLE MADE A MOTION, SECONDED BY MR. CARO TO GRANT PRELIMINARY AND FINAL LAND DEVELOPMENT APPROVAL FOR
THE LANGHORNE SQUARE SHOPPING CENTER EXPANSION, TMP #22-047-011 LOCATED AT ROUTE 1 AND HIGHLAND PARK WAY IN THE
COMMERCIAL ZONING DISTRICT, S/LD #08-09, SUBJECT TO ALL TERMS AND CONDITIONS IN THE TOWNSHIP ENGINEER'S LETTER DATED
OCTOBER 1, 2009 SPECIFICALLY PART 1, FIFTEEN (15) ITEMS REFERENCING THE TOWNSHIP'S SALDO, PART 2, FOUR (4) ITEMS
REFERENCING THE TOWNSHIP'S ZONING ORDINANCE AND PART 3, RECOMMENDATIONS BY THE TOWNSHIP ENGINEER.FURTHER THAT THE
PROPOSED PROJECT BE INSTALLED SUBJECT TO ALL OTHER TOWNSHIP RULES AND REGULATIONS NOT HERETOFORE MENTIONED AND THE
ACCEPTANCE OF A FEE IN LIEU OF SIDEWALKS IN THE AMOUNT OF AMOUNT OF $3,750.00.MOTION CARRIED UNANIMOUSLY.
6.CONSIDERATION OF ACCEPTING THE REQUEST FOR EXTENSION FROM THE NESHAMINY SCHOOL DISTRICT UNTIL DECEMBER 12, 2009.
Mr. Stepnoski advised that the Neshaminy School District meets the same night as the Middletown Township Board of
Supervisors and they are requesting to be moved to the Board's first meeting in December.
ACTION:MR. CARO MADE A MOTION, SECONDED BY MR. MCMONAGLE TO ACCEPT THE REQUEST FOR EXTENSION FROM THE NESHAMINY
SCHOOL DISTRICT UNTIL DECEMBER 12, 2009.MOTION CARRIED UNANIMOUSLY.
7.OTHER BUSINESS.
Mr. Thompson advised that after Other Business the meeting will be adjourned and a presentation will be made on the
Preliminary Budget.The meeting will be televised and everyone is invited to stay for this presentation.
Mr. Leonhauser asked Acting Public Safety Director McGinty about the status of the Woods Services donation.Acting
Director McGinty advised that it has not all been spent.He has allocated approximately $10,000.00 for the testing
process for promotions for three positions and there have been several minor expenditures.
Mr. Leonhauser asked Mr. Stepnoski if these funds are not used do they go into the General Fund.Mr. Stepnoski said
there is no depository or line item for a donation to the Police Department.The funds are an expenditure associated
with the police.
Mr. Leonhauser suggested that since there are funds remaining directed toward the Police Department that have not
been allocated perhaps they could be used on the Twin Oaks problem.Perhaps there could be a detail to keep vehicles
from going through this development as a cut through.Acting Director McGinty asked if there were any restrictions on
the use of the funds, i.e., equipment.Mr. Stepnoski said he will check with Dr. Griffiths of Woods Services.
Acting Director McGinty said he does not foresee Mr. Leonhauser's suggestion being a problem. There were some other
items that he was considering, i.e., tasers.He advised that he is awaiting a response on a state grant, and the JAG
grant and from that grant there are computers that may be purchased.
Mr. McMonagle asked if the grants that Acting Director McGinty is speaking of require matching funds.Acting Director
McGinty said they do not and are strictly for equipment.The grants required a list of equipment and there are 12 or
13 municipalities involved with Bristol Township the lead applicant.
Mr. Leonhauser said that some of the funds have been spent toward testing for promotions.He understands that there is
testing for a sergeant, lieutenant and detective position.Mr. Leonhauser asked if it wouldn't be more prudent since
the Department is undermanned at this point to wait for a replacement of officers prior to actively going into a
promotion process.
Acting Director McGinty said the lieutenant's position needs to be filled and in order to do that there must be
testing done.At the present time there is an acting lieutenant which has been replaced with an acting sergeant.The
acting positions were set up to go to the end of January and there must be a standing list as required by policy and
procedure with any promotions coming from that list.This list would be good for two (2) years and any promotions
could be made from the list for the next two (2) years.
