2018 Summary Budget by Centre Region COG

2018

SUMMARY BUDGET

CENTRE REGION COUNCIL OF GOVERNMENTS 2018 SUMMARY BUDGET Table of Contents 3 4 5 8 35

SCHLOW CENTRE REGION LIBRARY SCHLOW CENTRE REGION LIBRARY CAPITAL

78 82

CENTRE REGIONAL PLANNING AGENCY CENTRE COUNTY METROPOLITAN PLANNING ORGANIZATION

84 87

REGIONAL REFUSE AND RECYCLING PROGRAM COG CONTINGENCY FUND COG BUILDING CAPITAL INSURANCE RESERVE FUND UNEMPLOYMENT RESERVE

41 45 49 51 56 61

REGIONAL FIRE PROTECTION PROGRAM FIRE PROTECTION CAPITAL

91 95

OFFICE OF EMERGENCY MANAGEMENT EMERGENCY MANAGEMENT CONTINGENCY FUND

63 65

CODE NEW CONSTRUCTION PROGRAM CODE EXISTING STRUCTURES PROGRAM CODE CAPITAL

67 72 76

CENTRE REGION COG SERVICE AREA GENERAL FORUM MEMBERS

2018 COG BUDGET SUMMARY TABLES EXECUTIVE DIRECTORâ&#x20AC;&#x2122;S LETTER BUDGET COMPARISONS OFFICE OF ADMINISTRATION

PARKS AND RECREATION OPERATING PARKS AND RECREATION CAPITAL EQUIPMENT AQUATICS PROGRAM AQUATICS CAPITAL ACTIVE ADULT CENTER MILLBROOK MARSH NATURE CENTER MILLBROOK MARSH NATURE CENTER CAPITAL REGIONAL PARKS CAPITAL

99 104 106 109 113 118 123 127

GENERAL FORUM MEMBERS 2017 CHAIR: Thomas Daubert, State College Borough VICE CHAIR: Danelle Del Corso, Halfmoon Township COLLEGE TOWNSHIP COUNCIL

FERGUSON TOWNSHIP SUPERVISORS

HALFMOON TOWNSHIP SUPERVISORS

Richard Francke, Chair L. Eric Bernier Carla Stilson Steven Lyncha Anthony Fragola

Steve Miller, Chair Janet Whitaker Peter Buckland Laura Dininni Rita Graef

Danelle Del Corso, Chair Todd Kirsten Andrew Merritt Barbara Spencer Mark Stevenson

HARRIS TOWNSHIP SUPERVISORS

PATTON TOWNSHIP SUPERVISORS

STATE COLLEGE BOROUGH COUNCIL

Dennis Hameister, Chair Nigel Wilson Bruce Lord Charles “Bud” Graham Frank Harden

Elliot Abrams, Chair Walter Wise George Downsbrough Jeffrey Luck Dan Treviño

Thomas Daubert, President Theresa Lafer Cathy Dauler Evan Myers David Brown Janet Engeman Jesse Barlow MAYOR: Elizabeth Goreham

THE PENNSYLVANIA STATE UNIVERSITY

STATE COLLEGE AREA SCHOOL DISTRICT

Zach Moore / Charima Young

Gretchen Brandt

2018 Summary Budget â&#x20AC;&#x201C; Summary Tables

No man is an island entire of itself; every man is a piece of the continent, a part of the main. John Donne

We must, indeed, all hang together or, most assuredly, we shall all hang separately. Benjamin Franklin

2018 SUMMARY BUDGET EXECUTIVE DIRECTOR’S TRANSMITTAL LETTER The Finance Committee, Agency Directors, and I are pleased to present for your consideration the 2018 Summary Budget for the Centre Region COG. This budget document reflects the recommendations, comments, and concerns of many individuals and groups including the Schlow Memorial Board of Trustees, the Centre Region Parks and Recreation Authority, Millbrook Marsh Advisory Committee, Centre County Metropolitan Planning Organization, the COG Public Safety Committee, the Human Resources Committee, individual municipal officials, and the public. The Finance Committee’s budget review sessions were cablecast on C-NET, channel 7 and are available for web-streaming at http://cnet1.org/video/ShowByMember/5/. The recommendations contained in this budget proposal build upon the municipal partnerships that have been made possible by the hard work, creativeness, and commitment of the elected and appointed officials and the COG Staff. These partnerships have made it possible to provide Centre Region residents with a broad range of important public services in a high quality and cost effective manner that is accountable to the elected officials. Included in this budget are revenue projections and proposed expenditures to provide general government services such as fire protection, emergency management, parks and recreation, library, land use and transportation planning, and building code administration to the more than 95,000 people (May 2016 US Census) who live in the Centre Region and a great many others who visit or work in our area. Local governments are being challenged on many fronts. Federal, state, and county financial support has, and will likely remain, diminished. At the same time new responsibilities are being added to local government or existing state and federal obligations are being

2018 Summary Budget – Executive Director’s Letter

shifted to local government. These unfunded mandates strain municipal budgets that are limited to a narrow range of revenue generating options. Over time, state and federal governments have failed to adequately invest in the maintenance and improvement of public infrastructure (bridges, storm water, roads, etc.), which increasingly will adversely affect local government. Looking ahead, Pennsylvania’s 2,562 municipalities will need to rely on their own resources to a much higher degree than in the past. There is no cavalry coming to the rescue. In the future, municipalities that are able to partner with their neighboring jurisdictions will be in a stronger position than communities that do not. Through their involvement in the Council of Governments, the Centre Region municipalities are recognized leaders in intergovernmental cooperation. The extraordinary power of partnerships is clearly demonstrated in the success of the Centre Region municipalities in constructing one of the finest and most used libraries in Central Pennsylvania, relocating the Active Adult Center to a larger facility that has more than doubled resident usage, renewing two swimming pools and turning them into financially self-supporting regional destination points, acquiring and upgrading the John Hess Softball Field Complex, constructing the 68-acre Oak Hall Regional Park with its four new softball fields and large expanses of open pastures planted with wild flowers and hopefully in the future expanding the Education Building at the Millbrook Marsh Nature Center. In broad terms, a COG is a way that local governments can work together to save money or to accomplish other public ends that a single municipality would not otherwise achieve on its own. It should be further recognized that a COG is not the formation of a “local super government” or any attempt at local government consolidation; however, it is simply a tool for local governments to use to eliminate duplication -- while in turn, providing the best possible municipal services at the smallest expense to their resident taxpayers. As the future unfolds it will become increasingly clear that the municipalities that walk the talk of intergovernmental cooperation will be more successful in maintaining a high quality of life for their residents and providing quality public services at a lower cost than local governments that have not invested the time and resources in developing these relationships. The competitive advantage that the Centre Region COG brings to the provision of local government services is being recognized by the communities surrounding the Centre Region. Benner Township is a member of the Regional Refuse and Recycling Program and beginning on July 1, 2014, Bellefonte Borough began contracting its code administration services through the COG and this July extended the service contract until January 1, 2020. Looking forward, the Benner Township Board of Supervisors is considering joining the regional Emergency Management Program as it relates to properties (primarily the University Park Airport) owned by The Pennsylvania State University that are located in the Township. The draft 2018 budget maintains, and in some areas, grows the partnerships that have enabled the Centre Region to provide:  Fire protection services at a cost of approximately 17% of the national average for communities of similar size  A reduction of residential refuse/recycling costs by 25% from their 1991 levels

2018 Summary Budget – Executive Director’s Letter

 A regional Emergency Management Program that is considered to be a “best practice” by the Pennsylvania Emergency Management Agency (PEMA)  A popular and comprehensive Aquatics Program that does not depend on municipal tax dollars to pay for operating expenses  A code inspection program that has been financially self-supporting for almost 40 years and is one of the most highly rated Code Agencies in the United States according to the International Organization for Standardization (ISO)  Over $3.1 million in state and federal grants for regional pools and park improvement projects during the last 10 years  A regional transportation planning program that is successfully developing an interconnected system of bike trails that are linking neighborhoods, work places, and public facilities together.  A local/regional planning program that through the use of regional growth boundary and sewer service area limiting sprawl development and preserving open spaces and farm lands. The 2018 COG Detailed Budget is below the 2.75% increase in municipal contributions target threshold set by the General Forum. The 2017 to 2018 adjustment is 2.38%. This is the fourth consecutive year the annual COG budget has been below the General Forum’s guideline. Of the 26 individual budgets included in the 2018 COG Detailed Budget, with the three following exceptions, all of the budgets are within the General Forum’s guidelines: 

Fire Operating ($1,019,262/12.9% increase): This budget is proposed to increase by $116,311. Two factors account for 85% of this increase – the new Equipment Technician position and an increase in the stipend paid to the Alpha Fire Company volunteers. The recommended new position received municipal endorsement through their comments provided in response to the 2018 COG Program Plan. As suggested by the Finance Committee, during the next several weeks the Fire Director will be attending individual board/council meetings to discuss the justification and cost of the proposed increase in the stipend paid to the volunteers and how this amount may change in the future.



Library Operating ($1,479,045/4% increase): This budget is proposed to increase by $56,886 largely because state aid decreased by one-third and then remained at the low level for the last five years. Although the Library Board and staff have initiated efforts that have significantly increased community donations, these contributions have not been sufficient enough to offset the stagnant level of state and county funding when coupled with increasing personnel and operating costs.

2018 Summary Budget – Executive Director’s Letter



COG Building Capital ($31,400/65% increase): This budget is proposed to increase by $12,400 because of expenditures to connect the COG Building to KINBER fiber optic system for LAN/WAN services and a $5,000 expense to conduct a study to identify options and costs for providing emergency power to the COG building. The results of this study will be presented to the General Forum within the context of the 2019 COG Budget.

It should also be noted that the budget for Centre Region Code Administration recommends a 7.7% reduction in the cost of a building permit and no change in the cost of rental housing or fire permits. Municipal contributions are proposed for the 2018 fiscal year to increase from $6,605,486 (2017 Budget) to $6,762,626 (2018 Budget), a change of $157,140. Because of changes in the COG funding formula factors (population less college students, earned income base, assessed property valves) and/or the package of services the municipal receives from the COG, the 2018 adjustment varies among the six municipalities. Individual community adjustments are State College Borough (4.87%), College Township (1.56%), Ferguson Township (-0.29%), Halfmoon Township (-1.47%), Harris Township (3.31%), and Patton Township (3.90%). In looking at the changes in municipal shares from 2017 to 2018, the shift in contributions involving State College Borough (4.87%) and Ferguson Township (-0.29%) stand out. This is an anticipated reversal from the prior year’s budget where the Borough had a decrease of 1.81% and Ferguson Township had an increase of 5.49%. The reason for this relatively wide fluctuation is due to the amount of the Earned Income Tax (EIT) revenue recognized on the municipal Pennsylvania Department of Community and Economic Development Reports. The information recorded in these reports varied because Penn State University, the area’s largest employer, switched during 2016 between remitting EIT payments from a quarterly basis to a monthly basis. The State College Borough and Ferguson Township used different accounting practices to record this switch. This EIT driven formula fluctuation should not occur again in 2019. The overall COG Budget is proposed to decrease from $24,296,938 (2017) to $23,296,041 (2018) a reduction of $1,000,897. In large measure, this reduction occurred because the 2017 budget assumed that during the year that all the loan monies (about $4.8 million) borrowed for the Whitehall Road Regional Park project would be withdrawn with about $2.5 million spent during the year for planning and construction activities. In contrast, the 2018 budget assumes that about $1.2 million will be expended on park planning and construction activities.

2018 Summary Budget – Executive Director’s Letter

2018 Agency Budget Highlights The following is a summary of the major changes from 2017 to 2018 in the COG Agency Budget. ADMINISTRATION Fund Balance

The estimated January 1, 2018 fund balance for the Office of Administration is $62,429 compared to the 2017 budgeted fund balance of $48,369. Of the 2018 fund balance, $20,000 is a carry-over from the 2017 Budget. This carry-over is designated to retain a consultant to evaluate COG’s IT systems and to prepare a three year plan for the future.

Personnel

No personnel changes are proposed.

Revenues

Municipal contributions are proposed to increase from $388,197 (2017 Budget) to $396,277 (2018 Budget), an increase of $8,080 (2.1%). The administration fee paid by Centre Region Code Administration is expected to total $125,000, a $25,000 increase from the 2017 budgeted amount. Included in this fee is a $6,000 payment to the Office of Administration for the New Construction Program to reimburse its costs for conducting a customer satisfaction survey on individuals who were issued a building permit in 2017.

Expenditures

With the following exceptions, most estimated 2018 expenditures are approximately the same as in 2017: 

Employee health insurance is expected to increase from $70,652 to $106,725, a change of $36,073. This increase is largely due changes in employee coverage. Previously there were employees who waived insurance coverage or had a lower coverage level and in 2018 the coverage for the staff has shifted to a higher coverage level.



$12,000 is proposed to retain a consultant to update the COG Personnel Policy. During its June 1, 2017 meeting the Human Resources Committee unanimously voted to endorse this expenditure to ensure that the COG’s Personnel Policy Handbook reflects current operating practices, captures trends in personnel management, and is in compliance with federal and state regulations. This recommendation was included in the 2018 Program Plan and unanimously supported by the municipalities.



$6,000 is included for the Office of Administration to conduct a customer satisfaction survey for Centre Region Code Administration as discussed above.

2018 Summary Budget – Executive Director’s Letter

Capital

$1,200 is proposed to purchase a secure file cabinet for the Human Resource Officer and $400 to replace the chair for the Office Manager.

REGIONAL REFUSE/RECYCLING PROGRAM Fund Balance

The estimated January 1, 2018 fund balance for the Regional Refuse and Recycling Program is $152,956 compared to $140,351 for 2017, an increase of $12,605. The program’s fund balance is intentionally increasing for the purpose of offsetting some costs to develop and implement an organics recycling program for implementation in 2020.

Personnel

No staffing changes are proposed.

Revenues

During 2018, the Regional Refuse/Recycling Program will continue to be entirely funded by the $97,020 administrative fee paid by Advanced Disposal Services to the Centre Region COG for monitoring the service contract, resolving problems, and assisting the company in obtaining customer payments. It is anticipated that the Centre Region COG will receive a $15,000 recycling rebate from the Centre County Recycling and Refuse Authority. This estimate is the same as the 2017 budgeted amount. In previous years the rebate was much higher, but it has decreased with the corresponding decline in the market value of recyclable materials.

Expenditures

No significant expenditure changes are proposed.

Capital

No capital items are proposed.

COG CONTINGENCY Fund Balance

The estimated January 1, 2018 fund balance for the Contingency Budget is $24,597 compared to $24,380, an increase of $217. The fiscal management goal is to maintain a fund balance of approximately $25,000.

Revenues

No municipal contributions are proposed for 2018, the same as for 2017.

Expenditures

No specific expenditures are proposed. If there are no General Forum approved expenditures from the Contingency Budget during 2018 then the ending year balance will be approximately $25,000.

2018 Summary Budget – Executive Director’s Letter

BUILDING CAPITAL Fund Balance

The estimated 2018 COG Building Capital beginning year fund balance is $162,143 a $30,808 decrease compared to the 2017 budgeted amount of $192,951.

Revenues

Municipal contributions are proposed to total $31,400, a $12,400 increase from the $19,000 budgeted in 2017. In large measure this increase is recommended to fund three capital expenses not anticipated in previous Capital Improvement Plans for the building; the KINBER connection, replacement of a gas boiler, and a study of options and costs for providing back-up power to the COG building. The proposed transfers for the Centre Region Code Administration’s New Construction Program is $9,100, Existing Structure is $3,900, and Refuse/Recycling Program is $1,600.

Expenditures

$50,000 is proposed to connect the COG building to the KINBER network for the LAN/WAN connection to the internet. This is a new proposal identified in the 2018 to 2022 Capital Improvement Plan and was generally supported in the municipal comments provided in response to the 2018 COG Program Plan. The move to KINBER is expected to lower COG’s monthly costs for internet service, increase data speeds, and in the future allow for businesses near the COG building to connect to KINBER for economic development purposes. The payback period for this investment is approximately seven years. $5,000 is proposed to conduct a study to identify options and costs for emergency power service to the COG building. The priority areas are the Code Agency office suite, the IT service room, and the General Forum room. This is a new proposal identified in the 2018 to 2022 Capital Improvement Plan and was generally supported in the municipal comments provided in response to the 2018 COG Program Plan with the understanding that the provision of emergency power to the building will require action from the General Forum as part of the 2019 budget process. $20,000 is proposed to replace the gas boiler for the COG building. It does not function and repair parts are not available. This is a new proposal identified in the 2018 to 2022 Capital Improvement Plan and was generally supported in the municipal comments provided in response to the 2018 COG Program Plan. $12,500 is proposed to replace the 15 year old chairs in the forum room. 25 chairs will be purchased through a cooperative bidding contract. This is an expense anticipated in the 2018 to 2022 Capital Improvement Plan.

2018 Summary Budget – Executive Director’s Letter

MEDICAL INSURANCE RESERVE BUDGET Fund Balance

The estimated 2018 Medical Insurance Reserve Fund’s beginning year fund balance is $464,418 compared to the 2017 budgeted amount of $427,219. The increase is due to an unbudgeted $147,665 health insurance reimbursement the COG received for its 2016 medical costs.

Revenues

Income for this budget is based on reimbursements from the Pennsylvania Municipal Health Insurance Cooperative (PMHIC) that occur when the health insurance premiums paid by the COG and its employees are greater than the expenses paid. A $25,000 reimbursement is anticipated for 2018. Because the insurance reimbursement is directly related to the COG’s staff health care expenses, a reimbursement is not guaranteed. Because of this possibility, a conservative approach has been taken with no reimbursements included in the annual budget. The $25,000 proposed for the 2018 budget is the first time a reimbursement has been projected. In the municipal comments on the 2018 Program Plan the suggestion was made that in the future this income estimate be based on a multi-year average. Staff will consider this recommendation for the 2019 budget.

Expenditures

Four expenditure items are proposed for 2018: $30,000 for the payment of unbudgeted costs due to unanticipated employee turnover or change in an employee’s insurance status (for example, an employee in midyear changing from single to family coverage); $2,500 for fees associated with the Affordable Care Act; $140,000 to offset increases in medical insurance premiums; and $15,300 for the employee wellness programs recommended by the COG Employee Relations Committee and considered by the Human Resources Committee. Included in the Employee Wellness Program is a $7,300 proposal that the COG reimburse employees up to $25 per month for their membership costs in programs that provide for physical activity and fitness (for example: gym memberships). Although this proposal was considered by the Human Resources Committee it was not authorized for implementation because the concept has not been fully developed by the Employee Relations Committee (ERC). The implementation of this program, if the ERC can work out the details, is contingent on the prior approval of the committee. The December 31, 2018 ending year balance is budgeted at $303,618. However, the 2018 ending year fund balance will be higher if COG receives a PMHIC reimbursement higher than $25,000 during 2018. Should COG not receive a PMHIC reimbursement in 2018 for the 2017 premium year, the budget’s remaining fund balance will be adequate to finance the four aforementioned costs for the 2019 budget year. In other words, this budget is adequately funded through 2020.

2018 Summary Budget – Executive Director’s Letter

UNEMPLOYMENT RESERVE BUDGET (THIS IS A NEW BUDGET PROPOSED TO BEGIN IN 2018) Item of Note

This is a new budget proposed to begin January 1, 2018. This Budget is proposed by the Finance Committee and the Finance Director as a way to track revenues and expenses associated with COG’s self-funded unemployment account. The COG has moved to a self-funded program because it is believed to be a less expensive way of financing unemployment insurance claims as required by the Commonwealth of Pennsylvania.

Fund Balance

The estimated 2018 Unemployment Reserve Budget beginning year fund balance is $57,348.

Revenues

This budget is funded through inter-fund transfers from the Administrative/Refuse and Recycling, Parks and Recreation Operating, Code Administration, Planning/CCMPO, Emergency Management/Fire, and Active Adult Center Budgets. Centre Region Parks and Recreation Authority and Schlow Centre Region Library employees are covered by PMAA and PSAB, respectively.

Expenditures

Based on historical experience, 2018 unemployment claims for the COG Agencies are anticipated to total $17,875.

FIRE PROTECTION OPERATING Fund Balance

The estimated 2018 Fire Protection Operating Budget beginning year fund balance is $55,154 compared to the 2017 budgeted amount of $61,584, a decrease of $6,430.

Personnel

As proposed in the 2018 Program Plan, the position of Equipment Technician is included in the Detailed Budget. The employee would be responsible for the calibration, maintenance and repair of equipment, procuring service and parts for equipment and the three fire stations, and transporting equipment among the stations. Compensation and benefits for this position are estimated to total $66,794.

Revenues

Municipal contributions are proposed to increase from $902,951 (2017) to $1,019,262 (2018), a change of $116,311 (12.9%). Contributions from Penn State University are proposed to change from $89,653 (2017) to $101,201 (2018) the same percentage change as for the municipalities. The University contribution represents 9% of the total operating amount to be funded by the municipalities. In addition, Benner Township contributes $3,991 to the Fire Operating Budget because a portion of the Township is protected by the Centre Region program.

2018 Summary Budget – Executive Director’s Letter

Two changes account for about 85% of this increase: New Equipment Technician Position Increase in volunteer stipend Total change Expenditures

$66,794 31,600 $98,394

The main change in the proposed 2018 budget is a recommended increase in the annual stipend paid to the volunteers. It is proposed that the total stipend amount increase from $58,000 to $89,600, an increase of $31,600. This proposal will almost double the current annual maximum stipend amount by approximately $600. Per a recommendation from the Finance Committee, the Fire Director will be meeting with the Boards/Councils of the participating municipalities to discuss the long-term plans for increasing the stipend as to encourage volunteer recruitment and retention.

FIRE PROTECTION CAPITAL Fund Balance

The estimated 2018 Fire Protection Capital Budget beginning year fund balance is $725,863 compared to the 2017 budgeted amount of $236,061, an increase of $489,802. No apparatus or vehicles were purchased during 2017 so the capital funds contributed by the municipalities and Penn State University are accumulating to finance the future acquisition of fire apparatus in accordance with the 25 year depreciation schedule for the trucks and engines.

Revenues

The Centre Region municipalities contribute to two costs centers in the Fire Capital Budget – Apparatus Replacement and Building Improvement/Repairs. For 2018, Centre Region municipal contributions for Apparatus Replacement are budgeted at $262,744 (2018), an increase of $6,659 from the 2017 Budget. Contributions for Building Improvement/Repairs projects are proposed to increase from $31,726 (2017 Budget) to $32,551 (2018 Budget), a change of $825. As the three fire stations age, additional funds are being requested for capital repair items. The following matrix identifies the combined capital costs for the regional fire protection program.

2018 Summary Budget – Executive Director’s Letter

Apparatus

Bldg Capital

Total

State College Borough

$67,895

$8,411

$76,306

College Township

48,745

6,039

54,784

Ferguson Township

81,137

10,052

91,189

Patton Township

64,967

8,049

73,016

Total

$262,744

$32,551

$295,295

During 2018 it is proposed that Penn State University contributes $87,456 (a $2,216 increase) to apparatus purchases and $3,232 (an $82 increase) to building capital projects. This is the same percentage increase as the municipalities. In addition, Benner Township contributes $1,155 to both capital costs because a portion of the Township is protected by the Centre Region Fire program. Capital

$57,000 is proposed to replace the 2005 Chevy pick-up truck. The specifications for this vehicle have not been finalized but it is anticipated to have a lift gate and utility body. The COG Capital Improvement Plan identifies the replacement of the Command Unit, a 2013 Chevy Tahoe, used by the volunteer Fire Chief. This vehicle is in excellent shape and replacement in 2018 is not recommended. $20,000 is proposed to replace the rooftop HVAC units at the Patton Township fire station.

EMERGENCY MANAGEMENT OPERATING Fund Balance

The estimated 2018 Centre Region Emergency Management Operating Budget’s beginning year fund balance is $35,495 compared to the 2017 budgeted amount of $31,500, an increase of $3,995.

Personnel

No personnel changes are proposed. It is recommended that, similar to 2017, there be a 300 hour Summer Internship position at a compensation and benefit cost of $4,127.

Revenues

Municipal contributions are budgeted at $126,830, an $840 increase from the $125,990 budgeted for 2017.

2018 Summary Budget – Executive Director’s Letter

Expenditures

No significant expenditure changes are proposed.

Capital

The January 1, 2018 Committed Fund Balance for capital items are proposed to decrease from $29,000 (January 1, 2017 Budget) to $20,500. These funds are designated to finance the replacement of the Coordinator’s vehicle and future training exercises. The Coordinator proposes that the EM Budget annually contain funding for future training exercises as to avoid budget fluctuations when one is proposed. The purpose of this change is to “smooth” out requests for municipal operating funds for training programs instead of having periodic hikes in them.

EMERGENCY MANAGEMENT CONTINGENCY Fund Balance

The estimated January 1, 2018 fund balance for the Emergency Management Contingency Budget is $108,910 compared to $106,519, an increase of $2,391 from the 2017 budgeted amount.

Revenues

$1,165 in municipal contributions are proposed for 2018 compared to $1,699 for 2017. As prescribed by the Articles of Agreement for the Emergency Management Program, municipal contributions to this budget are based on the annual change in the CPI-U. This adjustment is annually and applied to the $100,000 original investment the municipalities made to this budget when it was established.

Expenditures

No specific expenditures are proposed. These funds are designated for the Emergency Management Coordinator to use in the event of a declared emergency and public safety and property are in immediate danger.

CODES – NEW CONSTRUCTION Fund Balance

The estimated January 1, 2018 budgeted beginning year fund balance for the New Construction Budget is expected to be $3,763,980 compared to $3,752,850 budgeted for 2017 an increase of $11,130. The two components to the New Construction fund balance are described below: 

Committed Fund Balance Operations ($3,076,424) – This fund balance is used to finance Agency operations during slow construction periods such as the winter months and pay for unexpected expenses. It also offsets a permit revenue shortfall that may occur when permit revenues are projected but not received. For instance, when permit revenues are anticipated from a major commercial project and then the project is not constructed or when flow of permit fees is slower than anticipated because of project delays.

