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Department of Finance 2013 Budget Highlights General Fund Budget Overview In preparation for the 2013 budget, Township staff continued with the streamlined, focused approach established in past years. The use of departmental budget worksheets featuring trend analysis and inflation statistics allows for the staff to more accurately predict future budgetary expenditures. The department directors were provided the opportunity to respond to the departmental budget worksheets with an acknowledgement of the projections or a justification for a change in budgetary numbers. After preparing any proposed changes, the staff met with individual departments to discuss both operating and capital budget requests. This process yielded a slight increase in the 2013 budget expenditures for the General Fund of (2.82%) from the 2012 budget. Where the Money Comes From The 2013 major operating revenues are real estate and earned income taxes. The balance of operating revenue comprises other taxes and other revenue. Other taxes include real estate transfer, public utilities, sales and use, and local services taxes. Other revenue consists of licenses and permits, fines, fees, rental and service agreements, investment earnings, recreation fees, and other non-tax revenue. General Fund revenues are projected to increase from 2012 budget amounts of $18,321,224 to $18,837,461, or (2.82%). The increase in General Fund revenue is mainly due to the effect of an increase in projected collections of real estate transfer tax (6.25%), an increase in projected earned income tax (3.19%), and an increase in projected local option sales tax (25.28%). The real estate tax rate will be adjusted to 3.90 mills due to the Allegheny County reassessment and the earned income tax rate will remain at 0.80%. The General Fund is projected to be at $3,308,123 Fund Balance, or 17.6% of estimated 2013 General Fund revenues.
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Operating Expenditures Summary For the 2013 budget, overall General Fund operating expenditures have increased by $194,551, or 1.39% from 2012 budget amounts. This has occurred through a combination of the following reasons: • Full-time non-contractual personnel salary and wages increases are projected at 2.5%. • Police officers contract has a set hourly wage increase of 3.0%. • Public Works contract has a set hourly wage increase of 3.5%. • Health insurance costs are budgeted to increase by 2.3%. • For 2013, the pension Minimum Municipal Obligation (MMO) for the Police is $499,570 and $276,604 for Public Works employees. This is a net increase of $137,201, or (21%) from 2012. • Workers’ compensation, life insurance, and long-term disability premiums are budgeted to decrease by $40,000, $15,000 and $20,000, respectively, for 2013. The 2013 budget will maintain the General Fund Balance at a level necessary for the Township to maintain its AA+ bond rating. n
Capital Projects Fund The Capital Projects Fund will be funded by an operating transfer from the General Fund and the Fund Balance, which is estimated to be $2,487,667 at the end of 2013, up from the 2012 budget projection of $2,115,287.
Where the Money Goes The 2013 projected operating expenditures will increase from the 2012 budgeted amount of $14,041,430 to $14,235,981, or 1.39%. The increase of $194,551 is primarily due to increases in personal services increases as noted below. The primary programs of the Township are Public Safety, which includes Police, Volunteer Fire Department and Animal Control, and Public Works. These programs represent 66.4% of the Operating Budget. The remaining difference of projected revenues over operating expenses of $4,601,480 will be used to fund the debt service costs for 2013 of $1,168,299 and operating transfers of $3,433,181. 50
UPPER ST. CLAIR TODAY
Spring 2013