CLEARFIELD – Yesterday, the two-day, non-jury trial started for TreasureLake’s plan to secede from SandyTownship and to incorporate as its own borough. Clearfield County President Judge Fredric J. Ammerman is presiding over the case.
The two-day trial stems from a majority report after a five-person committee considered evidence and testimony in the fall of last year during a series of public hearings. The committee was made up of Chairman Peter Smith, a Clearfield attorney; Brady LaBorde and Mark Sullivan of Sandy Township; and Jason Gray Jr. and Robert Hanak of TreasureLake.
Smith, LaBorde and Sullivan represent the committee’s majority in their filing, which Ammerman could accept and put a halt on TreasureLake’s borough plans. Or, Ammerman could decide to side with the minority – Gray and Hanak – and advance Treasure Lake’s plan to a voter referendum for registered voters of that community.
Deborah Grass, a municipal consultant with Delta Development Group Inc., testified first before Ammerman. She was tasked with reviewing the potential impact of the incorporation of TreasureLake as its own borough. Grass said she reviewed U.S. Census data, community research information, financial reports and prior testimony and expert reports for the case’s proceedings.
According to her, SandyTownship currently has a $3.5 million budget, which is derived mostly from tax revenue. In fact, she said that 82 percent of its budget came from revenue sources. She said that SandyTownship provided police services, public works, planning/zoning, economic development and recreation to its residents.
Grass said typically, second-class townships mostly focus on roadway maintenance. Speaking from her experience, she said most townships rely on the Pennsylvania State Police and don’t provide their own police services. Grass said the average per capita expense, including TreasureLake, is relatively higher in SandyTownship, as compared to other townships within ClearfieldCounty.
“There are higher (amounts of) services in SandyTownship. But TreasureLake isn’t getting all of those services,” she said. She said that SandyTownship’s municipal government and authority are currently financially healthy.
So far as TreasureLake’s financial status, Grass said in 2011, its Property Owners Association collected $3.9 million in assessments from its residents. She said in 2012, the POA collected $4.2 million in assessments. However, Grass noted that TreasureLake residents are also paying taxes to SandyTownship.
Grass said as part of the preparation of her report, she visited TreasureLake. She was surprised by the amount of amenities provided to the residents there that you wouldn’t find elsewhere. Grass also took notice of the diversity of homes, including townhouses, condominiums, single-family homes, etc.
She also visited SandyTownship, which she said was a typical second-class township. She said it had a modest township building and police station and a variety of homes and some industrial uses.
According to Grass, if the incorporation occurred, SandyTownship would have approximately 7,000 residents. TreasureLake would then have approximately 4,000 residents. If the incorporation occurred, she said SandyTownship would have a smaller population and lower demand for services, meaning it could reduce its general government expenditures to $321,000. However, Grass said SandyTownship would still be one of the “high-end” second-class townships in ClearfieldCounty.
For her report, she said if the incorporation occurred, she assumed that some of the current POA administration would transition into roles with the new Treasure Lake Borough. She projected that $205,000 would be adequate for general government costs for a manager, administrative assistant, etc.
When the issue of police services arose, Grass believed SandyTownship could reduce the current level of its police force. She said it could operate with five full-time and five part-time police officers after the incorporation, and she estimated that it would cost $100,000 per regular, full-time officer.
Grass said although it would be reducing its police force and its related costs, it would increase its level of services. She said that SandyTownship police would go from 0.66 officers per 1,000 residents to 0.74 officers. Grass said its patrol area would be reduced, as it wouldn’t any longer be responsible for TreasureLake.
If the incorporation occurred, she projected $385,000 for the public safety of the new Treasure Lake Borough. She said the new borough government had a few options, including keeping its current security, creating its own police force or contracting with another police agency for coverage. Although she admitted the most costly option was to create its own force, she pointed out that TreasureLake already has a security building and some equipment.