2018 Summary Budget – Executive Director’s Letter

There were several municipal Program Plan comments that expressed concern about the high level of committed fund balance for operations. In response it is proposed that the cost of a building permit be reduced by approximately 7.7% from 2017 to 2018. This is accomplished by changing the multiplier that is used to calculate the cost of a building permit from .0065 to .0060. The permit multiplier in 2010 was .0099. 

Personnel

Committed Fund Balance Building Permits – This fund balance represents building permit fees that have been paid in advance without the plan review and inspection services being provided. By way of examples, the State College Area School District (SCASD) high school will take about three years to construct and many high rise projects have a construction period longer than a single year.

As identified in the 2018 COG Program Plan, the new position of Code Service Manager is proposed. This is a management level position that will focus on addressing customer service issues, helping customers through the permitting process, increasing public knowledge about the CRCA educational programming, strengthening the relationships with local builder and economic groups, and assisting the Agency Director in identifying opportunities to improve operations. At the time of budget preparation, the job description is under review by the Human Resource Committee and the Public Safety Committee. That annualized wage and benefit cost of this position is budgeted to be $100,017. At the time of budget preparation, a wage survey is being conducted by a consultant to compare the pay bands of Centre Region Code Agency with those of other comparable organizations. This survey will not be completed for several months and will require the review of the Human Resources Committee. General Forum action may be required to adjust the salary schedule, if necessary. In anticipation that wage adjustment may be approved, $5,000 is included in the Merit Pay/Achievement line item in the New Construction Budget.

Revenues

Income from building permit fees is anticipated to decrease from $1,035,000 (2017) to $1,022,000 (2018) a reduction of $13,000. This lower estimate does not anticipate a slower construction year. The current high level of construction is expected to continue from 2017 into 2018 and probably beyond. Instead the decrease is attributable to proposed 7.7% reduction in the cost of a new construction permit. It should be noted that the value of building construction in any particular year is one of the most difficult revenue estimates to make in local government due to the uncontrollable factors involved; such as changes in interest rates, shifts in market demand, and the phasing of the construction project.

Expenditures

Building rent is projected to increase from $47,706 to $59,633, a change of $11,927. This higher amount is due to the Code Agency renting additional space in the COG building. The additional space is in the rear of the Planning Agency Office where the GIS mapping area currently is located. It is recommended that this area be

2018 Summary Budget – Executive Director’s Letter

renovated and used to house three CRCA employees. There will be a corresponding decline in the rental costs for the Planning Agency. This move of Code Agency personnel will allow for the Code Service Manager to have a private office near the front office counter – closer to the customers. Because the position will be supervisory in nature and will involve meetings with residents that may be confidential in nature, an individual office is proposed. $28,000 is proposed to retain the services of an IT consultant to identify and evaluate options and costs to the CRCA’s current software. In 2017 a meeting was held with the member municipalities to discuss the functioning and future vendor support of current software package used by the agency and the municipalities. It was agreed that a wide evaluation of alternative software packages and providers should be made. A $6,000 reimbursement to the Office of Administration is proposed for costs to conduct a customer satisfaction survey of individuals who received a building permit in 2017. CODES – EXISTING STRUCTURES Fund Balance

The estimated January 1, 2018 budgeted beginning year fund balance for the Existing Construction Budget is expected to be $214,315 compared to $155,256 budgeted for 2017, an increase of $59,059.

Personnel

As identified in the 2018 COG Program Plan it is proposed that a part-time Staff Assistant (30 hours per week) position be changed to full time status. This change is recommended to provide additional support to the field staff, assist with data entry, provide better customer service, and serve as back-up to the Permit Technician when that employee is out of the office. The estimated cost of this change is about $8,000. At the time of budget preparation, a wage survey is being conducted by a consultant to compare the pay bands of Centre Region Code Agency with other those of other comparable organizations. This survey will not be completed for several months and will require the review of the Human Resources Committee. General Forum action may be required to adjust the salary schedule, if necessary. In anticipation that wage adjustment may be approved, $15,000 is included in the Merit Pay/Achievement line item in the Existing Structures Budget.

Revenues

Rental housing permit fees are expected to total $773,400 during 2018, a $10,411 increase from the 2017 budgeted amount. This change is attributable to additional rental housing units being brought to market. The $37 annual cost of a typical rental housing permit is proposed to remain unchanged from 2017 to 2018. In several municipalities, property owners pay more than this amount for a rental housing permit because of

2018 Summary Budget – Executive Director’s Letter

additional fees imposed by the municipality for the ordinance, health and zoning enforcement services it provides. These payments are collected by the CRCA and then forwarded to the municipalities. The costs of fire permit fees are proposed to remain unchanged from 2017 to 2018. Fire permits costs vary by structure in accordance with the size of the structures and the hazards present. Expenditures

$12,000 is proposed to retain the services of an IT consultant to identify and evaluate options and costs to the CRCA’s current software. In 2017 a meeting was held with the member municipalities to discuss the functioning and future vendor support of current software package used by the Agency and the municipalities. It was agreed that a wide evaluation of alternative software packages and providers should be made.

CODES – CAPITAL Fund Balance

The estimated January 1, 2018 budgeted beginning year fund balance for the Codes Capital Budget is expected to be $75,896 compared to $50,790 budgeted for 2017, an increase of $25,106.

Revenues

There are two transfers proposed from the New Construction and Existing Structures budgets into the CRCA Capital Budget for 2018: $182,000 (New Construction) and $45,000 (Existing Structures).

Expenditures

$150,000 is proposed for office renovations. There are two components to this project. The first element is to create an office for the Code Service Manager. It is recommended that the new employee have a private office near the front office counter – closer to the customers. Because the position will be supervisory in nature and will involve meetings with residents that may be confidential in nature, an individual office is proposed. The second element is the relocation of three CRCA personnel to the rear of the Centre Regional Planning Agency Office near the current location of the GIS planner. Approximately 608 square feet of office space would be developed. The projected renovation costs also includes the relocation of the GIS Planner to an existing underutilized office and an upgrade of the front office and conference room that would also be made available to CRCA meetings. $5,000 is designated to conduct a study for identifying the options and costs for installing electric recharging stations for the vehicles used by the Code Agency. This study is proposed in response to a recommendation received as a municipal comment to the 2018 Program Plan. $4,000 is proposed to install lighting fixtures in the building the Code Agency uses to store its fire training trailers and other equipment. The fixtures would be powered by the generator in the trailer thereby avoiding the expense of connecting to the West Penn Power grid.

2018 Summary Budget – Executive Director’s Letter

LIBRARY OPERATING BUDGET Item of Note

During its February 27, 2017 meeting the General Forum approved a revised formula to allocate the costs for the regional library program. The motion adopted by the General Forum is: “That the General Forum, as recommended by the Finance Committee, amend the Library funding formula utilized by the Centre Region Council of Governments participating municipalities to allow for a three year smoothing mechanism to be added to the formula effective for the 2018 Centre Region Council of Governments Budget and over the life of the smoothing formula, municipalities will pay no more or less than they would have paid under direct assessment.”

Fund Balance

The estimated January 1, 2018 fund balance for the Library’s Operating Budget is $143,335 compared to 2017 budgeted fund balance of $173,625, a decrease of $30,290.

Personnel

No additional staffing positions are proposed. 2018 will be the third and final year of an initiative to bring the compensation rate for 13 Library Assistants to the minimum starting rate for the same full-time staff position ($13.36/hour). This adjustment has been endorsed by the COG Human Resources Committee. The estimated cost of this final change is approximately $2,000.

Revenues

State Aid from the Commonwealth of Pennsylvania is expected to total $206,999, no change from 2017. For the 2009 budget year state aid provided to the library totaled $294,122. Financial support from Centre County government is projected to total $159,500, no change from 2017. Municipal contributions are proposed to increase from $1,422,159 (2017 Budget) to $1,479,045 (2018 Budget), an increase of $56,886 (4.0%). It is important to note municipal contributions are allocated among the municipalities according to the number of library materials checked out to persons living in each of the municipalities. And as noted above in 2018, a new funding formula based on a three year average was used to assign shares. Contributions from the community are proposed to total $233,000, a $58,000 increase from the 2017 budgeted amount. The Library Board and staff have made fund raising a high priority and the projected increase in donations is indicative of their success in developing non-municipal revenue income.

Expenditures

With one exception, no significant expenditure changes are proposed for 2018. The investment for the purchase of new library materials is proposed to increase from $169,000 (2017) to $212,695 (2018).

2018 Summary Budget – Executive Director’s Letter

LIBRARY CAPITAL BUDGET Item of Note

A facility assessment and renovation plan will be conducted in late 2017. It will likely result in changes to the Library’s Capital Improvement Plan and its 2018 projects listed below. The facility assessment will identify conditions, recommend repairs, and project the lifespan of electrical, plumbing, HVAC and other virtual systems. A renovation plan will map out repairs and improvements to public and staff areas which have seen wear and tear and changing use.

Fund Balance

The estimated January 1, 2018 fund balance for the Library’s Capital Budget is $610,232 a $1,413 increase from the 2017 budgeted amount of $608,819.

Revenues

Municipal contributions to the Capital Budget are proposed to total $80,000 for 2018, no change from the 2017 amount. Budgeted community contributions are projected to increase from $76,550 (2017) to $78,225 (2018).

Capital

$319,000 in capital expenses are proposed for 2018 as identified in the draft 2018 to 2022 COG Capital Improvement Plan. The major proposals are: 

Carpeting Replacement - $80,000: Carpeting is worn and stained after 13 years of hard use and needs to be entirely replaced.



Renovations of Staff and Children’s Departments - $90,000 ($40,000 children’s area/$50,000 staff offices): A design plan to be completed in the latter part of 2017 will provide details and cost estimates for public and staff spaces throughout the building.



Computer and Network Replacements – $49,000: These are for regularly scheduled replacements of technology equipment as projected in a technology plan.



Remote Book Drops - $20,000: Schlow Library maintains 7 remote book returns throughout the Centre Region. Two of the heaviest used outdoor metal bins need replacement in 2018.



Website Upgrades and Fixes - $20,000: Annual security and structural changes are anticipated for the “Virtual Branch” Library website, which accesses confidential patron information, credit card transactions, borrowing records, event registrations, and more.



Repainting (Interior) - $10,000: Areas that will not be renovated are ready for a fresh coat of paint in the library’s 13th year.

2018 Summary Budget – Executive Director’s Letter

CENTRE REGIONAL PLANNING AGENCY Fund Balance

The estimated January 1, 2018 fund balance for the Centre Regional Planning Agency is $80,014 compared to 2017 budgeted fund balance of $72,550, an increase of $7,464. Much of the fund balance during the last two years is attributable to staff turnover. Of the 2018 fund balance $7,156 is designated to replace items in the Agency’s Capital Improvement Plan.

Personnel

No personnel changes are proposed for 2018. At the end of 2017, a part-time Staff Assistant position, part-time Planner and a pending AmeriCorps position were combined into a single Sustainability Planner position as recommended by the COG Public Services and Environmental Committee.

Revenues

The 2018 CRPA budget anticipated a $15,000 payment from the University Area Joint to offset Agency costs for services that benefit the UAJA especially in the area of updates to the Act 537 Sewage Facility Plan. Municipal contributions for the regional and local planning are proposed to total $571,054, a $10,858 (1.9%) increase from the $560,196 that was budgeted for 2017. The individual costs of the two planning programs are: 

Local Planning Program (College, Halfmoon, Harris and Patton Townships) is estimated to total $285,724 ($296,509 for 2017).



Regional Planning Program (all six Centre Region municipalities) is expected to be $285,330 ($263,687) for 2017).

The requested reimbursement from Centre County government to the CRPA is $129,000, a $2,500 increase from the 2017 budgeted amount. The request has not been approved by the County October 15, 2017. Expenditures

Capital

$7,250 is proposed to replace one laptop computer for a Planner and to replace the plotter that is used to make large maps.

2018 Summary Budget – Executive Director’s Letter

CENTRE COUNTY METROPOLITAN PLANNING ORGANIZATION (CCMPO) Fund Balance

The estimated January 1, 2018 fund balance for the Centre County Metropolitan Planning Organization is $72,230 compared to 2017 budgeted fund balance of $35,739 an increase of $36,491. This increase is due to a combination of factors: staff turn-over, timing of state grants, and lower than anticipated pension costs because of the receipt of state aid. Of the 2018 fund balance $7,156 is designated to replacement items in the Capital Improvement Plan.

Personnel

No additional staffing positions are proposed.

Revenues

Centre Region municipal contributions are proposed to total $121,787, a $5,329 (4.2%) decrease from the $127,116 budgeted in 2017. PennDOT base level of support provided to the CCMPO is estimated at $265,000, about the same as 2017. Centre County’s cash contribution to the CCMPO is estimated at $31,926, In addition, Centre County funds the compensation and benefit costs of a full-time transportation planner who works in the Centre County Planning Office. This brings the total value of the County’s contribution to $122,912. CATA is reducing its contribution to the CCMPO from $29,912 to $18,750. However, offsetting this reduction is that the pass through of federal transportation monies that the CCMPO made to CATA has stopped. The net effect of these two changes on the CCMPO is negligible.

Expenditures

No significant expenditure changes are proposed for 2018. Building rental, maintenance, and utility costs will be less in 2018 than 2019 because 608 square feet of the Planning Agency’s suite will be reassigned for use by the Code Agency. $12,000 is proposed to update the travel demand model and to renew the licenses for that model.

Capital

$8,150 is proposed to replace the nine year old plotter ($3,150) that is used to make maps and to update the software for the traffic counters ($5,000).

2018 Summary Budget – Executive Director’s Letter

PARKS AND RECREATION OPERATING Item of Note

The Operating Budget for Centre Region Parks and Recreation Agency has been reorganized so comparisons between years will be more difficult for the 2018 budget. Previously, all revenues and components were consolidated into one Operating Budget. This made it difficult to identify the costs of different functions within the budget. Beginning in 2018, it is proposed that the Operating Budget has five components – Parks Maintenance, Concessions, Summer Camps, Parks Programs and Parks and Administrative Services. Looking ahead, the new format should make it easier for municipal and COG officials to identify where revenues come from and how they are applied and what is the cost of major service areas.

Fund Balance

The estimated January 1, 2018 fund balance for the Centre Region Parks and Recreation Operating Budget is $298,652 compared to 2017 budgeted fund balance of $222,845, an increase of $75,807. Of the 2018 fund balance $36,951 is designated the Gift for Parks program. In addition, the fund balance includes $18,750 for the preparation of the Parks and Recreation Regional Comprehensive Plan.

Personnel

No additional staffing positions are proposed.

Revenue

As identified above the 2018 Parks Operating Budget has five cost center instead of one as with previous budgets. The comparison of municipal contributions are shown below. Overall municipal contributions to the Parks Operating budget are proposed to decrease from $1,438,002 (2017) to $1,370,842 (2018), a reduction of $67,160 about 4.7%: 2017

2018

Parks Maintenance

$929,871

Parks Programming

206,944

Parks Administration

234,327

Total Municipal Contributions

$1,438,002

$1,370,842

Beginning in 2017, the CRPR started to provide in-house food concession services for Oak Hall Regional Park. This change has benefited both the customers and the Agency and will be continued during 2018. Concession revenues are estimated to total $23,000.

2018 Summary Budget – Executive Director’s Letter

Expenditures

$18,750 is proposed to fund the preparation of the Parks and Recreation Regional Comprehensive Plan. The 2018 appropriation will be combined with $18,750 that was carried over from the 2017 budget and match with a tentative $37,500 grant from Department of Conservation and Natural Resources (DCNR). The total anticipated project cost is $75,000, not including the investment of COG staff time. The General Forum established a Steering Committee to prepare a scope of work for the plan and to identify a recommended project consultant.

Capital

CRPR capital expenses are paid directly through the Parks Capital Equipment Budget (see below).

PARK CAPITAL EQUIPMENT Fund Balance

The estimated January 1, 2018 fund balance for the Centre Regional Parks and Recreation Parks Capital Equipment Budget is $254,215 compared to 2017 budgeted fund balance of $171,205, an increase of $83,010. Most of the increase is attributable to capital equipment items proposed for the maintenance of the fields and open spaces at Whitehall Road Regional Park. Because the park has not been constructed, the purchase of the proposed equipment has not occurred and the designated funding is being carried forward from 2017 to 2018.

Revenues

Municipal contributions are proposed to total $153,900, a decrease of $1,100 from the $155,000 budgeted amount for 2017.

Expenditures

$96,100 in capital expenses are proposed for 2018 as identified in the draft 2018 to 2022 COG Capital Improvement Plan that was reviewed by the Finance Committee and General Forum. The four major proposals are:    

$28,000 to replace a 2004 Chevy Silverado 4 x4 truck $21,200 to add turf top-dresser $16,000 to add ABI Field Pro Groomer $30,900 to replace 2008 Toro Groundmaster 328-D Trim Mower

AQUATICS OPERATING Fund Balance

The estimated January 1, 2018 fund balance for the Centre Region Parks and Recreation Parks Aquatics Operating Budget is $108,629 compared to 2017 budgeted fund balance of $140,598, a decrease of $31,969.

2018 Summary Budget – Executive Director’s Letter

Personnel

No staffing changes are proposed.

Revenues

No municipal revenues are requested for 2018. Until the completion of the pool renewal project, the municipalities typically contributed over 20% of the budget for the Aquatics Program. Anticipated revenue from Park Forest and Welch Pools is estimated to total $471,900, a $7,050 increase from the $464,850 budgeted for 2017.

Expenditures

With one exception, no significant expenditure changes are proposed for 2018. A $12,100 expenditure is proposed to purchase ice cream and soda/water for the food concession stands at the two pools. Income from the sale of these items are expected to cover these costs. No transfer of funds between the Aquatics Operating Budget and the Pool Capital Budget is proposed for 2018.

POOLS CAPITAL Fund Balance

The estimated January 1, 2018 fund balance for the Centre Regional Parks and Recreation Parks Pools Capital Budget is $109,856 compared to 2017 budgeted fund balance of $85,992, an increase of $23,864.

Revenues

This Capital Budget proposes municipal contributions of $446,619 a $9,978 increase from the $436,641 budgeted for 2017 to repay debt for a borrowing. In 2008 with the support of the participating municipalities, the Centre Region Parks and Recreation Authority borrowed $7.9 million to renew and expand the two regional pools. Municipal contributions for capital improvements are proposed to total $37,500, a $2,000 decrease from 2017.

Expenditures

$10,500 is recommended to replace the diving board and deck furniture at Park Forest Pool. $17,000 is proposed to replace one of the UV disinfection systems that is not functioning properly at Welch Pool.

ACTIVE ADULT CENTER (formerly the Senior Center) Fund Balance

The estimated January 1, 2018 fund balance for the Centre Region Parks and Recreation Parks Active Adult Center is $49,611 compared to 2017 budgeted fund balance of $29,022, an increase of $20,589. Most of this increase is due reserves for the Phase II construction improvements to the center.

2018 Summary Budget â&#x20AC;&#x201C; Executive Directorâ&#x20AC;&#x2122;s Letter

Personnel

As discussed in the 2018 Program Plan, a new part-time position is proposed at an estimated combined compensation and benefit cost of $15,884. Primarily the employee would work from about 10:00 AM to 2:00 PM, the busiest time of day at the center because of the meals that are provided during those hours. This position was proposed in the 2017 Center Budget ($6,997 was approved by COG). The idea received municipal endorsement with the understanding that Centre County would fund 50% of the costs. The County did not agree with this proposal. The CRPR Director believes this position is important to customer service, safety, and meeting the operational needs of a growing number of people using the center. The position would assist with task such as greeting visitors, answering the telephone, helping to set-up/break down for programs, assist with meals and provide assistance to people that use the center. In addition, the position will help to achieve two deep leadership at the center when one of the full-time staff is away.

Revenues

The municipalities contribute to two cost centers in the Active Adult Center – Operating Expenses and a loan repayment for borrowing from Centre Region Code Administration. The purpose of the loan is to offset some of the costs for renovating the new center space in 2016. The $107,000 loan is payable over ten years at an interest rate of 1.5%. The annual debt service payment is $11,600 of which $5,000 is paid by Centre County through its Office of Aging. Municipal contributions towards operating costs are proposed to increase from $146,900 (2017) to $150,681 (2018) a change of $3,781 or 2.6%. However not all municipal shares are changing at the rate because the use of the center by Borough/Township resident changes from year to year. By way of example, in 2017 Harris Township’s share of the center’s operational costs was $4.34% and for 2018 it is 10.67%. 2018 Operational Contributions

2017 Operational Contributions

2018 Debt Repayment

2017 Debt Repayment

Municipal

$150,581

$146,900

$6,600

County

$93,547

$88,808

$5,000

For 2018, contributions from Centre County Office of Aging are proposed to increase from $85,309 to $93,547 an increase of $4,739. This request has not been approved as of October 15, 2017.

2018 Summary Budget – Executive Director’s Letter

$3,000 in donations is anticipated to assist in funding Phase II improvement projects at the center, a $1,000 increase from the 2017 budgeted amount. Expenditures

With the exception of the proposed part-time Staff Assistant, 2018 operational costs at the center are about the same as for 2017.

Capital

No major capital improvements are proposed for 2018. However, if donations are received that allow for the Phase II projects to advance (for example - the room partitions, signage, electrical upgrades) then there may be capital expenditures in 2018.

REGIONAL NATURE CENTER â&#x20AC;&#x201C; OPERATING Fund Balance

The estimated January 1, 2018 fund balance for the Centre Region Parks and Recreation Parks Millbrook Marsh Nature Center Operating Budget is $45,999 compared to 2017 budgeted fund balance of $13,768 a decrease of $32,231.

Personnel

No additional positions are proposed.

Revenues

Municipal shares for 2018 are proposed to total $78,969 a decrease of $4,255 from the 2017 appropriation of $83,224. A combination of factors contribute to this decrease: lower than expected costs for the Defined Pension Contribution program because of the receipt of state aid, no expenditures for overtime, and a higher than anticipated actual 2017 beginning year fund balance. Program fees are estimated to total $74,120 (2018), about the same as the 2017 budgeted amount. Income from facility rentals (the Education Building and the Barn) and program fees are projected to total $87,120 compared to $84,435 budgeted for 2017, an increase of $2,685. Operational donations for operational expenses are expected to total $40,000 in 2018 compared to the 2017 budgeted amount of $64,875. The 2018 estimate is reflective of the actual donations received in the past. Community donations are difficult to accurately estimate.

Expenditures

Non personnel 2018 estimated operating costs at the Nature Center are about the same as for 2017. During 2018 these costs are projected to total $67,211 compared to $64,021 for 2017, an increase of $3,190.

2018 Summary Budget â&#x20AC;&#x201C; Executive Directorâ&#x20AC;&#x2122;s Letter

NATURE CENTER – CAPITAL Fund Balance

The estimated January 1, 2018 fund balance for the Centre Region Parks and Recreation Parks Millbrook Marsh Nature Center Capital Budget is $305,630 compared to 2017 budgeted fund balance of $10,198. The increase is due to contributions received for the Phase II construction of the Spring Creek Education Building.

Revenues

A $25,000 municipal contribution to the Nature Center Capital Budget is proposed for 2018. This is the first request for municipal contributions to this budget. Previously, the Capital Budget has been focused on funding the construction of the new structures at the Nature Center primarily through the use of public donations. However there are existing capital items that require immediate attention. The $25,000 proposed allocation for 2018 will be used to repair the sprinkler system in the barn. $407,500 in Capital Campaign donations are proposed in the 2018 COG budget compared to the $300,000 budgeted amount for 2017. CRPR staff have applied for a $355,000 grant from the Pennsylvania Department of Conservation and Natural Resources to help with the funding of the Phase II construction of the Spring Creek Education Building.

Expenditures

As identified in the 2018 to 2022 Capital Improvement Plan $34,000 is proposed to replace the dry sprinkler lines in the barn. As is common with these types of systems in an unheated building, the lines are corroding and have developed small pin-hole leaks that are becoming expensive to maintain. $100,000 is proposed for architectural fees associated with the preparation, design, and construction documents for the Phase II Education Building project.

REGIONAL PARKS CAPITAL Fund Balance

The estimated January 1, 2018 fund balance for the Centre Region Parks and Recreation Parks Regional Parks Budget is $2,156,021 compared to 2017 budgeted fund balance of $1,943,481, an increase of $212,540. There are two components to the Regional Parks Capital Budget’s beginning year fund balance: 

Restricted – Gifts for Parks: This fund balance is used to receive public donations for the regional parks program. For example, contributions for the My Veteran/My Hero program are contained in this fund balance. The January 1, 2018 budgeted fund balance is $48,143 ($47,232 budgeted 2017).

2018 Summary Budget – Executive Director’s Letter



Revenues

Unrestricted – Regional Parks: This fund balance is designated to finance the expenses associated with constructing Whitehall Road Regional Park. The January 1, 2018 budgeted fund balance is $2,107,878 compared to $1,896,249 budgeted for 2017).

Municipal contributions for funding the principal and interest expenses relating to the 2011 borrowing (renegotiated in 2015 and 2017) for the development of the regional parks is estimated to total $350,000, a $12,500 decrease from the $362,500 budgeted for 2017. Municipal contributions to repay a loan from the Centre Region Code Administration are projected to total $20,380. The loan proceeds were used to enhance the storm-water management facilities at Oak Hall Regional Park and to address storm-water run-off damage that occurred because of rain storms in mid-2014. $19,800 is estimated for rental income from the leasing the house at Oak Hall Regional Park and farmlands at Whitehall Road Regional Park. The Oak Hall rental house was renovated in 2016/2017 and is currently rented.

