SAYRE MARS 11 12 10 8  6 5  Presentation of 2024 Budget November 1,2023 Vote to Advertise 2024 Budget November 15, 2023 Vote to Adopt 2024 Budget November 29, 2023        BOROUGH OF SAYRE 110 West Packer Avenue Sayre, PA 18840 Telephone: 570.888.7739 Fax: 570.888.6598 FACSIMILE TRANSMITTAL SHEET  TO:  FROM: DATE:  Classified Department COMPANY: The Morning Times RE: 2024 Budget  David M.. Jarrett, Borough Manager  November 16, 2023  Legal Notice  NOTICE IS HEREBY GIVEN that the proposed 2024 Borough Budget is available for inspection at the Borough Hall, on its website wwsayrehorowghor. and that the Sayre Public Library, 122 South Elmer Avenue during their normal business hours. The Borough Council will meet on Wednesday, November 29, 2022 at 5:30pm for general purposes including by not limited to the adoption of the 2024 Budget. The Borough Council meeting will be at the Sayre Borough Hall - Cyril "Cy" Morris Meeting Room - 3rd Floor, 110 West Packer Avenue, Sayre, Pennsylvania 18840. Any person with a disability requiring a special accommodation to attend a meeting should notify the Borough Administration Office at 570-888-7739, as early as possible, but no later than three days prior to a meeting. The Borough of Sayre will make every  effort to provide a reasonable accommodation.  David M. Jarrett Borough Manager  Print: November 17, 2022    RESOLUTION 4 2023-09  AF RESOLUTION OF THE BOROUGH OF SAYRE, BRADFORD COUNTY, COMMONWEALTH OF PENNSYLVANIA, FIXING THE TAXE RATE ON REAL PROPERTY FOR THE 2024 FISCAL YEAR WHEREAS, Section 1302 of the Pennsylvania Borough Code, 8 Pa. C.S.A1302, provides the Council of the Borough of Sayre with the power to levy taxes on real property within the Borough of Sayre ("'Borough"), by resolution for taxes levied at the same rate as  orarate lower than the previous fiscal year; and  WHEREAS, the Council of the Borough desires to set a tax rate on real property for the 2024 fiscal year at the same rate as or lower than the rate for the 2023 fiscal year in  accordance with all applicable laws and regulations.  NOW, THEREFORE, BE IT RESOLVED by the Borough Council of Sayre Borough, Bradford County, Pennsylvania, that a tax be and the same is hereby levied on all real property with Sayre Borough subject to taxation for the fiscal year 2024 as follows;  SECTION1. That a tax be and the same is hereby levied on all real property within the Borough subject to taxation for general Borough purposes, in the sum of 14.50 mills on each dollar of assessed valuation, or the sum of $14.50 on each one thousand dollars of assessed valuation, being $14.50 for each $1,000.00 of assed SECTION2. All other municipal tax rates are to remain unchanged. SECTION3 3. All prior resolutions, or part of any resolutions, conflicting with this resolution be and the same is hereby repealed in whole or in part to the extent RESOLVED AND ADOPTED this 29th day of November, 2023, by the Council of the  valuation.  inconsistent herewith.  Borough Sayre, in lawful session duly assembled.  ATTEST:  Borough of Sayre Patrick Gillette Borough Council President  BY:  David M. Jarrett Borough Secretary CERTIFICATION  ,David M. Jarrett, Borough Secretary of Sayre Borough, Bradford County, Pennsylvania, do hereby certify that the foregoing is a true and correct copy of the Resolution duly adopted at a regular meeting of Sayre Borough Officials held on November 29, 2023.  (SEAL)  BY:  Borough Secretary    CH oF  2024 Budget Message  (NC.189)  David M. Jarrett, Borough Manager Taylor Landis, Borough Treasurer  Kandy Ferguson, Administration Services Coordinator  November 15, 2023  Council President Patrick Gillette, Members of the Borough Council, and Mayor Henry lam pleased to submit to you for your review and consideration the revised 2024 budget which totals $9,263,325.00 which is approximately $80,000.00 less than the The budget process began in June with the coordination of data to help Department Heads prepare their respective budget requests. Iwould like to acknowledge the Department Heads for taking the time to prepare and submit realistic budget requests This year has been an interesting year for the Administration Department. The year began with a staff of only three (3) full-time employees as we navigated the process of submitting year end reports to the appropriate state agencies and preparing for the 2022 audit process. The Department welcomed a new per diem office assistant (Lynn Kennedy) and a new Borough Treasurer (Taylor Landis) prior to the end of February. The onboarding process for Miss Landis has gone relatively smooth considering the amount ofi information that needed to be shared to provide her with a general understanding of the Borough's financial status. An extensive amount of time was spent in 2023 streamlining several of our processes to improve the efficiency including the development of the 2024 budget. Ms. Ferguson and Miss Landis were instrumental in the development of this budget and together we have prepared a foundation for the development of future budgets that will contain pertinent information of the Borough's The 2024 budget complies with the Borough Code and the requirements of the Commonwealth of Pennsylvania. It represents our commitment to strong financial management practices, and our strategic plan for continued growth and a sustained  Farley:  preliminary draft budget presented to you on November 1, 2023.  