Township of Lower Merion
Montgomery County, Pennsylvania

2016 Proposed Budget
Citizens’ Summary

November 6, 2015

Elizabeth S. Rogan
President, Board of Commissioners

Commissioner C. Brian McGuire
Chair, Finance Committee

Ernie B. McNeely
Township Manager

Eric M. Traub
Chief Financial Officer

2016 PROPOSED BUDGET HIGHLIGHTS

Key Dates

Distribution of Budget to the Board, Libraries, Staff and the Media:

• November 6, 2015

Public Hearings:

• November 18
  December 2

Budget Adoption:

• December 16

Personnel

Net Full-Time Equivalent (FTE) Positions will decrease 1.8 FTE's from the 2015 Budget level of 476.5 to 474.8 in 2016.  Refer to the Personnel Section of Budget Message for more details.

Taxes and Fees

• The Real Estate Tax millage rate will remain unchanged for 2016 (fifth consecutive year).

• The adopted 2015 Solid Waste Fees will remain unchanged in 2016 as follows: one mini can ($205), one container per week subscription ($292), plus $58 for each additional can and the Rear Yard Collection Fee for refuse and recycling placed more than 5 feet from the curb line ($210).

• The 2016 Budget indicates the possibility of a rate increase to the Sanitary Sewer Rental Fee and drawdown of fund balance may be needed to balance the budget and maintain a 10% fund balance reserve.  The Sanitary Sewer rental rate will be further reviewed before the official 2016 Sanitary Sewer rental rate is adopted by ordinance and billed in May 2016.

   

General Fund Budget Summary

2015 Estimated Actual:

• The 2015 Revenue is estimated at $59,900,030, an increase of $1,666,430 or 2.9% compared to the 2015 Budget.

• The 2015 Expenditures are estimated at $60,993,787, an increase of $572,858 or 0.9% compared to the 2015 Budget.

• The 2015 Estimated Actual expenditures exceed revenues (deficit) by $1,093,757.

2016 Proposed Budget:

• The 2015 ending fund balance (undesignated) is estimated at $18,536,141 or 30.4% of the 2015 Estimated Actual Expenditures.

• The 2016 Revenue is budgeted at $59,071,644 an increase of $838,044 or 1.4% compared to the 2015 Budget.

• The 2016 Expenditures are budgeted at $61,821,504, an increase of $1,400,572 or 2.3% compared to the 2015 Budget.

• The 2016 Budget expenditures exceed revenue by $2,749,860 requiring a planned budgeted drawdown of fund balance to balance operating revenue with expenditures.

• The 2016 Budget includes $1,200,000 of estimated negative appropriations (budgetary savings) in Non-Departmental (Department 70).

• The 2016 Budget ending fund balance (undesignated) is estimated at $15,786,281 or 25.5% of the 2016 Budget Expenditures.

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.