Expenditures

$1,150,000 is proposed for the preparation of land development plans, studies, and bidding documents relating to the development of Whitehall Road Regional Park during 2018. There are a range of questions that need to be answered before this project advances. It is important to note that during its May 22, 2017 meeting the General Forum approved the following motion relating to the loan for the Whitehall Road Regional Park: “That the General Forum, as recommended by the Finance Committee and Parks Capital Committee, adopt Resolution 2017-2 asking the Centre Region Parks and Recreation Authority to modify the regional parks loan with Fulton Bank in accordance with its May 1, 2017 proposal. Furthermore, this action is approved with the stipulation that if construction contracts are not executed within a period of time not to exceed one year then the CRPR Authority shall discuss the project with the General Forum prior to proceeding.”

2018 Summary Budget – Executive Director’s Letter

IN CLOSING This Summary Budget is directly based on the Detailed Budget that was reviewed, revised and endorsed by the COG Finance Committee during the budget review sessions it held in September and October. With this transmittal letter, the 2018 Summary Budget is submitted to the General Forum for its consideration beginning at its October 23, 2017 meeting. The General Forum will forward the Summary Budget to the Centre Region municipalities for comment. These municipal responses will be distributed to the Finance Committee for review and resolution during its meeting in November 2017. The revisions recommended by the Committee are shared with the General Forum at its November 27, 2017 meeting. The revised Summary Budget, as endorsed by the General Forum, is then referred to municipal governing bodies for adoption during their meetings in December. The COG Staff appreciates the investment of time that the Finance Committee members and the municipal staffs make in reviewing and providing comments on the draft 2018 Detailed COG Budget. In every sense, the COG budget process is an open and inclusive team effort and the Agency Directors and I welcome and encourage your thoughts, ideas, and concerns. Respectfully submitted,

James C. Steff Executive Director

2018 Summary Budget â&#x20AC;&#x201C; Executive Directorâ&#x20AC;&#x2122;s Letter

BUDGET COMPARISONS PERCENTAGE SHARE OF TOTAL COG BUDGET – The following charts identify each of COG’s programs share of the COG Budget as well as the total budget amounts during the last four (4) years. Program

2015

2016

2017

2018

Parks & Recreation

44.9%

$12,542,692

30.3%

$ 6,441,550

40.9%

$ 9,945,293

33.7%

$7,864,272

Library

10.9%

3,046,753

14.2%

3,012,523

12.6%

3,055,489

13.5%

$3,147,572

Code Administration

26.2%

7,307,304

31.8%

6,750,313

25.7%

6,241,376

27.9%

$6,495,955

Fire Protection, EM

9.2%

2,568,103

11.2%

2,377,253

8.5%

2,055,109

11.1%

$2,587,028

CRPA/CCMPO

4.7%

1,315,953

6.2%

1,321,874

5.7%

1,385,124

6.0%

$1,395,747

Administration

4.1%

1,156,400

6.3%

1,348,064

6.6%

1,614,547

7.8%

$1,805,467

100.0%

$27,937,205

100%

$21,251,577

100%

$24,296,938

100.0%

$23,296,041

TOTAL

PENNSYLVANIA STATE UNIVERSITY CONTRIBUTIONS Contributions from the Pennsylvania State University and private donations are assigned to user fees and other revenues. For 2018, proposed University contributions to the Regional Fire Protection Program are identified below. The University’s contributions change by the same percentage as do the municipalities’. The University contributes 9% of the Operating and Building Capital Budget and 24.9% of the apparatus Capital Budget. In addition, the University makes a signification contribution to the Fire Protection Program by allowing its staff to serve as volunteer firefighters during working hours. Regional Service

2013

2014

2015

2016

2017

2018

Fire Operations

$68,056

$75,767

$85,449

$88,658

$89,653

$101,201

Fire Capital

83,080

83,980

85,144

88,390

$90,688

$151,136

$158,847

$169,429

$173,802

$178,043

$191,889

TOTAL

2018 Summary Budget – Budget Comparisons

TRENDS IN COG REVENUE SOURCES The following matrix shows how the sources of COG funding have changed over the last 8 years. Much of the change is attributable to the debt to fund the renewal of the Park Forest and Welch Swimming Pools, the establishment of the capital budgets for the Regional Parks and Millbrook Marsh Nature Center, and the increase in the size of the Code Agency:

2011

Municipal Contributions $5,373,324

2012

$5,647,726

$5,863,959

$1,044,063

$6,861,769

$19,417,517

2013

$6,012,182

$6,022,720

$1,166,423

$8,789,031

$21,995,356

2014

$6,202,337

$6,600,363

$1,236,423

$10,780,884

$24,820,007

2015

$6,323,450

$8,897,966

$1,367,829

$11,347,960

$27,937,205

2016

$6,479,285

$8,556,653

$1,249,503

$4,966,136

$21,251,577

2017

$6,605,486

$8,735,672

$1,049,651

$7,906,129

$24,296,938

2018

$6,762,626

$10,137,928

$1,015,708

$5,379,779

$23,296,041

Year

2018 Summary Budget â&#x20AC;&#x201C; Budget Comparisons

Fund Balance

Grants

$4,820,442

$1,384,335

User Fees & Other Revenues $3,078,516

Total COG Budget $14,656,617

2018 Summary Budget â&#x20AC;&#x201C; Budget Comparisons

COG FORMULA A variety of formulas are used to distribute the costs for COG programs. The most common method of assigning costs is based on the COG Formula. This formula contains three equally weighted elements: population served (less PSU students), assessed value, and earned income tax. Prior to 2010, the earned income tax was adjusted by a per capita income multiplier. Since this multiplier is no longer used, a three year average will be applied for the formula calculations in 2010, 2011, and 2012 to ease the transition. The COG Formula used for 2010 is the average of the formulas used in 2008 and 2009 and the calculated 2010 formula. Except for the Regional Library, when all six municipalities participate in a COG program (CRPA, Regional Planning, COG Administration, Emergency Management, Contingency Fund), costs are assigned according to the standard COG Funding Formula as follows:

COG Formula – Municipal Percentages 2011

2012

2013

2014

2015

2016

2017

2018

State College Borough

22.33%

21.86%

22.04%

22.13%

22.25%

22.14%

21.19%

22.34%

College Township

17.25%

16.99%

16.89%

16.62%

16.44%

16.42%

16.31%

16.06%

Ferguson Township

26.69%

26.63%

26.51%

26.34%

26.79%

28.20%

26.69%

Halfmoon Township

4.70%

4.72%

4.37%

4.41%

4.40%

4.28%

4.14%

4.25%

Harris Township

8.95%

9.02%

9.06%

9.13%

9.23%

9.19%

9.30%

Patton Township

20.08%

20.78%

21.13%

21.37%

21.44%

21.14%

20.97%

21.36%

TOTAL

100.00%

100.00% 100.00%

100.00%

100.0%

Certain programs (CRPR, and Regional Fire Protection) use a variation of the regular COG Formula to assign costs. In these cases, the formula is revised to reflect either less than six municipal members and/or the addition of a municipality that is not a member of the Centre Region COG (i.e., Benner Township). The Regional Library, Senior Citizens’ Center, and the CRPA Local Planning Program utilize user information to determine the level of municipal contributions. For example, a municipality’s share of the Senior Citizens’ Center Budget is based on the number of individual participants visiting the Center. The Schlow Library is requesting a 4% increase in municipal contributions ($56,886) for 2018. Individual municipal shares vary slightly each year because of changes in library use. Based on the General Forum’s action earlier in 2017, shares are now determined by a municipality’s proportion of the total Centre Region circulation (number of items checked out) during a three year period (7/1/14-6/30/17). The Library's computer system tracks the number of items checked out to persons living in each of the municipalities that the Library serves and establishes 2018 Summary Budget – Budget Comparisons

the proportions for the year. The percentages below do not include checkouts by Penn State on-campus students. The PA Library Code states that municipal funds to public libraries may not decline from one year to the next.

Municipal Percentages of Library Budget 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

State College Borough

32.74%

32.89%

32.28%

31.45%

31.10%

29.74%

30.21%

30.32%

29.78%

29.60%

College Township

11.37%

10.98%

11.45%

12.07%

12.86%

12.47%

12.33%

13.22%

13.92%

13.85%

Ferguson Township

28.59%

28.46%

28.19%

28.55%

27.64%

28.71%

28.79%

29.05%

28.53%

28.79%

Halfmoon Township

3.78%

3.41%

2.99%

2.95%

2.69%

2.54%

2.53%

2.95%

3.32%

3.21%

Harris Township

6.65%

6.82%

6.03%

6.37%

7.24%

7.27%

7.08%

6.22%

6.43%

6.67%

Patton Township

16.87%

17.44%

18.41%

18.61%

18.47%

19.35%

19.06%

18.24%

18.02%

17.88%

100.00% 100.00% 100.00%

100.0%

TOTAL

Municipal contributions to the Active Adult Center Budget are proposed to total $157,281, a 2.46% increase from 2017. The Municipal shares are based on Unique Persons Served (UPS) or the residency of individual Active Adult Center patrons and not the number of visits to the Center or attendance at events.

Municipal Percentages of Active Adult Center Budget 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

State College Borough

38.29%

35.12%

31.29%

32.11%

37.23%

44.15%

36.99%

35.48%

26.16%

24.22%

College Township

22.21%

24.34%

25.46%

30.87%

32.11%

29.88%

30.40%

29.29%

29.00%

30.21%

Ferguson Township

19.69%

20.62%

18.70%

16.02%

12.10%

10.95%

12.92%

13.79%

27.80%

23.70%

Harris Township

3.10%

5.37%

7.22%

5.64%

4.41%

3.10%

6.32%

8.72%

4.34%

10.67%

Patton Township

16.71%

14.55%

17.33%

15.36%

14.15%

11.92%

13.37%

12.72%

12.70%

11.20%

TOTAL

100.0%

The CCMPO utilizes a formula that consists of roadway lane miles (non-Interstate state roads and local federal aid routes), assessed real estate value, and population (less PSU on-campus and Rockview inmates). 2018 Summary Budget â&#x20AC;&#x201C; Budget Comparisons

The COG Formula takes into consideration that the three formula factors change at different rates among the municipalities over time. A municipality whose tax base and population are growing will be allocated a larger share over time; likewise, a municipality whose population and tax base are decreasing will receive a smaller share. MUNICIPAL CREDITS FOR COG HOUSING COSTS During its May 29, 2001 meeting, the General Forum approved the financing terms (5.6% interest, 25 year term) that were proposed by the Finance Committee for the construction of a COG office building. The funding arrangement assumed that $2.5 million needed to be financed through municipal contributions. Two provisions contained in the agreement are:  Each Centre Region municipality will have the option to contribute to the building project in any amount from zero to a maximum based on its share of the 2002 COG Formula used to allocate costs for the Office of Administration.  The annual rent payments that are made to the COG municipalities will be distributed according to the shares purchased. For current COG members, these payments will be issued in quarterly installments. For the period from January 1 to December 31, 2018, it is estimated that the credit will be $185,195 (15,826 square feet at $11.70 per foot). Because all of the municipalities opted to purchase shares in the building that equaled their percentage share of the COG Administration Budget in 2002, the credit is allocated as illustrated in the following table below:

2002 % Share of COG Building Ownership

2018 Payment by Municipality

State College Borough Ferguson Township Patton Township College Township Harris Township Halfmoon Township

27.84% 23.13% 18.99% 16.71% 9.39% 3.94%

$51,558 42,836 35,168 30,946 17,390 7,297

Total

100.00%

$185,195

Municipality

2018 Summary Budget – Budget Comparisons

COG OFFICE OF ADMINISTRATION MISSION The mission of the Office of Administration is the overall management and coordination of all Agencies of the Centre Region Council of Governments, as directed by the General Forum and established by ordinance, resolution, or agreement. POLICY OVERSIGHT The Executive Committee provides policy oversight for the COG Office of Administration, as established in the Articles of Agreement for the Centre Region COG. COG Executive Committee – 2017 Tom Daubert, Chair Danelle Del Corso, Vice Chair Elliot Abrams Richard Francke Bruce Lord Steve Miller

State College Borough Halfmoon Township Patton Township College Township Harris Township Ferguson Township

The Executive Committee has the following responsibilities: 

To nominate officers to the General Forum for approval and election.



To establish the agenda for the General Forum meetings.

2018 Summary Budget – Office of Administration



To evaluate the work performance of the Executive Director on an annual basis.



To refer work tasks and questions to the appropriate COG Committee for resolution and response.

STAFF SUPPORT The General Forum established the position of Executive Director to direct, supervise, and administer the Agencies and Programs of the COG in accordance with the policies adopted by the General Forum, except as otherwise provided for by ordinance and statute. The employment positions approved for the Office of Administration in 2017 are: Full-time: Executive Director Finance Director Finance Assistant Office Manager Human Resources Officer

The COG Office of Administration provides staff support to the following Committees: ▫ General ▫Forum Executive ▫ Finance

▫ Human Resources ▫ Public Safety ▫ Public Services & Environmental

Operational Committees: ▫

Managers’ Roundtable

▫▫

Steering Committee for the Parks and Recreation Public Safety Regional Comprehensive Plan

RRegionaAd Hoc Committees established by the General Forum

BUDGET

The Office of Administration Budget funds the overall management and coordination of all Agencies within the Centre Region Council of Governments. The Office of Administration’s major areas of responsibility are: ensuring the implementation of the actions approved by the General Forum, budget preparation and financial services, human resources management, and staff support services for the General Forum and its standing and special Committees. FUNDING FORMULA The Office of Administration is funded primarily through municipal contributions that are allocated based on the COG funding formula that was approved by the General Forum during its June 22, 2009 meeting as annually updated.

2018 Summary Budget – Office of Administration

BUDGET HIGHLIGHTS In many ways the 2018 Budget for the COG Office of Administration is similar to 2017 Budget. During the last six years the Agency has undergone significant organizational changes including adding three new positions – Finance Director, Finance Assistant and Human Resources Officer. Concurrent with these staffing changes the Agency’s responsibilities expanded to include financial management, accounting services, benefit administration, and payroll preparation for all COG Agencies and an expanded role in budget preparation, and personnel management. These changes appear to be working well and are meeting the expectations of the Agency Directors, municipal officials, and COG auditors. For 2018 no staffing changes are proposed and there is only one proposed new expenditure - $12,000 to retain a consultant to update the COG Personnel Policy. Consequently, the Administrative Budget is relatively flat from 2017 to 2018 in terms of municipal contributions. PERSONNEL CHANGES The 2018 Detailed Budget does not propose any personnel changes for the Office of Administration. REVENUE 

The estimated January 1, 2018 beginning year fund balance for the Office of Administration is $62,429 compared to the 2017 budgeted balance of $48,369. Of the 2018 beginning year fund balance $20,000 is a carry-over from the 2017 Budget and is designated for the Information Technology

Study that was to be completed in 2017 but was delayed until 2018. 

For the fiscal year 2018, municipal contributions are budgeted at $396,277, an $8,080 increase (2.1%) from the $388,197 that was budgeted for 2017.



All COG Agencies receive their financial, investment and accounting services through the Office of Administration. During 2018, the Office of Administration will be reimbursed $129,000 by the COG Agencies for the personnel, software, and other costs it incurs to provide them with financial management services. Other Agency expenses included in these reimbursements are for risk management and pension administration services that are provided by State College Borough.



Centre Region Code Administration and the Regional Refuse and Recycling programs reimburse the Office of Administration for the human resource management and administrative support services they service. During 2018 these reimbursements are estimated to total $142,500.

applicable state and federal laws. The estimated project cost is $12,000. 

The Office of Administration will conduct a customer satisfaction survey for the Centre Region Code Administration Agency (CRCA). The survey will focus on the new construction program and will gauge permit holders opinions about the services they receive. A similar survey was conducted in 2015. The results from the 2015 and 2018 surveys will be compared to identify areas of strength and opportunities for improvement. The Office of Administration incurs additional postage, printing, and mailing costs and employee overtime expenses for this survey project. The CRCA will reimburse the Office of Administration $6,000 for its costs.



Employee medical costs have increased from $70,652 (2017) to $106,725 (2018) in large measure because the Office previously had staff who waived coverage or had single coverage. During 2018 the Administrative Office will not have personnel in either category.

EXPENDITURE ITEMS

CAPITAL ITEMS

Personnel and Operating expenses for the Office of Administration are expected to total $729,406, a $47,990 increase from the 2017 budget amount of $681,416. This increase in primarily due to the following:



As recommended by the Human Resources Committee and proposed in the 2018 Program Plan, the Office of Administration recommends that a consultant be retained to update the COG Personnel Policy and to conduct the related legal review for the purpose of ensuring compliance with 2018 Summary Budget – Office of Administration

Funds in the amount of $1,600 are proposed to purchase a lockable file cabinet for the Human Resources Officer and a chair for the Office Manager.

COMMITTED FUND BALANCE No funds are anticipated for a December 31, 2018 ending year fund balance for the COG Office of Administration Budget.

2018 Summary Budget â&#x20AC;&#x201C; Office of Administration

COG REGIONAL REFUSE AND RECYCLING PROGRAM MISSION The purpose of the Regional Refuse and Recycling Program is to promote public health, safety, and welfare, and to eliminate public health hazards, environmental pollution, and economic loss in the Centre Region through the collection, transportation, and disposal of residential, commercial, industrial, and institutional municipal solid waste. POLICY OVERSIGHT The COG Public Services and Environmental Committee provides policy oversight for the Regional Refuse and Recycling Program, which includes Benner, College, Ferguson, Harris, and Patton Townships. Public Services and Environmental Committee â&#x20AC;&#x201C; 2017 Dennis Hameister, Chair Carla Stilson, Vice Chair Jeff Luck Peter Buckland Jesse Barlow Barbara Spencer

Harris Township College Township Patton Township Ferguson Township State College Borough Halfmoon Township

STAFF SUPPORT Currently, two part-time staff positions are assigned to the Regional Refuse and Recycling Program. When these individuals

2018 Summary Budget â&#x20AC;&#x201C; Refuse and Recycling

are away from the office, Office of Administration staff provides support. Part-time: Refuse and Recycling Administrator Refuse and Recycling Assistant* * Position is funded through the Recycling Rebate and approved as an annual contract position to assist in the development of a Regional Organics Recycling Program.

PROGRAM BACKGROUND State Act 101 assigns responsibility for the collection, transport, and storage of residential refuse and recycling material generated within its boundaries to municipal government. In 1991, College, Ferguson, Harris and Patton Townships decided to provide residential refuse and recycling collection on a regional basis. To implement this decision, the Townships authorized the Centre Region COG to be their agent in conducting a competitive bidding process and administering the regional contract as awarded to the successful bidder. The COG has been able to secure reasonable rates for customers in the participating Townships since 1992 due to the competitive bidding process for the refuse and recycling contract. Three-year exclusive contracts were awarded to haulers in 1992, 1995, 1998, 2004, 2010, and 2015, with an option to extend the contracts since 1998. Beginning in 2010, the refuse and recycling contract has included Benner Township and its 1,700 households. On January 1, 2015, 45

a new contract began with Advanced Disposal to provide refuse and recycling collection services in the five participating townships for a five-year period through December 31, 2019.

Services associated with the Regional Refuse and Recycling Program include: 

Weekly refuse and recycling collection

The Regional Refuse and Recycling Program administered by the COG is an excellent example of how intergovernmental cooperation functions to provide the public with a higher level of service at a lower cost. Prior to the implementation of a regional contract, the typical monthly rate for weekly refuse collection was $20.50 and most of the municipalities did not provide recycling, bulk waste, or special Christmas tree collections.



Semi-annual bulk waste collections



Christmas tree collection



A hardship program for eligible customers



Customer advocacy in resolving problems with the hauler



Assistance to the hauler in recovering overdue customer payments

Twenty-four years later, the monthly rate for 8-bag regular refuse and recycling collection is $15.61. There is also an available low usage rate of $12.61 per month that allows for one 40-pound bag or canister to be disposed of per week, as well as the other services mentioned below.



Enforcement of municipal solid waste and recycling ordinances

The Recycle at Work Program, initiated in 2012, is a joint effort between the CCRRA, COG’s Refuse and Recycling Program, and the State College Borough Public Works Department. A strong commercial recycling program reinforces the commitment to maintain a high standard of environmental responsibility on which Centre Region residents pride themselves. SERVICES PROVIDED In 2018, the regional refuse and recycling contract covers approximately 15,200 households. The original 1992 contract provided service to approximately 7,800 households. The typical household generates approximately 1,500 pounds (0.75 ton) of refuse and 370 pounds (0.18 ton) of recyclable materials per year.

2018 Summary Budget – Refuse and Recycling

BUDGET The intent of the Regional Refuse and Recycling Program is to provide for the administration of the regional contract for the collection of refuse, bulk waste, and recyclable materials, to provide hauler support, and to improve commercial recycling in the five participating municipalities. The value of the five-year residential service contract for 20152019 is approximately $13.6 million dollars. The contractor provides an administrative fee to the COG equivalent to approximately 3% of the total contract price. Assistance is provided for customers who, due to financial difficulties, are unable to pay the contractor for the collection services as required by municipal ordinance in each of the participating townships.

REFUSE/RECYCLING MONTHLY RATE STRUCTURE



Annually, the Centre County Recycling and Refuse Authority (CCRRA) distributes a recycling rebate check to the COG that represents a percentage of the proceeds made by the sale of recycled materials because it is the entity responsible for administering the regional refuse and recycling contract for Benner, College, Ferguson, Harris, and Patton Townships. The CCRRA recycling rebate is calculated based on the tonnage recycled by the COG residents and the market prices of recyclable material. The fluctuation in the rebate amount over the past three years is due to the variation in market prices and is difficult to predict. Based on current recycling rates and weak market conditions, a conservative rebate amount of $15,000 is expected for 2018. The Public Services and Environmental Committee oversees the management of these funds and has approved of using the funds for (1) public recycling projects that benefit and educate residents to improve recycling in our community and (2) customer reimbursements to help offset rate increases.



The 2018 budget includes its third year of funding to support efforts to develop a Regional Organics Recycling Program, which was authorized by the General Forum at its September 28, 2015 meeting. During the upcoming year, recycling rebate funds received from the CCRRA will be used to fund the Refuse and Recycling Assistant position. The additional support is needed while the Refuse and Recycling Administrator focuses on the creation of the bid specifications and an educational outreach program. The proposed Regional Organics Recycling Program will consider residents’ demands, associated costs, and customer service issues in order to

The new 2015–2020 contract resulted in lower overall monthly rates for the refuse and recycling program. Monthly costs have decreased for refuse while increasing for recycling, which could be attributed to the tonnage of refuse decreasing and more waste being recycled. 2014 previous contract

2015-17

2018

8-Bag Curbside Refuse Service

$12.57

$11.99

Recycling Service

$3.15*

$3.62

Total 8-bag Refuse/Recycling

$15.72

$15.61

$15.61**

* In 2014, the rate for recycling was $3.25/month; however, it included a 10¢ customer rebate. The customer rebate was approved by The Public Services and Environmental Committee in order to offset fuel charge increases and is paid for through the annual recycling rebate received from the Centre County Recycling and Refuse Authority. ** The 2018 rate is likely to remain unchanged from the 2017 rate; however, it is not finalized until November of each year.

BUDGET HIGHLIGHTS 

The Refuse and Recycling Program is an enterprise fund. No municipal contributions have been required since its inception in 1992.

2018 Summary Budget – Refuse and Recycling

determine the best long term solution to the solid waste piece of sustainability in the region. 

The committed fund balance is expected to remain higher than normal with the expectation that these funds will be used to help offset costs that are needed to develop and implement a Regional Organics Recycling Program over the next several years with a “go-live” date during early 2020.

2018 Summary Budget – Refuse and Recycling

COG CONTINGENCY FUND BUDGET MISSION The purpose of the Contingency Fund Budget is to finance the COG’s fiscal obligations arising from emergency situations or special projects not provided for in the annual Agency budgets. POLICY OVERSIGHT For the last 44 years, all expenditures from the COG Contingency Fund Budget have required the approval of the General Forum upon recommendation of the Finance Committee, or should the situation warrant, the Executive Committee. Beginning in November the Finance Committee will discuss whether the Executive Director should be authorized to expend funds from the Budget without needing to obtain approval from two different groups of elected officials. STAFF SUPPORT The Contingency Fund is administered by the COG Office of Administration. PROGRAM BACKGROUND Because the COG Agencies normally operate with minimal cash reserves, the Contingency Fund is an essential component of the COG’s financial management system. It permits the agencies to adjust to unexpected developments while maintaining existing

2018 Summary Budget – Contingency Fund

service levels. Additionally, through the Contingency Fund’s allowance for unanticipated or unusual expenses, it stabilizes the level and need for municipal contributions during the course of the fiscal year. The Contingency Fund has been included in the COG Budget since at least 1973. From that year until 1984, it was set at 1% of the total COG Budget. In 1985, the General Forum set the balance of the Contingency Fund at 1% of the COG Budget, not including Agency fund balances, the Code Administration Budget, or special capital budgets such as Pools Capital, Library Capital, and Fire Capital. Except for the formula change in 1985, it does not appear that the General Forum adopted formal procedures for determining the level of municipal contributions to the Contingency Fund. During its 2000 budget review sessions, the COG Finance Committee recommended that the General Forum consider no additional municipal contributions to the Contingency Fund for 2000. This had the effect of “freezing” the fund at $26,380, the ending year balance for 1999. This fixed amount for the Contingency Fund Balance was approved by the General Forum in adopting the 2000 to 2009 COG Budgets. Recognizing that the COG Budget had increased during that ten year period and at the same time the overall level of COG fund balances had declined because of a downturn in the economy,

some municipal officials believed that the $26,380 threshold was too low. During its September 28, 2009 budget review meeting, the Finance Committee approved an increase in the threshold to the Contingency Fund to approximately $35,000. During its review sessions for the 2017 COG Budget the Finance Committee reviewed the current $35,000 threshold and concluded that experience indicates a Contingency Budget set at this amount is not justified. For the 2018 Budget the Committee recommends a $25,000 threshold.