Mr. Leonhauser asked Acting Director McGinty if he agrees that the department is short handed as a couple of
positions from the past year have not be replaced.Acting Director McGinty stated that the department is down two (2)
officers on the total Department allocation and one officer is still deployed and one officer recently returned from
Iraq.There are two (2) long term IOD officers.
Acting Director McGinty explained that the detective test will be given on Wednesday, December 2, 2009 and the
lieutenant and sergeant tests will be on December 9, 2009 with the oral review board.The list should be established
by mid December and it would be mid January before the detective list is established.
Mr. Stepnoski advised that he has received notification from the state that funding from MOPEC is being cut back for
education.
Mr. McMonagle advised that he has been trying to find alternate uses for the Public Hall when it is not in use by the
Board of Supervisors or the Zoning Hearing Board. A performance by a comedy improv troupe called "Women with Class"
are requesting the use of the Public Hall on Saturday, November 28, 2009.Mr. McMonagle said he has seen this show and
the content and material is fine and is family oriented and most of the members of the troupe are Middletown
residents or Neshaminy High School grads.It was the consensus of the Board to allow the use of the Public Hall as
requested by Mr. McMonagle.
Mr. McMonagle said with regard to the recent election, the largest issue that received attention by the local
newspaper and possibly what the public acted upon was the discussion between a Public Safety Director versus a Chief
of Police.Mr. McMonagle is motioning to repeal the 2008 ordinance establishing the office of Director of Public
Safety and by abolishing that ordinance the position of Police Chief would be reestablished in Middletown Township.
Mr. Savona advised that the proposed ordinance would require seven (7) days advertisement under the Township Code and
could be on the Board's next agenda.
ACTION:MR. MCMONAGLE MADE A MOTION, SECONDED BY MS. HEUER TO AUTHORIZE THE SOLICITOR TO PREPARE AND ADVERTISE AN
ORDINANCE REPEALING THE 2008 ORDINANCE ESTABLISHING THE OFFICE OF DIRECTOR OF PUBLIC SAFETY AND REESTABLISHING THE
POSITION OF CHIEF OF POLICE.
Mr. Leonhauser asked how long the ordinance would have to be advertised.Mr. Savona stated that it would be seven (7)
days as stated in Section 66601 of the Township Second Class Township Code that requires for general ordinances of
the Township that a notice be published in a newspaper of general circulation not more than thirty (30) days and not
less than seven (7) days prior to the date on which the Board wishes to act on the ordinance.
Mr. Leonhauser assumes that it is Mr. McMonagle's idea also to have the position of chief of police advertised so the
Board can receive resumes from different qualified people in the area or out of the area regarding that for a
selection process.
Mr. McMonagle said given the experience that the Board had previously with that, he doesn't know if that necessarily
is going to do anything for the Township.Further a lot of the discussion around establishing the position of Public
Safety Director was that at some point the position could morph into a Police Chief and it was used as some incentive
to attract applicants.As it turned out the application and interview process didn't go very well, mostly in Mr.
McMonagle's opinion because of interference locally and the idea that people felt that their positions were being
compromised by the release of information to certain individuals.He said he is not sure that is a road he wants to
travel again.
Mr. Leonhauser said a better quality of applicant would be received for the Chief of Police position because that
person would be running the Police Department without any political interference and they will have tenure to be able
to run the department as they see fit like a Police Department.Mr. Leonhauser believes it to be important to
advertise for the Police Chief position to get the best possible applicant for Middletown Township.Mr. Leonhauser
hopes that it is not the meaning of Mr. McMonagle to attempt to select or appoint a candidate without any background
or applications with regard to this Board because this Board is over at the end of December and a new Board will come
in.
Mr. McMonagle said that he believes the best applicant for the position, and it is just his personal opinion, is
already in the position of "Acting" Public Safety Director.He has not heard any challenges to his job performance,
record, and 30 plus years on the force or any other discussion about how he is doing the job.As Mr. McMonagle stated
when the position was originally created for the Public Safety Director, one of the things that was touted to the
applicants was that there would be a good chance it could morph into a Chief of Police.
