Lower Merion Township, PA
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Township of Lower Merion
Montgomery County, Pennsylvania
2012 Proposed Budget
Citizens’ Summary
October 21, 2011
Elizabeth S. Rogan
President, Board of Commissioners
Commissioner Paul McElhaney
Chair, Finance Committee
Douglas S. Cleland
Township Manager
Dean J. Dortone
Chief Financial Officer
2012 PROPOSED BUDGET HIGHLIGHTS
Key Dates
Distribution of Budget to the Board, Libraries, Staff and the Media:
- October 21, 2011
Public Hearings:
- November 16
December 7
Budget Adoption:
- December 21
Personnel
Full-Time Positions will not change from the 2011 Budget level of 422 for 2012.
Taxes and Fees
- The Real Estate Tax millage rate will remain unchanged for 2012.
- The SWF structure of a one container per week subscription ($254) plus $50 for each additional container and a RYCF ($200) for refuse and recycling placed more than 5 feet from the curb line. The 2011 fee structure will remain unchanged for 2012.
- The 2011 Proposed Budget anticipates the possibility of an increase to the sanitary sewer rental fee. The Sanitary Sewer Rental Rate will be further reviewed before the official 2012 Sanitary Sewer rental rate is adopted by ordinance and billed in May 2012.
General Fund Summary
2011 Estimated Actual:
- The 2011 Revenue is estimated at $53,633,292, an increase of $249,292 or +0.5% as compared to the 2011 Budget.
- The 2011 Expenditures are estimated at $53,845,873, a decrease of $899,902 or -0.6% as compared to the 2011 Budget.
- The 2011 Estimated Actual expenditures exceed revenue by $212,581, requiring a budgeted drawdown of fund balance.
- The 2011 ending fund balance (undesignated) is estimated at $10,604,476 or 19.7% of the 2011 Estimated Actual Expenditures.
2012 Proposed Budget:
- The 2012 Revenue is budgeted at $54,202,370, an increase of $818,370 or +1.5% as compared to the 2011 Budget.
- The 2012 Expenditures are budgeted at $55,648,981, an increase of $903,206 or +1.6% as compared to the 2011 Budget.
- The 2012 Proposed Budget expenditures exceed revenue by $1,446,611, requiring a budgeted drawdown of fund balance.
- The 2012 Proposed Budget includes $1.4 million of estimated negative appropriations (budgetary savings) in Non-Departmental (Department 70).
- The 2012 Proposed Budget ending fund balance (undesignated) is estimated at $9,157,865 or 16.5% of the 2012 Proposed Budget Expenditures.
| 2012 PROPOSED BUDGET ALL FUNDS SUMMARY |
|||||||
|---|---|---|---|---|---|---|---|
| FUND |
BEGINNING
FUND BALANCE |
+ |
REVENUE
|
- |
EXPENDITURES
|
= |
ENDING
FUND BALANCE |
| GENERAL |
$10,754,476
|
$54,202,370
|
$55,648,981
|
$9,307,865
|
|||
| EQUIPMENT |
14,161,963
|
3,252,715
|
3,916,009
|
13,498,669
|
|||
| SANITARY SEWER |
13,156,066
|
7,394,250
|
7,904,975
|
12,645,341
|
|||
| SINKING |
-
|
11,017,605
|
11,017,605
|
-
|
|||
| CAPITAL PROJECTS |
7,648,209
|
12,566,791
|
20,215,000
|
-
|
|||
| HIGHWAY AID |
-
|
1,199,975
|
1,199,975
|
-
|
|||
| SPECIAL REVENUE |
-
|
4,574,481
|
4,574,481
|
-
|
|||
| SOLID WASTE |
510,065
|
6,757,000
|
6,707,835
|
559,230
|
|||
| APPLEFORD |
101,000
|
-
|
-
|
101,000
|
|||
| SUBTOTAL |
$46,331,779
|
$100,965,187