In combination, the fund balance and interest revenue total $24,717, very close to the recommended budget threshold of $25,000. Consequently, no municipal contributions are recommended for 2018.

Expenditures: 

No expenditures are proposed for the 2018 Contingency Fund. The December 31, 2018 committed fund balance is anticipated to be $24,717.

BUDGET FUNDING FORMULA Municipal shares for the Contingency Fund are based on the revised COG formula that was approved by the General Forum during its June 22, 2009 meeting. BUDGET HIGHLIGHTS During 2017, three Contingency Budget expenditures were approved by the General Forum: $15,000 to obtain a “walking estimate” of the costs for connecting the six Centre Region municipalities and the COG to the KINBER fiber optic network and $2,000 as a partial local match that will enable SEDA-COG to conduct training programs on the installation of LED lighting in our area. These expenditures will not occur until 2018. Revenue: 

The estimated January 1, 2018 committed fund balance for the COG Contingency Fund is $24,597.



Interest revenue is budgeted at $120.

2018 Summary Budget – Contingency Fund

COG COG BUILDING CAPITAL FUND MISSION The COG Building Capital Fund is a sinking fund to finance the replacement of major capital components (e.g. roof, heat pumps) and operating systems of the COG Building. This Capital Budget protects the municipal investments in the COG Building and over time stabilizes their contributions for capital building items. POLICY OVERSIGHT The purpose of the COG Building Capital Budget is to provide a pool of funds for the General Forum to use to pay for building components and systems that may need to be replaced or upgraded. Each municipality owns a share of the COG Building, and the Agencies pay a rental fee to the municipalities based on the size of the area each is assigned (including a portion of the common space). Beginning in 2014, the COG Finance Committee was designated as the entity within the COG that is authorized to approve expenditures from the Building Capital Fund. Previously, expenditures required the approval of both the Finance Committee and the General Forum. As indicated in the 2014 COG Program Plan, it was believed that this degree of elected official oversight of the Building Capital Fund was excessive and there should be only one oversight body, the Finance Committee.

2018 Summary Budget â&#x20AC;&#x201C; COG Building Capital

COG Finance Committee â&#x20AC;&#x201C; 2017 Bud Graham, Chair Evan Myers, Vice Chair Rich Francke Todd Kirsten Steve Miller George Downsbrough

Harris Township State College Borough College Township Halfmoon Township Ferguson Township Patton Township

STAFF SUPPORT The Building Capital Fund is administered by the COG Office of Administration. PROGRAM BACKGROUND On May 19, 2003, after many years of consideration, the Centre Region COG opened its new office building at 2643 Gateway Drive. The total project cost of the building (including furnishings) was $2.5 million dollars. From 1969 until 1986, the COG offices were located in the State College Municipal Building on Fraser Street. In 1986, the COG Offices were moved to the first floor of the Fraser Street Parking Garage where they remained until 2003. The COG Building Capital Fund establishes a sinking fund to finance the replacement of major capital components, equipment, and operating systems (e.g. roof, heat pumps) for the COG

Building. The Finance Committee is the policy oversight board for the Building Capital Fund. The Finance Committee must approve all expenditures from the Building Capital Fund. Since the fund was established, the following three changes were approved by the Finance Committee: 

2007 – Municipal contributions and estimated replacement costs should be annually adjusted by the change in the Consumer Price Index.



2010 – Technology hardware (servers and switches) that is shared by the Agencies located in the COG Building should be included in the Building Capital Fund.



2012 – Costs were updated based on current and estimated replacement costs and going forward are to be adjusted annually in accordance with the Capital Improvement Plan (CIP).

The 2018 to 2022 CIP presented to the General Forum provides a complete listing, depreciation period, and anticipated replacement cost for building components, systems, furnishings, and technology equipment that are considered to be capital assets. The chart provided is an updated summary replacement schedule for 2018.

BUDGET

FUNDING FORMULA Municipal shares for the Building Capital Fund are based on the revised COG formula approved by the General Forum during its June 22, 2009 meeting. BUDGET HIGHLIGHTS The major proposals included in the COG Building Capital Budget are: Revenue 

The January 1, 2018 committed fund balance for the Building Capital Budget is $162,143. These funds are reserved for the replacement of major items in the COG Building.



The proposed 2018 combined municipal contribution to the Building Capital Fund is $31,400, a $12,400 increase from the 2017 budgeted amount.



Internal transfers to the COG Building Capital Fund from three COG programs are proposed for 2018 total $15,400. They are:  New Construction – $9,100  Existing Structures – $3,900  Regional Refuse – $1,600

The purpose of the Building Capital Fund is to finance capital improvements, capital replacements, and major repairs to the COG Building.

2018 Summary Budget – COG Building Capital

Expenditures The following are seven expenditure proposals for capital 

Replace the gas powered second boiler in the COG building. The first boiler was replaced in early 2017 after its failure. The second boiler, which has had numerous failures, is being recommended for replacement at an anticipated cost of $20,000.



Replace the 25 swivel/tilt mid back conference chairs in the General Forum Room. The chairs are original to the building and are showing their wear and are beginning to break. Staff is intending to budget $12,500 (estimated $500 each) to replace the chairs in 2018. The chairs will be purchased through the Commonwealth of Pennsylvania’s CoStars program.



$50,000 to connect to the KINBER fiber optic systems for Local Area Network (LAN) and Wide Area Network (WAN) services and implement the recommendation contained in the COG IT study. KINBER Connection - Background Depending on the recommendations contained in the KINBER and IT studies COG is conducting in 2017, funds will need to be budgeted/carried over for potential replacements to IT infrastructure assets. During its May 23, 2016 meeting the General Forum discussed the possibility of the Centre Region municipalities and others joining the KINBER System. The Keystone Initiative for Network-Based Education and Research (KINBER) is a non-profit membership organization comprised of education, health care,

2018 Summary Budget – COG Building Capital

economic development, libraries, public media, and other non-profit organizations devoted to fostering collaboration through technology. With Penn State as a founding member, KINBER was launched in 2010 when it received nearly $100 million dollars from the American Recovery and Reinvestment Act to provide a 1,700 mile high-speed fiber network to connect over 60 education, research, healthcare, and economic development community anchor institutions. The General Forum authorized the expenditure of funds to prepare preliminary estimates of the cost for the Centre Region municipalities, several authorities, and the COG to connect to the KINBER system. 53

These rough costs are complete and are currently being refined. Based on the estimate provided and the recommendation received from the State College Borough Chief Technology Officer (the COG’s IT service provider), the Summary Budget proposes budgeting $50,000 to install a fiber connection to KINBER from the service line along Route 26 (W. College Avenue) to the COG Building.

Forum to decide whether an investment in an emergency power system should be made in 2019. 

Remove the pocket door that separates the Executive Director and Human Resources Officer and install drywall. This project is proposed to provide more privacy for each position. Currently, both individuals can hear the conservations in the others office. Prior to the hiring of the Human Resource Officer, that space was used as a small conference room for the administrative staff and the pocket door made sense. The estimated cost to remove the pocket door, install drywall between the offices, and paint the affected areas is anticipated to be approximately $5,000.



Possible expense - Replace the evaporation coil for an HVAC unit ($6,700).

Although the initial capital costs are high, a COG connection to the KINBER System offers the following advantages:  Reduce ongoing operating costs for a faster connection to satellite locations for COG Agencies, our regional municipal partners, and the internet (100 Mbps to 10 Gbps). COG currently uses Comcast to connect to the internet at a cost of approximately $15,000 per year. At this rate the payback period for the proposed $50,000 investment is 7 years.  Creates a private regional network leading to improved security and reduced operating costs.  Promotes economic development by breaking down barriers to high speed internet.  Provides greater opportunity for regional shared services, including but not limited to GIS, permitting, and disaster recovery. 

Retain the services of a consulting engineer to conduct a study to identify the options and costs of providing emergency power to some or part of the COG building. The results of the study will be shared with the General

2018 Summary Budget – COG Building Capital

LOOKING AHEAD As previously mentioned the six Centre Region municipalities own the COG building. There is a 25 year lease between the municipalities and COG for the lease of the building. The lease began in 2003 and ends in 2028. In 2018 there will be ten years left on the lease. In 2017, COG staff opened a discussion with the Finance and Executive Committees surrounding the future utilization of the COG Building. The Executive Committee is investigating the concept of establishing an Ad Hoc Building Committee to assess the current condition of existing COG facilities as well as investigating the future needs COG will need to address. The elected officials who approved the lease agreement in 2003 were silent about what should happen to the building at the end of 25

year lease in 2028. They believed that the individuals who are in elected office close to the time when the lease expires should decide what do. Although a decision about the renewal or termination of the lease is ten years in the future, COG staff believes that there is value to asking the General Forum for guidance about its preferred course of action. This direction is important because during the next ten years costly improvements (roof replacement, repaving the parking lot, expanding the parking lot, HVAC replacements, emergency power generator, etc.) will be proposed. Prior to making these investments, it should be known whether the COG offices will remain where they are or move to another location. Complicating this discussion, is that as the community has grown so has the demand for COG services. This has resulted in additional staff in the Code Administration, Parks and Recreation, and Administration Agencies. Looking ahead, there are pending space limitations that need to be addressed. The general options to providing additional office space and storage areas include expanding the existing building, redesigning and renovating the offices, or relocating agencies or parts of agencies to another location. 2018 FUND BALANCE The December 31, 2018 committed ending year fund balance is anticipated to be $100,043 compared to $154,281 for 2017.

2018 Summary Budget â&#x20AC;&#x201C; COG Building Capital

COG INSURANCE RESERVE BUDGET MISSION The mission of the Insurance Reserve Fund is to account for the receipt and expenditure of excess funds received from the Pennsylvania Municipal Health Insurance Cooperative (PMHIC) that occur when employee health insurance claims are less than the expenses paid. POLICY OVERSIGHT The COG Health Insurance Reserve Fund was established in 2011 to track the financial transactions involving the funds that COG receives through its participation in the Pennsylvania Municipal Health Insurance Cooperative (PMHIC). Membership in PMHIC is open to all Pennsylvania local governments and related agencies like the COG. These public entities join the cooperative in order to obtain cost savings and stability in pricing for their employee health insurance. By joining together, local governments benefit from the power of group purchasing in a selffunded platform. The cooperative is governed by a Board of Directors made up of PMHIC members. The PMHIC Board of Directors has partnered with BENECON (Benefit Administrators and Consultants) to provide the overall administration, actuarial services, federal and state regulatory compliance, and other administrative services for the cooperative. Like a COG, PMHIC strives to achieve economies of scale for its member organizations.

2018 Summary Budget – Insurance Reserve

Expenditures from the COG Insurance Reserve Fund are reviewed by the Finance Committee as part of the COG Budget process. In addition, the Human Resources Committee provides policy guidance on the expenditure of funds as it relates to the COG Employee Wellness Program which is coordinated by the COG Employee Relations Committee. The Human Resources Committee may also make recommendations that affect the types and scope of health insurance coverage provided to COG employees. Finance Committee – 2017 Bud Graham, Chair Evan Myers, Vice Chair George Downsbrough Richard Francke Todd Kirsten Steve Miller

Harris Township State College Borough Patton Township College Township Halfmoon Township Ferguson Township

Human Resources Committee – 2017 Nigel Wilson, Chair Janet Whitaker, Vice Chair David Brown Anthony Fragola Andy Merritt Dan Treviño

Harris Township Ferguson Township State College Borough College Township Halfmoon Township Patton Township

STAFF SUPPORT The Insurance Reserve Fund is administered by the COG Office of Administration. PROGRAM BACKGROUND In the latter half of 2005, three Centre Region municipal managers, CATA Human Resources Officer, and COG Executive Director explored the feasibility of using a self-funded collaborative to provide employee health insurance. Thereafter, a co-op was created as the Centre Region Insurance Cooperative and it became a member of a larger insured group called the Pennsylvania Municipal Health Insurance Cooperative (PMHIC). As part of the analysis to determine the feasibility of a co-op, health information was collected from the COG/municipal employees and proposals were solicited from a health insurance provider and a reinsurance provider (for stop-gap and aggregate loss coverage) for large claims. The co-op concept helps to provide employees with an enhanced level of health insurance coverage while stabilizing future premium adjustments. Under this cooperative approach, the program is based upon the Capital Blue Cross Health network and is managed by a program administrator (BENECON). BENECON is a Pennsylvania-based company that specializes in financing health care benefits for local government employees through a modified self-funding arrangement. At the program’s inception, BENECON served 123 municipal entities with a total of 4,600 employees enrolled. Today those numbers have increased to 267 and over 9,000 employees.

2018 Summary Budget – Insurance Reserve

At its January 23, 2006 meeting, the General Forum agreed to participate in this cooperative insurance program by unanimously approving the following motion: “That the General Forum, as recommended by the Personnel Committee (now the Human Resources Committee), authorize the Centre Region COG’s participation in the Centre Region Insurance Cooperative by adopting Resolution 2006-1 that authorizes:  The COG Chair to execute the Centre Region Insurance Cooperative Agreement, pending the review of the COG Solicitor;  The COG Chair to execute the Pennsylvania Municipal Health Insurance Cooperative Agreement (reinsurance being purchased through this cooperative), pending the review of the COG Solicitor; and, furthermore,  Recommend that all partners adopt similar ordinances (for municipalities) or resolutions (for authorities) to establish Centre Region Insurance Cooperative and to participate in the Pennsylvania Municipal Health Insurance Cooperative and that they execute the respective Intergovernmental Agreements.” HOW THE COOPERATIVE WORKS Cooperative member organizations in Centre County include: 

State College Borough



Ferguson Township



Patton Township



Centre Area Transportation Authority (CATA)



Centre Region COG



College Township (joined in 2012)



Bellefonte Borough (joined in 2012)



Harris Township (joined in 2013)

PMHIC solicits proposals from health care providers and awards a contract based on costs and coverage level. The current contract is with Capital Blue Cross. Each participating member in the cooperative designs a personalized medical benefits plan in conjunction with Capital Blue Cross. Working with an actuary, BENECON calculates the annual premiums to be paid for each group. In the event the premiums paid exceed the amount paid out in claims, most of the balance is returned to that individual group. COG has been fortunate to receive a reimbursement in five of the last six years that it has participated in the cooperative. In 2016, the surplus claim money returned to all PMHIC members exceeded $19 million. Based on a 2017 mid-year report, it appears as though COG may receive a refund during 2018, should the claim activity continue to be less than premiums paid. However, claim activity can change very quickly with a single major illness or accident. Subsequently, a conservative reimbursement of $25,000 to this revenue line item account is being proposed in the budget.

BUDGET The purpose of the Insurance Reserve Fund is to provide a financial management tool for reimbursements that may be received from the COG’s membership in PMHIC.

2018 Summary Budget – Insurance Reserve

Since the COG received its first health insurance refund in 2007, the refunds have been used for four purposes:  The payment of unexpected insurance costs due to a change in the employment status of a COG employee out of the normal budget cycle. Examples include: an employee who is covered as a single individual marrying and changing to a two person plan; or an employee who has waived coverage, separates from service, and is replaced by a new employee who requires a higher level of coverage. These unexpected expenditures are approved by the Finance Committee.  Funding of the Employee Wellness Program as proposed by the Employee Relations Committee and endorsed by the COG Executive Director. These expenditures are endorsed by the Human Resources Committee as part of the budget process.  Funding a portion of the cost of medical insurance. For 2017, 8% of the premium is being paid by the Insurance Reserve Fund, no change is proposed to this percentage for 2018. Prior to participating in the cooperative, the premium shares were split 81% employer and 11% employee.  Funding fees that the COG, as an employer, must pay to be compliant with the Affordable Care Act. FUNDING FORMULA No municipal contributions are made to this fund. The revenue is exclusively derived from PMHIC payments and the related interest.

BUDGET HIGHLIGHTS

COG-Wide Premium Subsidy

The 2018 beginning year balance for the Insurance Reserve Fund is anticipated to total $464,418 compared to $427,219 budgeted for 2017. This increase is due to a $147,665 reimbursement that the COG received in 2017 from PMHIC because during 2016 the COG paid more in health premiums to PMHIC than PMHIC paid in health insurance costs. Before COG participated in the PMHIC this cost difference would have been retained by the health care provider.

For the last several years, COG has subsidized a portion of the total premium for medical insurance using the Insurance Reserve Fund. The proposed 2018 subsidy of $140,000 is equal to about 8% of the total employee health insurance premiums. Employee health care costs are allocated among the COG, the employee, and the Insurance Reserve Fund. The 2018 Insurance Reserve Budget proposes the following plan for the distribution of employee health care costs:

REVENUES As a member of PMHIC, COG has received reimbursements based on the difference of the annual premium paid and the amount of claims paid. These reimbursement can range extensively. By way of example, in 2012 COG received no reimbursement and in 2016 it totaled $264,569.

2016

Consequently, the practice has been to project no reimbursement income. Members of the Finance Committee viewed this approach as to conservative and for 2018, a reimbursement of $25,000 is projected. Looking ahead the Committee recommended that a 3 to 5 year rolling average be used.

2018 Proposed

Interest earnings are budgeted at $2,000 in 2018. EXPENDITURES During 2018 the Insurance Reserve Budget is proposed to be used as follows:

2018 Summary Budget â&#x20AC;&#x201C; Insurance Reserve

2017

82.5% COG as Employer 5% Insurance Reserve 12.5% Employee 81% COG as Employer 8% Insurance Reserve 11% Employee 81% COG as Employer 8% Insurance Reserve 11% Employee

The goal is to manage the Insurance Reserve Fund in such a manner that it can continue to finance some portion of employer and employee contributions as well as employee wellness programs. In conjunction with the COG Budget, these subsidies will be assessed on an annual basis to ensure that the proper fund balance is maintained. For 2018, the COG-wide proposed subsidy used to reduce increases in insurance premiums is $140,000, an increase of $36,000 from the 2017 budgeted amount of $104,000.

Subsidy for Unanticipated Changes in Agency Premiums

2018 Committed Year End Fund Balance

The Insurance Reserve Fund has been used to subsidize unanticipated costs for individual Agencies when there has been a significant change in employee coverage, such as moving from twoperson to family coverage, or if a new employee elects a higher level of coverage than his/her predecessor. This line item is designed to pay for the difference in cost from the amount that was budgeted. For 2018, the proposed premium subsidy is $30,000, no change from 2017.

The 2018 committed fund balance ending year is anticipated to be $303,618 and will be carried forward to assist with future expenses relating to the employee health insurance program. The proposed fund balance should be sufficient to pay the four aforementioned expenses during 2018 and 2019 in the event the COG does not receive a reimbursement payment for those two years.

Employee Wellness Program In accordance with a recommendation from the Human Resources Committee, proposed 2018 expenditures for the Employee Wellness Program Budget are not to exceed $15,000 compared to the 2017 budgeted amount of $8,000. The bulk ($7,300) of this increase is due to the proposed implementation of a reimbursement (Maximum of $25 per month per employee) for a qualified exercise activity to promote physical movement and fitness. The Human Resources Committee considered this proposal but did not endorse it because not all the details have been finalized by the COGâ&#x20AC;&#x2122;s Employee Relations Committee that consists of staff from the COG Agencies. The proposalâ&#x20AC;&#x2122;s implementation is contingent on the prior approval of the Human Resources Committee.

Should the Insurance Reserve Fund be depleted, then at some point in the future, the accumulation of medical insurance rate increases will need to be paid during the course of a single calendar year. To avoid this from occurring, the status of the fund has been and will continue to be carefully monitored.

Affordable Care Act Fees $2,500 is budgeted to pay for fees associated with the Affordable Care Act: the Patient-Centered Outcomes Research (PCOR) Fee, which funds research on clinical effectiveness, and the mandated reporting fees performed by Keystone Payroll.

2018 Summary Budget â&#x20AC;&#x201C; Insurance Reserve

COG UNEMPLOYMENT INSURANCE RESERVE BUDGET MISSION (THIS BUDGET IS NEW FOR 2018) The purpose of the Unemployment Insurance Reserve Budget is to finance the COG’s self-funded unemployment account in an amount sufficient to pay claims as determined by the Commonwealth of Pennsylvania. POLICY OVERSIGHT Expenditures from the COG Unemployment Fund are reviewed by the Finance Committee as part of the COG Budget process. Finance Committee – 2017 Bud Graham, Chair Evan Myers, Vice Chair George Downsbrough Richard Francke Todd Kirsten Steve Miller

Harris Township State College Borough Patton Township College Township Halfmoon Township Ferguson Township

Centre Region COG has a self-funded unemployment account for its agencies except for the Centre Region Parks and Recreation Authority (part time Nature Center and pool employees) and Schlow Centre Region Library. This unemployment account is maintained to pay for claims for former COG employees as directed by the Commonwealth of Pennsylvania. COG began managing this account effective January 1, 2015 with the transition of responsibility for providing financial and accounting services from the Borough of State College to the COG’s Office of Administration. Prior to January 1, 2015 Unemployment funds were held in trust in the Borough’s General Fund. COG has utilized the self-funded approach due to its low history of claims. Self-funding allows COG to maintain funds in its own bank account rather than remitting those funds to the Commonwealth of Pennsylvania. The Administrative staff believes, based upon the history of claims, that a self-fund program is the most cost effective way to pay for unemployment claims.

STAFF SUPPORT The Unemployment Fund is administered by the COG Office of Administration. PROGRAM BACKGROUND This budget is new for 2018 and was established to more clearly identify and track expenses for unemployment insurance. The

2018 Summary Budget – Unemployment Insurance Reserve

BUDGET FUNDING FORMULA This budget is funded through transfers from COG Agencies. BUDGET HIGHLIGHTS Revenue: 

The estimated January 1, 2018 committed fund balance for the Unemployment Insurance Reserve Budget is $57,348.



Inter-Agency transfers into the budget are estimated to total $24,559 in 2018.

Expenditures: 

Based on COG’s history of unemployment claims, it is expected that during 2018 the COG will pay $17,875 in claims as approved by the Commonwealth of Pennsylvania.

COMMITTED FUND BALANCE 

The December 31, 2018 ending year fund balance for the Unemployment Budget is $64,132.

2018 Summary Budget – Unemployment Insurance Reserve

COG OFFICE OF EMERGENCY MANAGEMENT MISSION The Centre Region Emergency Management Program is responsible for preparing the Borough of State College and the Townships of College, Ferguson, Halfmoon, Harris, and Patton to respond to and recover from natural or technological disasters and acts of terrorism.

State College Borough COG Executive Director EM Coordinator Penn State EM Director COG General Forum Vice-Chair

Oversight of the program is provided as follows:

POLICY OVERSIGHT The Emergency Management Council (EMC) oversees the Emergency Management Program and is comprised of the Centre Region Municipal Managers, the COG Executive Director, the COG General Forum Vice Chair, and a representative from Penn State University. According to the Articles of Agreement for the Emergency Management Program, the EMC is “responsible for the development and maintenance of a comprehensive, all-hazard, risk-based Emergency Management Program to include emergency operations within the territorial limits of the participating municipalities.” Emergency Management Council – 2017 Doug Erickson, Chair Adam Brumbaugh David Pribulka Susan Steele Amy Farkas

Tom Fountaine Jim Steff Shawn Kauffman Brian Bittner Danelle Del Corso

Patton Township College Township Ferguson Township Halfmoon Township Harris Township

2018 Summary Budget – Emergency Management



The General Forum Chair, or Vice Chair in his or her absence, issues any emergency declarations.



The EMC recommends the appointment of the EM Coordinator and Deputy EM Coordinator to the General Forum.  During an emergency, the EM Coordinator and essential EMC members report to the Emergency Operations Center (EOC).



The budget for the Emergency Management Program is reviewed by the Finance Committee and approved by the General Forum.

STAFF SUPPORT 

One full-time Emergency Management Coordinator



Four Volunteer Deputy Emergency Management Coordinators



Shared Office Manager with the Fire Program

The position will complete special projects needed to support the Emergency Operations Plan.

BUDGET FUNDING FORMULA

Capital:

Municipal shares for the Emergency Management Program are based on the revised COG Formula that was approved by the General Forum during its June 22, 2009 meeting.



In 2017, no funds are budgeted for emergency equipment capital projects.



$8,766 is being budgeted to transfer to the Centre Region Fire Program for staff support, office space, and supplies.

BUDGET HIGHLIGHTS Revenue: 

The 2018 committed fund balance of $35,495 includes $14,995 in operating funds and $20,500 for the replacement of the Coordinator’s response vehicle, equipment purchases for the Emergency Operation Center, and future training exercises. The fund balance mitigates fluctuations in municipal contribution when there is a large future expense.



Municipal contributions are proposed to increase by $840 from $125,990 to $126,830 in 2018.

Expenditures: 

The 2018 budget increased EOC Expenses to $5,000 in support of the new DLAN Emergency Operations Center software purchased by Penn State University. This software will provide the information sharing and collection during incidents and events.



The Emergency Management Program Budget continues to include $3,750 for a regular summer intern position. The intern will provide 300 hours to the EM Program.

2018 Summary Budget – Emergency Management

COG EMERGENCY MANAGEMENT CONTINGENCY FUND MISSION The Emergency Management Contingency Fund is a pool of funds for the Centre Region Emergency Management Coordinator to draw upon during a disaster declared by the COG General Forum Chair, or in his or her absence, the COG General Forum Vice-Chair. This fund was established in accordance with the revised Articles of Agreement for the Regional Emergency Management Program, which was approved by the General Forum at its November 26, 2006 meeting and was subsequently adopted by the Centre Region municipalities. POLICY OVERSIGHT

2) During a declared emergency when there is not an imminent threat to human life, expenditures beyond $100,000 shall require the approval of the Emergency Management Council.” PROGRAM BACKGROUND The 2006 Articles of Agreement established the Emergency Management Contingency Fund. The purpose of this fund is to reduce financial uncertainty during an emergency. The concept was initially proposed by the Emergency Management Council as a way to expedite the procurement of resources during a declared disaster. The Articles of Agreement identify the amount of money that can be used at the direction of the Emergency Management Coordinator and clearly define how it is to be used.

