2016 ANNUAL REPORT 589 FAIRGROUND ROAD LEWISBURG, PA 17837 UNION COUNTY, PA 570-523-6320 www.ebtwp.org 2016 Annual Report for East Buffalo Township 2016 Annual Report for East Buffalo Township Contents ORGANIZATION & ADMINISTRATION .................................................................................................................1 AUTHORITIES, BOARDS, COMMISSIONS & OFFICERS.........................................................................................3 RESOLUTIONS .....................................................................................................................................................4 ORDINANCES ......................................................................................................................................................5 PUBLIC WORKS ...................................................................................................................................................7 RECYCLING ........................................................................................................................................................10 CONTRACTED ROAD PROJECTS ........................................................................................................................13 PENN HOUSE COMMONS REDEVELOPMENT PROJECT ....................................................................................14 MUNICIPAL COMPLEX.......................................................................................................................................15 MUNICIPAL SERVICES .......................................................................................................................................16 COUNTY GOVERNMENT ...................................................................................................................................18 OTHER POST-EMPLOYMENT BENEFITS (OPEB) ................................................................................................18 MUNICIPAL LOAN REFINANCING ......................................................................................................................19 2015 AUDITING .................................................................................................................................................20 2016 BUDGET ...................................................................................................................................................20 GENERAL FUND CHARTS FOR 2016 ..................................................................................................................22 The information contained in the following pages is a summary of municipal activity occurring in East Buffalo Township in 2016. The purpose of this report is to highlight noteworthy events during the past year. This is not intended to be an all-inclusive report. The details of the monthly business of the Board of Supervisors, its appointed boards, commissions and committees and the daily activities of township staff can be examined through their respective meeting minutes, annual budgets, financial statements and other reports. The Annual Report is presented by Stacey Kifolo, Township Manager. 2016 Annual Report for East Buffalo Township ORGANIZATION & ADMINISTRATION Address: 589 Fairground Road, Suite 1 Lewisburg, PA 17837 Office Hours: Monday through Friday 7:30 AM to 4:00 PM Phone: 570.523.6320 570.523.9151 (Fax) Website: ebtwp.org Email: [email protected] [email protected] TOWNSHIP STATISTICS Total Area: 15.273 square miles (9,774.6 acres) Land by Percentage: Agricultural Preservation (31.21%) Agricultural Residential (11.32%) Located in Union County, Pennsylvania. General Commercial (1.37%) East Buffalo Township is bordered by Highway Commercial (0.5%) Buffalo Township to the west and north; Industrial (1.31%) Borough of Lewisburg to the northeast; Low Density Residential (27.14%) West Branch Susquehanna River to the east; Medium Density Residential (1.78%) Union Township to the south. Urban Residential (1.4%) Woodland Preservation (19.74 %) Bucknell University (4.23%) Demographics (2010 Census): Population: 6,414 Population Density: 414 per square mile Housing Units: 2,283 Average Household Income: $62,000 Roads: 51.41 miles of Township roads* 16.55 miles of state roads 2016 Municipal Taxes: Real Estate: 4.5 mills Fire Protection: 0.46 mills Earned Income: 0.5% Local Service: $52 per person $12,000 low income exemption Other Taxes: Lewisburg Area School RE: 16.65 mills Lewisburg Area School EIT: 1.5% Union County: 4.31 mills Union County Library: 0.16 mills Union County Debt Service: 0.84 mills *Includes: 4.13 miles of Act 32 Turnback Road and 1.56 miles of Dirt & Gravel Road 2016 Real Estate Taxes 19.73% 18.42% East Buffalo Township Lewisburg Area School District Union County 61.85% Tax Collection: Gary Kleppinger Berkheimer Tax Administrators 2016 Annual Report for East Buffalo Township, Union County, PA 1|P a g e The following individuals comprised the Township Staff for 2016: BOARD OF SUPERVISORS Michael Daniloff Mr. Daniloff served as Chairman. His Supervisor term expires on January 6, 2020. Matt Schumacher Mr. Schumacher served as Vice-Chairman. His Supervisor term expires on January 2, 2022. Henry M. Baylor, Jr., Mr. Baylor served as Supervisor. His Supervisor term shall expire on January 2, 2018 TOWNSHIP MANAGER Stacey L. Kifolo Ms. Kifolo is responsible for the day-to-day operation of the business of the Township, including human resources, public works, financial management and public information. She also serves as the Assistant Treasurer, Assistant Secretary and Open Records Officer. TOWNSHIP CLERK Tara N. Trupp Ms. Trupp served as Administrative Assistant and was appointed Treasurer, Secretary and Assistant Open Records Officer until August 2016. Elizabeth Paige In August 2016, Mrs. Paige was hired as an Administrative Assistant. She was also appointed Treasurer, Secretary and Assistant Open Records Officer. Mrs. Paige reports directly to the Township Manager and is responsible for day-to-day financial and other Township operations. PUBLIC WORKS DIRECTOR Lawson D. Fetterman Mr. Fetterman is responsible for Public Works operations, direct supervision of a five-member Public Works Crew and the Township recycling program. Mr. Fetterman, who is also a Township resident, serves as the Township’s Emergency Management Coordinator. PLANNING & ZONING DIRECTOR Ralph T. Hess, Jr. Mr. Hess is an employee of East Buffalo Township, while serving both East Buffalo and Kelly Townships. SOLICITOR Peter L. Matson Mr. Matson, a resident and long-term legal counsel for the Township, was re-appointed for 2016. 