Proposed 2021 Ferguson Township Annual Operating Budget
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Date: 11/24/20 Page 1 Ferguson Township Budget Key Personnel Board of Supervisors Steve Miller, Chair Laura Dininni, Vice Chair Lisa Strickland Patricia Stephens Prasenjit Mitra Leadership Team David G. Pribulka, Township Manager Centrice Martin, Assistant Township Manager David J. Modricker, Director of Public Works Eric R. Endresen, Director of Finance Christopher Albright, Chief of Police Jenna Wargo, AICP, Director of Planning & Zoning Angela Kalke, Human Resources Administrator Date: 11/24/20 Page 2 TABLE OF CONTENTS Date: 11/24/20 Page 3 Operating Budget FY2021 TABLE OF CONTENTS Budget Messages 9 Provides some highlights of the budget from the perspective of the Township Manager and the Finance Director GFOA Budget Award 14 The award document from the GFOA budget submission Community Profile 15 Provides background and historical information of the Township Form of Government 16 Describes the legal structure of the Township government Township Map 17 The official map identifies the various zoning districts in the Township Voting Wards 18 The voting wards provide a map of the current electoral districts of the Township Board of Supervisors 19 The board of supervisors identifies the current officials of the five- member board Mission, Vision & Values 20 The mission, vision & values are the guiding statements for the Township officials and staff Township Organizational Chart 22 The organizational chart depicts the management chain of command within the Township Personnel Schedule 23 The personnel schedule provides readers with the general level of Township staffing by department Basis of Budgeting 26 The basis of budgeting describes the accounting basis for the budget figures and the different methods available Budget Process & Overview 27 The budget overview details the process to produce, approve and revise the budget Description of Township Funds 30 This section describes and defines the various funds of the Township Date: 11/24/20 Page 4 Operating Budget FY2021 Changes in 2021 Budget Accounts 31 This section describes changes to the account structure for the current budget Financial Summary 32 This section provides information on fund balances, revenues, expenditures, and changes in fund balances Summary Fund Balances, Revenue & Expenditures 33 Summary by type and fund of the previous year, the current year, and the budget year Revenue & Expenditures by Fund and Department 36 Detail of the revenues and expenditures accounts by fund and department General Fund (01) 68 The general fund is the primary operating fund of the Township. the following sections are departments within the fund Revenues 69 The revenue section provides detailed information related to all general fund revenues General Government 88 The general government department relates the board of supervisors' expenses. Executive Administration 91 The administration department relates to the Township manager office expenses and supporting staff Finance & Tax 97 The finance and tax departments relate to the finance office expenses Legal 107 The Township legal expenditures budget. CRCOG Administration 108 The Township’s share of the Centre Region Council of Governments regional administration costs. Information Technology 110 The IT department relates to computer support services and hardware replacements Public Works-Engineering 113 The engineering department relates to the public works directors office expenses Buildings & Grounds 122 The Buildings & Grounds department relates to the maintenance of Township facilities Date: 11/24/20 Page 5 Operating Budget FY2021 Public Safety 127 The public safety department relates to police, EMS, and other safety expenses Fire 143 The Township’s share of regional fire services. Planning & Zoning 146 The P&Z department relates to the planning office expenses EMS/Health 156 The Township’s share of regional emergency & health services. Public Works-Roads 158 The PW department relates to recycling, road maintenance, and equipment repair Transit System 172 The Townships share of the regional CATA (Centre Region Transportation Authority bus service Parks & Recreation 173 The P&R department relates to park and street tree maintenance and recreation expenses. Public Works-Street Trees 177 The Township plants and maintains street trees. Schlow Public Library 182 The Township’s share of the Schlow regional public library. Other Services 183 Other Services relate to various services such as seniors, natural resource conservation, and economic development. Taxes, Insurance, Benefits and Other 185 These sections relate to personnel benefits, risk management, and other expenses. Interfund Transfers Out 191 The general fund transfers out supporting other funds Special Revenue Funds This section represents those funds of the Township that receive funding from sources other than general tax revenue. The Street Light Fund and the Hydrant Fund revenue is derived from special assessments on residents receiving related services. The liquid fuels fund receives funding from the state as part of a