Mr. McMonagle said approximately 28 resumes were received for the position of Public Safety Director.After review of
the paperwork it was reduced to 12 and ultimately there were 8 to 10 interviewees and that is when the process went
off the rails.Mr. McMonagle is comfortable with the person that has the position at the present time and he sees no
need to replay the circus that was the application and interview process for the position about a year ago.
Mr. Leonhauser said if Mr. McMonagle recalls he passed over the other Lieutenant from this police department who was
second in points on the list for public safety director.He said that someone else was appointed who actually didn't
have the qualifications that Mr. McMonagle submitted for that position.Mr. Leonhauser disagrees and believes it to be
a travesty for the Board, a "Lame Duck" Board to make a very important decision like this in regard to appointing a
chief.He believes the only fair way to do it would be to have an open application for that position and that would
benefit the Township and the residents of Middletown Township.
Mr. McMonagle said that while he agrees that it would be a travesty to take any other route to fill this important
position he disagrees with Mr. Leonhauser's assessment of the point totals and certainly all of the documentation is
available, but without getting too specific about applicants and interviews, etc., it was the consensus of those
interviewing the majority that the person in question did not measure up to the other applicants several of whom were
captains from Philadelphia.Mr. McMonagle said his motion to repeal the 2008 ordinance establishing the position of
Public Safety Director is an attempt to not only avoid the travesty, but to also act in the wishes of the public even
though there were only 11 or 12 percent that participated, but on November 3rd that was one of the key
issues and certainly there was plenty of discussion on that issue at the polling places.
Mr. McMonagle said without getting specific maybe they had different points, ratings, or assessments, as he recalls
he was the one that tabulated and distributed the spreadsheet based on information received back from the people who
conducted the interviews, certainly he would question that if the person Mr. Leonhauser is speaking of rated so
highly why he would have been rejected by 6 to 8 surrounding municipalities within the last year and a half.
Mr. Leonhauser said the only reason Mr. McMonagle wants to repeal this Public Safety Director Ordinance is to put a
person in that he wants.It is a "Lame Duck" Board and it should be left up to the incoming Board who will be in power
very shortly and they will go to an open application so there are no favorites and there will be an unbiased account
in picking a chief.
Mr. McMonagle said certainly it is a "Lame Duck" Board that is seated here now; however, to repeat the process just
for show does not serve anyone least of all the residents and the men and women of the Middletown Township Police
Department.Mr. McMonagle said that Mr. Leonhauser in his statements this evening has made it very clear who he wants
to put in the position and to cast dispersions at some other mode or method of filling the position of Police Chief
is somewhat disingenuous.As Mr. McMonagle stated previously and he will state again his motion to repeal the
ordinance establishing the position of Public Safety Director is to avoid a travesty.
Mr. Leonhauser said that Public Safety Director and Chief of Police were two totally different positions and he will
stand by that.Mr. Leonhauser said that Mr. McMonagle has disparaged the other applicant with his comments and he
doesn't believe he has disparaged Acting Public Safety Director McGinty, he did not meet the requirements of the
Public Safety Director job and that was the education part.He is not disparaging his integrity or anything like that
as Mr. McMonagle is with the other lieutenant.Mr. Leonhauser wants it to be a wide open free from any political
situation where the applications can be received from not only this area, but other areas and we will have the best
candidates available and will judge them on their merit.
Mr. Thompson said the motion on the table is to repeal the ordinance and to re-establish and there is not motion
about who is being appointed.
Mr. Thompson opened this issue up to public comment.
Andy Warren, Shady Brook Drive, said he would be in favor of the motion, but what he is not certain of is once the
Director of Public Safety position is done away with he is under the assumption that a chief of police immediately
comes under the Police Tenure Act of 1949 and that the removal of that position would no longer be by a unanimous
vote of the Board.Mr. Warren implored the Board if they are going to advertise which he thinks is a great idea and go
back to a Chief of Police and if that was an issue in Tuesday's election which he is not so sure of, he would really
ask that this Board on the way out do not hamstring an incoming Board with a decision that they may or may not agree
with as far as a selection or naming.He suggested that the Board not make a confrontational situation exacerbated and
make it more confrontational in the last 4 meetings of the year.