2016 Annual Report for East Buffalo Township, Union County, PA 2|P a g e AUTHORITIES, BOARDS, COMMISSIONS & OFFICERS East Buffalo Township is fortunate to have knowledgeable, talented and enthusiastic residents willing to give time to serve their community. The following residents or Township representatives were newly appointed () or re-appointed () to applicable Authorities, Boards, Commissions or Offices. BOARD OF AUDITORS William Bollinger, Chairman; Term expires December 31, 2016. Barbara (Jodie) Bryant, Secretary; Term expires December 31, 2016. Linda Treese; Term expires December 31, 2016. BUFFALO VALLEY RECREATION AUTHORITY There were no new appointments or re-appointments for 2016. BUFFALO VALLEY REGIONAL POLICE COMMISSION Michael Daniloff, Commissioner; Mr. Daniloff was appointed to fill the remaining term for a position vacated by a former Board Supervisor. His term expires December 31, 2016. Matt Schumacher, Commissioner; Term expires December 31, 2017. Stacey Kifolo; Alternate Commission Member; Term expires December 31, 2016. LEWISBURG AREA JOINT SEWER AUTHORITY Roger Hepner; Term expires December 31, 2020. PENSION ADVISORY COMMITTEE Jill Shambach, West Milton State Bank, Plan Consultant; Term expires December 31, 2016. Stephen Mohr, Employee Representative; Term expires December 31, 2016. Ted Meixell, Citizen Representative; Term expires December 31, 2016. PLANNING COMMISSION There were no new appointments or re-appointments for 2016. SEWAGE ENFORCEMENT OFFICERS James Sanders, Enforcement Officer, SEO# 02153; Term expires December 31, 2016. Kenneth Young, Alternate Officer, SEO# 03553; Term expires December 31, 2016. OPEN RECORDS OFFICERS Officer: Stacey Kifolo Assistant Officer: Tara Trupp (January 2016 – August 2016) Elizabeth Paige (August 2016 – December 2016) 2016 Annual Report for East Buffalo Township, Union County, PA 3|P a g e RESOLUTIONS The following resolutions were approved by the Board of Supervisors in 2016: 01-2016 Accepted dedication of Heim Avenue from South 15th Street to South 13th Street and a portion of 13th Street from Monroe Avenue to Heim Avenue in the Heim Heights Subdivision. January 11, 2016 02-2016 Accepted dedication of streets within the Penn House Commons complex: North 10th Street from Hardwood Drive to Saint Mary Street; North 11th Street from Hardwood Drive to Saint Mary Street; and Hardwood Drive from Saint Mary Street to North 10th Street. January 11, 2016 03-2016 Established permit fees for Wireless Telecommunications Facilities. May 9, 2016 04-2016 Appointed David Hall to the Zoning Hearing Board as a member to fill the remaining term for the position vacated by James Brennan. Mr. Hall’s term will expire December 31, 2017. June 13, 2016 05-2016 Approved the East Buffalo Township Non-Uniform Employees Pension Plan 2017 Minimum Municipal Obligation of $0. September 12, 2016 06-2016 Adopted the 2017 Budget with General Fund Revenues of $3,928,643 and General Fund Expenses of $4,060,080 with the following 2017 tax rates: General Fund at 4.5 mills for all non-exempt properties, Fire Protection Fund at 0.16 mills for all non-exempt properties, Street Light Fund at 0.07 mills for all non-exempt properties and Fire Hydrant Fund at 0.08 mills for all non-exempt properties within 780 feet of a hydrant. December 12, 2016 2016 Annual Report for East Buffalo Township, Union County, PA 4|P a g e ORDINANCES Utilizing a public hearing process, the following ordinances were approved by the Board of Supervisors in 2016: Ordinance 376 Amendment of Chapter 27, Part 5, Section 506 of the Code of Ordinances by modifying the requirements for Wireless Telecommunications Facilities. Established definition, permitted uses, collocation, replacement and modification of facilities and support structure, permit requirements, bulk land area, design, construction, operation of Wireless Telecommunication Facilities and support structure and security requirements. March 14, 2016 Ordinance 377 Authorized and secured the issuance of a General Obligation Bond, in the maximum principal amount of $1,855,655.00, to West Milton State Bank, pursuant to the Pennsylvania Local Government Unit Debt Act, for the purpose of refinancing of a General Obligation Bond with Swineford National Bank in the original amount of $2,000,000.00 incurred for the purpose of constructing a Township municipal office building, maintenance building and related parking and driveway area; for the purchase of the bond, pledging the Township’s full faith, credit and taxing power in support of the payment of the bond; creating a sinking fund and appointing a sinking fund depository, and authorized related documents and actions March 29, 2016 Ordinance 378 Ordinance 379 Ordinance 380 Authorized and secured the issuance of a General Obligation Bond, in the maximum principal amount of $500,000.00, to West Milton State Bank, pursuant to the Pennsylvania Local Government Unit Debt Act, for the purpose of funding future health care benefits for former and current employees; for the purchase of the bond, pledging the Township’s full faith, credit and taxing power in support of the payment of the bond; creating a sinking fund and appointing a sinking fund depository, and authorized related documents and actions. March 29, 2016 Changed the name of a Township public street from South 13th Street to Heim Avenue between Monroe and Heim Avenue. April 11, 2016 Amended Township Zoning Ordinance and Official Zoning Map; rezoning from Low Density Residential (R1) Zoning District to the General Commercial (GC) Zoning District; land identified as parcel number 002-042-042.00000, a portion of parcel number 002-042-042.B0000 and a portion of parcel number 002-042-042.30000 on the Union County Tax Map. April 11, 2016 2016 Annual Report for East Buffalo Township, Union County, PA 5|P a g e Ordinance 381 Ordinance 382 Ordinance 383 Ordinance 384 Amended Ordinance 377, adopted March 29, 2016, by changing the word “Bond” in the said Ordinance to the word “Note”. May 9, 2016 Amend Ordinance 378, adopted March 29, 2016, by changing the word “Bond” in the said Ordinance to the word “Note”. May 9, 2016 Vacated a portion of Oak Alley from the northern right-of-way of Rural Avenue to the southern line of land of Buffalo Valley Recreation Authority in East Buffalo Township, pursuant to the provisions of the Second Class Township Code (53 P.S. § 65101, et seq). July 11, 2016 Established the Township frozen governmental uniformed and nonuniformed employees post-retirement welfare benefits plan (“Plan”) for the benefit of certain eligible former full-time uniformed police officers who were employed by East Buffalo Township as of February 6, 2012 at 6:59AM and who became full-time uniformed police officers of the Buffalo Valley Regional Police Commission on February 6, 2012 at 7:00AM; and for the benefit of certain eligible non-uniformed employees of East Buffalo Township who were hired on or before November 13, 2013. Assets of the Plan are held under a Trust evidenced by a trust (the “Trust”) agreement. the Uniform and Non-Uniform Employee’s Post-Retirement Frozen Welfare Benefits Plan and Trust September 12, 2016 2016 Annual Report for East Buffalo Township, Union County, PA 6|P a g e PUBLIC WORKS The Public Works Department provides a wide variety of services including maintenance of 51+ miles of roadway and right-of-ways, which require paving & patching, shoulder maintenance & grading, snow removal & de-icing, storm sewer & ditch maintenance, street sweeping, sign installation & maintenance, clearing of grass, trees, tree limbs and other vegetation along public rights-of-ways, and recycling. It is important to note that the majority of equipment repairs and maintenance are performed in-house, which greatly assists in the Township’s ability to control these expenses. Other major activities are described in detail in this section. Snow Removal