November 8, 2019 TOWNSHIP of LOWER MERION

Home , 1600s (decade)

2020 Proposed Budget

Township of

Lower Merion

Montgomery County,

Pennsylvania

November 8, 2019 TOWNSHIP OF LOWER MERION

MONTGOMERY COUNTY, PENNSYLVANIA

2020 BUDGET

Daniel S. Bernheim, Esq. President, Board of Commissioners

Ernie 8. McNeely Township Manager

Commissioner C. Brian McGuire Chairperson, Finance Committee ®

GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presen ta ti on Award

PRESENTED TO Township of Lower Merion Pennsylvania

For the Fiscal Year Beginning January 1, 2019

Executive Director

The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Presentation to the Township of Lower Merion for its annual budget for the fiscal year beginning 20 I 9 - the fourteenth consecutive award winning year.

In order to receive this award, a governmental unit must publish a budget document tr1at meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device.

The award is valid for a period of one year only. The Township believes its current budget continues to conform to program requirements. and is submitting it to GFOA to determine its eligibility for another award. TOWNSHIP OF LOWER MERION

BOARD OF COMMISSIONERS

MISSION STATEMENT

It shall be the primary m1ss1on of the Lower Merion Township Board of Commissioners (Board) to continually provide the appropriate organizational oversight and policy direction necessary to maintain and enhance the highest possible level of public service delivery and quality of life for the Lower Merion community. This shall be accomplished by working diligently with the Township Manager, appointed boards and commissions, all other representatives of the Township (both elected and appointed), other governmental organizations, and by maintaining an ongoing liaison with the Township's many civic associations to ensure that constituent concerns and issues are addressed in a prompt and efficient manner.

The Township's overall financial position shall at all times be carefully monitored by the Board. It shall ensure that all financial issues, subsequent Board decisions, and the ramifications thereof can be properly programmed into the Township's Annual Operating and Capital Budget in addition to the Township's long-range financial planning program. The maintenance of the Township's physical infrastructure and an adequate fund balance to meet extraordinary circumstances, as defined by the Board's formal fiscal policy, shall at all times be at the forefront of fiscal determinations.

This mission of the Board shall be accomplished outside the realm of partisan political concerns and through a commitment toward mutual cooperation in order that the best interests of the community and the maintenance of a quality of life that is second to none can be realized. 2020 BUDGET BOARD OF COMMISSIONERS 2019

OFFICERS

President - Daniel S. Bernheim, Esq. (Gladwyne, Merion Park & Penn Valley - Ward No. 1)

Vice President - C. Brian McGuire (Cynwyd & Merion Park - Ward No. 13)

MEMBERS

Joshua L. Grimes, Esq. (Gladwyne & Penn Valley- Ward No. 2)

Michael F. McKeon, Esq. (Belmont Hills, Penn Valley & Bala Cynwyd - Ward No. 3)

Anthony C. Stevenson, Ed. D. (Ardmore & Haverford - Ward No. 4)

Ray A Courtney (North Ardmore & Wynnewood-Ward No. 5)

Andrew S. Gavrin (Rosemont & Villanova-Ward No. 6)

Elizabeth S. Rogan (Wynnewood-Ward No. 7)

Anna Durbin (South Wynnewood & East Ardmore - Ward No. 8)

George T. Manos, AIA (Bala Cynwyd - Ward No. 9)

V. Scott Zelov (Haverford & Bryn Mawr - Ward No. 1OJ

Tiffany O'Neill (Bryn Mawr, Gladwyne & Rosemont - Ward No. 11)

Todd M. Sinai (Merion - Ward No. 12)

Rick Churchill (Penn Wynne & Wynnewood - Ward No. 14) 2020 BUDGET EXECUTIVE OFFICIALS AND STAFF

BOARD APPOINTED OFFICIALS

Ernie B. McNeely, Township Manager

Samuel T. Adenbaum, Treasurer (Elected Official}

Gilbert P. High, Jr., Esq., Township Solicitor

Edward P. Pluciennik, Township Engineer

Jody L. Kelley, Township Secretary

TOWNSHIP MANAGER APPOINTED STAFF

Robert E. Duncan, Assistant Township Manager

Christopher Leswing, Director of Building & Planning

Eric M. Traub, Chief Financial Officer

Charles J. McGaNey, Chief Fire Officer/Fire Marshal

Beth Ulick, Director of Human Resources

James E. Weiman, Chief Technology Officer

David Belanger, Director of Libraries

Thomas D. Pintande, Director of Parking SeNices

Donna L. Heller, Director of Parks & Recreation

Michael J. McGrath, Superintendent of Police

Thomas J. Walsh, Public Information Officer

Paul A. McElhaney, Director of Public Works TOWNSHIP OF LOWER MERION

CITIZENS OF LOWER MERION TOWNSHIP

TOWNSHIP TREASURER

BOARD OF COMMISSIONERS

TOWNSHIP TOWNSHIP TOWNSHIP TOWNSHIP COMMISSIONS SOLICITOR SECRETARY MANAGER ENGINEER AND BOARDS*

ASSISTANT TOWNSHIP MANAGER

BUILDING& FINANCE PLANNING

INFORMATION FIRE TECHNOLOGY

LIBRARIES HUMAN RESOURCES

PARKS& POLICE RECREATION

PARKING PUBLIC SERVICES INFORMATION *COMMISSIONS AND BOARDS

BID OPENING COMMITTEE PUBLIC CABLE TELEVISION ADVISORY COMMITTEE CIVIL SERVICE COMMISSION WORKS ELECTRICAL EXAMINING BOARD EMPLOYEE RETIREMENT PLAN ENVIRONMENTAL ADVISORY COUNCIL HEALTH ADVISORY COUNCIL HISTORICAL ARCHITECTURAL REVIEW BOARD HISTORICAL COMMISSION HUMAN RELATIONS COMMISSION LOWER MERION LIBRARY SYSTEM LOWER MERION POLICE PENSION FUND PERSONNEL REVIEW BOARD PLANNING COMMISSION SHADE TREE COMMISION UNIFORM CONSTRUCTION CODE APPEALS BOARD VACANCY BOARD ZONING HEARING BOARD 2020 BUDGET EXPENDITURE SUMMARY ALL BUDGETED FUNDS

Budgeted Expenditures

General Fund $ 70,624,43.3

Highway Aid Fund 1,760,000

Special Revenue Fund 4,378,607

Sinking Fund 12, 100,778

Capital Projects Fund 28,315,000

Sanitary Sewer Fund 8,730,625

Solid Waste Fund 7,562,252

Equipment 4,650,793

Subtotal 138, 122,488

Transfers Between Funds I 18,329,675)

Net Budgeted Expenditures 119,792,813

Net Budgeted Revenue 109,240,679

Net Change in Fund Balances ( 10,552, 134)

Budgeted 2020 Beginning Fund Balances 60,238,507

Budgeted 2020 Ending Fund Balances $ 49,686,373 2020 BUDGET HIGHLIGHTS

Key Dates

Distribution of Budget to the Board, Libraries, Website, and the Media: November 8, 2020.

