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Copyright 2006, East Rockhill Township, Pennsylvania.  All rights reserved.

2007 Budget Report

EAST ROCKHILL TOWNSHIP

2007 Budget Analysis

 

Prepared by Anne W. Klepfer

November 28, 2006

 

Financial management is the process of obtaining funds to support the necessary services provided by the Township and using those funds in an effective and efficient manner.  Sound fiscal management requires a well planned budget and effective use of the budget as a tool for managing the receipt and spending of money throughout the year.

 

I am pleased to present a balanced budget of seven funds totaling $4,379,965 in revenues and expenditures.   In preparing this budget I utilized the following goals as guidelines for decision making:

 

¨          Realistic revenue projections that are based not only on past performance but also on the economic forecasts, demographics and development activity such as the number of subdivisions plans approved for construction.

¨          Separation and organization of realistic expenditures by department or category increased departmental accountability and improved expense forecasting.

¨          Planning for a decreased dependence on tax anticipation borrowings that result in costly interest payments.  Elimination of the TAN by 2010.

¨          Establishing a long range goal of maintaining reserves for each fund that fall in the “safe harbor” range of 6-10% of revenues. 

¨          Capital spending to improve the health, safety and welfare of the Township.

      

The budget proposed includes a 1 mill increase in the General Fund Real Estate Tax rate and a .5 mill increase in the Fire Protection Services Real Estate Tax rate.   For a property with our average assessment of $29,001.00 this will equate to total increase of $43.50.   The increase in the General Fund Real Estate Tax is necessary to achieve long range planning objectives mentioned above and to provide for sufficient revenue to cover increased operating costs stemming from the unstable gas and oil market, a relatively flat building environment, and decreasing home sales values.  The increase in Fire Protection Tax fulfills our commitment to fund East Rockhill’s contribution to capital equipment purchases and fire protection by each of the five fire companies that are first responders in East Rockhill Township.

 

The budget includes a significant departure from the past practice of using Township General Fund Tax Dollars to pay for the electricity for street lights that are neighborhood specific.  Therefore, an annual flat fee $50.00 per improved property within developments serviced and benefited by street lights is proposed to offset the electric bill for the lighting in those districts.

 

The budget also includes the proposed borrowing of $150,000 in funds for Road Reconstruction and Maintenance to help finance significant road improvements to portions of Hillendale Road, Schwenkmill Road, Butler Lane, Bridge View Drive, Harriet Drive, Meadow Lane, West Rock Road, Three Mile Run Road and Clymer Road.  The debt service for the borrowing will be paid for out of state liquid fuels funds over a period of ten years or less.

 

Other capital expenditures include acquisition of conservation easements under the Township’s Farmland and Open Space Preservation Program, the purchase of a new pick-up truck to replace a 1995 pick-up truck and the scheduled replacement of street signs in the Township to comply with the State mandate relating to street sign standards for size and iridescence.

The East Rockhill Township 2007 Budget Report is also available for download from the Government Documents page.