and De-Icing Snow removal and de‐icing of Township Roads, including plowing and the application of a mixture of road salt and AS2 aggregate, was performed as needed. During the January through February 2016 winter season, the Public Works Crew handled 13 snow/ice events requiring plowing and/or winter road treatment. The month of December was more eventful, with eight (8) events. The winter road treatment required the use of approximately 350 tons of salt and 350 tons of AS2. The Township continued contracting for the purchase of Sodium Chloride through DGS COSTARS. The Township purchased tonnage was within the allowable parameters under the contract. Street Sweeping Winter weather requires spring cleanup, including street sweeping, inlet clean outs, and pothole patching. Street sweeping, a highly requested service from residents in the spring, is a time consuming process. The process was extended in 2016 due to mechanical issues with a 1985 Elgin Pelican street sweeper, which was eventually sold. In deciding on a replacement, the Township rented Bobcat attachment sweepers. The Crew determined that the system of two Bobcat broom attachments would provide the necessary annual street sweeping. Weed and Brush Removal The main goals of vegetation control through roadside mowing includes: keeping signs visible to drivers; improving visibility for motorists, bicyclists and pedestrians; improving winter road maintenance in snow and ice areas; helping drainage systems function; and preserving pavements through daylighting and root system control. Rural mowing activities are completed three times each growing season and include Township roads and two rural State Routes. The crew performs tree and brush trimming along roads to maintain clear visibility and to provide for clear passage under the tree canopy for buses and trucks. At times, complete removal of a tree along a roadway is necessary to eliminate a roadside hazard, as was the case along Smoketown Road in 2016. Vegetation removal from signs, guardrails, and other roadside obstructions, is also part of this program. The Township uses a process which identifies four sectors of the Township and rotates the yearly focus for tree and brush trimming. 2016 Annual Report for East Buffalo Township, Union County, PA 7|P a g e Problems such as broken limbs and fallen trees are common throughout the year. Unusual weather events such as windstorms or heavy rain can cause extensive damage to roadside vegetation and at times require emergency response to allow for clearing of the public roadway. In 2016, the Crew responded to eleven instances of trees and/or limbs fallen on roadways. The majority of instances did not require emergency (e.g., after-hours) call outs. Stormwater Maintenance Stormwater facilities maintenance includes cleaning and reshaping drainage ditches, culvert and inlet cleaning, headwall maintenance, pipe installation and replacement and roadside grading. Annual maintenance is essential to roadway safety and extending the life of the pavement. Replacement of failing pipes required projects on Smoketown Road across the intersection of the east end of Hilltop Lane; Stein Lane at Supplee Mill; South 14 th Street across Washington Avenue and extending to the south through three parcels; and North 12th Street from State Route 45 to the Buffalo Valley Rail Trail right-of-way. The North 12th Street project also required engineering services and a private contractor for the replacement of an ADA sidewalk ramp. Replacement of stormwater boxes and pipes that transect Township roadways are typically performed during the year prior to a planned roadway surface treatment. As such, three additional installation or replacement projects were completed on Stein Lane in 2016. These projects did require temporary road closures and posted detours. Roadside grading was completed along all roads that were slated for 2016 outsourced road maintenance projects, which included the Brookpark development and River Road. Traffic Control and Safety Traffic control maintenance includes sign installation and maintenance, traffic signal maintenance and repairs, safety marker placement, guardrail repair and replacement, and other maintenance. The Public Works Director continued to replace and install signage as outlined in the Township Sign Management Program. Signalized intersection design and permitting is administered by the Pennsylvania Department of Transportation. The Township is the primary permitee for three traffic signals on State roads (the intersections of State Route 45 & 15th Street; State Route 45 & Fairground Road; US Route 15 & Moore /Smoketown). Electrical service, routine and emergency maintenance is the responsibility of the Township. In 2016, with assistance from Citizens’ Electric Company, the Public Works Crew marked underground electric southward along US15 from the southeast corner of the intersection of Moore /Smoketown. This was necessary due to the State paving project on US15 and their engineered plans to relocate the guiderail. Based on the underground electric lines, relocation of the guiderails did not proceed. The Township is the secondary permitee for two traffic signals on State roads (intersections of US Route 15 & Saint Mary Street, US Route 15 & State Route 45). The Borough of Lewisburg is the primary permitee on these signals. Through an agreement between the two municipalities, East 2016 Annual Report for East Buffalo Township, Union County, PA 8|P a g e Buffalo Township is responsible for the electric supply and maintenance of the traffic signal at the intersection of US Route 15 & State Route 45. The Township has a maintenance agreement with TRA Electric for each traffic signal. In 2016, TRA electric removed a School Zone flashing signal, post and mast arm following the vacating of the Lewisburg Area High School at the intersection of US15 and SR45. The Township continued to work with the Borough of Lewisburg, PennDOT District 3, Union County Planning, SEDA-COG and McCormick Taylor to advance the US Route 15 adaptive traffic signal project. The impacted intersections include State Route 45, Saint Mary Street and State Route 192. In 2015, Pennoni Associates, Inc. was selected as the design engineering firm. In 2016 Pennoni completed necessary data collection (e.g., counting cars), comparison of potential adaptive systems and permitting. On November 9, 2016, representatives from East Buffalo Township, Lewisburg Borough, PennDOT District 3, Union County Planning, SEDA-COG and McCormick Taylor, held an Adaptive System Selection meeting at the East Buffalo Township Building. Pennoni Associates engineer, Miguel de la Riva, provided a direct comparison between the InSync® and SynchroGreen® adaptive systems. The distinctive characteristics, advantages, disadvantages and costs associated with implementation of the two systems were discussed at length and at the end of the meeting, the InSync® ASCT manufactured by RHYTHM Engineering was unanimously selected by the stakeholders as the preferred adaptive technology for implementation for the US 15 project. Bridge & Culvert Maintenance In 2015, the Township had three (3) bridges that are 20 feet or more in length. The biennial inspections were completed by Larson Design Group in 2015. In 2016, the