2010 Budget - Citizens' Summary

Print
Press Enter to show all options, press Tab go to next option

Township of Lower Merion
Montgomery County, Pennsylvania

2010 Proposed Budget
Citizens’ Summary

November 6, 2009

Bruce D. Reed
President, Board of Commissioners

Commissioner Cheryl B. Gelber
Chair, Finance Committee

Douglas S. Cleland
Township Manager

Dean J. Dortone
Chief Financial Officer



2010 PROPOSED BUDGET HIGHLIGHTS

Key Dates

Public Hearings:

  • November 18
  • December 2

Budget Adoption:

  • December 16

Personnel

  • Full-Time Positions are reduced from the 2009 Budget level of 432 to 428.
  • Full-Time Equivalent (FTE) Part-Time Positions are decreased by 1.5.

Taxes and Fees

  • Real Estate Tax increased from its 2009 level (of 3.68 mills) to 3.82 mills (a +3.8% or 0.14 mill increase).
  • New Solid Waste Fee Structure (beginning January 4, 2010): base fee of $204, plus $50 per container (up to 45 gallons and 50 pounds), new “mini-can” rate of $179 was also created and a new rear yard collection fee (RYCF) of $200 per year for refuse and recycling placed more than five feet from the curb.

General Fund Summary

  • 2010 Revenue is budgeted at $50.5 million, approximately $0.2 million or -0.3% lower than the 2009 Budget.
  • 2010 Expenditures are budgeted at $52.2 million, approximately $0.6 million or -1.1% lower than the 2009 Budget.
  • The 2010 Proposed Budget expenditures exceed revenue by approximately $1.7 million, requiring a budgeted drawdown of fund balance.

This table shows all Township funds subject to the annual appropriation process.

2010 PROPOSED BUDGET
ALL FUNDS SUMMARY
FUND
BEGINNING
FUND
BALANCE
+
REVENUE
-
EXPENDITURES
=
ENDING
FUND
BALANCE
 
GENERAL
$10,710,613
 
$50,474,000
 
$52,158,325
 
$9,026,288
EQUIPMENT
14,016,624
3,360,173
3,565,241
13,811,556
SANITARY SEWER
12,280,340
7,285,000
7,597,499
11,967,841
SINKING
0
9,153,091
9,153,091
0
CAPITAL PROJECTS
1,800,235
27,011,765
28,812,000
0
HIGHWAY AID
0
1,173,800
1,173,800
0
SPECIAL REVENUE
0
4,249,845
4,249,845
0
SOLID WASTE
789,754
6,658,000
6,751,548
696,206
APPLEFORD
101,000
0
0
101,000
SUBTOTAL
$39,698,566
$109,365,674
$113,461,349
$35,602,891
 
TRANSFER BETWEEN
FUNDS
0
 
(13,744,280)
 
(13,744,280)
 
0
 
TOTAL
$39,698,566
 
$95,621,394
 
$99,717,069
 
$35,602,891

REVENUE SUMMARY BY MAJOR CATEGORY
Revenues
2008 Actual
2009
Estimated
Actual
2010 Budget
 
Program Revenues:
Charges for Services
$13,451,784
14,261,753
$16,174,673
Grants
$9,536,232
15,917,973
$19,304,845
Departmental Earnings
$3,087,174
2,704,400
$2,879,000
Licenses and Permits
$4,065,722
3,793,000
$4,026,400
Fines and Forfeits
$1,143,256
1,163,000
$1,310,000
 
General Revenues:
Real Estate Taxes
$27,288,452
27,425,300
$28,485,000
Business Taxes
$8,869,063
11,023,900
$8,856,000
Real Estate Transfer Tax
$3,167,135
2,050,000
$2,132,000
Investment Income
$1,205,805
442,069
$479,800
 
Other:
Proceeds from the Sale of Bonds
$9,000,000
6,282,000
$13,532,765
Transfers In
$12,775,543
3,751,900
$11,598,091
Other Revenue
$868,717
812,500
$479,800
 
Transfers Between Funds
(14,535,624)
(15,056,374)
(13,744,280)
 
Total Net Revenues
$79,923,259
$74,571,421
$95,621,394

EXPENDITURE SUMMARY BY FUNCTION
Function
2008 Actual
2009
Estimated
Actual
2010 Budget
 