Based on the revised Articles of Agreement, the Centre Region Emergency Management Coordinator is authorized to expend funds as follows: 1) “During a declared emergency when there is not an imminent threat to human life, the Emergency Management Coordinator is authorized to expend up to $100,000 or the amount available in the Emergency Management Contingency Fund, whichever is larger, without the approval of the Emergency Management Council.

2018 Summary Budget – Emergency Management Contingency

BUDGET The 2006 Articles of Agreement for the regional Emergency Management Program state that: “The participating municipalities shall collectively establish and maintain a $100,000 inflation-adjusted Emergency Management Contingency Fund within the annual Centre Region COG Budget.” The $100,000 threshold was reached in 2013. Municipal contributions after that year are based on the annual change in the Consumer Price Index. FUNDING FORMULA Municipal shares for the Regional Emergency Management Program are based on the revised COG Formula that was approved by the General Forum during its June 22, 2009 meeting. BUDGET HIGHLIGHTS In accordance with the terms of the Articles of Agreement that relate to the annual market adjustment of the Emergency Management Contingency Budget, municipal contributions totaling $1,165 are proposed for 2018. The contribution represents the CPI (Consumer Price Index) increase to maintain the Contingency Fund. No expenditures from the Emergency Management Contingency Fund are anticipated for 2018.

2018 Summary Budget – Emergency Management Contingency

COG CODES – NEW CONSTRUCTION PROGRAM MISSION

Public Safety Committee – 2017

The mission of the New Construction Program is to protect the health, safety, and welfare of all people working, residing, and visiting in the Centre Region by enforcing and administering the Uniform Construction Code of Pennsylvania for new building construction.

Walt Wise, Chair Steven Lyncha, Vice Chair Cathy Dauler Laura Dininni Randy Brachbill Mark Stevenson Nigel Wilson

POLICY OVERSIGHT The Articles of Agreement passed by the State College Borough and College, Ferguson, and Patton Townships in 1968 created the Centre Region Code Administration (CRCA) as a building and plumbing inspection agency. In 1980, electrical inspection services were added. Harris Township joined the program in 1990 and Halfmoon Township joined in 2004, at which point new Articles of Agreement were signed. In 2008, the Agency began performing septic tank inspections in accordance with the state mandated Act 537 Sewage Management Program (SMP). The SMP was transferred from the New Construction Budget to the Existing Structures Budget beginning January 1, 2015. This service affects 3,000 properties in the Centre Region. In 2014, Bellefonte Borough began contracting services with the CRCA for building, rental housing, and fire permits and inspections. Policy oversight of the CRCA is provided by the Public Safety Committee, which is comprised of one elected official from each participating municipality.

2018 Summary Budget – Code Administration New Construction

Patton Township College Township State College Borough Ferguson Township Bellefonte Borough Halfmoon Township Harris Township

The Centre Region Building and Housing Code Board of Appeals is a group which is comprised of professional architects, engineers, and contractors who are appointed by the participating municipalities based on the recommendation of the General Forum. The Appeals Board is tasked with rendering decisions on code appeals, conducting public hearings on any change or amendment to the codes, and recommending appropriate action to the Public Safety Committee. STAFF SUPPORT Employment positions approved in the New Construction Program in 2017 are: Full-time: Agency Director (Code Official) 1 Codes Services Manager (NEW) Administrative Staff

1 position 1 position 3 positions 67

Commercial Plans Examiner/Inspector Sr. Commercial Building Inspector Commercial Fire Inspector Electrical Inspector 1

7 positions 1 position 1 position 3 positions

Position assigned to New Construction Program (70%) and Existing Structures Program (30%).

PROGRAM BACKGROUND The service area for the CRCA includes the State College and Bellefonte Boroughs as well as College, Ferguson, Halfmoon, Harris, and Patton Townships. Adopted Codes â&#x20AC;&#x201C; The participating municipalities have authorized the CRCA to administer the following statewide codes: 2009 International Building Code 2009 International Residential Code 2009 International Mechanical Code 2009 International Plumbing Code 2009 International Fuel Gas Code 2008 National Electrical Code 2009 International Existing Building Code 2009 International Energy Conservation Code 2009 International Urban Wildlife Interface Code 2009 International Fire Code

VALUE OF NEW CONSTRUCTION Total Value of Year New Construction 2010 102,623,039 2011 148,259,102 2012 171,230,174 2013 171,734,309 2014 126,467,248 2015 265,563,233 2016 251,767,097 2017* 201,167,299 Average $179,851,438

Number of Permits 1,787 1,607 1,774 1,762 1,462 1,477 1569 1,183 1,578

*January 1, 2017 through September 30, 2017

The following graph summarizes the number of building permits per year that have been issued by the CRCA since 2010. During this period, the average annual number of permits through 2017 was 1,578.

The following matrix summarizes the value of new building construction (non-University) occurring in the Centre Region over the last eight years. During this period, there has been over $1.3 billion dollars in new construction.

2018 Summary Budget â&#x20AC;&#x201C; Code Administration New Construction

BUDGET The New Construction Budget funds the plan review, field inspection, and administrative services that are necessary to ensure that new construction, renovation of existing properties, and any change of use complies with the ordinances adopted by the participating municipalities. FUNDING FORMULA For the last 41 years, the CRCA has been financially selfsupporting and is funded entirely by building permit fees and related costs. The CRCA will continue to be self-supporting in 2018. No municipal contributions support this program. BUILDING PERMIT FEES Building Permit fees for projects are established in three ways: 

Residential alteration or renovation projects: The permit fee is based upon the declared cost as provided by the permit applicant, which is then multiplied by the permit fee multiplier.



Commercial alteration or renovation projects: The permit fee is determined by the level of alteration as outlined in the International Existing Building Code and the construction value based on the Building Valuation Data as established by the International Code Council and multiplied by the permit fee multiplier.



Residential and commercial addition or new construction: The permit fee is based upon the greater of the declared cost

2018 Summary Budget – Code Administration New Construction

renovation costs for leased space in the Nittany Mall. The loan will be for a ten year period and have a 1.5% interest rate. The repayment amount in 2018 will be $11,600.

of construction or the construction value based on Building Valuation Data as established by the International Code Council and multiplied by the permit fee multiplier. The permit fee multiplier is reviewed annually by the COG Finance Committee. A decrease of the building permit fee multiplier is proposed for 2018. The current permit fee multiplier is .0065, the proposal is to lower the multiplier to .0060 a reduction in the cost of a building permit of 7.7%. By way of example, currently the permit fee for a $50,000 project would equal $325; a $50,000 project with the reduced multiplier will equal $300.



EXPENDITURES 

In 2018 $40,000 has been budgeted to hire a consultant to assist with software evaluation and to assist a committee in identifying and evaluating software packages. Currently a committee comprised of representation from the seven member municipalities and Centre Region Planning is being put together to evaluate a new permitting software package to replace the existing software shared by the municipalities. The regional committee will be working over the next nine (9) months to identify and evaluate software packages that will meet regional needs and make a recommendation for acquisition.



Employee Development expenses total $54,800, a $5,000 increase from the amount appropriated in the 2017 budget. The increase allows for Sewage Enforcement training for Agency staff. This is a new agency initiative to provide sewage enforcement officer (SEO) services to College, Ferguson, and Halfmoon Townships beginning in 2019.



$89,600 has been budgeted for administrative services. The Agency reimburses the Office of Administration for services provided including financial, human resources, legal, and staff

BUDGET HIGHLIGHTS A large portion of the CRCA New Construction fund balance represents building permit fees that have been paid, but the inspection services for those permits have not been fully provided, because the construction projects extend over several years. Since 2011 the New Construction Program’s budget designated these building permit revenues as "committed." The 2018 beginning year committed fund balance for Building Permit fees is $687,556; the ending year committed fund balance for Building Permit fees is $468,420. REVENUE 



During 2018, revenue from building permits is expected to generate $1,022,000, a decrease of $13,000 from the amount that was budgeted in 2017. The decrease reflects the decrease in the permit fee multiplier. In 2016, the Agency lent the Centre Region Parks and Recreation Authority $107,000 to pay for engineering and

2018 Summary Budget – Code Administration New Construction

The Agency lent $138,800 to the Centre Region Parks and Recreation Authority to pay for the engineering and remediation costs of storm water issues at Oak Hall Regional Park. The loan will be for a seven year period and have a 1.5% interest rate. The repayment amount in 2018 will be $21,190.

support. This is an increase $23,800 from the 2017 budgeted amount partially due to the cost of the Office of Administration performing a customer survey in 2018.

better representation of the operations of the Agency. As a result, New Construction will reimburse Existing Structures $142,759, the equivalent of 1.1 of the 2 full time commercial fire inspectors and 25% of the Sr. Fire & Rental Housing Inspector's time.

PERSONNEL CHANGES 

As proposed in the Program Plan, the 2018 Summary Budget allows for a full-time Customer Service Manager. This position is supported by the COG Public Safety Committee. It will focus on enhancing customer services, marketing the Agency’s public education programs, arranging for resolution of customer concerns, setting performance criteria and compiling related data, and increasing community outreach. The annual compensation for this position is proposed to be in the range of $100,017 depending on qualifications (including benefits).



Based on the results of the wage survey currently being conducted, the salary bands for some positions may be adjusted.



$182,000 will be transferred to the Code Capital Improvement Fund and will be used for the Agency’s office renovations, computer and vehicle replacements as identified in the COG Capital Improvement Plan.

TRANSFERS 

An internal transfer of $9,100 is allocated to the COG Building Capital Fund. Because the Agency receives no municipal funding and occupies approximately 32% of the COG Building and common space, the Finance Committee recommended that the Agency pay a proportionate share of the building’s capital costs.



In spring of 2016 the Commercial Fire Inspector - New Construction began reporting to the Sr. Fire & Rental Housing Inspector, in a move to increase inspection consistency. To accurately assign costs, the New Construction budget will reimburse the Existing Structures budget for fire inspections performed for new construction projects. This is a

2018 Summary Budget – Code Administration New Construction

COG CODES – EXISTING STRUCTURES PROGRAM MISSION The mission of the Existing Structures Program is to protect the health, safety, and welfare of all people working, residing, and visiting in the Centre Region by providing administration of the locally adopted Centre Region Building Safety and Property Maintenance Code for existing buildings. POLICY OVERSIGHT The Articles of Agreement that were passed by the State College Borough and College, Ferguson, and Patton Townships in 1968 created the Centre Region Code Administration (CRCA). As the Centre Region continued to become more urbanized, the services of the CRCA expanded to encompass a fire safety inspection program of businesses, schools, and commercial and industrial occupancies since 1973. Policy oversight of the Code Agency is provided by the COG Public Safety Committee, which is comprised of one elected official from each participating municipality. Public Safety Committee – 2017 Walt Wise, Chair Steven Lyncha, Vice Chair Cathy Dauler Laura Dininni Randy Brachbill Mark Stevenson Nigel Wilson

Property owners may appeal decisions of the Code Director to the Centre Region Building and Housing Code Board of Appeals. The Board is a group which is comprised of professional architects, engineers, and contractors who are appointed by the participating municipalities based on the recommendation of the General Forum. The Appeals Board is tasked with rendering decisions on code appeals, conducting public hearings on any change or amendment to the codes, and recommending appropriate action to the Public Safety Committee. STAFF SUPPORT Full-time: Agency Director (Code Official) 1 Permit Program Technician Staff Assistant (previously part-time) Commercial Fire Inspector Senior Fire Inspector Housing Inspector

1 position 1 position 1 position 3 positions 1 position 3 positions

Patton Township College Township State College Borough Ferguson Township Bellefonte Borough Halfmoon Township Harris Township

2018 Summary Budget – Code Administration Existing Structures

Position assigned to New Construction Program (70%) & Existing Structures Program (30%).

PROGRAM BACKGROUND In 2003, the Fire Safety and Rental Housing Budgets were combined into a single Existing Structures Program Budget. The Existing Structures Program is targeted at existing structures that

are located in the State College Borough and College, Ferguson, Harris, and Patton Townships. In 2014, the Bellefonte Borough began a contract with the CRCA to enforce the Rental Housing and Fire Safety Programs. The Existing Structures Program typically does not include owneroccupied dwellings. Adopted Code 2009 International Property Maintenance Code as locally amended by the governing bodies of the member municipalities SERVICES PROVIDED 

Although there is some variation, the 19,803 rental units in College, Ferguson, Harris, and Patton Townships and the State College Borough are inspected every three years at a minimum. Any units that receive an unsatisfactory inspection (more than five violations) are subject to annual inspections until three consecutive satisfactory inspections are achieved. Bellefonte Borough rental units are inspected every two years, as requested by Bellefonte Borough Council.



Rental properties that are identified as unsafe are inspected annually at a cost of $75 per inspection.



Fraternity occupied units are inspected semi-annually.



Blasting permits are issued to licensed blasting companies for a flat fee of $25.00 per day. Staff inspects the site at the time of blasting to ensure that all safety measures are taken.



The frequency of fire safety inspections of businesses in the Centre Region varies. The frequency of inspections is based on the hazards, occupancy, and hours of operation of each

2018 Summary Budget – Code Administration Existing Structures

business, as well as the presence of built in fire detection or protection. 

Staff inspects businesses to ensure that features such as fire extinguishers, egress, exit signs, emergency lighting, alarm systems, and sprinklers are compliant with the current code standard.



The CRCA coordinates Life Safety Education Programs for the community. These programs include training businesses and industry in evacuation planning and the use of fire extinguishers; observing fire drills and recommending improvements in evacuation time; and conducting fire prevention programs for schools and childcare facilities in the region.  Training is provided to approximately 375 childcare providers annually. This training is conducted at the COG Building six times a year, utilizing a number of resources including multi-media presentations; handson fire extinguisher training; and the Fire Safety House (a combination smoke training and sprinkler demonstration trailer). The CRCA works closely with the Alpha and Boalsburg Fire Companies to utilize volunteer staff and resources in conducting these training programs.  On occasion, the CRCA will send staff and resources out of the Centre Region to conduct training programs. This has included state and national fire safety programs as well as school districts throughout Centre County.

BUDGET



Revenue from Fire Safety Permits is expected to total $190,400 in 2018, an increase of $1,200 from the 2017 estimated receipts amount of $189,200.



In 2017, Existing Structures staff will perform Sewage Management walkover inspections at $35.00 per inspection. Revenues from these inspections are expected to be $14,315.

FUNDING FORMULA The Existing Structures Program requires no municipal funding. Fire Safety Permit fees are based on the estimated inspection time multiplied by the hourly rate and then divided by the inspection frequency values. This formula provides a Fire Safety Permit fee that is relative to the risk of the occupancy and the time involved in conducting the inspection. For example, a business office that has three employees is typically in the low risk category, as it may take 30 minutes or less to inspect and only requires an inspection once every three to five years. A large retail store is in a higher risk category based on its occupant load and fuel loading, may take four to six hours for the initial inspection, and requires an inspection annually. The current hourly rate for an Inspector is $80.00 per hour. There is no increase proposed in the cost of a fire permit for 2018. Rental Housing Permit fees are based on the type of rental property. The permit fee may be adjusted annually through municipal approval only. There is no increase proposed in the cost of a rental housing permit for 2018. BUDGET HIGHLIGHTS The estimated 2018 beginning year fund balance for the Existing Structures Program is $214,315. REVENUE 

Revenue from Rental Housing permits to total $773,400 during 2018, an increase of $6,650 from the 2017 estimated receipts amount of $766,750.

2018 Summary Budget – Code Administration Existing Structures

EXPENDITURES 

In 2016 Ferguson Township constructed a 2,400 square foot wood framed storage building. The Agency will use the storage building to store two fire safety trailers and towing vehicles. The annual fixed rental rate of $4 sq. ft. over the 10 year lease will serve as a reimbursement to Ferguson Township for its costs to erect the building. The 2018 budget allows $10,000 for 12 months of renting space.



$17,800 has been budgeted for Employee Development. This allows Inspectors to train, test, and renew certifications.

PERSONNEL CHANGES 

There are no personnel changes proposed for 2018.



Based on the results of a wage survey currently being conducted, the salary bands for some positions may be adjusted. 2018 Rental Housing Fee Schedule House, Duplex, or Apartment

$37

Rooming Unit

$32

Fraternity Unit

$332-$432*

TRANSFERS 

An internal transfer of $3,900 (a $150 increase from 2017 amount) is allocated to the COG Building Capital Fund. Because the Agency receives no municipal funding and occupies approximately 32% of the COG Building and common space, the Finance Committee has recommended that the Agency pay a proportionate share of the building’s capital costs. 

$45,000 will be transferred to the Code Capital Improvement Fund and will be used for the Agency’s vehicle, computer, and software replacements as identified in the COG CIP.

2018 Summary Budget – Code Administration Existing Structures

COG CODE ADMINISTRATION CAPITAL FUND MISSION The mission of the Centre Region Code Administration Capital Improvement Fund is to fund and track the scheduled replacement of the Agency’s fleet of vehicles, computers, office furniture, and software as identified in the COG’s Capital Improvement Plan. POLICY OVERSIGHT The Code Administration Capital Improvement Fund was established in response to the COG Finance Committee’s endorsement and the municipal review of a COG Capital Improvement Plan (CIP). The CIP is approved by the COG General Forum. The items in the CIP as they relate to the Centre Region Code Administration (CRCA) are reviewed and approved by the COG Public Safety Committee, which is comprised of one elected official from each participating municipality. Public Safety Committee – 2017 Walt Wise, Chair Steven Lyncha, Vice Chair Cathy Dauler Laura Dininni Randy Brachbill Mark Stevenson Nigel Wilson

Patton Township College Township State College Borough Ferguson Township Bellefonte Borough Halfmoon Township Harris Township

2018 Summary Budget – Code Administration Capital

PROGRAM BACKGROUND In 2012, the Code Capital Improvement Fund was established as a separate capital budget for the CRCA. In prior years, budgeting for vehicles, equipment, and other major expenses did not occur in a scheduled manner over multiple years. Instead, capital expenses were paid from the Agency’s two operating budgets (New Construction and Existing Structures Programs).

BUDGET The purpose of the CRCA Capital Improvement Fund is to fund the replacement of capital items for the CRCA. Items costing over $10,000 are identified in the CIP that is distributed to the General Forum in July of each year. As is the case with the two other Agency budgets, no municipal monies are used to finance the Capital Fund; it is entirely self-supporting through permit fees in accordance with fee resolutions as approved by each of the participating communities. The 2018 Code Capital Improvement Fund proposes a combined transfer from the New Construction and Existing Structures Program of $227,000. In accordance with the CIP, capital funds are proposed to be used as follows:

Computers & Equipment The projected cost of Computers & Equipment is $1,800. There is one (1) Microsoft Surface Pro and related components proposed for new staff ($1,800). Improvements of Building & Facilities In 2018, the Agency is proposing to install lighting in the storage building at Ferguson Township where the fire safety trailers are stored. There are safety concerns when staff are there after dark. The Agency would contract Ferguson Township, estimated $4,000, to install the lights that will run from an existing generator in one of the trailers. This will avoid the high cost of running electrical service lines and connecting to the West Penn Power system.

underutilized office and an upgrade of the Planning Agencyâ&#x20AC;&#x2122;s conference room that would also be made available for Code Agency meetings. 2018 Committed Ending Year Fund Balance The anticipated 2018 ending fund balance ($142,596) will be carried forward to assist with future scheduled replacements or addition of vehicles, furniture, and equipment as indicated in the COG Capital Improvement Plan.

At the recommendation of the municipalities the Agency is proposing to expend $5,000 to have a study conducted to evaluate the infrastructure requirements that would needed at the COG Building to allow the efficient use of electric vehicles in the CRCA fleet. $150,000 is proposed for office renovations. There are two components to this project. The first element is to create an office for the Code Service Manager. It is recommended that the new employee have a private office near the front office counter - closer to the customers. Because the position will be supervisory in nature, an individual office is proposed. The second element is the relocation of three CRCA personnel to the rear of the Centre Regional Planning Agency office suite, near the current location of the GIS Planner. Approximately 608 square feet of office space would be renovated to the new purpose. The projected renovation costs also includes the relocation of the GIS Planner to an existing 2018 Summary Budget â&#x20AC;&#x201C; Code Administration Capital

COG SCHLOW CENTRE REGION LIBRARY MISSION

Schlow Centre Region Library Board of Trustees – 2017

“The Centre of Reading and Learning.”

Maureen Welesko, President Ron Filippelli, Vice President David Thiel, Treasurer Virginia Squier, Secretary Marilyn Byers Ralph Licastro Casey McClain Kathleen Shannon Lewis Steinberg

POLICY OVERSIGHT Public libraries in Pennsylvania are governed by policy-making library boards which are appointed in compliance with the state Library Code. Library boards have responsibilities in three areas: legal policy-making, planning, and evaluation. Library boards are to control and disburse funds, adopt rules and regulations for the library’s operations, and contract for cooperative services. Schlow Library is a tax-exempt non-profit organization and an instrumentality of local government. The Library must abide by the state’s Library Code and regulations. All Schlow Library Board members are appointed by the Centre Region municipalities that provide financial support to the Library. Each municipality has one or two representatives on the Board, depending on population and seat rotation. Library boards that are established under the Library Code can have no more than nine members, and terms are limited to two successive threeyear terms, plus the completion of an unexpired term of a previous Board Member.

2018 Summary Budget – Library Operating

College Township State College Borough Harris Township Halfmoon Township Harris Township State College Borough Patton Township Patton Township Ferguson Township

Schlow Library is a member of the Centre County Federation of Public Libraries, which also has a policy-making board. The Centre County Federation of Public Libraries is the entity within Centre County that applies for state aid and federal grants on behalf of its members, receives and disburses state and county funds, and oversees library services on a countywide basis. Three Schlow Library Board members serve on the Federation Board. Schlow Library also serves as the District Library Center for the Central Pennsylvania Library District of Centre, Clearfield, Juniata, and Mifflin Counties. The Library receives additional state funds to provide guidance, training, and support for the seven public libraries in the District. Being a district center brings Schlow Library additional staff and resources that directly benefit

its customers, and it is a status awarded only to leading libraries in the Commonwealth of Pennsylvania. STAFF SUPPORT Schlow Library currently has 45 staff members: 18 full-time, 17 part-time, and ten part-time pages (shelvers). Twelve employees are librarians with a Master’s Degree in Library Science. Staff members work in six departments: patron services (circulation), children’s services, adult services, technical services, technology, and administration. The Library currently has over 70 regularly scheduled volunteers who are contributing the equivalent of 4 fulltime employees.

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Remote returns throughout the service area, and delivery to Foxdale Village, The Village at PSU, and Mt. Nittany Middle School

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Books by mail for the homebound

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Reference USA business research database

SERVICES 

Wi-Fi, public computers, and printing for adults and children

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Reference, research, and technology assistance in person, phone, fax, chat, or e-mail

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Summer reading and author programs for all ages

COLLECTION HIGHLIGHTS

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Award-winning children’s story times and programs

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Over 130,000 books and 11,000 e-books

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Audio books on CD and 1,900 e-audiobooks

Fun groups: Book discussions, arts clubs, board game meetups

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Print newspapers and popular magazines

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Concerts, author visits, educational programs

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Flipster: full color and text e-magazines

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Public event spaces for community groups

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Over 7,700 popular and educational DVDs with no rental fee

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Art exhibits in the Elizabeth Rodgers Allen Gallery

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Tumblebooks, BookFlix and TrueFlix: online children’s books and audiobooks

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Community and governmental information

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Tutoring space and test proctoring

Freegal: free online music downloadable materials – over seven million songs available

PROGRAM BACKGROUND

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Large print books, book club kits, and materials for new adult and new English speakers

Legislative Mandates:

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Interlibrary loans for items not in Schlow Library’s collections

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Access to materials in all Centre County public libraries

2018 Summary Budget – Library Operating

The Library Code of Pennsylvania, Act of June 14, 1961, P.L. 324, as amended through July 4, 2004, specifies the way that public library service will be organized, governed, and funded.

Facilities:

BUDGET HIGHLIGHTS

The first State College area public library was founded in 1957 and located in an old house on College Avenue. A storefront was added in 1958. From 1967 to 2004, the Library was located at Beaver Avenue and Allen Street in the former State College Post Office. A front addition was completed in 1986.

Note: District Library Center operations, which receive dedicated funding from the state, have been listed separately in this year’s Detailed Budget reviewed by the Finance Committee but are not included in this Summary Budget since they are not part of CRCOG budget discussions. District services are overseen by a District Library Board consisting of a representative from each District Library.

In February 2004, the Library relocated temporarily to the old State College Municipal Building on Fraser Street to allow a new library to be built on the former site. The current facility opened in October 2005 at Beaver Avenue and Allen Street on three parcels of land. The building project was funded with private donations, local government funds, and grants from the state and federal governments. The Library Board owns the Library facility.

Revenue: 

Total operating revenue is increasing 3.8% with a projected beginning fund balance of $143,335.

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State and district aid will be the same in 2018. Between 2008 and 2016, over $1 million in state dollars has been lost since the highest funded years. This decline in state aid has been a large financial challenge.

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The Federation of Centre County Libraries received a slight increase in county funding used for Internet and telecommunications expenses for all locations. The Federation disburses state and county funds to Schlow Library and the Centre County Library and Historical Museum based on a formula. County funding for 2018 will not be confirmed until December 2017.

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Municipal contributions are proposed to increase from $1,283,662 (2017) to $1,323,646 (2018). A change of $56,886, 4.0%.

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No significant variation is expected in other revenues.