number of bridges increased to five (5) with the Township’s acceptance of North 10 th Street and North 11th Street in the Penn House Commons development. Larson Design Group completed the initial safety inspections in 2016 for both culverts. The Public Works Crew performed essential maintenance as recommended in the inspection reports. During storms or other disaster events, Public Works investigates and assesses road and bridge conditions to ensure public safety. For two years, the Township has been working with the owner of the Lewisburg & Buffalo Creek Railroad (LBCX) to develop a plan of action and acquire funds for the repair of a twin cell stone culvert that is beneath River Road, a Township road, and the railroad. The Township was unsuccessful in its efforts to secure funding through PEMA/FEMA or DCED, but LBCX was able to obtain a matching grant through the Rail Freight Assistance Program. The Township and LBCX worked through necessary agreements to establish the relationship of the parties and the financial responsibilities for the grant match. LBCX, as the sole grantee, will be the grant administrator. Project bidding and completion is expected to transpire in 2017. 2016 Annual Report for East Buffalo Township, Union County, PA 9|P a g e Equipment In 2016, there were three major purchases for the replacement of equipment. A 2017 Ford F-250 was purchased to replace a 2002 GMC Safari passenger van. Not only was the van experiencing mechanical difficulties, the F-250 with a Knapheide 580J service body is a much more practical and useful vehicle. A 2016 Ford F550 was purchased to replace a 1980 Mack, which will be offered for sale in 2017. A 2007 Freightliner, which was once the chassis for a leaf vacuum system was converted to a dump truck with a hydraulic plunger system. In 2016, the Township continued to utilize Municibid.com to sell equipment. To date, this option has provided the Township with greater exposure to potential buyers and a higher sale price than anticipated. Successful sales were completed on a 4.5L Turbo Charged John Deere Power Unit, a 2002 GMC Safari passenger van; a 1989 Eager Beaver trailer; and a 1985 Elgin Pelican street sweeper. Road Dedications In January, the Township accepted dedication of approximately 0.14 miles of road in the Heim Heights Subdivision. Heim Avenue from South 15th Street to Monroe Avenue was officially added to the Township’s road inventory and is now eligible for State Liquid Fuels funding. In January, the Township also accepted dedication of approximately 0.44 miles of road in the Penn Commons commercial development area. Dedication was accepted for North 10th Street from Hardwood Drive to Saint Mary Street; North 11th Street from Hardwood Drive to Saint Mary Street; and Hardwood Drive from Saint Mary Street to North 10th Street. These streets were also added to the official Township inventory with the State Department of Transportation. RECYCLING Act 101, Pennsylvania’s Municipal Waste Planning, Recycling and Waste Reduction Act of July 1988, mandates recycling in all municipalities with a population of 5,000 or more. Under the Act, East Buffalo Township is required to implement a once per month collection curbside program to collect at least three (3) recyclable materials. For East Buffalo Township, those three recyclables are clear glass, colored glass and aluminum cans. Residents must also separate leaf waste from other municipal waste. Commercial, municipal and/or institutional establishments must separate high grade office paper, aluminum, corrugated paper and leaf waste and other materials deemed appropriate by the municipality generated at commercial, municipal or institutional establishments and from community activities. Although not required under Act 101, East Buffalo Township serves as a drop-off recycling facility for the County. 2016 Annual Report for East Buffalo Township, Union County, PA 10 | P a g e The Public Works Crew is responsible for all curbside and drop-off center recycling activities. Brush, Yard Waste & Christmas Trees Christmas tree collection was completed in January. Brush and yard waste collection was performed in April, May, June, September and October 2016. The Township continued to utilize the U.S. Penitentiary Public Works and Community Service Program to aid in the staffing of the brush and yard waste collection. The program is able to provide three to four participants, which keeps Township Public Works Crew members available to perform other maintenance projects and/or provide sufficient manhours to cover for vacation days of the Crew. Collection in 2016 resulted in processing of approximately 1,463 cubic yards of brush, yard waste and Christmas trees. This was down slightly from the approximate 1,573 cubic yards collected in 2015. The 2016 estimate is the lowest volume since 2010, which may or may not be somewhat related to the volume calculation for the replacement vacuum truck put into service in 2016. Collection of Leaves Curbside leaves collection, performed using a driver-controlled vacuum, began in October and the last round of collection throughout the Township was completed after Thanksgiving. Due to mechanical issues with the truck, the final collection was not completed until later than anticipated. In fact, the last round was not completed until after our first snowfall in December. Collection in 2016 was approximately 3227 cubic yards. This was down slightly in comparison to the 2015 collection of approximately 3,387 cubic yards; yet, the 2016 collection volume ranks second highest collection volume over the past 10 years. Curbside & Drop-Off Center Recycling Curbside collection was completed once per month during 2016. Collection includes clear, brown and green glass, as well as aluminum cans. The Township Drop-Off Center is open Monday of each week, except for Township holidays, which shifts the opening day to Tuesday. The Center is also open one Saturday each month. The facility is manned by one member of the Public Works Crew during hours of operation to assist users and to ensure that materials are source separated. Individual bins for source separated materials are provided for clear glass, green glass, brown glass, PETE plastic, HDPE plastic, aluminum, bi-metal, paperboard, magazines, corrugated cardboard, office paper and newspaper. Lycoming County Resource Management Services (LCRMS) provides transport services for the bins filled with materials from the drop-off and curbside collection. In 2016, the County of Union was informed that LCRMS would need to begin charging $75 for each transport service. Originally, the County was asking the partnering municipalities to pay half of the applicable fees. However, during the budgeting process the County Commissioners announced that they would pay for the full fee assessed, which is set to begin in May 2017. 