2019 Operating Budget Lunch ’n Learn

Executive Summary 2019 proposed Budget for all Funds includes: 2019 proposed Budget General Fund includes: 2019 General Fund Transfers to Other Funds includes: $33,570 transfer to Bus Terminal $56,555 transfer to Bellaire Court $78,242 transfer to Fleet Services 2018 2019 Revenue $48,005,682 $47,144,361 Expense $48,770,113 $49,744,019 2018 2019 Revenue $27,181,218 $28,957,132 Expense $27,341,703 $29,446,562

Executive Summary (cont…) Includes a one-time transfer of $400,000 from unassigned fund balance to offset increased costs in the defined benefit pension plans that result from an actuarial change involving assumptions about plan participants’ mortality Includes an Interfund Transfer of $200,800 to the Redevelopment Authority, which represents 0.25% of anticipated Realty Transfer Tax revenue Includes new appropriations for these strategic community programs: $25,000 to First Night State College, which is a $5,000 increase from 2018 $25,000 for Census 2020 $15,000 Martin Luther King, Jr. Plaza Committee $7,000 Art Alliance of Central Pennsylvania

Staffing Staffing levels are proposed at 175 full-time employees (FTE) 2017 2018 2019 (proposed) 174 175

General Fund Revenue (pp. 65-73) 2018 2019 % Change Taxes $14,789,208 $15,582,913 5.4% Licenses & Permits $354,500 -0- Interest & Rents $105,000 Pension State Aid $937,610 $1,316,314 40.4% Sale of Materials $4,500 Meter Collections/Rentals $975,000 $850,000 (12.8%) Special Assessments $1,000 Transfer from Other Funds $400,000 Indirect Cost Reimbursement $1,066,801 $1,321,272 6.1% TOTAL $18,233,619 $19,535,499 7.1%

General Fund Revenue (pp. 65-73) Reflects 0.36 mill Real Estate Tax increase, which increases revenue by $174,469, or 2.2%  Increases Earned Income Tax revenue by $268,417, or 5.5%  Decreases Indirect Cost Reimbursement revenue by $145,529, or 13.6%  Increases Real Estate Tax revenue by $180,536, or 2.3% because of increased taxable assessed value  Increases General Municipal State Aid revenue by $378,704, or 40.4% Increases Realty Transfer Tax revenue by $172,083, or 16.5% 

Proposed Real Estate Tax Increase The 2019 Budget proposes a 0.36 mill Real Estate Tax increase to fund items listed in table below ITEM MILL RATE DOLLARS Street Tree Maintenance (approved without funding in 2018 Budget) 0.14 $67,500 Operating Expenses Associated with the Historical Architectural Review Board (approved without funding in 2018 Budget) 0.08 $40,000 Regional Programs (*actual increase is $88,823, and the difference of $21,854 is being covered by General Fund revenues) $66,969 TOTAL 0.36 $174,469

Impact of Proposed Real Estate Tax Increase For a “Typical” Homeowner Market Value of $200,000 Without Homestead Exclusion $20.45/yr. or $1.71/mon. With 100% Homestead Exclusion $11.46/yr. or $0.95/mon. Market Value of $300,000 Without Homestead Exclusion $30.68/yr. or $2.56/mon. With 100% Homestead Exclusion $21.68/yr. or $1.81/mon. Market Value of $400,000 Without Homestead Exclusion $40.91/yr. or $3.41/mon. With 100% Homestead Exclusion $31.91/yr. or $2.66/mon.

2019 Capital Fund Funding Sources 2018 General Fund Balance Excess (over the 12% reserve) $1,792,606 2019 Capital Fund Revenue (e.g. PSU Impact Fee, Verizon Building Rent, Act 13 Gas Well Proceeds) $712,394 TOTAL $2,505,000

2019 Capital Fund Projects ST191 Hiester Street Bus Pull-Off $56,000 PROJECT NUMBER PROJECT TITLE AMOUNT ST191 Hiester Street Bus Pull-Off $56,000 SW191 Sinkhole Repairs $400,000 ST001 Street Reconstruction $450,000 Street and Alley Resurfacing $660,000 BD131 Government Building Improvements $175,000 IT400 Data Center Improvement $80,000 BD015 Government Building Maintenance Reserve $128,000 ST941 Bicycle Facility Improvements $65,000 OP121 Energy Savings Project $75,000 ST121 Atherton Corridor Improvement Project $53,000 SW111 Stormwater Projects $383,000 OP181 Development Market Analysis $40,000   TOTAL $2,505,000

2019 Other Funds Projects Funding Sources (Enterprise Fund) SS-1 PROJECT NUMBER PROJECT TITLE AMOUNT SS-1 Sanitary Sewer Rehabilitation $850,000 SS-2 Sanitary Sewer Inflow & Infiltration $216,000 SANITARY SEWER FUND $1,066,000 PF138 Parking Study $100,000 PARKING FUND ST021 Downtown Streetlights $271,590 CDBG FUND

Unfunded Capital Projects There are 9 projects, which total $2,041,200, that were approved in the 2019-2023 Capital Improvements Plan but are not funded in the 2019 Budget due to lack of funding: PROJECT NUMBER PROJECT TITLE AMOUNT PK200 Park Land Acquisition/Improvements $48,700 ST142 Downtown Infrastructure $350,000 IT183 Aerial Photography Update $65,000 PK182 Park Land Restoration $25,000 PK001 Parks Maintenance Reserve $52,500 ST022 Traffic Signals and Intersection Safety $75,000 IT280 High Speed Internet $70,000 OP191 West End Transportation Infrastructure $155,000 OP192 Social Housing Redevelopment Project $1,200,000

2019 BUDGET CALENDAR Agenda Item Date Transmittal to Council and Review of Executive Summary October 30, 2018 Review of Parking November 5, 2018 Review of Receipts, Tax, Information Technology, Insurance Reserve, Finance, Administration and Police November 13, 2018 Review of Planning, Regional Programs and Neighborhood and Community Services November 19, 2018 Review of Public Works and Capital Improvements November 20, 2018 Public Hearing December 3, 2018 Final Review and Wrap Up December 10, 2018 Adoption December 17, 2018