Proposed budget avoids tax hike

Borough council advertises $3.6M 2019 budget; police officer, car purchase are main new additions

NORTH WALES >> The 2019 budget for North Wales Borough is one big step closer to being finalized.

Council voted unanimously on Nov. 27 to publicly advertise a roughly $3.6 million budget, with funding for a new police officer, a new police vehicle, and upgrades spelled out in the recently adopted comprehensive plan, all while keeping taxes level.

“There is no tax increase,” said Borough Manager Christine Hart.

Talks began in October on the 2019 financial plan, which keeps millage rates at the 5.001 mill level last modified in 2016 for 2017. Hart detailed the projected revenues and expenses for council and the public Tuesday night, describing the roughly $2 million in general fund expenses, supplemented by roughly $600,000 in highway aid money for road repairs, $191,000 in debt service payments, and more.

Much of the discussion by council and staff centered on a request by Police Chief Michael Eves for roughly $50,000 for a new police vehicle, which Eves said would replace a vehicle from 2002 with roughly 90,000 miles on it that is “starting to make some weird noises.”

“I think, at some point, we’re going to have to throw a lot of money into it,” Eves said.

The department currently operates four police vehicles, and Eves said two of the four have relatively low mileage, one marked and one

unmarked. The 2002 vehicle would likely be first in line for a replacement, preferably with a 2018 model vehicle if one can be found being sold as year-end surplus, according to the chief.

A 2004 vehicle is currently designated as a personal vehicle for use by the chief, but Eves said he has been using his personal vehicle to travel to and from work and the “Chief car” has been shifted to general department use, for transport to and from police training, and occasional use by public works staff.

“I live five or ten minutes away, so I really don’t need that truck. It could be purposed, it could be converted if you need it,” Eves said.

Council President Jim Sando asked if the department could look into upgrading the systems and equipment on the “Chief Car.” Eves said that could be done, but in the long run may be more costly than buying new.

“The computer system, emergency lighting, the cage and seats, it costs a lot of money. If you throw all of that into an ‘04, and that ‘04 goes down, you just

wasted a lot of money,” he said.

Eves said his department’s 2019 budget also includes funding for a new full-time officer, which would bring the department up to five full-time and anywhere from five to eight part-time.

“It was originally budgeted for last year. Due to the transition between chiefs, it got sidelined, but I want to make it a priority for 2019. I would consider that fully staffed,” Eves said.

The 2019 budget anticipates roughly $630,000 in real estate tax revenue, an additional $400,000 in earned income tax revenue, $65,000 from real estate transfer taxes, $40,000 from local service taxes, and $24,000 from fees and other code enforcement actions, according to the manager.

On the expense side, the police department is the largest single category, with roughly $605,000 in expenses for officer salaries, followed by benefits and insurance costs totaling $445,000, then administrative, code and legal staff totaling $380,000 and Public Works staff totaling $167,000.

“When you look at that, obviously public safety is paramount: it’s the majority

of the budget,” Hart said.

Borough reserves are holding steady at roughly $3 million, nearly all of which is derived from the town’s sale of its sewer plant to neighboring Upper Gwynedd in 2010. Roughly $60,000 in interest earnings is anticipated in 2019, and Hart said that number could go up depending on market interest rates.

“We’ll be able, hopefully, to secure some better interest rates, but we had some locked in prior to rates going up,” she said.

Former councilman Mark Tarlecki asked how soon staff could begin searching for better interest rates, and former councilman John Davis suggested one particular online bank that Hart said she would look into.

Hart said the borough’s current investment policy spells out strict guidelines on how often certain types of funds can be touched, and what types of instruments they can be used for, and council could revisit that policy in 2019.

“If I could just take the $3 million and put it into one account at 2.25 (percent interest), I would, but that would violate our investment policy,” she said.

Budgeted revenues and expenses currently show a shortfall of just over

$250,000, but Hart said that shortfall was due to one single line item, earmarked for implementation of recommendations in the borough’s 2040 comprehensive plan.

“Those are things that we can go back to the capital (reserves) and look at, and decide. The $250,000 is earmarked from the reserve fund, to come out and go over, and if it was not for that, we would be cash flow positive,” she said.

Council voted unanimously to publicly advertise the 2019 budget, and the accompanying tax resolution, and Hart said both will be posted on the borough’s website NorthWalesBorough.org and available at the borough municipal building for public comment.

Council is currently scheduled to meet on Dec. 11 and 18, both at 7 p.m., and Hart said council could choose to finalize the budget and all remaining yearend actions on the first date and cancel the second.

“If we stay on track, it appears we will not have to meet on Dec. 18,” she said.

Resident Andrew Berenson suggested keeping the Dec. 18 meeting date available in case of poor weather on the 11th, and Solicitor John Filice said council

could hold the first meeting, then cancel the second if it’s not needed.

Borough council’s next meeting is scheduled for 7 p.m. on Dec. 11 at the borough municipal building,

300 School St.