HomeMy WebLinkAboutCOMM - Meeting Minutes - 7 - 2-13-1976 - COMMISSIONERMINUTE
TE BOOK 27
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
Minute No. 7
Office of the County Commissioners
Washington, Pa. , February 13, 1976
The Board of Washington County Commissioners met in regular session with the
following members being present: Commissioners Paluso and Morgan. (Mr. Flynn entered the
meeting later.) Also being present: Chief Clerk Brady; Solicitor Diamond; Budget Director
Gillespie; Controller Mascara; Deputy Controller Daniels; Clay Graham, Land Acquisition
Agent; Coroner Jackson; Michael George, Parks & Recreation; Metro Petrosky, Clerk of Court,-,;
John Cadez of Engelhardt & Powers Associates; Beaver Perkins and Kate Podvia of Volunteers
In Probation; Mr. F. D. Whalen; Mr. Charles A. Crouse; Mr. Joseph F. Fetcko; Jack
Merdian of WJPA: Phil Angelo of The Daily Notes; Mrs. Helen Miller of The League of Women
Voters; John Stevens of The Observer -Reporter and several interested citizens.
Chairman stated that for the record that he, Mr. Paluso, Chief Clerk Brady and
Solicitor Diamond were in attendance.
Chairman asked if there were any corrections, additions or omissionsAo Minute
No. 6, each member having received a copy.
as read.
Moved by Mr. Paluso, seconded by Mr. Morgan, that Minute No. 6 be approved
Roll call vote taken:
Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried unanimously.
(Commissioner. Flynn entered the meeting.)
Correspondence:
Chief Clerk informed the Board of the receipt of the following checks:
(1) Pittsburgh National Bank - Repurchase Agreement - ck. #774653
General Fund
Principle $150, 000. 00
Int er a st $ 159.38
TOTAL $150, 159. 38
(2) Treasurer of the United States - ck. #82, 519, 747 - Acct. #83-1-238889
Manpower Planning Program - $ 80, 000. 00
(3) First National Bank - 30 day investment @_54% - Fiscal Assistance
Trust Fund
Principle $1,150, 000. 00
Interest $ 5,293.15
TOTAL $1,155, 293.15
(4) Pittsburgh National Bank - Weekend Investment @ 4°jo - General Fund
Principe $350, 000. 00
Int er a st $ 116.67
TOTAL $350, 116 .67
(5) Commonwealth of Pa. - ck. #65-1061985 - dated 1-26-76 for
Grant -In -Aid for Rat Control Program - V. Bigler, W. C. P. C.
Acct. 6-B-28 - $8, 000. 00
28 MINUTE BOOK
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
(6) Commonwealth of Pa. - ck. #43-1193703 - dated 2-5-76
Public Welfare, Acct. #6-B-21 - $4, 410. 93
and approval:
for payment.
(7) Mon Valley Health and Welfare Council - Reimbursement for
Dec. 1975 - Senior Citizens - ck. #1323 - dated 12-31-75
Acct. #6-B-22 - $587.17
Chief Clerk then presented the following bills to the Board for their consideration
(1) Sichi Farms Supply, Inc. - $1,175. 30
(2) American Humane Association (Publication) - $15. 00
Moved by Mr. Paluso, seconded by Mr. Flynn, that the above bills be approved
Roll call vote taken:
Mr. Flynn - Yes; Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried unanimously.
Chief Clerk informed the Board of a letter dated February 6, 1976 from John J.
Moschetta, Jr., Attorney at Law in regard to legal services performed by him in 1974 in
conjunction with the 1973 Controllers Report. Mr. Brady stated that the amount of the services
was $ 900. 00.
Remarks:
Mr. Morgan recommended that this be referred to the Solicitor for further perusal as to whether
this is a legally submitted bill.
Chief Clerk informed the Board of a memorandum dated February 9, 1976 from
Ke.ery McAmbley, Director of Washincton County Industrial Development Agency regarding
Penn's Southwest Regional Meeting with Commissioners of Fayette, Greene and Washington
Counties, Directors of Industrial Development. Said memorandum requested the attendance
of the Washington County Commissioners for a luncheon on March 5 for the purpose of giving
Penn's Southwest an opportunity to update the Commissioners with their program of attracting
new industries to Southwestern Pennsylvania.
Chief Clerk read a letter of resignation dated February 10, 1976 from John W.
Ringling, Garage Superintendent at the Washington County Garage, effective May 1, 1976.
Mr. Ringling also thanked the County Commissioners and all the county employees for many
years of pleasant association.
Remarks:
Mr. Morgan stated that Mr. Ringling has been with the County for a number of years and wished
him well in his retirement.
Mr. Flynn stated that he thought Mr. Morgan was expressing the same sentiments of the entire
Board and that Mr. Ringling had performed his services well.
Mr. Paluso recommended that Mr. Ringling be sent a letter expressing the Board's regret
concerning his decision and state our appreciation for his services.
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
Chief Clerk informed the Board of a request from Charles E. Kerr which hadbeen
originally directed to Michael George, Director of Parks and Recreation. Chief Clerk stated
that Mr. Kerr is proposing to hold a Motorcycle and Van Event in Mingo Creek Park on
June 5, 1976, and that Mr. George recomm:ends that the Commissioners approve the event.
Remarks:
Mr. Paluso asked Mr. George if the same people were handling this year's event.
Mr. George stated that these were not the same people, but felt that the organization handling
the event this year would enable it to be just as successful as last year's event.
Moved by Mr. Paluso, seconded by Mr. Flynn, that the Board accept the
recommendation made by Michael George as per above, and that the event be held under the
strict supervision of the Park Director and in compliance with the rules that he has outlined.
Roll call vote taken:
Mr. Flynn - Yes; Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried unanimously.