2016 Annual Report for East Buffalo Township, Union County, PA 11 | P a g e Due to the requirements of Act 101, the recyclables collected by the Township, either curbside or at the drop-off center, must be source-separated. That’s the long way of saying that the Township can’t provide our residents with Single Stream Recycling. However, Single Stream Recycling is a service being provided by several private refuse haulers serving East Buffalo Township. Single-stream was first provided by a private hauler to residents in East Buffalo Township in 2012. Since then, single-stream increased in popularity and seems to have held steady for 2016. This option has presumably been popular due to the high convenience factor and the low service cost. With an extended downward trend in the sale price of recyclables, private haulers may be forced to increase fees to their customers. Should that happen, the Township may experience an increase in collection if residents opt out of single-stream. LCRMS provides tracking of quantities collected directly through East Buffalo Township recycling collection, as well as private hauler single-stream recyclers. Tonnage amounts for 2015 and 2016 indicate a slight decrease in overall volume in 2016. Municipal Collection Tonnage Private Hauler Single-Stream Tonnage Total 2015 113.87 366.8 480.67 2016 113.89 358.18 472.07 Change 0.02% -2.35% -1.79% 902 Grant The Township was awarded an Act 101, Section 902, Round 54 grant, with a program and spending window of July 2014 through June 2016. This grant program provides a 90% reimbursement for expenses related to the operations of a recycling program. In 2016, the Township published a spring newsletter that was mailed directly to residents and commercial businesses. Surplus copies were available at the municipal building. A replacement leaf vacuum truck was received in March 2016 in time for the start of the brush and yard waste collection season. The required program audit was completed by Herring, Roll & Solomon, P.C. and submitted to the Department of Environmental Protection in November. In November 2015, the Township submitted for an Act 101, Section 902, Round 56 grant. The grant was awarded in June 2016, with a program and spending window of November 15, 2016 through November 14, 2018. The leaf vacuum that was purchased in 2016 had a final purchase price greater than the system quoted for purposes of grant funding two years prior to the actual purchase. With Round 56, the Township will be able to receive additional reimbursements for the truck. In fact, approximately 73% of the funds requested are associated to the leaf vacuum truck. Other projects funded include newsletters, curbside recycling bins, additional security cameras and a paper shredding service. The Township also joined with Union County Recycling for an Act 101, Section 902, Round 56 grant. In conjunction with the other County recycling drop-off facilities supported by municipalities, the County grant award includes funds to repair and/or replace drop-off center dumpsters. 2016 Annual Report for East Buffalo Township, Union County, PA 12 | P a g e CONTRACTED ROAD PROJECTS In 2016, 3.64 miles of Township roads were included in contracted road maintenance project and 1.76 miles of roads were included in contracted road construction project. East Buffalo Township utilizes services provided through PennDOT District 3 Municipal Services for preparation of road project bid documents. Bids are publicly advertised and Township staff ensures that known potential bidders are aware of the competitive road project availability. Awards were made to the lowest responsible bidding contractor. Hammaker East Ltd., based in Fayetteville, PA, was awarded the bid for Bituminous Fiber Reinforced Seal Coat w/CRS-2PM Oil. The final maintenance cost was $141,721.68, which was expended from the State Liquid Fuels account. Gutelius Excavating, Inc., based in Mifflinburg, PA, was awarded the contract for edge repairs of Stein Lane. The final construction cost was $207,627, which was expended from the General fund. Once the road projects were awarded, postcards were mailed to residences directly impacted, and some indirectly impacted, by the projects. Notifications were also posted on the Township website. Bituminous Fiber Reinforced Seal Coating The 3.64 miles of Township roads included in the contracted Bituminous Fiber Reinforced Seal Coat maintenance project included: Reitz Boulevard (T706) - SR 45 to Township Line; approximately 2,350 feet. Haire Avenue (T712) - Farley Circle to Farley Circle; approximately 660 feet. Farley Circle (T711) - Reitz Blvd to Farley Circle; approximately 1,310 feet. Meixell Circle (T724) - Reitz Blvd to Reitz Blvd; approximately 1,708 feet. Baylor Boulevard (T707) - Bull Run Crossing to Reitz Blvd; approximately 1,215 feet. Smoketown Road (T355) - Stein Lane to SR 15; approximately 5,350 feet. River Road (T620) - SR 15 to Township Line; approximately 6,625 feet. Construction Edge Repair The 1.76 miles of Stein Lane (T432) from Furnace Road to Smoketown Road, left and right edge repair was completed in anticipation for paving the same distance in 2017. Following several reviews of the road structure, which was originally a State road, it appeared that the road substructure was very good at the center line, but there was a lack of adequate substructure along the road edges. The resulting rutting and edges breaking away came as no surprise when viewing a cross section of the roadway at numerous locations. Stein Lane is in the top ten most highly traveled roads in the Township. The rutting and edge breaking of the roadway was approaching hazardous condition levels in some areas, especially around curves. 2016 Annual Report for East Buffalo Township, Union County, PA 13 | P a g e The Township has been making improvements to Stein Lane over the past four years. The portion remaining as the Township approached the 2016 paving season was from Furnace Road to Smoketown Road. When opening for bidding, the Township prepared a bid for the project from Furnace Road to Turtle Creek, with a bid alternate for Turtle Creek to Smoketown Road. Once the bids were received and the PennDOT District 3 Municipal Services representative reviewed a projected cost for paving the following year, it was determined that the Township should accept the bid alternate. Using a four foot wide milling machine to extract three feet of roadway and one foot of berm, Gutelius Excavating milled out both road edges to a depth of 10.5 inches. Subbase, number 2A stone, the width of the milled area was compacted at a 6 inches depth. Three feet of the milled area was then paved with 4.5 inches of 25MM base coat and the remaining foot was packed with 4.5 inches of 2A stone shoulder backup. That is, how it looked on paper. The final product width varies consistent with natural structures (e.g., proximity of earthen banks to roadway). STREET MARKINGS Alpha Space Control performed painting of street markings, which included double yellow center lines, white road fog lines and crosswalks. PENN HOUSE COMMONS REDEVELOPMENT PROJECT OVERVIEW Site and building construction began in June 2014 for the redevelopment of the former Pennsylvania House Furniture site, a 42-acre tract situated along US Route 15 in the Township. Penn House Commons was opened to the public as a commercial center in August 2015. Approximately nine (9) acres remain for future development. GRANTS This Public Private Partnership between East Buffalo Township and JC Bar Properties, Inc., et al, utilized grant funding obtained and administered by the Township primarily for the site infrastructure development, and capital investments from the private sector