2020 BUDGET The North Lebanon Township Municipal Authority was - PDF document

2020 BUDGET The North Lebanon Township Municipal Authority was created in 1982 in accordance with the Municipal Authorities Act 53, PA.C.S.Ch.56 of 1945, as amended and supplemented. The Board of Supervisors set the term of existence at 50 years. The Supervisors tasked the North Lebanon Township Municipal Authority (NLTMA) to construct all new sewer lines in the Township including financing, which must be pre-approved by the Supervisors. The first project of the NLTMA was the project originally known as the North 7 th Street Sewer Project. Since that time, the Authority has expanded public sewer into various areas of the township, as necessary and is now responsible for just over 60 miles of lines and 8 pump stations. The NLTMA consists of five township residents each serving a five-year term. Their terms are staggered, so only one member is up for re-appointment each year. The appointments are made by the Board of Supervisors. Sewer Operating Fund: The day to day operations of the NLTMA is done through the Sewer Operating Fund. There are two full-time employees that perform the maintenance of approximately 60 miles of conveyance lines and 8 pump stations. They perform duties such as line flushing, 24/7 pump station monitoring, PA One Call line locations, manhole repairs, lateral inspections for new homes/businesses, maintain and mow sewer R-O- W’s, maintain the sewer vehicles and the equipment used to maintain the sewer lines, as well as attend required training classes to keep their Wastewater System license current. There is one sewer billing clerk responsible for the monthly and quarterly billing and all aspects associated with collection, issuance of sewer permits, settlements on sold properties, and preparation of minutes from NLTMA meetings. In 2016, a new billing system was installed after much research. As requested by numerous residents, the new system has a “customer portal” so residents will have access to their account information 24/7. They are able to pay online with their credit card or checking account and protect their privacy with Tier 4 security. We also have the ability to email their bills if they choose this option, which will help to save on postage costs. In addition, there is an Assistant Township Manager that prepares the monthly agenda for the NLTMA and works closely with the Authority Engineer and Authority Solicitor in carrying out all NLTMA directives. The Assistant Township Manager is also responsible for purchasing capacity at the City of Lebanon Authority Wastewater Plant, overseeing the sewer billing clerk, as well as p reparing developer’s agreements, tracking and checking for completeness of all planning modules associated with new development, reviewing and issuing Strong Waste Permits, and attends all Municipal Authority meetings. Preparation of the Municipal Authority budget is another important role of the Assistant Township Manager. PAGE 1

At the September 10, 2015 Authority meeting, the Board took action to refinance the sewer bonds using a traditional bank loan through Fulton Bank. The interest rate on the loan is 2.33% for the first 7 years then switches to a variable rate at 65% of Prime with a cap of 4.50% for the remainder of the loan. The term of the loan is 15 years, which reduces the length of the loan by 5 years from the previous bond issue. The loan can be pre-paid at any time and is scheduled to be paid off in 2029, however the last couple of years the Authority has made additional payments on the principal which has reduced the length of the loan by approximately another three years. The Board reviews rates on a yearly basis and will make adjustments as necessary to satisfy the loan payment. The 2020 sewer user rate will remain the same at $78/Quarter per EDU. A copy of our current amortization schedule with Fulton Bank follows the Revenue and Expenses of the Sewer Operating Fund. As approved at a joint meeting between the NLTMA and Board of Supervisors, an additional amount of $100,000/year for the next 10 years (2017-2026) will be applied on the Fulton Bank loan. We continue to make additional payments on the principal with the monies collected from the tapping fees. It is the goal of both Boards to reduce this debt, as much as possible over the next ten years. For 2020, there are a few major purchases that will come out of Capital Improvement. They include a generator for the Rockwood Pump Station, a video push camera with the ability to view smaller sewer laterals, and a new computer for the Sewer Billing Clerk. A few items that will be purchased jointly between the Authority and the Township are an aluminum trench box, a new office copier, an Office Policies Procedure Manual as suggested by our appointed auditors (CPA) and IT equipment for the Board room. PAGE 2

REVENUES: SEWER OPERATING FUND REVENUES ACCT # DESCRIPTION 2020 BUDGET 2019 BUDGET 2018 ACTUAL 2017 ACTUAL Cash On Hand - Checking/Prime 2,175,000 1,963,500 1,871,216 1,927,046 Sewer Revenue Fund Closed 2016 0 0 0 0 341.000 Interest Earnings 50,000 30,000 34,443 14,515 361.320 Plan Review 5,000 2,500 375 2,875 361.365 Inspect/Admin/Sewer Permit 6,000 5,000 6,900 18,044 361.370 Inspect Developments 0 0 200 1,038 361.450 PA One Call Refund 175 0 170 0 361.500 Sewer Saddles & Signage 850 850 850 0 361.600 Sewage Mgmt Fees (every 3 yrs, due 2020) 21,000 0 210 20,990 361.950 Emergency Repairs/Others 0 0 0 488 364.100 Sewer Treatment 2,900,000 2,900,000 2,885,317 2,789,539 364.453 W Lebanon Tranport Fee 1,855 1,855 1,855 1,855 364.900 Strong Waste Permit/Fees (3 yr renewal - 2020 400 400 0 100 380.000 Misc Revenue 25 25 0 1 380.110 Conduit Fee (Moravian Manor) 5,000 5,000 15,000 5,000 391.100 Sale of Fixed Assets 25 25 0 651 392.093 Transfer from Capital Reserve ($100k add loan prin 100,000 100,000 200,000 100,000 392.093 Transfer from Capital Reserve 138,000 90,000 0 (Actual Tapping/Spec. Purp. Fees-addt'l loan) 395.000 Prior Year Refund - Bencon rebate 4,692 3,600 22,010 25,454 Total Projected Revenue 3,233,022 3,139,255 3,167,330 2,980,550 PAGE 3