Public Hearings: November 20 December 4

Budget Adoption: December 18

Personnel

Net Full-Time Equivalent (FTE} Positions will increase 3.8 FTE's from the 2019 Budget level of 470.2 to 474.0 in 2020. Refer to the Personnel Section of the Budget Message for more details.

Taxes and Fees

• The Real Estate Tax millage rate will remain unchanged for 2020 for the ninth consecutive year.

• The 2020 Budget does not anticipate a rate increase to the Sanitary Sewer Rental Fee. The Sanitary Sewer rental rate will be further reviewed before the official 2020 Sanitary Sewer rental rate is adopted by ordinance and billed in May 2020.

• In 2020, Solid Waste Fees are proposed to increase 8% compared to 2019, except for a 0% increase for the mini can. Proposed Solid Waste Fees for 2020 are: one mini can per week ($237), one container per week ($365}, two containers per week ($437} and $72 for each additional can. The Rear Yard Collection Fee for trash and recycling placed more than 5 feet from the curb line will increase to $249.

General Fund Budget Summary

2019 Estimated Actual:

• The 2019 Revenue is estimated at $69,885,250, an increase of $5,630,850 or 8.8% compared to the 2019 Budget.

• The 2019 Expenditures are estimated at $67,585,480, a decrease of $625,265 or 0.9% compared to the 20 19 Budget.

• The 2019 Estimated Actual revenues exceed expenditures by $2,299,770, compared to a budgeted deficit of $3, 956,345. 2020 Budget

• The 2019 ending fund balance {undesignated) is estimated at $23,450,002 or 34.8% of the 2019 Estimated Actual Expenditures.

• The 2020 Revenue is budgeted at $66,048,850, an increase of $1,794,450 or 2.8% compared to the 20 19 Budget.

• The 2020 Expenditures are budgeted at $70,624,433, an increase of $2,413,688 or 3.5% compared to the 2019 Budget.

• The 2020 Budget expenditures exceed revenue by $4,575,583 requiring a planned budgeted drawdown of fund balance to balance operating revenue with expenditures.

• The 2020 Budget ending fund balance {undesignated) is estimated at $18,874,419 or 26.8% of the 2020 Budget Expenditures. 2020 BUDGET TABLE OF CONTENTS

BUDGET MESSAGE I READER'S GUIDE 35

FUND BUDGETS PAGE NO.

FINANCIAL POLICIES 43 FUND STRUCTURE 52 ALL FUNDS SUMMARY 54 REVENUE AND EXPENDITURE SUMMARY 55 GENERAL FUND 56 GENERAL FUND: REVENUE/EXPENDITURE/FUND BALANCE 57 GENERAL FUND: SOURCES OF REVENUE 58 GENERAL FUND REVENUE SUMMARY 59 GENERAL FUND REVENUE TRENDS AND ASSUMPTIONS 60 GENERAL FUND EXPENDITURES BY PROGRAM AREA 65 GENERAL FUND EXPENDITURE SUMMARY 66 EXPLANATION OF GENERAL FUND FUNCTIONAL AREAS 67 HIGHWAY AID FUND 68 SPECIAL REVENUE FUND 69 SINKING FUND 70 CAPITAL PROJECTS FUND 7 I SANITARY SEWER FUND 72 SOLID WASTE FUND 73 EQUIPMENT FUND 74

DEPARTMENTAL BUDGETS PAGE NO.

DEPARTMENT BUDGETS 75 BOARD OF COMMISSIONERS 77 TOWNSHIP MANAGER'S OFFICE 83 OFFICE OF PUBLIC INFORMATION 91 LEGAL OFFICE I 0 I TREASURER'S OFFICE 105 FINANCE 109 INFORMATION TECHNOLOGY 12 I HUMAN RESOURCES 129 DEPARTMENTAL BUDGETS (CONTINUED! PAGE NO.

PARKING SERVICES 137 POLICE 145 FIRE 157 BUILDING & PLANNING 167 TOWNSHIP ENGINEER 179 PUBLIC WORKS COMBINED BUDGET 183 PUBLIC WORKS -ADMINISTRATION 185 PUBLIC WORKS- HIGHWAY DIVISION 193 PUBLIC WORKS - ELECTRICAL DIVISION 201 PUBLIC WORKS - SHADE TREE DIVISION 209 PUBLIC WORKS - FACILITIES MAINTENANCE DIVISION 217 PUBLIC WORKS - FLEET & EQUIPMENT MAINTENANCE DIVISION 225 PUBLIC WORKS - SANITARY SEWER DIVISION 233 PUBLIC WORKS - REFUSE DIVISION 241 LIBRARIES 249 PARKS & RECREATION 257 NON-DEPARTMENTAL 267 HIGHWAY AID 271 CAPITAL PROJECTS 275 SINKING FUND 289

SUPPLEMENTAL INFORMATION PAGE NO.

FIRST CLASS TOWNSHIP TAXES AND RATE LIMITS 297 NUMBER OF TOWNSHIP EMPLOYEES OVER TIME 298 TOWNSHIP EMPLOYEES BY SERVICE AREA 299 TOWNSHIP EMPLOYEE BENEFITS 300 EMPLOYEE BENEFITS ALLOCATION 301 SCHEDULE OF OTHER COMPENSATION 302 ASSESSMENT - MILLAGE - C.P.l. HISTORY 303 TOWNSHIP REAL ESTATE DEMOGRAPHICS 304 TOWNSHIP REAL ESTATE BY LAND USE 305 ASSESSED VALUE AND NET BONDED DEBT TO PER CAPITA 306 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE 307 PROPERTY TOWNSHIP'S LARGEST TAXPAYERS 308 TOWNSHIP FACT SHEET 309 TOWNSHIP WARD MAP 310 GLOSSARY OF KEY TERMS 3 I 1 1 2 3 4 5 6 Unemployment Rates 2014-2019

9.0% ------.