and taking into consideration the availability of funding for 2024.  financial situation.  future.    The budget is a comprehensive document that addresses anticipated revenues and expenditures for all Borough operations including general government, police, streets, sanitary sewer system, recreational improvements, facility improvements, downtown The annual budget is the single most important policy document adopted by Borough Council each year. The budget guides the management of the Borough throughout the year by clearly setting forth the goals and objectives of the Council for the coming year and authorizing the programs that will be carried out to meet those objectives. The budget document also sets forth the management plan for implementing the programs and achieving the community goals and objectives. As the Borough Council's number one policy statement, the budget accomplishes the following:  façade improvements, community events, and capital expenses.  ECONOMIC DEVELOPMENT INITIATIVES ARE PURSUED  SERVICE LEVELS ARE SET PARTNERSHIPS ARE NOURISHED NEWTECHNOLOGY IS ACQUIRED  COMMUNITY SECURITY IS ENHANCED THROUGH PUBLIC SAFETY BOROUGH EMPLOYEES ARE SUPPORTED IN DELIVERING EFFICIENT AND  EFFECTIVE SERVICES  PUBLIC INFRASTRUCTURE IS MAINTAINED RECREATION FOR CITIZENS IS PROVIDED  PUBLIC HEALTH IS PROTECTED BY RECYCLING, WASTE COLLECTION AND WATER  RESOURCES  RELIABILITY OF UTILITY SERVICES IS FUNDED  THE BOROUGH'S FINANCIAL INTEGRITY IS MAINTAINED TO MEET SERVICE AND DEBT OBLIGATIONS OF NOT ONLY THE BOROUGH BUT ALSO THE VALLEY JOINT  SEWER AUTHORITY.  CUSTOMER SERVICE IS ENHANCED  IMPROVED QUALITY OF LIFE IS SOUGHT FOR ALL CITIZENS  The budget sets the annual operating and capital budgets, as well as, the capital improvement program for the future. The budget and capital improvement program recognizes the importance of well-planned improvements and replacements that are necessary to protect the Borough's public facilities. Therefore, the budget document not only serves as a policy guide for the coming year, but it also establishes a long- range planning document that provides the framework for sound financial decision- making and establishes the foundation for a strong and dynamic future for the  community.    The total 2024 operating budget is valued at $9,263,325.00. The General Fund portion oft the budget is balanced and totals $5,497,880.00 in revenues and $5,497,880.00 in expenses. The General Fund budget does not require a tax increase, however a portion of the Borough's Natural Gas Impact Fee revenue has been earmarked for The Borough's 2024 millage rate will remain at 14.50 mills and will generate $1,240,000.00 in revenue. An additional $2,000,000.00 in revenue will be generated by the Borough's Earned Income Tax, $200,000.00 in revenue is generated by the Borough's Local Service Tax, and $240,000.00 in revenue from Natural Gas Impact Fees. The General Fund's Cash on Hand for 2024 is projected to be $270,000.00. The Borough's payroll and health insurance expense in 2024 totals more than $3,000,000.00 which accounts for approximately 50% of the entire General Fund budget. The remaining 2024 expenditures in all funds remain fairly consistent, reflecting the Borough's commitment to control expenses while ensuring the continued  street paving.  delivery of services in the most cost-effective manner.  BASIC POLICIES AND ASSUMPTIONS:  Ab basic premise in preparing the 2024 Budget is that there will be no increase in real estate tax rates to fund day-to-day operations following the 2.0 mill tax increase in 2023. The Borough's millage rate has only increased 6.5 mills since  1999.  Itis the Borough's policy to estimate revenues conservatively.  Existing levels of service shall be maintained.  Itis the Borough's policy to minimize borrowing. Borrowing is for capital expenditures and only when sufficient current funds are not available or municipal needs are unable to wait until current funds are available. The Borough will budget adequate funds to maintain all its assets at a level which protects the borough's capital investment and minimizes future repair and The Borough will project its equipment and vehicle replacement needs for the All departments will budget contributions to Capital Reserves based on their estimated future share of costs for the replacement of vehicles and equipment, and for future maintenance and improvements to borough-owned facilities and Utility fees will be set at a level that fully supports the direct and indirect costs of  replacement costs.  next ten years and will update this projection each year.  buildings.  providing service, including funding of Capital Reserves.    The Salary & Wage Schedule will be adopted by Resolution of Borough Council Idle cash (Capital Reserve funds) will be invested on a continuous basis in legal, The Borough Manager will actively pursue all State, Federal and private grant sources available for major equipment purchases and projects.  annually for per diem staff.  safe investments with adequate liquidity and yield.  