Rofo Council Careful with Capital Reserves

The Royersford Borough Council met for a regular meeting on Tuesday night at to discuss the 2012 budget, building repairs and to approve a new ordinance on dangerous structures. Planning Commission Chairman Paul Chrisman was also to the council's empty seat.

During councilman John Kring's presentation of the finance committee, the 2012 budget was discussed. Kring's main concern was the capital reserve fund.

With the open space project pending and grant money available, Kring said that $177,000 would have to come out of the capital reserve fund. He also noted that there is $657,000 of wastewater treatment plant money set aside, which was collected through interested parties "buying into" the current sewer system. The money is to be used for renovations, additions, etc. Kring said there are no current plans for the use of that money.

He also noted there are no increases planned in the enterprise funds (wastewater treatment and solid waste collection) through the general fund, which is why the general fund was balanced for 2012 with .

Kring continued by saying it is "interesting to note that there is $520,000 in capital reserve." However, he reminded council that Phase III and Phase IV of the urban research and development project would include fees when they begin and with plans to fix windows at the borough building and a pending Friedman Project, there would only be about $100,500 left in that capital reserve fund.

The Friedman Project is a condominium complex that was set to go in on 1st Avenue and Main Street, but has been put on the backburner for various reasons.

Kring said it is important to know that the money for Phases III and IV of the urban project must be paid and submitted to the county for reimbursement. However, it does not have to be paid all at once.

"If we are in a pinch, we can borrow against the wastewater treatment funds [the $657,000]," he said. "We checked with the solicitor and auditor and were told we would be able to do so. We would have to compensate for borrowing that money and the interest paid, so there would be no gain or loss."

He continued by saying the committee talked about paying the money up front, but "the fly in the ointment, so to say is the Friedman Project. That could come out of the woodwork unanticipated at any time."

Council is still working through negotiations with PennDOT on that project, with no final answer yet. But, Kring wanted the council to know that the finance committee is playing worst case scenario to best protect the borough's money.

"We can solve all of this if we go up another mil and stick it in the bank," Kring said. "But, there's no instant need to do that this year. Just know where you're going with this money."

Council voted unanimously to advertise the budget for 2012 for $2.5 million for presentation at the Dec. 13 borough council meeting. It will remain at 6.7 mils for 2012. There will be a public hearing for any questions and concerns.

Council Bullet Points

• Council agreed that replacing the windows on the borough building would not be wise financially at this time, after hearing two bids (approximately $95,000 and $163,000). They will be patching them up with caulk for the time being. The bids were rejected unanimously.
• submitted a request for approval for an outside event for its 50th Anniversary on May 26, 2012, which is the Saturday of Memorial Day Weekend. The event would be held in a vacant lot across the street and it would involve outdoor consumption of alcohol within the means of the vacant lot. Council suggested informing ownership that it must regulate its guests from drinking on the sidewalks, as well as reminding ownership of the 9 p.m. Noise Ordinance.
• There is currently a $5,927.50 estimate on the table for the basketball court near on 3rd Avenue. Council agreed to refer this matter to the Parks and Recreation Committee.
• Council unanimously agreed to pay Maillie, Falconiero & Company Auditor for the tax year of 2011 at the cost of $13,900, which is a $400 increase from last year.
• The construction of Rite Aid was supposed to begin Monday but did not. Council reported the business got its building permit and should be done construction in late April or early May. The Rite Aid would be on Main Street and Lewis Road.
• Bills for November were paid for the amount of $153,365.59 from the general fund.
• Township Manager Michael Leonard reported that the borough is working on the drainage problem at 10th Avenue, and is also close to moving forward on getting a generator at Green Street through Co-Stars.
• The Annual Tree Lighting event will take place on Dec. 3 at 7 p.m.
• A handicapped parking spot was unanimously approved at 409 Walnut St.
• Ordinance #849 - Dangerous Structures was unanimously approved by council. The ordinance describes what a dangerous structure is, which includes damage by fire, wind or other cause, buildings which are so dilapidated that they become unsafe and unsanitary, etc. If the building appeared unsafe, necessary investigations would be administered, along with a hearing before borough council, before any demolition would occur.