BOROUGH OF COLWN Office of the Borough Manager

Transcription

1 BOROUGH OF COLWN Office of the Borough Manager December 11, 2014 Subject: 2015 Budget Message As required by the Pennsylvania State Borough Code, the final 2015 Budget is respectfully submitted for review and adoption. This is the final budget in a series that represents the continuous evolution of the document in an ongoing effort to create the best policy document possible for the citizens of the Borough. Over the course of the last year the Borough has made several significant advancements within budget creation and spending practices, none as significant as breaking the pattern of spending tax money in unnecessary areas and failing to deposit funds when received. Changes like this represent the shift in theory necessary to budget efficiently and economically. Formatting for this budget document was created so that it will better serve as a policy document, as an operations guide, as a financial plan and as a communications medium. There have been ongoing modifications to the format of this document in an effort to increase transparency of government and encourage public participation. The greatest benefit to the citizens is that the format presents a clear picture of the operations and the financial plan that is embodied in the 2015 budget. This message is intended to supplement the numbers and statistical analysis of the proposed budget with a narrative that describes all budgetary recommendations and public policy considerations that comprise the budget. Responsible municipal budgets fairly and accurately provide for the required basic services as well as the desired services by the citizens. This plan accomplishes that goal. The Borough's highest priority is good quality service to the public. The public expects streets and sewers to be cleaned, police to respond quickly, snow to be plowed, etc... and services in general to be delivered efficiently and effectively. The Borough should not permit the ambiguous economic climate to affect the high quality basic public services the residents have appreciated. Colwyn Borough has continued to move forward during the past year. This administration continues to manage our way through a daunting fiscal obstacle course. To the credit of many contributors to Colwyn Borough's local government, the Borough has remained in the enviable position where we continue to provide quality services to residents while finding ways to cope with inconsistent revenues. It would be nice to report that the most difficult financial times are over, but that is simply not true. In order to avoid raising tax rates, tough decisions must continue to be made to fulfill our obligation to the Borough's 2,600 residents. Many of the decisions that lie ahead may not always be popular, but they may be necessary to secure a solid fiscal foundation for the Borough of Colwyn in the 21st Century. I present this document; the Borough's Final Budget for Fiscal Year 2015, knowing that it addresses our citizens' fundamental needs while preserving the important financial reforms that will sustain the integrity of our Borough as we continue to confront the challenges posed by a

2 weak national economy. I have worked successfully to develop a spending plan that safeguards services; and strengthens current reserve balances. As in the past year, we approached this next year's budget with the same cautious, fiscally conservative, and "business smart" approach that a municipal government of limited means must pursue in good, or in bad times. This cautious and prudent approach will involve the following actions: Revenues. Expenditures- One of the Borough's major revenue sources is the Real Estate Property Tax. In 2014, this rate was 26.6 mils. For 2015 this tax rate is reduced to 24.6 mils. Can we afford to reduce taxes? Probably not. However our residents are losing their homes at an alarming rate because they can't afford to pay the taxes. Colwyn Borough has the highest millage in Delaware County at 26.6 mils for Real Estate tax and.6 for Fire Tax for a total of 27.2 mils. A small reduction is the least we can do for our residents. If it will save one or two families from losing their homes, then it is most certainly a necessary step in the right direction. 3 year Expense Comparison 5 0 I 1 I Police Salaries Delinquent Bills Administrative Salaries Fire Protection Expenses f 2015 In 2014, the Borough was able to significantly reduce expenditures by placing the proper means in effect to control spending and expand services. Delinquent bills in 2013 reached an all time high. In 2014, $280, was paid for delinquent bills that occurred in In 2015, this extremely high number is reduced as most of 2014's bills have been paid, and on time. However there still remains a significant amount of unfunded debt from 2013 and prior bills that will have to be paid. This can occur by securing an unfunded debt loan to cure all outstanding bills. Police salaries have also been significantly reduced. This has been accomplished by eliminating unnecessary administrative positions and employees who were on the payroll, but not legitimately hired. Taxpayer monies were used in this category to heavily fund positions that rarely were staffed. By restructuring the Manager's Message - u - December 11, 2014

