2020 BUDGET The North Lebanon Township Municipal Authority was - - PDF document

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2020 BUDGET

The North Lebanon Township Municipal Authority was created in 1982 in accordance with the Municipal Authorities Act 53, PA.C.S.Ch.56 of 1945, as amended and supplemented. The Board of Supervisors set the term of existence at 50 years. The Supervisors tasked the North Lebanon Township Municipal Authority (NLTMA) to construct all new sewer lines in the Township including financing, which must be pre-approved by the

• Supervisors. The first project of the NLTMA was the project originally known as the North

7th Street Sewer Project. Since that time, the Authority has expanded public sewer into various areas of the township, as necessary and is now responsible for just over 60 miles

• f lines and 8 pump stations.

The NLTMA consists of five township residents each serving a five-year term. Their terms are staggered, so only one member is up for re-appointment each year. The appointments are made by the Board of Supervisors. Sewer Operating Fund: The day to day operations of the NLTMA is done through the Sewer Operating Fund. There are two full-time employees that perform the maintenance of approximately 60 miles of conveyance lines and 8 pump stations. They perform duties such as line flushing, 24/7 pump station monitoring, PA One Call line locations, manhole repairs, lateral inspections for new homes/businesses, maintain and mow sewer R-O-W’s, maintain the sewer vehicles and the equipment used to maintain the sewer lines, as well as attend required training classes to keep their Wastewater System license current. There is one sewer billing clerk responsible for the monthly and quarterly billing and all aspects associated with collection, issuance of sewer permits, settlements on sold properties, and preparation of minutes from NLTMA meetings. In 2016, a new billing system was installed after much research. As requested by numerous residents, the new system has a “customer portal” so residents will have access to their account information 24/7. They are able to pay online with their credit card or checking account and protect their privacy with Tier 4 security. We also have the ability to email their bills if they choose this option, which will help to save on postage costs. In addition, there is an Assistant Township Manager that prepares the monthly agenda for the NLTMA and works closely with the Authority Engineer and Authority Solicitor in carrying out all NLTMA directives. The Assistant Township Manager is also responsible for purchasing capacity at the City of Lebanon Authority Wastewater Plant, overseeing the sewer billing clerk, as well as preparing developer’s agreements, tracking and checking for completeness of all planning modules associated with new development, reviewing and issuing Strong Waste Permits, and attends all Municipal Authority

• meetings. Preparation of the Municipal Authority budget is another important role of the

Assistant Township Manager.

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At the September 10, 2015 Authority meeting, the Board took action to refinance the sewer bonds using a traditional bank loan through Fulton Bank. The interest rate on the loan is 2.33% for the first 7 years then switches to a variable rate at 65% of Prime with a cap of 4.50% for the remainder of the loan. The term of the loan is 15 years, which reduces the length of the loan by 5 years from the previous bond issue. The loan can be pre-paid at any time and is scheduled to be paid off in 2029, however the last couple of years the Authority has made additional payments on the principal which has reduced the length of the loan by approximately another three years. The Board reviews rates on a yearly basis and will make adjustments as necessary to satisfy the loan payment. The 2020 sewer user rate will remain the same at $78/Quarter per EDU. A copy of our current amortization schedule with Fulton Bank follows the Revenue and Expenses of the Sewer Operating Fund. As approved at a joint meeting between the NLTMA and Board of Supervisors, an additional amount of $100,000/year for the next 10 years (2017-2026) will be applied on the Fulton Bank loan. We continue to make additional payments on the principal with the monies collected from the tapping fees. It is the goal of both Boards to reduce this debt, as much as possible over the next ten years. For 2020, there are a few major purchases that will come out of Capital Improvement. They include a generator for the Rockwood Pump Station, a video push camera with the ability to view smaller sewer laterals, and a new computer for the Sewer Billing Clerk. A few items that will be purchased jointly between the Authority and the Township are an aluminum trench box, a new office copier, an Office Policies Procedure Manual as suggested by our appointed auditors (CPA) and IT equipment for the Board room.