|
$111,184,861
|
$36,112,105
|
|||
| TRANSFER BETWEEN FUNDS |
-
|
(15,750,340)
|
(15,750,340)
|
-
|
|||
| TOTAL |
$46,331,779
|
$85,214,847
|
$95,434,521
|
$36,112,105
|
|||
| REVENUE SUMMARY BY MAJOR CATEGORY | |||
|---|---|---|---|
|
Revenues
|
2010 Actual
|
2011
Estimated Actual |
2012 Budget
|
| Program Revenues: | |||
| Charges for Services |
$17,324,976
|
$16,383,095
|
$16,270,515
|
| Grants |
9,491,680
|
20,348,457
|
13,772,331
|
| Departmental Earnings |
2,141,996
|
2,833,000
|
2,984,500
|
| Licenses and Permits |
5,116,299
|
4,312,500
|
4,531,000
|
| Fines and Forfeits |
1,069,849
|
1,115,000
|
1,140,000
|
| General Revenues: | |||
| Real Estate Taxes |
$28,056,534
|
$30,887,792
|
$30,837,000
|
| Business Taxes |
8,626,654
|
9,295,000
|
9,433,000
|
| Real Estate Transfer Tax |
2,549,347
|
2,350,000
|
2,460,000
|
| Investment Income |
434,587
|
562,631
|
239,575
|
| Other: | |||
| Proceeds from the Sale of Bonds |
$36,513,322
|
$23,537,990
|
$4,805,791
|
| Transfers In |
11,616,421
|
2,601,000
|
13,715,685
|
| Other Revenue |
1,069,164
|
1,309,757
|
775,790
|
| Transfers Between Funds |
(13,829,053)
|
(15,124,253)
|
(15,750,340)
|
| Total Net Revenues |
$110,181,774
|
$100,411,969
|
$85,214,847
|
| EXPENDITURE SUMMARY BY FUNCTION | |||
|---|---|---|---|
|
Function
|
2010 Actual
|
2011
Estimated Actual |
2012 Budget
|
| General Government |
$9,180,842
|
$9,761,486
|
$10,009,253
|
| Public Safety |
21,118,193
|
21,855,081
|
22,716,340
|
| Building and Planning |
3,126,697
|
3,196,343
|
3,148,068
|
| Community Development |
2,051,465
|
1,378,376
|
1,256,389
|
| Public Works |
11,473,473
|
12,122,391
|
11,899,341
|
| Libraries and Recreation |
6,564,913
|
6,708,383
|
6,985,250
|
| Debt Service |
16,963,755
|
18,641,628
|
20,342,410
|
| Capital Outlays |
28,745,265
|
36,772,600
|
20,215,000
|
| Sanitary Sewer |
7,195,228
|
7,803,215
|
7,904,975
|
| Solid Waste |
6,626,415
|
6,646,053
|
6,707,835
|
| Transfers Between Funds |
(13,829,053)
|
(15,124,253)
|
(15,750,340)
|
| Total Net Expenditures |
$99,217,194
|
$109,761,304
|
$95,434,521
|
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 | ||||
|---|---|---|---|---|
|
2010 ACTUAL
|
2011 BUDGET
|
2011
ESTIMATED ACTUAL |
2012
BUDGET REQUEST |
|
| FUND BALANCE - JANUARY 1 |
$11,387,804
|
$9,033,930
|
$11,017,057
|
$9,357,865
|
| DESIGNATED TO BALANCE BUDGET * |
-
|
1,361,775
|
-
|
1,446,611
|
| REVENUE |
51,225,121
|
53,384,00
|
53,633,292
|
54,202,370
|
| TOTAL RESOURCES AVAILABLE |
62,612,925
|
63,779,705
|
64,650,349
|
65,006,846
|
| EXPENDITURES |
51,595,868
|
54,745,775
|
53,845,873
|
55,648,981
|
| FUND BALANCE RESERVE |
-
|
9,033,930
|
-
|
-
|
| TOTAL RESOURCES REQUIRED |
51,595,868
|
63,779,705
|
53,845,873
|
55,648,981
|
| FUND BALANCE - DECEMBER 31 ** |
$11,017,057
|
$0
|
$10,804,476
|
$9,357,865
|
| Sources of Revenue: Real Estate Taxes (61.4%), Other Taxes (17.3%), Licenses & Permits (8.3%), Fines and Forfeits (2.1%), Departmental Earnings (4.2%) and Other Revenue (6.7%). | ||||
| Sources of Expenditures: General Government (11.7%), Public Safety (40.7%), Building and Planning (5.7%), Public Works (12.7%), Libraries and Recreation (12.5%) and Debt Service (16.7%). | ||||
