Ferguson Township approves tentative budget

Ferguson Township supervisors approved a tentative budget Monday that holds real estate tax rates for the ninth year in a row.

Township Manager Mark Kunkle said the budget can be summarized as “progressive with the resources available,” joking that he’s pleased the township budget will be adopted as required by law “as opposed to what’s happening with the commonwealth budget today.”

“The budget represents a major policy document that enables the accomplishments of the strategic direction of the township set forth in the strategic plan.” said Kunkle.

According to the budget, revenues total about $15.1 million with expenditures of about $16.5 million. The general fund balance is projected to have a 2016 ending total of about $4.2 million.

The township millage rate will hold at 2.4 mills, he said.

The overall $13.8 million budget is an increase of 6.7 percent compared with 2015, Kunkle said. Of this total budget, the general fund makes up about $11.4 million and will show an increase of 2.5 percent compared with 2015.

The budget provides for a 1 percent wage increase for nonuniformed employees and a 2.35 percent increase for police officers. It also includes the addition of one police officer and expanded use of part-time employees in the Public Works Department.

Other major drivers for the increase include expanded capital street projects, he said, including the West College Avenue sidewalk project, street resurfacing of West Cherry Lane and other roads and engineering studies of the intersection of Valley Vista and Bachman Drive.

Regional programs provided by Centre Region COG totaled about $1.7 million, he said, an increase of 3.9 percent from 2015. Township contribution make up 27 percent of the total COG budget.

On a positive note, he said, 2016 will mark the second to last payment the township will have on its debt service payments. After 2017, the only remaining debt service will be regional.

“The township has strong fund balances, low debt, wages are competitive, pensions are adequately funded and the capital needs are being met,” Finance Director Eric Endresen said in budget comments. “The township maintains a very conservative approach to financial operations and budgeting.”

The budget was unanimously approved following a public hearing. Final budget adoption is slated for Dec. 14.

This story was originally published December 9, 2015 at 7:01 PM with the headline "Ferguson Township approves tentative budget."