2019 Budget Background • On General Fund/Township side, we are OK with revenues balancing expenses into the foreseeable future, assuming a limited General Fund Transfer increase to Police. • Police Budget is growing the equivalent of 3.02 mills from 2018- 2020 while revenues are growing 1.14 mills for the same time period. (1 mill = $160,000 in RT). • Police Fund Balance will be $358K at end of 2018, but without any changes will be fully depleted by 2021 (3 years). • To keep the Police Budget positive through 2026, RT will require the equivalent of 3 mills in new revenue or the equivalent reduction of expenses starting in 2020.
Significant Observations 2018 • EIT is on track to be 3% up for 2018 (through September it was 0%). • In 2018 RE Transfer Taxes were budgeted for $375K but are on track for $651K, a $250K+ windfall for 2018. • 2018 Engineering Costs exceeded normal expenditures by >$150K (1 mill) primarily driven by MS4 Permit, Closed Loop System Engineering, Mine Road Bridge, and Rich Hill Road Studies. • Mine Road Bridge actual costs will exceed projections by ~$75K due to unexpected conditions (very large rocks (20ft. Diameter), heavy rains, and engineering costs. • In 2017 we projected 2018 ending GF Fund Balance at $1.850MM. 2018 Actual will be at $2.495MM.
2018 Personnel Changes • Replace Road Crew “Equipment Operator 1” position with junior Road Crew “Laborer/Driver” employee. • New Receptionist hired because of transition of previous receptionist to PD. • PD had one resignation and a one transfer to SRO, requiring the hiring of 2 new officers. • No change in Personnel projected for 2019
Richland Paul Stepanoff, PE Township Manager Township Tracey Organization Virnelson Office Administrator Cheryl Chart Foresman Receptionist Ray Rich Chuck Botson James Benner Brittingham Constable Treasurer Road Master Zoning Officer Inspection/Code Michael Scott Ambron Erich Sprague Tyler Pfaff Schmell Road Crew/Maint. Equipment Operator Assistant Road Master Road Crew/Inspector
RT Proposed 2019 Employee Compensation Note: 1. Constable: additional compensation 30% of Haycock Inspections and 25% of Fire Inspections 2. Virnelson: Converted to Exempt with corresponding increase in hourly pay to compensate for OT loss 3. Benner: $4,161.07 monetarization of accumulated compensatory leave 4. Sprague: Promoted from Equipment Operator 1 to Equipment Operator 1/Mechanic
Projected Fund Balances 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - 2019 2020 2021 2022 2023
Fund Balance Detail by Year Assuming no GF or Fire Fund Transfers to Police 2,500,000 2,000,000 1,500,000 2019 1,000,000 2020 500,000 2021 2022 0 General Restroom Police Fire Fund Traffic Volunteer 2023 -500,000 Fund loan Fund Fund Boards -1,000,000 -1,500,000 Note: 1. NO GF or Fire Fund Transfers to Police
Fund Balance Detail by Year per 2018 Budget 2,500,000 2,000,000 1,500,000 2019 2020 1,000,000 2021 500,000 2022 0 2023 General Restroom Police Fire Fund Traffic Volunteer -500,000 Fund loan Fund Fund Boards -1,000,000 Note: 1. GF Transfer to Police increases $50K/Year 2. Fire Fund Transfer 60% of Franchise Fee to Police
Projected Fund Balances 2019 2020 2021 2022 2023 General Fund 2,124,265 2,074,974 2,065,251 1,954,072 1,832,420 Restroom loan 240,000 210,000 180,000 150,000 120,000 Police Fund 240,270 153,348 14,474 (205,690) (461,552) Fire Fund 513,283 466,082 421,915 380,832 349,317 Traffic Fund 215,144 219,444 223,744 228,044 228,044 Volunteer Boards 1,280 1,280 1,280 1,280 1,280 TOTAL 3,334,242 3,125,128 2,906,664 2,508,538 2,069,509
Projected Fund Balance • By the end of 2018 we expect that the combined fund balances will exceed $4.00 MM. The combined fund balance at the end of 2019 is projected at $3.70 MM, or about $200K less than projected last year. The difference is primarily associated with a depletion of the Police Fund Balance. • From 2019 through 2023 the fund balances are projected to drop from $3.3MM to $2.1MM primarily due to escalating P.D. costs • Long Term Budget Concern: Police and Fire Budgets. – RT will require the equivalent of 3 mils (0.5 mil for Fire and 2.5 mil for Police) in revenue increases and/or expenditure decreases by 2020 to continue operations through 2026.
5 Year Budgeted GF P&L 2014 2015 2016 2017 2018 Proj. 2019 2020 2021 2022 2023 Total Revenues $2,752,347 $2,616,773 $2,884,607 $2,959,600 $3,128,528 $2,745,307 $2,809,888 $2,869,660 $2,931,225 $2,994,637 Total Operating Expenses $2,079,982 $2,105,991 $2,303,361 $2,025,951 $2,236,207 $2,532,509 $2,267,868 $2,343,957 $2,402,658 $2,478,951 Operating Surplus/(De ficit) $ 672,365 $510,782 $581,246 $933,649 $892,321 $212,798 $542,020 $525,703 $528,567 $515,6186 General transfers to Police $ 0 $200,000 $235,000 $210,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Non Operating Expenses (Income) $ 285,162 ($30,163) $633,418 $520,146 $1,109,892 $284,093 $241,311 $135,426 $189,746 $137,338 Net Fund Surplus/(De ficit) $387,203 $340,945 ($287,172) $203,503 ($467,571) ($371,295) ($49,291) ($ 9,723) ($111,179) ($121,652)
2019 Budget vs. 2015 Projection of 2019 Budget 2019 Budget 2015 Budget for 2019 Difference GF Revenues $2.745MM $2.714MM $31K GF Wages/Benefits $1.249MM $1.449MM $200K Roads and Public Works $620K $131K $489K Professional Fees $250K $168K $82K Operating Expenses $1.221MM $0.613MM $608K GF Fund Balance $2.124MM $3.339MM $1.215MM Police Revenues $2.387MM $2.114MM $273K Police Salary/Benefits $2.357MM $2.161MM $196K GF Transfer to Police $300K $400K $100K Police Fund Balance $240K $132K $108K
2019 Recommendations • For 2019 we propose: – Keep the tax rate steady at 11.30 mills for 2019, • 10.55 mills going to the Police Fund • Remaining 0.75 mills going to the Fire Fund for contributions to the fire companies serving the township. • Consideration of 3 mills of revenue or expenditure decreases starting in 2020, (net 0.5 mills Fire and 2.5 mills Police).
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