THE MOTION CARRIED BY A VOTE OF 4-1 WITH MR. LEONHAUSER OPPOSING.
Mr. Stepnoski presented a request from Falls Township for expenditure not to exceed $10,000.00 for McMahon and
Associates for the Trenton Road project.There was stormwater work that had to be done to comply with DEP regulations
and BCCD regulations which was over and above what was anticipated.The number for the entire amount of work is
approximately $15,000.00.
ACTION:MR. MCMONAGLE MADE A MOTION, SECONDED BY MS. HEUER TO APPROPRIATE A SUM NOT TO EXCEED $10,000.00 FOR THE
TRENTON ROAD PROJECT TO BE SPLIT 50/50 WITH FALLS TOWNSHIP TO MCMAHON AND ASSOCIATES FOR ENGINEERING.MOTION CARRIED
UNANIMOUSLY.
8.PRELIMINARY BUDGET PRESENTATION.
The Board adjourned the public meeting and moved to the presentation of the preliminary budget.
9.ADJOURNMENT.
ACTION:MR. MCMONAGLE MADE A MOTION, SECONDED BY MS. HEUER TO ADJOURN THE PUBLIC MEETING OF THE MIDDLETOWN TOWNSHIP
BOARD OF SUPERVISORS.MOTION CARRIED UNANIMOUSLY.
BUDGET PRESENTATION
Mr. Stepnoski introduced Dennis Penko, Township Finance Director who has come from the corporate world and is quickly
learning the ways of local government.Mr. Stepnoski gave an overview of where the township is and where we are going
to end up for the end of 2009.There are 20 funds in municipal accounting with the General Fund being the most
common.Most expenses come from the General Fund including the Police Department, roads, etc.The Township also has an
Investment Fund which is $40 million from the sale of the Water & Sewer Systems. There is a Debt Service Fund
which was set up solely for the purpose of bringing in money to pay off bonds.
There are pass-thru funds, such as the Fire Rescue and any bond money is set up in specific funds so that they get
drawn down in the case of a bond, the Township has so many years to spend the funds.In the case of Fire Rescue,
millage is collected from taxpayers and distributed to the various fire companies.Most of the funds in government are
restricted which means the Township cannot take money from one fund and move it to another fund.There may be $1
million sitting in a bond fund, but when a bond ordinance is passed and issue a bond restrictions are set on how the
money can be used.If there is a shortfall in the General Fund, you cannot move the funds from the Bond Fund to cover
the shortfall.
All Department Heads are charged with setting up their expenses for the upcoming year beginning in August.Each
Department Head was directed to decrease their expenses.Mr. Penko met with each Department Head and reviewed the
budgets and begins to put everything into a spreadsheet.
The state of the Township is very difficult in the General Fund.On the revenue side real estate transfer tax is way
down.It is down by $430,000.00 on $950,000.00 that was anticipated.Mercantile Tax is down by $155,000.00, but is on
$1 million or fifteen (15%) percent.The Township was expecting $200,000.00 in interest and received $20,000.00.
Building permits were down with an anticipated budget for 2009 of $400,000.00 and brought in $190,000.00. Fire
permits were off by approximately half.
On the expenditure side, generally municipalities budget over what they expect to spend so they come in under.Mr.
Stepnoski budgeted flat for 2009 and the Township came in essentially flat.Some notable overages are in the highway
fund and that is a problem with vacation time and fringe benefits that should have been allocated to other funds that
weren't.Licenses & Inspections is over and that is mainly due to electrical inspections.There was a cutback in
overtime in the Police Department, but that crept back up and the Police Department budget is over by $111,000.00.
On the Administrative Department and the Finance Department the budget is down by $206,000.00 because it was not
spent for an Assistant Manager position.
Mr. McMonagle asked about the $77,000.00 overspent portion in L & I for electrical inspection fees.He asked if
there is any reason for the surge in electrical inspection fees.Mr. Stepnoski said it may correlate with the
renovations at the Neshaminy High School.Mr. Stepnoski advised that most inspections are contracted out with the
exception of some plumbing that is done by Mr. Peet and some HVAC inspections that are done by Mr. Klitzner.Mr.
McMonagle asked for a ballpark figure on total electrical inspection fees.Mr. Penko to provide Mr. McMonagle with the
electrical inspection fees.
