INSIDE: FALL Home Improvement - B7-8
Press And Journal
WEDNESDAY, SEPTEMBER 25, 2013
VOLUME 123 - NO. 39
28 PAGES
75 CENTS
MIDDLETOWN
Borough slams new police pact
THE END OF AN ERA
Spokesman calls arbitration system “seriously flawed’’ By Daniel Walmer
Press And Journal Staff
It was one of the missing pieces of the puzzle in determining Middletown’s ability to maintain economic stability, according to borough financial experts. Now the Middletown police contract is in place, and it isn’t good news for Middletown taxpayers, according to Chris Courogen, borough secretary and director of communications. An arbitration panel began meeting in February to award the contract after negotiations between the borough and the Middletown Police Officers Association broke down. Since then, borough financial consultant Mark Morgan has identified the results of contract negotiations as a crucial factor in determining whether or not the borough will have to become an Act 47 financially distressed municipality. In the end, neither side appeared completely happy with the contract, which froze police salaries for 2013, awarded a 4 percent raise in combined annual and longevity pay increases in 2014, and reopened the contract for further wage negotiations in 2015. Police also will not be required to contribute to their health insurance premiums through at least 2014.
“I certainly would not consider it a win for … the borough taxpayers, for the residents of the borough, the ones who have to pay the bill,” Courogen said at a Tuesday, Sept. 17 press conference. “They’re the ones who aren’t seeing their wages go up, are constantly having to pay for their health care and yet are being asked to carry the burden for the police officers to get massive pay raises without having to contribute to their health care like everybody else does.” In fact, Courogen was so disappointed with the result that he is encouraging borough Council and residents to support state-level reform measures to the “seriously flawed” binding arbitration system, including laws that would require arbitrators to take a municipality’s financial situation into account when giving the award. In Middletown’s case, the award “fails to adequately recognize the serious financial circumstances facing the borough,” Adam Santucci, borough solicitor and a boroughappointed arbitrator, wrote in a statement. Impartial arbitrator Walt DeTruex did acknowledge in the arbitration award that the borough “is experiencing serious financial circumstances,” yet argued that police de-
Press And Journal Staff
David Unkovic, Harrisburg’s former receiver and a longtime public finance attorney, presented a second opinion on Middletown’s financial plight at a Middletown Borough Council meeting on Tuesday, Sept. 17, and he didn’t mince words: The problem is serious, and will require difficult solutions. “I think you have real financial problems to deal with,” said Unkovic, who has served as chief council of Pennsylvania’s Department of Community and Economic Development. Unkovic recommended approval by council of financial consultant Mark Morgan’s Act 47 Early Intervention Program financial plan for the borough. “Overall, I think it’s a good plan,” he said. After that, he said, council should consider several significant means of combating its financial problems, including selling the borough-owned water and sewer system, entering into Act 47 financially distressed status, regionalizing police services and increasing real estate taxes. “I think you’re at a tipping point,” he said. The problems, Unkovic said, stem from
NEWS Halloween parade set for Oct. 21 The Kiwanis Club’s annual Halloween parade in Middletown will be held at 7 p.m. on Monday, Oct. 21. Registration for the parade will begin on Thursday, Sept. 27 and end at 11:59 p.m. on Friday, Oct. 11. The parade features local marching bands, sports teams and residents dressed in costume. For more information, readers can check out the club’s website at www.kiwanisclubofmiddletown.com.
unfunded liabilities for borough employee pensions and a longtime structural deficit, meaning that the borough has less general fund revenues than expenses. The borough balances its budget by transferring profits from the sale of electricity to its general fund, a practice that Unkovic said can lead to uncompetitively high electric rates. The borough need not eliminate such transfers – at least not immediately – but should strive to reduce them over time, he said. Rather than relying heavily on electric profits for general fund revenue, he said, the borough should consider “moderate” real estate tax increases. “Everything else being equal, expenses are going to go up over time,” he said. “You need some sort of millage increase on a regular basis.” Chris Courogen, borough secretary and director of communications, said council is committed to avoiding a tax increase if at all possible, especially given the additional taxes residents have to pay to the Middletown Area School District. “We obviously don’t want to add to that burden,” he said. “At the same time, you have bills that need to be paid.”
Press And Journal Photo by Noelle Barrett
The seat that Lower Swatara Twp. Commission President Frank Linn has held for years is vacated when Linn announced his resignation for health reasons.
In Lower Swatara, a longtime commissioner resigns; DiFrancesco named as replacement
W
Four local communities will hold their trick-or-treat night on Thursday, Oct. 31 – on All Hallow’s Eve itself, the spookiest night of the year. Middletown will hold trick-or-treat from 6:30 to 8:30 p.m. Highspire, Lower Swatara Twp. and Hummelstown will hold trick-or-treat from 6 to 8 p.m.