BUDGET FUNDING FORMULA The State College Borough and College, Ferguson, Halfmoon, Harris, and Patton Townships’ share of the COG library appropriation is determined by their share of the total Centre Region circulation (number of items checked out). The Library’s computer system tracks the number of items checked out to persons living in the municipalities the Library serves, and the annual proportions are based on a full year count. Individual municipal shares vary annually due to changes in usage during the count period. This budget reflects usage counts from July 1, 2016 to June 30, 2017. The formula was modified by the General Forum during its February 27, 2017 meeting as to base municipal contributions on a three year average of municipal shares.

2018 Summary Budget – Library Operating

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Donations to the Library are expected to reach $288,000 based on record-high receipts in 2016 and 2017.

Expenditures: Total expenditures are expected to increase 3.8%. State standards: Schlow Library is a District Center Library, and must meet two significant state standards. The Library must spend a minimum of 12% of expenditures on library materials and has budgeted accordingly for 2018, with an increase of $11,000 for book and media expenditures. It must also be open 65 hours per week. The Library will maintain its current schedule of an average of 61 hours per week for 2018 and request a waiver. Commonwealth Libraries has been granting waivers from state standards in these times of reduced funding. Personnel: Personnel costs, including District-paid employees will be adjusted in accordance with COGâ&#x20AC;&#x2122;s compensation practices. As endorsed by the Human Resources Committee, the part-time library assistants will be adjusted to the first step of similar fulltime positions. Materials: The Library will spend 12% of its 2018 Budget on books, media, and processing materials. Expenditures have been level for several years but will be increased for 2018 because of higher community donations. Building: Prices continue to rise annually for building janitorial, landscaping, security, HVAC monitoring, and other maintenance contracts and supplies. The building is aging and is 12 years old as of October 2017. In addition, the building is very heavily used by the public. Over 350,000 people are expected to visit the Library during 2018.

2018 Summary Budget â&#x20AC;&#x201C; Library Operating

COG LIBRARY CAPITAL FUND MISSION

PROGRAM BACKGROUND

The purpose of the Library Capital Fund is to finance the replacement and/or improvement of major capital items (e.g. roof, windows), operating systems (e.g. HVAC, plumbing), equipment, and technology hardware and software at the Schlow Centre Region Library.

The Library Capital Fund is used for building improvements, repairs, furnishings, and technology purchases. Revenue is received from municipal contributions, endowments, estate and large gifts, and interest. A Capital Improvement Plan has been developed to anticipate major needs and expenditures.

POLICY OVERSIGHT The Schlow Library Board of Trustees has historically provided oversight for the Library’s Capital Budget in cooperation with the COG. The state Library Code specifies that library boards are to control and disburse funds, adopt operations rules and regulations, and contract for cooperative services. Schlow Library is a tax-exempt, non-profit organization and an instrumentality of local government; it must abide by the state Library Code and regulations. All Schlow Library Board members are appointed by the Centre Region municipalities that provide financial support to the Library. Each municipality has one or two representatives on the Board, depending on population and seat rotation. Staff oversight for this fund is provided by the COG Executive Director, the COG Finance Director, and the Library Director.

2018 Summary Budget – Library Capital

Schlow Centre Region Library Board of Trustees – 2017 Maureen Welesko, President Ron Filippelli, Vice President David Thiel, Treasurer Virginia Squier, Secretary Marilyn Byers Ralph Licastro Casey McClain Kathleen Shannon Lewis Steinberg

College Township State College Borough Harris Township Halfmoon Township Harris Township State College Borough Patton Township Patton Township Ferguson Township

BUDGET

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Renovations: $180,000 – Carpet replacement, painting, and updates and repairs to public and staff areas are scheduled and subject to change based on the facility assessment.

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Contingency: $50,000 – Unanticipated or high priority work defined in the facility assessment.

REVENUE Historically, revenue for the Library Capital Fund has come from municipal contributions, endowments, estate and large gifts, and interest. Beginning in 2016, the Library requested a major increase in municipal contributions to the fund, as those contributions had been minimized for over a decade due to a successful capital campaign in 2005. The Schlow Library Foundation is assisting in increasing planned and major gifts for capital needs as the fund is drawn down. The 2018 beginning year fund balance is projected to be $610,232. For the upcoming newyear, combined municipal contributions are proposed to total $80,000, no change from 2017 EXPENDITURES

The Library has major replacement purchases scheduled in the COG Capital Improvement Plan (CIP), but does not replace or repair until it is absolutely necessary. The following projects have been reviewed and proposed for 2018 but are subject to change based on the findings of a facility assessment being completed in late 2017 that will evaluate the condition and age of electrical, plumbing, and other library systems. 

Website update: $20,000 – Security, bug fixes and performance improvements.

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Remote bookdrop replacement: $20,000 - Two popular offsite bookdrops are rusted and must be replaced.

2018 Summary Budget – Library Capital

COG CENTRE REGIONAL PLANNING AGENCY MISSION The Centre Regional Planning Agency (CRPA) guides regional and municipal efforts to create and sustain a vibrant, healthy, and economically diverse community by providing professional land use planning services that educate and inspire people to make the Centre Region a great place to live.

The COG General Forum and the Transportation and Land Use Committee also provide primary oversight and policy direction on regional planning matters. The Public Services and Environmental Committee provides additional oversight on issues such as the Act 537 Plan, the Sewage Management Program and beneficial reuse. STAFF SUPPORT

The Centre Regional Planning Commission (CRPC), composed of representatives of each Centre Region municipality and Penn State University, assists the Centre Region municipalities in achieving their future community goals by offering a full range of professional planning services provided through the Centre Regional Planning Agency.

A total of 6.9 full-time equivalent staff positions support the mission of the CRPA. The staff includes a portion of the Planning Director, Office Manager, and GIS Planner positions, 1.0 Principal Planner, 3.0 Senior Planners, and .9 Planner position. The CRPA divides time between regional and local planning services 4.2 full-teim equivalent staff positions dedicated to regional planning and 2.7 full-time equivalent positions assigned to local planning activities.

Centre Regional Planning Commission â&#x20AC;&#x201C; 2017

PROGRAM BACKGROUND

Lisa Strickland, Chair Jon Eich, Vice Chair Bill Stuedler Mike Brown Roy Hammerstech Robert Hoffman Steve Watson

The CRPA offers comprehensive planning services in functional areas such as land use, environmental protection, transportation, land development review, and ordinance preparation. These services balance competing needs, desires, and resources for the overall long-term development and improvement of the community. The CRPA tailors its planning assistance to the member municipalities to meet both regional and local planning needs.

POLICY OVERSIGHT

Ferguson Township State College Borough Patton Township Halfmoon Township Harris Township College Township Penn State University

2018 Summary Budget â&#x20AC;&#x201C; Planning Agency

Regional planning responsibilities include preparing the Centre Region Comprehensive Plan and Act 537 Sewage Facilities Plan, administering the Regional Growth Boundary (RGB) and Sewer Service Area (SSA), managing the implementation of these plans, coordinating other regional plans and projects, assisting in the resolution of inter-municipal planning challenges, and maintaining the Regional Development Capacity (REDCAP) Report. The CRPA also facilitates the preparation of model ordinances for the region.

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The CRPA may work with the UAJA to update the Act 537 Plan in 2018. This is currently listed in the 2018 Program Plan. The Agency has also been asked to work on a potential integrated water resources management plan in 2018. Some initial planning will be completed in 2017.

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Preparation of the Redevelopment Capacity Report to better understand where there is redevelopment potential inside the RGB and SSA and to assess some of the regional impacts of redevelopment on parcels that are not vacant.

Local planning responsibilities may include technical assistance in the development, interpretation, and administration of land use regulations, review of subdivision and land development plans and rezoning requests, and the provision of geographic information and mapping services to member municipalities.

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Hiring a full-time Sustainability Planner to help develop and potential implement region-wide sustainability initiatives and programs.

REGIONAL PLANNING

The following municipalities purchase local planning services from the CRPA which are expressed in terms of a percentage of one full-time equivalent (FTE) planning position:

All six Centre Region municipalities participate in the Regional Planning Program. Services provided to the municipalities include: 

Implementation of the Centre Region Comprehensive Plan. The Pennsylvania Municipalities Planning Code requires that comprehensive plans be reviewed every ten years. The General Forum adopted the updated Comprehensive Plan in November 2013.

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Managing the regional review of the process for Development of Regional Impact (DRI) Applications. An amended Centre Region Growth Boundary and Sewer Service Area Implementation Agreement was adopted at the end of 2013 and will be updated in 2018.

2018 Summary Budget – Planning Agency

LOCAL PLANNING

Local Planning Services (% of FTE) Municipality College Township Halfmoon Township Harris Township Patton Township

2017 100% 40% 40% 50%

2018 100% 40% 40% 50%

Municipal contributions to the Local Planning Program also finance a portion of the compensation for the Planning Director, Office Manager, and part-time Staff Assistant, as well as a portion of the CRPA’s operating expenses and Geographic Information System (GIS) Program.

Major local planning services offered by the CRPA include: 

Reviewing subdivision and land development applications to ensure compliance with municipal regulations and providing design recommendations based on sound planning principles.

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Reviewing and analyzing rezoning requests within the member municipalities.

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Providing GIS mapping services and graphics in support of municipal planning activities.

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Completing special planning studies, drafting ordinances, and coordinating amendments to zoning and subdivision regulations to keep them current.

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Providing staff support to municipal planning commissions.

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Capital improvements being proposed for 2018 include $7,250 a computer and large format plotter.

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Operating expenses in 2018 are anticipated to be $109,107, a decrease of $18,842 from the 2017 due to the Code Office taking some underutilized space near the back exit door of the Planning Agency suite.

BUDGET The purpose of this budget is to fund the operation of the CRPA, which provides regional planning services to all six Centre Region municipalities and local planning services to four municipalities (College, Halfmoon, Harris, and Patton Townships). BUDGET HIGHLIGHTS 

The 2018 CRPA Budget at Revenue is $795,065, which is an increase of $7,250 from the 2017 Budget.

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Budgeted municipal contributions increased from $560,196 in 2017 to $571,054 in 2018.

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The 2018 budget proposes to increase the Centre County contribution from $126,500 (2017) to $129,000 (2018), a change of $10,858, 1.9%.

2018 Summary Budget – Planning Agency

COG CENTRE COUNTY METROPOLITAN PLANNING ORGANIZATION MISSION

CCMPO Coordinating Committee – 2017 Voting Members

Federal law requires local and state officials in all designated urbanized areas of the United States to maintain a cooperative, continuous, and comprehensive transportation planning program. In Centre County, this requirement is fulfilled by the Centre County Metropolitan Planning Organization (CCMPO), which is responsible for long-range transportation planning and programming of federal and state funds for surface transportation projects.

Jeff Luck, Chair Michael Pipe Mark Higgins Eric Bernier, Vice Chair Janet Whitaker Barbara Spencer Frank Harden Theresa Lafer David Wise Richard Watters Jack Shannon Ken Hall Dick Decker Jadine Reese John Spychalski Jon Eich Larry Shifflet Karen Michael

POLICY OVERSIGHT The policy-making body of the CCMPO is the Coordinating Committee, which is responsible for the transportation planning activities mandated in federal laws and regulations. The Coordinating Committee includes voting and non-voting members from county and local government, public agencies, and the Pennsylvania Department of Transportation (PennDOT). A Technical Committee comprised of members from the same organizations provides advisory comments and recommendations to the Coordinating Committee.

CCMPO Coordinating Committee – 2017 Non-Voting Members Matt Smoker TBD Rob Cooper

2018 Summary Budget – Centre County MPO

Patton Township Centre County Centre County College Township Ferguson Township Halfmoon Township Harris Township State College Borough Nittany Valley Region Lower Bald Eagle Valley Region Moshannon Valley Region Mountaintop Region Penns Valley Region Upper Bald Eagle Valley Region Centre Area Transportation Authority Centre Regional Planning Commission PennDOT Central Office PennDOT District 2-0 Office

Federal Highway Administration Federal Transit Administration Penn State University

STAFF SUPPORT The Centre Regional Planning Agency (CRPA) provides staff support to the CCMPO with 4.10 full-time staff equivalents (FTEs): Agency Director (15% MPO) Office Manager (50% MPO) Principal Transportation Planner Senior Transportation Planners (2) Planner - GIS (35% MPO) Planner (10% MPO)

0.15 position 0.50 position 1.00 position 2.00 positions 0.35 position 0.10 position

In addition, Centre County provides a full-time transportation planning position that is dedicated to the CCMPO and staffed by the Centre County Planning and Community Development Office (CCPCDO). The Centre Area Transportation Authority (CATA) also provides staff services to support the CCMPO. PROGRAM BACKGROUND The CCMPO is responsible for coordinating transportation planning efforts throughout Centre County. The CCMPO works closely with PennDOT and CATA to identify and prioritize transportation improvement projects in Centre County. The Centre Region MPO was formed in 1982 and succeeded the Centre Region Area Transportation Study (CRATS), which had been responsible for conducting long-range transportation planning in the State College area in the 1970's. Effective January 1, 2004, the MPO expanded its boundary and membership to include five additional planning regions in the County; it is now formally recognized as the Centre County MPO (CCMPO).

2018 Summary Budget – Centre County MPO

Effective in 2012, the voting membership of the CCMPO Committees was expanded from 19 to 20 with the addition of one new member, the Nittany Valley Planning Region, which collectively represented Bellefonte Borough and Marion and Walker Townships. At that time, Bellefonte Borough’s non-voting membership was eliminated. In 2014, the voting membership was changed from 20 to 19 members when Spring Township withdrew as an individual voting member and local funding partner. The voting membership was changed again in 2016, going from 19 to 18 members after Benner Township withdrew as an individual voting member and local funding partner. Benner and Spring Townships are now part of the Nittany Valley Region. LEGISLATIVE MANDATES The Federal Aid Highway Act of 1962 requires that in all urbanized areas with populations over 50,000 persons, local and state officials work cooperatively to maintain continuous and comprehensive long-range transportation planning programs. This federal mandate is carried out by a "metropolitan planning organization (MPO)." The federal Fixing America’s Surface Transportation (FAST) Act of December 2015 and federal metropolitan transportation planning regulations specify the primary roles and responsibilities of MPOs, which include long-range transportation planning, development of short-range Transportation Improvement Programs (TIPs), and public involvement efforts. The FAST Act and federal regulations specify MPO planning activities and establish the required processes for these activities. The preparation of a Unified Planning Work Program (UPWP) is a required element of federal metropolitan transportation

planning regulations. In early 2016, the CCMPO adopted the fiscal year 2016-2018 UPWP. The UPWP lists the transportation planning activities to be completed by the CCMPO between July 1, 2016 and June 30, 2018. In February 2018, the CCMPO will adopt the new fiscal year 2018-2020 UPWP, which will take effect on July 1, 2018.

In 2018, the amount contributed by the six Centre Region municipalities will decrease by 4.2%, and the amount

BUDGET The purpose of this budget is to fund the operation of the CCMPO. As the lead agency providing staff support to the CCMPO, CRPA staff members develop and maintain the Long Range Transportation Plan (LRTP) and prepare the short-range Transportation Improvement Program (TIP), which authorizes the expenditure of federal and some state funds for projects. Staff members also administer the CCMPO’s UPWP; complete public involvement tasks for the development of the LRTP and TIP; and provide assistance to municipalities and other agencies in transportation planning and project development activities. BUDGET HIGHLIGHTS 

The amount of base federal and state planning funds provided by PennDOT will remain the same in 2018. An increase in the base amount of federal and state funds is anticipated in 2019.

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No supplemental planning funds from PennDOT are currently allocated in 2018, but may be requested and allocated at a later date.

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Contributions from Centre County Government and the six municipal funding partners were calculated based on the local share funding formula approved by the CCMPO in May 2013.

2018 Summary Budget – Centre County MPO

allocated to Centre County will decrease by 4.6%. The decrease in County and municipal shares is occurring because there is a substantial fund balance anticipated at the end of 2017. 

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CATA’s funding share will decrease substantially in 2018. However, the decrease will be offset by the elimination of a $12,500 pass-through of federal funds from CRPA to CATA, resulting in a revenue-neutral change. Starting in 2018, CATA’s local share will be determined by the amount of nonfederal funding needed to match federal transit planning funds provided by PennDOT.

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Operating expenses will decrease by 8.2% in 2018. Operating expenses include expenditures for the transportation planning services provided by Centre County. The decrease is primarily because of changes in office space allocation in the COG Building, which reduces the MPO’s rent and share of other building-related expenses.

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Expenditures for vendor services on special projects will decrease substantially in 2018 because there are currently no special projects planned that would use outside consulting services.

The 2018 Budget is the fourth budget to use an approach that documents the full value of transportation planning services provided by Centre County Government. Centre County has historically committed one full-time staff position to CCMPO transportation planning activities. The full cost of County services, including labor and overhead, is included as an expenditure in the CCMPO Budget. This expenditure offsets a portion of the County’s revenue allocation. The net cash revenue from Centre County is expected to total $31,926 in 2018. This approach allows charges for County services to be included on the CCMPO’s invoices to PennDOT, which provides access to additional revenue sources and greater flexibility in assigning staff to CCMPO work tasks.

2018 Summary Budget – Centre County MPO

COG REGIONAL FIRE PROTECTION PROGRAM MISSION The mission of the Regional Fire Protection Program is to maintain a primarily volunteer fire company to provide fire, rescue, and related services to the Borough of State College, the Townships of College, Ferguson, Patton, a small portion of Benner, and the University Park Campus of Penn State University, and to provide the support and assistance needed to assure the delivery of quality services. POLICY OVERSIGHT The area served by the Alpha Fire Company consists of University Park, the Borough of State College, and the Townships of College, Ferguson, and Patton. A portion of Benner Township is also included in the Fire Company’s area of responsibility. Responsibility for a portion of College Township was transferred to the Boalsburg Fire Company in 1998 because of this area’s proximity to the Boalsburg Fire Station. In 2007, a Fire Director was selected by the COG to head the Regional Fire Protection Program. The Fire Director reports to the COG Executive Director. The Fire Chief is selected by the Alpha Fire Company and is confirmed by the COG General Forum. The Fire Chief provides direct supervision of the operations of the Company and is responsible, under the direction of the Fire Director, for the safe and effective operation of the Company during emergency and non-emergency incidents. 2018 Summary Budget – Fire Operating

Funding for the Fire Company is provided primarily through the COG Budget. Additional funding, regulated by state law is provided by the State College Firemen’s Relief Association. The Alpha Fire Company periodically solicits donations to provide for volunteer amenities and acts of goodwill. The Fire Company and the Relief Association are both charitable corporations. The COG provides administrative assistance to the Company and is the vehicle by which the participating municipalities provide financial support to the company. Penn State University also provides an annual contribution through the COG budget process. The Office Manager who works under the direction of the Fire Director provides a variety of support services to the Company. The Assistant Chiefs are responsible for fleet management, firefighter and driver training, public education coordination, and the maintenance of durable equipment. The Equipment Technician is primarily responsible for calibration and maintenance of equipment and management of the incident preplan program. With the exception of the Office Manager, all career personnel respond to emergencies.

STAFF SUPPORT Full-time: Fire Director Assistant Chief, Operations and Field Services Assistant Chief, Operations and Training Equipment Technician Office Manager Volunteers: 94 Firefighters 10 Fire Police 6 Associate Members EQUIPMENT The apparatus assigned to the Alpha Fire Company is owned and insured by the COG. See Fire Protection Capital Budget for equipment listing. The Regional Fire Protection Program provides part of the carried equipment used by the Company with the remainder owned by the State College Firemen’s Relief Association or Alpha Fire Company. PROGRAM BACKGROUND In 1899, members of the community organized the Union Fire Company. A year later, the name was changed to the Alpha Fire Company (hereinafter called the Company). According to the Company charter, "The purpose for which the Corporation is formed is to save, rescue, and preserve the lives and property of the citizens of State College from injury and destruction by fire." Over the years, the mission has expanded to include rescue and other emergencies in

2018 Summary Budget – Fire Operating

addition to fire. It has also been broadened to encompass three additional Centre Region municipalities. Within a few years of its establishment, the Company raised enough money to purchase land to build a fire hall on Fraser Street in State College Borough. That building was later replaced, and subsequently became the State College Municipal Building. In 1974, the Company moved to the new Public Safety Building that was constructed by State College Borough and located at the corner of Beaver Avenue and Atherton Street. A parcel of land located immediately adjacent to the Public Safety Building was purchased by the municipalities in 1983 to be used as a parking lot for Company members. In the early 1970s, development in College, Ferguson, and Patton Townships increased, and the Borough of State College became more urbanized. Fire and rescue services were extended to the western portion of Benner Township (Independent Rock Road Area) in 1978. In 2001, a new 8,000 square foot fire station was opened on Green Tech Drive in Patton Township. A third station opened in 2002 at the College Township municipal building. All three stations are configured and equipped to accommodate “live-ins” and overnight crews. Regional Fire Protection Program Facilities: Main Fire Station, State College Borough Satellite Fire Station, Patton Township Satellite Fire Station, College Township In 2016 the Company responded to 1,307 incidents.

FIRE MARSHAL The Regional Fire Protection Program also includes six volunteer Fire Marshals. These individuals are specially trained to investigate the origin and cause of all types of fires and explosions. Fire Marshals are drawn from the ranks of other agencies including law enforcement, fire, and codes. HAZMAT Since 2009 the Regional Fire Protection Program has taken an active role in the management of the Penn State Hazmat Team. The team operations are solely funded by Penn State with limited aid from PEMA. The team handles hazardous materials incidents throughout the region and county. The Regional Fire Protection Program and Penn State Hazmat regularly share personnel and equipment. This relationship has proven beneficial to both Hazmat and Fire.

BUDGET The Regional Fire Protection Budget funds the operation of the Alpha Fire Company and the Centre Region Fire Marshals. BUDGET HIGHLIGHTS 

The projected January 1, 2018 fund balance is forecast to be $55,154. The fund balance is comprised of unspent contingency funds ($40,000) and the timing of items purchased in 2017 but actually paid for in 2018.

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Municipal contributions are proposed to increase from $902,951 (2017) to $1,019,262 (2018), a change of $116,311, 12.9%. This increase is due to the creation of the Equipment

2018 Summary Budget – Fire Operating

Technician position and an increase in the expense reimbursement stipend awarded to the volunteers. Absent these two items the budget was held to a 2.4% increase. 

The Fire Program request for recruitment funds is slightly decreased for 2018. The award of a federal SAFER grant will be providing funding for new initiatives in recruitment.

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In accordance with COG directives family heath care coverage has been budgeted for the Equipment Technician position.

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Fire protection costs (per capita) for those participating in the Regional Fire Protection Program continue to be significantly below state and national averages. This holds true even if the student population is not included in the per capita calculation.

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The contribution paid by Penn State University will increase by the same percentage as the municipalities.

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The combined total expense reimbursement stipend annually awarded to volunteer firefighters and fire police is proposed to increase from $58,000 (2017) to $89,600. This increase is proposed to incentivize and improve recruitment and retention of volunteers. The discussion of this proposed increase as well as additional future increases has started with the Fire Director giving presentations to the individual governing boards/council regarding past and future trends relating to the volunteer fire service. Looking ahead, during 2018 groups with the COG (Public Safety Committee, Municipal Managers, and COG staff) will investigate in more detail the concept of further increases to the stipend to as much as $5,000 a year. The current maximum annual stipend is $584 with the 2018 budget proposing an increase to $1,128. This concept will also be reviewed with the COG Solicitor and

specialized legal counsel to ensure that the best decision is made.

2018 Summary Budget â&#x20AC;&#x201C; Fire Operating

COG FIRE PROTECTION CAPITAL FUND MISSION The Capital Budget for the Regional Fire Protection Program was established by the participating municipalities to purchase vehicles needed for regional fire protection activity and maintain fire stations. The Capital Budget provides for regular predictable contributions for the large and planned yet irregular expenditures. POLICY OVERSIGHT The COG Public Safety Committee provides policy oversight for the Regional Fire Protection Program. The COG Finance Committee provides oversight for the Regional Fire Protection Capital Budget. Changes to the Capital Budget are recommended by the Fire Director in consultation with the Alpha Fire Company Chief and President. The State College Borough and College, Ferguson, Patton, and Benner Townships, as well as Penn State University, provide contributions to the capital fund. The University’s contribution is 25% of the total annual contribution for vehicles and 9% for building capital; the participating municipalities contribute the remaining balances. Expenditures are made according to the COG Capital Improvement Program (CIP). The CIP is a 25-year projection that is updated and extended each year. Its purpose is to accrue funds, adjusted for inflation, for vehicle replacements and refurbishments; and fire station repairs and improvements. The CIP projects both replacement costs and revenues for the 252018 Summary Budget – Fire Capital

year period. The current year of the CIP becomes the basis for the Fire Capital Budget. EQUIPMENT The apparatus assigned to the Alpha Fire Company is owned and insured by the COG. One engine, a tanker, utility, and an aerial are assigned to the Patton Township station; an engine, a quint, and a foam trailer are assigned to the College Township station; the remaining apparatus is assigned to the main fire station in State College Borough. Engine: Sometimes called a pumper, it carries fire hoses, nozzles, ladders, tools, and water. Three engines also carry equipment to handle vehicle accidents. Quint: This vehicle is a pumper with an attached aerial device that is usually 75 feet or less. The aerial device on the Centre Region’s quint is 75 feet. Aerial: Also known as a truck, ladder truck, aerial truck, tower truck, or platform. The common factor in all aerial apparatus is a vehicle-mounted device that will extend to a height of 65 feet or more and is used for access by firefighters, the rescue of trapped victims, and the provision of elevated master streams. The reach of the two Centre Region aerials are 75 feet and 102 feet.

Tanker: Also known as a Tender, it is a mobile water supply apparatus which carries 1,500 to 3,500 gallons of water. Tankers are used primarily to supply water to locations that are not served by fire hydrants. The Centre Region tanker capacities are 2,100 gallons and 3,000 gallons.