Chief Clerk informed the Board of a memorandum dated February 10, 1976 from
William P. Sember, Executive Director of the Washington County Planning Commission,
requesting authorization to attend a State-wide County Planning Director's meeting in
Harrisburg, Pa., on February 20, 1976.
Moved by Mr. Paluso, seconded by Mr. Flynn, that the Board authorize the
attendance of William P. Sember at the State-wide County Planning Director's meeting as
per above.
Roll call vote taken:
Mr. Flynn - Yes; Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried unanimously.
Chief Clerk informed the Board of a letter dated February 2, 1976 fief_West Penn
Power Company which had been directed to Clay Graham, Land Acquistion Agent in regard to
the Cross Creek Watershed Project involving the clearing of the proposed lake area at the
Cross Creek County Park. Said letter stated that there will be a charge of $12, 912 for the work
involved to clear the area and construct three separate tie lines to serve the customers who
will remain and are now served by the facilities which must be removed. Said letter also
stated that this charge could increase in event that excessive right-of-way costs are encounter-
ed for the proposed tie lines.
Chief Clerk read a letter dated February 11, 1976 from Richard W. Gubanish,
Chief Assessor, requesting authorization to advertise for Personal Property in the Observer -
Reporter.
Moved by Mr. Paluso, seconded by Mr. Flynn, that the Board authorize the
Chief Assessor to advertise for Personal Property as per above.
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MINUTE BOOK
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
Roll call vote taken:
Mr. Flynn - Yes; Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried unanimously.
Chief Clerk read the following letter dated January 30, 1976 from Robert S.
Stewart, Director of Child Support Program, Department of Public Welfare, Harrisburg and
directed to Louis J. Wilson, Director of Domestic Relations.
Dear Mr. Wilson:
This is to inform you that the proposed Cooperative Child Support Agreement
signed by the Secretary of Public Welfare and dated October 1, 1975, which
was sent to you on October 30, 1975, has expired with the end of the fiscal
quarter.
If the President Judge and the County Commissioners decided to join in a
Cooperative Child Support Enforcement Agreement at this time, we will be
pleased to forward an amended agreement dated January 1, 1976, on request.
If you have any questions about the new agreement, please call me at
717-787-3672 or write as soon as possible.
/ s / Robert S. Stewart
Remarks:
Mr. Morgan recommended that the Chief Clerk send a letter requesting their new forms, but
as to whether we execute them or not, the decision will be made at that time.
Chief Clerk informed the Board that we have received several Notices of Hearing
and Sale on a number of listed properties from Louis Furman, Director of Real Estate.
Said Notices stated that the properties will be presented for sale at the Court of Common Pleas
of Washington County on Monday, March 1, 1976 at 3:30 p. m. in a courtroom.
New Business:
Moved by Mr. Paluso, seconded by Mr. Flynn, that the following names be
appointed as Field Registrars for the upcoming General PrirnAry Election for 1976:
Mrs. Frances Maceiko
Exi.ily Stotka; - Mr. Morgan
Antoinette Yavorsky
Margaret Rockwell (Alternate)
Thomas Puglisi - Mr. Flynn
Joan Douglas
Mrs. Mary Jane Bakaitis
Norma Jones - Mr. Paluso
Helen Jones
Donna Ghilani
Cathryne F. Naugherty (Alternate)
Roil call vote taken:
Mr. Flynn - Yes; Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried unanimously.
Solicitor:
Solicitor Diamond presented to the Board a previously approved lease for the office.
of Magistrate Clyde Tempest, District No. 2, Monongahela, Pa. Mr. Diamond stated that this
MINUTE B❑OK 31
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
lease will be in effect for the term of six years, commencing on January 15, 1976 and ending
on January 14, 1982 for a monthly rental fee of $375. 00. Mr. Diamond further stated that
although this lease has been previously approved, it still needs to be executed by the Board of
Commissioners. Solicitor Diamond also presented a lease for the office of Magistrate John
Luongo, District No. 1 of Washington, Pa. Mr. Diamond stated that this lease will be in
effect for the term of six years, commencing on January 15, 1976 and ending on January 14, 1982
for a monthly rental fee of $400. 00.
Moved by Mr. Paluso, seconded by Mr. Flynn, that the Board approve and execute
the two (2) Magistrates leases as per above.
Roll call vote taken:
Mr. Flynn - Yes; Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried unanimously.
Solicitor Diamond referred to last week's meeting in which he was instructed by the
Board to set a hearing date for three former County employees who were discharged by the
Commissioners. Mr. Diamond stated that since that time, another former employee has also
requested a hearing, and he suggested that February 26, 1976 be set for the hearing at 1:00 p. rr..
in the Public Meeting Room. Mr. Diamond stated that he has notified each of the former
employees by registered letter of this date and that the Hearing Board would be the Board of
County Commissioners. Mr. Diamond also stated that the hearing would be conducted
pursuant to the provisions of the Local Agency Law which would govern the procedure and
conduct of the hearing.
(Adoption of 1976 Budget)
Chief Clerk Brady read the following resolution to the Board for their consideration;
It should be noted for the record that the budget was prepared
and posted on February 3, 1976, and was advertised in the news media as
required by law. The required ten-day advertising on the adoption was
also complied with. I hereby recommend adoption of the following
resolution:
- RESOLUTION -
WHEREAS, the 1976 Washington County Budget in part is based
on tax revenues to be derived from the assessed valuation -of real estate;
THEREFORE, BE IT RESOLVED, that the Washington County
Commissioners do hereby establish and adopt the ratdo of 30% of Market
Value as the basis for levying of taxes for 1976, and that the assessed
valuation be set at $265, 350, 577 as certified to the Board of County
Commissioners by Mr. Richard W. Gubanish, Chief Assessor, under
date of November 4, 1975.
