NORTH LEBANON TOWNSHIP 2020 PROPOSED BUDGET Prepared by: Cheri - PDF document

NORTH LEBANON TOWNSHIP 2020 PROPOSED BUDGET Prepared by: Cheri Grumbine Presented: 11/18/2019

North Lebanon Township Description of Various Funds The Preliminary Budget and Fiscal Plan (“the Plan”) is presented to the Board of Supervisors for review and action. The Board of Supervisors conducted four budget workshops that were advertised and opened to the public. This Plan is a result of the issues discussed and direction provided during those workshops. The majority of the Funds are restricted by the funding source(s) or the specific Resolution adopted establishing the Fund. General Fund – The General Fund is the all-purpose Fund of the Township. Real Estate taxes are authorized under Section 3205 of the Second Class Township Code. “ The Board of Supervisors may levy taxes upon all real property within the Township ” made taxable by the Tax Duplicate prepared by the Lebanon County Tax Assessment Office. It is the responsibility of the County to provide the assessment valuation of the properties within the Township. All real estate taxes, Act 511 taxes (Real Estate Transfer, EIT, LST), and other fees charged by the Township that are not Fund specific, go into the General Fund. The Real Estate Property Taxes and Act 511 Taxes combine for approximately 76% of the township revenue for the General Fund. Other large revenue sources are from the 5% cable TV franchise agreement, fines, host municipality benefit fee, state allocations, and the police service contract with West Lebanon Township. The majority of all township services are rendered through our General Fund. These services include, police, fire (contribution to 4 volunteer fire companies), ambulance (contribution proposed for the first time to FASP in 2020) EMA, administration, highway, building maintenance, park & recreation, and fleet maintenance. The Wastewater Department operates from a separate budget adopted by the North Lebanon Township Municipal Authority. No tax increase is being proposed for 2020. Recent history of the township millage rate is as follows: 2020 – 2.01 mills (1.59 General; .420 Fire Protection) 2019 – 2.01 mills (1.61 General; .400 Fire Protection) 2018 – 2.01 mills (No increase in General Fund taxes; New SW Fee) 2017 – 2.01 mills ( Added FT Police Officer; Additional allocation to Fire Companies ) 2016 – 1.71 mills (No Increase) 2015 – 1.71 mills The Township’s Assessment Value: 2020 - $846,912,601; parcel count 4818 2019 - $840,059,800; parcel count 4804 2018 - $830,203,000; parcel count 4774 2017 - $818,049,000; parcel count 4751 2016 - $809,967,800; parcel count 4719 2015 - $806,429,600; parcel count 4712 Page 2 of 16

The following table provides a comparison of taxes an average resident pays to the 3 separate entities based on the respective millage rates. The chart below is based on the average market value of a residential property in North Lebanon Township at $150,000. 2020 Assessment Value: $150,000: 2.0100 mills (Township Real Estate Taxes) - $ 302 (2020 rate, same as 2019 rate) 3.2925 mills (County Real Estate Taxes) - $ 494 (2019 rate) 15.4819 mills ( Cornwall-Lebanon School District Real Estate Taxes) - $ 2,322 (2019-2020 rate) Municipal Tax Breakdown Vs. County & School Taxes (Based on Avg Assessed Value of $150,000) $302 $494 2.0100 Mills - North Lebanon Township $2,322 3.2925 Mills- Lebanon County 15.4819 Mills - Cornwall Lebanon SD EIT COMPARISON 2015-2019 $1,293,101 $1,283,929 $1,230,094 $1,203,904 $1,198,145 2019 YTD Amt 2018 2017 2016 2015 Page 3 of 16

