Budget Message & Summary
Richard J. Manfredi
Township Manager
FISCAL YEAR (FY) 2023 BUDGET
TOWNSHIP OF ABINGTON BOARD OF COMMISSIONERS
Thomas Hecker III, President, Ward 1
Matt Vahey, Vice President, Ward 12
Kenneth N. Brodsky, Member, Ward 2
Drew Rothman, Member, Ward 3
Jimmy Di Placido, Member, Ward 4
Julia Vaughn, Member,Ward 5
Michael Thompson, Member, Ward 6
Stuart Winegrad, Member, Ward 7
Lori Henry, Member, Ward 8
Dennis C. Zappone, Member, Ward 9
Jessica Carswell, Member, Ward 10
John Spiegelman, Member, Ward 11
Bill Bole, Member, Ward 13
Lori A. Schreiber, Member, Ward 14
Thomas Bowman, Member, Ward 15
2022 MANAGEMENT TEAM
Richard J. Manfredi, Township Manager / Chief Executive/Administrative Officer
Tara Wehmeyer, Assistant Township Manager / Chief Human Resources Officer
Ashley McIlvaine, Assistant Township Manager / Deputy Chief Administrative Officer
Theresa Castorina, Assistant to the Township Manager
Tim Clark, Director, Engineering
Elizabeth Fitzgerald, Director, Library Services
Kimberly Hamm, Director, Community Development
Jeannette Hermann, Director, Finance
Michael Jones, Director, Public Works
Karl Lukens, Director, Parks and Recreation
Thomas McAneney, Director, Fire and Emergency Services
Patrick Molloy, Chief of Police
John Rohrer, Fire Marshal
George Wrigley, Director, Wastewater
ACKNOWLEDGEMENT
It is the responsibility of the Township Manager to present the proposed annual budget for the next fiscal year (FY). The FY 2023 Preliminary Proposed Budget and public portal to the Township Budget was prepared by a dedicated management team including Jeannette Hermann, Finance Director, Monica Embery, Manager of Financial Services, and Ashley McIlvaine, Assistant Township Manager/ Deputy Chief Administrative Officer. We are committed to continually improving and integrating the electronic online budget book into our communication platforms and refining a document that is accurate, clear, transparent, and reflective of our commitment to fiscal responsibility and reporting that reflects a dedication to providing excellent service.
MISSION
To serve the community above all else including property owners, residents, businesses, customers, and all who visit Abington Township in a professional and respectful manner while delivering cost effective and efficient services. We recognize the dignity and worth of public service and are dedicated to the highest standards of integrity and fiscal responsibility.
VISION
Our vision is to have a community that is building on the foundations of:
- Celebrating our diversity and focusing on well-being and supporting each other
- Promoting an economically and environmentally sustainable future
- Constant and ever-present mindfulness to improve our services to ensure a high quality of life for our residents
TRANSMITTAL
This Fiscal Year (FY) 2023 Budget and accompanying message has been prepared and is presented as the spending plan for the Board of Commissioners consideration in accordance with the Code of Ordinance(s) of the Township of Abington and Laws of the Commonwealth; specifically, the First-Class Township Code and related laws, and reflects, as nearly as possible, the estimated revenues and expenditures for the Township. This FY 2023 Budget as presented is a balanced budget with general fund revenues and expenditures in balance.
The Township is within the timelines prescribed by the First-Class Township Code for budget adoption, as formal adoption of the FY 2023 Proposed Budget is tentatively scheduled for the public meeting on November 10, 2022, with final and official adoption of the FY 2023 Budget no later than December 31, 2022. The tentative date set for final adoption is Thursday, December 8, 2022.
Respectfully submitted,
Richard J. Manfredi,
Township Manager
INTRODUCTION
The Fiscal Year (FY) 2023 Township Budget as presented holds the current total property tax rate at 5.922 mills with general fund revenues and expenditures balanced, and wastewater and refuse fees remaining unchanged. The 2023 fiscal plan achieves establishing fund equity at an unrestricted fund balance reserve of three months of operating expenditures, a general fund balance available after reserve that meets a Generally Accepted Accounting Principle (GAAP) standard and exceeds the minimum two (2) month Government Finance Officers Association (GFOA) best practice.