8.0% ------

7.0% ------

5.0% ______i ______4.0°/co ------..,~---~---~------~~------••-...---.,. ------;;---~---:--:---~-- -:---:- ~ 3.0% ------==-- -·------imHmHHH

2.0% ------~~~~~~~~~~~------' 2014 2015 2016 2017 2018 2019 - us - PA Philly MSA ....._ County ....._Lower Merion Note: Data is for month of August. 2019 is Preliminary Data

Overall employment in Lower Merion, as measured by the Bureau of Labor Statistics, has increased annually since 2011 and increased by another 2.0% in 2019 (August). These results are largely in line with Montgomery County and the metropolitan area.

The demand and prices for homes in Lower Merion is consistently strong. In 2019, the Common Level Ratio, calculated for all of Montgomery County was 49.3 compared to 51.0 in 2018. The ratio is a blend of real estate sales for the entire County, a decrease in the ratio indicates an increase in market value based upon county-wide real estate sales.

Short-term interest rates are currently very low historically speaking and the same can be said for long-term interest rates. The 10-year Treasury Bond yield on October 1, 2019 was 1.6%, half of the 3.2% it was one year prior. The low interest rate environment has driven down the current conventional 30-year mortgage (national average) interest rate which stood at 3.8% in October 2019 compared to 4.9% at the same time last year. Lower mortgage rates could be a factor that positively impacts both the number and price of home sales within the Township.

The local consumer price index (Philadelphia Regional Urban Wage Earners and Clerical Workers) showed an annual increase of 2. 1% as of August 2019, which is an increase from 1.5% the previous two years.

The Township, which is in the heart of the Philadelphia metropolitan area, generates economic vitality from its service, retail and financial sectors. These sectors overall have grown recently, and the outlook appears stable with some growth in 2020 and beyond. The following key economic trends will directly impact the Township:

National Trends:

• Real GDP, which is the output of goods and services produced by labor and property located in the United States, will slow but should continue to increase modestly.

• National unemployment may fluctuate but will remain at a historically low level.

• New housing starts reported in September 2019 w ere 3.6% higher than September 2018 according to the US Census Bureau. Nationally the housing market has had several positive years partially attributable to historically low mortgage rates. With mortgage rates recently declining back below 4% this may positively impact the health of the housing market.

7 8 Delaware County municipalities. In Montgomery County, only Lower Merion, Upper Merion, Narberth and Jenkintown currently do not assess a municipal resident EIT. School districts can also implement an EIT; however, the Lower Merion School District has opted not to implement an EIT. Obviously, implementation of the EIT would result in a redistribution of the Township's tax burden. The Board has not expressed any interest in pursuing this option. Other taxes available to the Township including the per capita tax, sign tax, amusement tax and mechanical device tax, would not raise significant revenue and carry significant collection costs.

THE TOWNSHIP'S RET & TAX BURDEN

Historically, increases in the Township's RET millage rate have been modest. Since 2009, the Township's millage rate has increased a total of 14%; outpaced by both the County (43%) and School District (37%) millage rate increases. Given the Township's modest increases to the RET millage rate, non-RET revenue sources (such as business taxes, building permits, etc.) have bolstered the Township's revenue base over the years, thus reducing the relative percentage of overall revenue the Township RET generates.

A single-family residential detached home in Lower Merion Township, with the 2019 average real estate assessment of $356,000, would pay $13,332 in annual real estate taxes: $1,492 (Township millage of 4. 19), $ 1,370 (County millage of 3.849) and $10,470 (School District 2019-2020 millage of 29.4088).

2019 Real School District 78.5% Estate Taxes

Housing values are generally quite high in Lower Merion Township. However, the actual combined (School, County and Township) RET millage rate for 2019 of 37.4478 is lower than many surrounding Townships, especially considering Lower Merion does not impose an EIT. Lower Merion's overall RET rate is driven by the Lower Merion School District and the overall RET rate is in the mid-range for Montgomery County municipalities.

FUND BALANCE - GENERAL FUND (GF}

The fund balance in the General Fund is the cumulative amount of money and other resources retained after expenditures and other liabilities have been paid and revenue has been recorded. Maintenance of an adequate fund balance is important because it provides a financial safety net in the event of emergencies or an economic downturn. Fund balance levels are also a major factor considered by bond rating agencies when evaluating the Township's credit.

The Township's GF Fund Balance Policy requires a minimum year-end undesignated fund balance of no less than 12% of the year's total GF operating expenditures to provide a funding source for

9 10 11 2. Business Privilege and Mercantile Taxes = $ 12,560,000: ( 19.0% of total GF revenue}

The business privilege and mercantile taxes are levied on the gross receipts of anyone doing business within the Township. Tax filings in 2019 for business tax revenue are based on gross receipts earned by businesses in 20 18. The 20 19 business tax revenue is projected to be $ 14.5 million, which would be an increase of approximately $2.4 million from 2018 levels. The increase is due to one-time tax payments, audit program revenue, rental property compliance program results, and overall growth in the business tax base. The business privilege and mercantile taxes are budgeted at S 12.6 million in 2020, a S 1.9 million decrease versus the 2019 estimate, mainly due to uncertainties as to whether certain business tax payments received in 2019 will recur in 2020. The Finance Department will continue its business tax audit program to ensure all business taxpayers are filing in accordance with the Township's ordinance and regulations.

Business & Mercantile Tax Receipts 2011 through 2020

16.0 14.0 VIc 12.0 ~ 10.0 ~ 8.0 .£ 6.0 Vl- 4.0 2.0 0.0 20 11 20 12 20 13 20 14 20 15 20 16 201 7 20 18 20 19 2020

Note: Township received one-time audit revenue of $6.9 million in 2011 and $2.5 million in 2012.

3. Licenses and Permits= $6,280,250: (9.5% of total GF revenue}

The licenses and permits revenue category primarily consist of building permit fees, recreation pool membership fees, alarm registration fees and cable television franchise fees. The 2019 estimate of $6.4 million is $80,000 or 1.3% higher than the 2018 revenues primarily due to the increased number of business and mercantile licenses collected due to the rental property compliance program. The Proposed 2020 Budget is projected at $6.3 million, S 140,000 lower than the 20 19 estimate mainly due to the one-time nature of many of the rental property compliance license fee payments.

Building and electrical permit fee revenue budgeted at $2.7 million in the Proposed 2020 Budget comprises 4 3% of the total license and permit revenues. In 2018, the number of building-related permits increased by 439 or I 0. I% to their highest level in the past five years due to various developments throughout the Township.