3 Long-Range Planning department, services have increased while expenditures for salaries have decreased. Administrative salaries that include borough management and code enforcement have significantly been reduced. Outsourcing management in 2013 increased costs while decreasing service. Part time administrative managers/administrators who worked "remotely" at most times, were paid significantly higher than the current full time manager in Code Enforcement also had high costs associated with outsourcing this department. Costs were significantly reduced while services increased. On call at all times, these two departments are always "on the job" and ready for whatever municipal problems may arise. The 2015 Budget reflects a significantly lower cost for Fire protection. In 2013 and prior years, tens of thousands of dollars have been spent on legal, insurance and operating expenses. The current fire companies in District 4, are located only a few blocks from the border of Colwyn Borough. It is fiscally responsible to outsource fire protection to those who currently protect our borough, without the high cost of maintaining buildings, equipment, insurance, liability and vehicles. The ISO Rating for all District 4 municipalities is the same which enables insurance rates to remain the same throughout the district as well. In this 2015 Final Budget, the grant award from the Department of Community and Economic Development Early Intervention Plan is reflected as well as the cost for a Financial Consultant, paid for by the EIP grant. The Early Intervention Program will enable the financial consultant to delve deep into Colwyn's past and current practices to give us a clear picture of where we are, and where we need to be. This Long Range Plan will be the chart for future generations and to stabilize our borough. Colwyn Borough is continuing to take steps to get the most out of existing services, while conserving finances. During challenging fiscal periods, opportunities emerge for making government more efficient. It's times like this that cause the administration and its chief policy makers to no longer accept the "same old practice" as the norm and challenge people to ask the simple question- Why? The question "why" takes on new meaning when we look at how we operate various Borough functions. As local decision-makers, our decisions have a profound effect on the local quality of life. By providing a safe, clean community with cultural and recreational opportunities, we can do our part to help re-energize Colwyn Borough. In closing, Colwyn Borough continues to be very vigilant in providing services on a basis of what is affordable to the citizens today, and will not become a burden to them in the future. The Borough will continue to follow this policy, as it must make a commitment to consider where the Borough is, to consider where the Borough must be in the future, and to be willing to accept and promote the changes that are necessary to be ready for the future. Very truly yours, Paula M. Brown Borough Manager Manager's Message - iii - December 11, 2014

4 2013 and prior Delinquent Bills paid in 2014 Vendor Amount Paid Purpose - Description PECO $5, Street Lights - delinquent bill Suburban Waste $52, Delinquent trash fee Purchase Power $ Delinquent Stamp machine fees United Concordia $ Delinquent Dental Insurance premiums Leaf $ Delinquent Copy machine rental Cook Exterminating $ Delinquent Exterminator costs General Code $1, Delinquent online Code publisher costs Copy Products $1, Delinquent Copier rental fees Hoff Communications $ Website hosting fees for 2013 Telvue $3, Television station fees for 2013 Delco Times $1, Classified ads - public notice fees for 2013 Metro Alert $1, police software license fees General Sewer $3, sewer cleaning fees Olanoff,Garrity,Hazelton;Hills $10, back medical payments Hazelton $2, back dental payments Hills $9, back pay;longevity Michael Pierce Esq $3, legal fees Harrison Group $ Flex spending - medical card PECO $10, Borough Hall -overdue 10 mos. PECO $ Boro Garages - overdue bill for 2013 Out In Front $ car repair bills Advance Auto $ car repair bills Michael O'Doherty $16, Audit fees Delaware County Solid Waste $18, dumping fee Commonwealth Code $8, Code Enforcement cost Joseph Chuepin $10, Arbitration costs Axa Equitable $1, Life ins premium for Chief Garrity Independence Blue Cross $25, back medical ins payments Independence Blue Cross $28, Court ordered medical payments Pitney Bowes $ past due postage Portnoff $6, past due collection fee for delinquent taxes Public Drug $1, past due medical bills HCC Public Risk $2, Esau Pour Lawsuit deductible HCC Public Risk $1, Ferry Lawsuit deductible Eckert Seamans $5, Arbitration costs National Fire Insurance $22, McDermott & Jackson Lawsuits deductible Lightening Locksmith $ past due bill Beneficial Bank $60.00 Research fee checks Sign A Rama $ past due bill ARD Uniforms $1, bill for police uniforms City of Philadelphia $ Wendell Reed Wage tax Animal Protection Board $1, bill HCC Public Risk $2, DeVore lawsuit deductible HCC Public Risk $2, Robinson Lawsuit deductible HCC Public Risk $2, Nwegbo Lawsuit deductible Carl Ewald Esq $2, past due bill for attorney fees

