Township Finances On Target, CFO Says

Lower Merion Township's 2012 finances are on target, Chief Financial Officer Dean Dortone told the township's Finance Committee on Wednesday.

Dortone gave a short presentation on 2012 Quarter 1 General Fund finances at the May 9 meeting. The PDF of his presentation is attached to this article and is also available on the township website.

A few highlights from the presentation:

The township has collected $20.4 million, or 38 percent of the total 2012 revenue budget. The key sources for that revenue:

• Real estate transfer tax
• Real estate assessment growth (or decline)
• Business taxes
• Building permit fees

It's still early in the year, Dortone said, but so far there have been no major surprises. "This is the time of year that once we get the prior year closed out we begin updating our five-year financial forecast," he said.

Business tax returns were due April 17, and extension returns for business taxes are due Oct. 17, so there could be additional tax revenues that result from those returns—or, potentially refunds.

Real estate tax collections for the year so far are "good—they're comparable to where we should be ... we have a very good collection rate," Dortone said. So far, $17.2 million, or 57 percent of the real estate tax budget has been collected.

"We continue to monitor real estate assessments," Dortone said. In recent years, real estate assessment appeals have picked up in the summer months, and so far this year, six real estate assessment appeals are filed with the county, Dortone said.

As far as other revenue sources go, the township issued 553 building-related permits in the first three months of 2012, compared to 482 from January to March of 2011. "Permit activity volume is up and that's a good sign," Dortone said. 

The township is anticipating some budgetary savings this year due to:

• Several personnel vacancies
• Series 2012 A bond refunding, which will result in $273,000 in savings in 2012 and $100,000 annually from 2013-15
• A minimal number of winter storms (which results in savings in terms of materials and overtime pay)

See the attached PDF for more details on the presentation.

A financial update and budget workshop is scheduled for July 9.