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Review of Receipts, Financial Services, Tax Services, Information Technology and Insurance Reserve
- 1. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 2018 OPERATING BUDGET Review of Receipts, Financial Services, Tax Services, Information Technology and Insurance Reserve November 6, 2017
- 2. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 2018 OPERATING BUDGET Review of Receipts November 6, 2017
- 3. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 GENERAL FUND REVENUE Pg. 8
- 4. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 DETAIL ON GENERAL FUND RECEIPTS Revenue Type 2017 Budget 2018 Budget % Change Taxes $14,401,066 $14,475,995 2.7% Licenses & Permits $354,500 $354,500 - % Interest & Rents $105,000 $105,000 - % State Aid (Pension) $871,057 $937,610 7.6% Sale of Materials $4,500 $4,500 - % Parking Meter Collections / Rentals $845,000 $975,000 15.4% Miscellaneous $1,000 $1,000 - % Indirect Cost Reimbursement (Other Funds) $1,142,334 $1,066,801 (6.6%) TOTAL $17,724,457 $18,233,619 2.9% Pg. 73 - 81
- 5. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 2018 OPERATING BUDGET Review of Financial Services November 6, 2017
- 6. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 FINANCIAL SERVICES
- 7. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 FINANCIAL SERVICES • Reduces staffing from 4.5 to 4 FTE’s • Reduced by 1.5 FTE’s in 2015 • Reduced by 0.5 FTE in 2017 budget • Reduced by 0.5 FTE in 2018 budget • In-house completion of the Cost Allocation Plan • Annual cost savings of $10,000 • Accounting Services • Harris Township - Revenue of $20,000 • C-Net – Revenue $3,650
- 8. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 2018 OPERATING BUDGET Review of Tax Services November 6, 2017
- 9. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 TAX SERVICES • Primary Functions • Collection Services for Real Estate Taxes • Collection Services for Local Services Tax • Incoming Mail Delivery Services for all Borough Departments • Petty Cash Reconciliation for Postage Due Account • No legislative or procedural changes during 2017, none expected for 2018 • LST may be consolidated at a county-wide level at a future date Pg. 101 - 106
- 10. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 REAL ESTATE – 2016 COLLECTION OVERVIEW 25.53% 74.47% SCB SCASD SCB Real Estate Tax collected $7,292,508 SCASD Real Estate Tax collected $21,269,077 2017 YTD as of 10/20/17 with 1.9% remaining duplicate balance to collect (SCB) $7,340,042 School District billed for its actual cost plus 20% overhead charges
- 11. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 RECAP OF HOMESTEAD EXCLUSION • Rental Housing Permit Audit Work detects a percentage of residences that require a prorated homestead exclusion PROPERTY CODES ELIGIBLE FOR HOMESTEAD EXCLUSION R Residential Under 10 Acres with House RA Residential Apartments (1 – 3 apartments) RC Residential with Commercial T Trailers No Land Over 2,000 Parcels qualified for Homestead Exclusion (as of 03/01/2017) Parcels Residential Under 10 Acres with House 1,897 100% Homestead 159 < 100% Homestead 52 Zero tax liability due to homestead (36 R + 16T)
- 12. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 FACTS & FIGURES HOMESTEAD EXCLUSION Year Eligible Parcels H/E Qualified Millage Rate Tax Before Homestead Tax After Homestead H/E Tax Tax Relief 2017 4,543 2,056 16.400 $2,401,391 $1,567,061 $834,330 2016 4,496 2,058 16.400 $2,393,402 $1,557,876 $835,526 2015 4,500 2,100 14.400 $2,134,565 $1,385,952 $748,613 2014 4,496 2,149 11.040 $1,667,457 $1,078,866 $588,592 2013 4,490 2,171 11.040 $1,677,862 $1,083,018 $594,844 2012 4,486 2,186 11.040 $1,684,494 $1,085,403 $599,091 2011 4,488 2,211 11.040 $1,702,574 $1,096,825 $605,748
- 13. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 LOCAL SERVICES TAX OVERVIEW • Online Payment Options • Self-employed and individuals who need to remit LST (no employer withholding) • Online filing usage continues to grow • Tax Office staff review employers with filing errors • Staff encourages employers and individuals to file electronically • SCB Tax Office receives 3% commission of net collections
- 14. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 LST COLLECTIONS 2016 (LAST COMPLETEYEAR) • Distribution per school district with SCB’s share (35.03%) shown in purple (separate from State College Area School District shown in green) COMMISSION EARNED BY SCB | $68,657 3.07% 9.11% 52.79% 35.03% LST Revenue Collected BEASD BASD SCASD (less SC Borough) SCB
- 15. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 CENTRE TAX AGENCY (PP. 107-111) Personnel Expenses • Staffing Levels = 8.0 FTE • Annual Report will provide detailed revenue and expenditures • As of 10/20/2017, staff members maintained: • 6,755 Employers • 55,839 Individual Resident Tax Returns Pg. 107 - 111
