2010 BUDGET

RAPHO TOWNSHIP

BUDGET NARRATIVE

General Fund

Income

The 2010 general fund tax and permit revenue is estimated to be almost the same as the revenue estimated for the 2009 budget year.  While it is anticipated that the 2009 actual income from these sources will actually exceed the 2009 budget amounts, the Township will continue to budget income conservatively.  This includes an estimate for interest income that is 50% lower than 2009’s budget figure.

Grant revenue that the Township anticipates includes state and County grants totaling $86,200 to reimburse for the preparation of the regional comprehensive plan.  In addition, the Township will seek County grant funding for LED traffic signal upgrades that will be available in 2010.  Additional grant-funded capital projects, which were included in the general fund in 2009, will now be accounted for in the capital reserve fund.

The total general fund budgeted income is $1,913,647.37.

General Fund

Expenses

Employees’ salaries are frozen in the draft 2010 budget.  There is an increase anticipated in health insurance costs, particularly due to the additional cost of insurance for the manager and administrative assistant.  The percentage increase for health insurance rates is approximately 5%.  Eye care coverage has been added to health and dental benefits.

The manager’s expenses have increased slightly due to the addition of professional association membership and a cell phone.

Tax collection and office expenses are not expected to increase significantly in 2010.

Legal and engineering fees for the Township have varied significantly in recent years.  The 2010 general fund legal budget is somewhat higher the 2009 budget figure.  Legal fees relating to right-of-way acquisition for capital projects have been accounted for in the capital reserve fund.  Engineering fees associated with capital projects are also included in the capital reserve fund budget.  General fund expenses for the Township engineer’s review fees are not anticipated to increase from 2009.

With improvements to the municipal building and grounds completed in 2009, projected figures for the government building line items are more comparable to 2008’s budget than 2009’s.  Electrical costs have been locked in with the Lancaster Purchasing Cooperative, and are budgeted to increase by 10% over the average costs of the last 5 years.  Gas heat costs are expected to be somewhat lower due to the improved HVAC system in the municipal building.

The Township plans to increase funding for both police and fire protection in 2010.  The Township will double its contribution to the Mount Joy Borough police department and increase funding to both the Penn Township and Manheim Borough police departments by an average of 60%.  The Drug Task Force and School District Police Officer contributions remain the same.

Fire department contributions have been increased by 15% for all three fire companies serving the Township.  The 2010 contribution for each will be $30,000.  The Township’s coverage of insurance and diesel fuel for the Mastersonville Fire Company will continue.

Planning and zoning expenses include the completion of the comprehensive plan and a higher hourly rate of $35 for the contracted zoning officer to begin in April 2010.

The emergency management line item has been increased to fund supplies and training for the coordinator.

The Township will contract with the Humane League for services after not participating in 2009. 

The annual loan payment to the Manheim Borough Authority as per the amortization schedule is $38,789.00.  This loan will be paid in full in 2017.

The 2010 budget for general highway expenses includes funds for the replacement of the salt shed roof ($20,000), as well as purchase of minor equipment including a roller trailer, street saw, and auger.

The highway department will purchase an automatic truck in 2010, to be used with the new pothole patcher equipment.  The truck will be purchased using state liquid fuels funds and will be fit with the current truck’s salt spreader.  The currently owned truck will be fitted with a frame and box spreader to continue to be used for snow plowing.  These alterations are budgeted in the general fund budget, also in the minor equipment purchase line item.

A number of line items previously budgeted in the general fund budget will be accounted for in the state fund budget in 2010.  These include traffic signs, traffic light maintenance and electrical costs, and line painting.  The grant-funded LED upgrades ($2,400) and costs exceeding collections in the street light fund ($15,000) are still included in the general fund budget.

The highway department anticipates doing a significant amount of pothole patching in 2010, and the oil for the patcher is accounted for in the 438.245 line item.  The figure for that category is doubled from 2009’s budget to $40,000, and will also cover costs for pipe, stone, and inlets for maintenance projects.  Additional funds have been included in the contracted services line item to account for weed control, tree trimming, and the increasing need for emergency sinkhole repairs. 

Highway construction projects previously budgeted in the 439.00 category will be budgeted in 2010 entirely in the capital reserve fund.

The Township’s contribution to MCRec will be $85,523.84, as requested by the MCRec Board.  Contributions to Mount Joy Borough, the Soccer Club, and the Manheim Athletic Association will continue as in previous years.  No new projects are anticipated in Rapho Park in 2010.  The Township is increasing the contributions to both the Mount Joy and Manheim libraries by 3%, to $14,754.75 and $10,511.15, respectively.  Funding for both the Mount Joy and Manheim Historical Societies will continue.

All other insurance costs are expected to increase approximately 3% from current rates.  The minimum municipal obligation for the Township’s pension plan increased to $13,058 for 2010.  This figure is added to the state’s pension aid (income line item #355.060) and will be paid through the 483.300 line item.  This is a significant increase from previous years’ pension costs, to compensate for the low interest earnings on pension investments in 2009.

Transferring projects to the capital reserve fund requires the transfer of general funds to support those projects.  The 2010 transfer is estimated to be $430,000.  Funds will be moved to the capital reserve fund as needed throughout the year to be paid as capital expenses.

The total general fund expenses are $1,905,730.86

State fund

Income

The 2010 liquid fuels allocation for the Township is $288,612.60.  This amount is based on road mileage, which now totals 93.34 miles, since the dedication of several small streets in 2009.

The total state fund budgeted income is $322,292.60.

State fund

Expenses

The purchase of the automatic truck is accounted for under line item 430.740, at a budgeted cost of $131,410.57.  The Township has not purchased equipment using state funds for a number of years, and thus is permitted to exceed the 20% limit of equipment costs to be taken in a single year.

Salt costs are based on a five year average. 

As previously noted, traffic supplies and signs, traffic light maintenance and electricity, and line painting will be paid for with state funds in 2010.  New signage is anticipated to be installed on Colebrook and Iron Bridge Roads.  Traffic light annual maintenance is now included in the budget.  The total traffic control costs, including those costs incorporated into the 2010 general fund, are $62,995.

Oil and chip project locations will be identified in 2010, with the total cost of all projects estimated at $115,000.

The total state fund budgeted expenses are $320,666.62.

Capital reserve fund

Income

The capital reserve fund budget is new to the Township in 2010.  This budget will be project-based, allowing large, lengthy projects to be paid for over multiple budget years.  Anticipated income in 2010 will be from the general fund transfer ($430,000) and grant funds which will be deposited directly into the capital reserve fund, not passing through the general fund.

The largest project anticipated to be underway in 2010 is the Newcomer Road bridge replacement.  The Township’s match to the state and federal funds allocated to that project is 5%.  The Township also anticipates grants from Lancaster County totaling $330,394 for intersection improvements at the Colebrook Road/772 intersection and the replacement of the Sunnyside Road bridge.

The total capital reserve fund budgeted income is $1,711,394.

Capital reserve fund

Expenses

The projects to be undertaken in 2010 are the Colebrook Road traffic signal and intersection improvements, and the replacement of the Newcomer Road, Mastersonville Road, and Sunnyside Road bridges.  Detailed budgets for each of these projects are included on the Capital Reserve Fund Current Active Projects spreadsheet.

Additionally, the Township is anticipating the realignment of the Eby Chiques Road in conjunction with the County’s replacement of that bridge in 2011.  The engineering for this project will be completed in 2010, at a budgeted cost of $10,000.

The total capital reserve fund budgeted expenses are $2,153,000.