City of Lock Haven Early Intervention Program Demographic and - PowerPoint PPT Presentation

City of Lock Haven Early Intervention Program Demographic and Financial Presentation May 20, 2019

Pennsylvania Economy League Pennsylvania’s leading independent, nonprofit, public policy research and development organization for over 80 years PEL Central Division provides technical assistance to municipalities of all sizes and types throughout the state PEL works to foster good government that provides the most efficient core public services that meet local resident needs at the lowest cost We believe healthy local governments assist in creating a sustainable Pennsylvania economy that can keep and attract residents and businesses 2

Early Intervention Program Scope of Work Reviewed Evaluated City operations of Analyzed City Projected labor, water, Compiled City departments revenues wastewater, financial recommendations history and and economic (Administration, for all areas expenditures development demographics Police, Public and Airport Works) 3

Demographics Population 1970 to 2010 14,000 12,000 11,427 9,149 10,000 9,772 9,617 9,230 8,000 6,000 4,000 2,000 - 1970 1980 1990 2000 2010 4

Demographics Population 1990 to 2016 1990 to 1999 2000 to 2009 2010 to 2016 1990 to 2016 Births 1,068 1,076 710 2,854 Deaths 1,326 1,272 739 3,337 Natural Pop. Change -258 -196 -29 -483 Total Population (start) 9,230 9,149 9,772 9,230 Total Population (end) 9,149 9,772 9,725 9,725 Total Population Change -81 623 -47 495 Less Natural Change -258 -196 -29 -483 Net Migration 177 819 -18 978 5

Demographics Population by Age 1990 to 2010 8,000 7,104 7,000 6,206 6,003 6,000 5,000 4,000 3,000 1,635 1,592 2,000 1,530 1,531 1,413 1,137 1,000 - 1990 2000 2010 Under 18 18-64 65 and Over 6

Demographics College Age Population Population in Non-Institutional Group Quarters 2000 2010 # % # % Lock Haven 1,573 17.2 2,013 20.6 Clinton County 1,626 4.3 2,027 5.2 Median Age 2000 2010 # # Lock Haven 22.7 25.0 Clinton County 37.8 38.5 7

Demographics Housing Units 1990 to 2010 Rental Units: 2,500 61% of total 2,000 Owner-Occupied: 1,500 31.5% of total 1,000 Vacant: 7.5% of total 500 0 1990 2000 2010 Change 1990-2010 Owner-Occupied -239 units; Renter: +463 units; Vacant: +98 units 8

Demographics Median Value Owner-Occupied Home $200,000 $160,000 $120,000 $80,000 $40,000 $0 1990 2000 2010 Lock Haven $43,600 $76,100 $89,700 Clinton County $46,300 $78,000 $98,400 Pennsylvania $69,700 $97,000 $159,300 9

Demographics Median Household Income $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 1990 2000 2010 Lock Haven $16,910 $20,731 $25,579 Clinton County $22,128 $31,064 $39,354 Pennsylvania $29,069 $40,106 $50,398 10

Demographics Findings Demographics are heavily influenced by Lock Haven University and create challenges for City • Large working age population is a positive but also includes college students; declines in under age 18 is negative sign for residential growth • Rentals increased to over half of housing units plus increase in vacancies • Value of owner-occupied homes gives better indication of resident population wealth but values below county and well below the state • Implications for blight considering increase in rentals/vacancies • Implications for property taxes in potential lower assessments as owner- occupied converts to rentals or vacancies • Implications for wage taxes as under 18 residential population declines and provides less of a feeder to working age residents; wage taxes of college students typically go to home municipality 11

Historical General Fund Revenues, Expenditures, Surplus/Deficit $7,250,000 $6,000,000 $4,750,000 $3,500,000 $2,250,000 $1,000,000 $(250,000) 2013 2014 2015 2016 2017 Revenues $5,824,476 $4,577,736 $4,486,278 $4,829,496 $4,571,793 Expenditures $5,466,295 $4,437,189 $4,431,587 $4,573,672 $4,649,441 Surplus/(Deficit) $358,181 $140,547 $54,691 $255,824 ($77,649) Adjusted Surplus/(Deficit) $1,970,944 $676,931 $361,483 $451,846 $418,162 Adjustments remove capital revenues/expenditures 12

Assessed vs. Market Value $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Assessed Value Market Value 13

