2019 Summary Budget by Centre Region COG

CENTRE REGION COUNCIL OF GOVERNMENTS 2019 SUMMARY BUDGET Table of Contents 4 5 6 9 39

SCHLOW CENTRE REGION LIBRARY SCHLOW CENTRE REGION LIBRARY CAPITAL

81 85

CENTRE REGIONAL PLANNING AGENCY CENTRE COUNTY METROPOLITAN PLANNING ORGANIZATION

87 91

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

44 48 52 54 59 64

REGIONAL FIRE PROTECTION PROGRAM FIRE PROTECTION CAPITAL

94 98

OFFICE OF EMERGENCY MANAGEMENT EMERGENCY MANAGEMENT CONTINGENCY FUND

66 68

CODE NEW CONSTRUCTION PROGRAM CODE EXISTING STRUCTURES PROGRAM CODE CAPITAL

70 75 79

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

102 108 111 115 118 123 128 132

GENERAL FORUM MEMBERS 2018 CHAIR: Danelle Del Corso, Halfmoon Township VICE CHAIR: Steve Miller, Ferguson Township

COLLEGE TOWNSHIP COUNCIL

FERGUSON TOWNSHIP SUPERVISORS

HALFMOON TOWNSHIP SUPERVISORS

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

Peter Buckland, Chair Sara Carlson Laura Dininni Steve Miller Tony Ricciardi

Danelle Del Corso, Chair Patti Hartle Barbara Spencer Mark Stevenson Bob Strouse

HARRIS TOWNSHIP SUPERVISORS

PATTON TOWNSHIP SUPERVISORS

STATE COLLEGE BOROUGH COUNCIL

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

Elliot Abrams, Chair Jessica Buckland George Downsbrough Dan Treviño Betsy Whitman

Evan Myers, President Jesse Barlow David Brown Cathy Dauler Janet Engeman Theresa Lafer Dan Murphy Mayor: Don Hahn

THE PENNSYLVANIA STATE UNIVERSITY

STATE COLLEGE AREA SCHOOL DISTRICT

Charima Young

Gretchen Brandt 5

2019 Summary Budget â&#x20AC;&#x201C; Summary Tables

If you want to go quickly, go alone. If you want to go far, go together. African Proverb

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

In the long history of humankind those who learned to collaborate and improvise most effectively have prevailed. Charles Darwin

2019 SUMMARY BUDGET EXECUTIVE DIRECTOR’S TRANSMITTAL LETTER The Finance Committee, Agency Directors, and I are pleased to present for your consideration the 2019 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 draft 2019 Budget builds upon 50 years of 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 long-term 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 draft budget are revenue projections and proposed expenditures for fire protection, emergency management, parks and recreation, library, local and regional land use and transportation planning, refuse/recycling collection, and building code administration services. For the last five years, the General Forum, upon the recommendation of the Finance Committee, set a guideline to limit increases in the municipal contributions to the COG Budget. For the 2019 Budget, the Finance Committee thoroughly discussed the concept of continuing with a budget cap for the upcoming year. The majority of the Committee believed that given all the changes occurring in the 2019 Summary Budget – Executive Director’s Letter

Centre Region, staff should propose initiatives that are needed to meet increased resident usage of programs, capital needs, or improve operations. The Committee reported to the General Forum that the 2019 Program Plan will give the municipal officials the opportunity to think strategically about priorities for the COG. Whether a budget threshold should be established in any particular year is a policy decision of the General Forum and for 2019 the decision was made not to have one. 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 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 following regional successes: The draft 2019 budget maintains, and in some areas, grows the partnerships that have enabled the Centre Region to provide:  Jointly funding the construction and continuing operation of one of the finest and most used libraries in Central Pennsylvania.  Maintaining a mostly volunteer fire service that has one of the largest urbanized service areas in the United States fire protection services at a cost significantly lower that state or national averages.  Implementing a multi-municipal residential refuse/recycling system that reduced costs by 25% from the 1991 levels while expanding the service level.

2019 Summary Budget – Executive Director’s Letter

 Creating a regional Emergency Management Program that is considered to be a “best practice” by the Pennsylvania Emergency Management Agency (PEMA).  Operating a comprehensive code administration 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).  Receiving over $3.2 million in state and federal grants for regional pools and park improvement projects during the last 10 years.  Growing 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.  Providing to six municipalities 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 in one of the most rapidly expanding communities in Pennsylvania.  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 looking forward to 2019 beginning the construction of Phase I of the Whitehall Road Regional Park. 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 until the contract is up for renewal on January 1, 2021. The main drivers of the increase in the COG budget for 2019 are higher wages paid to full and part-time employees, higher health insurance premiums, a doubling of the stipend for the Alpha Fire Company volunteers and staffing changes proposed for Schlow Centre 2019 Summary Budget – Executive Director’s Letter

Region Library’s Operating Budget, the Centre Region Parks and Recreation Operating Budget, and the Millbrook Marsh Nature Center Operating Budget. The staffing changes proposed for implementation in the 2019 Library, Parks and Recreation, Millbrook Marsh Nature Center budgets will also contribute to additional higher compensation costs in the 2020 budgets. For the 2019 budget the Library’s change in the IT Technician’s position from part-time to full-time status is only budgeted for six months of employment. In contrast, for 2020 compensation and benefit costs will be calculated for a full year of employment. And, the costs of the two Park Caretaker positions proposed for 2019 will be largely offset by using the agency’s beginning year fund balance and the starting dates for the two positions are staggered. One employee will begin in March and the other individual in April. Consequently, the full financial impact of compensation and benefits will not be experienced until 2020 when a full year of employment will be used to calculate costs. The Nature Center’s budget proposes to change the Staff Assistant’s position from part-time to full-time status. A portion of this increase compensation and benefit cost will be offset in 2019 by the higher than anticipated beginning year fund balance. This high fund balance will probably not be the case for the 2020 budget. Also, looking ahead to 2020, the COG Budget will be impacted by recommendations that the COG Ad Hoc Facilities Committee may propose during 2019 regarding funding of the Capital Budgets for the COG Building, Welch and Park Forest Pools, Millbrook Marsh Nature Center, and the Library. The Executive Director believes these capital budgets are not adequately funded to address maintenance and repair needs over the longer term. It should also be noted that the budget for Centre Region Code Administration recommends an 8.3% reduction in the cost of a new construction building permit and no change in the cost of a rental housing or fire permit. Municipal contributions are proposed for the 2019 fiscal year to increase from $6,762,626 (2018 Budget) to $7,087,989 (2019 Budget), a change of $325,363 (4.81%). 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 2019 adjustment varies among the six municipalities. Individual community adjustments are State College Borough (5.15%), College Township (5.92%), Ferguson Township (4.42%), Halfmoon Township (0.60%), Harris Township (6.73%), and Patton Township (3.73%). The overall COG Budget is proposed to increase from $23,333,541 (2018) to $26,052,029 (2019), an increase of $2,718,488. In large measure this increase is due to the receipt of proceeds from the loan to build Whitehall Road Regional Park ($798,000) and higher projected revenue from building permits ($523,000 permit fee year to year increase) – the Centre Region is experiencing a building boom. In addition, a higher beginning year fund balance in the Fire Capital Budget is anticipated and will, in the future, be used to purchase fire apparatus ($333,028 fund balance year to year increase).

2019 Summary Budget – Executive Director’s Letter

Other items to note as you review the budget are: 

As the Summary Budget is being prepared the General Forum is considering a request from Centre LifeLink asking the COG to contribute $10,000 to fund Act 235 Firearms Training for Centre LifeLink personnel who work with the Centre County Tactical Response Team. The General Forum has not yet approved that any COG funds be expended for this purpose. The funding request will be considered by the General Forum during its October 29 meeting. This budget does not include funding for this request.



The Steering Committee for the Parks and Recreation Regional Comprehensive Plan strongly recommended that a randomized statistically valid mailed survey of Centre Region households be conducted to identify resident’s beliefs regarding parks and recreation needs, facilities, programs etc. The estimated cost to conduct this survey is up to $15,000. The cost of this survey work is included in the Parks Operating Budget. For budgetary purposes this $15,000 survey cost will be allocated among all six Centre Region municipalities, including Halfmoon Township, based on the standard COG formula.



Consistent with municipal comments relating to the 2019 COG Program Plan no municipal contributions are proposed for the Phase II construction of the Spring Creek Education Building at the Millbrook Marsh Nature Center.



Consistent with municipal comments relating to the 2019 COG Program Plan the position of Philanthropy Assistant will be funded by the Library Foundation and not my municipal contributions.

2019 Summary Budget – Executive Director’s Letter

2019 Agency Budget Highlights

The following is a summary of the major changes from 2018 to 2019 in the COG Agency Budgets: ADMINISTRATION Fund Balance

The estimated January 1, 2019 fund balance for the Office of Administration is $70,309 compared to 2018 budgeted fund balance of $62,429. The 2019 fund balance carries over from 2018 appropriations to complete three projects. First, $20,000 is designated to retain a consultant to evaluate COG’s IT systems and to prepare a five year technology plan for the COG (not the library). Second, $2,000 to fund supervisory training relating to the implementation of the new Personnel Policy Handbook, And, third, $6,000 to conduct a customer satisfaction survey for property owners who received a new construction permit during 2018.

Personnel

No personnel changes are proposed.

Revenues

Municipal contributions are proposed to decrease from $396,277 (2018 Budget) to $385,583 (2019 Budget), a decline of $10,694 (2.7%). The administration fee paid by Centre Region Code Administration (CRCA) to the Office of Administration for human resources, financial and administrative management services is expected to total $136,000, an $11,000 increase from the 2018 budgeted amount of $125,000. The amount of the CRCA reimbursement to the Office of Administration is based on CRCA expenditures relative to the entire COG Budget.

Expenditures

With the following exceptions, most estimated 2019 expenditures are approximately the same as in 2018: 

$450 for the COG to join Public Employers Labor Relations Advisory Service (PELRAS). This is a source of information and training on personnel issues. Most of the Centre Region municipalities are members of PELRAS. An additional $1,000 in PELRAS legal services is proposed to review the exempt/non-exempt status of COG employees and the new COG Personnel Policy Handbook that should be drafted later this year.

2019 Summary Budget – Executive Director’s Letter



Capital

$5,000 for activities relating to COG’s 50th anniversary. The main focus of this effort will be to enhance the public’s understanding of the COG especially its services, voluntary and collaborative governance structure, benefits of intergovernmental cooperation to the public, core values, and future projects.

$1,000 is proposed to purchase two height adjustable computer desks – one for the Office Manager and a second unit for the Executive Director.

REGIONAL REFUSE/RECYCLING PROGRAM Fund Balance

The estimated January 1, 2019 fund balance for the Regional Refuse and Recycling Program is $169,169 compared to $152,956 for 2018, an increase of $16,213. 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

As proposed in the 2019 Program Plan, it is recommended that the part-time position of Refuse and Recycling Administrator be changed to a full-time Program Administrator. With the scope of work needed to develop and implement the Organics Recycling Program in 2020, it is becoming evident that the Refuse and Recycling Administrator’s position should be full-time. It was planned to incorporate these costs into the 2020 contract, but the tasks (specifications, education campaign, customer service) laid out for introducing the program in 2019 are indicating it is likely that this position should be full-time in 2019. There are enough work tasks in the next 2 years (2019-2020) to be completed for a full time administrator and a part time assistant as the Organics Recycling Program is introduced and implemented. In 2021, the plan is that there will be only work tasks needed for (1) full time administrator. The estimated $41,000 additional cost (includes benefits) would be covered by the fund balance in 2019 and from the administrative fee in the 2020 contract. This change is supported by the COG Public Services and Environmental Committee.

Revenues

During 2019, the Regional Refuse/Recycling Program will continue to be entirely funded by the $101,870 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 2018 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.

2019 Summary Budget – Executive Director’s Letter

Expenditures

Because of the possible implementation of a regional organics collection program and the implementation of a new service contract in 2020 some costs for this program are proposed to increase - a significant jump in Public Information/Education costs $5,000 (2018)/$30,000 (2019), and increased legal expenses $500 (2018)/$3,000 (2019).

Capital

No capital items are proposed.

Fund Balance

The estimated January 1, 2019 fund balance for the Contingency Budget is $26,910 compared to $24,597 budgeted in 2018, an increase of $2,313. The fiscal management goal is to maintain a fund balance of approximately $25,000.

Revenues

No municipal contributions are proposed for 2019, the same as for 2018.

Expenditures

No specific expenditures are proposed. If there are no General Forum approved expenditures from the Contingency Budget during 2019 then the ending year balance will be approximately $27,000.

BUILDING CAPITAL Fund Balance

The estimated 2019 COG Building Capital beginning year fund balance is $130,153 a $31,990 decrease compared to the 2018 budgeted amount of $162,143. The decrease is due to the $50,000 cost of constructing the connection between the COG Building and the KINBER high speed fiber optic system. The 2018 fund balance included this amount that was carried forward from the 2017 Building Capital Budget.

Revenues

Municipal contributions are proposed to total $34,411, a $3,011 increase from the $31,400 budgeted in 2018. The increase reflects revenue and expenditure estimates identified in the 2019 to 2023 Capital Improvement Plan. The proposed transfers for the Centre Region Code Administration’s New Construction Program is $9,450, Existing Structure is $4,050, and Refuse/Recycling Program is $1,680.

Expenditures

$50,000 is proposed to conduct evaluations of COG owned and COG related facilities beginning with the COG Building. Building systems that will be assessed include: HVAC, plumbing, electrical, parking, energy efficiency and architectural components. In addition, the opportunity for expansion of the buildings will be reviewed. The exact scope of work and cost of this study is not known at the time the Detailed Budget is being prepared. The

2019 Summary Budget – Executive Director’s Letter

cost estimate is based on a similar evaluation conducted of the Library. This new expenditure is recommended by the Ad Hoc COG Facilities Committee. This is a new proposal identified in the 2019 to 2023 Capital Improvement Plan and it was generally supported in the municipalities’ 2019 COG Program Plan comments. $15,000 is proposed to update the audio system in the General Forum Room. During large meetings such as the General Forum it can be difficult for all attendees to hear and it can be difficult to hear sometimes while viewing the C-Net recording of meetings. $5,000 includes the installation of a hearing loop system to help people who use hearing aids. It can also be referred to an induction system and is similar to what Patton Township recently installed. The hearing loop is wireless device technology that works with telecoil hearing aids to produce clear sound. In order for the hearing loop to be used, microphones are needed to capture people’s voices. Fifteen (15) gooseneck microphones, which cost $4,500, are the minimum needed for a General Forum meeting (largest setting) to provide adequate sound. These will replace the tabletop microphones that C-Net currently uses. A $3,000 mixer is needed to relay the sound from the 15 gooseneck microphones to our audio system, the hearing loop and C-Net’s recording system. The remaining funds are for installation, hardware and cart to hold the equipment. This is a new proposal identified in the 2019 to 2023 Capital Improvement Plan and was generally supported in the municipal comments provided in response to the 2019 COG Program Plan. During its budget review sessions the Finance Committee unanimously voted to replaces the tables in the Forum Room in accordance with the recommendation of the Executive Director. MEDICAL INSURANCE RESERVE BUDGET Fund Balance

The estimated 2019 Medical Insurance Reserve Fund’s beginning year fund balance is $531,155 compared to the 2018 budgeted amount of $464,418 an increase of $66,737. The increase is due to the higher than anticipated health insurance reimbursement the COG received in 2018 for its 2017 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 $125,000 reimbursement is anticipated for 2019. This estimate was calculated by averaging the reimbursements over a seven year period after removing the low and high year’s reimbursement.

Expenditures

The three largest expenditure items proposed for payment from this budget during 2019 are: $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 mid-year changing from single to family coverage); $11,210 (a $4,090 decrease

2019 Summary Budget – Executive Director’s Letter

from 2018) for the employee wellness programs recommended by the COG Employee Relations Committee and considered by the Human Resources Committee, and $195,000 to offset increases in the cost for the employee health insurance program. The December 31, 2019 ending year balance is budgeted at $421,195. However, the 2019 ending year fund balance could be $125,000 lower if the COG does not receive a PMHIC reimbursement of at least $125,000 for the 2018 calendar year. If this worst case scenario occurs then the budget’s remaining fund balance will be adequate to finance the four aforementioned costs for the 2019 and 2020 budget years. In other words, this budget is adequately funded through December 2020. UNEMPLOYMENT RESERVE BUDGET (THIS IS A NEW BUDGET PROPOSED TO BEGIN IN 2019) Fund Balance

The estimated 2019 Unemployment Reserve Budget beginning year fund balance is $65,002 compared to the 2018 budgeted amount of $57,348.