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REVENUES: ACCT # DESCRIPTION 2020 BUDGET 2019 BUDGET 2018 ACTUAL 2017 ACTUAL Cash On Hand - Checking/Prime 2,175,000 1,963,500 1,871,216 1,927,046 Sewer Revenue Fund Closed 2016 341.000 Interest Earnings 50,000 30,000 34,443 14,515 361.320 Plan Review 5,000 2,500 375 2,875 361.365 Inspect/Admin/Sewer Permit 6,000 5,000 6,900 18,044 361.370 Inspect Developments 200 1,038 361.450 PA One Call Refund 175 170 361.500 Sewer Saddles & Signage 850 850 850 361.600 Sewage Mgmt Fees (every 3 yrs, due 2020) 21,000 210 20,990 361.950 Emergency Repairs/Others 488 364.100 Sewer Treatment 2,900,000 2,900,000 2,885,317 2,789,539 364.453 W Lebanon Tranport Fee 1,855 1,855 1,855 1,855 364.900 Strong Waste Permit/Fees (3 yr renewal - 2020 400 400 100 380.000 Misc Revenue 25 25 1 380.110 Conduit Fee (Moravian Manor) 5,000 5,000 15,000 5,000 391.100 Sale of Fixed Assets 25 25 651 392.093 Transfer from Capital Reserve ($100k add loan prin 100,000 100,000 200,000 100,000 392.093 Transfer from Capital Reserve 138,000 90,000

(Actual Tapping/Spec. Purp. Fees-addt'l loan)

395.000 Prior Year Refund - Bencon rebate 4,692 3,600 22,010 25,454 Total Projected Revenue 3,233,022 3,139,255 3,167,330 2,980,550

SEWER OPERATING FUND REVENUES

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EXPENSES:

ACCT # DESCRIPTION 2020 BUDGET 2019 BUDGET 2018 ACTUAL 2017 ACTUAL 429.110 Authority Bd Wages (1-Old $25, 4-New $49) 2,940 2,652 2,119 1,681 429.120 Wastewater 408,830 330,948 324,555 411,055 429.210 Office, Dept, (SMP Supplies/Postage-2020) 7,000 7,000 3,828 5,874 429.231 Gasoline/Oil 4,000 4,000 3,587 2,888 429.238 Uniforms 2,000 2,000 1,508 2,464 429.245 Vehicle Maintenance 6,500 6,500 3,976 3,237 429.250 Rep & Maint & Sludge Disposal 100,000 100,000 241,851 48,674 Manhole Spraying, Trench Restorations