Mr. Stepnoski said 2006 was the last time the Township had revenues over expenditures.In 2007 the budget had a
budgeted spend down of some of the cash reserve from 2006.There is a difference between the revenue and the
expenditure.In Pennsylvania you must have a balanced budget, which means the expenditures and revenues must match.In
2008 there was the same pattern with the Township spending down a shortfall which was the beginning of the downturn
in the economy.Mr. Stepnoski said he put the brakes on some of the expenditures for 2008 so there was not as much of
a shortfall as was projected.
Mr. Stepnoski said that the revenues are down for 2009 by approximately $1 million.There was a planned buy down of
the expenses.There is a serious depletion of reserved funds and are basically at $0 and will require a 1 mill tax
increase to restore the gap in the Reserve Fund.
Looking to 2010 with no expenses keeping everything flat, what can be anticipated?On the expenditure side if the
Township does nothing else and keep the status quo, one of the things is contracts, police contracts, public works
employees, and all of those contracts add up and in general that is a 4 percent increase doing nothing.Benefit costs
are increasing, i.e., health care.A new actuarial study must be completed as they are good for only two (2)
years.Just this afternoon the Township received information on the new actuarial study and GASBY which are general
accounting requirements that have a major hit on the budget and the things that must be reconciled over the next
several years.
On the revenue side, keeping everything absolutely flat, there are a bunch of reassessments that have been
approved.There is a decrease in the millage and the real estate transfer tax is down and then there is a decrease in
mercantile tax.Mr. Stepnoski advised that 2/3 of the budget goes to the Police Department or $9.2 million.The next
largest percentage is Administration, Finance and Board of Supervisors, Solicitor, Data Processing and HR.The next
largest is the Highway Department at $1.2 million.
The interest in the Investment Fund is historically used to offset revenues in the General Fund, Debt Service Fund
and the Parks & Recreation Fund.The Financial Advisory Committee meets monthly and keeps a close watch on the
Investment Fund.A $1.9 million transfer is planned from the Investment fund for 2010 and for the year end of 2010 $42
million is projected for the fund.The $40 million that was placed in the fund is protected by Ordinance.What the
Township does not have is a strategy for growth, but in this economy keeping our head above water is all we can hope
for.
The Debt Service Fund pays off bonds and is receiving Investment Fund money and is also receiving millage and there
is no anticipated increase in millage.We are at $3.4 million paying off bonds annually.There is no tax change to
supplement the Debt Service Fund.
The Parks & Recreation Fund has a $1.2 million budget with no change proposed. The Fire Fund is $1.2 million and
is a pass-thru account with money coming in and distributed to the fire companies.What doesn't go to the fire
companies directly gets transferred to the Apparatus Fund which then builds up for the purchase of trucks.The Rescue
Fund is also an in and out fund and remains flat at $206,000.00.
Department Heads did provide some "desires" with Acting Public Safety Director putting in for eight (8) new police
officers at a cost of $100,000.00 per officer which does not include the cost of start-up such as vehicle, gun,
etc.That would be an increase of 2 mills.A mill would bring in approximately $500,000.00.
Mr. Leonhauser asked if the eight (8) new police officers would include replacement officers.Mr. Stepnoski said it
would be six (6) new police officers and two (2) replacement officers.Mr. Stepnoski advised that if two (2) more
officers were to leave it would not add onto this as they already are included.
Road repaving has been scaled back considerably.The Township does receive Liquid Fuels money from the State although
that is drying up.
Tom Gallagher, Supervisor Elect inquired if there are federal and state grants the Township could apply for that
would pay salaries for three (3) years.Mr. Gallagher inquired if the Township is looking into these grants.Mr.
Stepnoski said there certainly are such programs.If the Township is proposing to hire several new officers that is an
avenue to pursue, but it is temporary relief.The Cop Grants are becoming very competitive and one of the issues is
getting cops into financially depressed areas.The first two positions to be filled would not be eligible for funding
as they are not new positions.The position after that may be eligible for funding.