Fire Police Unit: The Company’s Fire Police operate two traffic control vehicles. Alpha Fire Police assist the Fire Company, state, and local police departments with traffic and pedestrian control at various incidents. These vehicles are designed specifically for this purpose.

Rescue Unit: The Centre Region Rescue Unit has two different roles that are determined by the type of incident. For rescue mode, the unit carries a large variety of tools and equipment which are used to extricate victims. At a fire incident, the rescue unit is the primary source of air for self-contained breathing apparatus and provides tools and personnel for the RIT (Rapid Intervention Team). This vehicle also carries a large generator to supply electrical power at an incident scene.

Special Unit: The Special Unit (SRU) is equipped with a small water tank and skid style forestry fire pump. It is used primarily for handling brush and nuisance fires, but is also configured to readily enter the parking garages and decks in the Borough and on campus. This unit was procured at a significant discount through Penn State.

Command Unit: Equipped with several radios to permit communication with all surrounding fire companies and State College and Penn State University police, this unit also carries maps, charts, plans, manuals, and other vital information. Many calls for non-emergency services are handled using the Command Unit. Chief’s and Director’s Vehicles: Sedans are assigned to the Fire Chief and the Fire Director. There is a Memorandum of Understanding between the Fire Chief and the COG regarding its use. These vehicles are capable of providing command support. Utility: The Company operates two general purpose pick-up trucks. Both are used to transport personnel, tools, and equipment to training events, incidents, and between fire stations. These units are also used by Fire Police to block intersections or restrict traffic.

2018 Summary Budget – Fire Capital

All-Terrain Vehicle (ATV): In 2011, Penn State Athletics provided the COG with an ATV which is equipped for fire suppression. This unit is used at large events throughout the community and it responds to certain brush fires, nuisance fires, and vehicle fires. No funds are being accrued for the replacement of this unit. Decisions on the replacement of this unit will be handled independent of the 25-year Capital Plan. Foam Trailer: In 2005, the Company agreed to take possession of a specialized trailer that was designed for the suppression of fires that involve flammable liquids such as gasoline and ethanol. This trailer was federally funded through the region’s terrorism task force and no funds are being accrued for the replacement of this unit. Replacement is expected to be handled through the regional task force. Decon Trailer: In 2015 the Company agreed to take possession of a specialized trailer that was designed to decontaminate people exposed to chemicals, radioactive materials, or biological materials. This trailer was federally funded through the region’s

terrorism task force and no funds are being accrued for the replacement of this unit. Replacement is expected to be handled through the regional task force. PROGRAM BACKGROUND Capital Program needs are identified by the Fire Director with input from the Fire Company. The program is approved by the Fire Director, the COG Executive Director, and the General Forum. The annual Fire Capital Budget is developed from information contained in the Capital Improvement Program. The Capital Budget provides for the purchase of equipment in the budget year. Equipment to be purchased is reviewed by the Fire Company officers and Fire Chief, the Fire Director, the COG Executive Director, the COG Public Safety Committee, and ultimately the General Forum. After the purchase of a new vehicle is approved, the Assistant Chief of Field Services, with input from the Fire Company, the Fire Chief, and the Fire Director, prepares specifications and initiates the bidding process or a cooperative bid purchase through the Commonwealth of Pennsylvania.

2018 Summary Budget â&#x20AC;&#x201C; Fire Capital

APPARATUS REPLACEMENT COST 4 Engines @ $650,000 2 Aerials @ $1,200,000 1 Quint @ $1,000,000 2 Tankers @ $495,000 1 Rescue Unit 1 Command Vehicle 2 Utility Pick-up Trucks 2 Fire Police Vehicles 1 Special Unit/Brush Vehicle 1 ATV with Trailer 2 Chief Vehicles TOTAL

$2,600,000 2,400,000 1,000,000 990,000 650,000 75,000 90,000 250,000 85,000 65,000 68,000 $8,273,000

BUDGET In accordance with the joint Articles of Agreement for Fire, Rescue, and Related Services, this budget was established to provide funding to acquire the expensive rolling stock used by the Alpha Fire Company and to ensure the orderly and timely replacement of the apparatus and for the repair or improvement of major systems in the fire stations. The balance in the Fire Protection Capital Fund at the end of 2017 is estimated to be $725,863. BUDGET HIGHLIGHTS 

Municipal contributions ($263,772) and Penn State University contributions ($87,456) are proposed for 2018 for vehicle replacements, an increase of 2.6% from prior years.

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A 2005 Utility unit is slated for replacement in 2018. It will be retained for continued service due to the high demand for these vehicles and the very low resale estimates for disposal. In the event this unit needs a major repair it will simply be scrapped.

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The Command Unit used by Duty Officer was slated for replacement in 2018, but due to its good condition it will not be replaced before 2019.

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Building capital projects slated for 2018 include the replacement of rooftop HVAC units at the Patton Station which are nearing end of life.

2018 Summary Budget – Fire Capital

COG PARKS AND RECREATION OPERATING FUND MISSION To provide Centre Region residents with a variety of opportunities that enrich lives and build community. This is accomplished by providing opportunities through: • • • •

Recreation Education Health & Wellness Sustainability/Conservation

POLICY OVERSIGHT The policy oversight body for Centre Region Parks and Recreation (CRPR) is the Centre Region Parks and Recreation Authority, comprised of six members, one from each of the participating municipalities: the State College Borough, College, Ferguson, Harris, and Patton Townships. In addition, the State College Area School Board appoints a representative to the Authority. Centre Region Parks and Recreation Authority Board – 2017 Christopher Hurley, Chair Kathy Matason, Secretary Diane Ishler, Treasurer James Dunn Shannon Messick Denise Meyer*

Patton Township College Township Harris Township Borough of State College State College Area School District Ferguson Township

(*newly appointed in October, 2017)

2018 Summary Budget – Parks and Recreation Operating

The Active Adult Center’s Grand Opening was held in January, 2017— another CRPR Authority success story!

STAFF SUPPORT

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Year-round, full-time & part-time:

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Agency Director Recreation Services Manager Recreation Supervisor Sports Supervisor Aquatics Supervisor Nature Center Supervisor Nature Center Program Coordinator

Active Adult Center Supervisor Parks Manager Assistant Parks Manager Parks Caretakers I, II, III Office Manager Staff Assistants

In late 2017, a Parks Caretaker II position was reclassified to a level III position. Seasonal Staff and Volunteers (up to 175 positions): During the peak summer season, the CRPR Authority employs seasonal staff (part- and full-time) as program leaders, sports officials, aquatics staff, park maintenance workers, concessions staff, and camp leaders. In addition, volunteers play a supportive role in the operation of the parks, programs, and special events. SERVICES PROVIDED (AGENCY-WIDE) Community Recreation Programs  “Growing The Game” Summer Basketball League with Penn State Basketball  “Start Smart” Introductory Sport Programs  Youth Creative Art Programs  Youth Cross Country and Track Events  Summer Day Camps

2018 Summary Budget – Parks and Recreation Operating

Biking Programs with Centre Region Planning and Centre Bike Youth and Adult Fitness/Dance Classes Youth and Adult Tennis Programs Youth and Adult Nature Education Adult Sport Leagues: Softball, Volleyball, Flag Football, Bocce, and Tennis

Special Events              

Annual Halloween Costume Parade “So Long Summer Shindig” Celebration Easter Egg Hunts (2) Kids-on-Wheels Parade Camp Carnival Touch-a-Truck Expo Municipal Band Concerts Dive-In Movie Sunset Music & Movie In The Park “Pedal, Splash & Dash” Youth Triathlon MLB Pitch, Hit & Run Competition NFL Punt, Pass and Kick Competition Paws-A-Pool-Ooza Annual “Old Bag Auction”

FACILITY OPERATIONS (FOR 2017) Centre Region Parks and Recreation operates and maintains 56 sites (929 acres across five municipalities), to host both community and Agency programs, including:

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        

45 municipal parks plus three Regional Park sites (John Hess Softball Field Complex, Oak Hall Regional Park, Whitehall Road Regional Parklands) William Welch and Park Forest Community Swimming Pools (7.5 acres) Millbrook Marsh Nature Center (62 acres) Centre Region Active Adult Center at the Nittany Mall Three elementary school sportsfield sites (8.5 acres leased) 29 park pavilions available for group reservations 34 sportsfields utilized by CRPR and by Centre Region sports groups 20 tennis courts operated at 10 municipal parks COG Building landscape maintenance

SPECIAL INITIATIVES IN 2017  Agency website redesign: http://www.crpr.org  Active.Net Internet registration service  Branding and Marketing Plan  CRPR Gifts-for-Parks Program  CRPR Remembrance Tree and Bench Programs  CRPR MyVeteran/MyHero Tree Program  Centre Region “Park Partners” & Park Partner Workdays  Picnic pavilion and sportsfield reservations  Solid Waste Recycling Program in select parks  Discount Amusement Park tickets  Promotion of “CRPR, Your Recreation Destination”  Promote the benefits and availability of local recreation opportunities through “Good for PA” with the PA Recreation and Park Society  Participate and promote “July is Parks and Recreation,” an NRPA national initiative

2018 Summary Budget – Parks and Recreation Operating

 

Promote community partnership and fundraising opportunities for programs, events, and facilities Continue the CRPR Child Safety Policy

REGIONAL PARK OPERATIONS Since the operations of the three Regional Parks are integrated into the Agency maintenance and programming efforts, this fund includes all operational expenditures and revenue for those parks. New for the 2018 budget are cost centers that show a direct revenue/expense relationship for these areas, including the Parks Maintenance Division. A goal for the Regional Parks Initiative is to recover direct operational costs from hosted events, which is a multi-year process. Through the combination of the John Hess Softball Field Complex and Oak Hall Regional Park, along with a number of satellite fields, the Centre Region has become a premiere tournament destination in Central Pennsylvania.

CRPR received a grant to purchase Strider Bikes and created the Lil’ Striders Learn to Ride program, which was a very successful program all year.

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AGENCY REVENUE POLICY The 2018 budget proposal continues the long-standing goal that recreation programs/classes, leagues, camps, and concessions, in total, must generate sufficient revenue to offset their direct operational expenses. The fees for CRPR programs are reviewed annually, and adjusted as needed, to cover related expenses. The continued reduction in available indoor facility space for CRPR programs at State College Area School District and other community facilities has limited both program offerings and the associated revenue. It is likely that this trend will continue as indoor space needs increase and available space decreases. CRPR Staff continues to seek new spaces to host indoor programs and events, including churches, community rooms, and similar spaces. The opening of the new Centre Region Active Adult Center will allow some CRPR programs to occur when the Active Adult Center programming is not in session. This will alleviate some of the strain felt by the adult fitness programs as well as some of the youth programs. In turn, it will add to the Active Adult Center’s revenue through Facility Rental revenue. Park maintenance is now offset by both sportsfield and pavilion rentals as well as adult leagues and tournaments, and municipal contributions while administrative expenses are primarily offset by municipal contributions and donations.

BUDGET FUNDING FORMULA

BUDGET HIGHLIGHTS

The funding formula for the Parks and Recreation Budget is based on the “Modified COG Formula” (not including Halfmoon Township).

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2018 Summary Budget – Parks and Recreation Operating

2018 municipal contributions of $1,370,842 are proposed for the Parks and Recreation Operating Budget. These

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contributions are now separated by cost center within this budget for Concessions, Summer Camps, Parks Maintenance, Parks Programs, and Parks Administration. Municipal contributions were reduced in 2018 by $67,160. The decrease is due to a higher than expected 2017 beginning year fund balance, higher income from concession sales than expected, and lower personnel costs because of turnover. This reduction can be attributed to: 1. A thorough review of spending trends analysis and better revenue predictions and tightening expenses were possible. 2. An overall increase in programming, rental, and tournament revenue. 3. Increased donations and sponsorships across the various cost centers, which help to offset expenses.

2018 Summary Budget – Parks and Recreation Operating

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The starting 2018 fund balance is expected to be $298,652 and the ending year fund balance is expected to be $36,951 (resulting from targeted Gift-for-Parks donations).

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In 2017, a Strategic Plan/Comprehensive Plan account was added to request $18,750 needed to provide a 50% funding match for a 2017 Department of Conservation and Natural Resources Grant Application for $75,000; this account is being carried forward in 2018 to request the remaining $18,750 to complete the 50% match. This grant is to complete a Centre Region Parks and Recreation Regional Comprehensive Plan.

PERSONNEL CHANGES 

There are no personnel changes in the Parks and Recreation Operating Budget for 2018.

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COG PARKS CAPITAL EQUIPMENT BUDGET fertilizer spreader, dethatcher, 15’ pull-behind mower)

MISSION The mission of the Parks Capital Equipment Budget is to track capital improvements for various facilities and the acquisition and scheduled replacement of motorized equipment, vehicles, and computers that are used by the Centre Region Parks and Recreation Authority (CRPRA).

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Two tow-behind sprayers

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One passenger van used for programs, camps, and staff

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Equipment trailers to haul tractors and equipment

EQUIPMENT INVENTORY The Parks Maintenance division oversees 56 park sites with 929 acres, including the Millbrook Marsh Nature Center and both community pools. Including the scheduled replacements and additions in 2018, the CRPR equipment inventory will consist of the following equipment used by nine full-time staff and up to 22 seasonal staff: 

21 mowing tractors (6’ to 10.5’ cutting width)

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20 pick-up trucks

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Two dump trucks (one ton)

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Three tractors (farm-type), one with front bucket loader

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Two skid-steer loaders

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Four ballfield drag units (infield groomers)

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Six utility trucksters

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Over 20 pieces of turf-maintenance equipment (slit-seeder, turf aerator, top dresser,

2018 Summary Budget – Parks Capital Equipment

Parks Maintenance hosts groups during the October 2017 Day of Caring event sponsored by the United Way. This group was helping with pavilion maintenance.

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BUDGET Municipal contributions totaling $153,900 are being requested in the 2018 budget to purchase new equipment or replace equipment that is needed to maintain an increasing number of facilities. This request is slightly lower than the 2017 budget. Multi-year projections are used to anticipate and prepare for future equipment purchases. The 2018 Parks Equipment Capital Budget is proposed to be used as follows: Vehicles and Turf Equipment The total amount that has been budgeted for vehicles and turf equipment in 2018 is $96,100 and includes: 

Replacement of 2004 Chevy Silverado 4 x 4 Truck (#202) for $28,000

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Purchase of new Turf Topdresser at $21,200

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Purchase of new ABI Field Pro Groomer at $16,000

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Replacement of Toro Groundmaster 328D (#172R) at $30,900

Computer Hardware and Software Two Agency computers (one desktop and one laptop) are scheduled for replacement in 2018 in the amount of $1,500. Buildings

2018 Year End Fund Balance The estimated 2018 year-end fund balance is $308,515, which will be used to fund scheduled replacements and additions per the 2018-2022 Capital Improvement Plan.

A project from 2017 is being carried forward into 2018 since it was not completed fully; this project includes which key/lock replacements and upgrades at various facilities; the amount earmarked for this project is $2,500.

2018 Summary Budget – Parks Capital Equipment

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COG AQUATICS PROGRAM

The mission of the Centre Region Parks and Recreation Aquatics Program is to provide safe, clean, and cost-effective public swimming facilities that allow for wholesome recreation opportunities for Centre Region residents. The Aquatics Program provides all ages with the opportunities to obtain aquatic and life-saving skills, and to improve physical health.

Welch and Park Forest Swimming Pools are open seven days per week, weather permitting, each summer from Memorial Day Weekend through Labor Day each year. In addition to recreational swimming times, organized programs are offered at each pool as well as at the State College Area High School Natatorium (rented), which is generally available on a year-round basis:

POLICY OVERSIGHT

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Youth Programs: swim lessons (group and individual lessons), diving lessons

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Adult Programs: fitness/lap swimming, fitness classes on pool grounds, Water Walking, SCUBA

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Certification Programs: American Red Cross Lifeguard Training, First Aid/CPR/AED for the Professional Rescuer

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Swim Teams: a competitive swimming program for youth, ages 6-18, is offered at both pools. The popular swim team programs teach teamwork, cooperation, and healthy competition.

MISSION

The Centre Regional Recreational Authority (CRRA) was originally established on January 18, 1970 by the Centre Region Council of Governments (COG) for the purpose of building and operating the community swimming pools. Since that time, the role of the Authority has expanded to include the Centre Region Active Adult Center, the Millbrook Marsh Nature Center, and the Regional Parks Initiative. In 2013, the entity was renamed the Centre Region Parks and Recreation Authority (CRPRA). STAFF SUPPORT Full-Time: Aquatics Supervisor & 50% of the salary and benefits of one full-time Staff Assistant Seasonal Employees (up to 150): Pool Managers, Lifeguards, Aquatic Instructors, Aquatic Aides, Front Desk Staff, Swim Team Coaches SERVICES PROVIDED

2018 Summary Budget – Aquatics Operating

 Welch Pool: 210 team members in 2017, up from 182 team members in 2016  Park Forest Pool: 207 team members in 2017, up from 196 team members in 2016 

Special Events: Pool Pass Photo Day, Dollar Days, Family Fun Nights, Pedal, Splash & Dash Youth Triathlon, Dive-In

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Movies, Wibit Themed Swims (in-water obstacle course), and the Annual Paws-A-Pool-Ooza. 

Pavilion and Funbrella reservations (during regular pool hours) and private pool rentals (after regular hours)

FACILITIES The renewed community swimming pools continue to be very popular, despite the fluctuations in weather. During the summer of 2017, the pools hosted 108,588 visits. In 2008, before renovations, total visits were 48,122. The pool schedules spanned approximately 100 days in 2017 (May 27 - September 4, including school-day operations). 2017 Pool Visits

Recreation Visits Instruction & Swim Team Visits 2017 Total Visits by Site 2017 Average Visits Per Day

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Welch 60,602

Park Forest 33,121

Total 93,723

8,023

6,842

14,865

68,625 686

39,963 399

108,588 1,085

renovation work, and the new facilities opened on May 28, 2011. 2017 will be the eighth summer in the new facility. Daily Admission 2017 Daily Entrance age 3 & under Daily Entrance age 4-10 Daily Entrance age 11+ After 5 PM (All ages) Scheduled Group Admission

Resident/Nonresident* $2/$3 $6/$8 $8/$10 $5/$7 $5

Season Passes 2017 Age 3 & under Age 4-10 & Age 65+ Age 11-64 For 5+ Family Member

Resident/Nonresident* $25/$38 $70/$105 $95/$143 $40/$60

* Since the pools’ capital costs are funded by residents of the Centre Region, an ongoing priority for the pools is to ensure that nonresidents are not admitted at the resident rates.

As noted previously, the CRPRA also schedules year-round instructional programs at the High School Natatorium, which is rented from the State College Area School District.

The original Park Forest Community Swimming Pool (located at 2100 School Drive in Patton Township) opened in 1970 and was partially renovated in 1991. The fully renewed facility opened on June 13, 2009. 2017 will be the tenth summer for the new facility.

POOL FEES

William L. Welch Community Swimming Pool (located at 670 Westerly Parkway in the State College Borough) was opened in 1959 and renovated in 1983. A water slide was added in 1987. The pool was closed during 2010 to complete

Because the pool fees remain affordable, the CRPRA Aquatic Programs are accessible to most Centre Region residents. Some of the proceeds from the Gifts-For-Parks programs assist resident youth who request scholarship assistance.

2018 Summary Budget – Aquatics Operating

The 2017 pool fees are listed in the next column; fees for the 2018 season will be established by the Authority Board during its November 2017 meeting.

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BUDGET The Aquatics Operating Budget funds pool operations and programming at the Welch and Park Forest Community Swimming Pools (summer) and the instructional programming offered by CRPR at the State College Area High School Natatorium (year-round). As in prior years, user fees and other revenue sources are projected to generate 100% of the cost of the Aquatics Program. Therefore, no municipal contributions are proposed for 2018.

Agency Staff will continue to assess the seasonal salaries to ensure that it remains competitive within the region for hiring lifeguards, managers, pool aides, swimming instructors, swim team coaches, etc. PERSONNEL CHANGES No new positions are proposed for 2018.

FUNDING FORMULA The funding formula for the Aquatics Program is based on a Modified COG Formula (does not include Halfmoon Township); as mentioned previously, no municipal contributions to this fund are proposed for 2018, which is the sixth year that contributions have not been needed. REVENUE 

Revenue from the two regional pools is expected to total $471,900 during 2018, with an additional amount of $19,350 from misc. revenue and programs at the SCASD Natatorium, for a projected total of $491,250 in 2018 revenue.

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The anticipated January 1, 2018 beginning year fund balance is $108,629; this figure is slightly lower in 2018 due to overall revenue from the 2017 season, which was quite wet and cool.

EXPENDITURES The operating costs for the two regional pools are projected to change very little from 2017 to 2018—an approximate change of only about $10,089.

2018 Summary Budget – Aquatics Operating

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COG AQUATICS CAPITAL BUDGET MISSION The purpose of the Aquatics Capital Budget is to fund renovations, improvements, and major repair projects for the William L. Welch and Park Forest Community Pools that serve the residents of the five participating municipalities. POLICY OVERSIGHT Policy decisions relating to the regional Aquatics Capital Budget are guided by the Centre Region Parks and Recreation Authority (CRPRA) that was established on January 18, 1970. While the Authority was created by the Centre Region Council of Governments (COG) for the purpose of swimming pool operations, its mission has been expanded to include the Millbrook Marsh Nature Center, the Centre Region Active Adult Center, and the Regional Parks Initiative. STAFF SUPPORT The Aquatics Capital Budget is administered by the Agency Director with the assistance of the Aquatics Supervisor. The Authority Board, the COG Parks Capital Committee, and the COG Finance Committee provide oversight on capital projects. PROGRAM BACKGROUND The CRPRA owns the Park Forest Community Swimming Pool property and leases the land for the William L. Welch 2018 Summary Budget â&#x20AC;&#x201C; Aquatics Capital

Community Swimming Pool. The Centre Region Parks and Recreation Agency (CRPR) operates both pools on behalf of the Authority. The original Park Forest Community Swimming Pool was opened in 1970 and renovated in 1991. That pool was closed on August An aerial view of Wm. L. Welch Pool (2015). 3, 2008 and reopened as a renewed facility on June 13, 2009. The original William L. Welch Community Swimming Pool opened in 1959 by a community organization and was transferred to the Authority in 1969. That facility was renovated in 1983; the waterslide was added in 1987; and on September 7, 2009 it closed for construction until its grand re-opening on May 28, 2011. POOLS LOAN FINANCING In 2008, the CRPRA established a line of credit that was guaranteed by the five participating municipalities up to $7.9 million to fund the two pool renewals. The actual draws on that loan totaled $6,672,000 and concluded in November 2011.

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For the first ten years of the twenty-year loan, the COG General Forum directed that the 2008 COG Modified Formula be used to distribute the debt service costs. The original annual loan commitment for the municipalities was $597,000. Due to savings on the pool renewals, this amount was reduced to $492,250. The amount was further reduced to $487,100 after the repayment schedule was changed to make principal and interest payments on a quarterly basis. The 2012 refinancing of the loan has changed that amount to a $446,624 annual obligation for loan repayment. The annual $446,624 loan repayment obligation amount may be reduced each year due to transfers from the Aquatics Operations Budget. For 2018 however, pool operations will not transfer any funding to this budget as a result of a very rainy and cooler 2017 swim season, affecting the overall numbers of swim admissions and pool passes sold. Therefore, the municipal repayment in 2018 will be $$446,619 (principal and interest).

POOL LOAN 

During its January 28, 2008 meeting, the COG General Forum authorized that an investment advisor be hired to determine the best way to finance the pool renewals. After reviewing the bids, the investment advisor determined the most cost-effective funding method was to accept a loan from Jersey Shore State Bank for up to $7.9 million at a 3.95% fixed rate for 20 years. As recommended by the COG Finance Committee, the proposal from Jersey Shore State Bank was authorized by the COG General Forum on March 19, 2008.

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In September 2012, the COG General Forum and the CRPRA were able to refinance the outstanding amount at a reduced interest rate for the same term. The best proposal was again submitted by Jersey Shore State Bank and further reduced future repayments.

BUDGET The Aquatics Capital Budget was established to fund major capital improvements to the two pools that are operated by the Centre Region Parks and Recreation Authority: William L. Welch Community Swimming Pool and Park Forest Community Swimming Pool. FUNDING FORMULA Per the original 20-year loan agreement, the funding formula changes in 2018 will be in place for the final 10 years of the loan agreement. Payments will now be based on the 2018 Modified COG Formula based on the action of the COG General Forum.

2018 Summary Budget – Aquatics Capital

Pool swimmers enjoy a sunny and hot day!

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BUDGET HIGHLIGHTS Revenue: 

2018 municipal contributions for debt repayment are proposed to total $446,619, which is the typical annual obligation for the debt; this amount is not offset in 2018 by any additional revenues from the Pools Operating Budget. Starting in 2018 and through the remaining 10 years of the loan, the debt repayment contributions are allocated according to the 2018 Modified COG Formula. Other capital improvements are funded using the Modified COG Formula for the current year.

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Municipal contributions for capital improvements are proposed to total $37,500.

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It is hoped that good weather and great attendance in 2018 will allow the Authority to provide additional funding that will allow for the transfer of funds that occurred in 2012-2014, 2016, and 2017 in order to reduce the scheduled debt service amounts paid by the municipalities.

Expenditures: 

A total of $446,619 is proposed for debt service ($98,939 interest + $347,680 principal).

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$10,000 for each facility ($20,000 total) is recommended by the aquatic consultants to help build a fund balance for future large scale projects; in 2018, the Agency earmarked $37,500 for capital improvement. Items designated for replacement in 2018 include:

2018 Summary Budget – Aquatics Capital

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At Park Forest Community Pool: o $6,000 is proposed for the purchase of replacement patio furniture and supplement existing features. o $4,500 is proposed for the replacement of a diving board. o It is planned to investigate options for a shade canopy for the top platform of the waterslide tower. A patio-type umbrella was used during the summer of 2017, but the Agency is looking for a permanent installation.