Revenues

For 2019 this Budget is funded through $34,065 in 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, 2019 unemployment claims for the COG Agencies are anticipated to total $18,685. The December 31, 2019 ending year balance is budgeted at $80,882.

FIRE PROTECTION OPERATING Fund Balance

The estimated 2019 Fire Protection Operating Budget beginning year fund balance is $91,241 compared to the 2018 budgeted amount of $55,154, an increase of $36,087.

Personnel

No staff changes are proposed.

Revenues

Municipal contributions are proposed to increase from $1,019,262 (2018) to $1,090,525 (2019), an increase of $71,263 (7%).

2019 Summary Budget – Executive Director’s Letter

Contributions from Penn State University are proposed to change from $101,201 (2018) to $108,222 (2019) 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 $3,721 to the Fire Operating Budget because a portion of the Township is protected by the Centre Region program. Expenditures

As identified in the 2019 Program Plan, the main expenditure change for the Regional Fire Protection Program is an increase in total annual stipend paid to the fire fighters to reimburse them for the costs they incur when volunteering to protect our community. The stipend is recommended to increase from $89,600 (2018) to $159,600 (2019), a change of $70,000. The Fire Director discussed this change with the Municipal Managers of the participating municipalities and PELRAS legal counsel.

FIRE PROTECTION CAPITAL Fund Balance

The estimated 2019 Fire Protection Capital Budget beginning year fund balance for the building and the apparatus is $1,058,891 compared to the 2018 budgeted amount of $725,863, an increase of $333,028. During the last two years the only vehicle purchase has been the replacement of a 2005 pick-up truck. Consequently 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. Looking ahead during 2020 two fire police vehicles ($131,534 each) are proposed for replacement and during 2021 a fire rescue truck ($782,864).

Revenues

The Centre Region municipalities contribute to two costs centers in the Fire Capital Budget â&#x20AC;&#x201C; Apparatus Replacement and Building Improvement/Repairs. For 2019, Centre Region municipal contributions for Apparatus Replacement are budgeted at $269,712 (2019), an increase of $6,968 from the 2018 Budget. Contributions for Building Improvement/Repairs projects are proposed to increase from $32,551 (2018 Budget) to $33,415 (2019 Budget), an increase of $864. As the three fire stations age, additional funds are being requested for capital repair items. The following matrix identifies the combined (apparatus and building) capital costs for the Regional Fire Protection Program.

2019 Summary Budget â&#x20AC;&#x201C; Executive Directorâ&#x20AC;&#x2122;s Letter

State College Borough

$71,149

Building Capital (3 fire stations) $8,815

College Township

50,473

6,253

56,726

Ferguson Township

82,678

10,243

92,921

Patton Township

65,412

8,104

73,516

Total

$269,712

$33,415

$303,127

Apparatus

Total $79,964

During 2019 it is proposed that Penn State University contributes $89,730 (a $2,274 increase) to apparatus purchases and $3,316 (an $84 increase) to building capital projects. This is the same percentage increase as the municipalities. In addition, Benner Township contributes $1,034 to both capital costs because a portion of the Township is protected by the Centre Region Fire Program. Capital

As proposed in the CIP, $36,800 is proposed to replace the 2013 Ford Police Intercept vehicle used by the Fire Director As proposed in the CIP, $38,561 is proposed to replace the 2013 Ford Police Intercept vehicle used by the Volunteer Fire Chief. As proposed in the CIP, $76,302 is recommended to replace, equip, and mark the Command Unit, a 2013 Chevy Tahoe, used by the On-Duty Volunteer Fire Chief. $57,150 is proposed to replace the rooftop HVAC units at the Patton Township fire station and a partial roof replacement at the State College Borough station.

EMERGENCY MANAGEMENT OPERATING Fund Balance

The estimated 2019 Centre Region Emergency Management Operating Budget’s beginning year fund balance is $47,042 compared to the 2018 budgeted amount of $35,495, an increase of $11,547.

2019 Summary Budget – Executive Director’s Letter

Personnel

No personnel changes are proposed.

Revenues

Municipal contributions are budgeted at $128,444, an $1,614 (1.3%) increase from the $126,830 budgeted for 2018.

Expenditures

No significant expenditure changes are proposed.

Capital

As proposed in the CIP, $43,575 is recommended to purchase a light duty 4 x4 truck to replace the existing 2009 Ford Explorer SUV. A truck is suggested because it has the ability to transport equipment and supplies during an emergency. It is planned to sell the Ford Explorer to the Fire Protection Program.

EMERGENCY MANAGEMENT CONTINGENCY Fund Balance

The estimated January 1, 2019 fund balance for the Emergency Management Contingency Budget is $111,096 compared to $108,910, an increase of $2,186 from the 2018 budgeted amount.

Revenues

$1,250 in municipal contributions are proposed for 2019 compared to $1,165 for 2018. 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.

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, 2019 budgeted beginning year fund balance for the New Construction Budget is expected to be $3,959,050 compared to $3,763,980 budgeted for 2018 an increase of $195,070. The two components to the New Construction fund balance are described as follows: 

Committed Fund Balance Operations ($3,234,026) – This fund balance is used to finance agency operations during slow construction periods such as the winter months and to 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.

2019 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 staff proposes that the cost of a building permit be reduced by approximately 8.3% from 2018 to 2019. This is accomplished by changing the multiplier that is used to calculate the cost of a building permit from .0060 to .0055. The permit multiplier in 2010 was .0099. This reduced multiplier should lower the fund balance in future budgets. 

Personnel

Committed Fund Balance Building Permits ($725,024) – 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 proposed in the 2019 Program Plan, it is recommended that a new position Permit Program Technician be established. The employee’s work will be split 75% New Construction Program and 25% the Sewage Enforcement Officer (SEO) program that is proposed to be implemented during the new year. The SEO work load will not justify a full-time employee. Subsequently, this employee will take over the management of the on-lot Sewer Management Program (SMP) that is currently administered by other CRCA staff and act as an additional backup to the current administrative staff in their absence. Currently there are approximately 3,000 homes in the SMP. The estimated 2019 cost for this position is approximately $63,600 ($35,500 salary; $28,100 benefits). All expenditures for this position would be paid from user permit fees and not from municipal contributions. As proposed in the 2019 Program Plan it is recommended that two new Commercial Plans Examiner/Inspectors be established. The work of one of two individuals would include SEO responsibilities. The SEO work load will not justify a full-time employee. Subsequently, the employee will also assist with plan review and field inspections conducted as part of the New Construction Program. The estimated 2019 cost for each of the positions is approximately $84,000 ($53,600 salary; $30,400 benefits). All expenditures for these positions would be paid from user permit fees and not from municipal contributions.

Revenues

It is recommended that beginning January 1, 2019 that the fee multiplier that is used to calculate the cost of a building permit be reduced from .006 (2018) to .0055 (2019), a decline of 8.3%. Income from building permit fees is anticipated to increase from $1,022,000 to $1,545,000 a change of $523,000. 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, revisions to zoning ordinances, and the time for obtaining various permits. That being said the Centre Region is

2019 Summary Budget – Executive Director’s Letter

experiencing a building boom that is expected to continue for the next several years and this level of investment in the community has implications for staffing levels in upcoming year. The new Sewage Enforcement Officer (SEO) service and the existing Sewage Management Program (SMP) that is currently part of the Existing Structures Program will both be assigned to the New Construction Program. Revenues from both services are projected to total $24,470. Expenditures

No significant expenditure changes are proposed for 2019, however, some line item accounts will increase because three additional employees are being added to the New Construction staff. $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 2018 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. This expenditure was proposed for 2018 but staffing constraints did not allow the project to advance.

CODES – EXISTING STRUCTURES Fund Balance

The estimated January 1, 2019 budgeted beginning year fund balance for the Existing Construction Budget is expected to be $302,333 compared to $214,315 budgeted for 2018, an increase of $88,018.

Personnel

No staff changes are proposed.

Revenues

Rental housing permit fees are expected to total $815,760 during 2019, a $42,360 increase from the 2018 budgeted amount of $773,400. This change is attributable to additional rental housing units being brought to the market. The $37 annual cost of a typical rental housing permit is proposed to remain unchanged from 2018 to 2019. Permit fees were last adjusted in 2015. In several Centre Region municipalities, property owners pay more than this amount for a rental housing permit because of 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 2018 to 2019. Fire permits costs vary by structure in accordance with the size of the structures and the hazards present.

2019 Summary Budget – Executive Director’s Letter

No revenues are projected for the Sewage Management Program (SMP) because the responsibility of this program has been moved to New Construction so that centralized cost center for both the SEO and SMP services. Expenditures

No significant expenditure changes are proposed for 2019.

CODES – CAPITAL Fund Balance

The estimated January 1, 2019 budgeted beginning year fund balance for the Codes Capital Budget is expected to be $135,090 compared to $75,896 budgeted for 2018, an increase of $59,194.

Revenues

There are two transfers proposed from the New Construction and Existing Structures budgets into the CRCA Capital Budget for 2019: $134,700 (New Construction) and $54,600 (Existing Structures).

Expenditures

$98,590 is recommended for four vehicle purchases. Two Ford Escapes will be purchased for the New Construction additional staff members who will be preparing inspection in remote locations and large disturbed construction sites. The two other vehicles will replace existing 2011 Ford Escapes that are used by existing staff. $14,700 is proposed to replace the chairs used by the inspection staff and to purchase height adjustable computer desks for the front office staff. The chairs that are being replaced are original to the building. $75,000 is proposed for three CRCA related COG Building projects – install a window wall for the front office to improve the heating and cooling of the space and to increase energy conservation, purchase office furniture for the new office and inspection staff, and complete the outstanding work items relating to the conversion of the space in the Planning Agency to an office for the three electrical inspectors. The December 31, 2019 fund balance is budgeted at $107,400.

LIBRARY OPERATING BUDGET Fund Balance

The estimated January 1, 2019 fund balance for the Library’s Operating Budget is $147,156 compared to 2018 budgeted fund balance of $143,335, an increase of $3,821.

Personnel

As proposed in the 2019 Program Plan, it is recommended that the part-time position of IT Services Technician be changed to a full-time Program Administrator effective in mid-year. It is important to note that the estimated

2019 Summary Budget – Executive Director’s Letter

2019 costs encompassed only six months of the year. There will be an additional increase in 2020 associated with this position change. Revenues

State Aid from the Commonwealth of Pennsylvania is expected to total $206,999, no change from 2018. For the 2009 budget year state aid provided to the library totaled $294,122. The stagnation of state aid over the last ten years has caused significant turmoil in the financing of public libraries throughout Pennsylvania. Financial support from Centre County government is projected to total $159,500, no change from 2018. This amount is unchanged since 2009. Municipal contributions are proposed to increase from $1,479,045 (2018 Budget) to $1,538,207 (2019 Budget), an increase of $59,162 (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 averaged during the latest three year period. The Library’s Operating Budget accounts for about 21.6% of total municipal contributions. Contributions from the community are proposed to total $288,000, no change from the 2018 budgeted amount. The Library Board, Library Foundation, 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

No significant expenditure changes are proposed for 2019. The purchase of library materials are expected to total $212,695, no change from 2018.

LIBRARY CAPITAL BUDGET Item of Note

A facility assessment and renovation plan was completed in early 2018. This report resulted in changes to the Library’s Capital Improvement Plan and set the direction for the proposed 2019 capital projects listed below. The facility assessment identified current 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, 2019 fund balance for the Library’s Capital Budget is $534,549 a $75,683 decrease from the 2018 budgeted amount of $610,232.

2019 Summary Budget – Executive Director’s Letter

Revenues

Municipal contributions to the Capital Budget are proposed to total $80,000 for 2019, no change from the 2018 amount. The level of municipal contributions is unchanged since 2016. Budgeted community contributions for the Capital Budget are projected to decrease from $78,225 (2018) to $0 (2019). The community donations that are assigned to the Capital Budget come from estate gifts. None are projected for 2019. Smaller community contributions are managed and invested by the Library Foundation.

Capital

$391,522 in capital expenses are proposed for 2019 as identified in the draft 2019 to 2023 COG Capital Improvement. The major proposals are: 

Upgrade the website. Every 4 years, a major upgrade of the website is necessary to maintain performance and security. The estimated cost is ($120,000).



Replace the public computing software. The software is due for replacement to maintain performance and security. The estimated cost is ($15,000).



Replace computer equipment specified in the library’s technology plan. The estimated cost is ($19,522).



Replace the public use furniture. After 13 years of hard public use, some pieces are in need of replacement and have worn and stained upholstery or damaged frames. The estimated cost is ($30,000).



Replace lighting fixtures. The Facility Assessment recommended changing to more energy-efficient lighting in public areas. This will be coordinated with renovations in 2018-2020. The estimated cost is ($70,000).



Purchase and install remote pick-up lockers. This is match money for grant applications for two lockers to be placed in the Centre Region that will allow people to securely pick up reserved items. This would be similar to the Amazon self-serve lockers on campus and in Downtown State College. The estimated cost is ($10,000).



Paint the interior of the library ($87,000).



Contingency – Budgeted for unanticipated emergencies or high-priority work identified in the facility assessment ($40,000).

The December 31, 2019 fund balance is budgeted at $229,827.

2019 Summary Budget – Executive Director’s Letter

CENTRE REGIONAL PLANNING AGENCY Fund Balance

The estimated January 1, 2019 fund balance for the Centre Regional Planning Agency is $45,950 compared to 2018 budgeted fund balance of $80,014, a decrease of $34,064. Because the COG uses its beginning year fund balances to offset municipal contributions this decreases accounts for over half of the proposed increases in municipal shares from 2018 to 2019.

Personnel

The staffing level is not proposed to change during 2019. It is recommended that the position of Sustainability Planner be upgraded to Senior Sustainability Planner given the responsibilities of the position and level of interaction with municipal officials, other organizations, and the public. This proposal is being considered by the Human Resources Committee during its October 3, 2018 meeting.

Revenues

Halfmoon Township asked that the level of municipal planning services that it receives from the CRPA be reduced from 40% of a local planner’s time to 33%. Municipal contributions for the regional and local planning are proposed to total $611,614, a $40,560 (7.1%) increase from the $571,054 that was budgeted for 2018. This is predominately due to the $34,064 lower beginning year fund balance. The individual costs of the two planning programs are: 

Local Planning Program (College, Halfmoon, Harris and Patton Townships) is estimated to total $302,750 ($285,724 for 2018), an increase of $17,026 (6%).



Regional Planning Program (all six Centre Region municipalities) is expected to be $308,864 ($285,330) for 2018), an increase of $23,534 (7.6%).

The requested reimbursement from Centre County government to the CRPA is $131,500, a $2,500 increase from the 2018 budgeted amount. This request has not been approved as of September 18, 2018. Expenditures

No significant expenditure changes are proposed for 2019.

Capital

$7,280 is proposed to replace the 2010 Ford Escape that is shared by the CRPA, the CCMPO and Refuse and Recycling Program. This replacement was anticipated in the Capital Improvement Plan.

2019 Summary Budget – Executive Director’s Letter

CENTRE COUNTY METROPOLITAN PLANNING ORGANIZATION (CCMPO) Fund Balance

The estimated January 1, 2019 fund balance for the Centre County Metropolitan Planning Organization is $57,762 compared to 2018 budgeted fund balance of $72,230 a decrease of $14,468. 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 2019 fund balance $7,657 is designated to replacement items in the Capital Improvement Plan.

Personnel

No additional staffing positions are proposed. However, the Program does contribute 10% of the Sustainability’s Planner’s compensation and benefits and with the proposed reclassification of that position those costs will increase.

Revenues

Centre Region municipal contributions are proposed to total $125,676, a $3,889 (3.2%) increase from the $121,787 budgeted in 2018. PennDOT base level of support provided to the CCMPO is estimated at $273,250 an $8,250 increase from 2018. Centre County’s cash contribution to the CCMPO is estimated at $32,285 a $359 increase from the 2018 budgeted amount of $31,926. 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 $126,001. CATA’s expected 2019 contribution of $19,312 is a slight increase over the 2018 budgeted amount of $18,750.

Expenditures

No significant expenditure changes are proposed for 2019. $8,000 is proposed to update the travel demand model and to renew the licenses for that model.

Capital

$7,280 is proposed to replace the 2010 Ford Escape that is shared by the CRPA, the CCMPO and Refuse and Recycling Program. This replacement was anticipated in the Capital Improvement Plan.

