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Bethlehem Council MInutes
BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, December 16, 2014 – 7:00 PM
INVOCATION
Pastor Lori Kochanski, of Holy Trinity Lutheran Church, offered the invocation which was followed by the pledge to the flag.
PLEDGE TO THE FLAG
1. ROLL CALL
President Reynolds called the meeting to order. Present were Bryan G. Callahan, Eric R. Evans, Michael D. Recchiuti, Cathy Reuscher, Louis D. Stellato, Adam Waldron, and J. William Reynolds, 7.
President Reynolds announced that City Council met in Executive Session this evening Tuesday, December 16, 2014 at 6:00 pm in the Mayor’s Conference Room. The purpose of the Executive Session was to receive an update from the Administration on two pending litigation matters.
CITATIONS
Honoring William J. Guth, Jr.
President Reynolds presented a Citation to William J. Guth, Jr. on the occasion of his retirement from the EMS Bureau of the Fire Departmentafter 30 years of service. The Members of Council applauded Mr. Guth and wished him well in his retirement.
Honoring Nanette S. Snyder – Assistant City Clerk
President Reynolds presented a Citation to Nanette S. Snyder on the occasion of her retirement from the City Clerk’s Office as Assistant City Clerk after 22 years of service. The Members of Council applauded Ms. Snyder and wished her well in her retirement.
President Reynolds noted that Ms. Biedenkopf is at her last Meeting as City Clerk, and there will be comments about both Ms. Snyder and Ms. Biedenkopf later in the Meeting.
President Reynolds stated that the Citations for Patricia A. Alfonso, Michael D. Brown, Stephanie E. Lee, Jay D. Mosser, Jody L. Reppert, and Gordon F. Smith on the occasion of their retirements will be mailed to them since they were unable to attend the Meeting.
2. APPROVAL OF MINUTES
The minutes of November 5, 2014 and November 18, 2014 were approved.
3. PUBLIC COMMENT
Adding Resolution – Hiring Freeze
President Reynolds, informing the assembly that later in the Meeting he will accept a motion under Resolutions to add a Resolution to continue the hiring freeze until December 31, 2015, stated he will accept public comment on the matter at this time as well.
Pools
Hillary Kwiatek, 638 Spring Street, expressed Happy Hanukkah to those who celebrate. Ms. Kwiatek stated she is at the Meeting to speak in support of reconsidering the vote on the cuts in the Recreation budget that would close Westside and Saucon Pools. Ms. Kwiatek advised that when her son was 4 years old he learned how to swim at the City’s pools, and pointed out that recreational opportunities like the Westside and Saucon Pools that are walkable are especially important for low income neighborhoods. She mentioned that Calypso School serves a population that has a 48%poverty rate. She commented that middle and upper income families in her neighborhood south of Broad Street on the West Side can afford to go to Dorney Park, or join the Northwest Swim Club, and can drive their kids there. Ms. Kwiatek stressed that if the City closes pools like Westside the kids who she sees coming home when she gets home from work on her block on Spring Street will be forgotten about. She explained they will not get to Dorney Park, or the Northwest Swim Club, and added that Clearview Pool is a dangerous walk for anyone south of Broad Street. Ms. Kwiatek continued on to say she works full time and her husband works full time so they do not get to use the pool much in the summer because when they get home from work it is closed. She communicated that investing in the pools and even extending the hours into the evening would help with attendance. She suggested that, as occurred at Yosko Pool, there perhaps could be an investment in some splash park types of things. Ms. Kwiatek highlighted the fact that money was just spent in fixing up the Westside Pool a few years ago and if that pool is closed that is money down the drain and would be a waste of what was spent. Stating that the amount saved per taxpayer is about $1.65 Ms. Kwiatek thought the kids from the south part of the West Side deserve to have a pool nearby, and the cost of leaving them without this kind of amenity is something that cannot be calculated. Ms. Kwiatek, recalling that a Mayor told people that the Parks and Recreation Department kind of saved his life in many ways, observed that maybe the next Mayor will come from that part of town and may have had their life turned around by being able to learn to swim. Ms. Kwiatek, noting she is a Gen-ex parent, said they are the smallest generation so there are fewer kids around generally, but the millennials are starting to have their families and they want walkable neighborhoods and amenities like this in their neighborhoods. Ms. Kwiatek remarked that if City officials want to maintain Bethlehem as a family friendly place to be she hopes it can consider ways to keep the pools open, investigate ways to improve attendance, and maybe invest in splash parks, but stressed do not shut down pools because once something is closed it is hard to get it back open again. Ms. Kwiatek appreciated that Council will reconsider this matter tonight and hoped they will vote to put the money back in.
Richard Lopez, 1424 Elliott Avenue, noted he moved to this address 7 years ago, and one of the main reasons is that four homes down from him is the playground. When they moved in they had no children. When they had their first child the pool was closed for renovation but two years later it was reopened and now his child goes there every year. Mr. Lopez stated they had a second child who is 2 years old now and they want to take her to the pool this coming summer, as this past summer was a bit chilly. Mr. Lopez thought the pools should be open twice a week late at night on Friday and Saturday nights. Mr. Lopez remarked that as Ms. Kwiatek said people get home from work at 5:00 or 6:00 pm and the pools are closed but it is still 85 or 90 degrees outside. He stressed it would be great to have the pools open those nights so that parents could go to there with their kids and have fun. Mr. Lopez agreed that if the pools are closed they will never open back up.
Amusement Tax
Bridget George, 440 Heckewelder Place, expressed her disappointment that the amendment that Ms. Reuscher had brought forth on Thursday evening at the Final Budget Meeting is not going to be on the Agenda tonight after all of her colleagues spent a lot of time providing the City with all of the data in terms of what revenue would be lost if the minimum ticket price to be taxed was raised from $10 to $25 or from $10 to $40. Ms. George expressed that she understands why at this stage in the budget process there does not seem to be time to see where the City would get that missing revenue. However, Ms. George stressed she feels very strongly that from the moment the amusement tax was first introduced, and definitely in the time since it was first described how it worked and was talked about in October, that there has been time to really look at ways to structure the tax or to make an exemption for not for profits, or for not for profits of certain sizes. Ms. George felt there are many ways that the tax could be structured more fairly. Ms. George asserted that, as one of her not for profit colleagues has said, this is a regressive tax. Many others and many of the board members and donors have said this shows an extremely poor understanding of how not for profit organizations operate and how they contribute to the cultural and economic vitality of the City. Ms. George stated there are many cities that help support their not for profits, and many others that at least make sure that this kind of a tax does not hurt the not for profits. Ms. George said she sincerely hopes that the City of Allentown in its new renaissance has more vision than has been shown by Bethlehem’s amusement tax. Ms. George expressed that she is encouraged at least that Ms. Reuscher has assured her that in 2015 City Council and the Administration will still try to look at better ways to treat the not for profits for all they give to the City.
Dominic Haberstumpf, 311 Eighth Avenue, stated he knows on the surface it looks like not a lot of people go to the neighborhood pools but it is a big point. Mr. Haberstumpf advised that the pool is within walking distance and his family goes there on a daily basis. While commenting it is fun at Dorney Park, Mr. Haberstumpf pointed out the fuel costs to get there and the stress of watching your children among thousands of others versus the Westside pool where it is nice and quiet and was just redone. Mr. Haberstumpf explained when the pool was redone it was a matter of awareness, since no one knew it was reopened and the information was passed by word of mouth. He talked to half a dozen people and when he told them it was open they replied they did not even know the pool was done and was open. He expressed if there was more community involvement and trying to reach out to people that would help. Mr. Haberstumpf noted there are many apartments in the area that is a highly residential area and the pool is in walking distance for people who live there. Mr. Haberstumpf expressed that he seriously is asking Council to reconsider the thought of closing these neighborhood pools.
Patricia Fernandez, 621 West Market Street, stated she is proud to live here but is concerned about the pools and her neighbors are also. Communicating it is cold outside now so no one is thinking about swimming, Ms. Fernandez highlighted the fact that this matter could go by so easily, and no one would know until parents have to tell their kids in the summer that their pool is closed. Ms. Fernandez pointed out everyone talks about these pools being underutilized, and kids turning to their electronic devices all the time, but she stressed if the City closes the pools it will be feeding right into that. Ms. Fernandez stated the pool is the heart of the West Side park and if it is not opened it will be abandoned. She informed the Members that when the kids are playing, they have towels on, they are there because of the pool, and they love the pool. Ms. Fernandez believed there is enough talent in the area to develop an advisory group to start doing things. Ms. Fernandez noted she did not know the pool was reopened until she heard through word of mouth. She stressed the City needs to get the word out that neighborhood pools are there and the kids who live in the area are going to those pools. People do not see SUV’s parked outside the Westside Pool because they see kids walk there. Ms. Fernandez thought the pools are not open long enough, there are lifeguards sitting around because there are not enough kids there since people do not know the pool exists. Ms. Fernandez, expressing concern about safety, said the pool brings people in but if the pool is not open there may be just a few people playing tennis sometimes, and it might end up being more expensive because there will need to be patrolling it to make sure it is safe. Ms. Fernandez, stressing this is the heart of the park, said she hopes the pool is kept open, and remarked the kids need it and it is needed in their neighborhood. Ms. Fernandez noted recently she had to put a certain tree in her front yard but she did it gladly because she knows it adds to the community. She communicated that the City should look into these pools and see what can be done since money was just put into the Westside Pool. Ms. Fernandez expressed the City should keep it open and let the kids have the experience that is not just about swimming and physical recreation but it is about learning who your neighbors are, talking to them, and developing long term relationships. She hoped that Council reconsiders the funding of the pools.
Bruce Haines, 63 West Church Street, said he echoes what Ms. George talked about. Stressing that the Amusement Tax is really is a regressive tax, Mr. Haines pointed out that at one of the budget meetings he proposed that the tax should really start at $40 and not be capped at $40. He said this is because it really should be targeted at people who are going to the high dollar events, and who truly outlay a lot of money for a high dollar event. Mr. Haines remarked someone who is going to a $100 event in the City pays Ticketmaster $14 to go to that event and that cost does not keep them away, so another $5 or 5% to the City of Bethlehem will certainly not be something that will turn them off from going to that event. Mr. Haines emphasized that, meanwhile, the under $40 tickets are being taxed that basically are mostly the non-profits’ events that are not the high dollar events, and not the events that people are coming from out of town for. Mr. Haines agreed with Ms. George that the Amusement Tax is truly regressive and should be revisited. In addition, Mr. Haines said that comp tickets should be pursued and looked at as a loss of revenue by the City, because the City is missing by not collecting the tax on comp tickets that are given to people to go to events. He presumed that right now the City is not collecting a tax on a comp ticket so there is a lot of revenue to be had there, and a lot of revenue to be had from the high dollar events as opposed to targeting the $40 and under tickets.