for the development of commercial structures, engineering services, matching grant funds and financial security. Redevelopment Assistance Capital Program (RACP) The private investor, in conjunction with the Union County Industrial Development Corporation, secured a Redevelopment Assistance Capital Program (RACP) grant, a Pennsylvania state grant program directed by the Office of the Budget (OB). Grant administration was provided by SEDACOG. Total grant funding equaled $1,500,000. East Buffalo Township, as one of only two entities can do, provided financial security for the RACP grant. This was, in turn, covered by the private developer. In essence, should an audit reveal that RACP funds were improperly allocated, the Township is responsible to repay the State; but with the agreement with the private developer, the developer becomes the ultimate 2016 Annual Report for East Buffalo Township, Union County, PA 14 | P a g e financial backstop and not the Township taxpayers. The Township, in addition to the road maintenance financial security provided by the private developer, is holding an irrevocable letter of credit to cover the full amount of the RACP funding. The State was anticipating audit completion of this grant at the end of 2016. The Township is awaiting a final report in order to release additional funds from the irrevocable letter of credit. Appalachian Regional Commission (ARC) The ARC is a federal-state partnership that works for sustainable community and economic development in Appalachia. In conjunction with the Pennsylvania Department of Transportation, District 3, the Township administered ARC grants for two off-site location improvements. Through the project, the reimbursements consisted of 80% of the total actual costs. In late 2015, PennDOT District 3 determined that the funding reimbursement should have been 100%. This required minor contracting changes and major reimbursement submissions for the two separate grants. The final reimbursement request, or 20% of the total project cost, was submitted to the State in early 2016 and the private developer was reimbursed for the full cost of the projects. MUNICIPAL COMPLEX LIMESTONE RUN RESTORATION PROJECT In 2015, with assistance from the Union County Conservation District and the Northcentral Pennsylvania Conservancy, the Township joined with Lewisburg Borough in a Department of Environmental Protection (DEP) Growing Greener grant application for a stream restoration project for a portion of Limestone Run, an impaired stream, which traverses municipal lands. The Township was responsible for 40% of the total cost. The portion of Limestone Run that extends from a point on the southwest side of the Township property to the road culvert under Fairground Road was targeted for restoration in 2016. In June, County Conservation and Susquehanna University completed a pre-restoration “stream sampling” to evaluate potential effects of instream restoration. It was determined that access to adjoining properties was going to be necessary to complete the project. Union County Conservation District meet with the landowners to explain the project, its potential positive impacts for the stream and surrounding area, and obtained necessary authorizations. The Township will be responsible for site inspections following major storm events to ensure that no log vanes have been dislodged. The Township, however, is not responsible for the cost to repair if there is storm damage. In mid-July 2016, County Conservation, DEP, Pennsylvania Fish and Boat Commission, and the Northcentral Pennsylvania Conservancy began the restoration using riparian buffer plantings and in-stream stabilization structures, such as log vanes and mudsills, all in an effort to counter the effects of stream bank erosion. The project was 80-85% complete, with the intent that the final project plantings would be completed in spring 2017. 2016 Annual Report for East Buffalo Township, Union County, PA 15 | P a g e MUNICIPAL SERVICES PUBLIC SAFETY Animal Control: In 2016, the Township continued participation in the joint Animal Enforcement Program with the Borough of Lewisburg and Bucknell University. Appointed annually by the East Buffalo Township Board of Supervisors, The Animal Control Officer is an employee of the Township who enforces the provisions of Chapter 2 of the Township Ordinances. Emergency Management: Lawson Fetterman, EBT resident and current Public Works Director, was appointed on April 13, 2015 to the position of Emergency Management Coordinator. Throughout the 2016 calendar year, he and Township Manager, Stacey Kifolo, remained active with the Union County Emergency Operations Center. The Emergency Operations Center, located at the Union County Government Center, located in the Township consists of computers, communications and other equipment used in the event of an emergency that may affect the residents of the township. Fire Companies and Ambulance Services: The Township is served by William Cameron Engine Company (WCEC), a combined career staff and volunteer department. WCEC oversight is provided by a strictly volunteer board. Each of the five municipalities served, East Buffalo Township, Buffalo Township, Kelly Township, East Chillisquaque Township and the Borough of Lewisburg, appoint a representative and an alternate to the Municipal and Community Advisory Committee. In 2016, the members of MACAC continued to work on a new Intergovernmental Cooperation Agreement (IGA), which would change the current department oversight structure and the municipal contribution formulary. Police Services: East Buffalo Township is served by the Buffalo Valley Regional Police Department, which was formed in March, 2011, through an Intergovernmental Agreement with the Township and the Lewisburg Borough. In 2016, two new Commission Members from the Township brought a new outlook to the Intergovernmental Cooperation Agreement (IGA) and many of its facets were more thoroughly examined for compliance and fiscal accountability. East Buffalo Township representatives who serve as Commission Members were successful in seeing that the Commission fulfill a long overdue, and IGA required, fiscal audit. Herring, Roll & Solomon, P.C. was retained to perform a fiscal audit for the years 2012, 2013, 2014 and 2015. In addition, these same members compelled the entire Commission to seek alternate health care insurance premium quotes, which resulted in a significant cost savings for the Commission without sacrificing coverage for officers. In 2016, the Township took the imitative to engage the Lewisburg Borough Council in discussions regarding the existing Intergovernmental Cooperation Agreement (IGA). Although the Township Chairman initially approached members of Borough Council in September 2016, only one meeting was held, December 13, 2016. 