DISTRIBUTED OVERHEAD & FRINGE BENEFITS

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2 DISTRIBUTED OVERHEAD & FRINGE BENEFITS Actual Actual Budget Estimate Budget Personal Services $ 3,361,231 $ 3,360,935 $ 3,643,714 $ 3,651,375 $ 3,964,436 Less: Dist. Operating Costs (3,384,033) (3,365,597) (3,643,714) (3,651,375) (3,964,436) Total Personal Services $ (22,802) $ (4,662) $ - $ - $ - DISTRIBUTED OVERHEAD & FRINGE BENEFITS OVERVIEW This account represents the Township's total cost for Social Security, Group Life Insurance, Medical Insurance, Workers Compensation Insurance, Long-term Disability Insurance, Unemployment Compensation and Retirement Fund Contributions for Township employees. All fringe benefit costs are allocated to specific departments or funds, except for Unemployment Compensation. Please refer to the schedule on the following page for a breakdown of the allocation. DEPARTMENT EXPENDITURES Distributed Overhead & Fringe Benefits ???-000 Actual Actual Budget Estimate Budget Personal Services 160 Social Security Expense $ 679,368 $ 792,699 $ 720,594 $ 717,182 $ 735, Group Life Insurance 45,922 29,611 39,621 39,621 46, Medical Insurance 1,437,509 1,446,161 1,788,141 1,800,214 1,922, Workers' Compensation 344, , , , , Unemployment Compensation 2,640 13,059 16,000 16,000 16, Pension Costs 831, , , , , Long-term Disability Insurance 19,502 16,639 21,809 21,809 23, Less: Dist. Operating Costs (3,384,033) (3,365,597) (3,643,714) (3,651,375) (3,964,436) Total Personal Services $ (22,802) $ (4,662) $ - $ - $ - BUDGETARY COMMENT In 2018, the total overhead Fringe Benefit expense is estimated at $3,964,436, which is an increase of $320,722 or 8.8% from the 2017 Budget. The change is primarily due to the increase in medical and pension costs. 253

3 DISTRIBUTED OVERHEAD & FRINGE BENEFITS FRINGE BENEFIT DISTRIBUTION Fund - Acct. Social Life Medical Workers' Pension LTD No. Program Security Insurance Insurance Comp. Costs Insurance Commissioners $ 643 $ - $ - $ - $ - $ Administration 39,810 3, ,584 2,601 45,231 1, Finance Office 11,708 1,163 35, , Tax Collection 2, , , Information Technology 16,715 1,705 49,361 1,203 16, Cable Television 3, , , Police 253,236 16, , , ,836 8, VFD 2, ,239 34,264 1, Comm. Development 28,960 2, ,479 1,951 28,356 1, Recreation - Admin 4, ,780 14,957 4, Recreation Programs 8, Library 44,822 2,326 91,420 6,178 17, Public Works 143,185 7, , , ,469 5, Post Employment Benefits , Library RAD Fund 9, ,493 1,171 5, Sanitary Sewer 13,349 1,192 27,945 1,171 12, BM Park RAD Fund 19, , , BM Rec 134,575 6, ,654 89,223 53,659 2,582 Total Benefits $ 736,527 $ 46,509 $ 1,935,469 $ 454,900 $ 765,488 $ 23,167 Fringe benefit costs for Administration, Finance, Information Technology, Police, Community Development, Public Works, Recreation Administration and Library Administration are based on actual costs per employee. Fringe benefit expenses for all other Public Works programs also include wages for vacation and sick days, craft wages and uniform rental costs. Social Security contributions are the only costs allocated to recreation programs. $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, Fringe Benefit Trends $ Medical Insurance Workers' Comp Pension Costs 254