THAT the Budget for the County of Washington for the fiscal
year 1976 be finally adopted by the County Commissioners; said Budget
having been available for Public Inspection in the Office of the Chief
Clerk to the County Commissioners from February 3, 1976 to this date,
in accordance with the Provisions of the Act of Assembly of July 18, 1935,
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BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
as amended. The Resolution as to the Tax Levy and the appropriations
of the County of Washington and the Commonwealth of Pennsylvania fixing
the tax rate for the year 1976 and appropriating specific sums estimated
to be required for the specific purposes of the operations of County
Government, hereinafter set forth, during the fiscal year. Be it resolved
and enacted by the Board of Commissioners of the County of Washington,
Pennsylvania, that a tax be and the same is hereby levied on all property
within the said County subject to taxation for County purposes for the fiscal
year 1976 as follows: Tax rate for general County purposes, the sum of
20 mills on each dollar of assessed valuation. This rate of taxation upon
valuation of properties of the County of Washington is required for purposes
of meeting the necessary general expenses for the year 1976. The sum of
2 mills on each dollar of assessed valuation for debt purposes.
Moved by Mr. Paluso, seconded by Mr. Morgan, that the Board adopt the
resolution as per above.
(Remarks)
Mr. Flynn: Before I make my presentation as far as this budget is concerned, I would like to
preface my remarks by saying this. There are quite a number of people interested in thW u g ';.
and since posting the budget on February 3rd, a number of people have approached me and
support me in the position that I take. I want the record to show that this involves quite a bit
of work, time, effort, labor and material, what have you, put into what we consider .... the
taxpayers and I am speaking in their behalf... instructive criticism on this budget. No
material or equipment or labor was done at the expense of the taxpayers of this County. It
was all volunteer. Immediately upon receiving a copy of the budget, I called upon the amended
76 budget that Mr. Flynn requested, and I would like this on the record.... our assistance in
reviewing the revised figures for analytic and objective comment. There were a number of
items that were brought to my attention which we felt should be considered prior to the final
adoption. Many of these items could have a very substadtial effect on the final budget, never
theless, this is your decision. I can assure you that our review of the amended budget was
not an attempt to discredit you or your staff in the preparation of the amended budget. We are
fully cognizant on the many items needed to prepare a budget. There were areas from an
objective standpoint which we felt deserved further scrutiny in which Mr. Flynn will be
bringing to your attention. Your final decision may be to incorporate suggested changes in the
final adopted form. It may be your decision not to incorporate the suggested changes. What-
ever you decide, please be assured that as concerned citizens of the County, we meant our
analysis to be a constructive commentary on our amended budget. I also want the record
to show that of the number of people who volunteered to work on this budget, three of these
gentlemen were former employees of this County, and I can assure you that their intent in
working was not with any malicious intent but still in a constructive manner. Now at the last
meeting, Mr. .h4irman, -I requested and made a motion and from a lack of a second I lost the
moti-on and 1. presented to the Chairman- of re- Board in'writing, my request for a public
hearing on this budget and on February 5, you replied to me that there was no need for it and
you did subscribe to the statutory requirements, etc, etc...... I did not question your
statutory requirements as far as the posting of the budget on February 3rd. My question was
that I did not have the opportunity nor was I afforded the opportunity to participate in this
budget. I had no knowledge of the meetings. But be as it may, ...... .
Mr. Flynn then read his statement concerning the 1976 amended budget which is attached and
made a part hereof.
(Concerning the statement Mr. Flynn made which states "Please note that, in any case, the
debt .equivalent is not 2. 0 mills of taxation! " the following discussion took place. )
Mr. Flynn: In other words, I am saying that 2 mills of taxation in that Bond Indebtedness is
entirely too much money because you will end up with, according to your own figures here, with
an 82, 000 balance here in that Sinking Fund. Let me remind you of this gentlemen, on that
Bond Fund Interest to the end of 1975 a total of $341, 3491�= had ibeen earned in interest in Bend:
Fund monies. Of, this amount $245, 000 was obligated in the Bond account to the Industrial
Development Revolving Account , however, as of the end of 1975 $86, 349. 82 is unallocated
interest. Add that to the amount of interest to be earned on the $2, 550, 000 Certificate of
Deposit that matured on January 19, 1976 and this would approxiinate an interest rate of around
$12, 000.... add to this reinvestment to the majority of these monies for an approximated six
month period and you easily arrive at $160, 000 of unallocated interest which can be applied
to Sinking Fund Debt Reductions. I might also say that we have $245, 000 that goes into the
Industrial Development Land Bank of that Bond Issue. There was $255, 000 in the Bond Issue
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and there is $245, 000. I am saying that here you have $80, 000 that is unnecessary debt.
MINUTE BOOK
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
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Finally, may I suggest that that debt reduction obligation due to the Sinking Fund can be reduced
in a different manner. (Mr. Flynn referred to Page 7 of his Statement.) It has been my
experience in dealing with people who are familiar with budgets - a budget is adopted and
predicated and based upon past experiences. Now I raise a question.... in our past experience,
in our budget as we proposed, we used a figure of $300, 000 as received from prior years.
That is from real estate taxes only. Our actual receipts in 1975 were $269, 500. 81. Your
budget director used a figure of $200, 000. In other words, he reduced it $69, 000. Now the
question is why, because our track record shows that from 1973 up until the present time that
we have increased substantially over the years. We increased it from $270, 000 to $300, 000
that is only a $30, 000 increase,_ -which woul`d,be more of an accurate figure than decreasing the
$69, 000. So even if he didn't want to use the $30.9,*000,�i&d-ne used the actual figure of
$269. 500 and plus the $84, 000 that is in that Sinking Fund Account as a balance at the end of the
year 3u'dre talking about a mill plus in taxes that can be reduced in one area alone.
