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Come Jan. 1, the North Annville Township supervisors will officially recognize and financially support one fire company for emergency services in the municipality.
That much is known.
What is unknown, however, is whether the newly formed North Annville Fire Company will be composed of both Bellegrove and Union Water Works fire companies since merger negotiations have hit a snag.
At a minimum, Bellegrove members will be part of the new company since they have signed the merger agreement, according to Mark Sallada, Bellegrove’s deputy fire chief.
While Union Water Works members previously agreed to the merger by signing a memorandum of understanding, they still haven’t voted to formally adopt it, according to Union Water Works president James Hoffman Sr.
With the January deadline looming, township supervisors voted Monday to give Union Water Works leaders until Aug. 12, which is the date of the township’s next supervisors meeting, to announce a decision.
Township solicitor Paul Bametzreider said it behooves Union Water Works members to sign the agreement.
“The township has the authority to decide who runs calls within the township,” said Bametzreider. “If Water Works isn’t onboard, then they’re not going to be able to run calls in the township. They can still run calls outside the township. At that point they kind of lose their reason for existing. It’s very important that everybody get together and come to an agreement.”
Board vice chairman Aaron Miller said there will be a new fire company beginning Jan. 1 and that it’s important for that message to be delivered by the merger committee to Union Water Works members.
“The goal is that by next year we’re supporting one fire company because the dollars don’t work otherwise,” said Miller, “and that’s because we want to support the fire company, not that we want to limit funds. But to support a fire company correctly, we can’t do two anymore, it has to be one.”
The merger committee consists of representatives of both fire companies and at-large members from the community. Speaking on behalf of the committee, at-large member Brian Smoker asked supervisors to set a merger deadline.
“At our next meeting this coming month, we’re going to be proceeding with one fire company. We’re going to be putting in the infrastructure for everything we’re going to need and we’re going to be working with Paul,” said Smoker. “The problem is going to be, since Water Works hasn’t made a determination yet, it hampers the process to get something completed, hopefully, by October the first so that everything can be worked out to start by Jan. 1.”
Resident Ron Weber said when two entities merge that an audit typically occurs prior to its adoption. He asked if that was going to happen since that request was made by Union Water Works members.
Smoker, who is a retired accountant, said the township solicitor and board members review financial statements on an annual basis and accept those numbers as presented. He said while a Comfort Letter could be provided that audits are not being recommended.
Smoker added that equipment will be listed as assets and there will be an accounting of available cash come Dec. 31, which is the last day the two companies will exist as separate entities.
Weber noted that there are investment assets for both companies with Smoker replying that those entries in the merger paperwork refer to cash, which is easy to document.
“Cash is easy, cash is cash,” said Smoker. “To go in and try to determine all of those (past) income and expenses is difficult.”
Smoker noted that once the merger is completed, an electronic records system will be implemented so that the new company can provide detailed information concerning its finances. Smoker added that cash has been documented for both companies and is the biggest asset to be verified closer to the merger date.
Weber replied by stating his concerns are the location of the financial buckets and what’s in those buckets, especially since there’s a request for a fire tax within the township once the companies have merged.
Smoker noted that a fire tax has not been proposed yet, but will be so that the township can pursue a $1 million grant for the replacement of fire company equipment.
One of the sticking points in merger negotiations has been a requested audit of both companies, a request made by Union Water Works officials. Those same officials also oppose the implementation of a fire tax.
Sallada said Bellegrove has a checks and balance system in place and that each expense is itemized at fire company meetings so that members know exactly how volunteer dollars are spent.
Bellegrove’s monthly meetings are open to the public,” said Sallada. “You might just see a number here, but there’s a full ledger sheet. In, out, every expense, every dollar, every penny is tracked to a T. We’ve had the same treasurer now for 15 years, probably, 12 years, I think.”
Sallada added that the company has a group of individuals within the fire company and one non-member who collectively conduct an annual audit of the financial records.
“We do try to protect ourselves but we try not to spend money doing it. We do have those ledger sheets, we do have those records,” said Sallada.
Weber asked supervisors if they were comfortable moving forward without an audit.
Miller said he understands it’s difficult to backtrack under a system of cash-in, cash-out that’s existed for years, but added he also understands that a new financial tracking system will be created for the new entity.
Following the meeting, Hoffman told LebTown that he supports the merger but that other Union Water Work members still have some questions.
“Some people feel their questions have been answered and some feel they don’t and that’s the problem,” said Hoffman. “People have said if they get the right answers to their questions, then they would go through with it.”
He added a vote is scheduled concerning the merger at Union Water Works next regularly scheduled meeting, which is set for the first Wednesday of August. He said the company has hired an individual to help them sort through the remaining issues.
In other township business, the supervisors voted to:
- Grant a subdivision/land development plan presented by Van Der Ploog North Weaber Street self-storage facility. The request is for minor grading for an existing stormwater basin located in North Annville Township with a majority of the facility situated in Annville Township.
- Approve their June 10 meeting minutes and the treasurer’s report.
- Agree to pay the monthly bills as presented by township secretary/treasurer Adam Wolfe.
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