2019 Summary Budget – Executive Director’s Letter

PARKS AND RECREATION OPERATING Fund Balance

The estimated January 1, 2019 fund balance for the Centre Region Parks and Recreation Operating Budget is $261,851 compared to 2018 budgeted fund balance of $298,652, a decrease of $36,801. Of the 2019 fund balance $19,264 is designated to the Gift for Parks program. In addition, the fund balance includes $56,250 for the preparation of the Parks and Recreation Regional Comprehensive Plan.

Personnel

As proposed in the Program Plan two additional Park Caretaker positions are recommended. The positions would start in a staggered fashion – one is proposed to start in March the other in April. These positions are justified by the increased acreage and number of facilities the maintenance division supports and the difficulty in recruiting and retaining part-time employees in a very tight labor market. It should be noted that these positions will increase compensation and benefit costs from 2019 to 2020 because during 2020 the positions will be budgeted for a full year not a partial year as is the case in 2019. Also, much of the 2019 cost will be financed through the 2019 Operating Budget’s beginning year fund balance. This revenue source will not be available in 2020 because the 2020 beginning year fund balance is projected to be $0. Minimum starting salaries for seasonal part-time maintenance positions will be set at $10.00, an increase from 2018 rate of $9.50. Attracting and retaining seasonal staff has been a challenge during the last several years and it is hoped that the higher starting rates will make it easier for people to choose to work for the COG.

Revenue

Overall municipal contributions to the Parks Operating budget are proposed to increase from $1,370,842 (2018) to $462,862 (2019), a change of $92,020 about 6.7%. The Parks and Recreation Operating Budget accounts for about 20% of total municipal contributions. Beginning in 2018, 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 2019. Concession revenues are estimated to total $24,400, an increase of $1,400 from the 2018 budgeted amount. The provision of in-house concession services has been very successful both in terms of convenience to the customer and being financially self-sustaining.

Expenditures

Most non-employee related operating expenditures for 2019 will be about the same as for 2018.

2019 Summary Budget – Executive Director’s Letter

The Centre Region Parks and Recreation Authority voted to join C-NET and have its meetings cablecast on Channel 7. The cost of this service is $8,046. $56,250 is proposed to complete the preparation of the Parks and Regional Comprehensive Plan during 2019. In addition to the study costs $15,000 is included in the budget to conduct a statistically valid randomized survey of Centre Region households. The costs of this survey will be allocated to all six municipalities based on the standard COG formula including Halfmoon Township. Capital

Since 2013 the CRPR capital expenses have been paid directly through the Parks Capital Equipment Budget (see below).

PARK CAPITAL EQUIPMENT Fund Balance

The estimated January 1, 2019 fund balance for the Centre Regional Parks and Recreation Parks Capital Equipment Budget is $325,283 compared to 2018 budgeted fund balance of $254,215 an increase of $71,068. 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 2018 to 2019.

Revenues

Municipal contributions are proposed to total $162,900, an increase of $9,000 from the $153,900 budgeted amount for 2018.

Expenditures

$239,950 in capital expenses are proposed for 2019 as identified in the draft 2019 to 2023 COG Capital Improvement Plan (CIP) that was reviewed by the Finance Committee and General Forum. The six major proposals are: 

Purchase through a cooperative bidding contract two new pickup trucks. One truck was included in the 2018 CIP and one truck is new in 2019 to the CIP ($63,650 for both trucks).



Purchase a gently-used box truck and vehicle wrap for the new Rec-On-The-Go program. This purchase is new with the 2019 CIP (estimated $25,000 cost).

2019 Summary Budget – Executive Director’s Letter



Purchase the Planning Agency’s 2010 Ford Escape for the CRPR staff in order to reduce the use of personal vehicles for business purposes and to lower mileage reimbursement costs. This $5,000 expense is less than the $10,000 threshold to be included in the CIP.



Replace the 2006 Toro 4500-D mower. This purchase is included in the 2018 CIP ($61,800).



Replace the 1994 John Deere 5200 Tractor. This purchase is included in the 2018 CIP ($39,000).



Purchase a GPS field marking robot to paint lines on sports fields (note there are 30 fields that are marked during some part of the year). This purchase is new to the CIP in 2019 and has been explained in the Program Plan. It is intended to reduce the number of staff needed to stripe a field and to reduce the amount of paint needed. The Maintenance Division leased a robot during the 2018 season for six months. It worked well but additional analysis is needed before the acquisition is made ($40,000).

The December 31, 2019 ending year balance is budgeted at $251,183. AQUATICS OPERATING Fund Balance

The estimated January 1, 2019 fund balance for the Centre Region Parks and Recreation Parks Aquatics Operating Budget is $147,644 compared to 2018 budgeted fund balance of $108,629, an increase of $39,015.

Personnel

Wages for all pools’ seasonal staff will be increased by $.25 per hour. Attracting and retaining seasonal staff has been a challenge during the last several years and it is hoped that the higher starting rates will make it easier for people to choose to work for the COG. During 2018 there were a few occasions when the pools closed early because adequate staff to ensure a safe environment were not available.

Revenues

No municipal revenues are requested for 2019. 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 $541,525, a $69,625 increase from the $471,900 budgeted for 2018. Two factors for much of the increase in revenues are: additional income from concession/vending sales and facility reservation rentals (especially at Welch Pool).

Expenditures

Most non-employee related operating expenditures for 2019 will be about the same as for 2018.

2019 Summary Budget – Executive Director’s Letter

No transfer of funds between the Aquatics Operating Budget and the Pool Capital Budget is proposed for 2019. No transfer occurred in 2018 but $25,000 was transferred in 2017. POOLS CAPITAL Fund Balance

The estimated January 1, 2019 fund balance for the Pools Capital Budget is $79,132 compared to 2018 budgeted fund balance of $109,856, a decrease of $30,724.

Revenues

This Capital Budget proposes municipal contributions of $446,623 about the same as for 2018 to repay a debt to Jersey Shore Bank 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 $42,500, a $5,000 increase from 2018.

Expenditures

$50,000 is recommended to re-plaster the pool and replace discolored and broken Plexiglas at the Park Forest Pool. $20,000 is proposed to clean and re-stain the buildings in order to protect them and improve their appearance and replace discolored and broken Plexiglas at Welch Pool. In addition, one building may be re-configured to include a concession stand. The December 31, 2019 ending year balance is budgeted at $53,632 a significant decrease from the 2018 budgeted amount of $120,356.

ACTIVE ADULT CENTER (formerly the Senior Center) Fund Balance

The estimated January 1, 2019 fund balance for the Centre Region Parks and Recreation Parks Active Adult Center is $66,546 compared to 2018 budgeted fund balance of $49,611, an increase of $16,935. Most of this increase is due funds that have been donated and are reserved for the Phase II construction improvements to the center.

Personnel

No staffing changes are proposed.

Revenues

It is anticipated that a new agreement with Centre County government will be in place for the operation of the Center beginning January 1, 2019. With the implementation of this new agreement the County will treat the

2019 Summary Budget â&#x20AC;&#x201C; Executive Directorâ&#x20AC;&#x2122;s Letter

Center as an independent contractor. This change has several benefits to the COG. First, County financial support will be in the form of one lump sum instead of contributions to particular line item accounts. Currently, some costs are entirely paid by the COG and other costs are shared between the County and COG. Second, the amount of funding the County will provide will increase from the 2018 budgeted amount of $93,547 to $104,853. In addition, the County will contribute an additional $5,000 toward the debt that was incurred to renovate the space would become the Center. And, third, the agreement provides for increased funding for 2020 and 2021. In the past, funding commitments from the County were limited to one year. 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 $150,681 (2018) to $156,596 (2019) an increase of $5,915 or 3.9%. Costs are allocated among the municipalities based on the residency of the individual who use the Center. Consequently, not all municipal shares are change by the same percentage because the use of the Center by Borough/Township resident changes from year to year. Expenditures

No significant expenditure changes are proposed for 2019 with the exception of a rental increase from $13 to $14 per square foot per year as anticipated in the lease agreement that the Centre Region Parks and Recreation Authority has with the Nittany Mall. The new rental rate remains competitive with other rental options available in the Centre Region.

Capital

In 2018, A Pennsylvania Department of Aging Grant was awarded for projects occurring between June 15, 2018 and June 14, 2019. This grant in conjunction with the balance of Phase II donations will provide the funding to install permanent entrance signage, mount drop down wall partitions, enclose the front entrance for better sound and HVAC management, replace sections of the flooring, install a rear office divider door, and upgrade door hardware.

REGIONAL NATURE CENTER - OPERATING Fund Balance

The estimated January 1, 2019 fund balance for the Millbrook Marsh Nature Center’s Operating Budget is $67,379 compared to 2018 budgeted fund balance of $45,999 an increase of $21,380.

2019 Summary Budget – Executive Director’s Letter

Personnel

It is proposed that the status of the part-time Staff Assistant position be changed to full-time status. The estimated cost of this change is $40,681 ($24,801 for benefits assuming family coverage and $15,880 for compensation). The change is recommended because the numbers of participants attending programs, camps, events and visitors to the site continue to increase, as do the number of facility rentals and rental inquiries received. A portion of this cost will be offset in 2019 by the higher than anticipated beginning year fund balance. This may not be the case for the 2020 budget.

Revenues

Municipal shares for 2019 are proposed to total $89,881, an increase of $10,892 (13.8%) from the 2018 appropriation of $78,989. Income from facilities rentals (the Education Building and/or the Barn) are projected to increase from $13,000 (2018) to $20,000 (2019). The buildings at the Nature Center have become a popular site for weddings. Program fees are estimated to total $78,800 during the upcoming year, a $4,680 increase from the 2018 budgeted amount of $74,120. Operational donations for operational expenses are expected to total $43,000 in 2019 compared to the 2018 budgeted amount of $40,000. The 2019 projection is reflective of the actual donations received in the past. Community donations are difficult to accurately estimate.

Expenditures

Non personnel 2019 estimated operating costs at the Nature Center are about the same as for 2018. During 2019 these costs are projected to total $68,613 compared to $67,211 for 2018, an increase of $1,402.

NATURE CENTER - CAPITAL Fund Balance

The estimated January 1, 2019 fund balance for the Centre Region Parks and Recreation Parks Millbrook Marsh Nature Center Capital Budget is $610,178 compared to 2018 budgeted fund balance of $305,630. The increase is due to contributions received for the Phase II construction of the Spring Creek Education Building including a single $250,000 donation.

Revenues

Municipal contributions are proposed to increase from $25,000 (2018) to $50,000 (2019). These funds will be applied to the barn roof replacement or repair project, the re-staining of barn and education building and repairing the boardwalk. As reported to the Finance Committee, capital funds to make the needed repairs to facilities at the Nature Center are not adequate.

2019 Summary Budget â&#x20AC;&#x201C; Executive Directorâ&#x20AC;&#x2122;s Letter

During 2019, Capital Campaign donations from the public for the Phase II addition to the Spring Creek Education Building are estimated to total $400,000 compared to the $407,500 budgeted amount for 2018. CRPR staff have applied for a $255,000 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 2019 to 2023 CIP, $25,500 is recommended to repair the barn roof ($10,000) and to stain the exterior of the barn and education building ($15,500). As reported at the September 13, 2018 Finance Committee meeting the condition of the metal roof at the barn is in worse condition than initially believed when the 2019 Program Plan was prepared as this document is being written. While the roof structure is sound, the corrugated metal roof is leaking in multiple locations in all parts of the barn. The roof may need to be replaced. One contractor’s estimated is $140,000. This contractor’s estimate does not include the cost of preparing the bidding specification or completing the project under prevailing wage regulations. As an alternative to a roof replacement the option of sealing the roof is also under consideration. The condition of the roof and the options for repairing or replacing it need to be examined in more depth. $5,000 is proposed for architectural fees associated with the preliminary work relating to the preparation, design, and construction documents for the Phase II Education Building project.

REGIONAL PARKS CAPITAL Fund Balance

The estimated January 1, 2019 fund balance for the Centre Region Parks and Recreation Parks Regional Parks Budget is $2,009,789 compared to 2018 budgeted fund balance of $2,156,021. The decrease of $146,232 is primarily due to the expenditures of funds during 2018 to pay for planning and engineering costs relating to the Whitehall Road Regional Park Project. 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, 2019 budgeted fund balance is $45,125 ($48,413 budgeted 2018).



Unrestricted – Regional Parks: This fund balance is designated to finance the expenses associated with constructing Whitehall Road Regional Park. The January 1, 2019 budgeted fund balance is $1,964,664 compared to the $2,107,878 that was budgeted for 2018.

2019 Summary Budget – Executive Director’s Letter

Revenues

Municipal contributions for funding the principal and interest expenses relating to the 2011 borrowing (renegotiated in 2015 and 2018) from Fulton Bank for the development of the regional parks is estimated to total $350,000, no change from 2018. Municipal contributions for repaying a seven year loan from the Centre Region Code Administration are projected to total $21,190. 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 mid2014. Proceeds from the 2011 loan with Fulton Bank that will be issued to the Centre Region Parks and Recreation Authority for the purpose of building the Whitehall Road Regional Park are estimated to total $798,000 for 2019. $16,500 is estimated for rental income from the leasing the house at Oak Hall Regional Park. The Oak Hall rental house was renovated in 2016 and is currently rented.

Expenditures

$100,000 is proposed for the preparation of land development plans, studies, and bidding documents relating to the development of Whitehall Road Regional Park during 2019. $2,000,000 is proposed to begin the construction of Whitehall Road Regional Park during the spring of 2019. This will be a two year project.

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 2019 Summary Budget is submitted to the General Forum for its consideration beginning at its October 29, 2018 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 2018. The revisions recommended by the Committee are shared with the General Forum at its November 26, 2018 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.

2019 Summary Budget â&#x20AC;&#x201C; Executive Directorâ&#x20AC;&#x2122;s Letter

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 2019 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

2019 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

2016

2017

2018

2019

Parks & Recreation

30.3%

$ 6,441,550

40.9%

$ 9,945,293

33.7%

$7,864,272

34.95%

$9,077,493

Library

14.2%

3,012,523

12.6%

3,055,489

13.5%

$3,147,572

11.7%

3,059,412

Code Administration

31.8%

6,750,313

25.7%

6,241,376

27.9%

$6,495,955

28.6%

7,444,323

Fire Protection, EM

11.2%

2,377,253

8.5%

2,055,109

11.1%

$2,587,028

11.8%

3,076,679

CRPA/CCMPO

6.2%

1,321,874

5.7%

1,385,124

6.0%

$1,395,747

5.4%

1,394,265

Administration

6.3%

1,348,064

6.6%

1,614,547

7.8%

$1,805,467

7.6%

1,999,857

TOTAL

100%

$21,251,577

100%

$24,296,938

100.0%

$23,296,041

100.0%

$26,052,029

PENNSYLVANIA STATE UNIVERSITY CONTRIBUTIONS Contributions from the Pennsylvania State University and private donations are assigned to user fees and other revenues. For 2019, 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 significant contribution to the Fire Protection Program by allowing its staff to serve as volunteer firefighters during working hours. Regional Service

2014

2015

2016

2017

2018

2019

Fire Operations

$75,767

$85,449

$88,658

$89,653

$101,201

$108,222

Fire Capital

83,080

83,980

85,144

88,390

$90,688

$93,046

$158,847

$169,429

$173,802

$178,043

$191,889

$201,268

TOTAL

2019 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:

2012

Municipal Contributions $5,647,726

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

2019

$7,087,989

$11,050,660

$1,026,415

$6,886,965

$26,052,029

Year

Fund Balance

Grants

$5,863,959

$1,044,063

User Fees & Other Revenues $6,861,769

Total COG Budget $19,417,517

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:

2019 Summary Budget â&#x20AC;&#x201C; Budget Comparisons

COG Formula – Municipal Percentages 2012

2013

2014

2015

2016

2017

2018

2019

State College Borough

21.86%

22.04%

22.13%

22.25%

22.14%

21.19%

22.34%

22.79%

College Township

16.99%

16.89%

16.62%

16.44%

16.42%

16.31%

16.06%

16.17%

Ferguson Township

26.63%

26.51%

26.34%

26.79%

28.20%

26.69%

26.46%

Halfmoon Township

4.72%

4.37%

4.41%

4.40%

4.28%

4.14%

4.25%

4.32%

Harris Township

9.02%

9.06%

9.13%

9.23%

9.19%

9.30%

9.33%

Patton Township

20.78%

21.13%

21.37%

21.44%

21.14%

20.97%

21.36%

20.93%

TOTAL

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, Active Adult 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 Active Adult Center Budget is based on the number of individual participants visiting the center. The Schlow Library is requesting a 4% increase in municipal contributions ($59,162) for 2019. Individual municipal shares vary slightly each year because of changes in library use. Based on the General Forum’s action 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 (7/1/15 – 6/30/18). 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 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.