4. OLD BUSINESS.
A. Members of Council
None.
B. Tabled Items
None.
C. Unfinished Business
None.
5. COMMUNICATIONS
A. Executive Director of Bethlehem Parking Authority – Amendments to Article 531 – Parking Generally and Article 533 – Parking Meters
The Clerk read a memorandum dated December 1, 2014 from Kevin Livingston, Executive Director of the Bethlehem Parking Authority, requesting that City Council consider increasing the parking fines by amending Codified Ordinance Article 531 in accordance with the attached schedule and supporting information. The parking fine increases will help increase compliance with the Ordinances dealing with parking. The increase in compliance will increase turnover of parking meter spaces that will have a positive effect for merchants in the City, and increase in compliance will increase spaces available for residential parking permit holders. The meter fine increases recommended are not to increase revenue to the Parking Authority, but rather to more effectively manage the Parking Authority while at the same time positively affecting the overall operations and management of parking. The long term effect would be revenue neutral to the Parking Authority.
President Reynolds stated he will refer the matter to the Public Safety Committee.
B. Legal Assistant – Records Destruction Resolution – Controller’s Office
The Clerk read a memorandum dated December 9, 2014 from William A. Karras, Esq., Legal Assistant, requesting that Council consider a Resolution for the destruction of records from the Controller’s Office listed on the attached exhibit under the Municipal Records Retention Act. Attorney Karras reviewed the Act and the records fall within categories where destruction is permitted.
President Reynolds stated the Resolution will be listed on the January 6, 2015 Agenda.
C. Director of Human Resources – Recommendation of Award – Employee Assistance Services
The Clerk read a memorandum dated December 9, 2014 from Michelle Cichocki, Director of Human Resources, recommending that Preferred EAP of Allentown provide Employee Assistance Program Services at an estimated price of $14,197.08 a year from a term of January 1, 2015 to December 31, 2015.
President Reynolds stated that Resolution 9 G is on the Agenda.
D. Chief of Police – Police Records Room – Increase in Fees
The Clerk read a memorandum dated December 11, 2014 from Mark DiLuzio, Chief of Police, requesting to increase the processing fees in the Police Records Room. The fees are currently $10 and have not been increased in over 10 years. The increase would rise to $15 for reports and there is a separate fee for Right to Know Requests and Call requests.
President Reynolds stated that Resolution 9 F is on the Agenda.
E. City Solicitor – Use Permit Agreement for Public Property – ArtsQuest – PEEPS Fest with 5K and Fireworks
The Clerk read a memorandum dated December 11, 2014 from William P. Leeson, Esq., City Solicitor, attached to which was a proposed Resolution and associated Use Permit Agreement for Council’s consideration for PEEPS Fest with a 5K and Fireworks.
President Reynolds stated that Resolution 9 J is on the Agenda.
F. Assistant City Solicitor – Usage Fees for Bethlehem Police Department Shooting Range
The Clerk read a memorandum dated December 8, 2014 from Matthew J. Deschler, Esq., Assistant City Solicitor, attached to which was a proposed Resolution for Council’s consideration for Usage Fees for the Bethlehem Police Department Shooting Range.
President Reynolds stated that Resolution 9 K is on the Agenda.
G. Director of Budget and Finance – Escrow Temporary Borrowing – General Fund
The Clerk read a memorandum from Mark W. Sivak, Director of Budget and Finance, advising that there may need to be a temporary borrowing of up to $1.4 million from the Escrow Fund to cover the first payroll of 2015 and requesting approval for the temporary borrowing. The amount borrowed will be paid back when the gaming money is received at the end of January 2015.
President Reynolds stated that Resolution 9 L is on the Agenda.
6. REPORTS
A. President of Council
1. Councilmanic Appointment – Cathy Reuscher – Library Board
President Reynolds appointed Cathy Reuscher to membership on the Library Board, to fill the unexpired term of Olga Negron who resigned effective until August 2014. The appointment is effective until January 2017. Mr. Recchiuti and Mr. Waldron sponsored Resolution 2014-246 to confirm the appointment.
President Reynolds pointed out that there was a decrease in the amount of seats on the Library Board after Lower Saucon Township had ended its participation and the City of Bethlehem lost a seat. At the time, it was a seat filled by a City Council Member. President Reynolds explained that since Ms. Negron left the Board this was an opportunity to put a Council Member back on the Library Board. President Reynolds, noting that Ms. Reuscher has attended the Library Board meetings in 2014, said this was an opportunity to have a Member of Council back on the Board as was traditionally the case.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
2. Councilmanic Appointment – Emil Signes – Library Board
President Reynolds reappointed Emil Signes to membership on the Library Board effective until January 2018. Mr. Recchiuti and Mr. Waldron sponsored Resolution 2014-247 to confirm the appointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
3. Councilmanic Appointment – Aurea Ortiz – Library Board
President Reynolds appointed Aurea Ortiz to membership on the Library Board to fill the seat of April Herrity whose term expires January 2015. The appointment is effective until January 2018. Mr. Recchiuti and Mr. Waldron sponsored Resolution 2014-248 to confirm the appointment.
President Reynolds noted he received a call from Ms. Ortiz who wanted to be at the Meeting tonight but was unable to do so, and who said she certainly appreciates the opportunity to serve.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
B. Mayor
1. Administrative Order – Michael Colon – Alternate to the Civil Service Board
The Mayor appointed Michael Colon as an Alternate to the Civil Service Board to replace William Lee. The appointment is effective through October 2018. Mr. Waldron and Mr. Evans sponsored Resolution No. 2014-249 to confirm the appointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher and Mr. Reynolds, 7. The Resolution passed.
2. Administrative Order – Deirdre Sumpter – Bethlehem Sister City Commission
The Mayor reappointed Deirdre Sumpter to membership on the Bethlehem Sister City Commission effective through December 2017. Mr. Waldron and Mr. Evans sponsored Resolution No. 2014-250 to confirm the reappointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
3. Administrative Order – Sandra Gillen – Fine Arts Commission
The Mayor reappointed Sandra Gillen to membership on the Fine Arts Commission effective through December 2017. Mr. Waldron and Mr. Evans sponsored Resolution No. 2014-251 to confirm the reappointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
4. Administrative Order – Patricia Kandianis – Fine Arts Commission
The Mayor reappointed Patricia Kandianis to membership on the Fine Arts Commission effective through December 2017. Mr. Waldron and Mr. Evans sponsored Resolution No. 2014-252 to confirm the reappointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher and Mr. Reynolds, 7. The Resolution passed.
5. Administrative Order – Ellen Foscue Johnson – Fine Arts Commission
The Mayor reappointed Ellen Foscue Johnson to membership on the Fine Arts Commission effective through December 2017. Mr. Callahan and Mr. Evans sponsored Resolution No. 2014-253 to confirm the reappointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher and Mr. Reynolds, 7. The Resolution passed.
6. Administrative Order – Dolores Yaschur Sproule – Fine Arts Commission
The Mayor reappointed Dolores Yaschur Sproule to membership on the Fine Arts Commission effective through December 2017. Mr. Callahan and Mr. Evans sponsored Resolution No. 2014-254 to confirm the reappointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher and Mr. Reynolds, 7. The Resolution passed.
7. Administrative Order – Dennis R. Connell – Codes Board of Appeals
The Mayor reappointed Dennis R. Connell to membership on the Codes Board of Appeals effective through December 2017. Mr. Callahan and Mr. Evans sponsored Resolution No. 2014-255 to confirm the reappointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher and Mr. Reynolds, 7. The Resolution passed.
8. Administrative Order – Bryan L. Ritter – Codes Board of Appeals
The Mayor reappointed Bryan L. Ritter to membership on the Codes Board of Appeals effective through December 2017. Mr. Callahan and Mr. Evans sponsored Resolution No. 2014-256 to confirm the reappointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher and Mr. Reynolds, 7. The Resolution passed.
9. Administrative Order – A. Flexer Illick – Codes Board of Appeals
The Mayor reappointed A. Flexer Illick to membership on the Codes Board of Appeals effective through December 2017. Mr. Callahan and Mr. Evans sponsored Resolution No. 2014-257 to confirm the reappointment.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher and Mr. Reynolds, 7. The Resolution passed.
7. ORDINANCES FOR FINAL READING.
A. Bill No. 35 – 2014 – Adopting the 2015 General Fund Budget
The Clerk read Bill No. 35 - 2014, Adopting the 2015 General Fund Budget, on Final Reading.
Mr. Callahan thanked everyone who came out to talk about the pools. Mr. Callahan noted he teaches at Freedom High School and this week alone a dozen or so students who live on the South Side talked to him and implored him not to close these pools and to change the vote. He explained to them the whole process, the low turnout at the pools, and the Budget, but they were so passionate about it. Mr. Callahan advised he has also spoken to a few people this week and appreciates all of the comments. Mr. Callahan said he looked at the $1.75 savings and he thinks right now it would be a smart thing to reinstate those funds. He continued on to say that some of the things that came up about advertising the pools and the night swimming would be great ideas. Pointing out that the Recycling Bureau has a flyer that goes out about leaf collection, Mr. Callahan observed there are other flyers the City could use to do advertising.
Mayor Donchez commented there will probably be discussions about revamping the recycling flyer, and the City could also put in something regarding the Parks and Pools.
Mr. Callahan thought there has to be a way the City can get the word out about when the pools are open. Mr. Callahan commented that he would move to reconsider the vote on the amendment.
President Reynolds noted that, before Mr. Callahan would make that motion, Council needs to first vote on the amendment to Bill No. 35 as result of the amendment from Thursday’s Final Budget Meeting, and there can be discussion on Bill No. 35 at that time. President Reynolds believed what Mr. Callahan is referring to would be an amendment to what had come forth at the Final Budget Hearing last Thursday. With that being the case, the Clerk would need to read Amendment 1 to Bill No. 35 that is a result of the amendments at the Final Budget Meeting on December 11.