2020 VS 2019 TOWNSHIP GENERAL FUND REVENUES 2020 2019 2018 INCREASE Percent Acct # Department Budget Budget Budget AMOUNT Change 100 Cash/CD's on Hand $1,727,548 $1,267,288 $727,812 460,260 36.32% 301 Real Estate Taxes $1,696,225 $1,673,865 $1,639,440 22,360 1.34% 310 Act 511 Taxes $1,726,192 $1,631,692 $1,566,692 94,500 5.79% 321/322 License/Permits $206,012 $200,712 $210,562 5,300 2.64% 331 Fines $145,656 $95,775 $94,750 49,881 52.08% 341- 342 Interest/Rents/Royalties $76,434 $67,897 $46,103 8,537 12.57% 354- 357 State Grants/Entitlements $270,153 $244,800 $256,141 25,353 10.36% 358 Intergovernmental Services $81,000 $87,448 $86,660 -6,448 -7.37% 361 General Government $16,550 $3,050 $4,988 13,500 442.62% 362 Public Safety (Police) $23,100 $24,350 $20,700 -1,250 -5.13% 363 Highways & Streets $2,500 $2,000 $2,500 500 25.00% 364 Sanitation (Host Municipality Fee-GLRA) $183,028 $142,000 $125,000 41,028 28.89% 367 Recreation $13,300 $12,300 $9,700 1,000 8.13% 380/381 Misc & Sale of Property $100 $100 $100 0 0.00% 387 Donations/Contributions $5,000 $5,000 $5,000 0 0.00% 391 Disposition of Fixed Assets $2,000 $1,000 $750 1,000 100.00% 395 Refund Prior Year Expenses $26,585 $15,000 $45,000 11,585 77.23% Total Projected Revenue $4,473,835 $4,206,989 $4,114,086 266,846 6.34% Total Cash on Hand + Proj Revenue $6,201,383 $5,474,277 $4,841,898 2020 VS 2019 TOWNSHIP GENERAL FUND EXPENSES 2020 2019 2018 INCREASE Percent Acct # Department Budget Budget Budget AMOUNT Change 400 Board of Supervisors $39,330 $49,824 $48,826 (10,494) -21.06% 401 Administration $387,882 $363,099 $348,898 24,783 6.83% 402 Auditors $11 $11 $11 0 0.00% 403 Tax Collection $5,600 $5,400 $5,225 200 3.70% 409 Building Maintenance $63,635 $63,684 $60,464 (49) -0.08% 410 Police Department $2,260,891 $2,164,681 $2,056,069 96,210 4.44% 411 Fire Departments $289,642 $299,215 $315,533 (9,573) -3.20% 412 Ambulance $45,716 414 Planning/Zoning $28,860 $27,810 $27,245 1,050 3.78% 415 EMA/911 $17,366 $23,366 $19,366 (6,000) -25.68% 421 Humane Society $250 $250 $1,935 0 0.00% 423 Safety Committee $3,092 $1,650 $650 1,442 87.39% 430 Hwy-General $540,584 $483,652 $476,666 56,932 11.77% 432 Hwy-Snow Removal $11,429 $11,429 0 0.00% 433 Hwy-Signals/Signs $5,000 $5,000 $5,000 0 0.00% 434 Hwy-Street Lighting $960 $900 $816 60 6.67% 437 Hwy-Vehicle Maintenance $102,879 $95,277 $91,259 7,602 7.98% 439 Hwy-Construction/Rebuild $0 $0 $11,429 0 448 Fire Hydrants $91,458 $91,458 $89,708 0 0.00% 450 Rental Properties (2) $23,460 $10,565 $10,780 12,895 122.05% 451 Recreation $198,835 $173,389 $209,299 25,446 14.68% Page 4 of 16

456 Library $6,000 $6,000 $6,000 0 0.00% 492 Interfund Operating Transfer $949,952 $326,468 $326,024 623,484 190.98% Interfund Operating Transfer -$600,000 Total Projected Expenses $4,472,832 $4,203,128 $4,111,203 $91,925 6.42% Projected Yr End Balance $1,728,551 $1,271,149 $730,695 General Fund Expenditures: The 2020 budget maintains all current level of services. The Township will continue to utilize services of the Lebanon County Treasurer ’s Office for tax collection of Real Estate, Fire Protection, and Street Light Taxes, which provides a 50% savings for all costs associated with the mailing and collection of taxes. The Township also contracts with the County Treasurer ’s Office for collection of delinquent Real Estate and Street Light Taxes. The departmental capital purchase items reflected in the budget are as follows: Administration: $ 7,500 – Office Policy/Procedures Manual $ 858 – One Desktop Computer $ 2,800 – Copier $11,158 -- TOTAL Police Dept: $ 5,000 – (5) Desktop Computers $ 9,000 – (4) Laptops for SUVs $14,000 – TOTAL The purchase of a Police SUV is listed under the Capital Reserve Fund for 2020. FIRE DEPARTMENTS (Ebenezer, Glenn Lebanon, Rural Security, Weavertown): $192,000 ($48,000 allocation to each Fire Company) $120,000 (Fire Co Capital Reserve Account — $30,000 each) restricted to vehicle equipment purchases only. Based on the budget workshop held on November 6 th , with the NLT Fire Company Representatives, the township will slightly increase the .4 mill Fire Protection tax to .420 mills. However, to offset this increase, the Real Estate general tax millage will be reduced to 1.59 mills, so no tax increase is necessary. This will cover the annual $192,000 ($48,000/each FC) and will be disbursed in two equal payments; June and December. In addition, $120,000 will be transferred into the Fire Company Capital Reserve Fund to be used solely for larger vehicle equipment purchases per the signed MOU with each FC. All additional fire-company related expenses will be taken from this fire protection tax including the Worker’s Comp insurance. FASP The 2020 budget includes a contribution to First Aid and Safety Patrol (FASP) towards future capital purchase of equipment. This line item is new for 2020 and is a result of numerous meetings held between those municipalities utilizing the services of FASP and FASP representatives. For 2020, the contribution amount is $45,716, which represents $4 per capita (11,649). EMA: No Capital Purchases requested for 2020. Page 5 of 16

HIGHWAY DEPARTMENT: $ 6,300 – 8’x8’ Alum Trench Box FLEET MANAGEMENT: $ 3,500 – Small Tools RECREATION: None — See Park & Rec Fund General Fund Depts. vs. Overall Budget Safety Comm, 0.07% Planning/Zoning, Public Works, 12.09% 0.65% EMA/911, 0.39% FASP, 1.02% Humane Society, Traffic 0.01% Fire Dept, Signals/Lighting, 6.48% 0.13% Stormwater, 0.00% Co Liq Fuels, 0.26% Fire Hydrants-CoLA, 2.04% Police, 50.55% Rental Properties, 0.52% Recreation, 4.45% Debt Svc, 0.00% Admin, 8.67% Library, 0.13% Interfund Transfers, 7.82% Auditor-Elected, Tax Coll, 0.13% Bldg Maint, 1.42% 0.00% Page 6 of 16