Tools, Small Equip, DynaTech-generator @ Koch.PS Decommission Orange Lane PS

429.300 Banking/CD Fees/Online Fee 4,500 3,500 4,561 1,410 429.310 Plan Review 500 2,000 99 99 429.311 Auditor Fees 6,000 7,000 6,427 6,128 429.312 Engineer Mgmt Consultant/Retainer 15,000 10,000 12,164 14,948 429.314 Legal Fees/Retainer 15,000 18,000 24,919 20,123 429.320 Communications 3,500 3,650 3,464 3,666 429.340 Advertising/Printing 2,000 2,000 1,857 1,873 429.350 Treasurer/Notary Bond (2018 for 2019; every 3 y 250 250 250 429.351 Commercial/E&O Insurance 10,182 9,650 14,241 14,803 429.354 Workers Comp Insurance 4,500 4,666 4,980 6,683 429.361 Pump Station Utilities (Elec, gas, phone, dialers, 24,000 19,000 17,787 16,197 429.364 Sewer Treatment 1,300,000 1,300,000 1,258,909 1,187,852 429.367 Water Termination Fee 2,000 2,000 1,800 1,500 429.371 Office Equipment/Computers (MuniBilling) 13,000 13,000 12,978 19,212 429.384 Equipment Rental 100 200 429.420 Memberships/Dues/Subscriptions (Assoc-$230 2,500 1,000 2,751 3,561 429.450 PA One Call/Breakthrough Concepts 2,000 1,800 1,563 626 429.451 Contracted Svcs - Paychex 1,250 1,300 1,177 1,289 429.452 S Lebanon Transport Fee 1,565 1,560 1,561 1,556 429.460 Meetings/Conferences/Training 2,000 2,000 1,210 1,824 429.470 Misc Expenses 313 162 429.720 Capital Improvement - 89,060 42,960 11,409 $60,934 Generator - Rockwood PS + ext. warranty + concrete pad/fence $10,168 Push Camera (laterals) $ 858 Dell computer & monitor - Sewer Billing Clerk $ 6,300 Aluminum trench box (50/50 w/twp=12,600) $ 2,800 Copier (50/50 w/twp=5,600) $ 7,500 Office Polices Proc. Manual (50/50 w/twp=15,000) $ 500 IT for Board Rm (split w/twp=10,000) 429.850 Trust Expenses 470.474 Bond Issue Payment 473.100 Fulton Bank Loan - Principal (2029) 660,000 643,000 629,000 614,000 473.110 Fulton Bank Loan - Addt'l Principal 100,000 100,000 200,000 386,894 10 Years @ $100k/yr (2017-2026) 138,000 90,000 tapping fees from prior yr + YTD 473.200 Fulton Bank Loan - Interest 152,458 150,300 174,128 187,187 473.300 ACNB Loan - Interest 57,086 491.001 Refund of Prior Yr Revenue 169 492.093 Transfer to Capital Reserve Total Projected Expenses 3,080,385 2,838,976 3,000,523 3,036,380 Current Year Total Projected Revenue 3,233,022 3,139,255 3,167,330 2,980,550 BUDGET (Remaining Funds) 152,637 300,279 166,807

• 55,830

Total Funds Available $5,408,022 $5,102,755 $5,038,546 $4,907,596 Total Expenditures $3,080,385 $2,838,976 $3,000,523 $3,036,380 Projected Year End Balance $2,327,637 $2,263,779 $2,038,023 $1,871,216

SEWER OPERATING FUND EXPENSES

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The following is a copy of our amortization schedule for the sewer loan with Fulton Bank. Payment Date Beginning Balance (Principal) Principal Interest Extra Payment on Principal Total Payment Ending Balance (Principal)

• Sept. 2016

8,818,000.00 530,000.00 47,940.53 0.00 577,940.53 8,288,000.00 March 2017 8,288,000.00 96,335.79 100,000.00 196,335.79 8,188,000.00

• Sept. 2017

8,188,000.00 614,000.00 96,335.79 289,664.21 1,000,000.00 7,284,335.79 March 2018 7,284,335.79 82,333.91 0.00 82,333.91 7,284,335.79

• Sept. 2018

7,284,335.79 629,000.00 82,333.91 209,459.81 920,793.72 6,445,875.98 March 2019 6,445,875.98 82,928.52 82,928.52

• Sept. 2019

643,000.00 82,928.52 240,000.00 965,928.52 5,562,875.98 March 2020

• Sept. 2020

660,000.00 March 2021

• Sept. 2021

684,000.00 March 2022

• Sept. 2022

706,000.00 March 2023

• Sept. 2023

627,000.00 March 2024

• Sept. 2024

664,000.00 March 2025

• Sept. 2025

696,000.00 March 2026

• Sept. 2026

630,000.00 March 2027

• Sept. 2027

663,000.00 March 2028

• Sept. 2028

746,000.00 March 2029

• Sept. 2029

326,000.00 SEWER LOAN - FULTON BANK

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CAPITAL RESERVE FUND: The Capital Reserve Fund is used for larger projects, such as our improvements to 4 of

• ur 8 pumping stations in 2016. They included the Frances Ann, Jay Street, Kochenderfer

Road and Orange Lane pump stations. Three of these pump stations were installed with the N. 7th Street sewer project in 1986. The other pump station (Orange Lane) was installed as part of the Ebenezer Sewer Project in the 90s. Capacity Charges – Sewer capacity must be purchased for new development through the