Amendment 1 – Bill No. 35 – 2014
The Clerk read Amendment 1 to Bill No. 35, sponsored by Ms. Reuscher and Mr. Evans, as follows:
That SECTION 1. which reads as follows:
SECTION 2. Appropriations in the sum of [Seventy-One Million, Three Hundred Ten Thousand, ($71,310,000)] Dollars are hereby made from the General Fund as follows:
To the Department of Community and Economic Development:
Personal Services [$3,132,747]
Materials and Supplies 105,393
Purchase of Services [ 1,880,109]
Equipment 6,200
TOTAL [$5,124,449]
To the Department of Parks and Public Property:
Personal Services [$2,742,462]
Materials and Supplies [241,800]
Purchase of Services [ 1,026,920]
Equipment 75,424
TOTAL [$4,086,606]
To the Department of Public Works:
Personal Services $3,575,524
Materials and Supplies [371,088]
Purchase of Services 2,348,403
Equipment 39,050
TOTAL [$6,334,065]
To the Department of Police:
Personal Services $12,612,095
Materials and Supplies [591,329]
Purchase of Services 2,290,971
Equipment 190,060
TOTAL [$15,684,455]
To General and Civic Expenses:
Office Supplies, Postage, Equipment Maintenance,
Communications, and Continuous Improvement $ 184,000
Medical Insurance, Social Security, Unemployment Comp.,
Workers Comp., Pensions, Accumulated Sick Leave,
Heart and Lung Act, Defined Contribution Plan Match $17,691,531
Landfill Transfer $ 878,292
Refunds and Prior Year’s Encumbrances $ 24,000
Unforeseen Contingencies, Professional Services Expenses, [$1,461,602]
Department Contracts, Trust Payments, City Insurance
Package
Memorial Day Decorations, Fourth of July Celebration,
Halloween Parade, Music Fund $ 71,900
U.S. Conference of Mayors $ 5,269
PA League of Cities Dues, Fine Arts Commission, [$ 74,800]
City’s 275th Anniversary
Library $ 1,277,082
Debt Service $ 5,388,165
TOTAL [$27,056,641]
shall be amended to read as follows:
SECTION 2. Appropriations in the sum of Seventy-One Million, Ninety-Two Thousand, One Hundred Sixty-One ($71,092,161) Dollars are hereby made from the General Fund as follows:
To the Department of Community and Economic Development:
Personal Services $3,084,128
Materials and Supplies 105,393
Purchase of Services 1,791,217
Equipment 6,200
TOTAL 4,986,938
To the Department of Parks and Public Property:
Personal Services $2,690,644
Materials and Supplies 228,800
Purchase of Services 1,022,518
Equipment 75,424
TOTAL $4,017,386
To the Department of Public Works:
Personal Services $3,575,524
Materials and Supplies 366,088
Purchase of Services 2,348,403
Equipment 39,050
TOTAL $6,329,065
To the Department of Police:
Personal Services $12,612,095
Materials and Supplies 586,329
Purchase of Services 2,290,971
Equipment 190,060
TOTAL $15,679,455
To General and Civic Expenses:
Office Supplies, Postage, Equipment Maintenance,
Communications, and Continuous Improvement $ 184,000
Medical Insurance, Social Security, Unemployment Comp.,
Workers Comp., Pensions, Accumulated Sick Leave,
Heart and Lung Act, Defined Contribution Plan Match $17,691,531
Landfill Transfer $ 878,292
Refunds and Prior Year’s Encumbrances $ 24,000
Unforeseen Contingencies, Professional Services Expenses, $ 1,500,494
Department Contracts, Trust Payments, City Insurance
Package
Memorial Day Decorations, Fourth of July Celebration,
Halloween Parade, Music Fund $ 71,900
U.S. Conference of Mayors $ 5,269
PA League of Cities Dues, Fine Arts Commission, $ 34,800
City’s 275th Anniversary
Library $ 1,277,082
Debt Service $ 5,388,165
TOTAL $27,055,533
Voting AYE on Amendment 1 to Bill No. 35 - 2014: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Amendment passed.
Amendment 2 – Bill No. 35 – 2014
Mr. Callahan moved to reconsider the vote on the amendment that passed at the Final Budget Meeting on December 11, 2014 that decreased the Building Maintenance Electric Account, Recreation/Temporary Help, Chemicals/Operating Supplies Accounts and decreased the Municipal Recreation Account by a total net decrease of $47,868 in order to reinstate funding of $47,868 for the Westside and Saucon Pools. President Reynolds seconded the amendment.
Mr. Recchiuti stated he did not support the amendment on Thursday night and he is glad that Mr. Callahan has reconsidered his vote. Mr. Recchiuti noted that, as some of the people who spoke tonight, his niece lives in the neighborhood on the West Side and when she heard about this she let him know about it. She and her friends go there consistently, they live in the area where Ms. Kwiatek spoke of earlier. Mr. Recchiuti noted that area is a tight knit neighborhood and Westside Pool is one pool that he thinks most of the people who go there walk to, and not many cars are seen there. Restating he is glad that Mr. Callahan has reconsidered this tonight, Mr. Recchiuti said he will be supporting his amendment.
Mr. Evans asked whether the reconsideration is for the opening of both pools or just the Westside Pool.
Mr. Callahan replied it is for both the Westside Pool and the Saucon Pool.
Mr. Evans inquired whether the motion to reconsider to place the amounts for both pools back into the budget would require 5 or 4 votes.
John F. Spirk, Jr., Esq., City Council Solicitor, advised under Robert’s Rules motions to reconsider are always simple majority no matter what the reconsideration is for.
Mr. Evans commented the reconsideration takes 4 votes and noted that adding the expenses back in would be also 4 votes.
Attorney Spirk replied that is correct since it has not been taken out yet and it has not increased the Mayor’s Proposed Budget that City Council has received.
Mr. Evans, restating his comments from the Final Budget Meeting, pointed out that if Mr. Callahan is bringing back the amounts for the pools obviously that will change the vote since it was 4 to 3 the last time, and Mr. Callahan is going to flip his vote the other way. Mr. Evans reiterated his points why he proposed the closure of the two pools. Mr. Evans explained his point was that the City needs to look at many things to do differently in the coming years. In looking at the 5 year plan, this was to save $50,000 but it is a reoccurring savings in the 5 year plan, and it is about $250,000 for these two pools. Mr. Evans expressed that City Council and the Administration should consider that the City loses a quarter of a million dollars a year on the pools in general and that is a very large number. Mr. Evans pointed out that Council made a number of difficult decisions on the Proposed 2015 Budget that will be voted on tonight, including public safety, and dealing with the Amusement Tax and how the non-profits are impacted. Mr. Evans stressed that Council will hear about it, whether it is an increase in fees, or increase of taxes, or decrease of expenses. Mr. Evans insisted that Council needs to continue to think of what is best for the City as a whole. He commented there are other options and said it is a shame that these pools are empty. Expressing his agreement with comments made this evening that there were some nice days this past summer although it did not set records for heat, Mr. Evans highlighted the fact that when he drove by these pools they did look closed. Mr. Evans communicated that usually a pool sells itself, it is a big structure, and has been there for decades. Agreeing the City certainly can afford to advertise and will do what it can, Mr. Evans stated that Mr. Carp and the Recreation Department worked the best they can to get the groups out but times have changed. He continued on to say that the City has more pools per capita than anyone else around, and when they are hemorrhaging money to keep all 6 open is a bit of a stretch. Mr. Evans noted this will disappoint some people but many things Council is doing tonight are disappointing some people. Mr. Evans thought that to have a pool with low attendance year in and year out for a number of years is something he would not support for those reasons.
President Reynolds commented that while he did second the amendment in looking at the matter it was a quick decision that appears to have been made. Affirming that Council made the decision at the Final Budget Meeting on December 11, President Reynolds said he always applauds his colleagues or anyone in the Administration when they look for ways to cut costs, but with this quick decision there is no plan as to what to do with these facilities in the future. President Reynolds thought that by putting the money back into the 2015 Budget and planning on having the pools open in 2015 the Administration will have time to come up with a plan during 2015 about the future of these facilities, as it did in the past with Yosko Pool. He recalled that when Yosko Pool was shut down it was the plan to put money aside in Non-Utility Capital Fund and moving the pool in a different direction. When looking at the attendance that is a problem, but President Reynolds stated that obviously options should be on the table for how the City can reuse those particular facilities. President Reynolds believed that by putting the money back into the Budget what Mr. Callahan is hoping to do is to keep the options open for the Administration. By putting the money back into the Budget, the Administration can come back to Council in a few months, there can be Committee meetings about the matter and the Administration can explain their plan. Noting that the Administration agreed on December 11 with the idea of closing these two particular pools, President Reynolds said but if they come back with a plan and say the best use of these facilities is to turn them into splash parks or something else, then the money that will have been reinstated to go towards these pools could provide some of the funding to make those changes. President Reynolds emphasized that, if Council would vote to take the money out of the Budget, it would result in essentially not just shutting down Westside Pool and Saucon Pool but would also be decreasing the likelihood that something could happen there with some type of reuse. President Reynolds, expressing his understanding about the necessity to find ways to attract more people and the desire to find ways to cut expenses, thought it is hard to move forward with voting to cut this funding without a plan in place. President Reynolds, communicating that might be something the Recreation Commission may choose to discuss in the future, or there could be a Parks and Public Property Committee Meeting about it, said he is sure the Administration has their own feelings about what to do with these facilities. President Reynolds did not think it is wise to cut funding for the pools in this manner and advised he will be supporting Mr. Callahan’s amendment.
Mr. Stellato asked how much money is going to be put back in the fund.
President Reynolds replied Mr. Callahan’s amendment reinstates the amount of $47,868 that was cut at the Final Budget Meeting last Thursday, December 11. As was noted before it is about $1.60 per person, but the number would be $47,868.
Mr. Callahan expressed his agreement with Mr. Evans and President Reynolds. Mr. Callahan communicated that, while everyone may want to have budget cuts and he would like to cut the budget as much as possible, many times it is thought that the youth today are apathetic about things and they do not care. However, Mr. Callahan elucidated that he was stunned and shocked by how many kids talked to him about this at school. Although he does not teach the west side kids, Mr. Callahan pointed out many of the students are south side kids. Mr. Callahan noted one of the reasons and probably the number one reason for this is the concern of safety. Pointing out that side of the South Side is very busy with traffic, Mr. Callahan said when he looked at the approximate $1.65 per taxpayer and the number of kids that according to the data is 42 kids at Saucon Park, he thought about a hot summer day and their having to walk to Yosko Park to go swimming and the risk of injury. Mr. Callahan believed this is more of a safety matter for him. When thinking about kids being in jeopardy of being hit by a car because there is no cross walk, Mr. Callahan stated that for $1.65 it does not make sense. Mr. Callahan commented this is the main reason for his amendment.
Mr. Recchiuti, while agreeing that cuts are important, said he did some quick math and the cuts would still be about $148,000 from the General Fund Budget that is around 34% of the General Fund tax increase. Noting the tax increase overall was proposed at .9 mills, Mr. Recchiuti noted that .67 mills is dedicated to the 911 Fund, and this would actually cut about 34%. Commenting it was at 44% and now is about 34%, Mr. Recchiuti pointed out Council is still making a significant cut in the General Fund, the tax portion of the dedicated tax increase. Mr. Recchiuti thought it is significant to put it in the perspective that Council is cutting the Budget significantly for tax increase purposes.
