2009 Budget Memo
The 2009 municipal budget for Hampden Township is the fourth budget I have proposed with the input and scrutiny of the heads of all departments and after a public work session conducted by the Hampden Township Board of Commissioners. Throughout this process, I have appreciated your patience and cooperation and am most thankful for your assistance and numerous ideas. This 2009 proposed budget which reflects, I believe, our continued policy of conservative revenue estimates and realistic expenditure requirements, is one of a continuing long-series of budgets which can be funded at the current level of taxes. The 2009 budget is formulated under the guidelines of GASB 34.
The Local Service s Tax (LST) [previously called Occupational Privilege Tax ( OPT ) and Emergency and Municipal Service s Tax (EMST)] will generate approximately $750,000 dollars per year. This estimate is down from previous years due to new legislation. The new legislation allows for self exemption of the tax, if the employee knows he/she won't reach the $12,000 threshold, and also requires the tax be collected at a $1 per week rate. Revenues realized from this tax will be used for emergency and municipal services. The LST in 2009 is primarily slated to help pay for the cost of the new Highway Maintenance Facility and the new Emergency Service s Building North.
General Fund
We anticipate beginning 2009 with a cash carryover of approximately $1,460,344. The General Fund revenue budget forecasts growth within the Township by 175 new homes with slightly less than a three percent increase in tax revenue. Hampden Township 's property tax rate will not need to be adjusted and will remain at 0.18 mill.
The General Fund expense budget allows for the normal increase in material and personnel costs and a very modest transfer of $676,751 to the Capital Improvement Fund. It also allows for the continuation of Hampden 's innovative technology program, funding improvements in GIS , Web design, inter-office communication and continued training on the new building permit and accounting software. Unfortunately, it also must allow for increased benefit and insurance costs, still being driven by today's continued rising medical costs in general.
Armitage Golf Fund
This year saw a turnaround for Armitage Golf Course. Many factors contributed to this. First and foremost, I would like to thank the Board of Commissioners for its hard work and dedication in making Armitage "Simply the Best" place to play in Central Pennsylvania . Your commitment to making this year a success was evident in scrutinizing and allowing the changes recommended by the Golf Advisory Board and staff. The 2009 budget predicts a conservative year with no increase in greens fees and cart fees. The advertising budget is the same for 2009 and $41,300 will be spent on course equipment and improvements. Next year will also see a full year with a reduced, full-time maintenance staff, after a maintenance employee was reassigned to the Highway Department this year. I am looking forward to another successful year for Armitage Golf Course.
Storm Sewer Fund
The storm sewer budget continues to provide for emergency repairs and unforeseen contingencies in the storm water management systems throughout the Township. The fund, again in 2008, was used for needed and planned stormwater repairs and replacements.
Capital Improvement Fund
The Capital Improvement Fund in 2009 will have its standard sources of revenue, including a transfer from the General Fund of $676,751. Al so included in the funding mix are $344,429 of anticipated grant funding and $81,415 of developer contributions. The Township will continue payment on its loan obligations in 2009 with approximately $700,000 due each year for the next 15 years.
This fund also provides $131,000 for savings toward a new fire truck.
The Capital Improvement Fund has a very limited scope this year due to a decrease in revenue from the LST.
Sewer Revenue Fund
Sewer rates will not increase in 2009; however, due to ongoing sewer improvements in accordance with our DEP-approved Act 537 Plan, a sewer rate increase is anticipated for 2010.
Sewer Improvement/Maintenance Fund
This fund of $500,000 is provided to pay for unanticipated extraordinary repairs to the sanitary sewer collection system. The annual interest earned by this fund is transferred to the Sewer Revenue Fund.
Sanitation Fund
This fund reflects all revenue and costs associated with the collection of solid waste and recycling within the Township. Trash contract expenses will equal 94 percent of all revenue generated and our administrative expenses will be covered by the remaining six percent. Trash rates, with the exception of a $0.03 increase in the quarterly reduced rate, will remain the same for 2009 as we begin the third year of a three-year contract. I do expect an adjustment in rates for 2010 due to the expiration of the current contract and the bidding of a new contract.
Pool Fund
The year 2008 was another exceptionally good year for the Hampden Township Pool due to a steady membership base. Our cash carryover into 2009 is approximately $88,758. A $1 increase in the daily admission fee is proposed for 2009. The new tot pool and bath house were opened and operational for the 2008 season. The 2009 budget anticipates double payments to pay off early the debt incurred in 2007. I ask the Board to allow the fund to be aggressive in reducing this debt early on in upcoming years.
Highway State Aid Fund
This fund, used to receive and disburse our state liquid fuels monies, will increase slightly in 2009. This fund is also programmed to borrow approximately $2.75 million for the purchase of the Township's street lights from PPL . This purchase will allow us to assume control of the street lights. The Township will install energy-efficient bulbs over the next year in order to reduce the cost the Township pays for electricity and maintenance of these lights. The debt incurred will be liquidated over the next 20 years with budget savings from the anticipated decreased cost in energy and maintenance expense. In 2009, the fund will cover, not only the cost of street lighting and a dump truck for the Highway Department but also, the cost of our street-resurfacing program with an approximate carryover of $40,000 which can be applied to highway projects or equipment in the future.
Unemployment Compensation Fund
This fund will require almost $40,000 in new revenue for 2009 which will be transferred from various funds within the Township. The purpose of the Unemployment Compensation Fund is to self-insure the Township against unemployment claims.
Retired Benefits Fund
This fund is designed to bear the cost throughout the years of medical/COLA benefits for retirees. The total expense in 2009 is expected to be $71,332 and $82,451 will be added to the fund to ensure its continued well being. If the Township begins funding the GASB 45 "requirement", this fund will need to be increased significantly.
Summary
I believe this proposed budget reflects realistic and well-founded estimates of Township revenue. Hampden Township continues to be fortunate, being able to maintain a very low tax rate while at the same time being able to deliver and, in fact, increase our excellent services to the public and further enhance our financial position. The exciting part of this scenario is that the Township, because of your vision and leadership, will be poised to better control its energy consumption and costs in 2010 due to the anticipated purchase of our street lights in 2009.