The total FY 2023 budget for all operating and capital funds is $70,564,238; with the general fund totaling $44,022,702, all other operating funds totaling $19,603,104, and the general fund permanent improvement capital fund totaling $3,599,432. FY 2023 general fund expenditures are greater than FY 2022 by $1,424,712 and all other operating funds are less than 2022 by $974,403. FY 2023 General fund revenues are greater than FY 2022 by $2,316,445. The Township has been granted funds under the American Rescue Plan Act of 2021 (ARPA) and proposes utilizing the funds received to implement the Township Strategic Plan, continue to support key projects that began in FY 2022, and continue funding certain personnel costs to return to pre-pandemic levels of service delivery.
Returning the Township's fiscal condition to meeting the three-month expenditure reserve minimum as set in the Township fund balance policy, returning departmental operations to pre Covid-19 service levels, and establishing a foundation by which a sound fiscal policy can be built upon, are goals that were established in 2022 and are accomplished with this Proposed Preliminary Budget. Achieving these goals will allow for a synergistic interaction of the multiple plans being developed, the confluence of which will complement and inform the Township's strategic plan and transformational approach to service delivery.
In 2022, the Township implemented an integrated approach to governance that aligns policy and operational service delivery systems through a strategic planning process. The Board of Commissioners public meetings and structured committee system provides systemic change and improves citizen engagement and transparency, while focusing on assuring services are delivered as planned and expected. The Strategic Plan Committee will be the check and balance for assuring the strategic plan is implemented and policy decision-making is sound. Infrastructure, Finance, and Comprehensive Plan Consistency Committees will ensure cross-functional alignment within the identified and specific scopes of their committees.
The Board of Commissioners have set an aggressive agenda to, through the Office of the Township Manager, responsibly move the Township forward and are working through a number of initiatives to enhance the quality of life for all residents and visitors to the Township.
As we work through finalizing the Township Strategic Plan and synchronize all plans that will be completed in calendar year 2023, the efforts we have made to reduce costs and improve efficiencies in all operations will allow us to develop work plans that can deliver material outcomes to the residents and public. The Board initiatives include an evolving Strategic Plan, the Comprehensive Plan Update: Vision 2035, a Stormwater Management Study and Plan, a Recreation, Parks and Open Space Plan, including a state-of-the art Inclusive Park, and a Roadway (Pavement) Management Plan.
The Strategic Plan
The Strategic Plan process began in 2018 and continues to evolve with post-pandemic planning. At their June 9, 2022 meeting, the Board of Commissioners accepted Raftelis’s proposal for strategic planning.
As outlined in their March 18, 2022 proposal, Raftelis's approach to strategic planning is comprehensive and includes data analysis, working sessions, public meetings, and the development of a strategic plan and implementation templates for each identified goal area.
In 2023 and beyond, the Strategic Plan will serve as the basis for all decision-making and capital planning efforts. The Strategic Plan will be refined annually to account for progress in each identified focus area and to remain relevant and consistent with the vision of the Board of Commissioners and the community as a whole.
Comprehensive Plan Update, Vision 2035
In May 2019, the Board of Commissioners approved the update to the Township's Comprehensive Plan. The Township has contracted with the Montgomery County Planning Commission (MCPC) for these efforts, who the Township has had a planning assistance agreement with for the past 11 years.
The mission of the Comprehensive Plan is to define the goals and objectives for the future of the Township and chart the path through which these goals can be realized. Comprehensive planning is critical to understanding community assets and challenges; responding to changing demographics; maintaining fiscal balance and project priorities, and planning for short-term and long-term goals.
