MINUTES OF' THE HANOVER BOROUGH COUNCIL November 20, 2024 FINANCE & PERSONNEL COMMITTEE MEETING Vice President Kress called the Hanover Borough Finance & Personnel Committee meeting to order Wednesday evening, November 20, 2024 at 7:00 PM in the Hanover Borough Municipal Building, 44 Frederick Street, Hanover, PA, as advertised. Attendance: The following Council Members were present: Council Members Mr. Bubb, Mr. Fuentes, Mrs. Funk, Mrs. Greenholt, Mr. Hegberg, Mr. Kress, Mr. Lookenbill, Mr. Reichart, Mr. Roland and Dr. Rupp; Solicitor Shultis; and Mayor Whitman. Junior The following staff members were in attendance: Human Resources Director Adler, Public Works Supervisor Bean, Secretary Felix, Public Works Director Grimm, Borough Manager Lewis, Planning & Engineering Director Mains, Police Chief Martin, Chief Codes Officer Miller, Parks & Recreation Director Purkins and Finance Director Shelton. Community Media was present to conduct a video and audio recording of the meeting Council Persons Chronister and Day. via Zoom presentation for all citizens tol have access. PUBLIC COMMENT Robert Holt, 513 High Street: Mr. Holt referred to the 41 McAllister Street approval for multi-family housing, where he felt the citizens' concerns were not addressed. He complained about the budget allocations to Main Street and the Market House. Mr. Holt stated that he obtained total funds received through a Right to Know Request for kayak/boat rental at Long Arm Dam reservoir, which totaled $698.00. He emphasized the need for a public hearing on the proposed recreation areas at the watershed. He asked for an open container law tol be established in Hanover Borough. ACKNOWIEDGEMENT OF EXECUTIVE SESSION Solicitor Shultis stated that an executive session was held Wednesday, November 20, 2024 prior to this meeting from 6:00 PM to 7:00 PM involving the following items under Sections 708a (1), (4) and (5) of the Sunshine Act: Police labor negotiations- collective bargaining Administration salary discussion Attorney-client privilege matters Minutes of the Hanover Borough Council Workshop/Finance & Personnel Committee November. 20, 2024 Page2 BUDGET PRESENTATION Finance Director Shelton discussed the updated draft of the 2025 Hanover Borough Budget that was supplied to Council. He noted that this is the final budget presented to Council before approving advertisement for public inspection. He noted that both the line-by-line budget and tonight's charted presentation will be provided online and will Governmental Funds BudgetSummary: Mr. Shelton stated that the Governmental Funds include the General Fund, Library Fund, Liquid Fuels Fund, Recreation Board Fund, Library Endowment Fund, Recreation Endowment Fund and the Governmental Capital Projects Fund. Thel beginning cash investment balance is projected at $23,178,410, ending with a projected balance of $19,866,732, including other financing sources and interfund transfers which carries a projected $3.3 million deficit. Much of this deficit is due to the timing of the $2.6 million receipt of grant funds from the building project bond offering that were received in 2024 and the expenses which will occur in 2025. The remaining deficit is from General Fund and Library operations ($548,000). The tax increase was phased in over 3 years, 2023, 2024 and 2025. The increase in taxes will be 0.28 mills for 2025, which will generate approximately $284,000 in additional funds. Total municipal real estate tax rate will be set at 6.65 mills. Expected total tax revenue in 2025 will be Finance Director Shelton summarized various comparison charts and breakdowns. He described detailed fund breakdowns of each of the 2025 Governmental Funds: be on display at the Borough office during the public inspection period. $10,544,295. Projected Governmental Fund expenses will be $30,566,186. Fund Beginning Cash and Investment Balance $12,746,672 Ending Cash and Investment Balance $12,198,020 $ 910,941 $ 77,806 $ 42,399 $ 337.611 $ 6,299,955 General Fund Library Fund*** Liquid Fuels Recreation Board Library Endowment 887,548 e 79,706 $ 37,399 Recreation Endowment $ 327,611 Governmental Capital Projects $ 9,000,330 Minutes of the Hanover Borough Council Worksho/Fimance &1 Personnel Committee November 20, 2024 Page3 ***The Library Fund has a projected revenue budget of $568,695 with interfund transfers of $676,378 for total budget of ($1,245,073). In 2027, the Borough will get some relief when Finance Director Shelton discussed highlights of the Governmental 2025 Funds Debt Service and Capital Projects Detail report. He noted that the majority of the capital expenditures are on building projects, with $1,032,000 for the administrative facility and $3,778,880 for the public safety building, however there are significant grants offsetting both of these projects. There are various equipment purchases and projects planned, with Mr. Shelton offered toj provide any further detail if anyone requested same. He described the proposed equipment purchases and noted that these items also bear significant grant Mr. Shelton noted that the total capital outlay is projected at $10,229,557, again making a reference to