COMPARISON OF TAXING AUTHORITIES  The majority of properties in the Borough have not been reassessed since 1999 and there is no indication that the County Commissioners intend to undertake a county- As an example, a homeowner in the Borough with a home assessment of $32,500.00 pays $471.00 in Borough real estate tax. This revenue funds the most basic borough services such as police protection, fire protection, street sweeping, snow plowing, street resurfacing, traffic signals, recreation, trash and recycling collection, drop-off recycling center, yard waste and leaf collection, code enforcement, playgrounds, street lighting and other similar activities. These borough services, and the corresponding borough property tax, represent less than 19% of the total property tax bill paid by borough The Borough has enjoyed remarkable change over the past two decades including but not limited to the following projects; completion of infrastructure improvement projects, improved accessibility at Island Pond, numerous streets have been improved, the construction of a new DPW facility, a new police station, purchased $1.8 million worth of new fire apparatus, upgrading over 400 street lights to LED fixtures, and the coordination of community events such as the Concerts in the Parks program, End of Summer Celebration, and Christmas Parade. Each and every Council during that period has enhanced the quality of life of our residents by completing the previously Other notable accompishments include the $300,000.00 ADA crosswalk improvement project, $400,000.00 Borough Hall Elevator Project, $500,000.00 Diahoga Trail Project, $600,000.00 Hayden Street Pump Station Improvement Project and $700,000.00 The incoming Borough Council will continue to work toward implementing objectives outlined in the Borough's SWOT sessions, developing and implementing shared service initiatives extending municipal services to neighboring municipalities, complete improvements to the Borough's neighborhood parks, and utilization of solar power to  wide reassessment.  taxpayers.  referenced projects and undertaking their own new initiatives.  streetscape project.  reduce electricity costs.    The Borough Council has made a substantial investment in its fleet of vehicles and specialized equipment, increased the number of full-time patrol officers, increased the number of full-time and per diem fire truck drivers, and increased the utilization of per diem staff in the Public Works Department. The Borough has been fortunate to secure nearly $5,000,000.00 in grant funds the majority of which has been for the expansion of the Borough's recycling center facility, flood control, and recreation. The Borough had very little General Fund debt prior to the purchase of the new $1.2 million Pierce 100' Aerial Quint in 2022. A$3,528,000.00 line of credit was secured from First Citizens Community Bank (FCCB) for purchase of the new Quint and future capital projects. The line of credit has a very attractive interest rate of1 1.99% through 2028 before adjusting to 4.0% in 2029 for the remainder of the loan. The total cost of the new Quint in principal and interest will total nearly $1.7 million dollars when  the line of credit is paid in full. ANALYSIS OF GENERAL FUND REVENUES  This chart illustrates the breakdown of revenues into the general fund showing that Earned Income Tax revenue generates the greatest amount of tax revenue.  GENERAL FUND REVENUES  EARNED  REAL ESTATE TRANSFER ESTATE TRANSFER TAX BENEFITS  REFUSE NATURAL GAS  LOCAL  INCOME TAX TAX & REAL FROM SEWER- COLLECTION IMPACT FEES SERVICES TAX  WAGES  FEE  Earned Income Tax - The earned income tax is a % percent tax on all earned income for Borough residents and 1% percent tax on all earned income for out of state residents. The Borough's earned income revenue has increased each year due in part to the fact that the Guthrie Healthcare System with more than 3,000  employees is located in Sayre Borough.    Real Estate & Real Estate Transfer Tax - The Borough's real estate millage rate is 14.50 mills which translates into a tax bill of $1,450.00 for a property assessed at $100,000.00. The Real Estate assessment for the majority of Borough properties has been unchanged since 1999 and it is not likely that a county-wide assessment will be undertaken by Bradford County anytime soon. The real estate transfer tax isa 1% tax on property transfers within the Borough. The chart illustrates the  recent history of revenue generated by this tax.  