2019 Summary Budget – Budget Comparisons

Municipal Percentages of Library Budget 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

State College Borough

32.89%

32.28%

31.45%

31.10%

29.74%

30.21%

30.32%

29.78%

29.60%

28.97%

College Township

10.98%

11.45%

12.07%

12.86%

12.47%

12.33%

13.22%

13.92%

13.85%

14.40%

Ferguson Township

28.46%

28.19%

28.55%

27.64%

28.71%

28.79%

29.05%

28.53%

28.79%

28.74%

Halfmoon Township

3.41%

2.99%

2.95%

2.69%

2.54%

2.53%

2.95%

3.32%

3.21%

3.38%

Harris Township

6.82%

6.03%

6.37%

7.24%

7.27%

7.08%

6.22%

6.43%

6.67%

6.88%

Patton Township

17.44%

18.41%

18.61%

18.47%

19.35%

19.06%

18.24%

18.02%

17.88%

17.63%

100.00% 100.00%

100.0%

TOTAL

Municipal contributions to the Active Adult Center Budget are proposed to total $163,196, a 1.03% increase from 2018. 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 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

State College Borough

35.12%

31.29%

32.11%

37.23%

44.15%

36.99%

35.48%

26.16%

24.22%

21.68%

College Township

24.34%

25.46%

30.87%

32.11%

29.88%

30.40%

29.29%

29.00%

30.21%

28.18%

Ferguson Township

20.62%

18.70%

16.02%

12.10%

10.95%

12.92%

13.79%

27.80%

23.70%

26.02%

Harris Township

5.37%

7.22%

5.64%

4.41%

3.10%

6.32%

8.72%

4.34%

10.67%

11.92%

Patton Township

14.55%

17.33%

15.36%

14.15%

11.92%

13.37%

12.72%

12.70%

11.20%

12.20%

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). 2019 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, 2019, 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:

Municipality

2002 % Share of COG Building Ownership

2019 Payment by Municipality

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

27.84% 23.13% 18.99% 16.71% 9.39% 3.94% 100.00%

$51,558 42,836 35,168 30,946 17,390 7,297 $185,195

2019 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.

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.

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 – 2018 Danelle Del Corso, Chair Steve Miller, Vice Chair Elliot Abrams Frank Harden Evan Myers Carla Stilson

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

2019 Summary Budget – Office of Administration

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 2018 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 Ad Hoc COG Facilities Committee

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. AD FUNDING FORMULA The Office of Administration is funded primarily through RRegionaAd Hoc Committees by theon General municipal contributions that areestablished allocated based the COG Forum funding formula that was approved by the General Forum during its June 22, 2009 meeting as annually updated.

2019 Summary Budget – Office of Administration

BUDGET HIGHLIGHTS In many ways the 2019 Budget for the COG Office of Administration is similar to 2018 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, 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 2019 no staffing changes are proposed. Consequently, the Administrative Budget is relatively flat from 2018 to 2019 in terms of municipal contributions. PERSONNEL CHANGES The 2019 Detailed Budget does not propose any personnel changes for the Office of Administration. REVENUE 

The estimated January 1, 2019 beginning year fund balance for the Office of Administration is $70,309 compared to the 2018 budgeted balance of $62,429. Of the 2019 beginning year fund balance $20,000 is a carry-over from the 2018 Budget and is designated for the Information Technology Study that was to be completed in 2018 but was delayed until 2019. In addition $6,000 is carried forward to conduct a customer satisfaction survey for the New Construction Program and $2,000 to conduct supervisory training relating 45

suggested expenditure should be public education programs. For instance, the idea of preparing a C-Net video about the COG Agencies was recommended.

to the implementation of the new employee personnel policy handbook that is expected to be adopted in late 2018/early 2019. 

For the fiscal year 2019, municipal contributions are budgeted at $385,583, a $10,694 decrease (2.7%) from the $396,277 that was budgeted for 2018.



All COG Agencies receive their financial, investment and accounting services through the Office of Administration. During 2019, the Office of Administration will be reimbursed $131,000 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 2019 these reimbursements are estimated to total $154,400.



The proposed 2019 budget proposes no staffing changes. The wages are adjusted in accordance with the COG policy that set the cost of living adjustment at 2.3% (the average change in the Consumer Price Index from July 1, 2017 to June 30, 2018).



For the fiscal year 2019, expenditures for full-time salaries are budgeted at $354,492 an increase of $17,159 from the $337,333 budgeted in 2018. Included in the increase are the 2018 merit adjustments for the administrative staff and an advance to a higher pay range for the Human Resources Officer upon her earning a Certificate in Human Resources from the Human Resources Institute.



New for 2019 is a $450 membership to the Pennsylvania Employer Labor Relations Advisory Service (PELRAS) and $1,000 to fund PELRAS related legal expenses relating to the resolution of personnel questions that impact multiple COG Agencies.

EXPENDITURE ITEMS

CAPITAL ITEMS

Personnel and Operating expenses for the Office of Administration are expected to total $741,392, an $11,986 increase from the 2018 budget amount of $729,406. This increase in primarily due to the following:



A new, one-time expense, proposed in the 2019 Program Plan is $5,000 to fund activities relating to COG’s 50th anniversary. In discussing this initiative the municipal governing boards/council stressed that the primary focus of this 2019 Summary Budget – Office of Administration

Funds in the amount of $1,000 is proposed to purchase two height adjustable computer desks; one for the Office Manager and a second unit for the Executive Director.

COMMITTED FUND BALANCE 

No funds are anticipated for a December 31, 2019 ending year fund balance for the COG Office of Administration Budget.

LOOKING AHEAD Looking ahead to the 2019 budget and beyond some of the issues of concern to the Office of Administration are: 

The Ad Hoc Facilities Committee is looking into how COG manages, depreciates, and provides custodial services for all the buildings and facilities (for example: three fire stations, regional parks, library, swimming pools, nature and active adult centers) that it funds. It is likely that the Facilities Committee will conclude that the COG can be doing a better job in some areas. Currently, the Office of Administration is not staffed to take on these new responsibilities.



The position of Executive Director should be evaluated to determine if the number of direct personnel reports (currently 9), scope of responsibilities and priorities is consistent with the expectations of the General Forum. Over the years the COG has evolved into a complex organization with a budget in excess of $26 million; 80 full-time employees; 300 seasonal, part—time, or contract staff; many committees and subcommittees; and more services provided to the public. It is probably time to access the organizational structure of the Office of Administration

2019 Summary Budget – Office of Administration

COG 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.

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 Regional Organics Recycling Program.

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; 2018 Dennis Hameister, Chair Carla Stilson, Vice Chair Betsy Whitman Peter Buckland Jesse Barlow Barbara Spencer

are away from the office, Office of Administration staff provides support.

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 2019 Summary Budget â&#x20AC;&#x201C; Refuse and Recycling

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. 48

Beginning in 2010, the refuse and recycling contract has included Benner Township and its 1,700 households. On January 1, 2015, 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. 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. Twenty-eight 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. 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. As authorized by the General Forum at its September 28, 2015 meeting, the COG Refuse and Recycling Program has been working on developing and implementing a Regional Organics Recycling Program, which is proposed to “go-live” in early 2020. The proposed Regional Organics Recycling Program will consider residents’ demands, associated costs, and customer service issues 2019 Summary Budget – Refuse and Recycling

in order to determine the best long term solution to the solid waste piece of sustainability in the region. SERVICES PROVIDED In 2018, the regional refuse and recycling contract covers approximately 15,575 households. The original 1992 contract provided service to approximately 7,800 households. The typical household generates approximately 1,560 pounds (0.78 ton) of refuse and 380 pounds (0.19 ton) of recyclable materials per year. Services associated with the Regional Refuse and Recycling Program include: 

Weekly refuse and recycling collection



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



Enforcement of municipal solid waste and recycling ordinances

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.

BUDGET HIGHLIGHTS 

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



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 2019. 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 2019 budget includes its fourth 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. 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

REFUSE/RECYCLING MONTHLY RATE STRUCTURE The new 2015–2019 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 2015-18 previous contract 8-Bag Curbside Refuse Service $12.57 $11.99 Recycling Service

$3.15*

Total 8-bag Refuse/Recycling

$15.72

$3.62

2019 $11.99 $3.62

$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 2019 rate is likely to remain unchanged from the 2018 rate; however, it is not finalized until November of each year.

2019 Summary Budget – Refuse and Recycling

creation of the bid specifications and an educational outreach program. 

The committed fund balance will start to be used in 2019 to help offset costs necessary to develop and implement an Organics Recycling Program with a “go-live” date during early 2020.



In 2019 the 2 largest expenditures are:  The proposal to change the part-time Refuse and Recycling Administrator position to a full-time position, which includes benefits  Increased public education expenditures needed to ensure a well-informed customer base about the coming changes (cart collection and organics recycling).

2019 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 45 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. To expedite the conduct of business, the General Forum during its November 27, 2018 meeting authorized the Executive Director to expend up to $4,000 from the Contingency Fund “with the requirement that all expenditures occur in a manner consistent with the COG purchasing policy. 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 2019 Summary Budget – Contingency Fund

COG’s financial management system. It permits the agencies to adjust to unexpected developments while maintaining existing 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 and 2019 Budgets the Committee recommended a threshold of approximately $25,000.

BUDGET

REVENUE 

The estimated January 1, 2019 committed fund balance for the COG Contingency Fund is $26,910.



Interest revenue is budgeted at $200.



In combination, the fund balance and interest revenue total $27,110, very close to the recommended budget threshold of $25,000. Consequently, no municipal contributions are recommended for 2019.

EXPENDITURES 

No expenditures are proposed for the 2019 Contingency Budget. If there are no charges then the December 31, 2019 fund balance is anticipated to be $27,110.

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 2018, there was one expenditure from the Contingency Budget. At its May 2016 meeting the General Forum approved a $15,000 expenditure from the Contingency Fund to obtain a “walking estimate” of the costs for connecting the six Centre Region municipalities and the COG to the KINBER fiber optic network. The expenses for this study were split into two phases, the first of which incurred in 2017 ($7,500) and the second in 2018 ($7,500).

2019 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.

2019 Summary Budget â&#x20AC;&#x201C; COG Building Capital

COG Finance Committee â&#x20AC;&#x201C; 2018 Bud Graham, Chair Evan Myers, Vice Chair Sara Carlson Danelle Del Corso Rich Francke George Downsbrough

Harris Township State College Borough Ferguson Township Halfmoon Township College 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 2019 to 2023 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 2019. AD HOC COG FACILITIES COMMITTEE

Committee meeting, the committee asked the COG Executive Committee to recommend to the General Forum that an Ad Hoc COG building committee be established to identify recommendations for meeting COG’s building needs in the future for all facilities that are primarily funded through the COG. The General Forum established the committee during its January 22, 2018 meeting. On April 3, 2018 the Ad Hoc Facilities Committee held its first meeting and have been meeting monthly since then. The committee’s charge is to: 1. Improve the data surrounding the capital improvement and replacement plan as it pertains to the capital needs, whether that be new or replacement, of the various facilities owned or rented by the COG. 2. To plan for future COG growth and the related facilities needs of COG on a comprehensive basis.

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

In the 2017 Program Plan the staff recommended that a discussion begin regarding the capital needs and expansion potential of the COG building. At the August 14, 2017 Finance 2019 Summary Budget – COG Building Capital

BUDGET HIGHLIGHTS The major proposals included in the COG Building Capital Budget are: REVENUE 

The January 1, 2019 committed fund balance for the Building Capital Budget is $130,153. These funds are reserved for the replacement of major items in the COG Building.



The proposed 2019 combined municipal contribution to the Building Capital Fund is $34,411, a $3,011 increase from the 2018 budgeted amount.



Internal transfers to the COG Building Capital Fund from three COG programs are proposed for 2019 total $15,180. They are:  New Construction – $9,400  Existing Structures – $4,050  Regional Refuse – $1,680

EXPENDITURES During 2018, a number of COG Building projects were complete including the installation of automatic door openers, the replacement of a gas boiler, repair of the front entrance brick walkway, replacement of the chairs in the forum room, and the removal of the pocket door between the HR Officer and Executive Director’s Office. In addition, the COG Building’s connection to the high speed KINBER fiber optic line should be complete by the end of the year. The proposal to install an emergency power generator was withdrawn pending the outcome of the Ad Hoc 2019 Summary Budget – COG Building Capital

COG Facilities Committee’s evaluation of the future of the COG Building. As a consequence the number of projects proposed for 2019 are more modest. The 2019 Building Capital Budget proposes $80,000 to complete the following improvements in the upcoming year: 1. $15,000 is proposed to update the audio system in the General Forum Room. During large meetings such as the General Forum it can be difficult for all attendees to hear and it can be difficult to hear sometimes while viewing the C-Net recording of meetings. $5,000 includes the installation of a hearing loop system to help people who use hearing aids. It can also be referred to as an induction system and is similar to what Patton Township recently installed. The hearing loop is wireless device technology that works with telecoil hearing aids to produce clear sound. In order for the hearing loop to be used, microphones are needed to capture people’s voices. Fifteen (15) gooseneck microphones, which cost $4,500 are the minimum needed for a General Forum meeting (largest setting) to provide adequate sound. These microphones to our audio system, the hearing loop, and C-Net’s recording system. The remaining funds are for installation, hardware, and a cart to hold the equipment. 2. During its budget review session the Finance Committee unanimously voted to replace the tables in the Forum Room as recommended by the COG Executive Director. 3. $50,000 is proposed to conduct evaluations of COG owned and COG related facilities beginning with the COG building. Building systems that will be assessed include: HVAC, plumbing, electrical, parking, energy efficiency, and 56

architectural components. In addition, the opportunity for expansion of the buildings will be reviewed. The exact scope of work and cost of this study is not known at the time the Detailed Budget is prepared. The cost estimate is based on a similar evaluation conducted of the library. This new expenditure is recommended by the Ad Hoc Facilities Committee.

began in 2003 and ends in 2028. In 2019 there will be nine years left on the lease. 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 nine 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 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

2019 Summary Budget â&#x20AC;&#x201C; COG Building Capital

The Finance Committee and General Forum both agreed that it is important to look ahead at investments that will be needed in the COG Building. As a result of this concern, the General Forum in 2018 established the Ad Hoc COG Facilities Committee. There are immediate 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. 57

During 2019 and 2020, a more immediate focus of the Ad Hoc COG Facilities Committee will be an assessment of the COG Building relative to office space needs of the agencies. Beginning in 2019 the Codes Agency will add three additional staff members (a Permit Technician and two Commercial Plan Examiners/Inspectors). While there are work spaces for them, they are not adequate. Two spaces are in storage areas that are removed from the rest of the staff. In addition, the two inspectors will add two personal vehicles and two business vehicles to the COG parking lot that is already experiencing capacity problems. Also, in the future, it is likely that additional COG administrative staff will be needed for facility management and/or to handle the work load for an organization with a $26 million dollar budget, 26 individual funds, and 400 part-time and seasonal employees. The COG is running out of space. The Executive Director believes that two of the options that should be examined by the committee are: 1. Add on to the COG building with the costs paid by the Code Agency. 2. Relocate the Parks and Recreation Agency to another location. 2019 FUND BALANCE The December 31, 2019 committed ending year fund balance is anticipated to be $93,144 compared to $100,043 for 2018.

2019 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.

2019 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 – 2018 Bud Graham, Chair Evan Myers, Vice Chair Sara Carlson Danelle Del Corso George Downsbrough Richard Francke

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

Human Resources Committee – 2018 Nigel Wilson, Chair Anthony Fragola, Vice Chair David Brown Jessica Buckland Tony Ricciardi Bob Strouse

Harris Township College Township State College Borough Patton Township Ferguson Township Halfmoon Township 59

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 municipal entities with over 9,000 employees.

2019 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

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Ferguson Township

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Patton Township

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Centre Area Transportation Authority (CATA)

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Centre Region COG

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College Township (joined in 2012)

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Bellefonte Borough (joined in 2012)

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Harris Township (joined in 2013)

Who does what? 



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 2017, the surplus claim money returned to all PMHIC members exceeded $19 million.

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. 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 2019 Summary Budget – Insurance Reserve

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 2019, it is proposed that 10% of the cost of employee medical insurance be paid from the Insurance Reserve Fund, an increase from the 8% paid for 2018.  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 The 2019 beginning year balance for the Insurance Reserve Fund is anticipated to total $531,155 compared to $464,418 budgeted for 2018. This increase is due to a $189,765 reimbursement that the COG received in 2018 from PMHIC because during 2017 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.