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At William L. Welch Community Pool: o $5,000 is designated to replace the automatic (submersible) pool vacuum.

The slides at Park Forest Community Pool are always popular.

o $12,000 is designated to replace the ultraviolet treatment system which is no longer functioning at full capacity. 

The proposed 2018 ending fund balance of $120,356 reflects the effort to provide funds for future repairs and improvements as well.

2018 Summary Budget – Aquatics Capital

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COG CENTRE REGION ACTIVE ADULT CENTER MISSION The mission of the Centre Region Active Adult Center is to provide a diverse menu of activities, events, and resources for adults, age 55 and over. POLICY OVERSIGHT The Centre Region Active Adult Center (formally Senior Center) is operated by Centre Region Parks and Recreation (CRPR) under the direction of the Centre Region Parks and Recreation Authority (CRPRA) with funding assistance provided by the Centre County Office of Aging. STAFF SUPPORT Full-time, Year-round:

Active Adult Center Supervisor Staff Assistant

Part-time, Seasonal:

Program Instructors Volunteers

SERVICES PROVIDED The Centre Region Active Adult Center hosts an extensive menu of programs, including a variety of educational, cultural, and recreational activities as well as health and wellness programs, meals, technology education, medical screenings, and social opportunities. Centre County remains an important partner in

2018 Summary Budget – Active Adult Center

Active Adult Center participants help in the Supply Drive held earlier in 2017! Hiding just behind them is quite a large stack of donations already received!

the Center’s operations by providing transportation services for individuals who are unable to secure private transportation, coordination of the meals contract, and providing funding assistance. During 2017, the County provided approximately 27% of the operating budget funds including $5,000 toward debt service. The following services are provided at the Active Adult Center: 

Serving nutritious lunches five days per week, year-round

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Offering year-round programs that promote the social, mental, and physical well-being of older adults by providing opportunities for participation in group activities that promote independence, lifelong learning, socialization, physical and mental fitness, emotional well-being, and opportunities for creative expression

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Coordinating Centre County van transportation

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Serving as a resource for the Aging Services network

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Serving as a leader for aging adults to learn about and gain access to services that are intended to help them remain active and involved community residents

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Coordinating activities with community partners including the Retired and Senior Volunteer Program (RSVP), the Penn State University Healthy Aging Department, the Osher Lifelong Learning Institute (OLLI), and many other local businesses.

PROGRAM BACKGROUND The Centre Region Council of Governments has operated a Senior Citizen Center since 1975. In its infancy, the Senior Center operated three days per week from a church basement on Easterly Parkway with part-time staff. Due to space and time constraints, programming at the facility was limited to primarily serving noontime meals. In 1986, the Senior Center moved to the Fraser Plaza, and the Centre Regional Recreation Authority (now known as the CRPRA) was named its administrative agency. During 2004, the Senior Center was renovated and expanded to include the former CRPR offices. In 2015, the Center relocated to an interim space at the Nittany Mall while the planning and design of the permanent site (also at the Nittany Mall) were 2018 Summary Budget – Active Adult Center

completed in late 2015. Construction took place throughout 2016 and the Center held its Grand Opening in January, 2017. Upon opening at the permanent site, the Center was renamed the Centre Region Active Adult Center. The Active Adult Center’s philosophy is to “coordinate and provide a wide variety of health and wellness, recreation, and education options to satisfy the needs of active adults, and to let them choose what is best for them.” The majority of full-service programs are offered by volunteers who share their wealth of knowledge, talents, experiences, and time to enhance the lives of adults, ages 55+, in the Centre Region. Volunteers and community service initiatives are an integral part of Center operations while Center Staff continue to increase cost-saving efforts. The Center is committed to serving Centre Region adults with a wide variety of programs for participants of all ages, interests, and abilities as well as daily meals. After 30+ years of full-service operations, the Center entered a new era of service levels upon moving to the new, easilyaccessible location. The Center’s vibrancy is peaking now with the Center’s staff members’ ability to provide new and current programs in Center Participants enjoyed a great outing to watch the State a much larger College Spikes at Medlar Field.

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space; the success is easy to see with the residents and nonresidents from the Centre Region who attend on a regular basis.

BUDGET Proposed 2018 Revenue Sources 

49% from municipal contributions (includes contributions for debt service): $157,281

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31% from the Centre County Office of Aging (includes contributions for debt service): $98,547

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15% from the fund balance (unrestricted and Phase II improvements): $49,611

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5% from patron fees, sponsors, grants, and donors: $16,250

The budget for the operation of the Centre Region Active Adult Center is based on a long-standing partnership between the Centre Region COG and the Centre County Office of Aging. The municipalities that participate in this program are the State College Borough and College, Ferguson, Harris, and Patton Townships. In other areas of Centre County, the county exclusively funds and operates the local senior centers. By combining the resources of the Centre Region Municipalities and Centre County, the COG is able to provide residents with an attractive, comprehensive program for adults, ages 55 and older. During 2017, the County and COG started the process of updating the original Articles of Agreement; this process will continue until the end of 2017 and likely continue into early 2018.

2018 Summary Budget – Active Adult Center

FUNDING FORMULA Municipal funding shares for the Center are based on Unique Persons Served (UPS), or the number of participants and their corresponding municipality in the specified time period of July 1, 2016 through June 30, 2017. Prior to 2014, the funding formula was based on program attendance figures. While program attendance remains important, staff believes that the most effective reporting is derived from the individual participants visiting the Center. During mid-year 2017, the Co-Pilot Software System, which allows staff to obtain a variety of reports including UPS, total program visits, and total meals served, was updated and now provides better tracking data including participants’ full addresses and municipality.

Active Adult Center Program Visit Shares RESIDENCY State College Borough College Township Ferguson Township Harris Township Patton Township TOTAL

2018 FORMULA Based on 384 unique individual residents

2017 FORMULA Based on 4,197 individual residents

24.22%

26.16%

30.21% 23.70% 10.67% 11.20% 100%

29.00% 27.80% 4.34% 12.70% 100%

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BUDGET HIGHLIGHTS 

For 2018, municipal contributions for both operations and debt service are budgeted at $157,281, a 2.4% increase from 2017. The increase can be attributed to the requested addition of a part-time staff position (20 hrs/wk). It is noted that this proposed budget will also require the use of $49,611 from the fund balance. 

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For 2018, Municipal Contributions for Debt Service are requested to pay back a $107,000, ten-year interfund loan to the Authority from the Centre Region Code Administration for design and construction costs relating to the relocation of the Active Adult Center. Proposed 2018 municipal contributions for Debt Service total $6,600. The Centre County Office of Aging is also being requested to contribute $5,000 annually toward Debt Service making the total Debt Service expense $11,600 for 2018. In addition to assisting with the annual debt service ($5,000 per year), Centre County has been requested to contribute $93,547 as its 2018 share for rent and operations. The County is currently considering these requests as part of their annual budget process, which is now underway.

the Center is also serving approximately 150 non-residents who choose to visit the Center. With Co-Pilot’s new tracking capabilities, the Center will have better data regarding growth between 2017 and 2018 and beyond. However, we can show growth via the number of meals provided between July 1, 2016 and June 30, 2017: 2015 Meals Served 2016 Meals Served 2017 Meals Served

3,575 4,643 4,960

The position, working up to 20 hours per week typically between 10:00am and 2:00pm, will cover the reception area during the Center's busiest hours to greet visitors and provide facility tours, answer phones, complete registrations, and assist with general office tasks. The Center does have two-deep leadership when both current staff members are on-site; however, when a staff member is off or needs to attend other meetings, that absence leaves the other staff member without any back-up in a very busy Center. Similar to 2017, Centre County has been asked to contribute 50% of the position’s compensation and benefit costs. The County did not contribute to the position in 2017 and suggested it be filled with volunteers. The CRPR Director attempted this approach but was not successful in finding a sufficient number of volunteers to fill the hours needed.

PERSONNEL CHANGES A new part-time Staff Assistant position is proposed for 2018, due to a significant increase in participation and meals served at the Center since its relocation to the permanent space in the Nittany Mall. While the Center serves 384 unique individual residents,

2018 Summary Budget – Active Adult Center

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2018 Summary Budget â&#x20AC;&#x201C; Active Adult Center

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COG MILLBROOK MARSH NATURE CENTER MISSION The purpose of the Millbrook Marsh Nature Center is “to educate and inspire people about the natural world and to instill a passion for the environment through science, history, culture, and art.” POLICY OVERSIGHT The Millbrook Marsh Nature Center (MMNC) was founded in 1997 and is operated by Centre Region Parks and Recreation (CRPR) under the direction of the Centre Region Parks and Recreation Authority (CRPRA). In January 2001, the Centre Regional Recreation Authority [now known as the Centre Region Parks and Recreation Authority (CRPRA)] established the Millbrook Marsh Nature Center Advisory Committee. During 2002, the charge of the Committee was expanded to include the nearby Thompson Woods Preserve and later the Stan Yoder Preserve. The following 15 volunteers are currently appointed to this advisory group by the CRPRA Board. Millbrook Marsh Nature Center Advisory Committee – 2017 Jennifer Shuey Alan Sam Mary Alice Graetzer Mark Henry Mary Sorenson Kathy Matason

Chair/At-large Appointee Vice-Chair/State College Borough Bald Eagle Archeological Society State College Bird Club Centre County Historical Society CRPRA Board

2018 Summary Budget – Millbrook Marsh Nature Center Operating

A different view of the barn and silo from the Marsh’s meadow.

Steve Maruszewski Dr. Rob Brooks Donnan Stoicovy Lisa Strickland Dr. Richard Marboe Jennifer Arndt Deborah Nardone NancyTamminga Mark McLaughlin Center

Penn State University Penn State Riparia Clearwater Conservancy Board At-large Appointee At-large Appointee At-large Appointee Clearwater Conservancy Executive Director State College Area School District Shaver’s Creek Environmental 118

STAFF SUPPORT Full-time, Year-round:

Nature Center Supervisor, Program Coordinator, CRPR Staff Assistant (50% share, part-time)

wide- variety of exceptional programs. With the addition of the Spring Creek Education Building in 2011, new rental and classroom space allowed the expansion of rental options, daily offerings, and event size. It also allows multiple programs and camps to be held simultaneously.

Part-time, Seasonal: Part-time Staff Assistant, Program Leaders, Camp Leaders, Interns SERVICES PROVIDED 

A natural park setting to host unstructured recreational visits

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Programs and Special Events for the public

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Educational programs for school and community groups

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Rental Facilities for public and private parties, meetings, and weddings

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Birthday party packages for children

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Boy Scout and Girl Scout Programs

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Nature-based play programs for pre-school age children (added in 2013)

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After-school programs at State College Area School District (added in 2014, expanded in 2015)

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Preservation of a natural Fen wetland habitat that is rare to Central Pennsylvania, and the preservation of a constructed Fen (built in 2017)

Puddle Jumpers explore water quality.

Since the Center was established, the key to increased public attendance is maintaining a high-quality facility and offering a

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PROGRAM BACKGROUND The Nature Center consists of a 62-acre site that includes 50-acres of wetlands that are accessible by boardwalk or trail and a 12-acre farmstead which includes a restored 1850s barn, several small outbuildings, and the Spring Creek Education Building. The wetland also hosts a conservation easement between Penn State University and Clearwater Conservancy of Central Pennsylvania. The Nature Center provides space for a variety of programs that allow community members to experience, research, and enjoy the wetland ecosystem. Prior to 2011, programs were limited to an unheated facility which limited use to warmer months, approximately six to eight months per year. Sun shelters and a picnic pavilion help accommodate the many groups visiting the Center each year. As the publicâ&#x20AC;&#x2122;s use of the Nature Center has grown, there have been corresponding increases in its budget. The community has been generous in its financial support of the Center by providing funding for the construction of the Education Building and the new parking lot, with additional operational support through small grants and donations. Looking ahead to 2018, the 2017 fundraising plan will continue into the new-year to generate increased community contributions for both operating and capital expenses including the Phase 2 expansion of the Spring Creek Education Building.

2018 Summary Budget â&#x20AC;&#x201C; Millbrook Marsh Nature Center Operating

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BUDGET This budget funds the operation and development of the Millbrook Marsh Nature Center. The objectives of the Millbrook Marsh Nature Center are: 

Protect the unique wetland

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Provide a quality setting for education, exercise, and recreation

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Provide a convenient site for regional environmental programs

In addition to an Operating Budget there is a Capital Budget for the Nature Center. During 2018 a focus of the Capital Budget will be a fund raising effort to solicit donations for the Phase II development of the Spring Creek Education Building. The goal is to finance much of this project through public donations but the participating municipalities will be asked to contribute through the 2019 COG Budget. This concept was introduced during the 2018 Budget discussions and several municipalities indicated that before they would contribute, the Authority/Penn State University lease for the property would need to be extended or the property transferred to the Authority or the COG. This matter will be discussed by the various stakeholders during 2018. REVENUE 

Municipal shares for 2018 are proposed to total $78,989, a reduction of 5% from the 2017 budgeted amount of $83,224. A combination of factors contribute to this decrease:  Lower than expected costs for the Defined Pension Contribution Program because of the receipt of state aid.  No expenditures for overtime.

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 A higher than anticipated actual 2017 beginning year fund balance.  

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Community donations are estimated to total $40,000 in 2018 to offset operating expenses. Program fees are estimated to total $74,120. For 2018, the goal is to continue to offer high-quality programming while increasing offerings and outreach where options are available, including maintaining the after-school program partnership with the State College Area School District. In 2017, the Center developed a robust rental program and the Center will continue in 2018 to promote the venue for

rentals, particularly weddings. The Authority will also begin a regional and state-wide advertising program for potential rentals at this location. FUNDING FORMULA The funding formula for the Nature Center Budget is based on the Modified COG Formula (not including Halfmoon Township). EXPENDITURES No significant new or increased expenditures are proposed for 2018.

Mist rises over the meadow grass at Millbrook Marsh Nature Center. 2018 Summary Budget – Millbrook Marsh Nature Center Operating

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COG MILLBROOK MARSH NATURE CENTER CAPITAL FUND MISSION The mission of the Millbrook Marsh Nature Center Capital Budget is to coordinate facility improvements that are enabled through municipal contributions, public donations, and grants for the Millbrook Marsh Nature Center. POLICY OVERSIGHT The Nature Center is operated by the Centre Region Parks and Recreation (CRPR) Agency under the direction of the Centre Region Parks and Recreation Authority (CRPRA). As noted in the Millbrook Marsh Nature Center Operating Budget, the Authority and Staff are assisted by the 15 volunteer members of the Millbrook Marsh Nature Center Advisory Committee. STAFF SUPPORT The Nature Center Capital Budget is administered under the Authority’s guidance by the Director of Parks and Recreation, the Nature Center Supervisor, and the Nature Center Advisory Committee. PROGRAM BACKGROUND The Nature Center Capital Budget was added in 2006 to track funds for capital improvements for the Millbrook Marsh Nature Center.

2018 Summary Budget – Millbrook Marsh Nature Center Capital

The Millbrook Marsh Nature Center barn and the Spring Creek Education Building.

In 2007, the General Forum approved the Phase I Capital Fundraising Campaign for the Nature Center. This resulted in $1,087,830 in pledges and donations, including contributions by each of the five participating municipalities. These contributions were used to build the first phase of the Spring Creek Education Building (which was opened and dedicated in April 2011) and the Visitor Parking Area project completed in 2016. New for 2018 is a request of $25,000 from municipal contributions toward the Center’s Capital Improvement Program 2018-2022. Despite the success of donations and grants covering some of the long-term building maintenance and repairs, the Center has not been able to keep up with the needs on-site. Following the COG’s Capital Improvement Program, Agency staff identified approximately 85%-90% of the capital needs of the

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facility, and will continue to refine the list for the 2019-2023 Capital Improvement Program. Additionally, through funding raising efforts in 2017, the Agency staff members have earmarked the donations, pledges, and grants received to date for the Phase 2 expansion of the Spring Creek Education Building. This phase includes an additional to the Spring Creek Education Building as well as a Welcome Pavilion near the parking lot which will accommodate four restrooms.

Rending of the Welcome Pavilion at the Millbrook Marsh Nature Center, located near the parking lot.

Ground floor rending of the Phase 2 Expansion of the Spring Creek Education Building.

First floor rending of the Phase 2 Expansion of the Spring Creek Education Building. 2018 Summary Budget â&#x20AC;&#x201C; Millbrook Marsh Nature Center Capital

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BUDGET

find the additional $9,000 needed over and above the $25,000 requested in municipal contributions.

FUNDING FORMULA The funding formula for the $25,000 in municipal contributions is based on the 2018 COG Modified Funding Formula (not including Halfmoon Township). REVENUE & EXPENDITURES 

$25,000 in municipal contributions are requested for 2018. These funds are recommended to finance the repair and replacement of existing facilities and related systems. This is the first year that municipal contributions have been proposed to the Nature Center’s Capital Budget.

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The beginning fund balance for 2018 is projected to be $305,630 with all funds committed for future capital projects at the Nature Center including the Phase 2 of the Spring Creek Education Building and garden projects. It is estimated that in 2018, the Center will receive approximately $407,500 in donations.

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The Center awaits notice in late 2017 regarding a grant application to DCNR for $350,000 in funding toward the Phase 2 project; the Center has already received a $5,000 grant for 2018 from the Central PA Convention & Visitor’s Bureau.

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The capital improvement item earmarked for replacement in 2018 is the barn’s dry sprinkler system. As is common with this type of system in an unheated building, the lines are corroding and have developed pin hole leaks. This project is estimated to be $34,000, and the Center staff will attempt to

2018 Summary Budget – Millbrook Marsh Nature Center Capital

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LOOKING AHEAD During 2018 a focus of the Capital Budget will be a fund raising effort to solicit donations for the Phase II development of the Spring Creek Education Building. The goal is to finance much of this project through public donations but the participating municipalities will be asked to contribute thorough the 2019 COG budget. This concept was introduced during the 2018 Budget discussions and several municipalities indicated that before they would contribute the Authority/ Penn State University lease for the property would need to be extended or the property transferred to the Authority or the COG. The property is owned by the University and is leased to the Centre Region Parks and Recreation Authority for $1.00 a year. The current lease was approved in 2007 and runs for thirty five years (until 2042) with the possibility of three successive five year extension (until 2057). The concern is that the useful life of the Education Building and the Phase II addition is longer than lease period. This matter will be discussed by the various stakeholders during 2018. Staff is currently discussing how to organize this discussion that could include; the Authority, the Parks Capital Committee, the Millbrook Marsh Advisory Board, ClearWater Conservancy (it has a conservation easement on the property) and the University.

2018 Summary Budget â&#x20AC;&#x201C; Millbrook Marsh Nature Center Capital

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COG REGIONAL PARKS CAPITAL BUDGET MISSION

The purpose of the Regional Parks Capital Budget is to provide for the jointly-financed capital costs associated with the development of the three regional parks that the municipalities have acquired through the Centre Region Council of Governments (COG). The three parks are Oak Hall Regional Park, the Hess Softball Complex, and the Whitehall Road Regional Park, as well as other sites as designated by the General Forum.

The General Forum has charged the Centre Region Parks and Recreation Authority (CRPRA) with the development and operation of the regional parks. To formalize and define this relationship, the COG and the CRPRA (with Ferguson Township

POLICY OVERSIGHT In 2001, the COG General Forum charged the Ad Hoc Regional Park Committee with laying the groundwork for “regional park” ownership, planning, development, and operation. Upon the approval of the related COG Articles of Agreement in 2009, the Ad Hoc Regional Park Committee transitioned into the Parks Capital Committee, which remains a standing committee of the General Forum. COG Parks Capital Committee – 2017 Carla Stilson, Chair Bruce Lord, Vice-Chair Tom Daubert Rita Graef Dan Treviño Charima Young

College Township Harris Township State College Borough Ferguson Township Patton Township Penn State University

2018 Summary Budget – Regional Parks Capital

Youth Flag Football at Oak Hall Regional Park in September 2017.

for Whitehall Road Regional Park) entered into a 50-year lease agreement that confirms the various ownership and legal responsibilities with regard to these properties. The General Forum approved the lease agreement in September 2011. THE REGIONAL PARKS CAPITAL BUDGET The "Regional Parks Capital - Authority" budget was established by the Finance Committee to track the revenue and expenditures

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related to the development of three regional parks by the Centre Region Parks & Recreation Authority: John Hess Softball Field Complex (21-acres) – Renovated in 2011. A safety project to widen and re-profile the driveway was completed in 2015. Oak Hall Regional Park (68-acres) – Phase I construction is complete and the park opened in May 2015. Whitehall Road Regional Park (WRRP) (100-acres) – From its inception in 2006 the development of Whitehall Road Regional Park was based on the assumption that the developer of R-4 zoned land adjacent to the property would construct an entrance road and provide utilities to its facilities. The WRRP would connect to these infrastructure improvements thereby avoiding most of the cost of construction. In 2014 Toll Brothers entered into a sales agreement with The Pennsylvania State University to develop student housing on the R-4 zoned land. A land development plan was approved by Ferguson Township in November 2015. At the current time this land development plan remains in litigation.

3) That the Parks Capital Committee agreed that the Authority Board should proceed with retaining the services of an consulting engineer to finalize the construction plans, right-of-way issues, time schedule, and cost estimate for constructing the entrance road/driveway. 4) After the cost of the entrance road/driveway is known and before proceeding with the bidding process, that the Authority Board will review with the Parks Capital Committee the phasing plan for constructing the facilities shown on the master site plan to confirm that they can be built within the approved budget. 5) The Authority Board’s intention is to proceed with the construction of Whitehall Road Regional Park within the approved budget ($4.8m) and consistent with the Master Site Plan.

1) That the Parks Capital Committee re-confirmed its commitment that the Authority develop the Whitehall Road Regional Park within the previously approved budget.

At the current time the planning and construction of Whitehall Road Regional Park is at a stand still pending an outcome of a case currently before the Pennsylvania Supreme Court. This case will determine whether the development of the property located immediately to the east of the park will go forward. Should the Court rule in favor of the developer then the road, sewer, and other utilities will be constructed by the developer and the park project will be allowed to connect to those infrastructure improvements at a low cost. If the Court rejects the developer’s case then the cost of these improvements will need to be incorporated in the $4.8 million project cost for the park. Diverting funds from the development of playing fields and other amenities to infrastructure improvements will result in fewer facilities than originally hoped.

2) That the Parks Capital Committee confirmed its preference that the entrance to the Whitehall Road Regional Park be located across from Blue Course Drive.

During its May 22, 2017 meeting the General Forum took action to extend the loan period for the park development project. The motion adopted by the General Forum is:

To corroborate the status of the project during a September 8, 2016 joint meeting of the COG Parks Capital Committee and the Centre Region Parks and Recreation Board the status of the project the two groups discussed how to proceed. The areas of agreement were:

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“That the General Forum, as recommended by the Finance Committee and Parks Capital Committee, adopt Resolution 2017-2 asking the Centre Region Parks and Recreation Authority to modify the regional parks loan with Fulton Bank in accordance with its May 1, 2017 proposal. Furthermore, this action is approved with the stipulation that if construction contracts are not executed within a period of time not to exceed one year then the CRPR Authority shall discuss the project with the General Forum prior to proceeding” During its September 21, 2017 meeting the Centre Region Parks and Recreation Authority took action to withdraw the 2013 land development plan for the park. The Plan was approved in 2014 by the Ferguson Township Planning Commission but not by the Board of Supervisors. The Authority believed that so much time had passed since the plan was approved by the Commission that the phasing for the development of the park is no longer accurate and Ferguson Township has adopted several new ordinances that will impact how the park should be designed.

BUDGET REVENUE Municipal Contributions – Regional Parks These funds are used exclusively for debt service on the $7.578 million dollar loan (June, 2011) to fund the Phase I construction at Oak Hall and Whitehall Road Regional Parks. Because of delays in advancing the two park projects the loan was modified in November, 2011; February, 2013; May, 2014, November, 2015, and May, 2017. Under the terms of the fifth modification agreement the loan must be fully drawn by June 1, 2020. As the

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Whitehall Road Regional Park project progresses, the Authority will be able to bring forward a recommendation of how to proceed with the loan.

$54,991. An additional loan amendment was proposed in May 2017 to extend the loan drawdown from June 1, 2017 to June 1, 2020.

Other Revenue These funds consist of interest earnings, grant reimbursements, house rental revenue (Oak Hall), agricultural land rental fees (Whitehall Road), the incoming intra-agency loan from the Code Agency, and loan proceeds for the regional parks loan.

In addition, $21,190 is proposed to repay the 2018 portion of the seven-year intra-agency loan from Centre Region Code Administration. This borrowing is related to the enhancement of the storm-water management facilities at Oak Hall Regional Park that were not anticipated in either the original scope of work or the budget for the project.

EXPENDITURES

2018 Year End Fund Balance

Consultant Services

The estimated 2018 year-end fund balance is expected to be $944,171.

$50,000 is proposed to fund 2018 consultant services for Whitehall Road Regional Park (Phase I). Capital Project â&#x20AC;&#x201C; Whitehall Road Regional Park $1,150,000 is proposed in 2018 to begin the construction of Whitehall Road Regional Park (Phase I). As stated earlier in this narrative, it is not clear what facilities will be constructed. If funds must be expanded to building an access road and to provide for utilities there will be fewer playing fields built than if the infrastructure is constructed by the adjoining property owner. Debt Service The 2018 debt service for the regional park development loan to the CRPRA is estimated at $350,000. The terms and funding formula for the repayment of this loan are defined in the loan documents that were approved by the CRPRA and the General Forum in 2011. The loan was modified in 2013, 2014, and in 2017 with better terms, which reduced the debt service by 2018 Summary Budget â&#x20AC;&#x201C; Regional Parks Capital

A gorgeous view of Mount Nittany and our Youth Flag Football League from the highest point in Oak Hall Regional Park, September 2017.

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