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Township of Franklin, County of Somerset, New Jersey, Was Called to Order by Mayor Levine at 7:08 P.M

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Township of Franklin, County of Somerset, New Jersey, Was Called to Order by Mayor Levine at 7:08 P.M 12 -81 February 14, 2012 – Work Session/Regular Meeting The Work Session/Regular Meeting of the Township Council of the Township of Franklin, County of Somerset, New Jersey, was called to order by Mayor Levine at 7:08 p.m. Mayor Levine called the Work Session/Regular Meeting of the Township Council to order. Mayor Levine stated “In accordance with Section 5 of the Open Public Meeting Act, Chapter 231, Public Law 1975, be advised that adequate notice of this Work Session/Regular Meeting of the Township Council of the Township of Franklin, County of Somerset was made by the posting on the bulletin board at the Municipal Complex and transmitted to the officially designated newspapers, a list of dates, annually, indicating that this Work Session/Regular Meeting would take place at the Franklin Township Municipal Complex at 7:00 p.m. on February 14, 2012. In addition, a copy of this notice is and has been available to the public and is on file in the Office of the Municipal Clerk.” Everyone present participated in the Pledge of Allegiance and Mayor Levine led the Invocation. The Township Clerk called the roll. Present: Mr. Chase, Ms. Francois (arrived at 7:13 p.m.), Mr. Kramer, Mayor Levine, Deputy Mayor Prasad, Mr. Regan, Ms. Sherman, Mr. Vassanella, Mr. Wright Absent: No One. Also present: Craig R. Novick, Township Manager, Louis N. Rainone, Township Attorney and Ann Marie McCarthy, Township Clerk. At this time, the Township Clerk administered the oath of office to Councilman At- Large Brian G. Regan. COMMENDATIONS/PROCLAMATIONS Giuseppe “Joey” DiMeglio (300th Anniversary Somerset County Sheriff’s Office Patch Contest Winner) Mr. Wright, along with Mayor Levine, presented the following commendation: WHEREAS, the Somerset County Sheriff’s Office was founded in 1711 and celebrated its 300th anniversary; and WHEREAS, to commemorate the 300th anniversary of the Somerset County Sheriff’s Office, all school children in Somerset County in grades 6 through 12 had the opportunity to participate in the Somerset County Sheriff’s Office 300th Anniversary Patch Contest where they submitted their version of what the special uniform-style patch should look like; and WHEREAS, Giuseppe “Joey” DiMeglio, a junior at Franklin High School, was the winner of the Somerset County Sheriff’s Office 300th Anniversary Patch Contest and the patch design he submitted will be used on the Sheriff’s Office’s printed materials; and NOW, THEREFORE, We, Brian D. Levine, Mayor and Councilman Carl Wright of the Township of Franklin, County of Somerset, State of New Jersey, on behalf of the Township Council and the citizens of the Township of Franklin, extend their congratulations and commend Giuseppe “Joey” DiMeglio for his winning design of the Sheriff’s Office 300th Anniversary Patch. Black History Month Ms. Francois presented the following proclamation to Percy Sanders: 12-82 February 14, 2012 – Work Session/Regular Meeting WHEREAS, Black History Month honors and affirms the importance of Black History throughout our American experience; and WHEREAS, the history of people of African heritage goes back thousands of years and includes some of the greatest, most advanced and innovative societies in the history of human existence; and WHEREAS, Black History Month is a time for all Americans to reflect on the rich history and teachings of African Americans whose contributions are vast and wide; and WHEREAS, the many local organizations and many individuals throughout our Township are dedicated to the principle of fostering civic, economic and educational programs throughout the Township of Franklin and are dedicated to encouraging reflection on the rich history and teachings of African Americans and bearing witness to the progress, beauty and achievements they have made throughout our community; and WHEREAS, it is fitting we set aside a special time to acknowledge this important segment of citizens of our community and their history; NOW, THEREFORE, I, Brian D. Levine, Mayor of the Township of Franklin, County of Somerset, New Jersey, on behalf of the Franklin Township Council, do hereby proclaim the month of February to be "BLACK HISTORY MONTH" in the Township of Franklin and urge all citizens to join me in celebrating the diversity and character of our community and highlight the importance of sharing our culture, customs and traditions with those around us. Percy Sanders, Week of the People Chairman, spoke of the difficulties in fund raising for the Week of the People in August. He announced they would be holding a fund raising event, Cultural Explosion on March 9th at the Middle School at 7 p.m. in auditorium. He stated