Salary & Benefits (Sewer Related) = The Borough maintains four (4) sanitary sewer pump stations, 26 miles of sewer main, and over 2,000 sewer laterals. The responsibilities are assigned to the Department of Public Works and the General Fund is reimbursed for the costs of personnel for sewer related responsibilities. The Borough also processes more than 10,000 sewer payments each year and labor cost associated with that responsibility are reimbursed by the Sewer Fund. Refuse Collection Fees - The Borough charges residential properties $156.00 Annually for refuse and recycling collection. These funds offset labor expenses and other expenses related to trash and recycling collection services. Local Services Tax - The local services tax is paid by all persons employed within the Borough and earn more than $12,000.00. The taxi is $52 per year. Parking Lot Fees & Parking Meter Fees - Although revenue from parking is not a primary source of revenue, the revenue generated from parking meters has never been looked to as a source of revenue for the Borough. The primary reason that the parking meters exist is to help assure that all day parking is discouraged and vehicles are rotated through the more than 200 parking spaces in the downtown business district. Parking meters were originally installed soon after World War II at the request of the downtown business owners. The Borough also operates three off-street parking facilities (200 parking spaces) which are rented for $75.00 per quarter. The majority of the parking spaces are rented by Guthrie employees due to their convenient location to the medical campus and off-campus medical  offices.  ANALYSIS OF GENERAL FUND EXPENDITURES  This chart illustrates the breakdown of the Borough's major expenditures from the  general fund.    General Fund Expenses  $1,600,000.00 $1,400,000.00 $1,200,000.00 $1,000,000.00 $800,000.00 $600,000.00 $400,000.00 $200,000.00 $-  - -  Police  Employee Public Works  Road Administration Repair  Fire  Department Benefits Department Construction & &L Legislative Department  Police Department - The cost of providing police protection is one of the most expensive items in the Borough's budget. The number of full-time patrol officers has increased from eight (8) full-time officers in 2000 to thirteen (13) full-time officers in 2023. The additional officers were needed for a variety of reasons including but not limited to taking on patrol responsibilities in South Waverly Borough, assigning an officer as the School Resource Officer in the Sayre Area School District, an increase in the number of incidents handled by the Department (4,000 annually), and difficulty with finding qualified applicants who were willing to work as part-time officers. Chief Reynolds has done an outstanding job at securing grant funding for SWAT related expenses and specialty equipment, but it isc critically important that the cost of employee benefits specifically healthcare and pension, be monitored in future years. Council's ability to continue to staff at least two (2) of the full-time patrol officers positions will depend on the continuation of the School Resource Officer position and the service agreement with South  Waverly Borough.  Employee Benefits - A major expense for the Borough is the cost associated with providing health insurance and pension obligations for its employees. The Borough has worked with the Union representing employees to secure the best possible health insurance rates without compromising the quality of the insurance    which has resulted in a reduction of more than $60,000.00 a year in premium costs compared to the former insurance plan. Included in the employee benefits expense is the Borough's pension obligation. The Borough's pension obligation for police officers is governed by ACT 600, and the Borough's non-uniformed employees have two (2) pension funds. Employees hired prior to 2018 are enrolled in a defined benefit pension plan and employees hired after 2018 are enrolled in a defined contribution plan. Aminimum of four (4) non-uniformed employees currently enrolled in the defined benefit plan will retire within the next five (5) years resulting in additional employees being enrolled in the new defined Public Works Department - The Borough's Public Works Department has nine (9) full-time employees and three (3) per diem employees. Their day to day responsibilities include routine road maintenance, trash and recycling collection, flood protection, seasonal park maintenance (excluding Island Pond and Howard Elmer Park which are mowed by Guthrie), snow plowing, and sanitary sewer maintenance. These services have not increased during the last two decades. Road Construction & Repair - The Borough maintains approximately 26 miles of roadway throughout the Borough. The only roadways not maintained by the Borough are North and South Keystone Avenue, Mohawk Street, Spring Street, and West Lockhart Street west of the intersection with Keystone Avenue. The Borough's annual paving projects are contracted out and funded by the Borough's General Fund account and Liquid Fuels funding. On average, the Borough spends more than $300,000.00 on street paving projects however the cost of paving materials has increased dramatically in recent years reducing the Borough's ability to keep up with deteriorating roadway conditions. Approximately $450,000.00 has been budgeted for paving work in 2024 and includes funding the General Fund including Local Service Tax revenue, Natural The Borough's Public Works Department maintains more than 26 miles of sewer mains, 2,000 sewer laterals, and four (4) pump stations. The Borough has made a substantial investment in its sanitary sewer system including the recent upgrade of Administration Department = The Borough's Administration Department includes the Borough Manager, Administrative Services Coordinator, Borough Treasurer, and Code Enforcement Officer. The Department's full-time office staff has been reduced by 33% since the beginning of the COVID-19 pandemic however the  contribution plan.  