General Government
$9,822,989
$10,232,278
$8,947,958
Public Safety
19,771,854
20,551,504
21,310,038
Building and Planning
3,057,748
3,054,277
3,147,672
Community Development
1,406,955
1,596,158
1,818,055
Public Works
10,938,227
11,636,124
11,468,331
Libraries and Recreation
6,459,908
6,718,595
6,861,272
Debt Service
16,342,836
16,636,445
16,746,976
Capital Outlays
12,739,678
11,311,000
28,812,000
Sanitary Sewer
6,667,735
7,419,367
7,597,499
Solid Waste
6,346,946
6,559,166
6,751,548
 
Transfers Between Funds
(14,535,624)
(15,056,374)
(13,744,280)
 
Total Net Expenditures
$79,019,252
$80,658,541
$99,717,069

Function and Description: The General Fund accounts for the financial resources of the Township which are not included in any other Fund. Principal sources of revenue are taxes, licenses and permits, and departmental earnings.

GENERAL FUND
 
2008 ACTUAL
2009 BUDGET
2009
ESTIMATED ACTUAL
2010
BUDGET REQUEST
 
FUND BALANCE - JANUARY 1
$11,408,241
$9,199,817
$12,011,615
$9,060,689
DESIGNATED TO BALANCE BUDGET *
0
2,119,137
1,684,325
REVENUE
50,639,880
50,625,500
50,990,500
50,474,000
TOTAL RESOURCES AVAILABLE
62,048,121
61,944,454
63,002,115
61,219,014
EXPENDITURES
50,036,506
52,744,637
52,257,101
52,158,325
FUND BALANCE RESERVE
0
9,199,817
0
9,060,689
TOTAL RESOURCES REQUIRED
50,036,506
61,944,454
52,257,101
61,219,014
 
FUND BALANCE - DECEMBER 31 **
$12,011,615
$0
$10,745,014
$0
 
Sources of Revenue: Real Estate Taxes (60.6%), Other Taxes (17.5%), Licenses & Permits (8.0%), Other Revenue (6.8%), Departmental Earnings (4.6%) and Fines and Forfeits (2.6%).
 
Sources of Expenditures: Public Safety (40.7%), Debt Service (14.6%), Public Works (13.3%), Libraries & Recreation (13.1%), General Government (12.3%) and Building and Planning (6.0%).
 
Budget Changes: The Proposed 2010 Revenue Budget decreased approximately $0.15 million or -0.3% in comparison with the 2009 Budget. The 2010 Budget includes a +3.8% Real Estate Tax (RET) millage rate increase (from 3.68 mills) to 3.82 mills, effective January 1, 2010. In addition, increased revenues are projected in business taxes (+14.7%), cable television franchise fees (+5.5%), recreation fees (+9.5%), zoning and subdivision fees (+4.5%), street opening fees (+11%), district justice fines (+3%) and the local services tax (+1%). The real estate deed transfer tax is projected to decrease significantly (-41%), while decreases are projected in investment income (-50%), building permits (-15.6%), plumbing permits (-25%), highway aid (-4%) and recreation pool membership fees (-6%).

The Proposed 2010 Expenditure Budget decreased approximately $0.6 million or -1.1% in comparison with the 2009 Budget. This is primarily attributed to the elimination of the General Fund subsidy ($1.3 million in 2009) to the Solid Waste Fund. Otherwise, the 2010 expenditures increased $0.7 million or +1.4%, which includes salary and wages (+3.6%), employee fringe benefits (+2.5%), machinery and equipment (+54%) and other compensation (+4%). Insurance and bonding expenditures are projected to decrease significantly (-25%), while decreases are projected in the vehicle rental charge paid to Equipment Fund (-15%) and professional technical services (-9.6%).

The Proposed 2010 Expenditure Budget includes $1.2 million of projected actual expenditure savings throughout the budget, which is expected to occur through ongoing cost containment and budgetary savings practices. Such savings would result in the General Fund ending 2010 with an actual operating deficit of approximately $1.7 million, thus reducing undesignated fund balance to approximately $8.9 million or 17% of the General Fund 2010 forecasted expenditures, and within the Township's fund balance policy goal range of 15% to 18%. The estimated actual 2009 ending General Fund undesignated fund balance is projected at approximately $10.5 million or 20% of the 2009 General Fund forecasted expenditures.
 