|
Budget Changes: The Proposed 2012 Revenue Budget increased approximately +$0.8 million (+1.5% ) in comparison with the 2011 Budget. The 2012 real estate tax millage rate remains unchanged and is proposed at the 2011 level (4.19 mills). Revenues are projected to increase in cable television franchise fees (+13.6%), building and electrical permits (+11.3%), recreation fees (+9.4%), street permits (+7.1%), plumbing permits (+6.4%), Highway Aid (+6%), and indirect costs - Solid Waste and Sanitary Sewer Funds (+4%). Investment income revenue is expected to fall (-50.7%) and decreases are projected in other revenue (-27.9%) and reimbursed expenses. The Proposed 2012 Expenditure Budget increased approximately +$0.9 million (+1.6%) in comparison with the 2011 Budget. This is primarily attributed to transfers to the Debt Service and Solid Waste Funds (+11.5%), salary and wages (+2.6%), professional technical services (+7.3%), other personal services (+10.6%) and other compensation (+2.1%). Employees benefits (-2.5%), Equipment Fund charges (-8.4%), utilities (-4.4%) and contracted services (-10.6%) expenditures are projected to decrease. The proposed 2012 Expenditure Budget includes $1.4 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 2012 with an actual operating deficit of approximately $1,446,611, thus reducing undesignated fund balance to approximately $9.2 million or 16.5% of the General Fund 2012 forecasted expenditures, and within the Township's fund balance policy goal range of 15% to 18%. The 2011 Estimated Actual ending General Fund undesignated fund balance is projected at approximately $10.6 million or 19.7% of the 2011 General Fund forecasted expenditures. |
||||
| * A portion of the December 31 fund balance is appropriated to balance the following year's operating budget. The 2011 Estimated Actual projects a deficit of -$212,581 thus reducing beginning fund balance at January 1 (from $11,017,057) to $10,804,476 at December 31. In the 2012 Budget, $1,446,611 is being designated from the estimated actual 2011 ending fund balance to create a balanced 2012 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 fund balance policy calculation. | ||||
| GENERAL FUND - REVENUE SUMMARY | ||||
|---|---|---|---|---|
|
2010
ACTUAL |
2011
BUDGET |
2011
ESTIMATED ACTUAL |
2012
BUDGET |
|
| TAXES: | ||||
| REAL ESTATE - CURRENT YEAR |
$27,312,658
|
$30,180,000
|
$30,154,000
|
$30,105,000
|
| - PRIOR YEAR |
635,076
|
566,000
|
624,000
|
622,000
|
| - INTERIM |
52,060
|
79,000
|
55,000
|
55,000
|
| ACT 511 - REAL ESTATE TRANSFER |
2,549,347
|
2,404,000
|
2,350,000
|
2,475,000
|
| - EMST/LOCAL SERVICES TAX |
1,759,114
|
1,550,000
|
1,750,000
|
1,650,000
|
| - BUSINESS & MERCANTILE |
6,867,540
|
7,346,000
|
7,545,000
|
7,768,000
|
|
TOTAL TAXES
|
39,175,795
|
42,125,000
|
42,478,000
|
42,675,000
|
| LICENSES & PERMITS: | ||||
| BEVERAGE |
18,400
|
19,000
|
20,000
|
20,000
|
| BUILDING & ELECTRICAL |
2,287,109
|
1,482,000
|
1,490,000
|
1,639,000
|
| BUSINESS PRIVILEGE & MERCANTILE |
144,974
|
130,000
|
126,000
|
126,000
|
| PLUMBING |
346,781
|
202,000
|
200,000
|
215,000
|
| STREETS |
162,261
|
154,000
|
175,000
|
165,000
|
| HEALTH |
