November 14, 1994

The budget session for the Supervisors of Franklin Township was
called to order by Chairman Benjamin Sitek at 0905 hours with the
Pledge of Allegiance.  Present were Sitek, Herbert Netzler, David
Henderson and Engineer Mark Corey.

SILVERTHORN ROAD PROJECT
The Township has received a $50,000 Legislative Initiative Grant
from Representative Karl Boyes.  Discussion on how best to use
the money.

Henderson - at $1 per front foot, we would use $17,000 of the
W.A.M. money on Silverthorn.  If we use the whole amount on
Silverthorn we would have to make up $33,000 from Permanent
Improvement and stick it back in a separate fund to build up for
the next road to be paved for use at $1 per front foot.  At that
rate with the 3rd or 4th project, we would be cash poor.

Corey - one condition of the grant is that it must be spent
within one year.

Henderson - Mr. Corey figured $1 a lineal foot which would be $2
a front foot.  I don't think there's 9 1/2 miles of road out
there that would want to pay for paving.  We don't have enough
money to take it from the budget to pave a road.

Sitek - get a bond for 3 million, pave and put the whole budget
toward paying it off.

Henderson - our borrowing base is only around $500,000.

Discussion on storm water fines if the law is enforced.

Corey - first thing needed is a resolution defining how the grant
will be spent.  Inspections of the project, meetings, definition
of the residents payments will all be needed.  My billing rate is
$50/hr.

Henderson - float money will be replaced from general revenues.  
Money from the residents will be used to pay for the financing of
the project.  I put in a 10% contingency for all legal and
engineering fees.  Once the project is up and rolling, the next
projects are cookie cutters.  If everyone on Silverthorn pays
1/10th per year it would only bring in $5,000.  Payments would be
$15,000 a year on the loan.  We must borrow $100,000 for 10 years
at an estimated 8% interest.  The loan will cost $150,000 in the
end.  The taxpayers will be footing the bill for the residents of
the Silverthorn Road paving project.

Corey - what is their incentive to pay?  You can add up to 10%
interest on a lien. 

Henderson - lots of them will pay up front.  We said the lien
would be interest free if the property owner made his payments on
time for each of the 10 years.  After the 10 years the interest
starts.  If half pay up front, we'd have to finance $50,000 which
means we'd be short $2,500 a year which would have to come from
the general fund.

Corey - other residents wouldn't mind paying for rebuilding the
road but would have an objection to paying for Silverthorn
resident's interest.  No one will go out and borrow to pay off
their lien when they have a lien at no interest.  There is no
incentive.  They will use the Township for a banker, you don't
want that.  You can stick to the $5.68 per front foot if you pay
it off.  If you let it ride, there is a cost of doing business.

Netzler - the people look to themselves to pay for the paving.  I
have no qualm with the rest of the Township paying for the
interest on that loan.

Henderson - I'll do a print out on the recapture of the loan. 
How many years down the road can we do the next project.  It
looks like 3 or 4 years.

Netzler - no, 2 years, tighten your belt a couple of holes.  The
initiative is within.  If other roads put their money up front
for the base, we'd then have money for paving.

Henderson - I need to know if we're using an 8" or 12" base. 
What is the load bearing capabilities.

Corey - typically there's not much difference between an 8" base
and a 12" base.  Take a loaded tri-axle up there now and check
out bad spots.

Sitek - I'm all for an 8" base if the road is checked now for bad
spots.  The 8 inches would lower the cost for the residents.

Corey - I see no problem with announcing the grant, the paperwork
should be in the mail.  The 8" base is viable as long as the bad
spots are fixed.

Discussion on undercutting.  The Mack will be loaded with water
and taken over the road with the Supervisors checking for bad
spots.

Netzler moved to authorize Mark Corey and Associates and our
Attorney to contact each other to do whatever needs to be done on
the legal end for the Silverthorn Road project.  Henderson
seconded.  Carried.

Mark Corey left the meeting at 1020 hours.   

BUDGET
Henderson - Alan from Hoover will be at our regular meeting on
Friday at 10:30 a.m. with a proposal on replacing our crushed
gravel.  At 11 a.m. everyone concerned will be here for the
discussion on the lost gravel.

Revenues - a 1 mill increase was projected for the 1995 budget
for Permanent Improvement.  Millage rate:  9 mills, General; 2.5
mills, Fire Department; .5 mills, Municipal Building; 2 mills,
Equipment; 4 mills, Permanent Improvement.

Henderson - leave it until we get the expense side done and see
if it makes a difference.  I dropped Fry Road from the budget to
go toward Silverthorn Road.

Netzler - I think it's a slap in the face to increase even one
mill for work done on Silverthorn.  It's a better sell to put it
in after the project is done.

Henderson - I put it in Permanent Improvement as a cost of
operations, our costs are constantly going up.

Will hold off until Supervisors see the expense side.

Supervisors left to check soft spots on Silverthorn Road at 1037
hours.  Supervisors returned at 1230 hours.

ADJOURN
Sitek called the meeting adjourned at 1230 hours.

Bonnie J. Bernhardt, Secretary