forthcoming grant offsets, and commended staff for their efforts to obtain 2025 Proprietary funds budget summary: Mr. Shelton noted that the proprietary funds are not funded by taxpayer dollars, and include Water, Sanitary Sewer, Regional Wastewater Treatment RWWI),Stormwater. Authority, and Market House funds. All of these funds have their own: respective capital projects fund to accompany them. There is an overall projected beginning balance of $9,900,766 and a projected ending balance of Finance Director Shelton summarized various comparison charts and breakdowns of the The projected operating and non-operating revenues are 920,740,136. The consolidated operating and non-operating expenses with transfers out is projected at $19,204,468. Proprietary Funds Budget Detail: Mr. Shelton noted that support for the capital projects funds is generated from the operating funds. There is currently no carry-over for the capital project funds from year to year, only the amounts needed for the cost of projects Finance Director Shelton discussed each of the proprietary operating funds: the library's debt fund matures. 37% covered through grants. offsets as well. these grants. 11,261,192, with an overall positive of $1.3 million ending balance. proprietary funds. are included to cover the fiscal year. Fund Beginning Cash and Investment Balance $2 2,836,002 Ending Cash and Investment Balance $ 4,465,147 Water Fund Minutes oft the Hanover Borough Council Workshop/Finance 81 Personnel Committee November 20, 2024 Page4 4 Sanitary Sewer Fund RWWTI Fund Stormwater Authority Market House $ 5,198,911 648,595 $ 1,210,363 $ 6,895 $4 4,989,688 648,594 $1 1,157,762 $ 0 Proprietary Fund Debt Service and Capital Projects Detail: Finance Director Shelton discussed the proposed 2025 capital project costs involving storm sewers and drains, water system and wastewater collection and treatment, as well as proposed debt service and fund transfers. Debt service for all capital projects funds projected totals are When asked by Dr. Rupp, Public Works Director Grimm stated that vehicles are sold Council members thanked Finance Director Shelton for a very informative presentation. $6,668,084. under the Municibid Online Auction if they cannot be repurposed. CONSENT AGENDA It was moved by Mr. Reichart, seconded by Mrs. Funk to move the approval of the following items on the Consent Agenda to the Council agenda for consideration: a. Minutes: Approval of Minutes of October 16, 2024 b. Finance Reports: i. Approve Bills for Payment ii. Accept Monthly Financial Statement iii. Accept Report of Monthly Investments Fire Commission Budget: Approve 2025 Budget Approve Advertisement: Ordinances for 2025 i. 2025 Tax ordinance with $0.28 mill increase ii. 2025 Main Street allocation $40,000 iii. 2025 HEDC allocation $25,000 iv. Adoption of 2018 International Fire Code V. Adoption of 2018 International Property Maintenance Code f. Approve Resolution for Miscellaneous Fees: for 2025 g. Approve Advertisement: 2025 Public Meeting Schedule/Sunshine Law h. Approve Resolution: Adoption of York County Hazard Mitigation Plan d. Expiring Commission & Board Terms: Approve advertisement of expiring commission & board positions for interview 12/23/24 Minutes ofthel Hanover Borough Council Worksho/Fimance 8 Personnel Committee November 20, 2024 Page5 Centennial Court Final Subdivision Plan: Accept offer to grant extension for plan approval for 90 days until March 3, 2025. Motion carried. WATER RESOURCES DEPARTMENT Project Closeout: Planning and Engineering Director Mains noted that the Sheppard- Myers Dam Project has been closed out and the warranty period has begun. Council Update on PUCTariff Changes: Mr. Mains noted that thel lead serviceinventory has been submitted to the Department of Environmental Protection (DEP), which was due in October. Solicitor Shultis has begun to refine the tariff for the Public Utility Commission (PUC), toi incorporate language to prohibit the use of lead piping. Current PA Department of Environmental Protection (DEP) Drought Conditions: Mr. Mains noted we are currently in a drought watch. The reservoirs are at a 78% capacity, and voluntary conservation is a necessity. PLANNING & ENGINEERING DEPARTMENT 209 Primrose Lane: It was moved by Mrs. Funk, seconded by Mrs. Greenholt to move the acceptance of the agreement rescinding the previous short term rental use granted by the Zoning Hearing Board to the Council agenda for consideration. Motion carried. GOVERNANCE & POLICY Director Adler on an excellent job. Employee Handbook: Dr. Rupp and Council members commended Human Resources Itwas moved by Dr. Rupp, seconded by Mrs. Funk to move the approval of the final draft of the Hanover Borough Employee Handbook to the Council agenda for consideration. 