* A portion of the December 31 fund balance is appropriated to balance the following year's operating budget. The 2009 Estimated Actual projects a deficit of $1.3 million thus reducing beginning fund balance at January 1 from $12,011,615 to $10,745,014 at December 31. In the 2010 Proposed Budget, $1,684,325 is being designated from the estimated actual 2009 ending fund balance to create a balanced 2010 Proposed Budget.

** It should be noted that approximately $0.2 million of the fund balance is designated for open encumbrances and not included in the Township's undesignated General Fund balance policy calculation.

GENERAL FUND - REVENUE SUMMARY
 
2008
ACTUAL
2009
BUDGET
2009
ESTIMATED
ACTUAL
2010
BUDGET
REQUEST
 
TAXES:
REAL ESTATE - CURRENT YEAR
$26,192,936
$26,938,000
$26,742,000
$27,758,000
- PRIOR YEAR
953,246
555,000
553,000
574,000
- INTERIM
92,128
100,000
75,000
100,000
ACT 511 - REAL ESTATE TRANSFER
3,167,135
3,600,000
2,050,000
2,132,000
- EMST/LOCAL SERVICES TAX
1,596,610
1,500,000
1,516,500
1,517,000
- BUSINESS & MERCANTILE
7,272,453
6,400,000
9,507,400
7,339,000
TOTAL TAXES
39,274,508
39,093,000
40,443,900
39,420,000
 
LICENSES & PERMITS:
BEVERAGE
18,400
18,400
20,000
20,000
BUILDING & ELECTRICAL
1,660,130
1,907,000
1,400,000
1,610,000
BUSINESS PRIVILEGE & MERCANTILE
107,670
98,000
155,000
110,000
PLUMBING
242,315
206,000
135,000
155,000
STREETS
110,389
144,000
160,000
160,000
HEALTH
66,644
66,000
66,000
66,000
RECREATION
457,438
474,000
427,000
444,000
FRANCHISE FEES
1,013,855
998,000
1,022,000
1,053,000
ALARM REGISTRATION FEES
371,266
400,000
385,000
385,000
OTHER LICENSES & PERMITS
17,615
15,000
23,000
23,000
TOTAL LICENSES & PERMITS
4,065,722
4,326,400
3,793,000
4,026,000
 
FINES & FORFEITS:
ORDINANCE VIOLATIONS
677,852
856,000
695,000
842,000
DISTRICT JUSTICE
465,404
455,000
468,000
468,000
TOTAL FINES & FORFEITS
1,143,256
1,311,000
1,163,000
1,310,000
 
DEPARTMENTAL EARNINGS:
PARKING
1,265,172
1,311,000
1,260,000
1,285,000
POLICE SERVICES
316,870
340,000
320,000
333,000
RECREATION
162,661
179,000
188,000
196,000
ZONING & SUBDIVISION
468,029
418,000
380,000
437,000
HIGHWAY SERVICES
50,335
51,000
52,400
53,000
FIRE SERVICES
3,695
4,000
4,000
4,000
TOTAL DEPARTMENTAL EARNINGS
2,266,762
2,303,000
2,204,400
2,308,000
 
OTHER REVENUE:
PAYMENT IN LIEU OF TAXES
50,142
50,100
55,300
53,000
INVESTMENT INCOME
639,744
600,000
274,000
300,000
INDIRECT COSTS - SOLID WASTE
667,000
695,000
695,000
723,000
INDIRECT COSTS - SANITARY SEWER
496,000
517,000
517,000
538,000
REIMBURSED EXPENSES
484,544
184,000
293,000
300,000
HIGHWAY AID
1,272,646
1,224,000
1,219,900
1,174,000
GRANTS AND GIFTS - POLICE
112,441
125,000
125,000
108,000
OTHER
167,115
197,000
207,000
214,000
TOTAL OTHER REVENUE
3,889,632
3,592,100
3,386,200
3,410,000
 
TOTAL REVENUE
$50,639,880
$50,625,500
$50,990,500
$50,474,000