Radnor Citizens Budget Survey

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Dear Radnor Citizen:

The Radnor Township Board of Commissioners appointed the Citizens Budget and Finance Advisory Committee (CBFAC) to help them find ways to solve the Township’s budget deficit. The information provided below and the survey pertain to Township finances only and not to the Radnor Township School District. The School District is a separate governmental entity. The CBFAC will submit a report of recommendations to the Commissioners in October 2010.

The CBFAC welcomes and needs Radnor’s citizens to share their ideas. Our goal is to address the challenging budget deficit while meeting the community’s expectations regarding the safety, security, quality of life, and essential services that make Radnor such a desirable community in which to live and work. Please complete this survey so your ideas can be included in the CBFAC’s report. No identifying information is requested so your responses will be anonymous. We ask that you complete the survey only once. Thank you for helping us with your ideas.

As background information, the CBFAC offers these basic facts:

1. The Township collects a variety of taxes, including the property tax, the realty transfer tax, the business privilege tax, the mercantile tax, the amusement tax and the local services tax. In addition to taxes, the Township generates revenue by charging fees for services, permits, and licenses; by collecting fines; and by receiving state funds and grants.

2. The property tax is the Township’s main revenue source. In 2010, the average residential taxpayer in Radnor will pay $1,011 in property taxes to the Township. Commercial property owners also pay property taxes.

3. Township services, such as police, fire, sanitation, library and parks and recreation are part of the General Fund. The 2010 budget for the General Fund estimates revenue to be $24.8 million and expenses to be $26.2 million thereby creating a General Fund deficit of $1.4 million.

4. In addition to the General Fund, the Township’s budget includes seven other Funds, such as the Sewer Fund, the Capital Improvement Fund and the Park Improvement & Open Space Fund. All eight Funds combined make-up the “Consolidated Budget.” The 2010 Consolidated Budget estimates total revenue of $36.3 million and expenses of $40.1 million, thereby creating an overall Consolidated Budget deficit of $3.8 million.

5. The economic recession has dramatically reduced Township revenues. Although revenue from the property tax was stable through 2009, revenue from all other taxes declined from 2006 to 2010 by approximately $2.3 million.

6. In order to address the budget problems, the Township has cut expenses and raised revenue. During 2009, the Township reduced expenses by a reduction in force of 18 employees (full and part-time). As a result, actual expenses incurred for 2009 were almost $1.4 million less than originally budgeted. In December 2009, the commissioners raised property taxes 11% and raised fees as part of the 2010 budget. Still, the Township is using money set aside in previous years in a “Reserve Fund – sometimes called a “rainy day fund” – to cover the 2010 deficit. The CBFAC report will suggest ways to eliminate the deficit for the 2011 budget and beyond.

Dear Radnor Citizen: (continued)

7. The Township issues bonds to finance projects and to purchase equipment and vehicles which have useful lives beyond 10 years. As of 12/31/2010, the bond indebtedness of the Township will be $52.5 million in principal payment. The payment schedules vary depending on the bonds. For example, the bonds issued in 2009 will be paid off by 2037 unless the Township decides to pay them off earlier. If no debt is paid off early, then the principal and interest paid in the intervening years will total $90.1 million by 2037.

8. As of September 2009, the Township’s bond rating by Moody’s is “Aa2” which is “high quality.” The bond rating affects the cost of borrowing, so Radnor will work to continue to maintain a quality rating.

9. In 2010, contractual obligations require the Township to contribute $560,000 to the police pension and $718,000 to the civilian pension. In addition, the Township will need to compensate employees retiring in 2010 for unused sick time and vacation time at an estimated cost of $712,000. Combined these expenses make up more than 11% of the total townships labor expenses in the 2010 General Fund budget.

REMINDER - answers to this survey ONLY apply to the Radnor Township budget and NOT to the Radnor Township School budget.

SURVEY INSTRUCTIONS:
1. We ask that you complete this survey only once.
2. Questions Nos. 1, 2, 3 and 4 - please provide responses on each line.
3. Question No. 7 - feel free to comment on any Radnor Township budget or service issue.

If you complete and submit your survey and find you have additional comments please use the following dedicated email address to offer your additional comments to the Citizens Budget and Finance Advisory Committee: citizensfinance@radnor.org. or go to the Radnor Township website under "Government", "All Boards and Committees" then "Citizens Budget and Finance Advisory Committee".

The members of the CBFAC thank you for your time and serious thoughts on these important questions.