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HomeMy WebLinkAboutWhitpain Township - Public Financial ReportPopular Annual Financial Report W HITPAIN TOWNSHIP, PA 2020For the Fiscal Year Ended December 31, TABLE OFCONTENTS 3 MISSION, VISION, VALUES 5 2020 HIGHLIGHTS 4 MANAGER'S MESSAGE 6 BOARD OF SUPERVISORS 8 FACTS & FIGURES 7 ORGANIZATIONAL CHART 9 ECONOMY & INDUSTRY 12 TAX DOLLARS @ WORK 11 EXPENSES 13 STATEMENT OF NETPOSITION 14 STATEMENT OF ACTIVITIES 15 LONG-TERM BOND DEBT 10 SOURCES OF GENERAL FUNDREVENUE "On behalf of the Board of Supervisors, I am pleased to present to you Whitpain Township’s third annual Popular Annual Financial Report (PAFR) for the year ending December 31, 2020. The financial information in this PAFR was derived from the Township’s Comprehensive Annual Financial Report (Annual Report). The Annual Report was prepared in conformance with Generally Accepted Accounting Principles (GAAP) and audited by the firm of Mallie, LLP. The Board of Supervisors, Elected Auditors, and staff members review the Annual Report at an annual public meeting. Readers seeking more detailed information are encouraged to read the Annual Report which is available at www.whitpaintownship.org or at the Township Building, 960 Wentz Road, Blue Bell, PA 19422. In the following pages, readers will receive an overview of the Township's financial outlook, review graphs and charts describing the 2020 Budget, and read about important projects and initiatives. The Township’s overall financial picture remains strong as evidenced by our Moody’s Aaa Bond Rating. MANAGER'S MESSAGE ROMAN PRONCZAK Township Manager P A G E 0 4 P A G E 0 5 Township receives Certificate of Achievement for Excellence in Financial Reporting Yost Road Bridge replacement Township-wide Walkability Study adopted Township maintains Moody’s Aaa Bond Rating Township adapts to Covid-19 US 202 Widening Project - construction continues Township purchases 65-acres of Open Space and begins master planning of Mermaid Park Over 6.5 miles of Township roads resurfaced 2020 HIGHLIGHTS PAGE 0 6 WHITPAIN TOWNSHIP WWW.WHITPAINTOWNSHIP.ORG Michele Minnick, Chair Michele is a 25-year resident of Whitpain Township. She is the Assistant Director of the Montgomery County Tax Claim Bureau, providing assistance to constituents facing financial difficulties, while recovering delinquent property taxes for all of the county. She and her husband, David, have two children: her son is a graduate of Syracuse University, and her daughter attends Elon University. Kimberly Koch, Vice-Chair Kimberly is a life-long Whitpain Township resident. She graduated near the top of her class from Wissahickon High School in 2001, and continued to pursue a strong Pennsylvania education by earning a bachelor's degree with summa cum laude standing from Bucknell University. Since then she has also completed a masters degree in English Literature from Villanova University, where she studied African American literature. Kimberly continues her academic pursuits with work in the field of education at Cabrini University. Fred Conner, Secretary Fred has been leading organizations in business, the military, and in his community for over three decades. Now as an independent management consultant, he divides his time between helping clients grow their business and serving the people of Whitpain. Fred has served the Township on the Open Space Committee from 2004 through 2008, the Planning Commission from 2006 to 2008, and on the Zoning Hearing Board in 2009. He has served on the Board of Supervisors since shortly after being elected in November 2009. Jeff Campolongo, Treasurer Jeff has a passion for community service and brings his integrity and progressive values to the Board of Supervisors. Professionally, Jeff is well known in the legal community as being a fierce advocate for his clients, emerging as one of the region’s premier employment and entertainment lawyers. Jeff has served on the Philadelphia Bar Association’s Board of Governors, and is an active board member of the WPEO, the LNGE, The TIME’S UP LDF, and the CHRCL. Joyce Keller, Assistant Secretary Joyce earned a bachelor’s degree in education and worked in Manhattan as an elementary school teacher for