JIM THORPE

2012 Budget Proposal

Budget Presentation Assumptions

As with last years presentation, all of the items discussed have been included in the projections

All of the Budget Summaries depicted are actual budget sheets and show fund balance, total debt, total investments, balance, and balance with fund balance.

General Fund Changes

Three important changes have been made in the 2012 budget line items.

1) Expanding the wage line items more completely to capture Supervisor wages and overtime

2) Recognize the Tax Anticipation Loan and repayment from Sanitation

3) Spreading all Administrative salaries across all fund centers, including enterprise funds

General Fund Summary

Although revenue is reduced, a more accurate picture is created by capturing actual expenses

Grant fund proceeds from Slaughterhouse Creek skewed the revenue in 2011

Average Jim Thorpe residential assessment is $50,000

Fund Balance increased from $228K in 2010 to $345K projected at the end of 2011

General Fund Summary

REVENUES 2012 EXPENSES 2012

Beginning Fund Balance: 345,000$ 01.400 General Govt 317,866$

01.301 Real Estate Tax 673,740$ 01.409 Building/Plant 129,059$

01.305 Occupation Taxes 55,300$ 01.410 Police Dept 726,185$

01.310 511 Taxes 543,000$ 01.415 Emergency Services 80,343$

01.321 License/Permits 83,000$ 01.430 Public Service Expenses 519,103$

01.331 Fines/Forfeits 20,000$ 01.480 Misc. Expense 27,862$

01.341 Interest/Rents 2,000$ TOTAL 1,800,418$

01.351 Operating Grants 87,000$

01.352 Federal Shared Revenues 29,800$

01.355 State Shared Revenue 4,000$ 01.362 Dept. Earnings 113,340$

01.380 Other Revenue 37,000$ 01.389 Unclassified Operating Revenue 152,270$

Total 1,800,450$

Total Indebtedness $70,000 Revenue 1,800,450$ Total Debt Service 12,135$ Expenses 1,800,418$ Total Investments -$ Balance $31

With Fund Balance $345,031

BOROUGH OF JIM THORPE2012 GENERAL FUND BUDGET

SUMMARY OF REVENUE AND EXPENSE CATEGORIES

Water/Sewer Employee

In order to begin a program of maintenance of both our Water and Sewer systems, we have included an additional “floater” employee to be cost shared between the water and sewer funds. This employee will assist Vince when water pipe is being installed and Eddie when I & I testing is needed.

Both budgets already reflect this addition.

Water Fund Improvements

The item most significantly effecting the water fund budget is the debt service cost for capital improvements.

Refinancing existing debt through MCTC as well as the maturity of one of the PennVest loans reduced debt service by over $80K

Water Bill Average

The average residential user consumes approximately 4,000 gal. of water per month.

Based upon this average residential user, cost for water will remain $48.87 per month.

Water Fund Summary

REVENUES 2012 EXPENSES 2012

Beginning Fund Balance: 149,000$

Total Income 1,162,209$ Total Expenses 1,155,198$

TOTAL 1,162,209$ TOTAL 1,155,198$

Total Indebtedness 7,381,541$ Revenue 1,162,209$ Total Debt Service 436,715$ Expenses 1,155,198$ Total Investments 1,800$ Balance $7,011

With Fund Balance $156,011

BOROUGH OF JIM THORPE2012 WATER FUND BUDGET

SUMMARY OF REVENUE AND EXPENSE CATEGORIES

Sewer Fund Changes

The largest cost in the sewer fund budget remains improving, or maintaining performance at a 45 year old facility.

Coupled with this are additional fund allocations relating to permit compliance and I&I investigation and elimination.

Sewer Bill

In order to utilize the new technology in meter reading we have installed, the sewer budget reflects a transition from flat rate billing to usage geared billing, driven by water usage.

Sewer Fund Summary

Currently, the Borough uses a fixed rate system for billing most customers. In completing the 2011 budget it became apparent that the rate structure was flawed creating disparate treatment of various uses.

The 2012 proposed sewer budget suggests sewer bills be calculated at 100% of the water bill.

Sewer Fund Summary

What does that mean for the average Borough resident?

The following slides suggest what the proposed changes will represent to the minimum water user and the average user.

Minimum Sewer User

Current Proposed

Water Cost $21.69 $21.69Sewer Cost $35.20 $21.69Garbage Cost $25.00 $25.00

Total Monthly Bill $81.89 $68.38

Minimum UserLess than 1,000 gallons per month

Average Sewer User

Current Proposed

Water Cost $48.87 $48.87Sewer Cost $35.20 $48.87Garbage Cost $25.00 $25.00

Total Monthly Bill $109.07 $122.74

Average User4,000 gallons per month

Sewer Fund Summary

REVENUES 2012 EXPENSES 2012

Beginning Fund Balance: 475,000$

Total Income 1,099,217$ Total Expenses 1,052,606$

TOTAL 1,574,217$ TOTAL 1,052,606$

Total Indebtedness 3,570,445$ Revenue 1,574,217$ Total Debt Service 310,566$ Expenses 1,052,606$ Total Investments 565,532$ Balance $46,611

With Fund Balance $521,611

2012 SEWER FUND BUDGET SUMMARY OF REVENUE AND EXPENSE CATEGORIES

BOROUGH OF JIM THORPE

Sewer Fund Summary

As you are aware, we are presently wrapping up a hydraulic study of the sewer treatment plant to facilitate improvements and automation to continue to meet our permit levels.