EXPENSES: SEWER OPERATING FUND EXPENSES ACCT # DESCRIPTION 2020 BUDGET 2019 BUDGET 2018 ACTUAL 2017 ACTUAL 429.110 Authority Bd Wages (1-Old $25, 4-New $49) 2,940 2,652 2,119 1,681 429.120 Wastewater 408,830 330,948 324,555 411,055 429.210 Office, Dept, (SMP Supplies/Postage-2020) 7,000 7,000 3,828 5,874 429.231 Gasoline/Oil 4,000 4,000 3,587 2,888 429.238 Uniforms 2,000 2,000 1,508 2,464 429.245 Vehicle Maintenance 6,500 6,500 3,976 3,237 429.250 Rep & Maint & Sludge Disposal 100,000 100,000 241,851 48,674 Manhole Spraying, Trench Restorations Tools, Small Equip, DynaTech-generator @ Koch.PS Decommission Orange Lane PS 429.300 Banking/CD Fees/Online Fee 4,500 3,500 4,561 1,410 429.310 Plan Review 500 2,000 99 99 429.311 Auditor Fees 6,000 7,000 6,427 6,128 429.312 Engineer Mgmt Consultant/Retainer 15,000 10,000 12,164 14,948 429.314 Legal Fees/Retainer 15,000 18,000 24,919 20,123 429.320 Communications 3,500 3,650 3,464 3,666 429.340 Advertising/Printing 2,000 2,000 1,857 1,873 429.350 Treasurer/Notary Bond (2018 for 2019; every 3 y 0 250 250 250 429.351 Commercial/E&O Insurance 10,182 9,650 14,241 14,803 429.354 Workers Comp Insurance 4,500 4,666 4,980 6,683 429.361 Pump Station Utilities (Elec, gas, phone, dialers, 24,000 19,000 17,787 16,197 429.364 Sewer Treatment 1,300,000 1,300,000 1,258,909 1,187,852 429.367 Water Termination Fee 2,000 2,000 1,800 1,500 429.371 Office Equipment/Computers (MuniBilling) 13,000 13,000 12,978 19,212 429.384 Equipment Rental 100 200 0 0 429.420 Memberships/Dues/Subscriptions (Assoc-$230 2,500 1,000 2,751 3,561 429.450 PA One Call/Breakthrough Concepts 2,000 1,800 1,563 626 429.451 Contracted Svcs - Paychex 1,250 1,300 1,177 1,289 429.452 S Lebanon Transport Fee 1,565 1,560 1,561 1,556 429.460 Meetings/Conferences/Training 2,000 2,000 1,210 1,824 429.470 Misc Expenses 0 0 313 162 429.720 Capital Improvement - 89,060 0 42,960 11,409 $60,934 Generator - Rockwood PS + ext. warranty + concrete pad/fence $10,168 Push Camera (laterals) $ 858 Dell computer & monitor - Sewer Billing Clerk $ 6,300 Aluminum trench box (50/50 w/twp=12,600) $ 2,800 Copier (50/50 w/twp=5,600) $ 7,500 Office Polices Proc. Manual (50/50 w/twp=15,000) $ 500 IT for Board Rm (split w/twp=10,000) 429.850 Trust Expenses 0 0 0 0 470.474 Bond Issue Payment 0 0 0 0 473.100 Fulton Bank Loan - Principal (2029) 660,000 643,000 629,000 614,000 473.110 Fulton Bank Loan - Addt'l Principal 100,000 100,000 200,000 386,894 10 Years @ $100k/yr (2017-2026) 138,000 90,000 tapping fees from prior yr + YTD 473.200 Fulton Bank Loan - Interest 152,458 150,300 174,128 187,187 473.300 ACNB Loan - Interest 0 0 0 57,086 491.001 Refund of Prior Yr Revenue 0 0 169 492.093 Transfer to Capital Reserve 0 0 0 0 0 0 0 0 Total Projected Expenses 3,080,385 2,838,976 3,000,523 3,036,380 Current Year Total Projected Revenue 3,233,022 3,139,255 3,167,330 2,980,550 BUDGET (Remaining Funds) 152,637 300,279 166,807 -55,830 Total Funds Available $5,408,022 $5,102,755 $5,038,546 $4,907,596 Total Expenditures $3,080,385 $2,838,976 $3,000,523 $3,036,380 Projected Year End Balance $2,327,637 $2,263,779 $2,038,023 $1,871,216 PAGE 4