REVENUE 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. Consequently, the practice had been to project no reimbursement income. Members of the Finance Committee viewed this approach as too conservative and recommended a reimbursement be included. For the 2018 Budget a reimbursement of $25,000 was projected. Looking ahead to the 2019 Budget a $125,000 reimbursement is proposed. This amount has been calculated by averaging the reimbursements over a seven year period after removing the high and low yearâ&#x20AC;&#x2122;s reimbursement. Based on a 2018 mid-year report, it appears as though COG may receive a refund during 2019 for the 2018 premium year. Interest earnings are budgeted at $3,750 in 2019. EXPENDITURES During 2019 the Insurance Reserve Budget is proposed to be used as follows: COG-Wide Premium Subsidy For the last several years, COG has subsidized a portion of the total premium for medical insurance using the Insurance Reserve Fund. The proposed 2019 subsidy of $195,000 an increase of $55,000 from the 2018 budgeted amount of $140,000. The proposed subsidy is equal to about 10% of the total employee 2019 Summary Budget â&#x20AC;&#x201C; Insurance Reserve

health insurance premiums. Employee health care costs are allocated among the COG, the employee, and the Insurance Reserve Fund. The 2019 Insurance Reserve Budget proposes the following plan for the distribution of employee health care costs: 2017

2018 2019 Proposed

81% COG as Employer 8% Insurance Reserve 11% Employee 81% COG as Employer 8% Insurance Reserve 11% Employee 80% COG as Employer 10% Insurance Reserve 10% 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. Subsidy for Unanticipated Changes in Agency Premiums 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 62

was budgeted. For 2019, the proposed premium subsidy is $30,000, no change from 2018. Employee Wellness Program In accordance with a recommendation from the Human Resources Committee, proposed 2019 expenditures for the Employee Wellness Program Budget are not to exceed $11,210 compared to the 2018 budgeted amount of $15,000. The bulk of the $3,790 decrease is due to more accurate budgeting after the expansion of the weight management reimbursement program to included other qualified exercise program that promote movement and muscle development (e.g. gym memberships, yoga classes etc.). The maximum reimbursement is $25 per month per employee. 2019 Committed Year End Fund Balance The 2019 committed fund balance ending year is anticipated to be $421,195 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 three aforementioned expenses during 2019 and 2020 in the event the COG does not receive a reimbursement payment for those two years. 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.

2019 Summary Budget â&#x20AC;&#x201C; Insurance Reserve

COG UNEMPLOYMENT INSURANCE RESERVE BUDGET

MISSION

PROGRAM BACKGROUND

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.

This budget was established beginning with the 2018 COG Budget to more clearly identify and track expenses for unemployment insurance. The 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.

POLICY OVERSIGHT Expenditures from the COG Unemployment Fund are reviewed by the Finance Committee as part of the COG Budget process. Finance Committee – 2018 Bud Graham, Chair Evan Myers, Vice Chair Sara Carlson Danelle Del Corso George Downsbrough Richard Francke

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

STAFF SUPPORT The Unemployment Fund is administered by the COG Office of Administration.

2019 Summary Budget – Unemployment Reserve

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.

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

The estimated January 1, 2019 committed fund balance for the Unemployment Insurance Reserve Budget is $65,002, a $7,654 increase from the 2018 budgeted amount of $57,348.

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Inter-Agency transfers into the budget are estimated to total $34,065 a $9,506 increase from the 2018 budgeted amount of $24,559.

EXPENDITURES 

Based on COG’s history of unemployment claims, it is expected that during 2019 the COG will pay $18,685 in claims as approved by the Commonwealth of Pennsylvania. It is important to note that is an estimate based on historical experience, employee turn-over can be and often is unexpected.

COMMITTED FUND BALANCE 

The December 31, 2019 ending year fund balance for the Unemployment Budget is $80,882 a $16,750 increase from the 2018 budgeted amount of $64,132.

2019 Summary Budget – Unemployment Reserve

COG 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.

Tom Fountaine Jim Steff Shawn Kauffman Brian Bittner Steve Miller

POLICY OVERSIGHT

Oversight of the program is provided as follows:

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.

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

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The EM Council recommends the appointment of the EM Coordinator and Deputy EM Coordinator to the General Forum.

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.”

 During an emergency, the EM Coordinator and essential EM Council members report to the Emergency Operations Center (EOC). 

Emergency Management Council – 2018 Doug Erickson, Chair Adam Brumbaugh David Pribulka Susan Steele Amy Farkas

Patton Township College Township Ferguson Township Halfmoon Township Harris Township

2019 Summary Budget – Emergency Management

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

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

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Four Volunteer Deputy Emergency Management Coordinators 66

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

Shared Office Manager with the Fire Program

BUDGET

Capital:

FUNDING FORMULA

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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 2019, no funds are budgeted for emergency equipment capital projects.

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$9,400 is being budgeted to transfer to the Centre Region Fire Program for staff support, office space, and supplies.

BUDGET HIGHLIGHTS Revenue: 

The 2019 committed fund balance of $47,042 includes $14,744 in operating funds and $32,298 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.

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Municipal contributions are proposed to increase by $1,841 from $126,830 to $128,671 in 2019.

Expenditures: 

The Emergency Management Program will replace the program vehicle in 2019. The 2010 Ford Explorer will be transferred to the Fire Protection Program and replaced with a 2019 Ford F150 or similar light duty pickup truck.

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The Emergency Management Program Budget continues to include $4,788 for a regular summer intern position. The intern will provide 300 hours to the EM Program.

2019 Summary Budget – Emergency Management

COG EMERGENCY MANAGEMENT CONTINGENCY 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 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.

2019 Summary Budget – Emergency Management Contingency

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.

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 $1,250 are proposed for 2019. 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 2019.

2019 Summary Budget â&#x20AC;&#x201C; Emergency Management Contingency

COG CODE – NEW CONSTRUCTION PROGRAM MISSION 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. 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. January 1, 2019, the Agency will begin providing sewage enforcement officer (SEO) services for Halfmoon, College, and Ferguson Townships. The SEO and SMP services will be performed by the New Construction staff. 2019 Summary Budget – Code Administration New Construction

Policy oversight of the CRCA is provided by the Public Safety Committee, which is comprised of one elected official from each participating municipality. Public Safety Committee – 2018 Steven Lyncha, Chair Cathy Dauler, Vice Chair Dan Trevino Sara Carlson Randy Brachbill Mark Stevenson Nigel Wilson

College Township State College Borough Patton Township 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 2019 are: 70

Full-time: Agency Director (Code Official)* Codes Services Manager (to be filled 1/19) Administrative Staff (1 new) Commercial Plans Examiner/Inspector (2 new) Sr. Commercial Building Inspector Electrical Inspector

VALUE OF NEW CONSTRUCTION 1 position 1 position 4 positions 9 positions 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 – The participating municipalities have authorized the CRCA to administer the following statewide codes:

Year 2011 2012 2013 2014 2015 2016 2017 2018* 2011 – 2017 Average

Total Value of New Construction 148,259,102 176,419,936 160,966,574 149,422,950 265,563,233 251,767,097 266,748,479 114,036,459 $202,735,339

Number of Permits 1,607 1,774 1,762 1,616 1,477 1,569 1,544 679 1,621

* January 1, 2018 through May 31, 2018

The following graph summarizes the number of building permits per year that have been issued by the CRCA since 2011. During this period, the average annual number of permits was 1,621.

2015 International Building Code 2015 International Residential Code 2015 International Mechanical Code 2015 International Plumbing Code 2015 International Fuel Gas Code 2015 National Electrical Code 2015 International Existing Building Code 2015 International Energy Conservation Code 2015 International Urban Wildlife Interface Code 2015 International Fire Code 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 $1.6 billion dollars in new construction. 2019 Summary Budget – 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 2019. 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.

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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

2019 Summary Budget – Code Administration New Construction

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.

Ferguson and Halfmoon Townships. The SEO program is expected to generate $16,000 in revenue and the sewage management program is expected to generate $8,470.

The permit fee multiplier is reviewed annually by the COG Finance Committee. A decrease of the building permit fee multiplier is proposed for 2019. The current permit fee multiplier is .0060, the proposal is to lower the multiplier to .0055 a reduction in the cost of a building permit of 8.3%. By way of example, currently the permit fee for a $50,000 project would equal $300; a $50,000 project with the reduced multiplier will equal $275.

EXPENDITURES 

In 2019 $28,000 has been budgeted to hire an IT consultant to identify and evaluate options and costs to the Agency’s current software. In 2018 a meeting was held with the member municipalities to discuss the function and future vendor support of the current software. It was agreed that a wide evaluation of alternative software packages and providers should be made.

BUDGET HIGHLIGHTS

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Small tools and minor equipment budget amount has been increased by $2,040 to $7,540 to purchase the equipment required to provide the sewage enforcement services.

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$95,200 has been budgeted for administrative services. The Agency reimburses the Office of Administration for services provided including financial, human resources, legal, and staff support. This is an increase of $5,600 from the 2018 budget.

A 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 2019 beginning year committed fund balance for Building Permit fees is $725,024; the ending year committed fund balance for Building Permit fees is $708,126. REVENUE 

During 2019, revenue from building permits is expected to generate $1,545,000, an increase of $523,000 from the amount that was budgeted in 2018. The increase reflects the continued construction activity.



Beginning in 2019 the new construction staff will begin to provide sewage enforcement services (SEO) to College,

2019 Summary Budget – Code Administration New Construction

PERSONNEL CHANGES 

As proposed in the Program Plan, the 2019 Summary Budget allows for two full-time Commercial Plans Examiner/ Inspectors. The work of one position will include SEO responsibilities in addition to plan review and field inspections. The second will be a dedicated plans examiner/ inspector. The annual compensation for these position is proposed to be in the range of $84,000 depending on qualifications (including benefits).

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A new Permit Program Technician position was proposed in the 2019 Program Plan. The employee’s workload will be split 75% new construction program and 25% sewage enforcement program. In addition they will take over the sewage management program and provide backup assistance to the current administrative staff. The estimated cost for this position is $63,600 (including benefits).

LOOKING AHEAD Looking ahead to 2020 and beyond, some of the issues of concern for the CRCA are: 

The Centre Region is in a building boom with more than $1 billion in new construction occurring in the last four years. This rate of development is likely to continue for the next several years but at some point it will slow. Fortunately, the CRCA has a fund balance that is sufficient to finance its operations when the level of construction slows.

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The purchase of a new software package that can be used by the participating municipalities that are interest may cost in excess of $150,000 per year.

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With the addition of the new staff the office space used by the CRCA is not adequate and several individual works stations will be shifted to parts of the office suite previously used for storage. During 2019 the Ad Hoc Facilities Committee will be looking into options for addressing this problem.

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Many of the senior staff members are approaching retirement and filling those positions with individuals with similar certifications, job knowledge, and familiarity with the Centre Region will be a challenge.

TRANSFERS 

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An internal transfer of $9,450 is allocated to the COG Building Capital Fund. Because the Agency receives no municipal funding and occupies approximately 38% of the COG Building and common space, the Finance Committee recommended that the Agency pay a proportionate share of the building’s capital costs. New Construction and Existing Structures fire inspections are divided among all the commercial fire inspectors to keep inspectors current with systems and installations in the field to increase consistency and improve customer service. New Construction reimburses Existing Structures $176,210, the equivalent of 1.1 of the 2 full time commercial fire inspectors and 50% of the Sr. Fire & Rental Housing Inspector's time. $134,700 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.

2019 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 – 2018 Steven Lyncha, Chair Cathy Dauler, Vice Chair Dan Trevino Sara Carlson Randy Brachbill Mark Stevenson Nigel Wilson

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

2019 Summary Budget – Code Administration Existing Structures

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)* Permit Program Technician Staff Assistant Commercial Fire Inspector Senior Fire Inspector Housing Inspector

1 position 1 position 1 position 3 positions 1 position 4 positions

* 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, 75

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 19,972 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.

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

2019 Summary Budget – Code Administration Existing Structures



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; hands-on 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 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 2019. 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 2019.



2018 Rental Housing Fee Schedule

REVENUE 

Revenue from Rental Housing permits to total $815,760 during 2019, an increase of $42,360 from the 2018 estimated receipts amount of $773,400. This increase is primarily due to the construction of the new student apartment units.



Revenue from Fire Safety Permits is expected to total $195,200 in 2019, an increase of $4,800 from the 2018 estimated receipts amount of $190,400.

2019 Summary Budget – Code Administration Existing Structures

House, Duplex, or Apartment

$37*

Rooming Unit

$32

Fraternity Unit

$332 - $432

* Several municipalities apply a supplemental payment to this base rate as a reimbursement for the costs incurred for zoning, health, and ordinance enforcement.

EXPENDITURES 

BUDGET HIGHLIGHTS The estimated 2019 beginning year fund balance for the Existing Structures Program is $302,333.

No revenues are projected for the Sewage Management program because the responsibility of this program has been transferred to the New Construction Program.

Non-personnel operations expenses during 2019 will be about the same as the 2018 budgeted amount.

PERSONNEL CHANGES 

There are no personnel changes proposed for 2019.

TRANSFERS 

An internal transfer of $4,050 is allocated to the COG Building Capital Fund. Because the Agency receives no municipal funding and occupies approximately 38% 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.



$54,600 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.

2019 Summary Budget – Code Administration Existing Structures

COG CODE ADMINISTRATION CAPITAL MISSION

PROGRAM BACKGROUND

The mission of the Centre Region Code Administration Capital 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.

In 2012, the Code Capital 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).

POLICY OVERSIGHT The Code Administration Capital 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 – 2018 Steven Lyncha, Chair Cathy Dauler, Vice Chair Dan Trevino Sara Carlson Randy Brachbill Mark Stevenson Nigel Wilson

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

2019 Summary Budget – Code Administration Capital

BUDGET The purpose of the CRCA Capital 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 2019 Code Capital Fund proposes a combined transfer from the New Construction and Existing Structures Program of $189,300. In accordance with the CIP, capital funds are proposed to be used as follows:

Computers & Equipment The projected cost of Computers & Equipment is $26,300. There are ten IPad Pros and related components proposed for the inspection staff ($13,000); 3 new computers and components proposed for two new inspectors and one program technician. It is also proposed to replace 3 computers, 2 IPads, 3 tablets and a networked printer. Improvements of Building & Facilities $75,000 has been budgeted to install a window wall for the front office to increase energy conservation, purchase office furniture for the new office and inspection staff and complete outstanding work items in the Planning Agency to an office for the electrical inspectors. Vehicles For 2019 an expenditure of $98,590 is proposed for the purchase of four new vehicles for inspection staff. Two Ford Escapes are proposed for the new inspection staff. One Ford Escape will replace an existing Ford Escape and a Ford Focus will replace a Ford Escape. 2018 Committed Ending Year Fund Balance The anticipated 2019 ending fund balance ($107,400) 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.

2019 Summary Budget â&#x20AC;&#x201C; Code Administration Capital

COG SCHLOW CENTRE REGION LIBRARY MISSION “The Centre of Reading and Learning.” 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 its population. Library boards that are established under the Library Code can have no more than nine members, and terms are limited to two successive three-year terms, plus the completion of an unexpired term of a previous Board Member.

2019 Summary Budget – Library Operating

Schlow Centre Region Library Board of Trustees – 2018 Maureen Welesko, President Ron Filippelli, Vice President David Thiel, Treasurer Virginia Squier, Secretary Marilyn Byers Ralph Licastro Casey McClain Lewis Steinberg Linda Trevino

College Township State College Borough Harris Township Halfmoon Township Harris Township State College Borough Patton Township Ferguson Township Patton 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 81

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.



Access to materials in all Centre County public libraries

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Remote returns throughout the service area, and delivery to Foxdale Village, The Village at PSU, Park Forest, Mt. Nittany and Delta Middle Schools

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Books by mail for the homebound

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Reference USA business research database

STAFF SUPPORT Schlow Library currently has 46 staff members: 18 full-time, 16 part-time, and 12 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 80 regularly scheduled volunteers who are contributing the equivalent of 4 fulltime employees. COLLECTION HIGHLIGHTS

SERVICES 

WiFi, public computers, and printing for adults and children

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

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Summer reading and author programs for all ages

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Award-winning children’s story times and programs

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

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Over 132,000 books and 16,000 eBooks

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Audio books on CD and 3,000 eAudiobooks

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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 eMagazines

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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

Kanopy: online streaming movies

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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

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

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

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Interlibrary loans for items not in Schlow Library’s collections

2019 Summary Budget – Library Operating

PROGRAM BACKGROUND Legislative Mandates: 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. 82

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 

The estimated January 1, 2019 fund balance is $147,156 compared to the 2018 budgeted fund balance of $143,335.