2016 Annual Report for East Buffalo Township, Union County, PA 16 | P a g e In late December 2016, the Township Board took action to, as the IGA provides, request 50% of the budgeted Police Protection Units (PPUs) for 2017, instead of the long standing and indeterminate 52% that the Township had been paying since the Department’s inception. RECREATION Recreation Authority: East Buffalo Township is served by the Buffalo Valley Recreation Authority (BVRA), which was formed through an Intergovernmental Agreement with the Township and the Lewisburg Borough to organize year round programs and services to help sustain better health and wellness. The administrative offices of BVRA are located at the Township municipal building. The organization has been permitted to provide limited programming in the Township community hall in an effort to help them grow programs and become more financially stable. Throughout 2016, BVRA was unsuccessful in negotiating an agreement with representatives for the Miller Recreation and Wellness Center. However, BVRA has made arrangements to relocate its gymnastics program to the repurposed high school. Since 2006, the Township has been holding funds in Capital Reserve as its obligation to provide financial security for BVRA on a PENNVEST loan. The interest rate was 3.468%, with 10 more years remaining on the loan. In 2016, the Township worked with BVRA to pay off the PENNVEST loan and enter into an agreement that provided the Township with the mechanism to essentially reduce its quarterly allocation to BVRA by the value of the repayment of funds at 0% interest over 10 years. This action will result in a significant cost savings for BVRA and, ultimately, the Township. BUILDING CODES ENFORCEMENT Codes Enforcement: Central Keystone Council of Governments (CK-COG) is utilized by the Township for Uniform Construction Code Enforcement Plan Review and Permitting, Residential & Commercial UCC Building Inspections and International Property Maintenance Code Enforcement. UTILITIES The Township continues to enjoy working closely with utility companies providing services within its boundaries. Public Water: For those areas served by public water, East Buffalo Township is served by Pennsylvania American Water. Public Sewer: For those areas served by public sewer, East Buffalo Township is served by the Lewisburg Area Joint Sewer Authority (LAJSA). Electric Utilities: The Township is served by Citizens’ Electric, which is based within the Township. Natural Gas: For those areas with connection to natural gas in East Buffalo Township are served by UGI Utilities. Expansion of service in the Township is expected in the coming years. 2016 Annual Report for East Buffalo Township, Union County, PA 17 | P a g e COUNTY GOVERNMENT During 2016, Township Manager, Stacey Kifolo, continued to represent East Buffalo Township on the Union County Greenway and Open Space Plan Steering Committee, which was originally called to action in 2015. The final Union County Greenway and Open Space Plan is expected to be presented to the County Commissioners in 2017. OTHER POST-EMPLOYMENT BENEFITS (OPEB) All Township non-union employees, and their spouses, are eligible for OPEB medical, dental and vision coverage provided the employee meets all three criteria: 1.) They were hired on or before November 30, 2013; 2.) They have been employed by the Township continuously as a full-time employee for twenty (20) years immediately prior to retirement; and 3.) They are sixty-five (65) years of age or older at the time of retirement. In addition, the Township is financially responsible for OPEB medical, dental and vision coverage for Buffalo Valley Regional Police Officers who were employed by the Township prior to department regionalization, provided they meet the applicable eligibility requirements. The Township has been providing this OPEB since the 1980s, but until 2013 there was no financial planning for future costs. In 2013, the Township utilized Conrad Siegel Actuaries, the Township’s non-uniform pension plan actuarial firm, to perform a GASB 45 for the Township’s Other Post-Employment Benefits (OPEB) liabilities. With an unfunded actuarial accrued liability in excess of $3.3M, it was obvious that the pay-as-you-go method that had been used to date would not be sustainable as more employees retire. The Township took action on two fronts: 1.) changed the policy so that future new employees would not be eligible for OPEB medical, dental and vision coverage; and 2.) earmarked reserve funds for long-term expenses. Each fiscal year, funds were transferred from the operating fund to the reserve fund. In fiscal year 2013 the amount was $50,000; in 2014 it was $130,000; and in 2015 it was $170,000. With $350,000 earmarked by the beginning of 2016, the Township set out to find a suitable and applicable investment option. In March, the Board of Supervisors approved Cetera Investment Services via West Milton State Bank as the OPEB Investment Fund manager. Solicitor Matson, in conjunction with the consulting services of Eckert Seamans Cherin & Mellott, LLC, presented the Supervisors with the applicable Uniform and Non-Uniform Employees’ PostRetirement Frozen Welfare Benefits Plan and Trust. In September 2016, the Board adopted Ordinance #384, establishing the Plan and Trust. The Board also approved the transfer of an additional $50,000 from the general operating fund to the reserve fund for investment in OPEB; giving the Township $400,000 now in the reserve account for OPEB. In early 2016, the Township Manager obtained quotes for several local banks for the financing of funds for OPEB investing. Solicitor Matson obtained DCED Local Government Unit Debt Act approval to increase the indebtedness of East Buffalo Township and in September 2016, the Township closed on a loan with West Milton State Bank. The $500,000 was borrowed for a period 2016 Annual Report for East Buffalo Township, Union County, PA 18 | P a g e of five (5) years with an interest rate of 2.18%. Interest paid over the term of the loan is expected to be approximately $28,200. With the $400,000 from reserves and the $500,000 from the loan, in September 2016, the Township opened its OPEB investment account with Cetera Investment Services via West Milton State Bank. The goal at the time of investment was to not withdraw from the account for at least five to six years. Given the future projected costs and growing number of retirees, the Township will most likely need to pay for these expenses from the general operating fund, with the investment fund being available to lessen the financial burden on the general fund in future years. The projected costs will obviously need to be continually examined to aid in the determination of use of funds from the investment account. Should there be any funds remaining in the investment account after the Township satisfies it obligation to retirees, the Township would be permitted to absorb those funds into its general operating fund. The GASB 45 actuarial valuation as of January 1, 2016 for OPEB, provided by Conrad Siegel Actuaries, was received by the Township in April. The unfunded liability was $3,324,123. The unfunded liability only decreased $59,726, in spite of the plan losing three (3) non-uniform and two (2) uniform personnel. The liability for non-uniform employee benefits decreased $489,200; while the uniform liability increased $429,474. This could be attributed to the significant difference in medical benefits premiums between the Township and the Buffalo Valley Regional Police Commission (BVRPC). In 2016, the BVRPC was paying $6-12,000 more per year for employee/spouse coverage than the Township was paying for benefits. The next GASB 45 for OPEB is scheduled for January 1, 