• NLTMA. The current charge is $2290 of which $2090/EDU goes to CoLA and $200/EDU

to NLTMA. Tapping Fees – Connection to the public sewer is $3,100/EDU. Special Purpose Fee I – We collect $800 for Special Purpose Tapping Fee I from any connections that will flow into the Water Street Pump Station to offset upgrade costs. Special Purpose Fee II – We collect $1,125 for Special Purpose Tapping Fee II from any connections that will flow into the Long Lane relief line to offset the construction costs. Special Purpose IV Fee – We collect $2,000 for Special Purpose Tapping Fee IV from any connections that will flow into the N. 8th Avenue pump station to offset NLTMA costs for the reconstructed station. In 2012, the NLTMA was mandated to spearhead a sewer extension project in the area known as Rockwood. The project area consisted of 88% of Swatara residents and 12%

• f North Lebanon Township residents. Construction is complete and the NLTMA portion
• f the PENNVEST loan was paid off in 2016. The remaining loan amount is solely the

responsibility of Swatara Township. However, because NLTMA owns the lines and pumping station associated with this project the loan cannot be transferred to Swatara Township and must remain with NLTMA. An inter-municipal agreement is in place with Swatara Township and NLTMA covering this project and remaining loan amount. We will continue with our 20-year loan from PENNVEST, to be paid entirely by Swatara Township. We continue to reference the approved Rate Study prepared by Steckbeck Engineering to make recommendations for Capital Expenditures. A group of 4 individuals (1 NLTMA member, 1 member from the Board of Supervisors, and 1 maintenance personnel and 1 mechanic) have been appointed to discuss vehicle replacement suggestions and report to the NLTMA each year their recommendation on future vehicle needs. In 2019, we purchased one vehicle to replace one of our older existing vehicles. The new vehicle is a 2019 Ford F-250 w/tool body upfit and is powered by gasoline versus the prior diesel

• vehicle. There are no new vehicle purchases planned for next year, however, we do have

some capital improvements recommended for 2020. These include the sewer extension from Lantern Drive to E. Maple Street and possible construction of a new gravity sewer line from the Orange Lane Pump Station to Elias Avenue. This would result in the decommission of the Orange Lane Pump Station.

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As of 9/30/19

ACCT # DESCRIPTION 2020 BUDGET 2019 BUDGET 2019 YTD * 2018 ACTUAL 2017 ACTUAL Cash On Hand - Checking/Prime 993,000 962,970 820,603 815,629 387,997 CDs 3,326,270 3,550,360 3,550,360 3,505,359 3,876,041 Pennvest - Rockwood 7,796 7,796 7,796 Swatara Escrow 9,030 15,000 10,280 12,539 14,624 341.000 Interest Earnings 20,000 20,000 24,861 73,358 60,777 361.360 Tapping Fees - 86,000 39,000 121,500 109,400 125,700 Crossings Ph 3-28 lots -10

Musser/E.Maple-38 lots-10 N 8th Ave -77lots - 10

361.361 Capacity Charge (EDU-$2090 CoLA+200 MA) 144,270 87,020 64,120 13,740 169,460 (Crossings Ph 3-28 lots-2020) (Musser/E.Maple-38 lots-2019) (N 8th Ave - 77 lots total-ph 1-35 lots) 361.362 Special Purpose Fee I - Water St ($800) 1,600 1,600 4,000 5,600 4,800 361.363 Special Purpose Fee II - Long Ln ($1125) 2,250 2,250 5,625 7,875 6,750 361.367 Special Purpose IV - N 8th Ave PS ($2000) 40,000 30,000 22,600 48,000 46,000 (The Crossings-ALL Phases-10 lots 2020) (Musser/E.Maple-10 lots 2020) 361.370 Addt'l Sewer Capacity Purchase (Godshall's 12,000 18,000 13,500 27,000 33,000 (2019-12 EDUs $18k/yr; 2020-8 EDUs $12k/yr) 364.100 Swatara Debt Payments (Until Year 2034) 31,161 31,161 23,389 31,185 31,185 (MA paid off their portion in 2016) 391.100 Sale of Fixed Assets (sewer truck) 30,000 30,100 395.010 Refund - Prior Yr Expense 5,137 Total Projected Revenue 367,281 229,031 279,595 346,258 482,809