Lower Swatara parade set
Please See OPINION, Page A8
Borough blames union for stopping decorations
DEVELOPMENT ZONE APPROVED
By Daniel Walmer
Press And Journal Staff
Press And Journal Staff
If you drive through Middletown this fall, and during the holiday season, don’t expect to see hay bales, pumpkins, Christmas lights or Santa Claus. One year after an elaborate borough-sponsored holiday celebration, Middletown Borough Council has pulled the plug on lights and other seasonal decorations, blaming union grievances and financial difficulties for the decision. Borough solicitor McNees, Wallace and Nurick advised the borough against using volunteers to decorate the town and Hoffer Park this year because of outstanding union grievances from last year’s decorating activities, Councilor Please See DECORATIONS, Page A8
They’ll get a jump on Halloween in Lower Swatara Twp. The Lions Club Halloween parade will be held at 6 p.m. on Thursday, Oct. 17. The parade begins at the club’s headquarters located at 2 Theodore Avenue. Registration can be made from 5 to 5:45 p.m. at the headquarters on the day of the parade.
MASB votes 6-2 for creation of a tax-exempt Keystone zone By Daniel Walmer
1325 VINE STREET MIDDLETOWN, PA 17057
Trick-or-treat set for All Hallow’s Eve
The township’s commissioners felt DiFrancesco was the best person to take Press And Journal Staff Linn’s place. Without much discussion, the board voted unanimously on Wedneshen Frank Linn decided he day, Sept. 18 to appoint DiFrancesco to was going resign from his fill Linn’s unexpired term, which ends on position on Lower Swatara Dec. 31, 2015. Twp.’s Board of DiFrancesco was out of town Commissioners after 36 years, Wednesday and could not attend one of the first people he called the meeting, but Commissioner was Nick DiFrancesco. Michael Davies told the board he DiFrancesco, a former townspoke to DiFranceso beforehand. ship commissioner and Dauphin “He [DiFrancesco] expressed to County commissioner, offered to me his deep interest in coming step in for his friend, but knew he back and serving the communihad big shoes to fill. “Frank really stands out as just DiFrancesco ty,” Davies said. “I really cannot think of anyone who has deeper an amazing public servant,” Diexperience or skills.” Franceco said. “I’ve never known DiFrancesco has several years of expesomeone more committed to Lower Swarience in state and federal government tara Twp. than Frank Linn ... I honestly relations and has spent many years serving think no one will ever accomplish more the community. In 1992, he became the than Frank has done in his entire career.” youngest person to be elected president of Highspire Borough Council. Linn’s resignation DiFrancesco became a Lower Swatara Township commissioner in 1996, and Colleagues, family pay tribute served as a county commissioner from to Frank Linn at his last township meeting – C1 Please See DiFrancesco, Page A8
By Noelle Barrett
NO CHRISTMAS LIGHTS
717.944.7874
Quick
Please See POLICE, Page A8
Former receiver says financial woes “real’’ By Daniel Walmer
Be a sponsor in our Big Buck Contest. Please See Page C12
The Middletown Area School Board has approved the creation of a Keystone Opportunity Zone that would offer tax breaks for the development of 114 acres of Harrisburg International Airport property, becoming the fifth and final municipality to approve the zone before it can become reality. The Capital Region Economic Development Corp. will now submit the application to create the zone to the Pennsylvania Department of Community Economic Development, said Shawn Donovan, an economic development specialist for CREDC.
The state will review the application and likely make a decision on its approval by the end of October, he said. If the zone is approved, developers will be exempt from local real estate taxes and possibly some state taxes for 10 years. DCED will only approve a limited number of such zones, but Donovan thinks the airport land – including the airport’s old terminal, former Crawford Station land, and former Bethlehem Steel Corp. property – is a good candidate for approval since all the land has been vacant for at least 15 years. In fact, the Bethlehem
pressandjournal.com
TO:
LISTEN Sound Off Audio SUBMIT Photos & Events SEARCH Back Issues SEE More Photos WATCH Videos
Please See ZONE, Page A8
Benko & Benko Associates
1083 DAIRY LANE ELIZABETHTOWN, PA 17022
717.361.1025
Accepting new patients in both locations, as well as most PPO dental insurances • Call us at our new location, 1325 Vine Street, for an appointment today!
Contact Us
Write: 20 S. Union St., Middletown, PA 17057 • Phone: 717/944-4628 • E-mail: Info@PressandJournal.com • Home Page: www.pressandjournal.com
This is Sheila Collins’ hometown newspaper.