RESULTS OF FINANCIAL OPERATIONS FOR 2012 April 18, 2013
A Brief History • • • •
January 3, 2012 – New Township Council takes office. January 5, 2012 – New Township Manager begins work and implementation of New Form of Government. January 19, 2012 – Council reopens adopted 2012 budget. February 15, 2012 – Township Manager presents financial analysis to Council at public meeting. Manager warns Council that they must reduce the cost of government or face becoming a financially distressed community under Act 47. Township could no longer go on with “business as usual” raising taxes and financing police cruisers and Public Works’ trucks. February 15, 2012 – Council adopts amended 2012 Township Budget with .3 mill tax decrease and a $105,249 reduction in General Fund spending. May & June, 2012 – Manager implements EXTREMELY DIFFICULT Reductions to the Workforce with an eye on eliminating use of rainy day funds to balance budget and improving efficiency of operations. October 22, 2012 – M & B Environmental takes over operation of Bristol Township Wastewater Treatment Plant.
The Bristol Township Miracle • Finished 2012 with $5,999,255 General Fund Surplus beating projection by $2,251,534! • Revenue came in $1,315,075 higher than original 2012 Adopted Budget. • Expenses came in $936,459 lower than Budget Projection. • No Surplus Funds Used & Budget Balanced in First Year! • All Major Funds Beat Budget Projections.
2012 GENERAL FUND REVENUES • Earned Income Tax Collections came in $797,186 over Budget due to Improved Efficiencies from Act 32. • Insurance recoveries exceeded Budget by over $253,000 from insurance carriers. • Township did not use any of $709,455 of Fund Balance Budgeted as Revenue in 2012!
2012 GENERAL FUND EXPENDITURES • Expenses came in $936,459 under Budget while increasing level of services and responding to worst storm in history. • Only $257,346 of savings came from wages. $679,113 in spending cuts came from improved efficiencies. • 5 Council Members took No Salary Saving $17,500 of Tax Dollars. LEADERSHIP!
General Fund Financial Results
General Fund Financial Results
Sewer Fund Financial Results
Refuse Fund Financial Results
Street Light Fund Financial Results
Parks & Recreation Fund Financial Results
Capital Improvement Fund Financial Results
Liquid Fuels Fund Financial Results
HOW IT WAS DONE • It takes a Team Effort! • Council set the tone—the TAXPAYER comes first, not Politicians, Cronies or Special Interests. • Council provided political leadership; courage to make tough decisions and the will to control expenditures. • Our dedicated Employees worked harder and did MORE with less.
THE WAR IS NOT OVER There is still much work to be done! We must resist going back to the old ways of doing business in Bristol Township. • There are $86 Million in unfunded liabilities from previous administrations kicking the can down the road! • 88 miles of Township Highways in Need of Resurfacing. 62 miles of original Levitt Roads have never been Repaved in 60 years. Estimated cost = $30 Million. 21 to 25 miles are scheduled to be paved in 2013. • Public Works parks majority of its fleet and equipment outside of its garage subjecting assets to weather and vandals. Estimated cost of improvements = $2.5 Million. • Streetlights are old and prohibitively expensive to maintain. Cost to complete LED Retrofit Project = $3 Million. $1.2 Million has been budgeted for 2013 to begin this project. • Cost of benefits for Township employees is still over 80% of wages. This is not sustainable. • Township must invest in technology to continue to reduce costs and improve efficiency of the delivery of services.
MAP TO FINANCIAL HEALTH • One year ago Township was staring at Act 47 declaring Township a financially distressed municipality. It now has a roadmap to financial health. • Critical to continue with control of expenditures, reducing cost of services and improving efficiencies. • Maintain Tax Rate at present level. • Continue to invest in its Infrastructure, such as Roads, Buildings and Sewer System. • Continue to encourage investment by business in Bristol Township to create jobs for residents and grow Tax Base.