three years. Joyce went on to receive a degree in interior design from Parsons The New School. She is an active member of the Associates of Interior Design’s Philadelphia Chapter and has worked on several projects in Pennsylvania and New York. P A G E 0 6BOARD OF SUPERVISORS 94 Full Time Employees 10 Part Time Employees ORGANIZATIONAL CHART P A G E 0 7 WHITPAIN TOWNSHIP WWW.WHITPAINTOWNSHIP.ORG WHITPAIN TOWNSHIP WWW.WHITPAINTOWNSHIP.ORG Recognized as a Tree City USA in 2020 (25 consecutive years) Longest active recipient of Tree City Growth Award in PA (21 years) Gold Level Traffic Demand Management Award from GVFTMA Whitpain Police Department Accreditation by PLEAC GFOA Certificate of Achievement for Excellence in Financial Reporting for 9 consecutive years GFOA Certificate for Outstanding Achievement in Popular Annual Financial Reporting for 2 consecutive years. Recognition Approximately 16 miles from Philadelphia Population: 19,151 (2017 American Community Survey) 12.81 square miles 67.78 miles of roadway, 27 Traffic signals, & 215 total roadways 12 Parks, 490 acres of Township open space, & 761 acres of combined open space General P A G E 0 8WHITPAIN FACTS &FIGURES WHITPAIN TOWNSHIP WWW.WHITPAINTOWNSHIP.ORG The economic growth in the Township has been driven in large part by business and commercial development, but new residential construction continued in 2020 as well. Although there are major employers in the Township, notably the Montgomery County Community College, AETNA and Henkels & McCoy, Inc., the employment base is not dominated by one business or industry. Noting the list of Principal Employers below, the top employers comprised approximately 28% of the workforce in 2020. There continues to be a greater diversity of employers in the Township providing more stability for the Township to weather downturns in the economy. With a strong economic outlook, the Township continues to rank below the state and national averages for unemployment. The per capita and household income is among the leaders of municipalities in Montgomery County, which is one of the most prosperous in the Commonwealth of Pennsylvania. TOP EMPLOYERS/ MAJOR INDUSTRIES P A G E 0 9ECONOMY & INDUSTRY ECONOMIC GROWTH WHITPAIN TOWNSHIP WWW.WHITPAINTOWNSHIP.ORG 2020 Revenues Whitpain’s largest source of general fund revenue comes from the earned income tax which accounted for 46.44% of tax revenue in 2020. The next largest component of general fund revenue comes from the real estate tax which accounted for 27.7% of tax revenue in 2020. Real estate taxes have been held steady at 3.20 mills since 2010. The chart below depicts the Township's general fund revenue trend over the past three years. P A G E 1 0SOURCES OF GENERAL FUND REVENUE Real EstateTaxes Transfer Taxes Earned IncomeTaxes LocalService Taxes FeesLicenses & Permits Invest.Income & Rent Inter-Govern-mentalRevenues Fines& Forfeits ChargesFor Services Other Millage General Fund Fire Tax Fire Hydrant Debt Service 2.30 0.40 0.05 0.45 3.20 mills WHITPAIN TOWNSHIP WWW.WHITPAINTOWNSHIP.ORGWHITPAIN TOWNSHIP WWW.WHITPAINTOWNSHIP.ORG The Township paid $8.177 million for the property that was home to the Mermaid Swim and Golf Club since 1961. Without the acquisition, the Mermaid Lake property was destined for development. A developer had proposed a by-right plan for 53 single-family homes along with a large billboard in the parking lot of the property next to the Pennsylvania Turnpike. P A G E 1 1WHERE DOES GENERAL FUND REVENUE GO? Township Acquires Mermaid Lake Property The Whitpain Board of Supervisors reached an agreement to acquire the 65-acre Mermaid Lake property and preserve it for recreational use in July 2020. "My fellow Supervisors and I were pleased to permanently preserve this property for the enjoyment of our current residents along with generations to follow," said Supervisor Chair Michele Minnick. "Our community felt deeply on this issue and we were determined to do the necessary work to save it from development." After acquiring the property, Township crews worked quickly to develop walking trails throughout the property while removing any immediate hazards posed by deteriorating structures. In late 2020, the Township embarked on a series of public meetings to develop a master plan to determine future recreational uses on the property. 