12 Township of Lower Merion Building Permits 2014 - 2018

Actual Actual Actual Actual Actual % Permit T e 20 14 20 1 5 20 16 201 7 20 18 Inc Dec Building Permits 1,851 1,955 2,064 1,888 1,907 1.0% Electrical Permits 1,212 1,271 1,210 1,119 1,364 21.9% HVAC Permits 477 525 545 598 577 -3.5%

Cable television franchise fees are charges (5%) levied on gross receipts of the Township's two providers, Verizon and Comcast, which offer cable television services to Township residents. These fees comprise 22% of the total license and permits revenues in the 2020 Budget. Franchise fee revenue declined in 20 18 and 2019 likely due to internet-based alternatives to traditional cable services. In the Proposed 2020 Budget, the Township anticipates the downward trend will continue with projected collections of$ 1.4 million or 1.8% less as compared to the 2019 estimate.

In 2020, the Township will consider increases to its various fees and rates, primarily in the areas of Building & Planning and Parks & Recreation. The fees and rates charged for licenses, permits and departmental services are generally intended to recover the Township's costs for providing the underlying services.

4. Real Estate Transfer Tax= $4,200,000: (6.4% of total GF revenue)

The Township's real estate market has improved in the last several years and this revenue stream has begun to approach its pre-2008 peak. The number of taxable real estate transactions through September 2019 (9 months) was 876, the lowest number compared to the same period since 2015. The 2019 estimate of $4.4 million is $285,000 or 6.9% higher than budgeted primarily due to the sale of two high value properties in 2019.

The Proposed 2020 Budget projects a decrease of $235,000 versus the 2019 estimate. Although the Township's ongoing construction projections anticipate new residential and commercial development in 2020, the projected decrease in transfer tax is due to the reduced likelihood of similar high value property sales in 2020.

Real Estate Transfer Tax Receipts 2011 through 2020 5.0 4.5 4.0 Vl c 3.5 .Q 3.0 ~ 2.5 ..,,..£ 2.0 1.5 1.0 0.5 0.0 20 I I 20 I 2 2013 20 I 4 20 I 5 20 I 6 20 I 7 20 18 20 19 2020

13 14 15 16 17 18 19 20 EQUIPMENT FUND

The Township's Equipment Fund (EF} is an internal service fund that accounts for the operating and maintenance costs of the Township's fleet and communications equipment - over 1,000 pieces of equipment. Costs include fuel, materials, maintenance and asset replacement (or depreciation) that are determined annually on a cost recovery basis. Township departments that use this equipment are assessed a "rental" charge, which reimburses the EF for these costs through interfund transfers. The asset replacement component of the rental charge is a current operating expense to gradually pay for the use of the asset during its useful life, thus providing funding for the future asset replacement. This recurring source of funding makes the EF self sufficient, requiring no additional financing to acquire replacement assets. The equipment is assigned to three main Township functions, the Sanitary Sewer Fund, Solid Waste Fund and all other funds (primarily the General Fund).

Since 20 IO and due to past budgetary challenges, only 50% of the otherwise planned amount for future replacements has been contributed by the GF to the EF. Sanitary Sewer and Solid Waste Fund contributions have remained at 100%. The cash and investment balances in the EF have fallen from $I 0. 7 million at the end of 2010, when the funding reductions began, to $ 5.4 million at the end of 20 18. While the EF balance has declined, current reserves are sufficient for 2020. Township staff will continue to monitor the EF in the future to ensure its financial viability.

The EF major revenues are interfund transfers from Township departments for communications equipment and vehicle rental charges. The 2020 rental charges include costs for fleet operations, fuel, maintenance, vehicle/equipment and communication equipment purchases across all funds and are budgeted at $4.5 million, an increase of nearly $294,000 or 7.0% compared to the 2019 Budget. This increase is mainly due to projected increases in the future costs of vehicle replacements that have far outpaced inflation.

The Proposed 2020 EF Expenditure Budget is $4.65 million, approximately $173,000 or 3.9% higher than the 2019 estimate. Outside of personnel related costs which represent 21. 1% of EF expenditures in 2020, one of the more volatile expenses is fuel. Gasoline and diesel fuel represent $560,000 ( 12.0%) of the total Proposed 2020 Budget. The Township has also experienced increased costs for maintenance as some of its larger trucks have aged out of their warranty periods. In addition, the Proposed 2020 Budget includes funding for a new truck lift and for new fuel system pumps which totals $ 140,000.

ALL FUNDS EXPENDITURE OVERVIEW

On an entity-wide basis, there are several expenditure categories that have a significant financial impact across all funds and merit further discussion. The following details are provided for these categories, their impact on the Proposed 2020 Budget and their influence on future budgets.

PERSONNEL

As a public-sector service provider, the Township's largest expenditure category is personnel related costs, which comprise 65.2% of the Proposed 2020 GF Budget.

The Township monitors its staffing levels closely to ensure that staffing and current service levels are properly aligned. From 20 I 1 to the Proposed 2020 Budget, the number of full time equivalent (FTEJ positions has dropped by 9.4.

21 Employee Staffing Levels 201 1-2020

- • - Ful~Time Employees - • - Part-Time Employees • Total FTEs 525

483.4 482.6 481.4 478.6 475.5 • 474.8 472.0 469.3 470.2 474.0 475 • •

422 422 421 420 425 418 416 ------·- 412 409 409 4 11

375

342 • 325_ 329.,___ 327__ 33.~ 325 319 31,_6 __3. l 5 ---· 3~-0 --3'~ ..'.--- · - · - ---

275 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

In 2020, the number of full-time employees is proposed to be increase by two positions. An additional mechanic is included within the Public Works Fleet Division to better deal with the challenge of the Township's extensive fleet and reduce outside vendor use. In addition, a Police Technology Specialist is included to assist with the increasing IT and technology demands across the Department. There are also changes in the Building and Planning Department where one part-time position has been restructured and the vacant Assistant Director of Economic & Community Development position is being transitioned to a new position based upon feedback from the Board about project needs of the Department. The Proposed 2020 Budget also includes some adjustments to part-time positions as well as increased part-time hours mainly in Libraries and Parks and Recreation, which partially accounts for the increase in overall FTEs.

Labor Contract Provisions:

The Township's existing contract with its Workers Association (WA) runs through December 31 , 2019. The WA includes 214 full-time non-uniformed positions and there are 69 non-union positions (including management). The Township is currently in negotiations with the WA. The Proposed 2020 Budget includes projections at the current wage levels for all non-FOP employees since negotiations are still ongoing. However, there is also a modest contingency in the salary and wages category to account for potential wage increases. Any additional costs resulting from a new WA contract beyond the budgeted contingency that are not offset by other contractual savings will further reduce the Township's major funds (primarily the General Fund, but also the Solid Waste Fund and Sanitary Sewer Fund) fund balance.