Mr. Morgan: Just answer one thing, Mr. Flynn. In November 25, if We are Cks
ll off in the
Sinking Fund, why in your prior administration did you borrow ., Om0&ffi and
Recreation in order to meet your indebtedness from Pittsburgh National Bank on the
$5, 000, 000 Bond Issue:?
71/
Mr. Flynn: We were $3 , 00 short.
�M.
Mr. Morgan: That Is right. Now carry that on over. What is going to happen next year if we
adopt the same procedure? Then next year we will be $60, 000 short. Am I correct?
Mr. Flynn: Not necessarily.
Mr. Morgan: This is what we are -trying to get away from. We are not going to be constantly
borrowing from this account and that account, and juggling money around. The same thing
applies to the Redevelopment Authority. Their last allocation was $22, 000, You had to borrow
that from the Industrial Development Fund because you did not have the adequate proceeds in
that fund. I'll just touch on those as two of them. Right away, you say we have a resevoir
according to your calculations of $80, 000. Just to pay off the prior years we must use up .
$30, 000 of that $80, 000. Maybe Mr. Gillespie would like to answer the other item of why he
reduced the prior years of collections.
Mr. Gillespie: Based on general economic conditions as you look back on 75, I believe we had
$169, 000 in prior years. I think the Controller could explain the reason for the increase in
prior years because it was recorded properly last year. The unpaid taxes from prior years
were recorded correctly last year, and they jumped from around some $100, 000 to $269,'000.
Mr. Flynn: Are you saying to me then that the figures of prior years are incorrect? They
don't come from the Controller, the Treasurer is the one who collects the'taxes. I am saying
that in 1975 we had projected $165, 000, but we collected $269, 000 and the Controller has nothing
to do with that collection, the Treasurer did. But you reduced it to $200, 000 and I am sure
that the economic condition, Mr. Gillespie, has no bearing on it because you couldn't be in
more of a recession than we had in 1975.
Mr. Gillespie: That is a matter of opinion. We have several thousand now, from that Grant
incident yesterday, that will be out of work. I have only one statement to make. This budget
as far as the work that I did, was prepared in accordance with the Acts of Legislature. Exactly
as the legislature laid . it out. Now in your 1975 budget, you/ provided for the transfer from
the General Fund to the Sinking Fund the sum of $398, 775. We go over to the Sinking Fund and
you had a tax resolution in there for an amount of around $428, 000 which meant that you had ove-^
$ 800, 000 that went through the Sinking Fund in 1975. You had a combination of a transfer and a
taxing resolution. Yet, we couldn't come up with enough to pay the principle and interest on the
1974 Bond Issue, which only amounted to $405, 000.
Mr. Flynn: I think you swill find that we have also, in our resolution in adopting the budget, we
only earmarked 1. 65 mills for bond indebtedness purposes.
Mr. Gillespie: But on Page 1 of your General Fund Budget, you figure the revenues of 19 mills
then you went over to the Sinking Fund and figures an,, additional millage which would make it
exceeding 20 mills.
Mr. Flynn: I beg your pardon, sir. Now, Mr. Gillespie, that just is not so. What was the.
millage that went out on the tax notices? It was 19 mills, wasn't it?
Mr. Gillespie: Let's talk ab; t the budget, now. Here you are, 1.6 mills, Sinking Fund and over
here you have 19 mills, if at isn't 21 mills and you even have it figured in - there's $428, 596
as income plus the $30 , 000 transfer out of the General Fund.
��OroCJ�
34
MINUTE -■■
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
Mr. Flynn: I just want to say one thing to you Mr. Gillespie. When you say you adopt the budget
according to the acts of legislature, we do too. It is spelled out on the flat page of the budget
that you are preparing the budget pursuant to the different acts of legislature. I think you will
agree with me that the budget is prepared strictly as a guideline only.
Mr. Gillespie: Not necessarily. A budget is more than a guideline. The budget controls the
fiscal portion of the County as nearly as possible. The Sinking Fund this year... or what you
call the Sinking Fund as in the tax resolution, is a debt service which is described in the local
government debt act. In this Sinking Fund, you can approve surpluses for other debts which
We will definitely have before this year is out. For example, as of yesterday, your contracts
and your County Homes that you let amounted to $5, 575, 000. The amount paid as of yesterday
was $3, 490, 000. The balance due is $2, 079, 000. We now have in the County, a Certificate of
Deposit in the amount of $875, 000, we have 3 quarters of revenue sharing of around a little in
excess of $900, 000 coming in, so the total available income to pay that $2, 079, 000 is
$1, 775, 000. Now that leaves us $304, 000 short. Now we have not got a cost of furnishings, .. .
I don't know of around $500, 000...
Mr. Flynn: I'd say of around $300, 000.
Mr. Gillespie: Alright, $300, 000. We have a dental contract to come in and I just put a figure
of contengencies of about $100, 000 which leaves a total additional money needed this year, if
you are going to open that Home, of $ 912, 000 that we don't have.
Mr. Flynn: We have entitlements coming in until 1977.
Mr. Gillespie: You have four more entitlements coming. Three in this year and one in 1977.
Even with that, it will not be enough to pay for this facility.
Mr. Flynn: The fact remains, and we made inquiries on this some time ago, you can borrow
money on the entitlements due this county.
Mr. Morgan: I want to say that is what we want to get away from - borrowing. Now what
happened here in 1972, you borrowed 12 million dollars for improvements here in the courthouse
and once again last year that same money was refinanced again by the $5, 000, 000 Bond Issue.
Am I correct? In other words, we are just refinancing the same debt over again. We want to
try to get away from that, of refinancing in the future. We are trying to pay our way as we go.
That is the purpose of this new budget.