Voting AYE on Amendment 2: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 6. Voting NAY: Mr. Evans, 1. The Amendment passed.
President Reynolds stated Council will now have discussion on Bill No. 35, as amended. Reminding Council that this is the General Fund portion of the Budget, President Reynolds noted the Members just talked a lot about the pools and the amendments, but he will take any comments about the General Fund.
Mr. Recchiuti noted that part of the budget process Council went through this time was a little different than in the past. Mr. Recchiuti observed that the Members took a more hands on approach and started much earlier in the process this year than in the past. Council Members met with officials in the Administration in the summer. Mr. Recchiuti, recalling the Mayor used the word austere when he presented the Proposed 2015 Budget, said it was an austere Budget. Mr. Recchiuti stated there are a few concerns that he still has going forward. Noting there was an early retirement incentive offered by the Administration, Mr. Recchiuti advised he does not think the Administration has totally determined what the impact of that is going to be in next year’s Budget as far as filling positions. He commented that will be addressed later in the evening. Mr. Recchiuti thought it is important to continue the dialogue with Council and the Administration going forward in 2015 as far as the Budget is concerned. Mr. Recchiuti remarked that, although Council is voting on the 2015 Budget tonight, it is far from over.
President Reynolds thanked the Administration and especially Mr. Brong, Mr. Sivak, Mayor Donchez and the Department Heads who were more than willing for several months to sit down with Members of Council and discuss different ideas. President Reynolds, acknowledging that the process was certainly not easy, noted there has been shared pain in the Budget. As he has said before, President Reynolds pointed out that one of the challenges is to balance the need to provide services while at the same time being as financially responsible as possible. President Reynolds thanked the Administration and his colleagues on Council for putting much effort in this Budget process, and also the Department Heads for reaching out to Council and being willing to work with Council.
Mayor Donchez commented that this dialogue will continue throughout 2015.
Voting AYE on Bill 35-2014 as Amended: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 6. Voting NAY: Mr. Evans, 1. Bill No. 35 - 2014, now known as Ordinance No. 2014-35, was adopted on Final Reading.
B. Bill No. 36 – 2014 – Adopting the 2015 Water Fund Budget
The Clerk read Bill No. 36 – 2014, Adopting the 2015 Water Fund Budget, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 36 – 2014, now known as Ordinance No. 2014-36, was adopted on Final Reading.
C. Bill No. 37 – 2014 – Adopting the 2015 Sewer Fund Budget
The Clerk read Bill No. 37 – 2014, Adopting the 2015 Sewer Fund Budget, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 37 - 2014 now known as Ordinance No. 2014-37, was adopted on Final Reading.
D. Bill No. 38 – 2014 – Adopting the 2015 Golf Course Enterprise Fund Budget
The Clerk read Bill No. 38 – 2014, Adopting the 2015 Golf Course Enterprise Fund Budget, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 6. Voting NAY: Mr. Evans, 1. Bill No. 38 – 2014, now known as Ordinance No. 2014-38, was adopted on Final Reading.
E. Bill No. 39 – 2014 – Adopting the 2015 Liquid Fuels Fund Budget
The Clerk read Bill No. 39 – 2014, Adopting the 2015 Liquid Fuels Fund Budget, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 39 – 2014, now known as Ordinance No. 2014-39, was adopted on Final Reading.
F. Bill No. 40 – 2014 – Adopting the 2015 Capital Budget for Non-Utilities
The Clerk read Bill No. 40 – 2014, Adopting the 2015 Capital Budget for Non-Utilities, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 40 - 2014 , now known as Ordinance No. 2014-40, was adopted on Final Reading.
G. Bill No. 41 – 2014 – Adopting the 2015 Capital Budget for Water Utilities
The Clerk read Bill No. 41 – 2014, Adopting the 2015 Capital Budget for Water Utilities, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 41 – 2014, now known as Ordinance No. 2014-41, was adopted on Final Reading.
H. Bill No. 42– 2014 – Adopting the 2015 Capital Budget for Sewer Utilities
The Clerk read Bill No. 42 – 2014, Adopting the 2015 Capital Budget for Sewer Utilities, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 42 – 2014, now known as Ordinance No. 2014-42, was adopted on Final Reading.
I. Bill No. 43 – 2014 – Adopting the 2015 Community Development Budget
The Clerk read Bill No. 43 – 2014, Adopting the 2015 Community Development Budget, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 43 – 2014, now known as Ordinance No. 2014-43, was adopted on Final Reading.
J. Bill No. 44 – 2014 – Adopting the 2015 9-1-1 Fund Budget
The Clerk read Bill No. 44 – 2014, Adopting the 2015 9-1-1 Fund Budget, on Final Reading.
President Reynolds confirmed there has been a lot of discussion over the past several months about the 911 Fund and the future of the 911 System. In looking at some of the most painful decisions that Council is forced to make tonight, President Reynolds said much of it is related to what is going on with the City’s 911 System. President Reynolds pointed out the one thing that everyone can agree on is the level of service that the current 911 System provides. When reviewing the numbers that have been talked about and the declining State revenues that have come into the 911 System, President Reynolds highlighted the fact that from 2010 to 2013 approximately 75% of the City’s costs for the 911 System were covered by State revenues. But, in 2014 and projected in 2015, President Reynolds emphasized that the percentage is closer to 55% or 56%. He pointed out that, obviously, the majority of the tax increase being considered tonight is going towards the 911 System. President Reynolds noted although it has been talked about before, maybe it has not been mentioned as often as some feel it should have been. President Reynolds stressed that the predicament the City has been put in by the State being unwilling to do their job, that is not a Democratic or Republican issue, comesdown to probably the most basic service that government can provide which is the 911 System. President Reynolds remarked that the City is stuck at the end of the line, similar to what the State has done with public education, to make the difficult choices about the future of the City’s 911 System that is not a service that has any connection any ideology at all but something as simple as dialing 9-1-1. President Reynolds, observing the City has tough decisions going into the future, commended the Administration for having discussions about the 911 Fund. However, President Reynolds advised he remains pessimistic that into the future someone in Harrisburg will necessarily provide the City with the necessary tools to provide a service for which the State has covered most of the costs, although there will be a new Administration in Harrisburg next year. President Reynolds highlighted the fact that now City officials, and more specifically the citizens of Bethlehem, are getting stuck with the bill because the State of Pennsylvania and the leaders in Harrisburg cannot make changes almost universally agreed to across Pennsylvania as far as cities and counties are concerned in the 911 System that needs reform. President Reynolds highlighted the fact that for years and years it has not happened. Although there may be somewhat more optimism since there will be a new Administration in Harrisburg next year, President Reynolds pointed out there is uncertainty into the future, as well as the fact that Council is considering a tax increase tonight, a majority of which is the fact that the City’s 911 System needs revenue. President Reynolds stressed that, in the future if that revenue does not come from the State and if they do not step up and start providing the percentage they have provided, then all options are going to be on the table, and commented he does not think the City of Bethlehem residents are completely aware of that. President Reynolds commented that, going into the future, he is not sure what the City of Bethlehem is going to do.
Mr. Recchiuti thought President Reynolds stated the facts on the matter and there is not much more to add, but he wanted to put a number to it. Mr. Recchiuti commented as of now the tax increase next year is approximately $1.3 million, and out of that $1 million is going to the 911 Fund. Mr. Recchiuti pointed out it is important to note the City of Bethlehem citizens are now paying an additional $1 million on top of the $1 million they always pay, so it is almost $2 million of tax money going to the 911 Fund. Mr. Recchiuti highlighted the fact that citizens already are paying State tax money in their phone bills to pay for the 911 system. He thought it is very important that the citizens know there will be an open discussion sometime in 2015 about this issue, and to let everyone know this is why the situation is happening. Mr. Recchiuti stressed it is not the Administration’s fault, it is not Council’s fault, it is the fault of Harrisburg and it is a problem. He observed that the State cut a lot of taxes and pushed everything onto the local boards, school boards, and now City Council. Mr. Recchiuti believed this is something that City officials definitely have to discuss in the future to see what direction the City has to go in.
Mr. Callahan stated he appreciates the letter that Mayor Donchez and Mayor Pawlowski sent to the State representatives, and wondered if the City has heard back from them.
Mayor Donchez replied he received a written response from Representative Schlossberg and a verbal response from Representative McNeill, and he discussed the issue briefly last week with Representative Samuelson.
Mr. Callahan asked if there are any proposals for any new State legislation for the 911 system.
Mayor Donchez responded the City is waiting for draft legislation and hopefully that will be introduced in the new session.
Mr. Stellato pointed out this is a very difficult decision for him being a senior citizen on a fixed income. Mr. Stellato stated that he looked at all the issues and listened to all the problems and he will support the Bill because no one wants to call 911 and have no one answer the phone. Being a senior citizen, Mr. Stellato emphasized that he did not want to see any taxes go up but he sees no alternative.
President Reynolds thought Mr. Stellato summed it up very well as far as the potential loss of service to the City of Bethlehem residents. President Reynolds denoted that budget stories about other cities and counties across Pennsylvania reflect that almost universally one of their cost drivers is their 911 systems. President Reynolds communicated this is across the State of Pennsylvania and he believed it is unconscionable that it has gotten to this point.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 44 – 2014, now known as Ordinance No. 2014-44, was adopted on Final Reading.
K. Bill No. 45 – 2014 – Fixing the 2015 Tax Rate for All City Purposes
The Clerk read Bill No. 45 – 2014, Fixing the 2015 Tax Rate for All City Purposes, on Final Reading.
President Reynolds advised there was a miscommunication between Council and the Administration as far as the cuts made at the Final Budget Meeting. Affirming that the City property tax is broken down into different categories including General City Purposes, Public Safety, 911, Recreation, Debt and so on, President Reynolds noted it was the desire of Council and he thinks that it was probably not made clear and that includes himself to have those cuts go towards a decrease in the tax for General City Purposes. President Reynolds stated he would make a motion to correct the action taken at last Thursday’s Final Budget Meeting so that the tax decrease will be moved to General City Purposes.
Mr. Recchiuti seconded the motion.
Mr. Evans asked if there are new numbers.
President Reynolds stated the Clerk will read the Amendment to Bill No. 45 that reduces the General City Purposes tax as a result of the Final Budget Meeting on Thursday, December 11.
The Clerk read amendment No. 1 to Bill No. 45, as follows:
THAT SECTION 1. which reads as follows:
SECTION 1. That a tax be paid and the same is hereby levied on all persons and real property within the said City subject to taxation for City purposes for the fiscal year, as follows:
Northampton County
Tax for the year 2015 for General City purposes, the sum of [ nine and sixty-eight
hundredths (9.68) ] mills on each dollar of assessed valuation.