5 2013 and prior Delinquent Bills paid in 2014 Crystal Powell Esq $2, past due bill for attorney fees Chester Ridley Crum Watersh $ past due bill DCED $ UCC permits $280,511.67

6 COLWYN BOROUGH BUDGET CALENDAR STEP ACTION DAY DATE RESPONSIBILITY 1 Prep. & Submission of Budget Calendar to Depts. W Manager 2 Submission of Budget Request to Manager W Dept. Heads 3 Department Budget Review Meetings M-F Manager 4 Preparation of Preliminary Budget M - F Manager 5 Submission of Preliminary Budget to Council Th Manager 6 Budget Workshop Th Borough Council 7 Posting of Proposed Budget Th Manager 8 Advertise Notice to Adopt Proposed Budget F Manager 9 Adoption of 2015 Budget Th Borough Council 10 Last Date to Post Proposed Budget Th Borough Council 11 Last Date to Adopt Proposed Budget Th Borough Council 12 Submission of Budget to PennDOT, 15 days after Adoption Th Manager

7 Borough of Colwyn 2015 Preliminary General Fund Budget For the Period January to December 31, I I 2015 Ordinary Income/Expense Income Real Estate Taxes Real Estate Tax - Current Levy 24.6 Mil 1,046, Real Estate Tax - Prior Years 100, RE Tax Delin Tax Claim Bureau 5, Total Real Estate Taxes 1,151, Local Tax Enabling Act Taxes Real Estate Transfer Tax 12, Per Capita Tax 13, Per Capita Tax Prior Year 10, LST Income Tax 25, Total Local Tax Enabling Act Taxes 60, Business Licenses & Permits Non Residential Licenses 2, Apartment Licenses 23, Single Family Rental License 5, Business License 1, Cable TV Franchise Fee 46, Other Licenses and Permits 0.00 Total Business Licenses & Permits 78, Non-Business Licenses & Permits Street Opening& Curb Permits 2, Total Non-Business Licenses & Permits 2, Fines & Forfeitures State Distribution of Fines 3, District Justice Local Fines 25, Parking Violation Fines 2, Total Fines & Forfeitures 31, Interest Earnings Rents and Royalties Rent of Buildings 10, Total Rent and Royalties 10, Federal Cap and Operating Grants - Liquid Fuels Public Safety BPV 10, JAG 50, PECO - Natural Land Trusts 10, DCED - Early Intervention Program 60, Liquid Fuels Tax 40, Total FED CAP and OPERATING GRANTS $ 170, County Aid = PREPARED BY PMB Page 1 of 6

8 Borough of Colwyn 2015 Preliminary General Fund Budget For the Period January to December 31, Highway and Streets 5, Total County Aid 5, Dept. Earnings - General Govt Zoning and Subdivision Fees 3, Fees for Engineer Site Inspection Fees for Sale of Code of Ordinances Fees for Sale of Zoning Ordinances Fees for Sale of Building Codes Total Dept. Earnings - General Govt. 3, Dept. Earnings - Public Safety Sale of copies of accident reports 1, Fire Inspection Permits 14, Building Permits 30, Electrical Permits 1, Plumbing & Heating Permits 1, Use and Occupancy Permits 24, Zoning Permits Crossing Guard Reimbursement 36, Total Dept. Earnings - Public Safety 108, Dept. Earnings - Sanitation Garbage Service Fee Recyclable Sales Total Dept. Earnings - Sanitation Miscellaneous Revenues Miscellaneous Revenue 0.00 Total Miscellaneous Revenues Proceeds of General Long-Term Debt General Obligations Bonds and Notes - Unfunded Debt 500, Total Proceeds of Long-Term Debt 500, Total Income 2,121, Expense General Administration Salary - Mayor and Council 12, Salary - Borough Manager 45, PT Clerk 9, Life Insurance Medicare 3, Fica 8, Unemployment Compensation 15, Employee Payroll Services 4, Materials and Supplies 1, Office Equipment = PREPARED BY PMB Page 2 of 6

