John V. Gottschall, Vice Chair - Towamencin Township

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Voting Yes: John V. Gottschall, H. Charles Wilson, Patricia Younce
Voting No: N/A
Abstaining: N/A
Absent: Daniel M. Littley, James P. Sinz
Finance Committee Report
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Supervisor Wilson reported that the Finance Committee had its monthly meeting on Tuesday,
August 23 rd to review budget performance, cash flow, as well as long-term financial strategies.
He noted that the Committee reviewed the financial reports for 2011 through 31 July and that
there are no significant fluctuations of concern in both revenue and expenses.
Supervisor Wilson briefed the Board on the following additional issues that were discussed at the
August Finance Committee meeting.
1. Hanks Barn Discussion
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The Committee was briefed on the damage done to the Township-owned bard on Kriebel
Road during the windstorm on Friday July 29 th ; several of the tin roof sheets had been
bent up. Mr. Ford noted that there had been a building study of the structure completed
approximately ten years ago that recommended the barn be demolished because of the
prohibitive cost of making repairs.
Committee Recommendation: The Committee recommended that Staff meet with Ms.
Laura Hanks, who is a life tenant of the property by means of the sales agreement
between Mrs. Arneth and the Township, to discuss the possible need to demolish the barn
in the near future.
2. MMO - Select Amortization Method
Pension recovery legislation in the form of Act 44 of 2009 provided optional funding
relief that basically comes in two forms. First, asset smoothing can now be as high as
130% of market value for the January 2009 valuations (the cap before Act 44 was
120%). The second short-term relief is that the amortization component of the MMO can
be reduced by 25% in the 2011 and 2012 Minimum Municipal Obligations.
Committee Recommendation: The Township Finance Committee is recommending that
the Township retain its current smoothing level at 110% with no change to the
amortization component of the 2012 MMO.
3. Change Pension Assumptions
The Township’s actuary (Tom Zimmerman of Conrad Siegel) has recommended two
assumption changes to the pension plans. First, an update to a more modern mortality
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