For Public Safety purposes, the sum of one and six hundredths (1.06) mills on
each dollar of assessed valuation;
For 9-1-1 purposes, the sum of one and forty-four hundredths (1.44) mills on each dollar of
assessed valuation;
For Recreation purposes, the sum of ninety-four hundredths (.94) mills on each
dollar of assessed valuation;
For Debt purposes, the sum of one and ninety-eight hundredths (1.98) mills on each
dollar of assessed valuation;
For Landfill Debt purposes, the sum of four tenths (.40) mills on each dollar of
assessed valuation;
For Hirko Settlement Debt purposes, the sum of five tenths (.50) mills on each
dollar of assessed valuation;
For Library purposes, the sum of eighty-eight hundredths (.88) mills on each
dollar of assessed valuation;
Lehigh County
Tax for the year 2015 for General City purposes, the sum of three and seven
hundredths (3.07) mills on each dollar of assessed valuation.
For Public Safety purposes, the sum of [thirty-three hundredths (.33)] mills on each
dollar of assessed valuation;
For 9-1-1 purposes, the sum of forty-five hundredths (.45) mills on each dollar of
assessed valuation;
For Recreation purposes, the sum of three-tenths (.30) mills on each dollar of
assessed valuation;
For Debt purposes, the sum of sixty-two hundredths (.62) mills on each
dollar of assessed valuation;
For Landfill Debt purposes, the sum of thirteen hundredths (.13) mills on
each dollar of assessed valuation;
For Hirko Settlement Debt purposes, the sum of sixteen hundredths (.16)
mills on each dollar of assessed valuation;
For Library purposes, the sum of twenty-eight hundredths (.28) mills on
each dollar of assessed valuation;
Northampton County Lehigh County
Mills on Each Mills on Each
Dollar of Dollar of
Purpose Assessed Valuation Assessed Valuation
General 9.68 3.07
Public Safety 1.06 .33
Recreation Levy .94 .30
Debt 1.98 .62
Landfill Debt .40 .13
Hirko Settlement Debt .50 .16
Library .88 .28
9-1-1 Dedicated Tax 1.44 .45
Total - All Purposes [16.88] [ 5.34]
shall be amended to read as follows:
SECTION 1. That a tax be paid and the same is hereby levied on all persons and real property within the said City subject to taxation for City purposes for the fiscal year, as follows:
Northampton County
Tax for the year 2015 for General City purposes, the sum of nine and fifty-five
hundredths (9.55) mills on each dollar of assessed valuation.
For Public Safety purposes, the sum of one and six hundredths (1.06) mills on
each dollar of assessed valuation;
For 9-1-1 purposes, the sum of one and forty-four hundredths (1.44) mills on each dollar of
assessed valuation;
For Recreation purposes, the sum of ninety-four hundredths (.94) mills on each
dollar of assessed valuation;
For Debt purposes, the sum of one and ninety-eight hundredths (1.98) mills on each
dollar of assessed valuation;
For Landfill Debt purposes, the sum of four tenths (.40) mills on each dollar of
assessed valuation;
For Hirko Settlement Debt purposes, the sum of five tenths (.50) mills on each
dollar of assessed valuation;
For Library purposes, the sum of eighty-eight hundredths (.88) mills on each
dollar of assessed valuation;
Lehigh County
Tax for the year 2015 for General City purposes, the sum of three and three
hundredths (3.03) mills on each dollar of assessed valuation.
For Public Safety purposes, the sum of thirty-three hundredths (.33) mills on each
dollar of assessed valuation;
For 9-1-1 purposes, the sum of forty-five hundredths (.45) mills on each dollar of
assessed valuation;
For Recreation purposes, the sum of three-tenths (.30) mills on each dollar of
assessed valuation;
For Debt purposes, the sum of sixty-two hundredths (.62) mills on each
dollar of assessed valuation;
For Landfill Debt purposes, the sum of thirteen hundredths (.13) mills on
each dollar of assessed valuation;
For Hirko Settlement Debt purposes, the sum of sixteen hundredths (.16)
mills on each dollar of assessed valuation;
For Library purposes, the sum of twenty-eight hundredths (.28) mills on
each dollar of assessed valuation;
Northampton County Lehigh County
Mills on Each Mills on Each
Dollar of Dollar of
Purpose Assessed Valuation Assessed Valuation
General 9.55 3.03
Public Safety 1.06 .33
Recreation Levy .94 .30
Debt 1.98 .62
Landfill Debt .40 .13
Hirko Settlement Debt .50 .16
Library .88 .28
9-1-1 Dedicated Tax 1.44 .45
Total - All Purposes 16.75 5.30
President Reynolds affirmed that, just to be clear, the amount is not changing, and the total rate is not changing. He just discovered this today in discussion with Ms. Biedenkopf and he apologizes to Council. President Reynolds, restating that the total rate that City taxpayers will be paying is not changing, said the change is in the line item of the individual tax categories that is the General Purpose tax.
President Reynolds stated that another amendment is needed in order to add the money back in as it relates to the amendment that was passed before.
Mr. Evans observed that the rate would be moving back up to reflect the changes for the expenses that were added back in.
President Reynolds noted there are two separate amendments and Mark Sivak, Director of Budget and Finance, might wish to weigh in at this point.
Mr. Sivak informed the Members that he had put the cuts in the Public Safety Dedicated Tax category because originally that was where the Administration’s tax increase was coming from. However, based on the Budget cuts that City Council made, the decrease really should have been placed in the General Purpose category of the overall tax. Mr. Sivak confirmed that, as Council President Reynolds has said, it is not changing the tax rate that Council had passed on Thursday, but it is just moving it to the General Tax category instead of decreasing the Public Safety Tax category, and is decreasing the General Tax Rate.
President Reynolds affirmed this is because the decreases made by Members of Council at the Final Budget Meeting were really not related to Public Safety expenses but had to do with General Fund expenses.
Mr. Evans restated his question is whether Council needs to change the number now based on the changes that were made tonight by putting the expenses for the pools back into the Budget.
Mr. Sivak responded there will be another amendment.
President Reynolds added there will be a second amendment in which the $48,000 for the pools will be addressed.
Voting AYE on Amendment 1: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The amendment passed.
President Reynolds confirmed that, as Mr. Evans had referenced, an amendment to Bill No. 45 is needed that puts the original funding back into the budget for Westside and Saucon Pools.
The Clerk read Amendment 2, sponsored by Mr. Reynolds and Mr. Callahan, as follows:
(Amendment to Bill 45-2014 reflected the result of Amendment 2 to Bill 35-2014 that reinstated funding for Westside and Saucon Pools)
THAT SECTION 1. which reads as follows:
SECTION 1. That a tax be paid and the same is hereby levied on all persons and real property within the said City subject to taxation for City purposes for the fiscal year, as follows:
Northampton County
Tax for the year 2015 for General City purposes, the sum of [ nine and fifty-five
hundredths (9.55) ] mills on each dollar of assessed valuation.
For Public Safety purposes, the sum of one and six hundredths (.1.06) mills on
each dollar of assessed valuation;
For 9-1-1 purposes, the sum of one and forty-four hundredths (1.44) mills on each dollar of
assessed valuation;
For Recreation purposes, the sum of ninety-four hundredths (.94) mills on each
dollar of assessed valuation;
For Debt purposes, the sum of one and ninety-eight hundredths (1.98) mills on each
dollar of assessed valuation;
For Landfill Debt purposes, the sum of four tenths (.40) mills on each dollar of
assessed valuation;
For Hirko Settlement Debt purposes, the sum of five tenths (.50) mills on each
dollar of assessed valuation;
For Library purposes, the sum of eighty-eight hundredths (.88) mills on each
dollar of assessed valuation;
Lehigh County
Tax for the year 2015 for General City purposes, the sum of [ three and three
hundredths (3.03) ] mills on each dollar of assessed valuation.
For Public Safety purposes, the sum of thirty-three hundredths (.33) mills on each
dollar of assessed valuation;
For 9-1-1 purposes, the sum of forty-five hundredths (.45) mills on each dollar of
assessed valuation;
For Recreation purposes, the sum of three-tenths (.30) mills on each dollar of
assessed valuation;
For Debt purposes, the sum of sixty-two hundredths (.62) mills on each
dollar of assessed valuation;
For Landfill Debt purposes, the sum of thirteen hundredths (.13) mills on
each dollar of assessed valuation;
For Hirko Settlement Debt purposes, the sum of sixteen hundredths (.16)
mills on each dollar of assessed valuation;
For Library purposes, the sum of twenty-eight hundredths (.28) mills on
each dollar of assessed valuation;
Northampton County Lehigh County
Mills on Each Mills on Each
Dollar of Dollar of
Purpose Assessed Valuation Assessed Valuation
General [ 9.55 ] [ 3.03 ]
Public Safety 1.06 .33
Recreation Levy .94 .30
Debt 1.98 .62
Landfill Debt .40 .13
Hirko Settlement Debt .50 .16
Library .88 .28
9-1-1 Dedicated Tax 1.44 .45
Total - All Purposes 16.75 5.30
shall be amended to read as follows:
SECTION 1. That a tax be paid and the same is hereby levied on all persons and real property within the said City subject to taxation for City purposes for the fiscal year, as follows:
Northampton County
Tax for the year 2015 for General City purposes, the sum of nine and fifty-eight
hundredths (9.58) mills on each dollar of assessed valuation.
For Public Safety purposes, the sum of one and six hundredths (1.06) mills on
each dollar of assessed valuation;
For 9-1-1 purposes, the sum of one and forty-four hundredths (1.44) mills on each dollar of
assessed valuation;
For Recreation purposes, the sum of ninety-four hundredths (.94) mills on each
dollar of assessed valuation;
For Debt purposes, the sum of one and ninety-eight hundredths (1.98) mills on each
dollar of assessed valuation;
For Landfill Debt purposes, the sum of four tenths (.40) mills on each dollar of
assessed valuation;
For Hirko Settlement Debt purposes, the sum of five tenths (.50) mills on each
dollar of assessed valuation;
For Library purposes, the sum of eighty-eight hundredths (.88) mills on each
dollar of assessed valuation;
Lehigh County
Tax for the year 2015 for General City purposes, the sum of three and four
hundredths (3.04) mills on each dollar of assessed valuation.
