Budget

The Township budget is prepared by the Township Manager and is approved and adopted by the Board of Commissioners every fall. The goal of the budget is to provide financial management, resource allocation, program evaluation and long-range planning. The budget is comprised of 16 funds with the largest being the General Fund, which supports Township departments as well as funding capital projects and needs.

Township Manager's Budget Message
You've made it to this page because of your interest in the Township's 2020 budget - thank you.

The 2020 budget is comprised of fourteen operations/capital funds and two business-type funds (sewer, trash). Each fall, the Township's administration prepares a proposed budget for the upcoming year which relies on three factors:

1 - an estimated cash balance effective the following January 1
2 - projected revenues from taxes, fees and other sources
3 - projected expenses for labor, services, facilities, capital and other items

Based on these projections, the 2020 budget reflects three tax or fee increases:

1 - the General Fund millage will be increased by .1 mills to a total of 3.15 mills, an average of $21.00 on the average assessed home of $210,000. Each year, this fund is balanced through utilization of a significant portion of the estimated cash balance effective January 1st. General Fund expenses include much of the Township's labor costs to provide police, public works, code enforcement and administrative services which are subject to annual increases per three collective bargaining agreements. The Township strives to meet these expenses while also continuing community programs and capital allocations. This millage increase will allow the Township to meet all of these cost obligations while reducing the burden on the Township's cash balance.

2 - the Debt Service millage will be increased by .037 mills to a total of .650 mills, an average of $7.77 on the average assessed home. This fund pays the Township's annual bond obligations on a fixed schedule. The upcoming payment schedule will increase between 2021 and 2026 which will necessitate additional funds to make these payments. The 2020 budget will begin to incrementally collect the revenues in order to make these payments, with the expectation that subsequent incremental increases will be necessary in 2021, 2022 and 2023.

3 - the Township operates the sanitary sewer system, which has current costs for the conveyance system, treatment services, labor and construction projects. In 2014, the Board of Commissioners selected a sewer rate program which would increase rates by smaller percentages annually in order to address specific expenses in each of these categories. That rate plan calls for a 2% increase for metered customers in 2020. For an average home utilizing 12,500 gallons of water per quarter, the bill will increase by $4.43 to $175.44.

These revenue considerations will allow the Township to continue its strong financial position while continuing to work on behalf of residents and businesses in Lower Moreland. Please feel free to reach out to me directly if you have any specific questions regarding the 2020 budget.

Christopher Hoffman
Township Manager