FOR IMMEDIATE RELEASE Stanhope, NJ - May 27, 2010
MAYOR AND COUNCIL
SPECIAL BUDGET MEETING
March 30, 2010
7:00 P.M.
MAYOR'S STATEMENT AS TO COMPLIANCE WITH P.L. 1975
Adequate Notice of this Meeting has been provided according to the Open Public Meetings Act, Assembly Bill 1030. Notice of this Special Budget Meeting was sent to the New Jersey Herald and Daily Record on March 15, 2010 and was placed on the Official Bulletin Board in the Municipal Building.
In the event the Mayor and Council have not addressed all items on this Agenda by 11:00 PM and they are of the opinion that they cannot complete the Agenda in a reasonable time period, the Mayor and Council may exercise their option to continue this meeting at an agreed to time, date and place within ten (10) days of this meeting. Please turn off all cell phones for the duration of this Meeting.
ROLL CALL
Council Members:
Councilman Murphy - present Councilman Graham – present
Councilwoman Santucci – present Councilman Vance - present
Councilwoman Maio – present Councilman Benson – present
Mayor Kuncken – present
COUNCIL BUSINESS
Mayor Kuncken invited CFO, Dana Mooney to lead the budget discussion. Ms. Mooney said the Borough Auditor, Ray Sarinelli, would like the Borough to have a modest increase in the budget because if the budget remains under the levy cap the Borough may not be able to increase the budget enough to cover expenses next year; especially since now that Governor Christie is proposing a 2.5% levy cap increase.
Ms. Mooney stated she added $10,000.00 to miscellaneous legal to cover a potential lawsuit with SCMUA. Councilwoman Maio added she did not feel that amount is sufficient to cover the lawsuit costs. The governing body discussed the issue at great length. Mayor Kuncken suggested raising the amount to $25,000.00.
Councilman Vance asked if Mr. Sarinelli recommended a specific dollar amount to remain in surplus. Ms. Mooney replied that Mr. Sarinelli was hesitant to approve the $790,000.00 presented to him last week. Councilman Vance asked if Mr. Sarinelli recommended a certain figure or percentage of the budget to keep in surplus. Ms. Mooney replied Mr. Sarinelli has not recommended a number and it is the municipality that decides how much they will keep in surplus, i.e. a surplus amount about 2 percent (2%) of the levy.
Councilman Vance asked if the governing body should seek Mr. Sarinelli’s opinion on the amount to be applied to the miscellaneous legal line item or should Mr. Stein be contacted for his opinion. Ms. Mooney asked if the matter would result in a future savings. Councilwoman Maio responded negatively. Councilwoman Maio said this matter is concerning paying off the bond the County signed or floated for the operation of SCMUA. SCMUA feels it is a County problem and municipalities should pay. The bond includes waste water and garbage. The Borough receives no benefit from waste water and it is unclear how much of the bond funds went to waste water. After a discussion it was decided that Mayor Kuncken would speak with Mr. Stein.
The governing body continued to discuss in detail the summary of financial changes to the current fund since March 2, 2010. Councilman Benson feels the Morris Canal Rehabilitation project needs more funding than $50,000.00. After the governing body reviews the TVing video funding needs will be discussed again.
CFO Mooney went on to discuss that the average Stanhope residence valued at $231,215 will see a tax increase of $25.49 in the municipal budget.
The governing body wants to wait to hear Mr. Stein’s opinion on the miscellaneous legal before deciding on the surplus level and raising municipal taxes.
The CFO clarified that the levy represents what is collected in taxes. Ms. Mooney also stated there has been no discussion on the capital budget.
Water Operating Revenues
Ms. Mooney reported that Water Capital Surplus can be used in the Water Operating Budget.
Ms. Mooney stated that you can not anticipate more collections than what was taken in last year. Ms. Mooney is concerned that the rents will not be collected as anticipated because the collection rate in the early part of 2010 is not as anticipated. Ms. Mooney feels there must be a modest increase in utilities in the future.
The CFO and governing body has already discussed the Water Utility Budget in depth and agreed to leave the utilities as is for now.
Ms. Mooney added the sewer utility is in very good shape.