surcharge on fuels. Street Light Fund (02) 193 The SL fund is a dedicated fund to assess costs to those who benefit directly from the lights Date: 11/24/20 Page 6 Operating Budget FY2021 Hydrant Fund (03) 196 The Hydrant Fund is a dedicated fund to assess costs to those who benefit directly from the hydrants Liquid Fuels Fund (35) 199 The LF fund is required by the state to account for state liquid fuels funding for the maintenance of roads and bridges Debt Service Fund This section details the township debt proceeds and related debt service. General Obligation Fund (16) 204 The GOA fund is used to manage the long-term debt service needs of the Township Capital Projects Funds This section details the funds reserved for use in capital projects. Such projects include road rebuilding or significant repairs, recreational projects, park improvements, and various beautification projects. Ag Preservation Fund (19) 208 The AP fund is restricted for agricultural easement purchases to protect Ag land in the Township Stormwater Fund (20) 210 The SW fund is restricted for the maintenance of township stormwater management infrastructure. Capital Reserve Fund (30) 216 The CR fund is restricted for the purchase of capital equipment Capital Improvement Plan 225 The Capital Improvement Plan is not an official Township budget. Rather, it is a five-year plan of the forecasted capital needs of the Township. The CIP includes estimates for operational costs to better predict the Township's financial sustainability over the mid-term. Regional Capital Recreation Projects Fund (31) 307 The RCRP fund is dedicated to the capital costs of regional parks Transportation Improvement Fund (32) 310 The TIF fund is restricted for capital road projects through a dedicated tax Pine Grove Mills Streetlight Fund (33) 315 The Pine Grove Mills streetlight fund is restricted for the installation of street lights in the village Date: 11/24/20 Page 7 Operating Budget FY2021 Park Improvement Fund (34) 317 The Park Improvement Fund is restricted for use on specific park projects Fiduciary Funds The Fiduciary Funds represent the non-governmental accounts of the Township. These funds are separate from the Township activities and are entrusted to the Township to administer. These include the pension funds and the Tudek Memorial Trust Fund. Police Pension Trust Fund (60) 321 The Police Pension Trust fund is a trust fund for the police officers pension plan Non-Uniform Trust Fund (65) 326 The Non-Uniform Pension Trust fund is a trust fund for the benefit of the non-uniform pension plan Tom Tudek Memorial Trust Fund (93) 330 The Tom Tudek Memorial Trust is a trust fund for the benefit of the Tudek Trust park Glossary 336 The Glossary provides definitions of key terms for the report to make reading and understanding this document easier. Financial Policies 343 The Financial Policies section provides information for the reader to better understand the financial guidelines that the Township follows during the operation of the Township. Date: 11/24/20 Page 8 Operating Budget FY2021 Manager’s Budget Message To the Board of Supervisors and Township Residents, Introduction I am honored to present to the Board of Supervisors and public the 2021 Ferguson Township Operating Budget. This document is one of several that guide Township staff and elected and appointed officials in their formulation and implementation of the policies that advance our community's mission and vision. Other guiding documents include the Capital Improvement Program Budget, the Recreation, Parks and Open Space Plan; Centre Region Comprehensive Plan; and, most importantly, the Ferguson Township Strategic Plan. What makes the Operating Budget unique is its formal authorization for public funds' expenditure on projects and initiatives. As Township Manager, it is my fiduciary responsibility to ensure that the fund's expenditures are within the Board of Supervisors' established limits in this Budget. Effective government budgeting is transparent, sustainable, and ties directly to the goals and objectives outlined in the Strategic Plan. I am proud to state with confidence that the 2021 Operating Budget meets that test, and 2021 promises to be a year like no other. Ferguson Township is a thriving community in that we have been able to rely on the steady growth of income and real estate values that drive our tax base. The development has allowed the Township to prosper without increasing taxes since 2006. Real estate tax revenue is predicted to remain relatively stable at $1,459,527. Real estate transfer tax, or taxes paid when a property is sold, is predicted to be $1,400,000. The transfer tax is a challenging revenue source to predict with a high degree of accuracy since it depends on conditions that fluctuate year-to-year. Earned income tax is budgeted to decrease as the result of COVID-19 challenges to $6,660,000. Earned income tax is the Township’s single largest revenue source based on employment levels and wages paid. In 2021, the total expenditures across all funds, including pension funds and the Tudek Trust, are budgeted at $23,034,158 (including interfund transfers).