For Public Safety purposes, the sum of thirty-three hundredths (.33) mills on each
dollar of assessed valuation;
For 9-1-1 purposes, the sum of forty-five hundredths (.45) mills on each dollar of
assessed valuation;
For Recreation purposes, the sum of three-tenths (.30) mills on each dollar of
assessed valuation;
For Debt purposes, the sum of sixty-two hundredths (.62) mills on each
dollar of assessed valuation;
For Landfill Debt purposes, the sum of thirteen hundredths (.13) mills on
each dollar of assessed valuation;
For Hirko Settlement Debt purposes, the sum of sixteen hundredths (.16)
mills on each dollar of assessed valuation;
For Library purposes, the sum of twenty-eight hundredths (.28) mills on
each dollar of assessed valuation;
Northampton County Lehigh County
Mills on Each Mills on Each
Dollar of Dollar of
Purpose Assessed Valuation Assessed Valuation
General 9.58 3.04
Public Safety 1.06 .33
Recreation Levy .94 .30
Debt 1.98 .62
Landfill Debt .40 .13
Hirko Settlement Debt .50 .16
Library .88 .28
9-1-1 Dedicated Tax 1.44 .45
Total - All Purposes 16.78 5.31
President Reynolds affirmed this amendment adds back the funding for Westside and Saucon Pools for 2015. President Reynolds, noting that the original proposed tax increase that came forward from the Administration was 6.2%, inquired once this money is added back in what does the tax rate stand at as far as the increase.
Mr. Sivak responded it will be .89 mills and the overall percentage increase would be approximately 5.6%.
President Reynolds asked what percentage of the tax rate increase of 6.2% was dedicated to 911.
Mr. Sivak replied it was 4.3%.
President Reynolds related if you are looking at that tax rate then 4.3 % of it goes to 911 and then just 1.3% of it goes toward the General Fund.
Mr. Sivak replied that is correct.
President Reynolds stated for Council’s benefit those are the numbers that the Members are looking at.
Voting AYE on Amendment 2: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 6. Voting NAY: Mr. Evans, 1. The amendment passed.
President Reynolds, turning to Bill No. 45, as amended, said his only comment is that 80% of the tax increase is going to pay for the 911 costs.
Voting AYE on Bill No. 45, as Amended: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 6. Voting NAY: Mr. Evans, 1. Bill No. 45 – 2014, now known as Ordinance No. 2014-45, was adopted on Final Reading.
L. Bill No. 46 – 2014 – Amending Article 309 – Moving Permit Fees
The Clerk read Bill No. 46 – 2014, Amending Article 309 – Moving Permit Fees on Final Reading.
Mr. Waldron noted when this came up he was a bit surprised to find that the City had an Ordinance pertaining to Moving Permits. He thought there should be an increased cost to provide a permit for a no-parking zone and he would hope that the Administration would revisit this in 2015 to clean it up. Mr. Waldron mentioned it seems like it was a bit out of date as well as enforcement of the Ordinance, and a big part of that is educating people that it does exist. Mr. Waldron said he will be looking for the Administration to put some kind of effort forward to give this a bit more leverage, and the big point would be communicating to the public that there is a moving permit fee that applies to anyone moving in or out of the City.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 46 – 2014, now known as Ordinance No. 2014-46, was adopted on Final Reading.
M. Bill No. 47 – 2014 – Amending Article 1113 - Food Code Regulations – Fees
The Clerk read Bill No. 47 – 2014, Amending Article 1113 – Food Code Regulations – Fees, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 47-2014 now known as Ordinance No. 2014-47, was adopted on Final Reading.
N. Bill No. 48 – 2014 – Amending Article 1731 – Inspection Fees
The Clerk read Bill No. 48 – 2014, Amending Article 1731 – Inspection Fees, on Final Reading.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. Bill No. 48 – 2014, now known as Ordinance No. 2014-48, was adopted on Final Reading.
O. Bill No. 28 – 2014 – Amending Article 304 – First Responder’s Fee/Amusement Tax
The Clerk read Bill No. 28 – 2014, Amending Article 304 – First Responder’s Fee/ Amusement Tax, on Final Reading.
President Reynolds affirmed that Bill No. 28 was amended on First Reading at the City Council Meeting on December 2, 2014.
Ms. Reuscher stated that she wanted to address the concerns brought up during public comment earlier. Affirming that she knows this is about the maximum tax imposed, Ms. Reuscher noted that Council had discussed the issue of changing the minimum ticket price at which this tax would come into effect. Ms. Reuscher advised she still feels strongly that non-profits and art institutes in the City are an incredible addition to the quality of life here and something that makes Bethlehem a special place to live. Ms. Reuscher, while confirming that she wants to continue a discussion on how the City can reduce the impact especially to very small non-profits, noted that when she saw some of the numbers that came in, and thanking Mr. Sivak for preparing those numbers, and the various institutions that sent those numbers in, the City is looking at an impact that is going to be well over $60,000 to the Budget. Considering the nearly $6 million deficit that the City was dealing with, Ms. Reuscher explained she could not pursue that change this year. Ms. Reuscher thought it will be sadly an issue of just sharing the pain where people are seeing cuts really across the board and in every department, including positions being cut. Ms. Reuscher stated she did not think this was the right year to do this, but she is committed to continuing a discussion on the matter. Ms. Reuscher believed this is important and that maybe somewhere in between this year and next year the City can come up with a solution that makes everyone happy and that is still encouraging and supportive of small arts groups like the Bach Choir and the Pennsylvania Symphonic Orchestra while at the same time also supporting the City.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 6. Voting NAY: Mr. Callahan, 1. Bill No. 28 – 2014, now known as Ordinance No. 2014-49, was adopted on Final Reading.
8. NEW ORDINANCES.
None.
9. RESOLUTIONS
A. Approving Requirements for Vacating of Streets
Mr. Waldron and Mr. Callahan sponsored Resolution 2014-258 that approved the requirements for Vacating of Streets with a $500 fee payable to the City of Bethlehem for the costs of legal advertisements.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
B. Approving 2015 Golf Fees
Mr. Callahan and Ms. Reuscher sponsored Resolution 2014-259 that approved the Golf Fees for 2015.
Amendment – Trail Fee – Reduction
Mr. Evans mentioned he was not at the meeting when this was covered. Mr. Evans stated he would like to offer a small amendment to the proposed rates at this time. This would be a small impact on the residents and it would be negligible on the budget. Mr. Evans pointed out half way down the list of fees there is a Trail Fee which was $10 that is only in place during early mornings on the weekends when the City wants play on the course to move along. Mr. Evans noted if someone chose to walk they had to pay a trail fee of $10 and he has heard complaints about the trail fee all along. People who have been playing a long time have felt hurt by that, and now it is proposed to be increased to $12. Mr. Evans believed the proposed $2 increase would only generate a few hundred dollars and the offset involved would have a negative impact, so he would like to keep it at $10. Mr. Evans restated his proposal is to keep the trail fee at $10 versus raising it to the $12 proposed rate. President Reynolds seconded it for discussion purposes.
Mr. Evans asked Ralph Carp, Director of Parks and Public Property, if it would be about $300 in total revenues expected to be generated by the increase in trail fees.
Mr. Carp stated he believes it is in that range.
Mr. Evans noted by changing it from $10 to $12 it will not be a big change in the Budget.
President Reynolds asked if that line item is in the budget.
Mr. Recchiuti believed it is in the Operating Revenues of the Golf Course Budget.
President Reynolds asked Mr. Carp if he happens to know how many people this would affect or the revenue in 2014 for this trail fee.
Mr. Carp stated off the top of his head he does not know and he does not have the numbers with him. He believed the projected revenue that would come from the increase would be in the $300 to $400 range. It is probably a few hundred players per year.
Mr. Evans thought it was 200 rounds per year for a $400 increase in a $1.5 million Golf Course Budget.
Mr. Recchiuti asked Mr. Brong if these proposed changes that went through his department are proportional to each other. He asked how these numbers came about for the proposed fee increases for the Golf Course and whether it a flat 20% or a flat 10%.
Mr. Carp responded that the fees were reviewed and have not been adjusted in roughly 4 years. The fees were all reviewed whether it was a greens fee or a cart fee. The City took a look at what other Golf Courses are doing. Mr. Carp added Bethlehem is the only Golf Course in the area that actually allows walkers except for Allentown Municipal so at all other courses carts are mandatory. Mr. Carp noted the trail fee is just a way to make up for lost revenue on carts and also a way to speed play along because play is quicker with carts. As far as the increase, it was thought it was a reasonable adjustment, it does not have a significant impact on a lot of players, and it is a modest increase. Mr. Carp commented that he supports the increase, and is trying to generate revenue for the Golf Course.
Mr. Evans asked if the trail fee is only on the weekends rather than all the time.
Mr. Carp stated the trail fee is effective during the mornings on Saturdays and Sundays.
Mr. Callahan asked what time it is in effect.
Mr. Carp stated it is from the time the course opens until 10:00 or 11:00 a.m. on Saturdays and Sundays.
Mr. Callahan commented it would make sense to have everyone in a cart early in the morning because play can back up in the morning and that would back up everyone in the afternoon.
Mr. Carp stated it is the preference to have players in carts because play moves quicker. While there are some golfers who like to walk, the Course tries to accommodate all golfers.
President Reynolds noted Mr. Evans is not proposing to get rid of the fee but just to keep it at $10.
Mr. Callahan, affirming he realizes that, pointed out that as a golfer he is looking at $12 to walk versus $15 to rent a cart, and it does not make much sense.
Mr. Carp advised that some players just prefer to walk.
President Reynolds believed that Mr. Evans voted against the Golf Budget earlier tonight. President Reynolds noted since the exact number is not known, he is not sure what the corresponding expense would be if the Course were losing these few hundred dollars.
Mr. Evans believed the Course will lose more golfers from raising the trail fee, and advised when it was first proposed he heard a lot of disagreement.
President Reynolds stated he is not disagreeing with Mr. Evans’ rationale but he is just wondering since we already voted on the other budget he is not sure what we can do. He wants to support this, he has more of a procedural question, not a question about the rationale as far as what we can do with the corresponding expenditures.
Mr. Evans did not believe Council needs to make a change because it is only about $400. He just feels the Course will lose more golfers.
President Reynolds asked Mr. Brong and Mr. Sivak if there is a way for Mr. Evans to word his particular motion.
Mr. Evans noted if the fee is reduced the revenue reduction of $400 would be microscopic in the overall $1.5 million Golf Course Budget, and he believed it will result in more play.
President Reynolds noted that is essentially what he is getting at. He is not against the $10 fee but it is more a question of if there is going to be a reduction in a portion of the revenue then there should be an accompanying cut.
Mr. Brong believed what is being discussed is a change in a fee which is de minimus and no change in revenue because of increased volume so there is no change needed to the budget. He affirmed there would be a change in the fee schedule but no change to the budget.
President Reynolds asked the Clerk to call the roll on the amendment to the trail fee to keep it at $10.
Voting AYE on the Amendment: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The amendment passed.
