The document provides an overview of the proposed 2018 operating budget and capital improvement plan for the Borough. It discusses the capital improvement planning process and lists proposed capital projects for 2018 totaling $4.7 million to be funded from various capital funds. It also summarizes the proposed 2018 operating budgets for various public works departments and funds totaling $19.1 million, with personnel expenses accounting for the largest portion. The document outlines the budget review process and calendar for the remainder of 2017.

1. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
2018 OPERATING BUDGET
Review of Capital Improvements and Public Works
November 13, 2017

2. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
CAPITAL IMPROVEMENTS OVERVIEW
• Each year, a 5-year Capital Improvement Plan (CIP) is
developed, which includes an assessment of the condition
of various infrastructure and other critical public assets
• The CIP includes only those items having a value of $25,000
or higher and an estimated life of six years or longer
• Acquisition of property
• Purchase of new equipment (not covered by depreciation previously
set aside and funded by the Asset Replacement Fund)
• Major rehabilitation or replacement of existing facilities or new
construction
• Consulting fees for special one-time projects with a cost in excess of
$25,000

3. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
CAPITAL IMPROVEMENTS OVERVIEW
• Projects are awarded points based upon a scoring and
prioritization system
• Thirty (30) point scoring system is reviewed and confirmed each year
• Prioritization categories - "Must Do", "Should Do", and "Could Do"
• Once a project has been approved for inclusion in the CIP,
it is considered for funding during development of the
Budget, subject to the availability
• Not every project that is approved in the CIP receives a
budget appropriation

4. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
CAPITAL IMPROVEMENTS OVERVIEW
CAPITAL FUND $3,215,125
7 Unfunded Projects
Park Land Acquisition/Improvements
Bicycle Facility Improvements
Energy Savings Project
Action Sports Park
Parks Maintenance Reserve
High-Speed Internet Infrastructure
Stormwater Projects
$382,000
$23,000
$75,000
$75,000
$5,000
$10,000
$70,000
$124,000
ASSET REPLACEMENT FUND $218,550
ENTERPRISE FUNDS $1,332,558
Sanitary Sewer Fund (2 projects)
Parking Fund (1 project)
Compost Fund (1 project)
$1,031,280
$40,000
$261,478
TOTAL FUNDING $4,766,233

5. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
2018 CAPITAL FUND PROJECTS
TITLE AMOUNT
Aerial Photography Update $30,000
Development Market Analysis $40,000
Government Buildings Maintenance Reserve $128,000
Municipal Building Improvements $50,000
Street Reconstruction $859,125
Street Resurfacing $510,000
Traffic Signal and Intersection Safety Improvements $530,000
*Park/McKee Pedestrian Island $200,000
Atherton Corridor Improvement Project $91,000
*East Beaver Avenue Streetlights $527,000
Central Business District Streetlights (CDBG Fund) $250,000
TOTAL $3,215,125
*indicates grant funding

6. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
2018 ENTERPRISE FUNDS PROJECTS
TITLE AMOUNT
SANITARY SEWER FUND
Sanitary Sewer Rehabilitation $867,280
Sanitary Sewer Inflow & Infiltration $164,000
PARKING FUND
Beaver Garage and McAllister Deck Maintenance $40,000
COMPOST OPERATIONS FUND
*Compost Facility Improvements $261,478
TOTAL $1,332,558
*indicates grant funding

7. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
2018 OPERATING BUDGET
Review of Public Works
November 13, 2017

8. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
Public Works

9. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS NET EXPENSES
(excluding Capital Fund)
FUNCTION / FUND EXPENSE
INTER-
DEPARTMENT/
FUND CHARGES
NET COST
2017 – 2018
% CHANGE
(NET)
ADMINISTRATION $1,458,323 ($1,002,141) $456,182
FACILITIES $1,145,191 ($190,480) $954,711
STREETS $4,146,722 ($1,794,014) $2,352,708
TREES/PARKS $816,828 $816,828
REFUSE/COMPOST $4,309,409 $4,309,409
SANITARY
SEWER
$6,753,768 $6,753,768
BUS TERMINAL $60,544 $60,544
FLEET SERVICES $493,956 $493,956
TOTAL $19,184,741 ($2,986,635) $16,198,106 10.4%

10. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS – BY FUND
(including Capital Fund)

11. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS – BY FUNCTION
(including Capital Fund)

12. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS - ADMINISTRATION
2015 Actual 2016 Actual 2017 Budget
2017 YE
Projection
2018 Proposed
OTHER EXPENSE $- $- $- $- $-
CAPITAL $20,671 $17,852 $9,678 $9,677 $9,918
OPERATING $103,277 $75,146 $100,655 $81,582 $96,663
PERSONNEL $1,217,858 $1,160,612 $1,286,397 $1,275,192 $1,351,742
TOTAL $1,341,806 $1,253,609 $1,396,730 $1,366,451 $1,458,323
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
p. 187 - 193

13. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
Personnel 5.1%
Operating (4.0%)
Capital 2.5%
Total Expense 4.4%
Net Expense 2.2%
PUBLIC WORKS - ADMINISTRATION
MISSION
• Administer the activities of the
various divisions of the Public
Works Department in a cost-
effective manner and provide
engineering and technical support
services to all departments of the
Borough.
p. 187 - 193
HIGHLIGHTS
• Focus on storm water permit
(MS4)

14. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS - FACILITIES
2015 Actual 2016 Actual 2017 Budget 2017 YE Projection 2018 Proposed
OTHER EXPENSE $- $- $- $- $-
CAPITAL $38,975 $34,000 $34,000 $34,000 $50,874
OPERATING $373,154 $344,438 $516,968 $521,551 $528,441
PERSONNEL $487,230 $527,883 $575,449 $543,569 $565,876
TOTAL $899,359 $906,321 $1,126,417 $1,099,120 $1,145,191
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
p. 194 - 200

15. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS - FACILITIES
MISSION
• Maintain Borough facilities in a
safe, clean and efficient manner
to best serve the community.
HIGHLIGHTS
• Schlow Library shared services
revenue of $132,000.
• $23,000 to fund repairs to the
fountain and improvements to
the landscaping at the Municipal
Building.
p. 194 - 200
Personnel (1.7%)
Operating 2.2%
Capital 49.6%
Total Expense 1.7%
Net Expense 1.8%

16. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS - STREETS
2015 Actual 2016 Actual 2017 Budget 2017 YE Projection 2018 Proposed
OTHER EXPENSE $- $- $- $- $-
CAPITAL $23,901 $23,801 $47,452 $47,452 $21,692
OPERATING $154,825 $179,975 $254,542 $233,789 $256,887
PERSONNEL $1,910,707 $2,255,776 $2,546,676 $2,531,942 $2,595,033
TOTAL $2,089,434 $2,459,552 $2,848,670 $2,813,183 $2,873,612
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
p. 201 - 206

17. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS - STREETS
MISSION
• Maintain the Borough's
infrastructure, including
streets, storm sewers, street
lighting, signs, and traffic
signals in a manner that
addresses public need,
safety, and welfare for all
modes of transportation.
HIGHLIGHTS
• $10,000 to fund the refurbishment
of street furniture, such as
benches, bike racks, and refuse
containers.
p. 201 - 206
Personnel 1.9%
Operating 0.9%
Capital (54.3%)
Total Expense 0.9%
Net Expense (6.7%)

18. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS – TREES / PARKS
2015 Actual 2016 Actual 2017 Budget 2017 YE Projection 2018 Proposed
OTHER EXPENSE $- $- $- $- $-
CAPITAL $20,562 $35,983 $26,092 $26,092 $26,846
OPERATING $330,178 $755,350 $745,120 $730,528 $777,982
PERSONNEL $245,564 $900 $12,200 $4,650 $12,000
TOTAL $596,304 $792,233 $783,412 $761,270 $816,828
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
p. 207 - 212

19. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
PUBLIC WORKS – TREES / PARKS
MISSION
• Maintain a safe, healthy urban
forest, including trees and shrubs
along rights-of-way, in parks and
parking lots, as well as on other
municipal property. The Division
also strives to improve the
aesthetic quality of the Borough
through the installation and
maintenance of landscaping and
flowers on public lands.
HIGHLIGHTS
• Provides plant materials and
tools for volunteers groups as
well as community service.
• Maintenance of the urban forest
continues to be a challenge.
p. 207 - 212
Personnel (1.6%)
Operating 4.4%
Capital 2.9%
Total Expense 4.3%
Net Expense 4.4%

20. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
BUS TERMINAL FUND
2017 Budget 2018 Budget % Change
REVENUE $33,400 $34,378 2.9%
GENERAL FUND
TRANSFER
$16,192 $26,166 61.6%
EXPENSE ($39,589) ($43,422) 9.7%
INDIRECT COSTS ($10,003) ($17,122) 71.2%
TOTAL $- $-
p. 213 - 216
• Facility owned by PSU and leased to Borough with agreement on
operations and maintenance
• No major changes in revenue, expenses, or services
• Support from General Fund continues to be minimal

21. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
COMPOST OPERATIONS FUND
2017 Budget 2018 Budget % Change
Revenue $34,378
General Fund Transfer $26,166
Expense $60,544
p. 217 - 221
• Inter-municipal contracts for leaf composting
• Food received for composting is increasing due to expanding
interest in commercial food collection
• Will be evaluating materials accepted and impact on
operating expenses
• Marketing to increase sales
2017 Budget 2018 Budget % Change
REVENUE $418,025 $496,625 18.8%
REFUSE FUND
TRANSFER
$63,425 $58,425 (7.9%)
EXPENSE ($608,403) ($542,492) (10.8%)
INDIRECT COSTS ($18,115) ($16,032) (11.5%)
TOTAL ($80,068) ($3,474)

22. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
SANITARY SEWER FUND
p. 222 - 227
• Includes costs of operating collection system
• Includes charges for conveyance and treatment
• Contract with State College Borough Water Authority for billing
services
• UAJA sewer tapping fee increase
• Revenues and expenses increase with new downtown developments
2017 Budget 2018 Budget % Change
REVENUE $6,064,000 $6,428,000 6.0%
OPERATING EXPENSE ($4,871,414) ($5,105,666) 4.8%
CAPITAL EXPENSE ($1,101,557) ($1,510,392) 37.1%
INDIRECT COSTS ($141,618) ($127,210) (10.2%)
TOTAL ($51,589) ($325,768)

23. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
REFUSE COLLECTION FUND
p. 228 - 233
2017 Budget 2018 Budget % Change
REVENUE $3,352,000 $3,358,150 0.2%
OPERATING EXPENSE ($2,721,864) ($2,696,420) 2.6%
CAPITAL EXPENSE ($497,176) ($728,614) 46.6%
INDIRECT COSTS ($165,436) ($154,060) (6.9%)
TRANSFER TO COMPOST ($63,425) ($58,425) (7.9%)
TOTAL ($111,581) ($392,735)
• Comprehensive refuse collection for routine situations but not including roll-off
dumpsters
• Container and route changes in 2017 to consolidate stops and reduce time
spent at particular locations for more effective, efficient, operations
• Closely monitoring rates and expenses in commercial sector
• Increased interest and requests for organics collection from commercial
customers both inside and outside the Borough

24. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
FLEET SERVICES FUND
2017 Budget 2018 Budget % Change
REVENUE $397,376 $493,510 24.2%
GENERAL FUND TRANSFER $118,204 $- (100%)
EXPENSE ($407,740) ($383,723) (5.9%)
INDIRECT COSTS ($111,438) ($110,233) (1.1%)
TOTAL ($3,598) ($446)
p. 234 - 238
• Enterprise Fund providing service to Borough vehicles and equipment
• Continue to focus on transition to energy-efficient vehicles
• Improved labor and material cost tracking

25. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
HIGHWAY AID FUND
2017 Budget 2018 Budget % Change
Revenue
Expense
p. 239 - 242
2017 Budget 2018 Budget % Change
Revenue $952,754 $1,002,457 5.2%
Expense ($1,067,050) ($1,273,110) 19.3%
TOTAL ($114,296) ($270,653)
• Gas tax and winter maintenance services revenue from the
Commonwealth
• Expenses include:
• materials for snow/ice control
• street and curb maintenance/repairs
• vehicle replacements
• traffic control devices/supplies
• street lighting and traffic signal operations/maintenance

26. 2018 OPERATING BUDGET | NOVEMBER 13, 2017
2018 BUDGET CALENDAR
Agenda Item Date
Budget Transmittal to Council October 16, 2017
Review of Executive Summary, Debt Management, and Pension October 20, 2017
Review of Receipts, Finance, Tax, Information Technology, and
Insurance Reserve
November 6, 2017
Review of Administration, Parking, and Regional Programs November 8, 2017
Review of Public Works Department and Capital Improvements November 13, 2017
Review of Planning and Neighborhood and Community
Services Departments
November 20, 2017
Review of Police Department November 21, 2017
Public Hearing and Council Review December 4, 2017
Council Discussion December 5, 2017
Final Wrap Up December 11, 2017
Adoption December 18, 2017