Mr.. Gillespie: The amount borrowed was $1, 700, 000. Now $1, 020, 000 of that was taken into
the Bond Issue as a funded debt. Right? Now the remaining interest on that has been around
$26, 000 that we carried on this note through its maturity in 1977. As a result of funding it
into the Bond Issue, instead of paying $26, 000 interest, we are going to pay $1, 020, 000 interest
because the total cost of the Bond Issue to the taxpayers is $22, 000 over $10, 000 of which we
only get 5 mills. The interest was greater than the proceeds of the Bond Issue. Now that is
the bill that has to be paid.
Mr. Flynn: You are talking about the $5, 000, 000 Bond Issue. Well, that is a catch all. There
is much more besides the improvements that you are talking about.
Mr. Gillespie: $360, 000 out of that $5, 000, 000 Bond Issue was transferred out of the General
Fund. Now that payment was made due on April 1, 1975. I believe, Mr. Morgan, you asked
me about a $150, 000 General Fund in capital.
Mr. Morgan: Yes. In other words, that was just fed into the general operating funds of the
county to pay the day-to-day bills out of the $5, 000, 000 Bond Issue.
Mr. Flynn: The surprising thing is, if I may say this. On our creditability rating in so far as
we the investors are concerned, this county received an A rating, which is pretty good in view
of the fact that in 1964 we were bankrupt. I have to clear one point up, Mr. Gillespie. The
gentlemen here, just read a resolution and we too adopted a resolution in 1975, Mr. Gillespie,
and if you have taken the time to read it, -,it says in this resolntion whereby the total millage is
19 mills and one mill... 17.4 mills for the purpose of General Fund purposes, and 1.1745 and
1. 55 for Bond Indebtedness.
Mr. Gillespie: I have Controller's Reports from 1964 and on and as you remember we had
taxes for a period of years going into the Sinking Fund for debt services. When the time came
for you to build the Juvenile Detention Facility, you paid cash for it. Although that law has
been repealed and the carry over is still in the local government unit debt act. We know there
are going to be enormous bills here this year and f or the upcoming years. The projection on
your flood control and other programs such as land acquisition and parks is somewhere in
excess of $2, 000, 000 in local money for the next year. I have not seen a five year capital
budget projection that we used to, so I have not had time to see when these things come due,
P
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BOARD OF COUNTY COMMISSIONERS
WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN. MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
35
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but they are expenditures of a capital nature that should be projected up to a minimum of five
years ahead.
Mr. Paluso: Getting back to the Bond Issue, the point I think perhaps was lost there... by
financing a temporary municipal loan and then refinancing it through a Bond Issue you double
the cost of that money. That is the type of refinancing problem that New York City is paying
the price for. They did exactly the same thing. They refinanced temporary loans through
long term bonds and when you do that you not only double the cost of the money that you are
going to have use for whatever project, but you are -also going to have payments to make every
year out of the General Fund. That is an accumulative effect, and the longer it goes the worst
the situation gets. Somewhere along the line you have to stop, face the facts and pay these
loans as you get them. You pay your bills during the year that you are taxing for them. We
have to get off that track before we get along it any further, or for a year or two or three,
but the problem is growing the longer you forestall. That is why I think the time is now to
say, let's stop and get up to date and get on a cash -in and cash -out basis. I think then in the
following years that we can effectively cut the cost of government, or ,at least at the very
worst try to maintain them where they are even though the costs are rising. The more money
we commit and have to pay and on those kind of arrangements, the less money there is
available to provide those kind of services, pay the bills, provide the necessary wage increase,
the Union contracts demand,- there is less and less money each year for that kind of thing.
That is the reason for the Sinking Fund allocation.
Mr. Flynn: Well, I just wish you would have attended the budget hearings that we had in 1975.
Mr. Paluso: The budget hearings you are always referring to have nothing to do with what
went into this book for 1975. Those budget hearings are only... were of your own statement,
you had requests at this very table from every department head for $15, 600, 000 and you have
pared it down in 1974 to $9, 000, 000. When was that done, Mr. Flynn? At what meeting were
those parings down done? In what public meeting were those parings down done? When were
those figures done in a public meeting? They weren't and you know it. It is impractical to
do it. It has to be done by the staff because they are talking about wage policies, they are
talking about salaries and financing, and it has to be done in staff meetings as you well know,'
and you have stated many times how many hours your staff has put in to do the arithmetic and
necessary paring to be presented to you before it was put into the book and adopted. Now you
know very well those are your words. That is exactly what was done here. The budget hearing-,
you keep referring to is that an office holder or department head comes in and says I want
$1, 000, 000 for my office, you know very well his budget is only going to be $400, 000 plus those
wage increases and you used those figures that these people presented, and they were presentee
in good faith. They knew they weren't going to get a $15,,600,;000 budget out of it, as well as
you knew it, and I knew it and so did they. And when the final paring was done and the final
budget came out at $9, 000, 000, I am talking about two years ago when you made the statement
about the $15, 000,,000, it was done by your staff without anybody else's input and knowledge,
except the day it was posted it was given to me the same as everybody else. The arithmetic
was done. Let's disspell that little myth right now.
Mr. Flynn: Let's not refer to it as a myth. You are now giving input, telling me what should
have been. I am suggesting that by saying, that the input that you are telling me now and
considering it is valuable input, you should have been at those meetings to give us your advice.
(Further discussion was held. )
(Mr. Flynn then read a portion of his Statement concerning unpaid bills of previous years, and
the following discussion took place. )
Mr. Morgan: Mr. Gillespie, do you want to respond to that?
Mr. Gillespie: I do not want to. respond to that because I think that I would be usurping the
prerogative of the Controller, who is the Supervisor of Fiscal Affairs in the County.