Municipal contributions are proposed to increase from $1,479,045 (2018) to $1,538,207 (2019), a 4% change ($59,162).



Total operating revenue is increasing 2.6% with a projected beginning fund balance of $147,156.



State and district aid will be the same in 2019. 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.



The Federation of Centre County Libraries disburses state and county funds to Schlow Library and the Centre County Library and Historical Museum based on a formula. County funding for 2019 will not be confirmed until December 2018.



No significant variation is expected in other revenues.



Donations to the Library are expected to reach $288,000 based on past receipts.

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, 2017 to June 30, 2018. The formula was modified by the General Forum during its February 27, 2017 meeting to base municipal contributions on a three year average of municipal shares.

2019 Summary Budget – Library Operating

EXPENDITURES Total expenditures are expected to increase 3.0%, $69,474. 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 2019, 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 COG’s compensation plan. In addition, it is proposed: 

The part-time IT Systems Administrator be changed to fulltime status in mid-year.



Upgrade the full-time Cataloging Technician to full-time Cataloging Librarian requiring a Master’s Degree.



Upgrade two Library Assistants to Library Technicians.

Materials: The Library will spend more than 10% ($212,695) of its 2019 Budget on books, media, and processing materials. 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 13 years old as of October 2018. The building is very heavily used by the public. Over 350,000 people are expected to visit the Library during 2018.

2019 Summary Budget – Library Operating

COG SCHLOW LIBRARY CAPITAL FUND

MISSION 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. 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.

2019 Summary Budget – Library Capital

PROGRAM BACKGROUND 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. Schlow Centre Region Library Board of Trustees – 2018 Maureen Welesko, President Ron Filippelli, Vice President David Thiel, Treasurer Virginia Squier, Secretary Marilyn Byers Ralph Licastro Casey McClain Lewis Steinberg Linda Trevino

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

BUDGET



Lighting replacement and painting: $157,000 for energyefficient lights and interior painting will be coordinated with other renovations.

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Remote pickup lockers: $10,000 matching money for a grant for remote book pick-up locations.



Contingency: $40,000 – Unanticipated emergencies.

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 that municipal contributions to the fund be resumed, as those contributions had been halted 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 2019 beginning year fund balance is projected to be $534,549. For the upcoming new-year, combined municipal contributions are proposed to total $80,000, unchanged from 2018. 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 2019 but are subject to change based on completion of 2018 scheduled projects and responses to recommendations of the 2018 facility study. 

Digital branch full upgrade: $120,000 – Security, bug fixes and performance improvements.



Public computing software replacement: $15,000 – Necessary for continued vendor support and security.



Public furniture: $30,000 – Replacement of broken or damaged items

2019 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. POLICY OVERSIGHT 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. Centre Regional Planning Commission â&#x20AC;&#x201C; 2018 Ray Forziat, Chair Jon Eich, Vice Chair Bill Stuedler Andrew Meehan Roy Hammerstedt Jeremie Thompson Neil Sullivan

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

2019 Summary Budget â&#x20AC;&#x201C; Planning Agency

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 A total of 7.0 full-time equivalent staff positions support the mission of the CRPA. Most staff split time between the Regional and Local Programs, and some have time in the CCMPO. Planning Director 85% (42.5% Regional, 42.5% Local) Office Manager 50% (25% Regional, 25% Local) GIS Planner 65% (32.5% Regional, 32.5% Local) Principal Planner (60% Regional, 40% Local) Senior Planner (67% Regional, 33% Halfmoon) Senior Planner (50% Regional, 50% Patton) Senior Planner (100% College) Sustainability Planner (100% Regional) PROGRAM BACKGROUND The CRPA offers comprehensive planning services in functional areas such as land use, environmental protection, transportation, land development review, and ordinance preparation. These 87

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. 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. 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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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 updated in 2018.



The CRPA prepared a draft Task Activity Report (TAR) with the UAJA and DEP to update the Act 537 Plan in 2018. The Agency has also been asked to work on a potential integrated water resources management plan in 2018.

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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.

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Hired a full-time Sustainability Planner to help develop and potential implement region-wide sustainability initiatives and programs. The Sustainability Planner position was reclassified to a Senior Planner position in 2019 due to the complexity of the work and direct working relationship forged with elected officials as part of the position.

REGIONAL PLANNING

LOCAL PLANNING

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

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:



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.

2019 Summary Budget – Planning Agency

Local Planning Services (% of FTE) Municipality

2018

2019

College Township Halfmoon Township Harris Township Patton Township

100% 40% 40% 50%

100% 33% 40% 50% 88

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.



Budgeted municipal contributions increased from $571,054 in 2018 to $611,614 in 2019.



The 2019 budget proposes to increase the Centre County contribution from $129,000 (2018) to $131,500 (2019).



Halfmoon Township has requested the percentage of the Local Planner’s time be reduced from 40% to 30% beginning January 1, 2019. Consequently, the reimbursement the Township provides to the CRPA for local planning services will decline from 2018 to 2019.

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.



Reviewing and analyzing rezoning requests within the member municipalities.

 



EXPENDITURES 

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

The 2019 CRPA budgeted expenditures are $789,487, which is an increase of $2,076 from the 2018 Budget.



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

Capital improvements being proposed for 2019 include $8,030 for the CRPA share of the vehicle and planning’s share of the replacement of a shared computer.



Operating expenses in 2019 are anticipated to be $110,068, an increase of $961.No new employment positions are proposed for 2019. The position of Sustainability Planner is proposed to be reclassified to a higher pay grade of Senior Sustainability Planner to more accurately reflect the position’s automany, scope of responsibilities and level of interaction with municipal officials and the public.

Providing staff support to municipal planning commissions.

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 REVENUE 

The January 1, 2019 fund balance is $45,950 compared to the 2018 budgeted amount of $80,014, a decline of $34,064.

2019 Summary Budget – Planning Agency

2019 Summary Budget â&#x20AC;&#x201C; Planning Agency

COG CENTRE COUNTY METROPOLITAN PLANNING ORGANIZATION

MISSION

CCMPO Coordinating Committee – 2018 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, through a “metropolitan planning organization (MPO)”. 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.

Eric Bernier, Chair Michael Pipe, Vice Chair Mark Higgins Betsy Whitman Tony Ricciardi Barbara Spencer Frank Harden Theresa Lafer David Wise Richard Watters Sam Estright 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

2019 Summary Budget – Centre County MPO

College Township Centre County Centre County Patton 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 91

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) Sustainability 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).

2019 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 92

planning regulations. In early 2018, the CCMPO adopted the fiscal year 2018-2020 UPWP. The UPWP lists the transportation planning activities to be completed by the CCMPO between July 1, 2018 and June 30, 2020.

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No supplemental planning funds from PennDOT are currently allocated in 2018, and no supplemental funding is budgeted in 2019. However, supplemental funding may be requested and allocated at a later date.

BUDGET



CATA’s funding share will increase by 3.0% in 2019.

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 estimated January 1, 2019 fund balance is $57,762 compared to the 2018 budgeted amount of $72,230. The decline is due to a purchase of a replacement vehicle.

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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. In 2019, the amount contributed by the six Centre Region municipalities will increase by 3.2%, and the amount allocated to Centre County will increase by 2.5%.

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The amount of base federal and state planning funds provided by PennDOT will increase by 3% in 2019.

2019 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

2019 Summary Budget – Fire Operating

direction of the Fire Director, for the safe and effective operation of the Company during emergency and non-emergency incidents. 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. These donations go directly to the Alpha Fire Company and not managed in anyway by the COG. 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 (a new position beginning in 2018) 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

2019 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 2017 the Company responded to 1,359 incidents (a new record). 95

FIRE MARSHAL The Regional Fire Protection Program also includes six volunteer Fire Marshals who are appointed for two year terms by the General Forum. 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.

contingency funds ($40,000) and the timing of items purchased in 2018 but actually paid for in 2019. 

Municipal contributions are proposed to increase from $1,023,253 (2018) to $1,094,246 (2019), a change of $70,993, 6.9%. This increase is due to an increase in the expense reimbursement stipend awarded to the volunteers and allocated expenses such as insurance. Absent the stipend increase, the budget was held to a 3.8% increase.

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The Fire Program request for recruitment funds is slightly decreased for 2019. The award of a federal SAFER grant will be providing funding for new initiatives in recruitment.

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Personnel costs decreased by 0.7% for 2019 due to two employees electing to waive medical insurance.

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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 $89,600 (2018) to $159,600 (2019). This increase continues the process to improve recruitment and retention of volunteers. The stipend amount, and the conditions by which the reimbursement is offered has been reviewed by the Municipal Managers and a Labor Attorney.

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. As has been discussed with the Public Safety Committee the current model for responding to hazmat calls occurring in the Centre Region is being evaluated and a new structure may be proposed for discussion during 2019.

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, 2019 fund balance is forecast to be $91,241. The fund balance is comprised of unspent

2019 Summary Budget – Fire Operating

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With the exception of costs related to insurance, changes in operating expenses fall within the rate of inflation or less.

LOOKING AHEAD Looking ahead to 2020 and beyond the three major challenges confronting the Regional Fire Protection Programs are: 

The recruitment and retainment of volunteer fire fighters.

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Implementing a new model for responding to hazmat calls occurring in the Centre Region as may be approved by the General Forum, The Pennsylvania State University and Commonwealth of Pennsylvania.

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The possible opening of a fourth fire station in western Ferguson Township. This concept has been discussed by the Board of Supervisors on several occasions.

2019 Summary Budget – Fire Operating

COG REGIONAL FIRE PROTECTION CAPITAL

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

2019 Summary Budget – Fire Capital

and refurbishments; and fire station repairs and improvements. The CIP projects both replacement costs and revenues for the 25year 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.

These units are also used by Fire Police to block intersections or restrict traffic.

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. 2019 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 99

exposed to chemicals, radioactive materials, or biological materials. This trailer was federally funded through the regionâ&#x20AC;&#x2122;s terrorism task force and no funds are being accrued for the replacement of this unit. Replacement is expected to be handled through the South Central Mountain 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.

2019 Summary Budget â&#x20AC;&#x201C; Fire Capital

APPARATUS REPLACEMENT COST 4 Engines @ $650,000

$2,600,000

2 Aerials @ $1,200,000

2,400,000

1 Quint @ $1,000,000

1,000,000

2 Tankers @ $495,000

990,000

1 Rescue Unit

650,000

1 Command Vehicle

75,000

2 Utility Pick-up Trucks

90,000

2 Fire Police Vehicles

250,000

1 Special Unit/Brush Vehicle

85,000

1 ATV with Trailer

65,000

2 Chief Vehicles

68,000

TOTAL

$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 2018 is estimated to be $1,058,891.

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BUDGET HIGHLIGHTS 

Municipal contributions ($270,632) and Penn State University contributions ($89,730) are proposed for 2018 for vehicle replacements, an increase of 2.6% from prior years.

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A number of small vehicles are slated for replacement in 2019. The Command Unit, a 2013 Tahoe used by the Duty Officer which was slated for replacement in 2018 will be replaced in 2019. The two 2013 Ford Interceptors will also be replaced in 2019 as planned within the COG CIP. One is used by the Fire Director and the other by the Volunteer Chief.

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Building capital projects slated for 2019 include the replacement of rooftop HVAC units at the Patton Station which were slated for replacement in 2018 but will be delayed; and a partial roof replacement at the Borough Station.

LOOKING AHEAD The next major apparatus replacement will be the 2001 Rescue Truck. It is scheduled to occur in 2021 with a projected cost of approximately $782,800.

2019 Summary Budget – Fire Capital

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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 and 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 – 2018 Kathy Matason, Chair Shannon Messick, Vice-Chair Diane Ishler, Treasurer Denise Meyer, Secretary James Dunn Cindy Solic

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

2019 Summary Budget – Parks and Recreation Operating

Li’l Striders continues to be a very popular learn-to-balance class for our preschoolers. These bikes were funded through a Strider Bike grant in 2017. An additional grant was received in 2018 to purchase larger bikes. 102

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 Ctr. 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 Caretaker III (Mechanic) position, and that position was filled in late 2017. 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 Centred Basketball “Start Smart” Introductory Sport Programs Youth Creative Art Programs Youth Cross Country and Track Events Summer Day Camps

2019 Summary Budget – Parks and Recreation Operating

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Biking Programs with Centre Region Planning Agency 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 Disc Golf and Pickleball Learn-To-Play Clinics and opportunities to play in tournaments

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

Annual Halloween Costume Parade Easter Egg Hunts (2) Kids-on-Wheels Parade Camp Carnival Touch-a-Truck Expo Municipal Band Concerts Cardboard Regatta Movie In The Parks Winter Carnival Friday Night Slides Earth Day Birthday Paws-A-Pool-Ooza “Splash, Pedal & Dash” Youth Triathlon Ferguson Township’s “Grappler” at the 2018 So Long MLB Pitch, Hit & Run Summer Shindig at Tudek Park! Competition NFL Punt, Pass and Kick Competition “So Long Summer Shindig” Celebration 103

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Annual Active Adult Center “Carn-Evil”

SPECIAL INITIATIVES IN 2018                   

Agency website redesign: http://www.crpr.org Active.Net customer portal improvements Branding and Marketing Plan CRPR Gifts-for-Parks Program CRPR Remembrance Tree and Bench Programs CRPR My Veteran/My Hero Tree Program Centre Region “Park Partners” & Park Partner Workdays Picnic pavilion and sports field 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 Month,” an NRPA national initiative Promote local parks through the 2nd Park Picture Pursuit online social media competition Promote community partnership and fundraising opportunities for programs, events, and facilities Grant-writing opportunities for several programs and capital projects Director’s participation in Leadership Centre County for 2018-2019 Expanded training for supervisory staff to include a Staff Retreat Continue the CRPR Child Safety Policy

2019 Summary Budget – Parks and Recreation Operating

CRPR participated in Kid’s Day during the Central PA’s Festival of the Arts!

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. Continuing into the 2019 Budget are the cost centers that show a direct revenue/expense relationship for the Parks Maintenance Division as well as several other areas. During the 2019 budget process, staff are adjusting invoicing and billing to ensure that they are going to the correct cost center. 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 Hess Softball 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.

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AGENCY REVENUE POLICY The 2019 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 allowed some CRPR programs to occur when the Active Adult Center programming is not in session; the Agency sees this trend continuing. Park maintenance continues to be offset by both sport fields 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 The funding formula for the Parks and Recreation Budget is based on the “Modified COG Formula” (not including Halfmoon Township).

2019 Summary Budget – Parks and Recreation Operating

105

BUDGET HIGHLIGHTS 

The starting 2019 fund balance is expected to be $261,851 and the ending year fund balance is expected to be $19,264. Some funds from the fund balance are being used to off-set 2019 personnel requests.

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2019 municipal contributions of $1,462,862 are proposed for the Parks and Recreation Operating Budget. This is a $92,020 (6.7%) increase over the $1,370,882 budgeted amount. The increase is due to several factors: o Reduced revenue due to enrollment caps which were the direct result of staffing limitations. o Increased hourly rates for seasonal employees with the intent to increase staff retention rates as well as attract new employees across several cost centers. o Increased costs for advertising to compensate for lower enrollment in some programming and for rental space for indoor programming that cannot be accommodated by the school district. o Expenses will occur for the Parks, Recreation, and Open Space Regional Comprehensive Plan, the majority of which will occur in 2019.

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Within the cost centers for Concessions and Summer Camps, the positive variance generated from those areas are used to off-set municipal contributions. For 2019, the Agency is predicting a positive variance of $6,771 for Concessions and $31,646 for Summer Camps, for a total of $38,417 which will off-set municipal contributions.

2019 Summary Budget – Parks and Recreation Operating

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In 2017, a Strategic Plan/Comprehensive Plan account was added to provide a 50% funding match for a 2017 Department of Conservation and Natural Resources Grant for $75,000; the $37,500 required match was split over two budget years, 2017 and 2018. These funds are being carried forward since the majority of expenses will occur in 2019. The Steering Committee for the Parks and Recreation Regional Comprehensive Plan is strongly interested in conducting a randomized, statistically-valid, mailed survey of Centre Region residents to ask them their opinions about parks and recreation in the Centre Region. The cost of the survey is estimated to be $10,000 to $15,000. It would be conducted by Penn State University. The questionnaire has not been developed yet. This proposed $15,000 expense was presented to the Finance Committee during its budget review session and they endorsed it because conducting a survey was something that the Steering Committee felt was important in order to obtain the opinions of all Centre Region residents not just those who happen to show-up at a meeting. The Finance Committee asked that this expense be shared among all municipalities, including Halfmoon Township, with the cost shared by the COG funding formula. If this were to occur, Halfmoon Township’s share would be $648. In addition to paying the University’s expenses, this money would be used to print the surveys, mail the surveys, and then send out a reminder to households to send in their surveys if they haven’t already done so.