Voting AYE on the Resolution, as Amended: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
C. Approving 2015 Recreation Fees
Mr. Stellato and Mr. Callahan sponsored Resolution 2014-260 that approved the 2015 Recreation Fees at the Swimming Pool, Sand Island Tennis, League/Field, Fitness in the Park, Pavilion Rental, Summer Day Camp, and Facility Rental for Special Events Fees.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
D. Approving Subdivision and Land Development Review Fees
Mr. Recchiuti and Mr. Stellato sponsored Resolution 2014-261 that approved the Subdivision and Land Development Review Fees. This Resolution supersedes Resolution No. 14,755 adopted on December 20, 2005.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
E. Approving Tax and Water Certification Fees
Mr. Recchiuti and Mr. Stellato sponsored Resolution 2014-262 that approved Tax and Water Certification Fees.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
Mr. Recchiuti and Mr. Stellato sponsored Resolution 2014-263 that approved Police Records Fees.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
G. Authorizing Contract – Preferred EAP – Employee Assistance Services
Mr. Recchiuti and Mr. Stellato sponsored Resolution 2014-264 that authorized a contract with Preferred EAP for Employee Assistance Services.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
Mr. Recchiuti and Mr. Stellato sponsored Resolution 2014-265 that granted a Certificate of Appropriateness to remove the rear chimney, install storm windows on stained glass windows, paint the trim, replace roof shingles, erect a fence in the rear yard and close off two windows at 129 East Market Street.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
I. Certificate of Appropriateness – 53 East Market Street
Mr. Recchiuti and Mr. Stellato sponsored Resolution 2014-266 that granted a Certificate of Appropriateness to construct a metal and glass greenhouse with brick base at the rear of the house at 53 East Market Street.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
J. Authorizing Use Permit Agreement for Public Property – ArtsQuest – PEEPS Fest with
5K and Fireworks
Mr. Recchiuti and Mr. Stellato sponsored Resolution 2014-267 that authorized a Use Permit Agreement for Public Property with ArtsQuest for the PEEPS Fest with 5K and Fireworks on December 30 and 31, 2014.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
K. Authorizing Police Department Shooting Range Fees
Mr. Stellato and Mr. Callahan sponsored Resolution 2014-268 that authorized Police Department Shooting Range Fees.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 7. The Resolution passed.
L. Authorizing Escrow Temporary Borrowing – General Fund
Mr. Recchiuti and Mr. Stellato sponsored Resolution 2014-269 that authorized Escrow Temporary Borrowing of up to $1,400,000 by the Administration from the Escrow Fund to the General Fund for payroll expenses.
Mr. Evans asked Mr. Sivak about the request and the amount of the payroll.
Mr. Sivak responded that payroll is roughly $1.4 million.
Mr. Evans inquired whether $1.4 million would cover one round of payroll.
Mr. Sivak replied that is correct.
Mr. Evans, noting the request is to cover one round of payroll, asked whether the City will be able to carry cash to make the first round of payroll in January.
Mr. Sivak thought it will but noted the request in the memo allows the City to borrow because the first payroll of 2015 occurs on January 2, 2015. While the City will have cash carryover from 2014 and he believes that the City will have enough for the first payroll, Mr. Sivak thought it may be close and the Administration wanted to present the request to City Council just in case the Administration needs to borrow some amount. Mr. Sivak advised Council that the Administration would not need to borrow the entire amount of $1.4 million for the first payroll but the worst case scenario is that it may need a few hundred thousand dollars. Mr. Sivak believed they will not need anything but just in case he wanted to make sure the Administration had the proper approvals from City Council.
Mr. Evans noted from January through December the City will end up with more cash at the end of the year than at the start of the year.
Mr. Sivak, affirming yes, said it needs to be remembered that the City started 2014 with a little over $1.1 million in cash and it is believed it will go up $400,000 or $500,000 from that point so it should be okay. Mr. Sivak reiterated that just in case the Administration wanted to have the approvals in place if needed.
Mr. Evans, confirming that the request is for $1.4 million to cover the January 2, 2015 payroll as needed, asked about the January 16 payroll.
Mr. Sivak replied the Administration believes it will be okay because in the first few weeks the City will be collecting water and sewer bills and can take first quarter charges as needed. There are a number of people who will come in when they get their 2015 tax bill and pay it right away so usually the City is in good position for the second payroll of the year.
Mr. Evans, noting Mr. Sivak mentioned the water and sewer bills, asked about the General Fund charges.
Mr. Sivak replied the cash will increase in the Water and Sewer Funds as water and sewer bills are paid enabling the City to take General Fund charges from the Funds towards the second payroll.
Mr. Evans observed the Casino true-up money usually arrives late January so that would take care of the cash flow issue and then the City would be up and running.
Mr. Sivak replied that is correct.
Mr. Brong thought it is appropriate to make sure that there is not the wrong message being sent here. When the City goes through the rigorous exercise of cash flow between now and the end of the year it is looking at it ultra-conservatively which assumes no outstanding tax revenue collections through the end of the year. It assumes an inability to take any 4th Quarter General Fund charges from the Utility Funds, but even so the City is looking at about an $384,000 theoretical problem. Mr. Brong added if the City does have a need for cash it will be relatively small. The reason it is being requested is just in case in the event that something unforeseen arises and a few hundred thousand dollars is needed to make these two payrolls.
Mr. Evans noted his question was because he knows it has come close the past few years but the City will still end the year in the black so it is a short term cash flow issue again.
Mr. Brong communicated it should be kept in mind the City has been budgeting line on line so that does not facilitate any growth or shrinkage in cash. Until the City changes that it cannot expect this to move in the direction we want it to.
Mr. Recchiuti, advising Mr. Evans covered some of his questions, said it is important to note just because Council passed the 2015 Budget it does not mean it filled the City coffers with money because it takes a while for cash to come in. He highlighted the fact that many municipalities use what is called Tax Anticipation Notes to get through the first month or two until their tax revenue starts coming in. Mr. Recchiuti thought this is a cost effective way for the City to do what may be necessary since Tax Anticipation Notes have a lot of costs and fees associated with them, and is obviously a cheaper alternative for the City to use. Mr. Recchiuti thought that based on the conversation he had with Mr. Sivak and Mr. Brong earlier today they seem pretty confident that they will not have to borrow this money but it is there if necessary. Mr. Recchiuti added Mr. Brong alluded to the issue of cash and that the budget has to be a year-long discussion, not just three months, and said he appreciates what the Administration is doing this year and looks forward to that being done in 2015.
President Reynolds asked Mayor Donchez if he has anything to add and if he is comfortable with this.
Mayor Donchez replied that he is comfortable with this.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds. The Resolution passed.
Adding Resolution
President Reynolds asked for a motion and a second to add Resolution 9 M to the Agenda.
Mr. Recchiuti moved to add Resolution 9 M to the Agenda and Mr. Callahan seconded the motion.
Voting AYE on the motion: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 6. Voting NAY: Mr. Evans, 1. The motion passed.
M. Authorizing Hiring Freeze
Mr. Reynolds and Mr. Callahan sponsored Resolution 2014-270 (9 M) that authorized a Hiring Freeze for all departments, including all open positions and all positions from which employees have retired, except Police, Fire and EMS, from January 1 through December 31, 2015.
President Reynolds stated this was something that he had discussions about in the past in view of the early retirement incentive. President Reynolds pointed out the problem with this particular Budget was that the Proposed 2015 Budget was going to come out before the those certain employees would decide whether or not to accept the early retirement incentive. President Reynolds recalled the date by which employees had to decide was November 18, but it created a problem for Council as far as the early retirement of 16 people and an effect on items in the Proposed 2015 Budget. It was a question that had come up to the Administration at Budget hearings. President Reynolds confirmed that Mr. Brong and Mr. Sivak to their credit were honest in acknowledging that just because people were retiring the Budget savings could not be determined because there would be an internal process that would need to be followed as far as whether jobs were to be filled, or whether or not there was a situation with different funds. He exemplified that if employees who worked in Departments on the General Fund side of the Budget would take an open position in Departments on the Water and Sewer side of the Budget that may create an opening on the General Fund side. That would not be something that would necessarily be known for days, weeks or months. President Reynolds noted one of the things that came up during Budget Hearings was the discussion about creating a savings as a result of early retirements. President Reynolds explained he thought it is somewhat unfair to the Administration to ask them to plan for something about which they need more time and more information. President Reynolds thought that a compromise would be to look at the open early retirement positions and continue the hiring freeze for 2015 because filling the jobs may not take place in the short term. President Reynolds thought that the hiring freeze process adopted by City Council in 2014 has been a fair process by which City Council is more than willing to go along with the Administration on their requests to fill positions but it does provide City Council with some input because the early retirements will affect the 2015 Budget. President Reynolds communicated that in saying one will see what happens as 2015 goes on does not necessarily reflect the original budgetary intention of the early retirement incentive. President Reynolds noted that as Mr. Evans referenced this Resolution did come forward today after conversations throughout the Budget Hearings with Mr. Brong and Mr. Sivak. President Reynolds turned to Mr. Brong to offer any comments on the process going forward and to talk a about the challenges with these vacancies.
Mr. Brong stated that as in the past he continues to feel strongly that the process this evening is to propose and get passed through Council a Budget, and it is the Administration’s job and the staff behind him to execute against that Budget. Mr. Brong, communicating he would love to be obstinate here and say that he continues to be uncomfortable with the hiring freeze, said, as the Mayor alluded to earlier, the dialogue will be continuing. Knowing a little something about how much work has to be done in order to make this right financially because it is not business as usual and the game has changed, Mr. Brong stressed there is a lot of work to do. Mr. Brong stated Mayor Donchez got it right, this is a dialogue, there needs to be a dialogue, and it cannot be an eleventh hour proposal from Budget period to Budget period. Mr. Brong thought the interaction that is held publicly as the Administration presents to Council requests to fill jobs will be important to help collectively identify where the City can hold the line.
Mr. Recchiuti stressed it is important that the Administration and Council start this dialogue earlier so they can see how to utilize savings in the Budget with these retirements, and after discussions it was thought it might take 3 to 5 months to figure it out. Mr. Recchiuti noted the alternative was to put the money for each of the open positions into the Unforeseen Contingency Account until a decision was made that would have been the long way to do it. This is the short way to do it, the quick and easy way, without having to make 16 different Budget amendments tonight. Mr. Recchiuti, stating this is why he is pleased with this, and it is something that has been discussed with Mr. Brong and Mr. Sivak, advised he will be supporting the Resolution tonight.