- 16. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 COUNTY-WIDE RECEIPTS (AUDITED FINANCIAL STATEMENT) EXCLUDES PRE-ACT 32 REVENUE Year Audited Cash Receipts Audited SCB Less 2.4% Commission Net SCB Commission Adjustment Calendar Year Receipts SCB % County-Wide 2012 $43,870,110 $3,413,092 $81,921 $3,331,171 $25,154 $3,356,325 7.65% 2013 $60,857,758 $4,468,643 $107,230 $4,361,413 $27,829 $4,389,242 7.21% 2014 $62,079,283 $4,534,199 $108,799 $4,425,400 $20,672 $4,446,072 7.16% 2015 $57,697,216 $4,237,706 $101,706 $4,136,000 $23,439 $4,159,439 7.21% 2016 $66,264,675 $5,094,751 $122,285 $4,972,466 $41,792 $5,014,258 7.57%
- 17. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 OPERATING EXPENDITURES EXPENDITURES BY CATEGORY Personnel $690,258 69.70% Operating $188,842 19.07% Capital $ - 0.00% Indirect $111,213 11.23%
- 18. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 CAPITAL EXPENDITURES • Minimal Capital Costs Planned • The benefit of a capital outlay would need to exceed the costs to be considered • Vision on longer term operations would include an enhanced scanning option for importing paper tax returns • Pursuing this capability may require a renewed contract for tax collection services
- 19. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 STRATEGIC OBJECTIVES • Act 32 Tax Collection Contract • New contract for 2017 (Five years plus two one-year extensions) • Public Engagement • Continued Outreach and Public Information • Regular Open Houses • Employers (Upon request) • Individual Taxpayers (Four school districts with two Saturday events) • Third Party Use Growth • Provide convenient one-stop filing options • Hold operating costs at an acceptable level • Report back to Council with Annual Report (March 2018)
- 20. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 2018 OPERATING BUDGET Review of Information Technology November 6, 2017
- 21. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 INFORMATION TECHNOLOGY DIVISION • Strategic Connection • Expenditures • Revenues • Program/Project Highlights Pg. 112 - 118
- 22. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 INFORMATION TECHNOLOGY DIVISION STRATEGIC PLAN • #2 Operational Efficiency: • Borough-wide Business Processes • Access to Data for Improved Services • #3 Partnerships: • Research Private/Public Partnerships • Local Organizations and Other PA Agencies • #5 and #6 Infrastructure and Commercial Revitalization: • Include Information Systems • Environment Not Limited by Bandwidth or Access Pg. 112 - 118
- 23. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 INFORMATION TECHNOLOGY DIVISION • Operating $422K (29% ) • Expected Increase for Licenses and Support • Reduced Revenue • License Compliance and Management • Personnel $750K (1.5% ) • Staff Count: 8 • Benchmark: 16 • Recommended: 10 • Capital $68K (14% ) • Standardize at the Staff Level • Extended Equipment Life Cycles EXPENDITURES PERSONNEL, $749,187OPERATING, $422,837 CAPITAL, $68,540 Pg. 112 - 118
- 24. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 INFORMATION TECHNOLOGY DIVISION REVENUE • Managed Services (-15%) • CATA, Infrastructure Services + Building Project • Patton Twp., Full IT Services • College Twp., VoIP Services (Phones) • PD RMS Hosting (PSU, Patton, Ferguson) • Other Sources for Funding • Hosting Servers (Private Cloud) for Schlow • Consolidated HVAC servers for Borough, COG and Schlow • Extended Security Cameras to Schlow • DR sites for other government agencies Pg. 112 - 118
- 25. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 INFORMATION TECHNOLOGY DIVISION PROJECTS AND OPERATIONS • Emerging Technologies • Agile Methodology • Smart Cities • AI • GIS-related Tool Sets • Services • Resiliency (IST Program) • Sustainability • Citizen Self-Services (24/7) • Improved Collaboration/Communication Pg. 112 - 118
- 26. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 2018 OPERATING BUDGET Review of Insurance Reserve November 6, 2017
- 27. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 INSURANCE RESERVE • $1.4M Risk Reserve account for Workers’ and Unemployment Compensation claims. Excess funds may be programmed for use in the General Fund. Pg. 125 REVENUES - Interest Earnings $10,000 EXPENSES - Unemployment Compensation claims - Affordable Care Act fees - Retiree Health Insurance - Employee Wellness - Insurance Claims Deductibles $20,000 $9,100 $10,000 $20,000 $35,000 OTHER SOURCES (USES) - Health Insurance premium refunds - Transfer to General Fund $200,000 ($11,216)
- 28. 2018 OPERATING BUDGET| NOVEMBER 6, 2017 INSURANCE RESERVE EXPENSES Pg. 125
- 29. 2018 OPERATING BUDGET| NOVEMBER 6, 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 Continued review of Public Works Department (if needed) November 14, 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