Mr. Gallagher asked what the budget figure was for the Police budget.Mr. Stepnoski said the budget is $9.1
million.Mr. Gallagher asked if the revenue that comes in to the Township for patrols at Oxford Valley Mall, Sesame
Place, and Brian's Harley Davidson goes into the police budget.Mr. Stepnoski said yes it goes into the Police budget.
Acting Director McGinty said the misconception is that all of the money that is received from the Mall which this
year would be $170,000.00 and the funds from Sesame Place go into the General Fund, but that was netted out every
month into the budget.
Mr. McMonagle said the amounts for those private entities paying for police overtime basically buying security for
certain events and other occasions is invoiced flat to the cost of the Township, that is there is no profit to the
Township, rather it is a sunk cost when they are invoiced.Mr. Stepnoski said that is correct and that it is a true
loaded cost.Every year it is becoming a little bit more difficult for the Mall to support the Police Substation and
the Township tries to work with them.
Mr. Leonhauser said for example if there is a Sesame overtime detail and the officer is on overtime and his rate is
$40.00 for example, doesn't the Township receive more than that amount. Mr. Stepnoski explained that is what loaded
costs are.The cost of the officer plus the cost of benefits which is calculated over the year.The loaded cost is the
real cost of the officer.The officer gets a certain amount and the officer requires a certain amount; there is
longevity component, health care component.The salary itself is not the whole picture.The loaded cost of an officer
is much more.Mr. Penko explained that an officer's base pay is calculated and then all of his benefits are taken into
effect, which would be $70.00 an hour and then a 5% administration fee is added.There is also an overtime rate as
well.
Mr. Caro asked how many police officers $9 million pays for.The current compliment is 54 police officers.Mr. Caro
said if 2 leave there would be 52 and there would be money in the budget for 54 so that money would be used to
replace those that left and then get the additional 8 with the other 2 mills.
Mr. Stepnoski said for example the Police Chief left earlier this year and one would think there are extra funds
available because you are not paying the Chief, except no one looked at the contract and the Chief had a very large
sum coming to him by leaving as do virtually all officers.As a consequence his annual salary was expended in January
so it is simple to say he is leaving, but it is not that simple.Mr. Caro so even if they leave, the budgeted amount
for that particular officer would follow the officer.
Mr. McMonagle said there was a lot of misinformation in the past several months regarding revenues allegedly earned
through the different private contracting of the police force and now we see that it is both revenue and expenditure
neutral and is just a wash.The fact is that if the Township were to market it and sell police services all over the
place, the Township would still not make a dime.Mr. Stepnoski said that is correct.
Acting Director McGinty said he thought that it would be 2 replacement officers and 8 new for a total of 10
officers.Mr. Stepnoski said they will have to discuss this issue.
Mr. Stepnoski said that all of Levittown has been repaved so the Township is outside of the CDBG Funds and is into
real funds.Fire equipment has been an issue with people saying we need more and how can there be no money
available.If the Board wants to increase money for fire equipment it would be a millage increase.
Mr. Stepnoski said there are several obligations the Township has this year and this may clear up some of the issues
associated with the police.Mr. Stepnoski said he alluded to the fact that there is a new actuarial plan that will be
coming out this year to cover for the next two years.The Township's obligation to fund the underfunded in the police
plan will be a $1 million increase annually.It is a combination of not only a decrease in the financial times but the
basis for the actuarial study for the police was based on a normal retirement.Fully half of the force is out on a
disability retirement which has a different funding mechanism and that translates into a body of money that is needed
in the pension plan which is far larger than we currently have.
Mr. Warren exclaimed with disbelief that half of the police force is on disability.Mr. McMonagle said the situation
is that the previous police contract made it much more lucrative to retire on disability because you would get 75%
salary and a regular retirement like the rest of the world typically does is 55%.That has been changed, but there are
between 18 to 20 who are on the disability retirement plan that is costing the Township in the Minimum Municipal
Obligation.Mr. Thompson said that typically the officers are going out earlier and receive disability payments much
longer.
Mr. Stepnoski said it is a two-fold hit as stated by Mr. Thompson in that a higher rate is being paid, 75% as opposed
to 55% and the other is that you go out younger so you have a longer time to collect.That two-fold hit means much
more money is needed in the Pension Plan which means that the calculation has to be redone and funded to the tune of
$1 million per year.