In 2017, the Township and Fraternal Order of Police (FOP) , which represents 128 police officers, approved a negotiated four-year contract (2017-2020). The contract includes annual wage increases of 3.75% and mandated that all FOP members transition to the same high deductible health plan structure as was implemented in the most recent WA contract. The contract also instituted changes to the police pension plan, modified pension funding responsibilities between the Township and the police officers and made other contractual changes.

22 23 24 25 3. Financial Forecasting - The Township remains in a desirable financial position as shown by its credit rating. The Township had its Triple-A bond credit rating, the highest rating attainable, reaffirmed by both Moody's and Standard & Poor's in 2019. Standard & Poor's has assessed the Township's financial management practices as "very strong" - the highest rating available. In order to sustain its financial position, the Township needs to be difigent about addressing its long-term financial projections.

In its most recent union contracts, the Township again made structural changes to employee healthcare costs which have restrained cost growth and returned healthcare dollars to the Township. Township staff will continue similar work in other areas to make positive structural changes to the Township's financial status. It will be incumbent upon the Township to build upon its current financial strength by taking actions to move towards a balanced budget that reflects the community's priorities and preserves the Township's long-term finances.

Aside from these larger efforts, there are several other issues that will have an impact on the future of Lower Merion.

I. Township's Pension Plans - Unlike many other municipal pension plans throughout Pennsylvania and nationwide, the Township's pension plans have required low employee pension contribution rates accompanied by minimal Township contributions. Lower Merion must remain conservative to ensure that its defined benefit pension plans are affordable for the Township and properly funded for all its employees.

2. Equipment Fund - The Equipment Fund (EFJ remains one of the Township's strongest fiscal assets. The EF remains adequately funded for the upcoming year (2020). However, given upcoming replacements for the Township's vehicles and equipment, it is imperative to sufficiently finance for future needs which may require an increased level of GF funding at some point among other financial options to ensure its long-term viability.

3. Other Post-Employment Benefits (OPEBI - The most recent actuarial study showed a net OPES liability of nearly $31 million. While the Township is only required to pay this liability on a "pay-as-you-go" basis, the Township must continue to manage healthcare costs effectively in order to control this growing, long-term liability.

4. Volunteer Fire Service- Recruitment, retention and modernization of the volunteer fire service remains a high priority. The volunteers at the six volunteer fire companies in the Township valiantly serve the community and save taxpayers millions of dollars per year in avoided personnel costs compared to a fully paid department. The Township remains committed to preserving and enhancing the volunteer portion of the fire service in Lower Merion.

MULTI-YEAR FINANCIAL FORECAST

Long range financial planning is a vital part of the Township's planning process. The Township continues its practice of closely monitoring revenues and expenditures. This includes a strong emphasis on long range financial planning and prudent fiscal management to enable the Township to meet financial challenges projected in the years ahead. One of the more important financial management practices is to provide the Board-and community-with semi-annual financial forecasts. The estimates contained in this Proposed 2020 Budget include General Fund estimates for the current year (2019), the budget for the upcoming year (2020) and the forecast for the three years (2021, 2022 and 2023) that follow. The financial forecast is a tool to identify and proactively plan to address emerging fiscal trends.

26 The updated financial forecast shows future costs projected to grow. Like most local governments in Pennsylvania that face increased costs and rely heavily on the real estate tax, the Township is projected to face a widening fiscal gap over the next several years. This is because annual assessment growth, which drives real estate taxes, is well-below annual GF cost growth. Deficit spending, or planned use of fund balance reserves, is forecast for 2020 at $4.6 million. If the projections are accurate, the Township's undesignated 2020 ending GF fund balance would be $18.9 million or 26.8% of 2020 expenditures, still above the GF fund balance policy goal.

The updated financial forecast reveals an increasing structural imbalance, growing from $4.6 million in 2020 to $9.0 million in 2023. Current forecast results show a fund balance still in accordance with the GF fund balance policy goal range through 2021. The following chart shows the Township's historical GF revenues and expenditures that provide the basis for much of the trend analysis to develop current budgetary estimates and the future forecast through 2023. The chart reveals the widening gap between projected GF revenues and projected GF expenditures during the forecast period absent actions to reduce spending or augment revenues.

General Fund Revenues & Expenditures 2014-2023

80.0

75.0 ------::A-..... -....------..... ,_.,, 70 .0 ------_____,, _,, _------"'c: ~ :il 65.0 ------,, ,Jt. ___ ------.,..5 .....

60.0

55.0

50.0 --...... --.----..-----..---,....--...... -- ...... - ...... --.--~ 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Actual Actual Actual Actual Actual Estimate Budget Forecast Forecast Forecast

__..,._ Revenues - • - Expenditures

The GF financial forecast shows the Township will need to address its structural budget issues to reduce the need for planned deficit spending and return to a more sustainable, balanced budget. While the current financial forecast shows a growing gap, it is also worth noting that the financial forecasts have improved over the past several years compared to previous forecast projections which have enabled the Township to keep real estate taxes at the same level since 2011.

General Fund Financial Forecast 2019 through 2023

2019 2020 2021 2022 2023 Estimated Budget Forecast Forecast Forecast Beginning Fund Balance (undesignated) $ 21.2 $ 23.5 $ 18.9 $ 13.0 $ 5.0 Revenues 69.9 66.0 66.2 66.2 66.8 Expenditures 67.6 70.6 72. I 74.2 75.8 Surplus/( Deficit) 2.3 (4.6) (5.9) (8.0) (9.0) Ending Fund Ba lance (undesignated) $ 23.5 $ 18.9 $ 13.0 $ 5.0 $ (4.0) Endinq FB as a% of Expenditures 34.8% 26.8% 18.0% 6.7% -5.3% Fund Balance Goal - Low End 15% 15% 15% 15% 15% Fund Balance Goal - Hiqh End 18% 18% 18% 18% 18%

27 General Fund Balance (Undesignated} as a % of Annual General Fund Expenditures 40% 34.8% 35% 30% - Lb.ov;o 25% - 18.0% 20% - I I 15% - -- 100/o - b . 1% 5% - I I 0% -5% I I -10% -5.3% 2019 2020 2021 2022 2023 Estimated Budget Forecast Forecast Forecast c::::::I GF Fund Balance - 15% FB 18% FB G F Fund Balance Policy Goal: 15%- 18%

CONCLUSION

The Township's financial position remains strong as shown by a Proposed 2020 Budget with no real estate tax increase for the ninth consecutive year.

Lower Merion Township continues to benefit from an involved citizenry and Board of Commissioners, a strong local economy and a Triple-A credit rating. To thrive, the Township must build upon this foundation and seek new opportunities to provide cost effective municipal services while continuing to be responsive to the priorities and needs of the community. The Township's management team is committed to changes necessary to advance the organization.