2019 valuation. MUNICIPAL LOAN REFINANCING In 2013, the Township closed on a $2M construction note from Swineford Bank for the demolition and re-building of the township complex. The 20-year amortization note had interest at the Tax Free 10-year fixed-rate of 2.49% per annum; with the rate after the initial interest rate period resetting at 67% of the 30 Day LIBOR rate plus 200 basis points. In 2016, M&T Bank, Swineford Bank and West Milton State Bank were contacted for refinancing the Note. West Milton State Bank (WMSB) provided the best loan terms, without extending the original 20-year repayment time. WMSB offered a 17-year amortization note; with interest at the Tax Free 7-year fixed-rate of 2.1% per annum; with the rate after the initial interest rate period refixed based on the Pittsburgh Federal Home Loan Bank 10-Year Amortizing Cost of Funds Index plus a margin of 10 basis points. Floor rate of 2.1% and cap rate of 5.25%. Solicitor Matson obtained DCED Local Government Unit Debt Act approval, allowing the Township to proceed with the General Obligation Note, in the maximum principal amount of $1,855,655.00, to West Milton State Bank. The note with West Milton State Bank was finalized and the Construction Loan closed with Swineford in June 2016. Over the first seven years of the WMSB loan, the Township will save over $35,000 in interest payments. 2016 Annual Report for East Buffalo Township, Union County, PA 19 | P a g e 2015 AUDITING The Board of Supervisors appointed Herring, Roll and Solomon, P.C. to perform the 2015 Annual Audit. This firm performed a comprehensive audit of all township accounts and prepared the Department of Community & Economic Development (DCED) Municipal Annual Audit and Financial Report, filed with the state by March 15th each year. The Audit was publicized in the Standard Journal and copies of the Financial Statement and the DCED report are on file for public inspection at the Township building. 2016 BUDGET The East Buffalo Township Board of Supervisors approved the 2016 budget during a December 14, 2015 public meeting. The 2016 budget consisted of seven distinct funds: General, Liquid Fuels, Capital Reserves, Street Lights, Fire Hydrants, Fire Protection, and Planning & Zoning. GENERAL FUND The General Fund represents the principal operating fund for the Township, including general government administration, facilities maintenance, public works, public safety, professional services, planning & zoning, health & welfare, culture & recreation, and debt service. The budget was passed with a 0.2 millage real estate tax increase, yet it was anticipate that $55,000 from reserves would be needed in order to balance the budget. In September 2016, the Board of Supervisors approved a revision of 2016 General Fund budget, adjusting for projected increases in anticipated revenue, projected decreases in expenses and a transfer of $300,000 to Capital Reserve. Actual revenues exceeded expenses to end the 2016 fiscal year. STATE LIQUID FUELS Funds are provided by the Commonwealth of Pennsylvania from gas taxes disbursed annually to all municipalities in the state. The receipts are based upon Township road miles and population. Use of the fund is limited to road maintenance/construction and related equipment purchases. In 2016, State Liquid Fuels funds were utilized for contracted road maintenance projects and winter road maintenance materials. CAPITAL RESERVES Funds for a replacement dump truck and a replacement leaf vacuum truck ordered in 2015, with corresponding funds held in the Capital Reserve fund were transferred back to the General Fund at the time of each equipment purchase. In September 2016, transfers from the General Fund to Capital Reserves were as follows: $50,000 for General Reserves; $50,000 for Equipment; $50,000 for Other Post-Employment Benefits; 2016 Annual Report for East Buffalo Township, Union County, PA 20 | P a g e $100,000 for Streets/Roads Maintenance; $50,000 for the newly added subaccount for the Municipal Complex, which is intended to assist in capital projects such as building roof and HVAC replacements in future years. There were two significant expenditures from the Capital Reserve Account during 2016. The first significant transfer was Other Post-Employment Benefits (OPEB) subaccount funds to an investment platform. The second transaction was to pay off the BVRA PENNVEST Loan. As the Township reduces its contribution amount to BVRA, the amount of the PENNVEST loan will incrementally diminish. As this is happening, General fund dollars will be reallocated to the Capital Reserve fund in a newly installed subaccount for Parks & Recreation. STREET LIGHTS FUND Provides funding for installation and maintenance of street lights. Funds are generated from taxation, which is based on front foot assessments for properties that directly benefit. 2016 marked the fourth straight year that the Board of Supervisors suspended this taxation. FIRE HYDRANT FUND Provides funding for maintenance of fire hydrants. Funds are generated from taxation, which is based on real estate value for properties within 780 feet of a hydrant. 2016 marked the fourth straight year that the Board of Supervisors suspended this taxation. FIRE PROTECTION FUND A real estate tax assessment of 0.46 millage provides an annual contribution to the William Cameron Engine Company for fire protection services, as well as payment of the Township’s share of Workers' Compensation Insurance for the Department. PLANNING & ZONING DEPARTMENT FUND This account is specific to services being provided in the partnering townships of East Buffalo and Kelly. Total budgeted expenses were split between East Buffalo (58%) and Kelly (42%). The significant difference in level of funding between the two municipalities was due to an agreement that required East Buffalo Township to pay more for health care benefits provided. PENSION FUND The fund required $0 municipal contribution in 2016. Pension Advisory Committee meeting was held on Monday, February 22, 2016 at 10AM. The committee typically meets two times per year to review fund performance. The committee placed one fund that is performing at peer average on an internal “watch list”, but recommendations for changes were made. The next pension plan actuarial is scheduled to be performed in 2017. 2016 Annual Report for East Buffalo Township, Union County, PA 21 | P a g e GENERAL FUND CHARTS FOR 2016 General Fund Tax Revenue 4.85% Real Estate Tax 30.48% Earned Income Tax 64.67% Local Service Tax General Fund Non-Tax Revenue 1.41% 1.65% 11.22% Local Government Units Fines & Forfeits 11.26% 48.96% Licenses & Permits Interest & Rent Revenue From Services 14.55% 10.95% Miscellaneous Revenue State Revenue General Fund Expenses 1.81% 1.94% 3.01% 5.79% 6.56% 36.71% 25.04% INSURANCE PUBLIC SAFETY - OTHER CULTURE & RECREATION EMPLOYER WITHHOLDING & BENEFITS 8.42% 10.72% PUBLIC WORKS - SANITATION DEBT SERVICE GENERAL GOVERNMENT HIGHWAY, STREETS & ROADS PUBLIC SAFETY - BVRPD Note: Percentages are based on pre-audit general fund revenues and expenditures. Transfers to and from the Capital Reserve Account have been excluded from the calculations. 2016 Annual Report for East Buffalo Township, Union County, PA 22 | P a g e
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