Other post retirement employee benefits for retired police officers on the surface seem like we are just paying for
health care for several years after they leave is not that big a deal.That is not how actuaries look at it and under
GASBY 45 the Township has to account for it and what is not in the budget and should be is another $800,000.00 for
police health care under the current contract.The $800,000.00 is split roughly between a $400,000.00 annual payment
that must be made and a $400,000.00 catch up payment that must be made to get enough money into the fund.
Mr. Stepnoski said in summary he is asking for Board direction as this is just a presentation to get the Board up to
speed because by the next meeting he has to have a preliminary budget that must be posted.The township is in tough
times and everything has been stripped to the bones.Mr. Penko is working daily getting updated numbers to be able to
know how much is available moving forward.
Mr. Caro asked Mr. Stepnoski if he has a ballpark figure with regard to a tax increase.Mr. Stepnoski is attempting to
get the increase down from 4 mills with a mill costing a taxpayer roughly $40.00.Over time all of the places have
been systematically drained meaning there is no special account laying around and everything has been stripped to the
bare bones.It is down to a mill increase or a reduction of a couple of employees.If we want to increase spending on
the police side that is additional new millage over the 4 mills.
Mr. Penko stated that the police budget is being over spent and is running a deficit at the present time.While we may
have had room for the additional officers who are out and not collecting a salary, it has been eaten up by other
expenses.
Mr. Caro asked if it is a "catch 22" because we are paying a lot on overtime and short on people.Mr. Stepnoski said
that is what he thought, but it is not quite that.Bringing on a couple more officers may ease that but there are some
other internal dynamics.Mr. Stepnoski said it is probably one of the hardest decisions that a manager must make
because you are balancing costs and public safety.Mr. Stepnoski is all for paying everyone everything they are due,
but when you have to bring someone in just because that is problematic and drives costs up.
Mr. Leonhauser asked what the just because means.Does he mean bringing in a man because of the minimum manpower?Mr.
Stepnoski said yes.Mr. Leonhauser said there is a safety issue there.Mr. Stepnoski said there is always something and
he is not convinced and is not going down that path and is not something he pushed. The 12 hour shift for instance
came in as this great thing.The reading that Mr. Stepnoski has done shows that there is a decrease in flexibility
making it harder to get the number of men that you need at the right time in order to affect a minimum manning for
rush hour versus minimum manning in the middle of the night.Issues like that can have dramatic effects on a police
budget, but they are not issues that Mr. Stepnoski has pushed or discussed with Acting Director McGinty, although
going forward these are issues that must be addressed.
Mr. McMonagle said that beyond the minimum manpower requirements there are also contractual obligations that are
probably not cost effective, one example being the requirement for a sergeant with each patrol and if a sergeant is
out another sergeant comes in at overtime instead of temporarily promoting one of the people already on the
squad.That is contractual and is changeable.
Mr. Stepnoski stated that every little thing helps and this is not a "them and us" this is a Township with
obligations to residents.The police department is the lion share of the budget and that is fine, but on the other
side of the coin some production must be able to address.Mr. Stepnoski said that is one of the challenges he has been
working with Acting Director McGinty and he is all ears.
Mr. Stepnoski said that he and Mr. Penko have been working on the budget on a regular basis.He alluded to earlier
with the Public Works Department and that is the loaded costs and what happened is that dollars were expended out to
liquid fuels project and the actual time spent was charged, but it wasn't a loaded cost.There is an equitable way to
change that when someone signs up for a job, the loaded costs for that particular job must be charged to that
particular fund. That is why the $168,000.00 was such a surprise, but will be changed by the appropriate journal
entries and changes.
Mr. Warren said he is under the impression that benefits are about 30% of the salary.Mr. Stepnoski said it may be a
little high.The Township benefits are good.Mr. Penko stated that the pension weighs in heavily in the loaded
calculations and brings the percentage in well over the 30%.
Mr. Thompson asked the Board if they have any direction for the Township Manager.Mr. Stepnoski said it is tough and
he wants to keep the Supervisors elect in the loop and directed them to feel free if they want to go over the budget
personally to stop by his office.
Mr. Thompson thanked Mr. Stepnoski for his presentation and stated the evening is concluded at this time.
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