The Township established a Comprehensive Plan Committee comprised of experts in various fields to develop a strategy to complete the Plan. The Board of Commissioners in 2023 will consider the recommendations of the Comprehensive Plan Development Team and Comprehensive Plan Consistency Committee, which will become a living and breathing document through the Comprehensive Plan Consistency Committee.
Stormwater Management Study and Plan
The purpose of the Stormwater Management Study and Plan is to identify stormwater responsibilities and gaps, identify areas of focus, prioritize planning and improvements, and evaluate funding and implementation options, including stormwater user fees to address flooding and MS-4 related requirements.
In April 2019, the Abington Board of Commissioners awarded the contract to prepare the Township's Comprehensive Stormwater Management Plan in the amount of $146,300 to Wood Environment and Infrastructure Solutions, Inc. of Blue Bell, PA. Wood will present the Stormwater Management Plan in two parts: (1) the two drainage area studies, providing information on details of the hydraulic and hydrologic modeling, alternatives evaluated, and the preferred alternative identifies by staff; and (2) the current and future operational evaluations including a 10-year cost assessment along with funding options. The Stormwater Management Plan will be provided upon completion in late 2022. In 2023, the Board will consider the results of the Stormwater Management Study and Plan and evaluate the various means and methods by which recommendations can be funded.
Recreation, Park and Open Space Plan
At the August 12, 2021 Board of Commissioners meeting, the Board established a Recreation, Park and Open Space Committee. At the July 14, 2022, Board of Commissioners meeting, the Board approved awarding the proposal for planning consulting services for the creation of a Recreation, Park, and Open Space Plan to Simone Collins, Inc. Landscape Architecture.
The Comprehensive Recreation, Park, and Open Space Plan and associated process shall follow the Commonwealth of Pennsylvania’s Department of Conservation and Natural Resources’s COMPREHENSIVE RECREATION, PARK, AND OPEN SPACE PLAN Guidelines and Example Scope of Work which includes a narrative report that provides an inventory and analysis of open space and facilities, review and recommendation for maintenance, recreation program and services, financing, recommendations with cost estimates, and plan implementation.
The Recreation, Park and Open Space Plan is expected to go before the Board of Commissioners in July 2023 and will provide a basis for park and recreation improvements through FY 2023 and beyond.
Economic Redevelopment Study
At the July 14, 2022 Board of Commissioners meeting, the Board of Commissioners approved engaging Delta Development Group, Inc. as the consultant for a feasibility study for potential economic redevelopment in the Township.
As outlined in their June 2, 2022 proposal, Delta Development Inc.'s approach will include a thorough analysis of demographic, socioeconomic, and market demand/industry analysis, study review, visioning sessions, preparation of a feasibility study, and evaluation of public funding opportunities. The feasibility study will advise and guide the Board of Commissioners with appropriate next steps and alternatives; and assist the Township Manager with developing strategies for future investment, initiatives and policy recommendations.
Inclusive Park
At the July 14, 2022 Board of Commissioners meeting, the Board approved awarding the proposal for consulting services for planning and design services needed for the construction of an inclusive park and playground to Engineering & Land Planning Associates, Inc. This effort is being led by Abington community parents and will be the first of its kind in the Township.
An inclusive playground incorporates physical, cognitive, social, sensory, and communicative elements to enhance the play of children who have different abilities and removes the barriers that limit their experiences. Physical elements offer opportunities from engaging hands and fingers for fine motor skills to using the entire body for agility and balance. These elements are also designed to enhance coordination and improve endurance.
Cognitive elements present problem-solving that requires strategy to participate in successful play and benefits early childhood cognitive development. Social and communicative elements present scenarios for children to interact, exchange ideas and build relationships. The play environment allows verbal and non-verbal children to share their imaginations and creativity through cooperative play. Sensory elements include the sights, sounds, and feel of the playground. These elements are the connections between the children and the play equipment, and they engage and strengthen visual, auditory, and tactile senses.