Finally, I want to thank all departments and staff for their budget submissions and hard work preparing the Proposed 2020 Budget and Proposed 2020 - 2025 Capital Improvement Plan. I continue to remain positive about Lower Merion Township's future and believe the Proposed 2020 Budget will serve as a vehicle for the Board of Commissioners and the public to establish accurate and important priorities for the upcoming year.

Sincerely,

Ernie B. McNeely Township Manager

Appendix: List of Awards and Special Recognition

28 2019 Awards and Special Recognition

Triple A Bond Credit Rating ,.------., - Moody's and Standard and Poor's _ , _., --~...... - The Township of Lower Merion is among an elite group of only five -·-·-_ _Townships nationwide to have a bond rating of "AAA" by both of ----- Wall Street's major rating agencies (Standard and Poor's and ------Moody's). These are the highest ratings attainable from both rating '------~- services and reflect the strong financial management, manageable debt levels and stable economy of the Township.

In addition, the Township's management practices were rated STANDARD "very strong" under Standard and Poor's Financial Management Assessment ( FMA). An FMA of very strong indicates that the &POOR'S Township's practices are sound, well embedded and likely sustainable, which includes policies governing funding, use and replenishment of reserves and conservative approaches to budget formulation. These ratings mean the Township's general obligation bonds are considered excellent investment quality, allowing the Township to borrow at the lowest possible interest rates, which translates to tangible savings.

The year 2019 marks the 54th consecutive year that The Township of Lower Merion has had a bond rating of "AAA" from Standard and Poor's. It was the 52nd consecutive year that The Township has had a bond rating of "Aaa" from Moody's.

2019 Distinguished Budget Presentation Award Government Finance Officers Association

GOVERNYENT ,-tNANC£ Or flC£RS ASSOCIATtO~ The highest form of recognition in governmental budgeting has Disti11g11 i"l1ed Budget Prese11talio11 been awarded to Lower Merion for 31 consecutive years, achieving Award this standard of excellence more than any other municipality in the Commonwealth of Pennsylvania. Of the approximately 36,000 municipalities in the United States, less than 5 percent receive this award. To receive the award, Lower Meri on Township had to satisfy nationally recognized guidelines for ef fective budget presentation.

29 20 17 Certificate of Achievement Excellence in Financial Reporting This award was the 25th consecutive received by the Township of Lower Merion. Given by the Government Finance Officers Association of the United States and Canada (GFOA), it notes the excellence of the Township's annual comprehensive financial report (CAFR) for the year ending December 31, 2017.

The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.

20 19 Tree City USA National Arbor Day Foundation For 42 successive years, Lower Merion has received this national recognition. TREE COY USA To become a Tree City USA, a community must meet four standards: have a tree board or department, a tree care ordinance, a compre hensive community forestry program, and an Arbor Day observance.

Tree City USA recognizes communities that have proven their commitment to an effective, ongoing community forestry program. Such a program is one marked by renewal and improvement.

2019 Diamond Sustainable Award - GVF GVF Transportation Management Advocacy Susta:nab1My GVF, a nonprofit developer of multi-faceted transportation strategies, focuses on quality of life issues and a healthy, competitive economic environment. GVF recognizes organizations and municipalities for outstanding achievement in implementing programs that provide and promote commuting alternatives for their employees and community. The Diamond level is GVF's highest, and Lower Merion has achieved this status for four years in a row.

30 Montgomery County District Attorney's Office Service Awards Detectives Gregory Pitchford and Christine Konieczny (Ret.) re ceived Exceptional Performance awards from the Montgomery County District Attorney's Office as part of their efforts in bringing down a sophisticated burglary ring and related jewelry fence. In a multi-year effort, the detectives reached out to other agencies with similar crimes and a regional task force was developed that encompassed 20 agencies from three states. More than 50,000 pieces of evidence were recovered, some from crimes dating back 10 years. Due to the extensive network established by these crimi nals, all were charged with Operating a Corrupt Organization, Burglary, Home Invasion, and dozens of related charges. Over 51 burglaries and a local home invasion were cleared.

Also receiving an Exceptional Performance award from the DA was Ofc. A. Edward Bove, who responded to a bank robbery in Gladwyne by correctly identifying the suspects' car and giving pur suit. In cooperation with Philadelphia Police, Ofc. Bove's intelligent response, intuitive judgement, and courage resulted in the prompt apprehension of three dangerous criminals.

NATIONAL National Liberty Museum • LIBERTY MUSEUM Awards for Community Service, Valor In 2019 the National Liberty Museum honored Ofc. Josephine Murray for her role as the Township's Community Relations Of ficer, a position created in 2016. For multiplying and strengthen ing the ties between the Police Department and the community it serves over this time period, Ofc. Murray also received a Commen dation of Merit from LMPD Superintendent Michael McGrath.

The NLM also honored a team of LMPD officers who quickly re sponded to an arson fire in January 2019, simultaneously alerting the occupants of the house where it occurred, controlling the fire until a fire company arrived, and apprehending the suspect. The quick actions of Officers Christopher Kubik, John O'Brien, Alexan der Muller, Andrew Rook, and Jeffrey Seamans were all recog nized, as was the follow-up investigation from Detectives Bryn Garner, Joseph Hunsicker, John Mick, and Gregory Pitchford, which resulted in an arrest two days later by Officers Michael Pleasants and Eric Fries. The officers received the award for Valor in Emergency Response-Team for their teamwork and intelligent decisions.

31 Sustainable Pennsylvania Community Certification, Gold level, Pennsylvania Municipal League Lower Merion Township was once again recognized among a select group of high performing municipalities to become certified through the Sustainable Pennsylvania Community Certification program. Lower Merion was recognized at the Gold level of certification for meeting the program's rigorous performance criteria, which tracks 131 policies and practices that define a sustainable community. The Sustainable Pennsylvania Community Certification, administered by the Pennsylvania Municipal League in partnership with Sustainable Pittsburgh, is designed for munici palities that are working to save money, conserve resources, and serve vibrant communities.

Certified Local Government; Pa. State Historic Preservation Office; Pa. Historical & Museum Commission Lower Merion Township was recognized by the PHMC and the National Park Service as one of the Commonwealth's Certified Local Governments, one of only several dozen in the state to achieve such status. It is the 27th year in a row Lower Merion has maintained this designation.