Gas Impact Fee revenue, and Liquid Fuels.  the Hayden Street Pump Station.  responsibilities of the Department have not decreased.    The Department processes an average of 10,000 sewer/refuse payments, 800 parking permit payments, 100 building permits, 125 property maintenance complaints and 2,000 vendor payments are processed by Department staff each year. In addition staff coordinates special programs such as the Patriotic Banner program, End of Summer Celebration, Christmas Parade, and the Borough's Summer Concert Series and Downtown Summer Splash events. The Code Enforcement Officer has worked tirelessly to reduce slum and blight issues including initiating the process to be granted the first Conservatorship ofa property in Bradford County. The Code Enforcement Officer has also supervised the completion of the first and second phase of the Borough's downtown streetscape project, completion of the downtown ADA crosswalk improvement project, the Borough Hall Elevator Project, and the Diahoga Trail Project which have all been completed since 2019. The Borough Manager continues to pursue Fire Department - The Borough has made a substantial investment in the purchase of fire apparatus spending nearly $2 million during the past ten (10) years. The Borough is in a unique situation given that it is the only municipality with paid drivers who staff the. Aerial Quint 24/7. For nearly forty (40) years, the Borough only needed to employ one (1) full-time driver and a small number of per diem drivers to provide around the clock coverage. Since 2016, the Borough has needed to employ two (2) full-time drivers and as many as ten (10) per diem drivers to provide around the clock coverage dramatically increasing the Department's budget. The Department responds to an average of 135 alarms  grant funds for projects and equipment upgrades.  each year.  ANALYSIS OF SEWER FUND REVENUES  The Borough's sewer fund is funded solely by user fees which will generate approximately $2,430,000.00 in 2024. Quarterly sewer fees have nearly tripled during the past 20 years, due to the fact that the Borough Council has historically taken a conservative approach to sewer fees charged to residents. The Borough maintains more than 26 miles of sewer main throughout the Borough and in some areas the sewer main is nearly 100 years old. The Borough also operates four (4) pump stations  which are costly facilities to operate and repair.    SEWER FUND REVENUES  SEWER RECEIPTS LOAN PROCEEDS  CASH  OTHER REVENUES  INTEREST  VJSA SCREEN PROJECT  ANALYSIS OF SEWER FUND EXPENSES  The Borough has completed three (3) large infrastructure improvement projects totaling more than $6 million dollars during the past fifteen (15) years. The Borough has also upgraded all four (4) pump stations including two different upgrades at the Hayden Street and Milltown stations during the past 25 years. The Borough has a substantial burden with the costs associated with the operation of the Valley Joint Sewer Authority (VJSA). The Borough's share of the facility's day to day operations and capital improvement debt is 41%, making it necessary to commit a substantial amount of its annual revenue to VJSA expenses. The Borough's sewer related debt service is in excess $607,000 annually which is the minimal amount that the Borough will pay for the next twelve (12) years. The amount could increase should the Borough  incur additional debt from future infrastructure projects.  Sewer Fund Expenses  $700,000.00 $600,000.00 $500,000.00 $400,000.00 $300,000.00 $200,000.00 $100,000.00 $-  -  BOROUGHDEBT SEWAGE  VISADEBT TRANSFERTO TRANSFERTO VISASCREEN  SERVICE DISPOSAL(VISA) SERVICE GENERALFUND- GENERALI FUND- REPLACEMENT  WAGES  REFUSEFEES  PROJECT    CONCLUSION  Financial stability of the Borough will be maintained in the future through the ongoing efforts to provide the highest quality service in the most efficient and cost-effective Ith has been achieved through establishing and following sound financial management policies designed to protect the public's finances and provide accountability to the This budget, considered a reliable financial plan for the 2024 fiscal year, maintains and enhances our key services while working within our financial constraints. Itr reflects the balance between current economic realities and the desire to provide the Itis the continuing goal of the staff to produce excellence in budgeting, evidenced by the high standards of financial reporting displayed throughout this document. Itisu unlikely that the Borough will not have to increase property taxes in the future if opportunities to generate new revenues are not considered and pursued. The Borough should be the leader in developing shared services agreements for There are provisions relating to new hires in the Borough's collective bargaining agreements that will result in reduced labor costs, but those savings may not keep pace with future operating expenses including but not limited to employee pension  manner possible.  taxpayers.  best government possible during these current conditions.  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