RAPHO TOWNSHIP

2013 BUDGET NARRATIVE

GENERAL FUND

Income

The Township begins its second year with a real estate tax rate set at 1.75 mills.  With the increasing property assessment figures, plus the higher than anticipated collection rate in 2012, revenue generated by this tax is estimated at $1,347,319.  Real estate transfer tax was particularly high in 2012, and has continued to trend up each year.  Real estate transfer tax is expected to generate $228,000.  Revenue from local services tax has been averaged over the past three years, and a conservative budget of $148,000 has been included.

Due to excellent advance preparation by the Lancaster County Tax Collection Bureau, revenues from the Earned Income Tax did not fall off, as was predicted with the implementation of the statewide Act 32 requirements.  LCTCB continues to give conservative estimates for 2013, though 2012’s income exceeded expectations.  The Township’s budget anticipates $1,100,000 in Earned Income Tax.  The total tax revenue budgeted is $2,823,319.

Several significant unknowns are incorporated into the 2013 budget.  One issue is the status of the Township’s recycling program.  At this time it has not been determined whether the Township will continue to offer recycling services, therefore, no revenue has been budgeted for that program.  An increase in recycling grant funds has been anticipated, with the pending application to the Department of Environmental Protection for assistance with implementation of an outreach program.  This revenue is anticipated at $17,240. 

With the conclusion of the first year of police service, it becomes clearer what revenues can be anticipated from local police fines.  Fines are expected to generate $15,000.  The Pennsylvania State Police in 2013 begin their long-awaited move toward limiting service to municipalities without police departments.  The first step is that state police fine funds will be withheld from those municipalities.  The Township no longer is at risk for such penalties, however, the State Police are now also withholding fines collected on interstate highways from all municipalities.  A lower budget figure of $8,000 has been anticipated for 2013. 

Revenue from residential building and zoning permit fees have continued to be steady as residential development in the Triangle area continues at a quick pace.  Commercial development also grew in 2012.  The total budgeted revenue for all building and land development fees, based on the average of recent years, is $70,700.

With the construction of two new pavilions, as well as the continually increasing use of other Township recreation facilities, fees collected are expected to grow.  Total fees to be collected from activities at Rapho Park are budgeted at $7,450.

The total general fund budgeted income is $3,174,000.

GENERAL FUND

Expenses

Total projected personnel expenses are expected to be somewhat higher due to the pending change from a part-time to a full-time Zoning Officer, beginning in April 2013.  Overall staff wage increases average 3%. 

Health insurance costs continue to increase.  In 2013 the Township will absorb a 16% increase in its HRA program. 

The Tax Collector began to be compensated by the Township due to the collection of the Real Estate tax in 2012.  The total cost of tax collection, including postage and supplies is expected to be $10,204.

Computer consulting has been budgeted for $15,000, as the Township continues to upgrade computer hardware and anticipates the purchase of software for scanning and storing all historical documents.

Engineering fees are anticipated to increase in 2013 to $40,000, with an ongoing update of the Zoning Ordinance.   

One of the most significant changes to the 2012 budget was the cost of contracted police services.  2013 will be the second year of the Township’s contract with Manheim Borough, with the total contracted amount slightly lower than in Year 1, at $835,367. 

A new funding strategy for our three volunteer fire companies (Mastersonville, Manheim, and Mount Joy) was undertaken in 2012, and will continue, with adjustments, in 2013  Each fire company has provided operating and capital budgets, and, using a calculation based on population, assessed value, square mileage, and number of incidents, Rapho’s percentage of those costs was determined.  Each company will receive quarterly payments for their operating budgets.  In addition, a capital fund was established in 2012 for each company.  Capital funds are held by the Township until a request for their release is made to the Fire Advisory Council and authorized by the Board of Supervisors.

Each company continues to fine-tune its budgeting process, and adjustments have been made in operating budgets to account for this process.  All companies anticipate putting capital funds aside for projects and large purchases including radios, breathing apparatus, and future building improvements.

The total budgeted cost of fire protection, excluding the pass-through foreign fire tax, is $428,000, which is approximately 7% higher than in 2012.  

Contributions to ambulance providers have been increased by 3%, to a total of $12,762.

The Board of Supervisors determined in 2012 that the Township will no longer participate with the Humane League, which proved to be a wise decision, since the League has now moved to accepting no animals from municipalities.  A stray dog program using a local kennel, Playful Pups, has worked very well and will continue in 2013 at an estimated cost of $1,750.  This cost will be offset by the revenue anticipated from recovery and room and board fees paid by dog owners who reclaim their lost pets.

The third of seven remaining payments to the Manheim Sewer Authority will be made in 2013 in the amount of $44,035.  This includes the Township’s portion of the upgrades to the Authority’s facilities completed in 2011.  A loan to the Authority in the amount of approximately $226,000 was forgiven in 2011 as part of the upgrade payment.

The 2013 budget for general highway expenses includes funds for the potential municipal building and site improvements that will be required as the Township works to comply with the state and federal Municipal Separate Storm Sewer System (MS4) requirements.  The costs of this program will also include significant engineering expenses.  An additional $10,000 has been included in the budget for the planning and implementation of the program.  The total budget for general highway expenses, including the $10,000 MS4 engineering, is $412,037.

As in 2012, most line painting and signal maintenance will be paid for with state funds.  Traffic signs and some line painting will be included in the general fund.  Costs continue to exceed allowable collections for street lights in the newly developed areas, and so an allotment of $10,000 is included in the general fund to bridge that gap.

