Monthly Index

November 29, 2004, Work Session

The Work Session of the Clarion Borough Council was held on November 29, 2004, at the Clarion Borough Offices.

President Wilshire called the meeting to order at 5:03 p.m.

Councilmembers present included Mr. Zerfoss, Mr. Herman, Ms. Vavrek, Ms. Moore, Mr. German, and President Wilshire.  Mr. Crooks was absent.  Ms. Lapinto and Mr. Ragon were also present.  Chief Hall, Mr. Stutzman, and Mayor Smathers were absent.

Citizen Comments:  There was none.

Administration:  President Wilshire stated the Committee met to review the proposed 2005 Budget, which Council will vote to advertise at Tuesday’s Council Meeting.  Originally, the budget would have required a 3 mill tax increase.  However, the budget everyone received includes a recent tax change within the Commonwealth whereby the legislators approved an increase in the occupation privilege tax from $10 up to $52.  President Wilshire reported that tax applies to everybody working in Clarion Borough.  The tax would be taken out $1 a week.  Also proposed is to eliminate the per capita tax.  Council could also decrease the real estate tax by 1 mill for 2005.  President Wilshire asked Ms. Lapinto for further comments.

Ms. Lapinto commented she reviewed the budget with each department.  It is very bare bones.  Ms. Lapinto has asked the Solicitor to prepare an ordinance dealing with the occupation privilege tax.  Since it’s $52 a year, it will be deducted $1 per week.  The ordinance will include the monies must be paid to the wage tax collector on either a monthly or quarterly basis.  The wage tax collector agreed to collect it and will prepare a computer print out of all the employers in the Borough for Ms. Lapinto so notices can be mailed out of this increase.

Mr. Herman stated currently that $10 tax is taken out of the first pay of the new fiscal year in January.  If an employer has 26 pays, then it will be $2 from each paycheck.

Ms. Lapinto agreed.  As far as pay raises, the Borough is in negotiations with the Police Department; the Public Works Department will receive 3.2% per the contract, which will expire at the end of 2005; and 3.2% for the remaining employees.  These will be voted on separately.  Ms. Lapinto estimated the police increase as well as hospitalization.

President Wilshire questioned if that means the figure in the budget pending negotiations could be less.

Ms. Lapinto stated it could but is not certain.

Mr. Herman doesn’t think it’s appropriate to discuss at this time.  The Committee is comfortable with the estimates.

Ms. Lapinto pointed out under Public Works everyone will notice a line item for Clean-Up Day.  It’s been brought up as to how much that service costs and whether to eliminate it.

President Wilshire asked what a mill amounts to.

Ms. Lapinto reported $31,700.

Even with a mill reduction, Mr. Herman commented the carry-over budget would be around $100,000.

Ms. Lapinto stated $100,623.  The budget prepared is without the mill cut, which is Council’s decision.  Under major equipment in the Public Safety section, $22,000 was set aside for a police car at the end of next year.  That decision will be made as to whether the funds are there or not at that time.

If the money is not there, Mr. Herman reported the car won’t be purchased.  The Committee feels the Department’s okay and could get by without a car.

Ms. Lapinto reminded Council this is the final year of the recycling contract.  The cost will increase $5,000.  This figure is locked in for a term of 5 years.  Tri-County Industries will still be the company.

Mr. German asked where the Clean-Up Day line item use to be?

Ms. Lapinto commented it was in operating supplies. 

Mr. Zerfoss pointed out another item that was discussed with Public Works was the meter fines and repairs being charged to Public Works only and not divided among every department.  It was explained that it’s really an expense to Public Works.

Over to Recreation, Mr. Zerfoss stated the Borough pays over $3,000 to the YMCA for managing the pool and also pays the expenses.  Mr. Zerfoss questioned if it’s still more feasible doing it this way than doing it in-house.

Ms. Lapinto stated yes.  Since it’s a contracted service, the Borough doesn’t have to pay worker’s compensation.  Also, there’s no way Ms. Lapinto or Ms. LaVan can go down on a day-to-day basis to see if things are okay.

Mr. Herman thinks it would be more of a job for Public Works also.

Mr. Zerfoss reported the Borough mows the grass and everything else that’s involved Monday through Friday.

President Wilshire verified the part-time employees mow the grass.

Mr. Zerfoss stressed it’s still Borough employees.