donations are $5 and $3 for students. He stated he has tickets or one can buy them at the door on the night of the event. Motion – Amend Agenda A motion was made by Deputy Mayor Kramer to amend the agenda to add a presentation by Andrew Hodulik, Township Financial Consultant regarding the Township’s water rates. Said motion was seconded by Mr. Regan and carried unanimously upon call of the roll. PRESENTATION OF WATER UTILITY RATES Mr. Hodulik presented the following: “During recent Finance Oversight Committee meetings, we have discussed the status of Water Utility finances. Due to rising costs, particularly with respect to the cost of purchased water, along with the goal of maintaining fiscal stability within the Township's Water Utility, it is prudent on behalf of the Governing Body to consider an adjustment to the Township's Water Utility rates. Please note the Township's Water Utility rates have not been adjusted since the year 2002. The accompanying schedules indicate the following: • From July 1, 2009 through to June 30, 2011, Water Utility fund balance has decreased from $8,116,705 to $4,514,831; a decrease of $3,601,873 (-44.38%). • Over the fiscal year's SFY 2009 through to SFY 2011 combined, Water Utility expenditures have exceeded realized revenues (exclusive of fund balance), by $4,922,496. • In SFY 2003, fund balance as a component of revenue amounted to $887,980 (9.48% of revenues); whereas, in the SFY 2011 Water Utility budget, fund balance as a component 12-83 February 14, 2012 – Work Session/Regular Meeting of revenue was $3,848,628 (27.26% of revenues), an increase of 333.41%. • The cost to purchase water has increased by $2,763,029 (up 71.86%) from SFY 2003 through to SFY 2011. These trends indicate the Township's Water Utility rates require adjustment. As noted above, the SFY 2011 budget was balanced by a $3.8M fund balance appropriation (27.26% of total revenues). In order to reverse this trend, it is suggested water rates be increased 10% annually, over the next three years. This initiative would plan to stabilize the Water Utility fiscal operations by the third year of these adjustments. Stabilization would provide for a leveling of the fund balance to the goal of maintaining a $3,500,000 - $4,000,000 balance. Water Utility operations would be reviewed annually to determine if the rate adjustments for the subsequent years (years two and three) are required Schedule 1 Township of Franklin Somerset County, NJ Water Utility Actual Actual Actual Actual SFY SFY SFY SFY Fiscal Year 2008 2009 2010 2011 Fund Balance - Close of Previous Year (A) $ 8,224,313 5 7,112,225 5 8,116,705 $ 6,311,730 Fund Balance Utilized (B) $ 3,086,044 5 2,233,923 5 2,523,186 $ 3,848,628 Net Fund Balance After CY Utilization (C) = (A)-(B) $ 5,138.269 5 4,878,302 S 5,593,520 $ 2,463,102 Memo - Budget: Water Revenues (w/o Fund Balance) 5 9,650,030 $ 9,800,000 $ 9,690,000 $ 9,295,000 Water Appropriations $ 12,736,044 $ 12,033,923 $ 12,213,185 $ 13,143,628 Operations: Budget vs. Realized: Excess (Deficit) in Revenues 5 619,541 $ 422,511 $ (392,685) $ 973,196 Direct Debits/Credits to Fund Balance: Misc. Revenues Not Anticipated 102,306 35,473 24,418 30,286 Credits: Unexpended PY Balances 819,682 2,723,086 968,668 831,904 Balance Cancelations 432,428 57,331 143,461 216,343 Other (25.651) Subtotal (D) 1,973,956 3,238,401 718,211 2,051,730 Fund Balance - Close of Year (C+D) $ 7,112,225 $ 8,116,704 $ 6,311.730 $ 4,514,832 Fund Balance - Difference from Prior Years $ (1,112,087) $ 1,004,478 $ (1,804,973) $ (1,796,899”) After a brief discussion by the Township Council, it was reported by members of the Financial Oversight Committee that it is their recommendation to increase the rates by 10% for one year at this time. Motion – Amend Agenda Ms. Sherman moved to amend the agenda to add the discussion item: Digital Gas Station Signs. Said motion was seconded by Mr. Vassanella and carried unanimously upon call of the roll. 12-84 February 14, 2012 – Work Session/Regular Meeting MAYOR’S REPORT Mayor Levine made the following report: . Welcomed all those attending and TV viewers. Explained how the meeting is conducted and announced it is live. Reminded all that most of the meetings are public and are generally held on the 2nd and 4th Tuesdays of the month with the exception of July, August and December. Reported on the following recent events: Council Report was held on Sunday, January 29, 2012 which was basically a strategy session. Board of Education voted to move their elections from April to November. Attended the Valentine’s Day Dance at Conerly Road School. Attended mayor’s Legislative day at the League of Municipalities. Spoke about his facebook page and twitter account. DEPUTY MAYOR’S REPORT Deputy Mayor Kramer reported on the Board of Education meeting where they discussed changing date of school election and noted on the savings by combining elections.
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