The Public Works Department continues to incur unplanned expenses due to emergency sinkhole repairs and storm damage.  In the 2013 budget, emergency materials and emergency contracted services have been split out into two new line items.  Ordinary maintenance such as pothole patching, pipe and inlet replacement, weed control, and tree trimming can now be isolated and reviewed separately.  The total budget for highway maintenance and repairs is $180,000.  Highway construction projects are budgeted in the capital reserve fund.

In 2012, the Township performed significant maintenance and clean-up at Kauffman Cemetery, which is owned by the Township after the dissolution of its governing body.  The 2013 budget allows $10,000 for the replacement of the retaining wall at the cemetery.

Entering the third year of the maintenance of Rapho Park by the Township, the new expense items introduced in the 2012 budget will continue.  These include expenses for the maintenance of the restrooms, collection of trash, and mulching, spraying, and mowing the grounds.

In 2013 the Township will continue to support Manheim Borough’s recreation expenses with cash contributions and staff cooperation.  Funds for ongoing support in 2013 are budgeted in the Community Recreation line item in the amount of $20,000.  The budget also includes $4,000 for maintenance at Mummau Park, which is jointly owned by the Township and the Borough.  Total general recreation expenses are estimated at $62,287.  If additional recreation fees are received from developers, the Township plans to install parking lot lights for safety at the park.  This cost is estimated at $18,000.

The Township is increasing contributions to both the Mount Joy and Manheim libraries by 3%, to $17,760 and $12,656, respectively.  Funding for both the Mount Joy and Manheim Historical Societies will continue as in previous years. The 2013 budget allows for a $1,000 contribution to the Manheim Area Economic Development Corporation’s Downtown Development Group.  Also incorporated into this year’s budget is a contribution of $3,000 to the Chiques Creek Watershed Alliance to support their ongoing public outreach and projects.

General liability, auto insurance, and errors and omissions insurance costs are budgeted to remain constant with current rates.  Workers’ compensation costs are also estimated to stay the same.  The Township has been fortunate to have not had changes to workers’ compensation coverage, as many carriers are refusing to cover fire companies under the new state law which expands firefighters’ long-term benefits.

The minimum municipal obligation for the Township’s pension plan is anticipated to be $0 in 2013, due to the strong financial state of the pension fund.  The Township seeks to continually improve the pension fund, and so $10,000 has been added to be paid in 2013, though not required to meet the minimum obligation. 

Transferring projects to the capital reserve fund requires the transfer of general funds to support those projects.  The 2013 transfer is planned to be $380,000.  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 $3,173,729.

STATE FUND

Income

The 2013 estimated liquid fuels allocation for the Township is $311,627.63.  This amount is based on road mileage, which now totals 93.34 miles, since the dedication of several small streets in 2009.  The turnback allocation remains the same each year. 

The total state fund budgeted income is $343,307.

STATE FUND

Expenses

Budgeted salt and cinders costs are based on a five year average. 

Funds are budgeted for battery back-ups for the traffic signals at Route 72 and the Turnpike and at Route 72 and the Renaissance Faire.  The Township has applied for A.R.L.E.S. funds to cover these back-ups, but the cost is included in the State Fund budget in case the grant is not received.

There are no oil and chip projects planned in 2013.  Several overlay and reclamation projects will also be completed, at a proposed cost of $301,000. 

The total state fund budgeted expenses are $414,000.  The Township will utilize approximately $71,000 from state fund reserves to complete these projects.  State fund reserves were not used in 2012 due to the receipt of Federal Emergency Management Agency funds for the replacement of the Auction Road bridge.

CAPITAL RESERVE FUND

Income

The capital reserve fund budget is project-based, allowing large, lengthy projects to be paid for over multiple budget years.  2013’s budget is based on the anticipation of several large intergovernmental payments.  First, the Township is waiting for the award of grant funds for required compliance with State Act 101, which mandates recycling for communities exceeding a population of 10,000.  The Department of Environmental Protection can assist communities with funding for new recycling programs in their efforts to comply.  Because the Township is newly mandated, a grant application to cover the installation of a paved, fenced recycling facility at the Township complex, along with the purchase of a loader and grapple bucket has been submitted. 

The 2013 capital reserve fund budget includes $238,000 for this grant.

The Township is also at this time waiting for FEMA’s approval of a change in scope for the replacement of the Auction Road bridge, which was damaged by Tropical Storm Lee in 2011.  Because the actual costs of the project exceed the initial amount estimated by FEMA early in 2012, the Township has submitted a request, but it is possible that this approval may not be given until early 2013. 

The 2013 capital reserve fund budgets $359,000 in additional FEMA funds to reimburse expenses incurred in 2012 for the Auction Road bridge project.

To cover all planned capital projects a general fund transfer of $380,000 will supplement these two intergovernmental payments.

The total capital reserve fund budgeted income and fund balance forward is $977,950.

CAPITAL RESERVE FUND

Expenses

For the first time, the Township will adopt a five-year capital projects plan in conjunction with the 2013 budget.  Per that plan, capital projects in 2013 using general funds include the widening of Breneman Road, reclaiming Weaver Road, and reclaiming of Mastersonville Road.  Two bridges on Mastersonville Road will also be replaced.

Provided the FEMA and DEP funds are granted, these projects, along with the construction of an on-site yard waste recycling facility and related equipment, will be undertaken in 2013.

The total capital reserve fund budgeted expenses are $ 945,525.