CALL TO ORDER: The 2025 Budget Workshop was called to order by President Bollendorf at 6:00 PM.

ATTENDANCE: President Bollendorf, Vice President Reichner, Councilpersons Hendrickson, Hoover, Jacobus, Shay & Myers, Mayor Schultz, Borough Manager Hegele, Assistant Borough Secretary DeRenzis, Police Chief Ruegg, Fire Marshal Valesky, Enterprise Fire Company President Brown, Enterprise Fire Company Member Croak, Library Director Law & Library Treasurer Kochanowicz

President Bollendorf reviewed housekeeping items regarding the budget process. Presented tonight is the fiscal year 2025 operating budget for the following funds, general, sinking, pool, fire, library & ems. He stated there are fixed costs that the Borough cannot change. He indicated the finance committee has been working with staff on cutting and trimming as well as considering fee increases. The purpose of tonight’s meeting is to take everything submitted by the staff and departments and trim to get to a zero balanced budget as required by the Borough Code. There will be other opportunities to look at the budget again as it will be on the November and December agenda for preliminary and then final adoption. He reminded everyone that the budget is a outline or snapshot of the Borough operations and is very fluid document. Everyone does their best to make a highly educated guess based on knowledge and past practices. Things the Borough has learned over the past two years are tax collections are down, there is still 130,000 in outstanding taxes on the street for 2024 as well as a large amount on the street for 2023 which was turned over to the county for collection.

President Bollendorf stated staff starts in August with their wishlist of things they need which you see tonight on the document shared with the public. Right now there is a $191,259.00 shortfall that has to be again at 0.

Several residents were in attendance and had questions about the process, which were explained to them.
President Bollendorf and Council reviewed each line items and things were changed as discussions ensued. For the purposes of the minutes we are highlighting information and changes discussed.
Taxes, the budget represents a 97% collection rate. There are still outstanding grant funds owed to the Borough which staff is working to collect. Those figures were included as the Borough is expecting the revenue to be received. Some line items involving fines were adjusted as the Borough is not trending to projected figures. Manager Hegele stated that some fees for Land Development and Zoning are conservative as staff does not know what to expect, we did include things we knew possibly were expected.

There was a discussion about the use of DVIT credits. DVIT is the Delaware Valley Insurance Trust who provides health, workers compensation and property and liability insurance for the Borough. The Borough builds credits yearly which can be used to help offset our premiums. In the past the Borough has only used a small amount yearly. With the increase in costs to the Borough to operate the finance
committee felt it was time to use more of these credits to help offset costs. Council is going to vote in November to authorize the use of the credits to offset our costs. This is a separate item that needs to be done in order to notify the insurance company by the required November 30th deadline.

Sanitation Fees, this has been a topic of discussion for several months and Council made a commitment to fix this matter and make much needed changes to the ordinance in order to make the costs for sanitation equal to all who receive the services. This year the tax bill will have a separate line item for trash, as of tonight the anticipated costs will be $343.00 for all residential per stop and $1200 for all commercial stops. The costs anticipated include tolls, fuel, dump fees, maintenance but does not include labor as that is included already under Public Works. There was a discussion about two day per week collection vs. one day per week. The Borough feels there is no costs savings at this time and would like to continue to offer 2 day week collection in 2025.

There was a discussion about Fire Marshal fees. Manager Hegele stated that the figures include money that has been billed for inspections and not yet received. This line item was raised as more inspections were found and done in 2024.

There was a lengthy discussion about event fees and costs to the Borough. President Bollendorf reviewed past events in 2023 and 2024 and the costs to the Borough. He asked for input as some in the Borough are not interested in events and see no benefit and others are. He stated this is something that costs the Borough and it should be evaluated yearly to make sure that taxpayer funds are being used wisely. Mayor Schultz explained the process for how money is raised to pay for these events. There was a discussion about costs for police officers and public works staff. Some event organizers pay for these costs but the biggest cost is the Car Show and the Parade. Logistics were discussed for the parade and why the increase in staffing, a lot of it is safety for participants and attendees. The Borough changed how we do things with the Library due to increased costs, lack of manpower and time. A lot of events are on the weekends and cost overtime for public works. It was decided for budgeting, the Borough would absorb the costs of the Parade for 2024 but in 2025 all event organizers will be responsible for 35% of costs not to exceed $20,000.

Cressbrook costs were discussed, this is the first year staff has bills for the purpose of run rates. There was a discussion from resident Gary Blickley about this facility and the costs to sustain. President Bollendorf stated there is value to owning this property in addition to being a historic structure in the Borough that no one wants to see torn down as suggested. Manager Hegele stated PW needs the barn for much needed space. Vice President Reichner stated the bathrooms alone are a value as this is the only area close to a park with events that has bathrooms for the public to use. President Bollendorf stated the house is overseen by a group called Friends of Cressbrook who is trying to raise money to sustain the facility. Councilwoman Shay suggested that residents get more involved in events and raising money. She stated it is the same few people volunteering their time to make Hatboro better.

Kelly A’ Harrah asked council to consider more money for the EAC, she stated te EAC was going to discuss at their November meeting.

There was a discussion about Parks and Little Leaque request for 2025. Manager Hegele stated the Borough still owes them their remaining payment of $3K from fee in lieu of as a one time contribution in the 2024 budget. Council will add a contribution in 2025 and it will be paid from fee in lieu of funds as this is a park.

Fire Company Brown reviewed the FY 2025 Enterprise Fire Company budget and the numbers received will be considered.

Union Library numbers for FY 2025 were received and those numbers will be considered as well.
EMS tax is a quarterly disbursement to Second Alarmers and used for staffing and fuel.

The Hatboro Memorial Pool is an enterprise account. Raises for staff were incorporated as well as some adjustment to membership fees, parties and guest fees. There was also an increase to account for contractual raises for Public Works. PW staff open and close the pool and their time is paid back to the General Fund yearly.

Sinking Fund, this is for all Borough debt. Staff has accounted for a new computer lease as the prior lease ended in the first quarter of 2024 and we will need new equipment soon. There was discussion about IT services, additional quotes from companies other than the current provider to see if there is a cost savings. There was discussion about copier leases and seeing if we could improve on costs.

Transfers were made and council was able to get to a balanced budget with no tax increase. There will be changes made before final adoption as the certified assessment is not yet received from the county. Next steps is preliminary adoption in November, followed by mandatory 10 day inspection and then final adoption in December. The tax rate millage ordinance and fee schedule will be adopted as well in December.

The 2025 Budget Workshop meeting was adjourned at 9:25 PM.

Respectfully submitted,
Diane C. Hegele
Borough Manager/Secretary

Transcribed by Diane Hegele