Franklin Township Council Budget Hearing - March 21, 2023

This was a public budget hearing held by the Franklin Township Council on Tuesday, March 21, 2023, at 7:00 PM in the municipal building council chambers. The meeting focused on departmental budget presentations for fiscal year 2023, with public comment on township finances and development issues. No formal votes were taken; the budget is scheduled for introduction at the first meeting of April.

Public Comments & Testimony

• Alex Strauss (285 Houslett Way) questioned the use of the term "surplus" and asked for details on fund balance (reserves) and American Rescue Plan (ARP) spending. The Mayor clarified that the term "surplus" is inaccurate; the township has a fund balance of approximately $21 million, which is used as a safety net and to balance the budget. The Township Manager added that ARP funds total $7.7 million, with plans to spend $2 million on water main replacement in the 4th and 5th wards and up to $3 million for a partnership with Raritan Valley Community College for a satellite campus.
• Michael Bryan (40 Bryan Court) reported 1.5 million square feet of vacant warehouses and warehouses under construction for lease on Schoolhouse Road, with potential for 4-5 million square feet. He argued that noise and truck parking ordinances are unenforceable due to insufficient police staffing, and that electric trucks are not viable for long-haul use.
• Terry Thorston (18 Labed Drive), a member of the Meadows Foundation, invited council to a free open house at historic houses on South Middlebush Road. He corrected a misconception that the township fully funds the houses; the town only pays for bills over $1,000, while the foundation covers operating costs, which are high due to lack of storm windows.
• Jennifer (last name not given) discussed the New Jersey Warehouse Siting Guidance document, distinguishing fulfillment centers from traditional warehouses. She argued that the B9 project is a fulfillment center, not a warehouse, and that traffic impact studies incorrectly use ITE land use code 150 (for traditional warehouses), which can underestimate traffic by a factor of seven. She noted the error may be unintentional but urged the council to use the correct code.
• Marlin Kwan (28J's Corner) supported Jennifer's points, emphasizing that a fulfillment center with 60 bays could generate seven times the traffic estimated. He requested that the council include a pollution study (PM 2.5) and a noise study in the budget, and postpone the B9 hearing until those studies are complete. The Mayor replied that the council has no legal authority to postpone the hearing.

Discussion Items

Department Budget Presentations (Presented by Township Manager Robert Vornlocker and department heads)

• Human Resources/Insurance (Raven Williams): HR budget proposed at $138,450 (increase of $2,950), mainly for memberships in African American and Hispanic Chambers of Commerce for recruitment and training. Health insurance budget at $7,797,850 (increase of $8,500) for a GASB 75 actuarial valuation. Health costs rose $300,000 but were absorbed from the employee contribution reserve. The township is exploring joining a Health Insurance Fund (HIF) for 2024 to control costs.
• Tax Collector (Rossana Gutierrez): Budget $19,866 (increase of $3,822) for printing and postage of tax/water bills, and maintenance of a new folding/stuffing machine.
• Purchasing (Cindy Belanger): Budget $110,200 (increase of $1,400) due to USPS postage rate increases.
• Municipal Court (Keila Martinez): Budget $32,300 (increase of $4,700) for translation services ($5,500 increase) and other minor adjustments. Court continues hybrid operations (Zoom and in-person) as permitted by the state Supreme Court.
• Economic Development/Historic Preservation (Vince Dominach): Economic development budget $15,500 (decrease of $100,175) because consulting funds were moved to planning for a traffic study. Historic commission budget $1,000 for member training.
• Recreation/Youth Center (Beau Byrtus, Wendy White): Recreation budget $105,875 (increase of $2,630). A $23,000 decrease in off-duty police costs (teen rec moved to youth center) was shifted to recreation supplies for program materials. Senior transportation budget $90,411 (increase of $1,776) for Somerset County contract. Council discussed possible park-and-ride for seniors and praised recreation programming.
• Information Technology/Capital (Robert McQueen): IT operating budget $25,576 (increase of $7,473) mainly due to software license renewals and cybersecurity measures. IT capital plan totals $567,000 for 2023, including $50,000 for council chamber camera/broadcast upgrade, fiber optic to Middlebush Park for security cameras and Wi-Fi, and other equipment. The water utility capital includes $105,000 for IT. A calculation error in the capital summary was noted.
• Township Manager (Robert Vornlocker): Budget $284,650 (increase of $2,000), including $240,000 contingency for emergencies (used for senior center flood damage, later reimbursed by insurance).
• Finance/All Other OE (Kathleen Moody, Robert Vornlocker, Andrew Hodulik): Finance department budget $339,076 (slight decrease). Other items: accumulated leave reserve, aid to ambulance ($58,500 flat), aid to fire companies (reduced due to reserve sufficiency), audit services ($71,750, up $33,750 including bond sale contingency), debt service ($723,000 savings from library and DOT grant applied to debt), general legal ($505,000 flat, may be adjusted), interlocal health ($722,650, 2% increase), liability insurance ($1.15 million, up $75,866), library tax ($4,478,589, up $73,159, statutory formula), public defender ($17,000, down $18,000 using trust funds), salary adjustment ($100,000 for retro pay), SCIA solar lease ($11,523, up $4,293), pensions ($7,512,505, up $349,341), tax appeal refund ($5,487, down $744,513 due to $2.9 million reserve).

Financial Consultant Report (Andrew Hodulik)

• Water Fund: Started 2022 at ~$8 million, budgeted use of $3.6 million, ended at ~$6 million due to no water rate increases. A rate increase is anticipated.
• General Fund: Fund balance dropped from ~$29 million to ~$22 million as planned, with regeneration of about $2 million. The goal is to maintain fund balance between $20-22 million. Miscellaneous revenues were $600,000 above budget; current tax collections were slightly lower in dollar amount but higher in percentage, possibly due to large delinquent properties.

Key Outcomes

• The budget is scheduled for introduction at the first council meeting in April 2023. A financial oversight committee meeting will occur on Monday, March 27, to finalize capital funding methods and review legal budget adjustments.
• The township will explore joining a Health Insurance Fund (HIF) for 2024 to mitigate anticipated healthcare cost increases.
• A comprehensive traffic and planning study (funded by moving $100,000 from economic development to planning) is underway; it will include traffic, pollution, and noise components, though the council lacks authority to delay the B9 hearing.
• The fund balance stands at approximately $22 million, considered healthy. The water fund balance declined to ~$6 million, necessitating a water rate increase in the near future.
• No formal votes were taken during this hearing.