This project kicked off in July 2022 and is expected to be ready for construction in July 2023. Project costs are expected to exceed $1,000,000. Funding has been allocated through American Rescue Plan Act funding, and other funding options such as grants and donations are being explored.
Roadway (Pavement) Management Plan
The Township maintains over 275 miles of roadway and has one of the largest in-house paving programs in our region. The plan, being prepared by Pennoni Associates, will provide the Township with a roadmap for the next five years of our paving program using data collected by the Public Works Department. It is expected to be complete in late 2022 and will continue to be refined by the Public Works Department into the future.
In addition to the ongoing planning efforts above, the Township continues to progress on its deployment of the OpenGov system and enabling online submission and payment of permits. Deferred in 2022, the township will renew its evaluation of all permit and fee structures for how we charge for governmental services. Furthermore, we continue to look for new ways to engage with our community and enhance communications through our various media platforms and tools and have made substantial progress on the integration of geographic information systems into departmental workflows that have and will enhance our services.
In closing, the Office of the Township Manager's focus on effectively managing communications, expanding strategic planning efforts across all functions, effectively delivering services through all departments, and continuing the goal of developing a model where sound public policy is achieved will continue and be paramount.
FUND RECAPITULATION
CHART BM1: FY 2023 MAJOR COST CENTERS
TABLE BM1: SUMMARY OF OPERATING AND CAPITAL FUNDS
GENERAL FUND SUMMARY
The chief and base operating fund of the Township is the general fund, and its sources of revenue provide the financial resources for core services, including administration, police, public works, engineering, parks, library, and code inspection services and property maintenance. The general fund, in FY 2023, continues to be the primary method for accounting for general operating expenditures, with real property and business, mercantile and other Act 511 taxes continuing to represent sixty percent (60%) of the sources of revenue. The 2023 general fund property tax levy is projected to generate $17,313,702 in income, the earned income tax is projected to generate $9,250,000 in income, and the mercantile and business privilege taxes are projected to generate $6,750,000 in income. These stated income levels are greater than 2022 levels.
TABLE BM2: REVENUE AND EXPENDITURE RECAPITULATION
REAL ESTATE TAX
As aforementioned and depicted in the revenue and expenditure chart above, real estate taxes are the primary source of income that funds Township operations. The real estate values, millage rates, and revenues generated from those values and rates, as well as the cost to the typical Township property owner are depicted in the tables and charts below.
Chart BM 2 illustrates the actual dollars of the total tax bill that goes to the School District, The Township, Montgomery County and Montgomery County Community college.
TABLE BM3: THE VALUE OF ONE MILL
CHART BM2: MILLAGE TAX RATE BY TAX AUTHORITY
CHART BM3: REVENUES VS. EXPENSES FROM 2014 - 2023
TABLE BM4: MILLAGE TAX RATE AND REVENUES BY LEVY
THE TYPICAL TOWNSHIP TAX BILL
The collection rate is projected at 98% for 2023.
A property owner will pay $1.00 in property tax for every $1,000 of the taxable appraised value of the property.
If the Montgomery County assessed value for an Abington Township homeowner’s property were set at $150,000, then one mill of taxes would equal $150.00. At the proposed Township tax rate of 5.922, the average Township taxpayer will pay $888.27 in Township property taxes; an increase of $0 from 2022.
It is important to note that this is the Township property tax only and does not include trash and sewer fees. The trash and sewer fees will once again not increase in 2023.
COMPLEMENT
This preliminary proposed budget has at its foundation the guiding principle that the citizens, visitors and people who work in Abington Township will continue to receive the historically excellent level of police, fire and general services. The 2022 Township of Abington complement is 284 full-time employees. It is important to note that five positions are being funded through the American Rescue Plan Act (ARPA) funds. The Township will continue to utilize 212 part-time and per diem employees to deliver services. Recognizing and effectively managing the personal service costs of the people who are at the core of the services we provide is an obvious requirement in achieving fiscal sustainability. This proposed budget accomplishes this.