2017 Financial Summary

Key points about financial results from the year ending December 31, 2017

How are operations accounted for?

The General Fund is the municipality's main operating fund.The General Fund accounts for all financial resources to be used for day-to-day operations of the Municipality.The General Fund is broken down into specific departments that maintain core services.Other funds are used for specific revenue sources, capital projects and parking operations.

General Fund Revenues

The Municipality receives the majority of its money from taxes collected (76%).The two primary tax sources are Real Estate Tax Collection (35%) and Earned Income Tax Collection (33%).Other major revenue sources include charges for service and recreation fees.Overall, operating revenues for the municipality exceeded budgeted amounts by $623,648 in 2017.

General Fund Operating Expenditures

Operating expenses for the municipality were $1,146,765 under budgeted amounts for 2017.The primary cause of the budget surplus was due to savings within the Public Works function ($694,723).All departments were within budget for 2017.

2017 Major Initiative

On January 23, 2017, Mt. Lebanon issued general obligation bonds in the amount of $8,800,000. The proceeds from the bond issue were designated for ice center repairs, public works facility upgrades, a new firing range and a new fire pumper truck (replacing an older model).The ice rink renovations were completed in September 2017. The remainder of the identified projects will be completed in 2018-2019.

Real Estate Tax Increase

The 2017 budget increased the Municipality's millage rate by 0.20 mills.The millage increase was directly related to the increase in debt service needed to fund the increase in debt service for the 2017 bond issue.Overall, current real estate tax collection was collected at 98% in 2017.

Debt Service Increase

The increase in debt service attributable to the 2017 bond issue was $554k.The increase in current real estate taxes was $574k.The dedicated millage increase was sufficient to cover the increased debt service.

General Fund - Fund Balance

A key measure of the Municipality's overall financial health is the fund balance.For the year ended December 31, 2017, the Municipality's Fund Balance for the General Fund totaled $7.4 million, an increase of 10% over year ended 2016.

Fund Balance Composition

Fund Balance Composition

The unassigned portion of the Fund Balance represents expendable available resources that can be spent for future needs.By ordinance, the Commission has established that the unassigned portion of the fund balance must be between 12-15% of General Fund expenditures.At year-end 2017, the percentage was 16%. The amount above 12% was $1.4 million.