As of 9/30/19

ACCT # DESCRIPTION 2020 BUDGET 2019 BUDGET 2019 YTD * 2018 ACTUAL 2017 ACTUAL 429.300 Cash Mangement - Bank Fees 25 25 10,176 9,041 36 (Penalty on early CDs - 2018 & 2019) 429.600 Developer Tapping Fee Reimbursement ($3100-5%=$2945 per connection) 429.615 EDUs - City ($2090) 131,670 79,420 54,340 4,180 148,390 Crossings Ph 3-28 lots-2020 Musser/E.Maple-38 lots-2019 N 8th Ave-77 lots total-ph 1-35 lots-2020 429.720 Capital Improvements 301,875 66,127 $ 20,000 sewer exten. (Lantern Dr to E Maple St) $281,875 Construct gravity line from Orange Ln PS ?? 429.740 Capital Purchases 50,895 49,637 68,734 471.100 Pennvest Loan - Principal (Rockwood) 27,811 27,534 20,623 27,258 26,967 471.200 Pennvest Loan - Interest (Rockwood) 3,351 3,627 2,748 3,903 4,195 492.092 Transfer to Sewer Op - Addt'l Loan Principa 100,000 100,000 240,000 200,000 109,324 (2017-2026) 10-Yr Agreement; $100k/Yr 138,000 90000 + prior yr tapping fees 492.200 Swatara Escrow - Sewer Payment 1,263 2,264 2,086 Total Projected Expenses 702,732 300,606 380,045 296,283 425,859 Current Year Revenue Grand Total 367,281 229,031 279,595 346,258 482,809 BUDGET (Remaining Funds)

• 335,451
• 71,575
• 100,450

49,975 56,950 Total Funds Available $4,686,551 $4,742,361 $4,650,558 $4,667,246 $4,746,847 Total Expenditures $702,732 $300,606 $380,045 $296,283 $425,859 Projectede Year End Balance $3,983,819 $4,441,755 $4,270,513 $4,370,963 $4,320,988

CAPITAL RESERVE FUND REVENUES CAPITAL RESERVE FUND EXPENSES

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WATER OPERATING FUND: The Water Operating Fund is for the water project of the NLTMA. Following payoff of this loan, we will be dedicating the lines to the City of Lebanon Authority (CoLA) and this fund will be closed. We have 3 properties that are not connected. Two of those not connected are health related. Tapping Fees – Connection into the public water is $3,900/EDU for residents within the water project area. At the September 10, 2015 Authority meeting, the Board took action to refinance the water bonds using a bank loan through Adams County National Bank (ACNB). The interest rate

• n the loan is 2.66% for the first 8 years then switches to a variable rate at 66% of Prime

with a cap of 4.25% for the remainder of the loan. This loan can be pre-paid at any time and is scheduled to be paid off in 2035 and utilizes a more evenly distributed payment

• structure. The last couple of years the Authority has made additional payments on the

principal which has reduced the length of the loan and the amount of interest we will need to pay. The 2020 water rate will remain the same at $60/Quarter per EDU. The $60/Quarter is billed by CoLA to our residents and turned over to the NLTMA for our loan payments. A copy of our current amortization schedule with ACNB Bank follows the Revenue and Expenses of the Water Operating Fund. We continue to make additional payments on the principal with the monies collected from the tapping fees. It is the goal of both Boards to reduce this debt, as much as possible over the next ten years. The last payment is due in 2035.