Mr. Evans, noting the process for filling positions came up last summer also, commented he does not know how much impact it had on the overall budget and he feels it is minimal. Highlighting the fact that City Council has just adopted a Budget, and noting that the Administration cut $4.5 million for the proposed Budget and then Council cut about $100,000,. Mr. Evans said he has confidence that the Administration has a handle on the fact that there needs to be expense reductions. Mr. Evans affirming that Council does control the purse and the checks and has just done so, communicated that Council told the Administration how much they can spend, and added some expenses tonight they feel comfortable with and can pass that on to the taxpayer. Mr. Evans commented that the Resolution is sending mixed signals, and Council is reaching to the Administrative side for the day to day business. Mr. Evans, communicating it is ripe for politics to jump into the matter, advised he became uncomfortable during the time Council discussed filling a position in the Recycling Bureau because the person’s name was stated. Continuing on to say it becomes awkward when a name comes up in public inadvertently, Mr. Evans remarked it became a political battlefield. Mr. Evans stressed that Council is going down the same path again and he believed it is more of a token procedure and does not really have much of an impact on the Budget. He wondered if it really makes a difference. Mr. Evans, emphasizing the Resolution would be in effect for a full year, wondered what kind of a precedent it sets. Recalling that at first the Resolution last year was just for 6 months and then extended for the year, Mr. Evans affirmed this Resolution is for the full year and queried whether Council will now approve all hires and take over the Administrative function of hiring. Mr. Evans, while observing all can agree on the distressed condition with the budget, stated he does not agree with the Resolution as a way to move City government forward and operate efficiently.
President Reynolds, confirming that the Administration came forward with cuts that Council approved as well and Council approved the bond refinancing, emphasized those were things about which the Administration sat down and had a conversation with Council. President Reynolds recounted that one of the things that Mr. Brong and Mayor Donchez have said consistently over the last several months is that they worked with City Council to make cuts, as Mayor Donchez said with his Budget proposal. He continued on to say it is not just that the Administration cut the money but Council voted to make those cuts as well in a shared long term best interest. President Reynolds denoted Council has those same goals in mind. Commenting that with the hiring freeze maybe there is no end to it, President Reynolds said that as Mr. Brong alluded to things are not operating as they usually operate. He pointed out the world has changed and when one looks at financial pressures on healthcare, pensions, 911 and other government services they are no longer what they once were. President Reynolds believed that the application of the hiring freeze in 2014 has not been overly onerous. As far as operations are concerned and Council stepping into the operations, President Reynolds pointed out that Mr. Evans has made a few cuts that have since been reversed having to do with operation of the Westside and Saucon Pools that did not come forward in the original Administration Proposed Budget. President Reynolds communicated that the application of the hiring freeze so far has been one in which Council had brief discussions about positions, and he thinks there is nothing wrong with asking questions about why the City is filling positions. Affirming that Council just voted to raise taxes, President Reynolds said what Council needs to do is continue the dialogue that Mayor Donchez and Mr. Brong have talked about and that he believes has worked well. As it relates to the Budget as a whole, President Reynolds pointed out there has been agreement on far more than what has been disagreed upon, and emphasize there are things the Administration wishes were in the Budget and there are also things Council wishes were in the Budget but they are not. President Reynolds, commenting that the Administration and Council need to come together, confirmed that Mr. Brong just spoke about the fact that the Resolution is not something he feels to be overly onerous going forward. President Reynolds stated it does send the right message in and out of City Hall that things have changed.
Mr. Recchiuti did not believe the Resolution is onerous, and remarked it is meant to save money although it may sound silly to say that. Mr. Recchiuti explained one of the things he envisioned when he first proposed the hiring freeze Resolution was to make the Administration think twice about filling a position, and that is the significant change. Mr. Recchiuti pointed out it was intended as a way to make the Administration really think about whether they needed to fill a position. While acknowledging that Council has approved every position, Mr. Recchiuti noted the Administration did not bring every position forward to Council right away, and they left some positions open longer. Mr. Recchiuti emphasized there is a savings that occurs when that vacancy factor happens, and when there is a vacancy the City is saving not only on salaries but on medical, pension and fringe benefits expenses that go along with a position. Mr. Recchiuti stated if it does not save a dollar it is still significant in the sense that it is changing the way City officials think about how City government operates. Communicating that Council is looking into this with a different perspective, Mr. Recchiuti thought, as President Reynolds stated, this is a changed environment. Noting not every position can be filled, Mr. Recchiuti stated this signifies that City officials need to continue looking. Mr. Recchiuti advised that if the Members were not doing this tonight they would have significantly more amendments to the Budget that would have removed positions and the funding placed into Unforeseen Contingency until the Administration was ready to come forward to say which positions they were filling and which they were not. Observing this is the short solution for something that would have taken another hour tonight with amendments, Mr. Recchiuti said that is why he is supportive of the Resolution.
President Reynolds expressed that he also believes this raises awareness. He commented that one of the problems in government in general is that people do not know what their taxes go to pay for. President Reynolds noted one disagreement he has had with the Administration is that the 911 problem should have been talked about earlier in the year, not because it would have changed what has been done but it would have recognized that part of the challenge is having a conversation about the decisions the City makes on a day to day basis, how it affects the tax rate, and how the City spends money. President Reynolds restated that raising awareness as far as where money is going is something that is a benefit.
Voting AYE: Mr. Stellato, Mr. Waldron, Mr. Callahan, Mr. Recchiuti, Ms. Reuscher, and Mr. Reynolds, 6. Voting NAY: Mr. Evans, 1. The Resolution passed.
10. NEW BUSINESS.
Thanking City Clerk’s Office
Mr. Callahan personally thanked Nan Snyder, Assistant City Clerk, and Cynthia Biedenkopf, City Clerk, for all of their years of service. While stressing that Ms. Kelchner’s voice will certainly be nice, Mr. Callahan commented that not hearing Ms. Biedenkopf’s voice reading the roll, Resolutions, Ordinances and Amendments, will be like losing Bob Sheppard’s famous voice from Yankee Stadium. Mr. Callahan stated Ms. Biedenkopf’s voice, presence and professionalism has been a great service to the City. Mr. Callahan thanked Ms. Biedenkopf and Ms. Snyder for everything and pointed out when he first got on Council both Ms. Biedenkopf and Ms. Snyder walked him through the process and really helped him and answered any questions or concerns with information. Mr. Callahan stated from the bottom of his heart he thanks both of them. He also thanked everyone for coming to City Council Meetings on a yearly basis and wished everyone a Merry Christmas.
None.
Assistant City Clerk Nanette S. Snyder, City Clerk Cynthia H. Biedenkopf
President Reynolds pointed out that even though Ms. Biedenkopf will be staying on in a contract position for the first few months of 2015, this is the last Meeting she will be overseeing with the City Clerk’s duties, and said he would recognize Mayor Donchez if he would like to make comments about Ms. Biedenkopf and Ms. Snyder.
Mayor Donchez, commented that, as he said at the previous Meeting, he was on Council for 18 years and one year as Mayor, and believes City Council present and past were very fortunately served by Ms. Biedenkopf and Ms. Snyder. He stated they are two professional people who really respected the office, tried to work with everyone, and gave everyone so much information when they all came on City Council for the first year. Mayor Donchez pointed out they respected the position, the confidentiality, and the trust. Mayor Donchez said he speaks for everyone here and everyone on Council now that we were very blessed to have two people of that integrity, professionalism, dedication, and passion to the City. He added they certainly will be missed and are welcome to come back anytime.
Mr. Evans, agreeing with Mayor Donchez’s comments, said that Council appreciates everything Ms. Biedenkopf and Ms. Snyder have done. He observed that in many ways it is nice that they are able to retire at the same time because they have worked together for many years. Mr. Evans pointed out they have worked with many people, men and women who sometimes are all on the same page and sometimes come from different angles, and they stayed neutral in a professional way. Mr. Evans noted there are some long nights that lead up to the Budget Hearings and other hearings Council had on different matters, and the work always gets done, with never a question of will it get done, it is always done efficiently and always with a smile. Mr. Evans pointed out they will both be greatly missed and he looks forward to seeing both in the City or here in Town Hall.
Mr. Recchiuti noted there will be a lot of the same things said tonight. He mentioned when he came to Council he was the only new Member at the time and Ms. Biedenkopf and Ms. Snyder sent him something like 50 emails a few days after he was elected explaining what he needed to and he saw it as a shock getting that amount of information. He commented this of course helped the transition go smoothly for him coming on Council and he appreciated that. Mr. Recchiuti added they juggle many personalities on Council, are good at doing this, they maintain their composure with everyone, and always are happy and pleasant to talk to. He observed they enjoy what they do and they will surely be missed. Mr. Recchiuti mentioned he was talking to them a few weeks ago and they both said they were trained at the Bethlehem Steel and added many do not know but when Ms. Biedenkopf takes notes they are in shorthand and she is writing the whole time. Mr. Recchiuti stated he did not know that until he was sitting next to her and he finds that amazing and pointed out that Ms. Snyder also takes notes in shorthand. He stated it is those kinds of acumens that will be missed on City Council. Mr. Recchiuti stressed that Ms. Kelchner is very capable and will be a great replacement for Ms. Biedenkopf, and added that Ms. Biedenkopf and Ms. Snyder will be missed. He said it will be odd calling the City Clerk’s Office and dictating a memo and someone else will be picking up the phone.
Ms. Reuscher stated she wanted to echo what was said and commented that both Ms. Biedenkopf and Ms. Snyder are not just both intelligent, professional and admirable women but also incredibly lovely people. She will miss having them around and she thanked them for their handholding when she was thrown into the confusion that Mr. Recchiuti just mentioned and she appreciates that.
Mr. Stellato, confirming he is new on Council, said it did not take him long to realize what a beautiful person Ms. Biedenkopf is and he thanks her for all the help she has given him.
Mr. Waldron thanked Ms. Biedenkopf and Ms. Snyder for taking time, being patient, and teaching the Members the learning curve on Council when he was first elected to Council. Noting there is a lot to digest in a certain amount of time, Mr. Waldron said they made it very easy relative to what it could be.
President Reynolds thought if anyone has a chance to speak to Ms. Biedenkopf or Ms. Snyder they can see how professional they are. He said they have been this way since he has known them, and the same goes for anyone who has been on City Council who have said the same thing. President Reynolds communicated part of that reflects a role that, as Mr. Recchiuti said before, once existed for women in this society that no longer exists and that is a positive. President Reynolds said he has never met two people who he respects more than Ms. Snyder and Ms. Biedenkopf. Commenting they do not like taking credit for anything, President Reynolds recalled he alluded to this a few weeks ago in that there were times that City Council and the Administration did not get along, and times when there were personalities on City Council that did not get along, but the one thing everyone agreed on was how good of a job Ms. Snyder and Ms. Biedenkopf do. President Reynolds highlighted the fact that all think that Ms. Kelchner is going to do a fantastic job but also agree that Ms. Snyder and Ms. Biedenkopf will never be replaced and the City of Bethlehem is a much better place because of their service. President Reynolds stated, before he adjourns this last Council Meeting of 2014, he believes everyone should give Ms. Snyder and Ms. Biedenkopf a round of applause that they do not want but they deserve.
12. ADJOURNMENT
The meeting was adjourned at 9:25 p.m.