Solar Energy Growth Program SolSmart, U.S. Department of Energy SOLS MART Lower Merion Township achieved the level of "SolSmart Bronze" NATIGNA.lH D!STiNGU!SHED. LOCALLY POWERED, in 2019, the third year the Township was recognized by the national program, which provides expert assistance to help communities expand solar energy development. Participation in SolSmart helps communities to take steps to grow the local solar market by making it more affordable for residents and businesses, while encouraging new economic development and jobs. Funded by the U.S. Department of Energy's "SunShot Initiative," SolSmart is administered by a team of national experts led by The Solar Foundation and the International City/County Management Association ( ICMA).

32 Pennsylvania Library Associations PA EORWARD PA Forward, Star Libraries The Lower Merion Library System (LMLS) now has five libraries "') STAR PROGRA.\I that have earned star status in the PA Library Association's "PA Forward Star Libraries" program. Belmont Hills :Library has bronze status, the Gladwyne Library has silver status, and the Ardmore, Bala Cynwyd and Ludington libraries each have gold status.

State Sen. Daylin Leach, 7th Senate District Librarian of Year Award The 2019 Public Librarian of the Year was Ms. Lizzie Barrie, Head Librarian for the Belmont Hills Library. Ms. Barrie received this year's award for her efforts in helping to manage the library's recent renovation, including the difficult task of moving the collection both out to storage and back into the library, among other accomplishments.

Backgroundchecks.org Safest Cities to Live in Pennsylvania 2019 Lower Merion Township was found to be among the five safest communities in the Commonwealth of Pennsylvania with

2019 populations exceeding 10,000, according to data compiled by Backgroundchecks.org. Lower Merion and two other townships were described as truly distinguished as extremely safe places to live, with recorded violent crime rates a small fraction of the nationwide average.

33 35 36 37 38 39 40 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 2020 Budget General Fund Actual Revenue vs. Actual Expenditures

$80,000,000

- - • $70,000,000 :::::;>< / "'e _.-:;:: / ~- ... ~ $60,000,000 - - '- i;;.--- v-· ..... l>r-"' ,/ ~ $50,000,000

- REVENUE $40,000,000

- EXPENDITURES

$30,000,000 -+-FUND BALANCE (undesignated)

. ~ ~ ~ ..... $20,000,000 A - ..__ ./ - ~ -<

$ 10,000,000

$0 2011 201 2 2013 2014 201 5 201 6 2017 2018 2019 2020

The GF fund balance has been impacted by several s.ig nificant o n e-t ime ev ents. including a business tax settlement that drove an increase of$ 7.4 million in 2011, $6 mil.fion in one-tim e transfers from the GF that fed to a $ 1.4 million decline in 201 2 an d another significant business tax settlement helped produce a $3. 1 million increase in 20 13. The GF fund balance declined by$ I .4 million in 20 I 6 due to a $2.5 million one-time transfer to the Capital Projects f und. Tl1 e Gf expendit u res for 2018 included an oth er $ 1.0 million transfe r to the Capital Projects Fund.

Figures for 2019 are estimated and tile 2020 Budget includes a projected decrease of nearly $4.6 million.

57 2020 Budget General Fund Sources of Revenue

Real Estate Taxes 48.6%

Other Revenue 7.5%

Departmental Earnings 4.8%

Fines & Forfeits Licenses & Permits Local Services Tax 1.3% 9.5% 2.9%

Sources of 2018 2019 2019 2020 Actual Budget Estimated Budget Revenue Actual

Real Estate Taxes 31,688,540 31,795,000 3 1,600,000 32,085,000

Business Taxes 12, 147,500 11 ,225,000 14,500,000 12,560,000

Real Estate Transfer Tax 4, 188,296 4, 150,000 4,435,000 4,200,000

LocalService Tax 1,933,382 2,050,000 1,925,000 1,920,000

License & Permits 6,340,597 6,346,800 6,421,250 6,280,250

Fines & Forfeits 862,934 1, 115,500 845,000 835,000

Departmental Earnings 2,659,897 2,681,500 3, 181,500 3, 195,500

Other Revenue 6,428,045 4,890,600 6,977,500 4,973, 100

Total 66,249, 191 64,254,400 69,885,250 66,048,850

58 2020 BUDGET GENERAL FUND - REVENUE SUMMARY

2019 20 I 8 20 I 9 ESTIMATED 2020 ACTUAL BUDGET ACTUAL BUDGET

TAXES: REAL ESTATE - CURRENT YEAR 31,075,263 $ 31,170,000 31,000,000 31,545,000 -PRIOR YEAR 509,481 525,000 415,000 415,000 -INTERIM 103,796 100,000 185,000 125,000 ACT 51 1 - REAL ESTATE TRANSFER 4, 188,296 4,150,000 4,435,000 4,200,000 -EMST/LOCAL SERVICES TAX 1,933,382 2,050,000 1,925,000 1,920,000 -BUSINESS AND MERCANTILE 12, 147,500 11,225,000 14,500,000 12,560,000 TOTAL TAXES 49,957,718 49,220,000 52,460,000 50,765,000 LICENSES AND PERMITS: BEVERAGE 20,950 20,900 21,250 21,250 BUILDING AND ELECTRICAL 2,777,995 2,800,000 2,675,000 2,675,000 BUSINESS PRIVILEGE AND MERCANTILE 188,820 170,000 270,000 195,000 ALARM REGISTRATION FEES 568, 147 615,000 585,000 585,000 PLUMBING 478,613 475,000 468,000 468,000 STREETS 264,766 270,000 365,000 320,000 HEALTH 65,718 67,900 62,000 62,000 RECREATION (POOL FEES) 481,265 495,000 516,000 520,000 FRANCHISE FEES 1,459,050 1,400,000 1,425,000 1,400,000 OTHER LICENSES AND PERMITS 35,274 33,000 34,000 34,000 TOTAL LICENSES AND PERMITS 6,340,597 6,346,800 6,421,250 6,280,250 FINES AND FORFEITS: ORDINANCE VIOLATIONS 587,245 815,500 595,000 585,000 DISTRICT JUSTICE 275,690 300,000 250,000 250,000 TOTAL FINES AND FORFEITS 862,934 1, I J5,500 845,000 835,000 DEPARTMENTAL EARNINGS: PARKING 1,230,342 1,250,000 1,296,000 1,332,000 POLICE SERVICES 372,310 375,000 780,000 800,000 RECREATION 385,937 382,500 397,000 400,000 ZONING AND SUBDIVISION 573,987 575,000 620,000 575,000 HIGHWAY SERVICES 94,346 95,000 85,000 85,000 FIRE SERVICES 2,975 4,000 3,500 3,500 TOTAL DEPARTMENTAL EARNINGS 2,659,897 2,681,500 3,181,500 3, 195,500 OTHER REVENUE: PAYMENT IN LIEU OF TAXES 48,796 48,800 45,300 45,300 INVESTMENT INCOME 858,304 1,000,000 1,000,000 860,000 INDIRECT COSTS-SOLID WASTE 951,800 601,800 601,800 601,800 INDIRECT COSTS-SANITARY SEWER 737,000 766,500 766,500 797,000 REIMBURSED EXPENSES 503,588 423,500 2,347,000 422,000 PMHIC REFUND 1,971,433 700,000 850,400 900,000 HIGHWAY AID 1,001,735 1,000,000 1,001,500 1,000,000 GRANTS AND GIFTS 84,615 75,000 65,000 65,000 OTHER 270,774 275,000 300,000 282,000 TOTAL OTHER REVENUE 6,428,045 4,890,600 6,977,500 4,973, JOO

