Proposed 2008 budget general comments

PROPOSED 2008 BUDGET

GENERAL COMMENTS

• Proposed $25 Million + Spending Plan

• Real Estate Tax Rate of 2.312 mills (same as 2007)

• Township’s Assessed Value

• * 2008 = $913,282,124

• *About $15,000,000 increase over 2007 value

• *Additional $35,000 in revenues without a tax rate increase

GENERAL FUND

• REVENUES

• Real Estate Tax Rate of 1.372 mills (for general purposes and debt purposes).

• Additional $20,000 of revenues due to the increased Assessed Value of the Township.

• Decreased the Local Services Tax (formerly EMS Tax) by $175,000 because of the new collection requirements imposed by the State.

• Building permit fees budgeted at $200,000 (offset by 3rd party inspection services of $100,000)

• Cash Carry over balance of about $900,000. (one time revenue allocation)

STREET LIGHTING FUND

• Continue to allocate .03 mills ($26,000).

• Upgrade street lights from $29,000 Fund Balance.

FIRE PROTECTION FUND

• Relief Fund allocation from the State - $86,000.00

• Township Contributions to the Fire Company include:

• $30,000. for vehicle insurance

• $42,000. for vehicle payments

• $59,000. for Township Contribution

• ($9,484. for worker’s compensation insurance paid from the General Fund)

• Fire Fighter/Assistant Fire Marshal employee - $43,384. for salary and $10,000. for benefits ($52,000. revenues generated per year for this position)

• (the extra employee cost, $5,000 custodial cleaning costs and the $15,000 per year cost for the deferred benefit plan contribution are all being funded from the Fund Balance that accumulated from the $52,000 allocation from prior years)

Parks and Recreation Operating Fund

• Increased costs for salaries and misc. operating expenses (fuel, supplies, printing, advertising, utilities), diminished cash carry over balance and only revenue source to pay these expenses are Real Estate Tax revenues creates challenges each year. (Program fees generally cover those program costs)

• Eliminate the contribution to the ENGAA and ENLL. Recommend funding from IDA

• Continue to utilize private landscaping company to mow detention basins which the Township is responsible for.

• Parks Fund and General Fund will continue to fund for 1 part-time employee from April-December and 2 part-time employees from June-August. Part-time employees will be utilized in both the Public Works and Parks Maintenance Departments.

Parks and Recreation Capital Fund

• Significant Capital Expenditures

• Greenway Trail Development - $26,300

• Liberty Bell Trail Master Plan - $50,000

• Liberty Bell Trail Development - $200,000

• DeSage Park Trail Development - $30,000

• Open Space Land Purchases - $220,000 (in addition to County Grant of $1,100,000)

• Paving of Mack Watson Park parking lot and Cemetery parking areas - $10,000

SEWER REVENUE FUND

• Sewer Rate analysis and increase implemented in 2007. Sewer rates are now based solely on water consumption. 2008 projections are conservatively estimated until collections can be monitored for at least a year or more to obtain a trend on water consumption.

• East Norriton Township’s 2008 treatment charges to the Joint Sewer Authority will increase by about $21,000.

• 2008 Capital Contribution to the JSA ($365,000) will be funded from capital money held in reserve at the JSA that was generated by development connection fees.

• Sewer Revenue Fund is also funding $451,685 in 2008 for debt service principle and interest payments relating to the 2004 Bond refinancing, the 2002 Bond refinancing and the 2003 DVRFA loan.

SANITARY SEWER OUTFALL FUND

• Major Fiscal Problems – The approximate $1,000,000 fund balance has been spent on expenses incurred to meet the requirements of the Consent Order and Agreement

• Significant Expenditures

• DEP Fines - $25,000

• Marion Avenue Pump Station Upgrade - $5,000

• Norris City Pump Station Air Filter System - $7,000

• I&I Inspections - $50,000

• Sewer Consulting Work - $60,000

• Stony Creek Main Line Repair - $50,000

• Back-up Generator for Sandra Lane Pump Station - $40,000

CAPITAL RESERVE FUND

• P.W. Purchase One Ton dump Truck - $65,000

• P.W. Overhead Doors - $15,000

• P.W. truck Lease (2004) - $11,000.00

• Parks Director Vehicle - $25,000

• Parks Mower Lease (2004) - $8,236.00

• Parks Utility Truck with Plow - $25,000

• Police Vehicles (4) - $120,000

• Police Motorcycle purchases - $28,000

• Reserve for Police Radios - $45,000

• Police Computers - $9,000

• NPDES Storm Water Permit Program - $5,000.00

• Code Enforcement Dept Carpeting - $6,000

HIGHWAY AID FUND

• Road Improvement Program - $152,240

• Street Sweeper Lease (7 year) - $27,000

• Thermoplastic Line Painting - $25,000

• Purchase of Salt - $32,000

• Traffic Signal Electric and Repairs - $29,000.00

• Miscellaneous Road & Street Sign Repairs - $9,000.00

2008 PROPOSED REAL ESTATE TAX ALLOCATION – 2.312 mills

• GENERAL PURPOSE 1.102 MILLS

• DEBT PURPOSES .270 MILLS

• RECREATION .326 MILLS

• STREET LIGHTING .030 MILLS

• FIRE PROTECTION .218 MILLS

• CAPITAL RESERVE .366 MILLS

2008 REAL ESTATE TAX COMPARISON

• Norristown Area School District 27.361 mills (2007/2008 rate)

• Montgomery County 2.695 mills (proposed)

• East Norriton Township 2.312 mills

2008 Real Estate Tax Payments * School based on 2007/2008 Tax year * County based on proposed rate to be considered 12/20/07

SUMMARY OF ALL FUNDS $25,177,724 Budget

GENERAL FUND REVENUES $6,861,843

• Real Estate Taxes $1,213,000

• Act 511 Taxes $3,490,000

• Permits and Fines $415,400

• Interest and Grants $362,000

• Misc. Revenue $89,500

• Interfund Transfers $306,000

• Cash Carry Over $985,943

GENERAL FUND EXPENSES $6,861,843

• Legislative & Finance $817,837 (11.9%)

• Police/Public Safety $2,687,701 (39.2%)

• Planning and Zoning $431,706 (6.3%)

• Public Works $582,309 (8.5%)

• Debt Service $254,521 (3.6%)

• Insurance $87,000 (1.3%)

• Employee Benefits $1,678,000 (24.5%)

• Misc. Expenditures $322,769 (4.7%)

CLOSING COMMENTS

• Staffing

• Five Year Capital Plan

• Storm Drainage Issues

• Real Estate Tax Collections to Date - 98%

THANK YOU

• Department Directors

• William Scurry and the Finance Department

• All the hardworking and loyal employees

• East Norriton Township Citizens