Historical General Fund Tax Revenues $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2013 2014 2015 2016 2017 Real Estate Taxes $2,017,728 $2,192,981 $2,371,476 $2,457,873 $2,421,059 Earned Income Tax $481,733 $491,754 $511,430 $528,518 $479,597 LST $167,422 $160,886 $166,410 $162,070 $172,949 Real Estate Transfer $44,007 $73,529 $42,305 $63,264 $73,408 Business Privilege Taxes $165,289 $142,406 $144,800 $170,525 $130,058 Note: Does not include mechanical device tax 14

Historical General Fund 2017 Taxes Business Real Estate Privilege Taxes Transfer LST 4% 2% 5% Earned Income Tax 15% Real Estate Taxes 74% Note: Does not include mechanical device tax 15

Historic Expenditures Personnel vs. Non-Personnel $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2013 2014 2015 2016 2017 Personnel $2,591,967 $2,826,423 $3,031,362 $3,117,184 $3,261,255 Non-Personnel 859,969 813,139 824,148 878,293 726,513 Capital Projects 244,988 343,692 158,990 80,102 184,684 Capital Purchases 1,367,775 192,692 147,802 115,921 311,127 Debt Service 379,036 260,250 264,685 223,521 176,342 Note: Does not include transfers 16

Historic Expenditures 2017 Personnel Expenditures Capital Debt Service Purchases 4% 7% Capital Projects 4% Non-Personnel 15% Personnel 70% Note: Does not include transfers 17

Historic Expenditures Adjusted Health Insurance 2013 2014 2015 2016 2017 Health Insurance Total $592,517 $763,134 $782,696 $863,255 $847,883 PMIHC Reimbursement -227,254 -270,918 -192,565 -309,008 -101,727 Adjusted Health Insurance $365,263 $492,216 $590,131 $554,247 $746,156 18

Historical General Fund 2017 Departmental Expenditures Public Works Parks/Recreation Emergency $567,397 $109,019 Management 14% 3% $54,653 General 1% Government $974,445 25% Planning/Zoning $96,044 2% Engineering $55,249 Code 1% Enforcement Fire $62,202 $363,841 2% 9% Police $1,704,917 43% 19

Historic Expenditures 2018 Estimated versus Budget 2018 Estimated Budget Revenues $5,741,745 $4,076,884 Expenditures 4,896,701 4,619,541 Surplus/(Deficit) $845,044 -$542,657 • Revenues almost $1.7 million higher than budgeted • Higher tax revenue = additional $411,431 • Other revenue sources: Loan proceeds, PHMIC reimbursement, blight account transfer, recycling grant • Expenditures were $427,430 greater than budgeted; mostly due to capital spending 20

Historic Expenditures Airport Fund 2013 2014 2015 2016 2017 2018 2019 Actual Actual Actual Actual Actual Actual Budget Revenues $710,861 $298,295 $282,036 $232,544 $280,943 $265,760 $261,060 Expense 516,639 513,104 332,939 292,452 286,393 205,477 307,275 Surplus/Deficit -$46,215 $194,222 -$214,809 -$50,903 -$59,908 -$5,450 $60,283 • Airport personnel costs are moved to the General Fund in 2019 • 2019 projected Airport surplus is transferred to the General Fund 21

Historic Expenditures Water and Wastewater Funds Water Fund 2013 2014 2015 2016 2017 2018 2019 Actual Actual Actual Actual Actual Actual Budget Revenues $1,715,918 $1,718,627 $1,759,189 $1,874,396 $2,147,614 $1,491,647 $1,538,238 Expenditures 1,363,521 1,765,835 1,757,744 1,436,275 1,434,818 1,630,528 1,717,466 Surplus/(Deficit) $352,397 -$47,209 $1,445 $438,122 $712,796 -$138,881 -$179,228 Wastewater Fund (Operating) 2013 2014 2015 2016 2017 2018 2019 Actual Actual Actual Actual Actual Budget Budget Net Revenue 2,350,898 2,376,235 2,267,839 2,316,834 3,262,495 3,405,425 3,228,934 Net Expenditures 1,622,410 1,824,821 2,670,901 2,735,923 2,857,454 3,204,245 3,284,946 Net Surplus/(Deficit) $728,487 $551,413 -$403,062 -$419,089 $405,041 $201,180 -$56,011 22

Historical Expenditures Findings The General Fund performed well financially • Surpluses throughout; 2018 budgeted as deficit but resulted in surplus • Tax revenue growth from four property tax increases • Considerable reimbursements for health care offset costs • Significant amount of capital spending done with General Fund revenues Expenditure Patterns • Two-thirds of costs related to personnel • Largest expenditures related to Police Department • Most of City’s debt obligations are related to enterprise activities 23