Mr. Mascara: I requested in prior years that the allocation be made in the expenditure for the
budget on unpaid bills. It is apparent that the Washington Community Affairs saw fit to insert
that account in the budget and I would like to point out to Commissioner Flynn that any time he
refers to double standards in the County to look at December 31, 1975 County Budget whereby
the Commissioners have receipts due and payable from prior years amounting to $565, 000.
In essence your accruing income that was due you from prior years and on the other hand, you
failed to make appropriations for unpaid bills fromprior years. I have talked to you and
Mr. Whalen over the past several years encouraging you to put amounts in the particular
section "615". I think that it is good sound fiscal practices to include that. There are bills
still coming in, and the mere fact, I think that it was over $118, 000 yesterday, and there are
still bills coming in. That is proof enough to indicate that the appropriation was not in excess
of anticipated bills of prior years. I am personally concerned and I feel that it should be in
there.
36 MINUTE BOOK
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
Mr. Paluso: I would also like to list another little item that should be listed there and there
is the probability of a law suit to collect the money from the engineering contract that was signed
a year and some months ago with McDonald Associates. We got repeated bills for the original
amount that was due upon signing the contract that was never paid, plus the balance of that
contract. I know that it has been bandered ar®und for several months at these meetings tT
yourself, myself' and Mr. Jones, about what we do owe that gentleman. We signed a contract
and our signatures are on it. I sort of suspect that from some legal advice that I haven't been
able to get, that we are going to have to pay it. And that would be $30, 000 more on top of that.
Mr. Flynn: What contract are we talking about?
Mr. Paluso: The Airport Master Plan Contract signed with the initial retainer of $3500 upon
signature of this contract, which was never paid, plus the balance of the contract, if the man
sues for the balance of it.
Mr. Morgan: I have scheduled a meeting with Mr. DeiCas, to discuss this problem.
Mr. Flynn: In view of the fact that you have asked the Controller for his opinion, I will continue!,
Mr. Paluso: The Controller has to be part of the budget -making process because alot of the
information has to come from his office.
Mr. Flynn: In reply to Mr. Gillespie and the Controller. On January 16, 1975 over the signature
of Mr. Frank Mascara and the letter addressed to the then Chief Clerk, Mr. Whalen. I quote
"Relative to our meeting, concerning Account No, 615, please be advised that it is the intention
of this office to separate and maintain an Accounts Payable which will lead to more accurate
calculations for the 1976 Budget." Now that was in January, 1975. And here is a print out in
January 1976, it shows that you are using, the gentleman is using Account 615, and there is
no money appropriated in the budget, that we are operating under right now, then he expended
the sum of $114, 787 without any authority whatsoever.
Mr. Mascara: I didn't anticipate that the new budget would include an appropriation for
Account No. 615. We have in Account No. 615, not only included these amounts, on a budget
basis but they are independently broken down so that, one, in the event that they did not make
that appropriation, they could be reallocated and distributed to the various accounts. They
were done in that fashion in the event of reimbursement from some agency, Federal or State,
they could go into Account No. 615 and pick those items out there. So, basically, I am
following the original budget, and it is my understanding that once the Commissioners reopened
the budget, that the original budget is terminated. On Page 53, on the instructions of the
budget, it says General, the budget covers all current receipts and expenditures. Current
means what you are spending now. The receipts you put in your budget for $565, 000, that you
anticipated doesn't coincide with your thinking and there is a good indication of a double
standard there. If you are not going to include the unpaid bills of prior years on one hand, then
on, --the other hand, how can you include readpts from prior years. You are always talking about
the current basis. Account No. 615 is proper and by law has to be included in this budget.
Last year you didn't see fit to put it in, and we had a disagreement about it. I requested that
the new Commissioners consider it and they did put it in. I think that it is a good fiscal
practice that they continue to do this as long as they have any influence.
Mr. Flynn: But the fact remains, sir, that you did say in January 1975, that you were going to
maintain a separate account for Accounts Payable which would lead to more accurate calculations.
Mr. Mascara: I did. That is the basis on which they made their $175, 000 evaluation.
Mr. Flynn: Why wasn't the previous Board of Commissioners notified of your calculations?
A/k. Mascara: You had copies of everything. In fact when I came in here Mr. Flynn, the down
sheet on the 1973 Controller's Report indicated an Accounts Payable, a liability to this County
of $50, 500, when in actuality in all funds it was over a half a million dollars. So in 1974 and
1975 we kept track of those. You were well aware that I requested that you put X amount of
dollars in your 1975 budget and you refused.
Mr. Flynn: Well, would you agree with me that the only way that you could do that is that you
would have to estimate, because it is an impossibility on the execution of a budget to determine
that because you have a cut-off date.
Mr. Mascara: First of all I sent a letter to your office and all of the Commissioners indicating
that I wanted all of the unpaid bills. There is no reason why bills should be coming into this
Courthouse after they are incurred. We have an encumbe ant system. We went according to
the law. The bills and claims presented against this County were presented to the County
Controller, so I could encumber them, these people would have better figures to work with.
37
BOARD OF COUNTY COMMISSIONERS
WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
Mr. Mascara: I think that it will be 2 years before you have a realistic budget. They are
working with figures, a maze in the budget process, a financial maze. There is amount over
expended, there is amount under expended, and there is really no way anyone in preparing
this budget could really know what they are doing. I think that if everybody presents their,
bill to the Controller, and if they are approved or disapproved, the law provides that the
Commissioners can say "No" and send them back to me. I think that the procedures in the
County Code should be followed.
Mr. Flynn: We tried to, but how can we based upon what the gentleman says. You are saying
that how could we, assuming that this County owed me money, for some reason unknown to
you.
Mr. Paluso: Somebody has to authorize it before it is owed to you, so there is an easy way to
estimate whatever is authorized what is owed to somebody, can be written down and added up.