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As of 9/30/19

ACCT # DESCRIPTION 2020 BUDGET 2019 BUDGET 2019 YTD * 2018 ACTUAL 2017 ACTUAL Cash On Hand - Checking 87,250 224,874 204,100 147,497 177,784 CDs 341.000 Interest Earnings 2,500 2,000 2,093 2,820 172 361.320 Recording/Admin Fee Collected 50 361.340 Reimbursable Legal Fees 3,400 361.360 Tapping Fees 73,000 51,000 31,665 103,075 80,340

Crossings-Ph3-28 lots @$3400/each-10 EDU/yr Mapledale-38 lots @3900/each-10 EDU/yr

378.900 Debt Collection - CoLA 174,500 169,000 140,095 169,087 162,776 EDU count 2019 = 758 (as of 8/1/19) 174,500 169,000 140,095 169,087 162,776

758*$60*4=181,920*96%=174,643

250,000 222,000 173,853 275,032 246,688

As of 9/30/19

ACCT # DESCRIPTION 2020 BUDGET 2019 BUDGET 2019 YTD * 2018 ACTUAL 2017 ACTUAL 448.300 Bank Fees 600 500 440 636 90 448.311 Auditor Fees 1,500 1,500 1,113 1,963 1,912 448.314 Legal Fees 50 473.100 Loan ACNB - Principal (2035) 93,000 90,000 90,000 88,000 86,000 473.110 Loan ACNB - Addt'l Principal 73,000 51,000 145,000 75,000 131,837 473.200 Loan ACNB - Interest 50,274 47,405 52,563 52,830 57,086 Total Projected Expenses 218,374 190,405 289,116 218,429 276,975 Current Year Revenue Grand Total 250,000 222,000 173,853 275,032 246,688 BUDGET (Remaining Funds) 31,626 31,595

• 115,263

56,603

• 30,287

Total Funds Available $337,250 $446,874 $377,953 $422,529 $424,472 Total Expenditures $218,374 $190,405 $289,116 $218,429 $276,975 Projected Year End Balance $118,876 $256,469 $88,837 $204,100 $147,497

WATER OPERATING FUND REVENUES WATER OPERATING FUND EXPENSES

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The following is a copy of our amortization schedule for the water loan with Adams County Bank.

Payment Date Beginning Balance (Principal) Principal Interest Extra Payment on Principal Total Payment Ending Balance (Principal)

• Sept. 2016

2,197,000.00 74,000.00 13,629.84 0.00 87,629.84 2,123,000.00 March 2017 2,123,000.00 28,222.60 81,700.00 109,922.60 2,041,300.00

• Sept. 2017

2,041,300.00 86,000.00 26,244.65 52,755.35 165,000.00 1,902,544.65 March 2018 1,902,544.65 25,135.58 0.00 25,135.58 1,902,544.65

• Sept. 2018

1,902,544.65 88,000.00 25,303.00 32,390.00 145,693.00 1,782,154.65

• Nov. 2018

45,000.00 1,737,154.65 March 2019 1,737,154.65 26,065.71 100,000.00 126,065.71 1,637,154.65

• Sept. 2019

90,000.00 26,497.74 45,000.00 161,497.74 1,502,154.65 March 2020

• Sept. 2020

93,000.00 March 2021

• Sept. 2021

96,000.00 March 2022

• Sept. 2022

98,000.00 March 2023

• Sept. 2023

101,000.00 March 2024

• Sept. 2024

76,000.00 March 2025

• Sept. 2025

80,000.00 March 2026

• Sept. 2026

83,000.00 March 2027

• Sept. 2027

87,000.00 March 2028

• Sept. 2028

90,000.00 March 2029

• Sept. 2029

96,000.00 March 2030

• Sept. 2030

99,000.00 March 2031

• Sept. 2031

103,000.00 March 2032

• Sept. 2032

109,000.00 March 2033

• Sept. 2033

113,000.00 March 2034

• Sept. 2034

118,000.00 March 2035

• Sept. 2035

417,000.00 WATER LOAN - ACNB (Gettysburg)