9 Borough of Colwyn 2015 Preliminary General Fund Budget For the Period January to December 31, Auditing Services 80, Communication - Telephone 2, Communication - Postage 1, Advertising 1, Boro Mgr Bond (PD IN FULL) Umbrella Liability 14, Dues, Subscriptions, & Member. 1, Conference Expenses 2, Miscellaneous Admin. Expenses Total General Administration 201, General Govt. Tax Collection Salary - Tax Collector 3, Medicare Fica Materials and Supplies 2, Tax Collectors Bond 1, Occup., Mercant., Earned Inc. T 0.00 Total General Govt. Tax Collection 6, General Govt. Legal Solicitor Non-Retainer Fee 35, Special Legal Services 20, Total General Govt. Legal 55, General Govt. Munic. Bldg/Garag Materials and Supplies 1, Electricity 7, Sewer\Water Maintenance and Repairs 2, Janitorial Services 2, Capital Expenditures 2, Total General Govt. Munic. Bldg/Garag 16, Police Protection Salary - Police Chief 67, Salary - Police Officers Salary - Parttime Police 269, Police Overtime 5, Salary - Crossing Guards 73, Health\RX Insurance 108, Dental Insurance 3, Life Insurance 6, Medicare 35, Health \RX Deductibles 5, Fica 10, Unemployment Compensation 15, Training 1, Police Pension MMO 11, Cleaning Allowance Office Supplies 1, Vehicle Fuel - Gasoline 24, Uniforms - Officers & Cross. Gu 5, Police Supplies 5, Ammunition Professional Services - Animal Control 3, = PREPARED BY PMB Page 3 of 6

10 Borough of Colwyn 2015 Preliminary General Fund Budget For the Period January to December 31, Communication - Telephone 2, Automobile Liability Insurance 8, General Liability Insurance 52, Police Professional Liab. Insur 44, Worker's Compensation Insurance 56, Commercial Crime 22, Vehicles - Maintenance 7, Dues, Subscript. & Memberships Capital Purchases - Other Equip 50, Miscellaneous Police Expenses 2, Total Police Protection 896, Fire Protection Fire Chief Hydrant Rentals 17, Fire Marshall Salary Miscellaneous Fire Expenses Total Fire Protection 17, Public Safety - RegulAZoning Salary - Building Inspector 15, Salary - Electrical Inspector Medicare 35, Fica Materials and Supplies 2, Miscellaneous Public Safety Exp 0.00 Total Public Safety - RegulAZoning 53, General Health Services Salary - Health Inspector 1, Salary - Plumbing Inspector Miscellaneous Health Inspects Total General Health Services 1, Sanitation Collect. and Disposa Special Sanitation Services 90, DCSWA Surcharge 33, Total Sanitation Collect. and Disposa 124, Highway - General Services Salary 58, Vehicle Repairs and Parts 3, Medicare 1, Fica 4, General Expenses 2, Uniform Maintenance Garage - Building Repairs 2, Gas and Oil 6, PECO 3, Water Materials and Equipment 2, Engineering Services 2, Maintenance and Repairs 3, Engineer 3, Contracted Services 2, = PREPARED BY PMB Page 4 of 6

11 Borough of Colwyn 2015 Preliminary General Fund Budget For the Period January to December 31, Capital Outlay Snow and Ice Removal Material 5, Snow and Ice Removal Salaries 5, Street Signs and Markings 2, Street Sign Maintenance 3, Liquid Fuels /Roads 20, Drainage Repair - Capital Reserve 1, Inlet Repairs 1, Streets Paving - Capital Reserve 2, Capital Projects 10, Total Highway - General Services - Public Works 142, Parks and Playgrounds Materials and Supplies 10, Contracted Services 2, Contributions to Recreation Bo Capital Outlay - Recreation 0.00 Total Parks and Playgrounds 12, Debt Principal Unfunded Debt Note 500, Total Debt Principal 500, Debt Interest General Term Note Total Debt Interest Act , Pension 43, Total Act , Total Expense 2,079, Fund Balance -surplus 41, Other Income/Expense Other Income Fiduciary Income State Contribution Fire Relief 14, Total Fiduciary Income 14, Total Other Income 14, Other Expense Fiduciary Expenses Fire Relief Contribution 14, Total Fiduciary Expenses 14, = PREPARED BY PMB Page 5 of 6

12 Borough of Colwyn 2015 Preliminary General Fund Budget For the Period January to December 31, 2015 I. I I 2015 Sewer Fund Revenue 300, Sewer Fund Expenses 300, Fire Tax Revenue.6 Mil 25, III Fire Tax Expenses 25, Trash Fund Revenue 114, III Trash Fund Expenses 114, = PREPARED BY PMB Page 6 of 6