Page 49 of the budget instructions, the first paragraph "appropriating specific sums estimated
to be required for the specific purposes of the County Government", every budget is the best
estimate that the budget preparer can make based on the figures the facts and the conditions
at the time of preparation of the budget. Now the 175 is the best that Mr. Gillespie and the
staff could make according to -the information supplied to him, plus going through the minutes
of previous meetings where money had been encumbered and it hadntt been paid yet. I think
that it is a very good estimation from the actual bills that have come in so far plus the
additional ones that we have gotten each week. If you go back through the minutes of the
meetings you will find that we have a minimum of 1 or 2 or 3 every meeting since January 1st
where we have approved payment of bills from prior years.
(On Page 10 of Mr. Flynn's Statement which concerns the M. A. A. payments and receipts, the
following discussion took place.)
Mr. Paluso: Mr., Gillespie, do you have the letter concerning the deadline of the AG-9 in 1974
Mr. Gillespie: No.
Mr. Paluso: Did not the letter state that the AG-9 for 1974 and 1975 to be submitted by March
31st. Are you saying now that the 1974, that was never done, should be included, and the 1975
and the 1976 included in the 1976 budget. Why wasn't the 1974 submitted?
Mr. Flynn: When they instituted the AG-9, how many years behind were they?
Mr. Paluso: Well, according to the letter, we are two years behind on one and one year behind
on the other. The report, not the reimbursement.
Mr. Flynn: From the very time that the AG-9 was instituted by the State, the Auditor General,
What I am saying is the State itself is two years behind in its payments. When it was instituted,
it was done strictly on that basis, 71 to 72, 72 to 73, 73 - 74 and 74 to 75. When we received
the report, it was two years pending.
(On Page 12 of Mr. Flynn's Statement concerning Grants from the Commonwealth, the following
discussion took place. )
Mr. Gillespie: Everything seems to be 74 due 75, 75 due 76 with the State. Vvr* are on a cash
accounting basis with the County level.
Mr. Paluso: That matter is not settled with Mr. Zander. They are going back and trying to
settle that again, about the compliance going to the "B" Schedule.
Mr. Gillespie: These Governor's Justice Commission grants. I talked with their Accounting
Department and told them that Governor Shapp was elected Governor of Pennsylvania and not
a Commissioner of Washington County and we are under a County Code. They gave alot of
conditions in there that we can not legally meet. If they cannot give us grants where we
operate for the protection of our own public officals, we do not want the grants.
Mr. Flynn: Are you telling me that money that is due this County from the' Commonwealth of
Pennsylvania, we cannot include this on our budget.
Mr. Gillespie: I included it on our budget. What I am trying to say to you is that what you
consider current is a year late with the State. Right?
Mr. Flynn: Yes.
Mr. Gillespie: Then in 76 we shouldn't estimate it in our 76 budget because it won't come in
till1977. Right?
38 MINUTE BOOK
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
Mr. Flynn: The only thing that I have read you is this $500, 000. This is money earned in 75 thEt
is due to the County of Washington.
Mr. Gillespie: Yes, what is going to happen to the money we earn in 76, we are not going to -get
it until 77. Therefore, our current money is what we expect to get from the State this year
regardless of what year it represents.
Mr. Flynn: The money that I am talking about we were going to get in 1976.
Mr. Gillespie: I think that you will find that most of your money, your adopted budget and this
budget - isn't it about $300, 000 apart. If you look under Grants & Gifts you will find to the best
of our ability we have put in there all of the money we think that we will receive during 1976
from the Commonwealth of Pennsylvania.
Nfr. Flynn: You are saying that you put in there what you think, but we are saying in effect
$565, 000 is a figure that we don't think.... .
Mr. Paluso: The person examining the budget, or the average person the taxpayer can look
and see where it came from.
Mr. Morgan: I specifically requested that Mr. Gillespie breakdown every Grant, Gift, etc. by
item and by number in the budget so that we can begin to get some kind of a handle on what is
oDming from where and who. That is why rather than being one lump it is divided out into all
the different facets.
A/fr. Flynn: I would agree with you that one mill is necessary. When we presented our adopted
budget, I knew that in view of the fact that we had a contract that had to be negotiated, I also
knew that it was a statutory requirement that we adopt the budget by December 31st and that
we could not appropriate monies for the satisfaction of our Union negotiations. I said this, and
I said that the next Board of Commissioners would have to reopen the budget. I am sitting
here telling you gentlemen that in two areas alone in your Sinking Fund obligations and you're
underestimating receipts of prior years which could by no stretch of anybody's imagination
could never go back$70, 000 when you use a $200, 000 figure, you would go forward because
experience, the track record, shows that they have been increasing every year because your
total assessed evaluation has been increasing every year and so has your receipts of prior years
under real estate taxes. You have right there gentlemmone area where you can reduce your
proposed millage by one mill. I think that sums it up and I would like to say this too. I think
that you can reduce that unpaid bills by $35, 000. Your 1974 Medical Aid to the Aged could have
increased $160, 000, Court Costs, Act 333; Juvenile Court Justice Commission - $22, 000;
Adult Probation. Here you have the DA in here two times, you have Community Action here
two times; Magistrates could be reduced; Register of Wills increased; Juvenile Probation, etc.
And these program cuts from the libraries of $34, 650. The Comprehensive Health Planning -
$6500; the Industrial Development - $2500; the Redevelopment - $1500; OEDP - $18, 000; The
Tourist Promotion - $8000; the Agriculture Extension by $3750; the Washington County
Conservation District and the Legal Aid Society by $5000. You could restore these program
cuts of $86, 000 to these different programs that I have outlined and you could adopt a budget of
21 mills. In conclusion, raising taxes merely for the sake of raising year end balances or
raising taxes above the level of taxes of those actually needed to meet public service. The need
of taxation is based upon need not based upon having surpluses or building up for two or three
years hence. I think you cross that bridge when you come to it. The 1975 budget when we
adopted the budget at 19 mills, we were severely criticized from all angles, but the fact remains
that we still ended up in the black with a year end balance of $277, 000. Although we used a
figure of $100, 000, you used the exact figure because you had the net balance of December 31st,
and we made our budget on December 5th when we had the cut off date. So, gentlemen, I would
caution you very sincerely, no malice nothing in it. I am saying this in a constructive manner.