TOTAL REVENUE $ 66,249, 191 $ 64,254,400 $ 69,885,250 $ 66,048,850

59 60 61 62 63 64 2020 Budget General Fund Use of Funds General

Public Safety 42.1%

Debt Service 14.1%

Parks & Recreation 5.5%

Libraries 6.7% Public Works 13.2%

2018 2019 2019 2020 Use ofFunds Actual Budget Estimated Budget Actual

General $8,508,072 $8, 169, 165 $8,078,558 $9,053, 181 Government

Public Safety 26,559,083 28,480,757 28,520,692 29,708,723

Building& 4,099.474 4,094,893 3,820,900 3,983,626 Planning

Public Works" 8,761,934 9,303,081 9, 110,020 9,287,619

libraries 4,608,483 4,673, 105 4,682,045 4,723,591

Parks& 3,516,617 3,743,755 3,732,884 3,875,749 Recreation

Debt Service* 10,019,544 9,754,989 9,640,381 9,991,944

Total $66,07 3,207 $68,210,745 $67,585,480 $70,624,433

65 66 67 68 69 70 71 72 73 74 75 77 78 79 80 81 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 101 102 103 105 106 107 109 110 111 112 113 114 115 116 117 118 119 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 157 158 159 160 161 162 163 164 165 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 183 184 185 186 187 188 189 190 191 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 297 298 2020 Budget Township Employees (FTE) By Service Area

Inspection and Planning Services 6.9%

Public Works Services 25.0%

Police 33.7%

Libraries 12.7%

Financial and Staff Services Parks & Recreation 6.7% Administration 9.4% 5.6%

299 300 2020 Budget All Funds Employee Benefits Allocation

Life & Accident Health Insurance Insurance 46.0% 1.2%

FICA Taxes 21.2%

Retirement 5.6%

Vision Health Savings 0.5% Accounts 5. I% Dental 2.4% Prescription Workers Compensation 10.2% 7.8%

Unemployment accounts for 0.02% of employee benefits allocation and is not shown above.

301 302 303 304 2020 Budget Township Real Estate Tax Revenue By Land Use

Other 0.2% Land Hospital & Medical 0.7% 1.6%

Multiple Family Residential 9.4%\

Single Family Detached Dwelling 74.4%

305 306 307 308 A First-Class Township

, 1 Lower Merion was settled many of the Township's parks, and popular recrea in 1682 by a group of tion programs are conducted year-round. Welsh Quakers who were The Township has maintained a triple-A bond rat granted a tract of land by ing, the highest rating attainable, from both of the William Penn. In 1713, with about 52 landholders major bond rating firms for over 50 years. The and tenants, it was established as an independent Township has also maintained Tree City USA desig Township. Prior to this settlement, in the 1600s the nation from the National Arbor Day Foundation Township's first inhabitants were the for over 40 consecutive years. Delaware (or "Lenni Lenape") Indians. The Township is also home to several While these roots are prominent higher revealed in architectural education and digs as well as in the healthcare institu names of neighboring tions, including Bryn communities such as Mawr, Haverford and Conshohocken and Rosemont Colleges Manayunk, much has and Bryn Mawr and changed since the Lankenau Hospitals. Township's humble beginnings. Lower Merion has placed a priority on Current real estate managing progress tax records indicate while maintaining that there are 16, 139 the beauty and histo single-family residential The Lower Merion Township Administration Building located ry of the past. The detached homes in the in Ardmore, Pennsylvania. Township's elected Township with an aver officials, community age market value of approximately $722,000. leaders and staff are dedicated to preserving the In Pennsylvania, Lower Merion's total market value community's natural and manmade resources, and of taxable real property is over $ 15 billion- third have collaborated on the development of an Envi only to Philadelphia and Pittsburgh. This is based ronmental Action Plan. on the most recently released Common Level Ratio Of the 62 municipalities in Montgomery County, (49.3) for Montgomery County. Lower Merion Township is the largest, Back in 1900, a population density of 300 persons encompassing from Bala Cynwyd to Gladwyne per square mile was the criterion to attain the and Penn Valley to Rosemont. distinction of a First-Class Township. In fact, Commuters easily make the trip to Philadelphia Lower Merion was the fir.st First-Class Township in by using the Southeastern Pennsylvania Pennsylvania. Though it was the number of Transportation Authority (SEPTA) and Amtrak residents that afforded Lower Merion this class, the passenger service. Philadelphia International phrase "first-class" also speaks to the w ay our Airport is just a 30-minute drive and is also government operates, and has become the accessible by public transportation. Over I 5 Township's identity. business and civic associations enjoy strong Lower Merion Township is a first

309 Township of Lower Merion 2020 Ward Map

WardNo.1 Daniel S. Bernheim, Esq Ward No. 8 Anna Durbin (Gladwyne, Merion Park & Penn Valley) (South Wynnewood & East Ardmore) WardNo.2 Joshua L. Grimes, Esq. Ward No. 9 George T. Manos (Gladwyne & Penn Valley) (Bala Cynwyd) WardNo.3 Michael F. McKeon WardNo.10 V. Scott Zelov (Belmont Hills, Penn Valley & Bala Cynwyd) (Haverford & Bryn Mawr) WardNo.4 Anthony C. Stevenson WardNo.11 Tiffany O'Neill (Ardmore & Haverford) (Bryn Mawr, Gladwyne & Rosemont) Ward No. 5 Ray A. Courtney WardNo.12 Todd Sinai (North Ardmore & Wynnewood) (Merion) Ward No. 6 Andrew S. Gavrin Ward No.13 C. Brian McGuire (Rosemont & Villanova) (Cynwyd & Merion Park) Ward No. 7 Elizabeth S. Rogan WardNo.14 Rick Churchill (\'V'ynnewood) (Penn Wynne & Wynnewood)

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