President Wilshire suggested the agreement could be fine tuned.

Ms. Lapinto stated that was done.  The Public Works Department handles the chemicals Monday through Friday and the YMCA handles them over the weekend.

Mr. Herman inquired if the pool fees have increased.

Ms. Lapinto commented yes and passed out copies of the fee schedules.  The pool fees haven’t increased in quite awhile.  The pass fees were raised $10 across the board.  Night swim will be $3.  Also, other fees that are being suggested to increase are the following: variances, special exceptions, conditional uses, and use variances from $250 to $300 ($50 increase to help with the rising advertising fees) and sidewalk exaction to $5 for 7 days (eliminating the $1 daily rate).  Ms. Lapinto informed Council all the small funds will be ready by Tuesday’s Council Meeting.  There are no changes in any of those funds.

If Council reduces taxes a mill, Mr. Zerfoss asked if that will need included before permission for advertising the budget occurs.

President Wilshire stated yes.  The hike in the amount of occupation privilege tax was designed to provide tax relief to communities like Clarion where a lot of people may work in Clarion Borough but not live there.  Again, without this tax, Council would have had to raise taxes 3 mills.  President Wilshire asked everyone for his/her opinion on reducing the real estate taxes 1 mill.

Mr. Zerfoss supports reducing real estate taxes 1 mill.

Mr. Herman fully supports the 1 mill decrease.  Mr. Herman voiced disappointment that it’s been 1½ years since a meeting was held with Council and the local state representatives in reference to the plight of the 14 Boroughs that have a University within their jurisdiction.  The State Senate did have a bill attached to the vote on gambling, which was to appropriate an amount of money for tax relief for those 14 Boroughs.  Mr. Herman reported it only lost 29 to 21 and is at a loss as to why it hasn’t been discussed farther.  If it would have been, perhaps Council could have reduced taxes even more.  This $52 tax is a good stop gap.  If this additional tax relief could be pursued, Council could possibly reduce taxes of the residents more and move forward with some projects that were designed with the re-zoning.

Ms. Vavrek would be interested in knowing how the representatives voted for this legislation especially the ones involved in municipalities with universities within their boundaries.

Mr. Zerfoss stated Senator Mary Jo White and Representative Fred McIlhattan didn’t vote for it because both were against the gambling.  Slippery Rock University and Clarion University are both in Senator White’s voting area.  The representatives need to do his/her job to get money for these municipalities.

In all fairness to Representative McIlhattan, Mr. Herman realizes he agreed to work on something.  This bill was supported somewhat.  The discussion should be reinvigorated, especially if Council is interested in helping reduce property taxes farther.  It’s time for both Representative McIlhattan and Senator White to pursue this issue. 

President Wilshire thinks this municipal services tax is a response to the Borough’s need and the other 14 municipalities having a similar situation where a lot of people work there but don’t necessary live.  Also, President Wilshire thanked Representative McIlhattan and Senator White for supporting this tax.

Mr. Zerfoss pointed out the State Senate approved this tax, which applies for the whole State of Pennsylvania.  However, it is ultimately up to each municipality for putting this tax into affect to their citizens.

Mr. Herman added the Borough of Ellwood City, which does not have a university within their Borough, can also take advantage of this legislation.  The tax allows the Borough breathing room, but it cannot be an end-all fix.  The Borough will still need help 2-3 years down the road when insurances continue to rise.  Pittsburgh has a similar problem with so many non-for-profits in their areas between the hospitals and universities and also a land problem.  Some large cities are going to need help down the road, and the Borough should be sitting at the same table trying to get assistance.

Ms. Lapinto thinks Mr. Zerfoss is right.  The key issue was gambling.  If the legislator was against gambling, then he/she was against the bill.

Mr. Herman feels it wouldn’t be too difficult to change 4 or 5 minds.  There are people across the state that would probably be willing to lobby for it.

President Wilshire stated the real political reality is that only a few key members of the legislature actually draft bills anymore that get passed.  Individual legislation sometimes has very little power.

Ms. Vavrek asked how this 1 mill reduction would play out in the following year and added she would not feel comfortable removing it this year and turning around next year and putting it back in.

Ms. Lapinto stressed you can’t predict what will happen.  There are too many variables.

Ms. Moore and Mr. German both agreed with the 1 mill reduction.