4 DISTRIBUTED OVERHEAD & FRINGE BENEFITS FRINGE BENEFIT REIMBURSEMENTS (See General Fund Revenue-Other Non-Tax Revenue ) Medical Insurance All Township employees are required to contribute an amount towards their medical insurance premiums through a payroll deduction. Listed below is a breakdown of the contribution stipulations and the anticipated contributions per employee group. Teamsters Local 205 TBD for 2018 (was 4% of premiums in 2017) Police Officers 6% of premiums Police Dispatchers 6% of premiums All other Non-contractual Employees 10% of premiums Retired Police Officers Responsible for all premium increases above retirement year premium amount 2018 Budget Medical Insurance Employee Reimbursements Police Officers $ 22,700 Non-Contractual Employees 76,000 Teamsters 17,100 Dispatchers 2,200 Total Employee Reimbursement $ 118,000 Net % of Medical Insurance 6.1% Workers Compensation The Township belongs to a trust that pools multiple government entities for the administration of workers compensation insurance. This managed care plan reduces costs, risks, and returns surplus funds to members in the form of annual dividends. Below is a history of the net cost to the Township for workers compensation. Actual Actual Actual Actual Actual Actual Actual Estimated Budget WC Premium $480,226 $517,371 $406,433 $352,136 $368,439 $344,655 $364,977 $437,849 $454,900 WC Dividends (53,077) (69,449) (81,055) (128,586) (141,038) (175,072) (156,696) (128,247) (105,000) Net Premium $427,149 $447,922 $325,378 $223,550 $227,401 $169,583 $208,281 $309,602 $349,900 Pension Costs Act 205, the Commonwealth of Pennsylvania's Municipal Pension Law, mandates that information regarding the Township's minimum pension obligations be included in the budget. The anticipated pension expenses are partially offset by the State Pension Grant as shown below: Public Works Management Employees Police & Admin Pension Pension Pension Total 2018 Minimum Municipal Obligation $ 245,558 $ 267,335 $ 252,877 $ 765,770 Less: State Pension Grant (127,400) (218,400) (286,650) (632,450) Difference - Net Cost to Township $ 118,158 $ 48,935 $ (33,773) $ 133,

5 DISTRIBUTED INSURANCE Actual Actual Budget Estimate Budget Contractual Services $ 192,468 $ 189,008 $ 199,400 $ 199,400 $ 204,552 Less: Dist. Operating Costs (160,249) (156,867) (169,100) (169,100) (173,352) Total Contractual Services $ 32,219 $ 32,141 $ 30,300 $ 30,300 $ 31,200 DISTRIBUTED INSURANCE OVERVIEW This account represents the Township's cost for General Liability Insurance. In 2018, the total cost will be distributed based on actual costs. DEPARTMENT EXPENDITURES Distributed Insurance ???-000 Actual Actual Budget Estimate Budget Contractual Services 199 Less: Dist. Operating Costs $ (160,249) $ (156,867) $ (169,100) $ (169,100) $ (173,352) 220 Umbrella Policy 10,470 10,700 11,300 11,300 11, Special Multi-Peril Policy 143, , , , , Employment Practices Liability 20,107 20,863 22,000 22,000 22, Pollution Liability 7,945 7,945 8,900 8,900 8, Brokerage Services 10,000 10,000 10,000 10,000 10,000 Total Contractual Services $ 32,219 $ 32,141 $ 30,300 $ 30,300 $ 31,200 BUDGETARY COMMENT The 2018 Budget reflects an increase of $900 over the 2017 estimate due to various minor adjustments in premiums. THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK 256

6 POST EMPLOYMENT BENEFITS POST-EMPLOYMENT BENEFITS OVERVIEW These accounts represent Post-Employment benefits paid to Township retirees as a part of negotiated labor Agreements and COBRA Insurance Benefits paid on behalf of former employees. DEPARTMENT EXPENDITURES Post Employment Benefits ???-000 Actual Actual Budget Estimate Budget Personal Services 162 Group Life Insurance $ 558 $ 677 $ 1,022 $ 1,022 $ Medical Insurance 102, , , , ,699 Total Personal Services $ 102,674 $ 101,763 $ 138,167 $ 138,167 $ 150,679 COBRA Insurance Benefits ???-000 Actual Actual Budget Estimate Budget Personal Services 163 Medical Insurance $ 1,213 $ 121 $ 10,000 $ 10,000 $ 10,000 Total Personal Services $ 1,213 $ 121 $ 10,000 $ 10,000 $ 10,000 All COBRA Insurance costs are paid by the beneficiary. Please see the General Fund Revenue-Other Non- Tax Revenue section for more details. THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK 257