Capital Spending Plan
The Fire Department requested Ice Rescue Equipment and Ms. Mooney included the purchase in the Capital Spending Plan. The equipment has already been purchased and will be deducted from the plan. The Fire Department is also requesting to install nine (9) of 300 psi MSA style cylinders establishing a schedule for replacement of all units.
Police Chief Pittigher requested car cameras and submitted a price quote of $37,000 including installation valid through April 2009. Ms. Mooney reported the cameras are a bondable item and she has a cost of $42,000.00 which includes bonding. Ms. Mooney will obtain current figures from the Chief for the cameras.
DPW Superintendent Bill Storms requested a Crack Sealer Machine but has not submitted any written information. Sparta purchased a similar machine last year for $37,000.00. Including bonding costs the machine will cost the Borough approximately $50,000.00. The governing body questioned how often the machine will be used and if there was a way to share the machine with a neighboring community or simply rent the machine each year. Councilman Benson added the machine would prolong the life of the roads. Administrator Stewart will speak with Mr. Storms and obtain additional information and pricing.
The next item on the Capital Spending Plan is a generator for Borough Hall. The cost is approximately $50,000.00 for the unit, labor and material. Councilman Murphy asked who gave the quotation. Administrator Stewart answered it is the same company that provided the generators for our wells and pumps. The Administrator supplied them with our power usage and internal equipment and the company responded quoting the type of equipment they felt would be correct for the building. Councilwoman Maio asked if they provided a written proposal and if Borough Engineer Keller looked at the specifications of the generator. Mayor Kuncken asked if the generator quoted is what is needed. Administrator Stewart answered that Mr. Keller did review the specifications and agreed with the choice of generator. Administrator Stewart will provide written documentation about the generator.
The Court Administrator has requested the installation of safety windows on both doors of her office because she accepts payments at both doors.
The digital recording equipment currently requested in the Clerk’s budget will be moved to the Capital Improvement Fund and the costs will be divided between the Clerk’s office, Court and Boards and Commissions because all will be benefiting from the new equipment.
Water/Sewer Capital Outlay
Capital Outlay accounts are budgeted right in the operating budget and spent as needed and is very different than any other account in the current fund. Both water and sewer outlay accounts will have a balance of $20,000.00 in 2010 and the funds will be used to purchase Radio Read Units.
Water/Sewer Capital Improvement Funds
Water and sewer capital improvement funds are stationary funds inside Capital that funds are added to each year and an ordinance is necessary to spend those funds.
Mayor Kuncken reported that during conversations with the Stanhope School Board of Education regarding their budget it was brought to her attention that the School Board changed its’ health insurance back from a private plan to the State plan because the private plan’s costs were constantly increasing. The experience profile is also affected because they have been impacted more because the private plan has a smaller pool of insured members. The Administrator added the Risk Manager recommends staying with the State plan for the next two years. The CFO also added that the State plan requires employees contribute one and one-half (1-1/2%) of their salaries and the private plan has no such requirement. The State plan will give the Borough a greater leverage in union negotiations.
Mayor Kuncken also noted that Councilwoman Maio questioned why the Police Chief is requesting two new cars this year. Mayor Kuncken reported the Borough has not leased any new cars in the last three (3) years. Leasing two (2) new cars this year will result in no new leases for the next three (3) years.
The governing body discussed inviting Auditor Ray Sarinelli to their budget discussion. The CFO will call Mr. Sarinelli and arrange a suitable meeting date and time.
CITIZENS TO BE HEARD
Mayor Kuncken opened the meeting to the public after advising attendees that there is a five (5) minute time limit for each speaker.
Jeffrey Jozowski, 117 Main Street, Stanhope, asked where the Stanhope budget stands currently. Mayor Kuncken deferred to the CFO who answered that there are still minor adjustments to be made and a decision on some legal issues on whether to budget a little more or take from surplus. The bottom line is the municipal budget will increase 1.63%. The levy will increase 2.54 points and the average residence assessed at the average value of $231,215.00 will see an increase of $25.49.
Seeing no one else from the public wishing to speak, Mayor Kuncken closed the public portion of the meeting.
ADJOURNMENT
On a motion by Councilman Vance, seconded by Councilman Graham, and unanimously carried by voice vote the meeting was adjourned at 9:04 P.M.
Approved:
Lynda Knott
Deputy Borough Clerk
For Ellen Horak, RMC
Borough Clerk