106

PERSONNEL CHANGES 

Seasonal part-time salaries were increased in 2019 after the agency completed an informal salary survey. It is hoped that this increase will improve seasonal employee retention rates as well as attract new employees. Seasonal part-time employees work in Sports, Summer Camps, Concessions, Parks Maintenance, and other summer programming.

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The agency requested two full-time Parks Caretakers I for the Parks Maintenance department as needs remain unfulfilled while requests and acreage continue to increase. Unused seasonal funding that was held in the Fund Balance was used to off-set some of these additional expenses. The agency’s intent in 2019 is to hire approximately the same number of seasonal maintenance staff as in 2018, with a hourly rate increase to retain current staff and attract new staff. The agency continues to operate each season with unfilled positions; therefore, adding two full-time maintenance staff will allow for the agency to improve its maintenance program.

2019 Summary Budget – Parks and Recreation Operating

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COG PARKS CAPITAL EQUIPMENT BUDGET

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).

The resources (labor and equipment) required to properly maintain the Agency’s facilities are dependent upon: 

The acreage; the system currently includes 56 sites with 929 acres, of which 823.4 acres are currently maintained with the Whitehall Road Regional Park acreage (100 acres) coming online in 2019-2020 as well as four acres of the Grays Woods Park (Patton Township). In approximately two to three years, the nine-acre Tussey Pond Park (Harris Township) will be coming online.



The appropriate level of care necessary for each of the various facility types.



The age of the specific features and facilities in each park.

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The effort required with new park improvements funded by each municipality.

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The level of use of those facilities by the public (including by CRPR programs).

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The types of park uses and areas to be maintained; for example, sports fields maintenance requires more mowing than an open play area or wooded area.

EQUIPMENT INVENTORY The Parks Maintenance division oversees 56 park sites with 929 acres, including many municipal parks such as Circleville Park, Tom Tudek Memorial Park, Holmes Foster Park, as well as the Millbrook Marsh Nature Center and both community pools (see table below).

*Former municipal authority land preserved for watershed protection; not considered parkland. **Patton Woods Natural Recreation Area is considered passive parkland (62.7 acres). ***Whitehall Road Regional Park will not come online until 2020-2021; construction should begin in 2019 (on approximately 42 acres of the 100 acre parcel).

2019 Summary Budget – Parks Capital Equipment

Including the scheduled replacements and additions in 2019, the CRPR equipment inventory will consist of the following equipment used by 11 full-time staff and up to 22 seasonal staff: 

21 mowing tractors (6’ to 10.5’ cutting width) 108

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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, fertilizer spreader, dethatcher, 15’ pullbehind mower) Two tow-behind sprayers



One passenger van used for programs, camps, and staff

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Equipment trailers to haul tractors and equipment

All equipment with a purchase price in excess of $10,000 is annually depreciated through the COG’s Capital Improvement Plan. All vehicles and equipment are owned by the COG.

BUDGET Municipal contributions totaling $162,900 are being requested in the 2019 budget to purchase new equipment or replace equipment that is needed to maintain an increasing number of facilities. This request is approximately 5.8% higher than the 2018 budget and stems from the deferred purchases of equipment specifically for the Whitehall Road Regional Park. Multi-year projections are used to anticipate and prepare for future equipment purchases. The 2019 Parks Equipment Capital Budget is proposed as follows:

2019 Summary Budget – Parks Capital Equipment

Vehicles and Turf Equipment The total amount that has been budgeted for vehicles and turf equipment in 2019 is $234,450 and includes: 

Replace Toro 4500-D Mower #177 at a cost of $61,800.

109

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Replace John Deere 5200 Tractor #175 at a cost of $39,000.

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Purchase new Intelligent One Paint Applicator Robot at a cost of $40,000. Purchase through a cooperative bidding contract, two new pickup trucks at a cost of $63,650.

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Purchase a gently-used box truck and vehicle wrap for the new Rec-On-The-Go program at a cost of $25,000.

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Transfer the Planning Agency Escape for use by CRPR to reduce mileage and use of personal vehicles at a cost of $5,000.

Computer Hardware and Software An Agency printer and a general-use Agency laptop are scheduled for replacement in 2019 in the amount of $3,000. Buildings

This is Slab Cabin Park, one of the many municipal parks that CRPR maintains through our cooperative agreement with the municipalities. Slab Cabin Park is a popular starting location for hikers and cyclists and is home to the most popular sledding hill in the Centre Region!

Capital Building expenses are proposed at $2,500 for 2019, no change from the 2018 budgeted amount, for continued small upgrades to locks, building repairs, and repairs due to vandalism. 2019 Year-End Fund Balance The estimated 2019 year-end fund balance is $251,183, which will be used to fund scheduled replacements and additions per the 2019-2023 Capital Improvement Plan.

Oak Hall Regional Park during a softball tournament.

2019 Summary Budget – Parks Capital Equipment

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COG AQUATICS PROGRAM

MISSION

SERVICES PROVIDED

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 the Saturday of Memorial Day Weekend through Labor Day. 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 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 and 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

2019 Summary Budget – Aquatics Operating

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Youth Programs: swimming and diving lessons (group and individual lessons)

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Adult Programs: fitness/lap swimming, fitness classes on pool grounds and in-water, SCUBA instruction

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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.

Team Members

2016

2017

2018

Welch Pool

182

210

197

Park Forest

196

207

175

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Special Events: Pool Pass Photo Day; Dollar Days; Family Fun Nights; Splash, Pedal & Dash Youth Triathlon; Cardboard Regatta; 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, and staffing limitations. During the summer of 2018, the pools hosted 112,565 visits, up from the 2017 total of 108,588. In 2008, before renovations, total visits were 48,122. The pool schedules spanned approximately 95 days in 2018 (May 26 September 3, including school-day operations). 2018 Pool Visits

Recreation Visits Instruction & Swim Team Visits 2018 Total Visits by Site 2018 Average Visits Per Day



Welch 65,742

Park Forest 32,426

Total 98,168

7,693

6,704

14,397

73,435 773

39,130 412

112,565 1,185



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 renovation work, and the new facilities opened on May 28, 2011. 2018 was the eighth summer in the new facility.

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. POOL FEES The 2018 pool fees are listed in the table below; fees for the 2019 season will be established by the Authority during its October 2018 meeting. Because the pool fees remain affordable and competitive with other recreational activities in the Centre Region, the CRPRA Aquatic Programs are accessible to most Centre Region residents. In addition, the majority of Youth Scholarship Program requests are for the aquatics programs or season passes; in 2018, 42 scholarships totaling $1,634 were awarded for pool passes and programs.

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. 2018 was the tenth summer for the new facility.

2019 Summary Budget – Aquatics Operating

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Daily Admission 2018 Ages 2 & under Ages 3-10 & 65+ Ages 11-64 After 5 PM (Ages 3+) Scheduled Group Admission

Resident/Nonresident* Free $6/$8 $8/$10 $5/$7 $5/$7

Season Passes 2018 Ages 2 & under Ages 3-10 & 65+ Ages 11-64 For 5th+ Family Member

Resident/Nonresident* Free $70/$105 $95/$143 $40/$60

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

BUDGET The Aquatics Operating Budget funds pool operations, programming, and day-to-day maintenance 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 2019. 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

2019 Summary Budget – Aquatics Operating

are proposed for 2019, which is the seventh year that contributions have not been needed. REVENUE 

The anticipated January 1, 2019 beginning fund balance is $147,644, an increase of $39,015 from the 2018 budgeted amount of $108,629. Much of this increase is due to lower compensation costs during 2018 because of difficulty recruiting and retaining staff and very rainy weather.



Revenue from the two regional pools is expected to total $541,525 during 2019, with an additional $20,500 from interest earnings and programs at the SCASD Natatorium, for a projected total of $562,025 in 2019 revenue.

EXPENDITURES The operating costs for the two regional pools are projected to be $429,433, a $49,177 increase from 2018. This increase is due mainly to increases in seasonal staff wages and anticipated purchases of recreational equipment and furniture. Wages must be competitive with other opportunities in the area in order to avoid the staffing limitations and pool closures that were encountered in 2018. As reported, the labor market in the Centre Region has been very tight and it has been a challenge to attract and retain staff because there are many other employment options available. $14,000 is proposed for replacement furniture (umbrellas, tables, and chairs) and for specialized equipment such as vacuums, diving board, and canopies for the slide entrances and climbing wall.

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PERSONNEL CHANGES No new positions are proposed for 2019. To address the difficulties in recruiting and retaining seasonal staff, wages are recommended to increase by $.25 an hour.

Cardboard Regatta was a HUGE hit in 2018!

One of the swimming heats during the Splash, Pedal & Dash Youth Triathlon, held in July! 2019 Summary Budget â&#x20AC;&#x201C; Aquatics Operating

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COG AQUATICS CAPITAL BUDGET

MISSION

PROGRAM BACKGROUND

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.

The CRPRA owns the Park Forest Community Swimming Pool property and it leases the land from the State College Area School District for the William L. Welch Community Swimming Pool. The Centre Region Parks and Recreation Agency (CRPR) operates both pools on behalf of the Authority.

POLICY OVERSIGHT Policy decisions relating to the regional Aquatics Capital Budget are guided by the Centre Region Parks and Recreation Authority (CRPRA) which 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, the COG Parks Capital Committee, and the COG Finance Committee provide oversight on capital projects.

2019 Summary Budget â&#x20AC;&#x201C; Aquatics Capital

Participants in the first-ever Cardboard Regatta at William L. Welch Community Pool.

The original Park Forest Community Swimming Pool was opened in 1970 and renovated in 1991. That pool was closed on August 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.

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POOLS LOAN FINANCING In 2008, the CRPRA established a line of credit that was guaranteed by the five participating municipalities for 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. 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 loan repayment obligation amount may be reduced each year due to transfers from the Aquatics Operations Budget. Per the loan agreement, the COG formula for the pools’ loan reset in 2018 from the 2008 funding levels. That reset brings the debt repayment to approximately $446,600 per year for the remaining 10 years of the loan. For 2019 however, pool operations does not intend to transfer any funding to this budget as a result of the record-breaking rain encountered in the 2018 swim season, affecting revenues and the end of year fund balance.

BUDGET The Aquatics Capital Budget was established to fund major capital improvements to the two pools that are operated by the Centre 2019 Summary Budget – Aquatics Capital

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 for the years 2018-2028 is based on the 2018 Modified COG Formula. 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.



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

Swimmers lining up to try out the Wibit, CRPR’s floating obstacle course! 116

and further reduced future repayments.



The proposed 2019 ending fund balance is $53,632.

BUDGET HIGHLIGHTS REVENUE 

2019 municipal contributions for debt repayment are proposed to total $446,623, which is the typical annual obligation for the debt. These contributions are allocated according to the 2018 Modified COG Formula.



Municipal contributions for capital improvements are proposed to total $42,500 and are allocated using the 2019 Modified COG Formula.



It was hoped that good weather and great attendance in 2018 would result in enough additional funding for the Authority to transfer funds, as in 2012-2014, 2016, and 2017, and reduce the scheduled debt service amounts paid by the municipalities. However, in 2018, the months of July and August were the rainiest on record and in order to prepare for the potential of another poor weather season in 2019, no funds will be transferred.

EXPENDITURES 

A total of $446,623 is proposed for debt service ($90,413 interest + $356,210 principal).



$50,000 is proposed for Park Forest Pool to replaster the pool and replace broken and discolored plexiglass on the staff offices.



$20,000 is proposed for Welch Pool to clean and stain the siding of the buildings and replace broken and discolored plexiglass.

2019 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 programmatic, policy, and 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:

Part-Time Staff Assistant 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 2019 Summary Budget – Active Adult Center

opportunities. Centre County government remains an important partner in the Center’s operations by providing programmatic and policy support as well as transportation services for individuals who are unable to secure private transportation, coordination of the meals contract, and providing funding assistance. During 2018, the County provided approximately 27% of the operating budget funds including $5,000 toward debt service incurred for renovating the One of two Tower Gardens provide fresh vegetables and herbs for the Active Adult Center’s kitchen and current center when healthy cooking series. it was relocated from 118

Frasier Plaza. The following services are provided at the Active Adult Center: 

Serving nutritious lunches five days per week, year-round



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, life-long learning, socialization, physical and mental fitness, emotional well-being, and opportunities for creative expression



Coordinating Centre County van transportation



Serving as a resource for the Aging Services Network



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



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 2019 Summary Budget – Active Adult Center

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 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, easily-accessible location. The

The Spring 2018 Supply Shower was a huge success! 119

Center’s vibrancy peaked in 2017, with attendance leveling off in 2018. The Center’s staff members continue to provide new and repeat programs in a much larger space; the overall success remains high and is easy to see with the residents and nonresidents from the Centre Region who attend on a regular basis.

BUDGET Proposed 2019 Revenue Sources 

43% from municipal contributions (includes contributions for debt service): $163,196



29% from the Centre County Office of Aging (includes contributions for debt service): $109,853



17.6% from the fund balance (unrestricted and Phase II improvements): $66,546



8.6% from the PA Office of Aging Grant Program for Phase II renovations): $32,500



1.7% from patron fees, donors, and rentals: $6,500 Active Adult Center Program Visit Shares

RESIDENCY State College Borough College Township Ferguson Township Harris Township Patton Township TOTAL

2019 FORMULA Based on 369 unique individual residents

2018 FORMULA Based on 384 unique individual residents

21.68%

24.22%

28.18% 26.02% 11.92% 12.20% 100%

30.21% 23.70% 10.67% 11.20% 100%

2019 Summary Budget – Active Adult Center

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 over. During mid-summer 2018, the County and COG started the process of updating the agreement, which the Centre Region Parks and Recreation Authority will now be subject to an Independent Contractor contract rather than an Articles of Agreement, which is the current document. This process is in the review stages concurrently to the budget process, and should be finalized by the end of 2018. 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, 2017 through June 30, 2018. 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.

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BUDGET HIGHLIGHTS

PERSONNEL CHANGES



The anticipated January 1, 2019 fund balance for the Active Adult Center is $66,546 compared to the January 1, 2018 budgeted fund balance of $49,611. The increase is attributable to the monies that are being carried forward from 2018 to 2019 to finance the Phase II improvements at the Center.



For 2019, municipal contributions for both operations and debt service are budgeted at $163,196, a 3.8% increase from 2018. The increase can be attributed to some service fees increasing such as telecommunications, photocopying, financial services, insurance, and some utilities. It is noted that this proposed budget will also require the use of $66,546 from the fund balance.

There are no new personnel changes proposed for the Active Adult Center in 2019. Due to the continued high-volume of participation and meals served at the Center since its relocation to the permanent space in the Nittany Mall, the addition of the parttime Staff Assistant in 2018 has greatly helped the Center with two-deep leadership as well as coverage for staff lunch breaks, meetings, and other needs.



For 2019, 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 2019 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 2019. In addition to assisting with the annual debt service ($5,000 per year), Centre County Office of Aging, through the new proposed Independent Contractor agreement, is planning to contribute $104,853 as its 2019 share for rent and operations, a 17% increase from their 2018 contribution. The County is currently considering these requests as part of their annual budget process, which is now underway.

2019 Summary Budget – Active Adult Center

While the Center served 369 unique individual residents from July 1, 2017 through June 30, 2018, the center is also serving a high number of meals throughout the year. Meals provided during that time period are as follows: 2016 Meals Served 2017 Meals Served 2018 Meals Served

4,643 4,950 4,683

PA OFFICE OF AGING GRANT In 2018-2019, the Center will be working with the PA Department of Aging, through its grant program, to finish the Phase II renovations at the Center. These items include closing the front of the center with glass doors, providing a drop-down dividing soft wall, flooring reconfigurations, door openers for both restroom doors, a fire door to divide the rear of the Center from patron use, permanent signage, and a ceiling/wall mounted projector and drop-down, motorized screen. The Center received a $65,000 grant and raised just over $35,000 in donations to cover the final renovations to the Center.