69,713
|
69,000
|
68,500
|
70,000
|
| RECREATION |
506,657
|
523,000
|
538,000
|
538,000
|
| FRANCHISE FEES |
1,138,890
|
1,180,000
|
1,250,000
|
1,313,000
|
| ALARM REGISTRATION FEES |
416,904
|
421,000
|
419,000
|
419,000
|
| OTHER LICENSES & PERMITS |
24,610
|
25,000
|
26,000
|
26,000
|
|
TOTAL LICENSES & PERMITS
|
5,116,299
|
4,205,000
|
4,312,500
|
4,531,000
|
| FINES & FORFEITS: | ||||
| ORDINANCE VIOLATIONS |
659,397
|
750,000
|
700,000
|
725,000
|
| DISTRICT JUSTICE |
410,452
|
425,000
|
415,000
|
415,000
|
|
TOTAL FINES & FORFEITS
|
1,069,849
|
1,175,000
|
1,115,000
|
1,140,000
|
| DEPARTMENTAL EARNINGS: | ||||
| PARKING |
1,182,020
|
1,221,000
|
1,190,000
|
1,190,000
|
| POLICE SERVICES |
340,272
|
336,000
|
325,000
|
338,000
|
| RECREATION |
213,144
|
256,000
|
272,000
|
280,000
|
| ZONING & SUBDIVISION |
307,342
|
400,000
|
365,000
|
390,000
|
| HIGHWAY SERVICES |
94,692
|
52,000
|
54,000
|
52,000
|
| FIRE SERVICES |
4,525
|
4,000
|
4,000
|
4,000
|
|
TOTAL DEPARTMENTAL EARNINGS
|
2,141,995
|
2,269,000
|
2,210,000
|
2,254,000
|
| OTHER REVENUE: | ||||
| PAYMENT IN LIEU OF TAXES |
56,741
|
57,000
|
54,792
|
55,000
|
| INVESTMENT INCOME |
218,485
|
284,000
|
140,000
|
140,000
|
| INDIRECT COSTS - SOLID WASTE |
723,000
|
752,000
|
752,000
|
782,080
|
| INDIRECT COSTS - SANITARY SEWER |
538,000
|
560,000
|
560,000
|
582,400
|
| REIMBURSED EXPENSES |
702,599
|
313,000
|
220,000
|
226,600
|
| FEDERAL BAB'S SUBSIDY |
-
|
-
|
241,000
|
210,850
|
| HIGHWAY AID |
1,168,186
|
1,174,000
|
1,200,000
|
1,244,600
|
| GRANTS AND GIFTS - POLICE |
118,042
|
79,000
|
79,000
|
79,000
|
| OTHER |
196,130
|
391,000
|
271,000
|
281,840
|
|
TOTAL OTHER REVENUE
|
3,721,183
|
3,610,000
|
3,517,792
|
3,602,370
|
| TOTAL REVENUE |
$51,225,121
|
$53,384,000
|
$53,633,292
|
$54,202,370
|
| GENERAL FUND - SOURCES OF REVENUE | ||||
|---|---|---|---|---|
|
2010
ACTUAL |
2011
BUDGET |
2011
ESTIMATED ACTUAL |
2012
BUDGET |
|
| REAL ESTATE TAXES |
$30,549,141
|
$33,229,000
|
$33,183,000
|
$33,257,000
|
| OTHER TAXES |
8,626,654
|
8,896,000
|
9,295,000
|
9,418,000
|
| LICENSES & PERMITS |
5,116,299
|
4,205,000
|
4,312,500
|
4,531,000
|
| FINES & FORFEITS |
1,069,849
|
1,175,000
|
1,115,000
|
1,140,000
|
| DEPARTMENTAL EARNINGS |
2,141,995
|
2,269,000
|
2,210,000
|
2,254,000
|
| OTHER REVENUE |
3,721,183
|
3,610,000
|
3,517,792
|
3,602,370
|
| TOTAL: |
$51,225,121
|
$53,384,000
|
$53,633,292
|
$54,202,370
|
| GENERAL FUND - USE OF FUNDS | ||||
|---|---|---|---|---|
|
2010
ACTUAL |
2011
BUDGET |
2011
ESTIMATED ACTUAL |
2012
BUDGET |
|
| GENERAL GOVERNMENT |
$6,131,493
|
$6,318,066
|
$6,239,681
|
$6,500,097
|
| PUBLIC SAFETY |
21,049,590
|
22,447,953
|
21,770,931
|
22,629,510
|
| BUILDING & PLANNING |
3,126,697
|
3,101,048
|
3,196,254
|
3,148,058
|
| PUBLIC WORKS |
7,108,737
|
7,367,043
|
7,391,163
|
7,091,742
|
| LIBRARIES & RECREATION |
6,544,425
|
7,069,991
|
6,675,514
|
6,954,769
|
| DEBT SERVICE* |
7,634,926
|
8,441,674
|
8,572,330
|
9,324,805
|
| TOTAL: |
$51,595,868
|
$54,745,775
|
$53,845,873
|
$55,648,981
|
| * Includes $210,850, of debt interest expense directly offset by a Federal subsidy (BAB's) budgeted as a revenue source in the General Fund. | ||||