Ammerman criticized the portion of Grass’ report in relation to the number of police officers for other townships. Her report indicated that Bradford, Covington, Greenwood and Knox townships had police officers. He told Grass he had a “major problem” with this, as none of these townships have police officers. Grass told Ammerman she compiled the statistics from those submitted by police agencies as required by the commonwealth.
According to Grass, SandyTownship’s highway and bridges expenses vary from year-to-year but are usually in the area of $1 million to $1.5 million. She said this area would remain relatively the same, although SandyTownship would lose approximately $50,000 in liquid fuels funding if the incorporation occurred. Grass assumed this would also be an area, where the township might want to reduce staffing to be in-line with the actual area it services.
Grass said that she assumed the POA would continue to maintain the private roadways within TreasureLake if it became its own borough. However, she said if it would dedicate its roadways, it would become eligible for liquid fuels funding.
Under cross-examination, she agreed that it wouldn’t be lawful for SandyTownship to maintain the private roadways within TreasureLake. She also agreed that residents are aware that they’ll pay fees for the maintenance of the roadways within their community.
Grass said SandyTownship currently has five volunteer fire departments. Of those, she said that one was housed within TreasureLake. If the incorporation occurred, she believed that the five fire departments would still work together on responses to fire calls.
During her testimony, Grass discussed the SandyTownship’s planning and zoning department. She said it currently employs a full-time staff member to carry out the duties of this department, and she assumed this wouldn’t change. As a cost-saving method, she suggested that it opt to contract these services on an as-needed basis like most other townships.
Grass also discussed the minimal expenses SandyTownship has allocated for recreation, which she felt was largely due to TreasureLake’s amenities being available to non-residents on a fee basis.
When asked, Grass didn’t foresee any possibility of an Act 47 scenario on the horizons if TreasureLake incorporated into its own borough. She said both communities would continue to have adequate support.
She projected a fund balance of $800,000 for the new Treasure Lake Borough under its current millage rate after its first year. She said the new borough’s government might even consider reducing the millage rate, so that it doesn’t have a great surplus.
On the other hand, Grass said SandyTownship would be losing tax revenue from TreasureLake residents. She projected SandyTownship would be faced with difficult decisions related to its staffing and expenditures. Under cross-examination, she didn’t believe SandyTownship would need to raise taxes to operate without the community of TreasureLake.
Grass said in SandyTownship’s position, it would need to evaluate its services and what it could afford if the incorporation occurred. From there, she said it would have to build its budget from the ground up. However, Grass said an incorporation of TreasureLake as a borough would make it fairer for both it and SandyTownship, as the money collected by them would stay within them.
“It creates a community of interest in TreasureLake,” said Grass. “In some ways, it’s already acting as its own municipality.”
Ammerman also heard from Hanak of Treasure Lake and a member of the minority. He said that TreasureLake residents enjoy the amenities, which is why he personally purchased a lot there. Hanak said TreasureLake residents pay taxes to SandyTownships, which would be better served if they were used to the benefit of their own community.
Hanak said TreasureLake’s amenities include golf courses, lakes, athletic fields, etc. and are open to the public. He said what is considered to be the gate is merely psychological, as TreasureLake isn’t exclusively private.
“If we did that, it would cost us revenue,” said Hanak. He said TreasureLake residents put $1.5 million into SandyTownship, which is their windfall at the expense of TreasureLake.
According to Hanak, the lowest he remembers the TreasureLake assessments ever being was $150 around 25 years ago. He said this year, he and other TreasureLake residents paid an assessment of $835 to the POA to cover expenses associated with their amenities.
Also, he noted that in 1996, the POA bought out the original developer of TreasureLake. He said they incurred debt and pay a considerable amount each year. However, he said he can see the results of his $835 assessment paid to TreasureLake while he cannot say the same for his taxes paid to SandyTownship.
Testimony will resume today before Ammerman. He will then hear public comment from 17 residents who signed up to address the court beginning at 2 p.m. Unlike the previously held public hearings, Ammerman said the residents who testify in favor or in opposition will be sworn in, in addition to facing cross-examination by the attorneys involved in the case.