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LOOKING AHEAD The execution of the independent contractor agreement between the Authority and County that will happen later this year, will improve the long-term financial planning for the Center. The Agreement fixes the County’s contribution to the Center for the next three years and provides for an increase payment from the County for each year. Previously, contributions from the County were made in annual amounts so long-term revenue projections were not possible. As the Centre Region over 60 years population increases and additional use is made of the Center by current residents, there may be a need in the future to change the status of the part-time Staff Assistant position to full-time. This would help to ensure two-deep leadership when one of the other full-time staff are away. It would also assist with managing an increasing work load. The Center’s lease with the Nittany Mall runs through 2030 and continues to be very competitive compared to other rental options. As will malls across the United States, some larger anchor stores have closed. It is hoped that this trend will reverse and the Nittany Mall will remain an attractive place for retailers and other companies to do business. If for some reason the Center was required to relocate, then it is likely that the rent rate would be higher and there would be significant cost for renovating new space.

2019 Summary Budget – Active Adult Center

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COG MILLBROOK MARSH NATURE CENTER MISSION

POLICY OVERSIGHT

Nancy Tamminga Dr. Rob Brooks Mary Sorenson Steve Sywensky Mark Henry Doug Wentzel

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).

Jennifer Shuey Dr. Richard Marboe Jennifer Arndt Niki Tourscher

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.”

State College Area School District Penn State Riparia Centre County Historical Society Bald Eagle Archeological Society State College Bird Club Shaver’s Creek Environmental Center At-large Appointee At-large Appointee At-large Appointee At-large Appointee

In January 2001, 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 (State College Borough and College Township) and later the Stan Yoder Preserve (Harris Township). The following 15 volunteers are currently appointed to this advisory group by the CRPRA Board. Millbrook Marsh Nature Center Advisory Committee – 2018 Donnan Stoicovy Alan Sam Kathy Matason Steve Maruszewski Deborah Nardone

Chair/Clearwater Conservancy Vice-Chair/State College Borough CRPRA Board Penn State University Clearwater Conservancy

2019 Summary Budget – Millbrook Marsh Nature Center Operating

Milkweed growing in the marsh along the boardwalk. 123

STAFF SUPPORT Full-time, Year-round:

Nature Center Supervisor, Program Coordinator, Part-Time Staff Assistant, CRPR Staff Assistant (50% share, parttime)

Part-time, Seasonal:

Program Leaders, Camp Leaders, Interns

classroom space allowed the expansion of rental options, daily offerings, and event size. It also allows multiple programs and camps to be held simultaneously.

SERVICES PROVIDED 

A natural park setting to host unstructured recreational visits



Programs and Special Events for the public



Educational programs for school and community groups



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



Birthday party packages for children



Boy Scout and Girl Scout Programs



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



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



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

Herbal Tinctures public program in the Spring Creek Education Building.

Since the Center was established, the key to increased public attendance is maintaining a high-quality facility and offering a wide variety of exceptional programs. With the addition of the Spring Creek Education Building in 2011, new rental and 2019 Summary Budget – Millbrook Marsh Nature Center Operating

2018 Kayak Camp.

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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 wetlands also host 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 could only be used in warmer seasons, approximately six to eight months per year. Sun shelters and a picnic pavilion help accommodate the many groups visiting the Center each year.

MMNC Program Revenue 2018*

$76,427

2017

$78,947

2016

$81,953

2015

$79,488

2014

$61,958

2013

$62,745

2012

$45,465

2011

$47,050

2010

$43,567

2009

$30,798

As the publicâ&#x20AC;&#x2122;s use of the Nature Center has grown, there have been corresponding increases in its budget. The municipalities and the community have been generous in their financial support of the Center by providing funding for the day-to-day operations, capital improvements, construction of the Education Building and the new parking lot, with additional operational support through small grants and donations.

2008

$30,664

Looking ahead to 2019, the 2018 fundraising plan will continue in order to generate additional community contributions for both operating and capital expenses including the Phase II expansion of the Spring Creek Education Building.

2002

2007

$27,646

2006

$20,124

2005

$23,238

2004

$17,644

2003

$12,885 $11,339

2001

$5,273

2000

$1,326 $0

$10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000

*2018 is estimated revenues.

2019 Summary Budget â&#x20AC;&#x201C; Millbrook Marsh Nature Center Operating

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BUDGET This budget funds the day-to-day operations of the Millbrook Marsh Nature Center. The objectives of the Millbrook Marsh Nature Center are: 

Protect the unique wetland



Provide a quality setting for education, exercise, and recreation



Provide a convenient site for regional environmental programs

The Operating Budget consists of funds for small maintenance projects to include preventative maintenance as well as small repairs. It contains the funds for full- and part-time staffing and seasonal instructors, as well as day-to-day operational expenses. REVENUE 

The estimated January 1, 2019 fund balance is $67,379.



Municipal shares for 2019 are proposed to total $89,881, an increase of 13.8% from the 2018 budgeted amount of $78,989. A combination of factors contribute to this increase:  Transitioning the part-time Staff Assistant to full-time.  Increases in operating expenses, such as financial services, internet, phone, and IT services.



Community donations are estimated to total $43,000 in 2019 to off-set operating expenses.



Program fees are estimated to total $78,800. For 2019, 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

2019 Summary Budget – Millbrook Marsh Nature Center Operating

126

with the State College Area School District and seeking additional contracted program opportunities. ď&#x201A;ˇ

In 2017, the Center developed a robust rental program which increased in 2018 and is expected to remain at $20,000 in 2019. Though there is opportunity to expand weekday rentals, weekend availability is limited due to Center programs, events, and summer camps. Another limiting factor is that the Spring Creek Education Building is the only all-weather/all-season indoor space and it can only be rented to one small group at a time. Though rental fees and program pricing is evaluated each year, there is consensus among the Advisory Committee that pricing must remain accessible.

FUNDING FORMULA The funding formula for the Nature Center Budget is based on the Modified COG Formula (not including Halfmoon Township). EXPENDITURES The proposed change of the Staff Assistant position from parttime to full-time results in a $40,000 increase in compensation and benefit costs for 2019. This change is recommended because of the increase in program visits; 14,000 (2016) to 16,000 (2017) and increase facility rentals; 37 (2016) to 81 (2017). It also helps to assure leadership is present when one of the staff members are away. Remaining expenditures other than those noted above remain relatively steady.

The Spring Creek Education Building and Barn. 2019 Summary Budget â&#x20AC;&#x201C; 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 Authorityâ&#x20AC;&#x2122;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 as a COG Budget in 2006. Its purpose was to track funds for the capital 2019 Summary Budget â&#x20AC;&#x201C; Millbrook Marsh Nature Center Capital

The Millbrook Marsh Nature Center boardwalk.

improvements for the Millbrook Marsh Nature Center. For the next ten years this budget was exclusively funded by donations from the community and the municipalities (for a single specific project). Initially these donations were made to fund the Phase I construction of the Spring Creek Education Building. More recently, community donations have been made to this budget to fund the Phase II expansion construction of the Education Building. In 2007, the General Forum approved the Phase I Capital Fund Raising Campaign for the Nature Center. This effort resulted in $1,087,830 in pledges and donations, including contributions (not part of the regular COG budget process) from each of the five participating municipalities. Several grants were also obtained. 128

These contributions and grants were used to build the Phase I of the LEED Silver Certified Education Building (which was opened and dedicated in April 2011) and the Visitor Parking Area project completed in 2016. More recently, community donations have been sought for the Phase II expansion of the Education Building that includes two classrooms, a large meeting room and event space, two additional restrooms, and sustainable features such as solar panels. Preliminary architectural drawings for this addition have been prepared. The current building is the only temperature controlled space at Nature Center and is limited to 50 people per floor. In addition, funds are being solicited for a Welcome Pavilion near the parking lot which will include four family restroom rooms, water fountains, and water bottle filling station. Grant applications have been submitted to assist with fund funding these improvements but at the time of budget preparation the status of these applications is unknown. Over the last several years, it is become apparent to the staff and municipal officials that the capital funding needed to maintain and repair the facilities at the Nature Center was inadequate. Community donations were designed for new improvements but not for the maintenance of existing facilities. Prior to 2018, no municipal funds were allocated to this budget. Beginning with the 2018 budget, $25,000 was requested for the Capital Budget. This appropriation was used to repair and replace the “dry” sprinkler system in the barn. For 2019 it is proposed that municipal contributions to the Capital Budget be increased to $50,000.

2019 Summary Budget – Millbrook Marsh Nature Center Capital

Barn Roof As reported at the September 13, 2018 Finance Committee meeting the condition of the metal roof at the barn is in worse condition than initially believed when the 2019 Program Plan was prepared. It is leaking water in widely dispersed multiple locations. The roof may need to be replaced. One contractor’s estimate to replace the roof is $140,000. However, this contractor’s estimate does not include the cost of preparing the bidding specification or completing the project under prevailing wage regulations. As an alternative it may be possible to seal the roof at an estimated cost of $60,000. The condition of the roof and the options for repairing or replacing it need to be examined in more depth. Should the roof need to be replaced then a financial plan must be developed. The staff recommendation is that the General Forum endorse the proposed increase in municipal contributions to the Nature Center’s Capital Budget from $25,000 (2018) to $50,000 (2019). Looking ahead the possible scenarios are: 1. The roof can be repaired within the funds appropriated in the Capital Budget. 2. The roof can be repaired but the cost will exceed the funds available in the Capital Budget. The project cost could be financed by a loan from the Centre Region Code Administration Agency as occurred with the storm-water management improvements at Oak Hall Regional Park in 2014.

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3. The roof cannot be repaired and must be replaced. The project cost could be financed by a longer term loan from the Centre Region Code Administration Agency.

This is the wet stage floor due to a leaking barn roof.

the second year that municipal contributions have been formally proposed for the Nature Center’s Capital Budget. 

The beginning fund balance for 2019 is projected to be $610,178 with all funds committed for future capital projects at the Nature Center, including the Phase II of the Spring Creek Education Building. It is estimated that in 2019, the Center will receive approximately $400,000 in grants and donations.



Staff will be submitting a grant application for $350,000 from the Department of Conservation and Natural Resources (DCNR) in April, 2019.

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As highlighted in the 2019 Program Plan, the barn roof and gutter and the staining of the barn and Spring Creek Education Building siding are planned capital improvements for 2019. In addition, major repairs of the boardwalk will be postponed to 2020, unless additional funding sources are secured.

BUDGET FUNDING FORMULA The funding formula for the $50,000 in municipal contributions is based on the 2019 COG Modified Funding Formula (not including Halfmoon Township). REVENUE & EXPENDITURES 

$50,000 in municipal contributions are requested for 2019. These funds are recommended to finance the repair and replacement of existing facilities and related systems. This is

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LOOKING AHEAD During 2019 and 2020 efforts will continue to solicit community donations and to obtain grants to finance the Phase II expansion of the Education Building and the construction of the Welcome Pavilion and restrooms. The participating municipalities may be asked to contribute to these efforts in the 2020 COG budget. As mentioned previously, during 2019 a focus of the Capital Budget will be repairing or replacing the leaky metal barn roof. If funds are available the barn may be re-stained in 2019. Looking ahead to 2020, the focus of this budget should shift to the repair of the over Â˝ mile long boardwalk. Recent high waters due to heavy rainfalls have caused the boardwalk to become uneven in some areas and banked in others. This is likely to be a multi-year project that could extend three or more years.

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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. 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 – 2018 Bruce Lord, Chair Eric Bernier, Vice-Chair Janet Engeman Laura Dininni Jessica Buckland Charima Young

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

2019 Summary Budget – Regional Parks Capital

Participants arriving at Oak Hall Regional Park for the 2018 Annual Easter Egg Hunt!

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 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.

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THE REGIONAL PARKS CAPITAL BUDGET

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The "Regional Parks Capital - Authority" budget was established by the Finance Committee to track the revenue and expenditures related to the development of three regional parks by the Centre Region Parks & Recreation Authority:

The Pennsylvania Commonwealth Court ruled in favor of the “The Cottages” project (Toll Brothers – Developer). The Pennsylvania Supreme Court did not hear an appeal of this decision which ended the litigation.

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In May, 2018 the General Forum received a follow-up report regarding the status of the park loan and its approval of COG Resolution 2017-2 that extended the final draw for using the loan with Fulton Bank to construct the park from June 1, 2017 to June 1, 2020.

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PennTerra Engineering, the consulting engineer for the Cottages project, confirmed to COG staff that the parklands can connect to The Cottage’s road, sewage, water and other utility systems. The COG’s cost for infrastructure improvement is limited to direct expenses for making the various connections and would not include the costs of building the road or other improvements. The value of improvements that will be made available to the park is approximately $1.2 million.

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PennTerra Engineering expects that The Cottages project will begin in October, 2018 and fencing around the site is in place.

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During its September/October meetings the General Forum considered/will consider a grant of easement that would allow the construction of a pump station on park property to be maintained and operated by the University Area Joint Authority for the purpose of providing public sewer service to the park and The Cottages. This grant has been approved by the Ferguson Township Board of Supervisors. In addition, the Pennsylvania Department of Environmental Protection

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) – Jointly purchased by the COG and Ferguson Township in two transactions (a 75-acre acquisition in 2008 and a 25-acre acquisition in 2010). At the time it was assumed that the owner of the property adjoining that was zoned R-4 (multi-family) would construct a road and install utilities (sewer, gas, water, electric service) in such a manner as they could easily be connected to the park. A Master Site Plan for the park was approved by the General Forum in 2013 and construction was expected to start in 2015. A sales agreement for Toll Brothers to purchase the adjoining property to the park was made in 2012 with the sale closing in late 2017. It was acquired for the purpose of constructing The Cottages, a high-end student apartment complex. Members of the community opposed this development and aspects of the land development plan which were subsequently litigated through the judicial process. As a result of this litigation the park project was delayed by several years. However, since the beginning of 2017, there have been the following changes: 2019 Summary Budget – Regional Parks Capital

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approved the sewer module for the pump station as located in the proposed easement. 

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In October, 2018 the Centre Region Parks and Recreation Authority retained the services Stahl Sheaffer Engineering to prepare a land development plan for the park. This plan will be submitted to the Ferguson Township Planning Commission and to the Board of Supervisors for approval. This process is expected to take six to seven months. Groundbreaking for the park may occur in mid-2019.

In 2011 the Centre Regional Recreation Authority (now known as the Centre Region Parks & Recreation Authority - CRPRA) entered into a $7,578,800 loan with Fulton Bank. The loan was incurred to fund improvements at Oak Hall Regional Park and Whitehall Road Regional Park. The Phase I of Oak Hall Regional Park Project is complete and the remaining $4.8 million in borrowed funds are designated for Phase I of the Whitehall Road Regional Park project. The repayment of this loan was guaranteed by the municipalities that participate in the Centre Region Parks and Recreation Program. The loan has been modified five times since 2011. The CRPRA has applied for several grants to assist with the funding improvements to the parks. At the time of budget preparation the status of these applications is unknown.

BUDGET REVENUE Municipal Contributions – Regional Parks This $350,000 appropriation is unchanged from 2018. It pays the debt service on the $7,578,000 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. At this time, the Whitehall Road Regional Park’s development is on schedule to meet the loan’s final draw date. Other Revenue These funds consist of interest earnings, grant reimbursements, house rental revenue (Oak Hall), and loan proceeds for the regional parks loan. The agricultural farming lease for Whitehall Road Regional Park ends in November 2018. EXPENDITURES Building Operations Services $15,000 is proposed to fund a deck replacement project at the Oak Hall Regional Park rental house. Architect/Engineering Fees $100,000 is proposed for fees related to land development planning at Whitehall Road Regional Park in 2019.

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Capital Project â&#x20AC;&#x201C; Whitehall Road Regional Park $2,000,000 is proposed in 2019 to begin the construction of Whitehall Road Regional Park (Phase I). The Phase I amenities include a year-round pavilion/concession stand/restroom building; an all-ability and universally-accessible playground; four rectangular playing fields; two parking lots; main access road; linear trail; internal connector trails and sidewalks; electrical, water, and natural gas connections; sewer connections; stormwater retention facilities to include bio-swales, retention basins, and underground filtration systems; a storage building; and an area to serve the parkâ&#x20AC;&#x2122;s recycling/trash needs. The rectangular playing fields will be grass unless the additional private funding needed for synthetic turf and lights is realized. A solar project for the pavilion/concession/restroom building is also an option at this time, based on funding levels from third-party sources. Debt Service The 2019 debt service for the regional park development loan to the CRPRA is estimated at $395,896. 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 debt service is paid by municipal contributions of $350,000 and the fund balance of $45,896. In addition, $21,190 is proposed to repay the 2019 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.

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2019 Year End Fund Balance The estimated 2019 year-end fund balance is expected to be $653,363.

A gorgeous view of Mount Nittany taken during the distance throwing contest as part of the 1st Annual Cornhole Tournament held at Oak Hall Regional Park in April, 2018.

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