2019.06.10 Budget Hearing Minutes

JUNE 10, 2019

The Green Garden Township Budget Hearing was called to order by Supervisor Nolan at 6:45 p.m.
Supervisor Nolan read the Road District Budget & Appropriation Ordinance RB2019-02, and the Township
Budget & Appropriation Ordinance TF2019-02.
Comments- Murday: $230,000 balance not spent. Revenue $659,000. Expenses projected $877,000 about
200,000 plus over revenue. Is there a way to balance? Are we trying to use surplus? Massat: Always make
sure you have enough money in those accounts in case something comes up, you can only spend what is in
the budget. Stone 90,000 if I need 100,000 where from? Murday: Have we ever spent only what is
anticipated? Not project 200,000 over revenue? Massat: We always go over, do we spend over? Sometimes
we do, sometimes we don’t, depends on how bad winters are for salt & payroll. Murday: Understand need for
emergency money, question is we have budgeted 220,000 over revenue, if we didn’t have surplus it wouldn’t
be balanced. Wagner: It is still a balanced budget because you are not going into a deficit. Always start with
carry over, add revenue, subtract expenditures, ending carried over to following year. Last year carried over
20,000 had less snow, so carrying 230,000. If it is not in the budget, it cannot be spent. Murday: If we budget
220,000 over revenue, reason being surplus, and spend rainy day fund, we may not carry anything over if
spent, my concern is being a zero budget. Spend what you bring in. Fiscally responsible way, and if we don’t
use the 230,000 will we lose it? Wagner: What do we do with it? If we don’t put it in the budget we can’t use
it. Murday: Can it go back to the taxpayers? Striggow: Yes it can. Stoub: Reduce Levy to account for surplus.
Wagner: You can reduce levy for next year, what if that’s not enough? Massat: What if there’s a big rain
storm & half the roads wash away? Wagner: Or the snow of “67?” Massat: All the salt, where do we get the
Stoub: How’s credit rating for emergencies? Wagner: Why would you want to borrow? Murday: A lot of what
if’s, to his point, we’re budgeting to overstep, so how can we get it back to the taxpayer? Stoub: Can it, was
the question, how, is a different question. Murday: I don’t think anybody doesn’t want to prepare for rainy day,
what I see is 230,000 sitting there from taxpayers, and I want to know where it’s going, and if any of it can
come back? Then I look at budget proposed 220,000 over revenue, yes it’s balanced but would it be, without
it, or 230,000 to the red? My thought, to be fiscally responsible. Here are revenues, here are expenses, if you
need to build in that expense, build it in somewhere within that revenue, but we have 230,000 cushion
already sitting there. Whether you give it to the taxpayers or not, is up to the board. My concern is, where can
we tighten ship? Wagner: We also have to look at over time, do we want roads to improve or degrade? If we
don’t continue to increase levies & raise road funds (not tax rates) we’d still have gravel roads. If we have
surplus it gives opportunity to improve worst roads, tar & chip some, and pave some that need paving. I think
we always need to be improving roads. Murday: Not disagreeing, then should be built into budget, spend
what you have. If taxpayers complain, you tell them “that’s what we have.” Problem I have is your sitting on
230,000 surplus and the roads are what they are. Rainy day fund, build into budget. Then still balanced.
Wagner: That’s what we’re doing, we don’t want people to say we gave it back & now the roads have
degraded. It was this year, that much carried over. Stoub: What were budget expenses last year, compared
to this year? Point, revenues were 600 couldn’t have been much more last year, expenses this year
budgeted at 800, were they budgeted for 800 last year, and came in at 400? Resulting in 200 surplus?
Wagner: That’s exactly what happened, we always try to leave about 13,000. Stoub: Has this been
continuously building, and are we budgeting to spend all or anticipate surplus at year end? Wagner: Typically
have surplus, at the end of the year we are coming off winter with snow plowing, salt, or washouts, we
always budget everything we have, and carry some. If really bad winter, we may not have any to carry.
Nolan: Joint Road & Bridge we always have surplus regardless, have to have it to look at what bridges your
going to do, to balance. Part of this is also equipment fund we’re saving money to repair equipment also.
Wagner: The 230,000 they’re talking about is outside of those. Murday: Other line items- 22,000
miscellaneous income, source? Massat: If I have to hire guys, correct Bill? Wagner: Example: Like when
Com-Ed comes in and pays for damage to roads, these are revenues not anticipated. Striggow: Was that
based on last year’s? Wagner: Most based on last year’s, have it now where last year’s come out exact on
these items. Striggow: 230,000 would “Retained Earnings” be a better way to put on budget? So it doesn’t
look like your spending it, when holding for a rainy day? Murday: Problem now is you’ve budgeted to spend,
instead of retain. Contractual Services (largest expense item) What is that 300,000? Nolan: Tar & chippers,
pavers. Murday: Is it for material? Massat: Material, labor, contracts, to pave, and tar & chip. Nolan: Average
mile road to tar & chip is 145,000 if I’m not mistaken. Murday: So to Bill’s point, to make sure money is there
so is it already budgeted? 300,000 is for road upkeep, already part of budget, we don’t have to worry about
rainy day. Other road materials 40,000? Massat: Culverts, working on bridges. Murday: You already have
culverts listed on material 15,000, the other commodities lower. Massat: Guardrails, it could be anything.
Wagner: If gravel comes in at 130,000 we’d be covered with the 40,000. It subsidizes the other items. Stoub:
So it’s actually a rainy day fund. Wagner: Unforeseen, 40,000 buffer. Striggow: Contractual Services are
about 70,000 more than last year, are we doing more paving? What roads are designated? Massat:
Bruns,Dralle, overlay 14 miles tar & chip. Nolan: Can I stop to start Regular Meeting and pick back up in


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