This study will result in the outlay of at least $90K that we know of and perhaps another $250 potentially.

We will be scheduling a meeting for the Engineer to outline his findings in the near future.

Sanitation Fund Summary

Clearly, the Sanitation Fund is very well capitalized. There is no need to change any of the rate structure since the landfill closure is completed.

All that is needed here is to insure that the proceeds cover the cost of third party solid waste hauling.

Sanitation Fund Summary

REVENUES 2012 EXPENSES 2012

Beginning Fund Balance: 372,000$

Total Income 626,751$ Total Expenses 602,915$

TOTAL 998,751$ TOTAL 602,915$

Total Indebtedness -$ Revenue 998,751$ Total Debt Service -$ Expenses 602,915$ Total Investments 462,866$ Balance $23,836.0

With Fund Balance $395,836.0

BOROUGH OF JIM THORPE2012 SANITATION FUND BUDGET

SUMMARY OF REVENUE AND EXPENSE CATEGORIES

Memorial Hall Fund Summary

The Budget for Memorial Hall for 2011 was new, conceptually. Although improved, performance at the hall did not rise to the level of self sustainability, incremental improvement did occur.

This was due to better cost containment and identification methods as well as weekday events, such as Zumba.

Memorial Hall Subsidy

The 2010 subsidy of the hall was approximately $65,000.

The 2011 subsidy of the hall was approximately $40,000.

Memorial Hall Subsidy

Currently, the Hall is in desperate need of an HVAC upgrade.

This upgrade will involve more efficient equipment as well as the ability to more effectively “zone” the heating and cooling.

Potential Cost: $75,000 We are hoping to procure grant funding to

assist with this upgrade.

Memorial Hall Fund Summary

REVENUES 2012 EXPENSES 2012

Beginning Fund Balance: 15,000$ 452.100 Payroll Expenses 54,426$

367.100 Banquet Income 142,500$ 452.190 Insurance 2,000$

367.300 Skating & Pavilion Income 14,675$ 452.200 Supplies 35,200$

367.400 Other Event Income 17,300$ 452.210 Sales Tax 7,000$

389.000 Miscelaneous Income 1,700$ 452.239 Sec/Misc 300$

452.300 Utilities 32,100$

452.370 Repairs 5,056$

TOTAL 191,175$ 452.400 License/Permits -$

452.600 Equip/Reimb. 700$

471.000 Debt Charges 38,000$

TOTAL 174,782$

Total Indebtedness 457,596$ Revenue 191,175$ Total Debt Service 38,000$ Expenses 174,782$ Total Investments Balance $1,393

With Fund Balance $16,393

BOROUGH OF JIM THORPE2012 MEMORIAL HALL FUND BUDGET

SUMMARY OF REVENUE AND EXPENSE CATEGORIES

Liquid Fuel Fund Summary

Liquid fuels funds will be utilized to pay the debt service on the Bobcat as well as repair allocated streets and winter material. Although not my preference, we may utilize these funds to supplement winter maintenance. All expenses incurred are allowable under liquid fuel fund guidelines and have been discussed with the State fund administrator.

Liquid Fuel Fund Summary

REVENUES EXPENSESBeginning Cash Balance $40,000.00As of January 1, 2011

341.1 Interest $275.00 430.2 Street Supplies 2,500.00$ 355.1 Intergovrnmental $106,620.00 430.6 Capital Improvements 35,000.00$

431.3 Storm Drains 1,000.00$ 432.2 Snow Removal Supplies 35,000.00$ 433.2 Street Signs 4,945.00$ 437.3 Repair Equipment 3,000.00$ 438.3 Street Maintenance 20,000.00$ 471.1 Equipment Purchase 11,426.00$

TOTAL $146,895.00 112,871.00$

BOROUGH OF JIM THORPE2012 LIQUID FUEL FUND BUDGET

SUMMARY OF REVENUE AND EXPENSE CATEGORIES

What Does All This Mean

Provided the initiatives you have suggested are implemented, what will that mean to the residents?

Cost Increase to Residents

Average residential household is has a $50,000 assessed value and uses 4,000 gallons of water per month.

This means: Current Proposed

Real Estate Taxes $400.00 $400.00 Water Bill $586.44 $586.44 Sewer Bill $422.40 $586.44 Garbage Bill $300.00 $300.00

$1708.84 $1872.88

Annual Increase in cost of $164.04

What’s Next

In order to put the initiatives in the budget in place we will need to amend our ordinances.

Those changes are:Update our Water Rate Structure

Configure Sewer Rates to match Water

Amend Rules and Regulations Resolution to establish various fees associated with shut-offs and service calls.

Asset Management

In the next few weeks we will be having approximately $700K in CDs mature at MCTC. I had hoped to locate an investment vehicle that would provide us a better return. Unfortunately, the Borough Code does not provide flexibility to allow much beyond CD investing of this money. We will continue to monitor interest rates to maximize return.

Conclusion Information utilized in the development of this budget included

historical Quickbooks data, Inhance data, spreadsheets developed by Mia Sebelin, reports developed by Cindy Kmetz, anecdotal information contributed by Louise McClafferty, and input by the Department Supervisors.

The summaries included herein are interactive and can be changed to reflect Council’s wishes.

I would be happy to answer any questions you may have about this presentation and the figures contained herein.

I have copies of this presentation for each of you this evening and would be more that happy to provide you with electronic copies of the spreadsheet.