3-Year Trend Major Expenses The acquisition continues the Township's nearly 60-year commitment to resource conservation and recreation. That history includes the preservation of Prophecy Creek Park through a successful public-private partnership, the creation of Centre Square Park and the soon-to-open Wissahickon Park. The general fund is the largest single fund in the Township’s budget. The largest expenditure in the general fund is public safety. This budget category includes the Police, Fire Marshal, Code Enforcement and Zoning Departments. The next largest component of the general fund is attributed to Administration. This budget line item is inclusive of all expenses for the Engineering, Finance, Administration, and IT Departments, the Township Solicitor, and other associated expenses. The Engineering Department oversaw the replacement of the Yost Road Bridge in 2020. Bridge replacement was necessary because the original 60-year old bridge was substantially deteriorated and was subject to flooding during severe weather events. YOST ROAD BRIDGE REPLACED GENERAL FUND  TAX DOLLARS @ WORK Work was completed in the Spring of 2020 to reforest a portion of Jolly Road that abuts the Northeast Extension of the Pennsylvania Turnpike. Mature trees in this area were removed when the Turnpike Commission widened the Turnpike a number of years ago. GRANT MONEY AT WORK Turnpike Corridor Reforestation P A G E 1 2 The $50,000 project was made possible by a grant from Keystone Communities Program. Work for this project included adjustments to fencing, soil amendments, and the planting of more than 350 trees. As part of the project, streambank stabilization enhancements were completed to help minimize erosion. The current structure has a much larger opening for creek flows which reduces the chance of flooding during most storms. The new bridge is also better aligned with the roadway, has sidewalks on both sides, and has improved guiderails and safety walls. BEFORE AFTER STATEMENT OF NET POSITION The Statement of Net Position demonstrates the sound financial outlook for Whitpain as of December 31, 2020. The net position of the Township as of December 31, 2020 was $57.67M. The Statement of Net Position is presented here in summary format. For greater detail please see the Whitpain Township Comprehensive Annual Financial Report, which is available at www.whitpaintownship.org or in the Whitpain Township Administration building. P A G E 1 3 Assets Liabilities Net Position The Statement of Activities reports all financial activity for the fiscal year ended December 31, 2020 . The statement presents a summary overview describing how the Township’s net position changed during the year as a result of all revenues collected and expenses incurred . For a more detailed review of financial activity, please see the Whitpain Township Comprehensive Annual Financial Report which is available at www.whitpaintownship .org or in the Whitpain Township Administration building. STATEMENT OF ACTIVITIES P A G E 1 4 Long-Term Bond Debt As of January 1, 2020 Whitpain Township had $12,493,000 of outstanding debt from three bond issues. The first of these bond issues was used for the purchase of Prophecy Creek Park in 1999, the second was used for the purchase of fire apparatus in 2012, and the third was used for a number of projects in 2020. On August 27, 2020, the Township once again went to the bond market and issued $9,675,000 in General Obligation Bonds primarily for the acquisition of 65 acres to be used for recreational purposes. Moody’s has awarded Whitpain with the highest possible bond rating of Aaa. This rating was first issued in 2012 and subsequently reaffirmed multiple times. Currently, less than twenty other municipalities in Pennsylvania have received a Aaa bond rating. Moody’s determines credit ratings based on a municipality’s ability to meet its financial commitments. The Aaa rating means Whitpain has an extremely strong capacity to do so. The Aaa rating is due in part to the Township’s mature tax base, above- average wealth, healthy financial position, low debt and pension liability. P A G E 1 5