Friday, October 24, 2014
Inquirer Daily News

Lower Merion Township Manager makes recommendations for GF fund balance

The much anticipated finance committee meeting to discuss how to balance Lower Merion's General Fund fund balance isn't until until April 4, but Township Manager Doug Cleland outlined for recommendations.

Lower Merion Township Manager makes recommendations for GF fund balance

Following Lower Merion’s two finance workshops, Township Manager Doug Cleland outlined recommendations for use of the $6.9 million excess business tax revenue the township incurred in December.

In a township news release, Cleland listed four recommendations for getting the GF fund balance between 15 and 18 percent of annual expenditures. The recommendations are as follows:

  • Equipment Fund Contribution: In which Cleland recommends the board consider a General Fund contribution of $1 million to the Equipment Fund to increase reserve funding for future replacement of vehicles, radios and other equipment.
  • Insurance Trust Fund Contribution: A recommendation to the board for $200,000 in General Fund contributions to the Insurance Trust Fund in order to increase reserves for future insurance deductibles, uninsured liabilities and legal fees.
  • No RET millage rate increase for 2013 budget: The township manager asks the board to consider for recommendation sufficient funding in an amount to be determined by the board no later than Dec. 19, be retained in the General Fund to allow for a no increase in the 2013 real estate tax millage, as well as a forecasted 2013 ending GF fund balance of no less than between 15 and 18 percent of 2013 expenditures.
  • Delay or reduce Next New Money Bond Issue: The final of the four recommendations is for a General Fund contribution in an amount to be determined by the board by Dec. 19 to the Capital Projects Fund to enable a decrease or delay of the amount of issuance of a new money general obligation bond issue. This will allow for borrowing during 2013 to fund the 2013-2014 Capital Improvement Program.

In the release, Cleland said his rationale for the above recommendations was to replenish some of the reserves of the Equipment Fund and Insurance Trust Fund, as well as lower the amount of Lower Merion’s outstanding debt.

The April 4 finance committee meeting, where these recommendations will be discussed, will begin at approximately 6:15 p.m.

About this blog
Josh Fernandez is a 2011 graduate of Temple University where he studied journalism and gender studies. He was a writer and editor for The Temple News, and has interned at Philadelphia City Paper and the Philadelphia Daily News. Josh lived in Aston, Pa. in Delaware County before moving to University City in Philadelphia.

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