There is a question in my mind and it has been brought to my attention by a number of people,
they remind me that there is on the statute what is known as the "Right to Know Act", No.
212, of June 1957; and they remind me also, there is on the statute an act which is known as
Act 175 - better known as the Sunshine Act, and it quotes partially "anyone who participates
in a meeting or hearing knowing that it is being held or conducted in such a way to intentionally
prevent an interested party from attending or with the intent of aborting the requirements of
Act 175 may be found guilty of an offense. " The interested party in this case was me and other
people who were involved in this budget right here, where the cuts were made, they did not give
them the courtesy of an input or anything else and I think it is my own laymans opinion, that
my rights have been violated under the Sunshine Act by not being invited to attend these
meetings. If I had been invited and chose not to attend that is "shame on me", but the fact
remains that I was not.
Mr. Paluso: A number of the savings that you enumerated at the end were written out of your
budget. As I recall the Fenn Southwest, The Legal Aid, a lot of those were written out of your
budget as they are not a savings on this budget. The transfer of the OEDP under the Planning
Commission umbrella does not elimate the OEDP as you well know. It places firmer hands as
W11JUTE BOOK
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
m
L
a matter of fact. The transfer of Mr. Graham and his Land Acquisition Office to the Tax
Assessment Office structure I think lends itself to a better mutual exchange of ideas by the
fiscal location if nothing else. So, some of the things that you have written off here today and
enumerated on are not accurate. They have been changed or put into different lights or perhaps
you didn't notice.
Mr. Flynn: I am certainly glad that you raised that point Mr. Paluso,again I am A County
Commissioner and I represent the people and I did not know.
Mr. Paluso: When I got a copy of it, I asked Mr. Gillespie some of the same questions and he
pointed them out to me and you had the same right.
Mr. Flynn: Just a minute, please. I did not have the right that you did to sit down and discuss
the budget. I am not knowledgeable of the fact that these programs had been eliminated until
I had seen it in this budget. I did not have the courtesy and let me contradict you in one place.
You are talking about the OEDP, I have a letter here from Mr. Coleman. In here he says
about your decision to eliminate the OEDP office.
Mr. Paluso: I can't speak for Mr. Coleman. I didn't write the letter to him.
Mr. Flynn: It is addressed to the Chairman of the Board.
(Final Discussion)
Mr. Flynn: I want to remind you, and remind you publicly, that from here on in I expect to be
notified of all meetings relating to the operations of this County's government. Whether I
attend them or not, that is my responsibility.
Mr. Morgan: First I would like to make a few closing remarks. First I would like to say that
this budget, I think is a fine job on the part of Mr. Gillespie. He consulted with us when we
were asked to be consulted with. He broke it down in a manner which was requested so that we
could begin to get some idea as to where these Grants & Gifts are coming from. What further
reduced allocations for various offices, where we thought there could be reductions, etc. We
moved items, we merged departments as you certainly have gone through, Mr. Flynn. And
principally and basically, we reduced the overall budget, regardless of how much money, it
was still reduced. Am I correct, sir? The total expenditures were reduced. Your
suggestion that this budget was formulated with disregard to the Sunshine Law is unfounded.
The immediate budget was published and advertised as provided by law in the fashion that has
been done in the past. There were no meetings as defined in the Act. There were staff
decisions. There were questions asked by Mr. Gillespie. Whether he asked you any or not,
I really don':t know, but I have been in the office ever since I have taken office in January.
And any question that you might have, you are welcome - that door is always open. You could
have come in at any time to discuss this with me, but you failed to come in at any time to
discuss any matter concerning this budget. I feel, Mr. Flynn, that your position is rather
inconsistent. Here you have presented yourself as the heroic taxpayer. That you are the man
that is going to keep the taxes down. And my question to you is, if you could not insert any
new programs into this budget, if we did recut the budget, the budget is still primarily the one
you prepared. Am I correct, sir?
Mr. Flynn: Not with a 3 mill increase. Definitely not.
Mr. Morgan: Well, if that be the fact, then whatever action we are taking, it is to pay your
bills. The bills that you have incurred over the last few years during your past administration.
And I say to you sir, that we are here and we are going to resolve the fiscal mess that this
County is in. We are going to find out where the money comes from and we are going to make
sure that it is dispersed in the proper manner.
Roll call vote taken:
Mr. Flynn - No; Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried.
Regarding Personal Pr-opepty, Chief Clerk Brady read the following:
I recommend that in accordance with the provisions of the Act of Assembly, dated
June 17, 1913, P. L. 507, as amended, that a four (4) mill tax be levied upon all taxable items
authorized in said Act for General County purposes for the fiscal year 1976.
40 MINUTE B❑❑K
BOARD OF COUNTY COMMISSIONERS WASHINGTON COUNTY, PENNSYLVANIA
MALCOLM L. MORGAN, MICHAEL R. FLYNN, EDWARD M. PALUSO, COMMISSIONERS
Moved by Mr. Paluso, seconded by Mr. Flynn, that the above recommendation
regarding Personal Property be approved as read.
Roll call vote taken:
Mr. Flynn - Yes; Mr. Paluso - Yes; Mr. Morgan - Yes.
Motion carried unanimously.
Meeting adjourned.
THE FOREGOING MINUTES READ AND APPROVED:
February 13 1976
ATTEST: ✓�G!
CHIEV CLERK bg
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