2025 Council Goals: Dr. Rupp discussed the copy of the current goals that each committee received, and she encouraged committee members and chairs to review the goals and submit final goals for 2025. It was requested that the committee submit goals Motion carried. tol Manager Lewis sO that staff can compile the 2025 goals for January. Minutes of the Hanover Borough Council Worksho/mance 8 Personnel Committee November 20, 2024 Page 6 Resolution No. 1364 Rules of Public Meetings: Dr. Rupp stated that protocol for public comment needs to be clarified for consistency at all meetings. The first public comment period is designated for agenda items and the second public comment is for other comments. The rules for executive sessions need to be clarified to prohibit the use of electronic devices during executive sessions, and to only allow remote electronic access for executive sessions when reasonable accommodation is requested in advance, such as medical reasons, etc. ENHANCEMENT COMMITTEE Parking Meters: Mr. Hegberg stated that the Committee: requested the amendment of the parking ordinance to include a reduction by 2.5 daily parking hours, thereby changing the current hours of 8:30 AM - 8:30 PM to 8:30 AM to 6:00 PM. The estimated loss of parking revenue would be approximately $11,600 annually with the reduction of hours, Itwas moved by Mr. Hegberg, seconded by Dr. Rupp to recommend an advertisement to amend the ordinance to change the parking meter payment hours from 8:30 AM through 8:30 PM to 8:30 AM through 6:00 PM, to the Council agenda for consideration. Mr. Roland stated that the Market House is still metered during market use hours. Mr. Mains noted that an Environmental Protection Agency (EPA) change grant was submitted today, which focuses on the Market House including changes to the parking lot, as part of a broader project. Mr. Roland noted that a sign prohibits parking in the market house except on Saturday. Public Works Director Grimm noted that the parking app remains available on those meters during the week. Mr. Roland asked for the no parking sign be removed. Mr. Hegberg noted that all parking lots are currently under but iti is intended to stimulate downtown business traffic. Motion carried. review for any needed changes. FINANCE, PERSONNEL & ADMINISTRATION Mr. Kress read the following change orders aloud: Ratify Building Construction Change Order Updates - 33 Frederick Street: a. Change Order #8: $1,017.00 for change to door hardware cylinder cores from b. Change Order #11: $836.00 for addition of two (2) exit signs in the Community Best Cormax to Corbin Russwin Room as per RFI032 Minutes oft the Hanover Borough Council Workshop/Finance & Personnel Committee November 20, 2024 Page7 Change Order #10: ($1,669.00) for deletion of (2) HSS 8x61 beams and (4) antenna d. Change Order #13: $2,211.00 for concrete floor prep: in Secure File 044 Change Order #14: $3,206.00 for installation of 2' deep by 5'6" closet in Borough Change Order #16: $3,074.00 for replacement of doors C2 and 031 Change Order #18: ($3,190.00) to revise exterior lighting posts Manager Office Itv was moved by moved by Mr. Kress, seconded by Mr. Reichart to move the ratification of the building construction change orders for 33 Frederick Street to the Council agenda 2025 Budget: It wasi moved by Mr. Reichart, seconded by Mrs. Funk toi move the approval of the advertisement for the 2025 budget for public inspection from December 2, 2024 through December 13, 2024 to the Council agenda for consideration. Motion carried. REPORTS OF COUNCIL MEMBERS, COUNCIL COMMITTEES AND OTHER Vice-President Kress summarized the recent changes in the mailings for utility billings. Manager Lewis noted that anyone having trouble with the new online payment system Dr. Rupp is working on a meet and greet for Council Members, as suggested by citizen Mr. Kress clarified that the next Council meeting is Tuesday, November 26th. for consideration. Motion carried. PUBLIC BODIES should contact the office for help. Grace Mullen. More details to come. Additional Public Comment: Sandy Moul, General Delivery: Ms. Moul asked for clarification from the Library Board regarding divesting, merger and disinvestment. She felt that the response she was given prior was condescending and inadequate. She thought Mr. Guthrie's gift to the library was perpetual, and if not, she asked at what time it had changed and why. She wanted to know if donations intended for the Hormel Reading Room were being redirected to the Historical Society. She asked if Patricia Hegberg was working pro bono or as a paid Robert Holt, 513 High Street: Mr. Holt criticized the Council for an inadequate budget consultant. presentation meeting. Minutes oft the Hanover, Borough Council Workshop/Finance 81 Personnel Committee November 20, 2024 Page 8 Vice-President Kress reminded everyone of the following meetings, and thanked DECEMBER BOROUGH COUNCIL & COUNCIL COMMITTEE MEETINGS: everyone for theirattendance: *Public Safety Committee *Public Works & Facilities Committee Finance & Personnel Committee Hanover Borough Council unable to attend any meetings. ADOURNMENT: PM. Motion carried. Tuesday, December: 3, 2024 6:301 PM Wednesday, December 11, 2024 6:001 PM Wednesday, December 18, 20247:001 PM Monday, December 23, 20247:001 PM *C Committee Mectings will be cancelled if there is no business. Please advise the Borough Secretary ifyouz will be It was moved by Mr. Reichart, seconded by Mr. Roland to adjourn the meeting at 8:07 Respectfully submitted, DKLh Dorothy CFelix Borough Secretary