President Wilshire commented the budget will be changed to reduce real estate taxes by 1 mill and Council must approve to advertise the budget at the Council Meeting.  Council has to make the budget available for public comments.  Then a Special Council Meting will be scheduled to adopt it before the end of the year.

Mr. German inquired if the budget can be adopted since negotiations are not completed.

Ms. Lapinto stated the Borough has to approve a budget by December 31st.

President Wilshire reported Councilmembers received a list of expired terms on various boards and commissions.  Everyone will be notified to see if he/she wishes to be appointed again.

President Wilshire asked Ms. Lapinto to discuss the Police Pension Ordinance.

Ms. Lapinto announced Act 600 has been changed that if a police officer would be killed in the line of duty then his/her spouse would be entitled to his current wage forever, regardless of if he/she remarries.  Ms. Lapinto informed Council she has protected the pension plan by purchasing insurance on all the officers.  However, this ordinance will complete the necessary paperwork.  This happened out east and their $2 million pension plan was wiped out.

President Wilshire asked Ms. Moore to discuss the wage tax situation.

Ms. Moore reported Council received a letter from Mr. John Schmader, wage tax collector, announcing his retirement.  Ms. Susan Beary sent a letter to Council stating she’d like to continue in that position.  Ms. Moore commented Ms. Lapinto and she met at Dr. William Kaufman’s office at the School with Ms. Beary.  Ms. Beary has worked with Mr. Schmader for 3 years and seems pretty confident.  Since this means a change in hands, everyone thought the bonds need updated and an audit should be completed.  Also, the problem with Central Tax Bureau not sending tax money in a timely manner was discussed.  Ms. Moore stated she was very impressed with Ms. Beary.

President Wilshire verified the school also recommends Ms. Beary as well.

Ms. Moore agreed.

Ms. Lapinto added the agreement with Mr. Schmader expired many years ago.  The bond at that time was $10,000.  It was recommended Ms. Beary’s bond be about $250,000, which is the most amount of money she would have at any one time.

President Wilshire thanked Ms. Lapinto and Ms. LaVan for preparing the budget.

Public Works:  Mr. Zerfoss reported leaves will be taken at Paul A. Weaver Park until December 6th.

Mr. Zerfoss reminded everyone the Snow Removal Ordinance begins December 1st and allows the Public Works Department to plow snow from the streets.  The plows are ready and the Borough has salt.  The Department will be on two shifts; day and night.

Mr. Zerfoss reported several months ago the Department put in a storm sewer at Boundary Street.  Normally, the Borough would bid this type of project.  However, the Borough only had $120,000 to do it, which was not enough to bid out.  By doing the project in-house, Mr. Zerfoss stated the Borough spent $47,700, which is a savings of $72,300.  Some of that money was used to complete the paving at Paul A. Weaver Park.  The project did take a couple of weeks to complete but a lot of money was saved.  During the project, the Department ran into a rock problem and had to rent equipment from some local contractors, who gave the Borough a good rate.

Mr. German stated that is fantastic and the public should know these positive things.

Mr. Herman verified that money doesn’t go into the General Fund but into another grant project.

Ms. Lapinto commented yes.

Mr. Zerfoss reported the employees did an excellent job and the Borough residents are happy.

Ms. Lapinto noted the engineering for this project was already done so it just needed completed.

President Wilshire announced the Borough receives the entitlement money each year because it meets the low-income definition.  The reason the Borough qualifies is the census takes the entire population, including the college students which raises the number and enables the Borough to get the grant money.  No other municipality in Clarion County receives it.

Downtown Committee:  Ms. Moore had nothing to report.

Public Safety: Mr. Herman had nothing to report.

Housing and Zoning: Ms. Vavrek had nothing to report.

Recreation:  Mr. German had nothing to report.

Back to Downtown Committee, Mr. Zerfoss pointed out the Public Works Department repaired the receptacles around the trees so businesses could put lights in them.  Also, the wreaths are up.

Ms. Lapinto commented the Borough employees got the wreaths ready.  CABA used to do that, but the Borough brought it in-house to help them out.

Manager’s Report:  Ms. Lapinto had nothing to report.

Old Business:  There was none.

New Business:  There was none.

Correspondence:  There was none.

On a motion by Mr. German with a second by Mr. Herman, the Work Session was adjourned at 5:46 p.m.

                     ______________________________

                     Carol Lapinto

                     Borough Secretary