[0:00] Good evening, everyone.

[0:02] I want to start by thanking everyone

[0:06] for their attention to the presentation I'm about to give this

[0:09] I'm here to present the proposed 2026 annual budget for Willistown

[0:15] I believe it is screen sharing to Zoom, but I might intermittently

[0:21] to make sure that everything is proceeding properly there.

[0:25] So tonight I will begin with highlights of the past year,

[0:28] then discuss the taxes that are levied in the township, detailed

[0:35] township funds for the coming year, and provide initial information

[0:40] preliminary sewer rates. Please hold your questions to the end of the

[0:43] presentation when the board chair will open the floor to the public.

[0:49] So again, as I said, we will begin with a look back

[0:53] at 2025.

[1:00] Beginning with roads and infrastructure that most Willistown

[1:04] I'm pleased first of all to share

[1:06] that the Garrett Mill Road bridge, which has been closed since the

[1:11] of 2023, is expected to reopen before the end of this calendar year.

[1:18] Our roadway resurfacing program this year paved approximately 3.26 miles

[1:25] and our public works crews filled over 100 potholes after a rough

[1:30] Intersection striping was conducted at three intersections along Paoli

[1:34] as well as long line restriping throughout the township.

[1:37] And while you've been traveling through the township, you might have

[1:40] one of our new township street signs there in the middle.

[1:43] Uh, which are gradually being replaced, uh, throughout the

[1:47] And then of course the Public Works Department also completed regular

[1:54] our dirt roads, um, and emergency weather operations in order to keep

[1:57] motorists and other road users safe.

[1:59] And then finally the historic Bartram Covered Bridge also underwent

[2:08] year, which Willistown funded in partnership with Newtown Township,

[2:11] That bridge spans both of our municipalities.

[2:14] Moving ahead to sanitary sewer. Uh, in addition to regular routine

[2:17] maintenance, significant efforts were made this year to address problems

[2:21] A crucial part of that is the televising, um methodical televising

[2:28] about earlier this evening. We're on track to clean and televise 95,000

[2:35] halfway through as Mr. Hagan noted. Um, as you might know, the Township's

[2:39] sewer collection system has experienced breaks and needed

[2:46] several years, and I'm sorry to say 2025 was no exception.

[2:49] We experienced a break on Eisenhower Drive as you might recall.

[2:53] Um, you can see that failed sewer pipe there in the center photograph,

[3:01] It's like I am screen sharing, that's good.

[3:04] Uh, fortunately this was already scheduled for repair, this particular

[3:10] uh, grant funding for it that had already been awarded that we were

[3:15] that repair. Additional planned repairs that uh Mr. Hagan talked

[3:24] right away and on Cobblestone uh were begun and are are ongoing.

[3:28] Uh, and then finally following 2024's sewage management study, a dedicated

[3:33] volunteer group of sewer users, some of whom are here this evening, uh,

[3:41] Wastewater Authority Advisory Committee this year. And that

[3:48] develop recommendations for the Board of supervisors regarding the

[3:55] I'll note that an authority has not yet been established and as such, the

[4:03] the current sewer funds.

[4:08] Stormwater management, a vital issue that the Board of supervisors has

[4:14] few years. This is another part of our township infrastructure that is

[4:20] Uh, our public Works crew completed inlet and pipe repairs throughout the

[4:25] pipe was replaced. You can see some of that work on Radner Road in the

[4:29] photo on the left. Uh Spring Road remains closed due to the culvert

[4:34] right. We continue to work towards a solution to make that repair, but the

[4:42] by the commencement of litigation against the township by an adjacent

[4:48] Stormwater engineer, HRG, completed a township wide stormwater study in

[4:54] study form the basis of the projects that have been and will continue to

[4:59] the Forest Lane and Chetlin Road projects that are currently being

[5:05] And then in the center photograph, you see the uh crews completing

[5:06] the improvements to Storm water infrastructure at Mill Park.

[5:07] talk more about those later.

[5:08] And then in addition, a stream restoration project along uh Crum

[5:11] Our summer outdoor program for kids, Go Wilma,

[5:12] that was uh identified will meet some state mandated pollution reduction

[5:15] is now in its 14th year.

[5:16] Uh we had 567 adventurers

[5:17] join in on the fun during this summer, which was the highest

[5:19] number we've seen since uh before the pandemic, actually.

[5:23] Uh participants visited 18 parks, preserves and historic sites

[5:26] in Willistown and the surrounding municipalities.

[5:29] Um, the Owl Prowl in Oka Hoking,

[5:31] I'm glad I said that, got that out that tongue twister,

[5:34] has become a seasonal favorite.

[5:35] Uh, we sold that one out.

[5:37] Attendees got to see some and hear wild screech owls

[5:40] at Oka Hoking preserve during their hike.

[5:43] Other free programs that we offered this year included

[5:46] uh meditative hike, a tour of the Serpentine Barons

[5:49] and a wildlife walk.

[5:51] We got a lot of positive feedback for these expanded offerings

[5:53] of free daytime, mostly daytime events

[5:56] geared toward adults to learn about our parks and preserves

[5:58] and the nature all around us.

[6:01] Um and our park parties continue to be a hit.

[6:04] Uh the end of summer country Willistown Country Fair

[6:06] had over 350 attendees this year.

[6:09] Um, and then at this year's recycling events for residents,

[6:12] at e-waste, we recycled 19,915 pounds of e-waste

[6:16] and seven, almost 8,000 pounds of paper at our spring shredding event

[6:20] and don't forget our shredding event coming up.

[6:23] that will also include that pilot program for battery recycling.

[6:27] And then we did also continue our partnership with CRC,

[6:30] our local Water sheds Association.

[6:32] um on two projects, a spring stream cleanup at Oking

[6:35] removed 1,000 pounds of trash and two tires out of Ridley Creek.

[6:39] And then earlier this month, we uh partnered with CRC on a tree giveaway

[6:44] And that was a grant funded program that was incredibly well received

[6:46] that we're hoping to repeat in future years.

[6:49] Parks and preserves, we made some needed improvements to township parks

[6:53] New swing set and security and camera upgrades down at Rita Reeves

[6:56] uh Memorial Park.

[6:58] Our very popular Gaga Ball pit

[7:00] at Greentree Park as well as a new drinking fountain with a

[7:03] water bottle water bottle filling station

[7:06] at Greentree.

[7:08] Um, we updated trail signage in Oking Preserve,

[7:11] And as for park planning, demolition of the house located at the site

[7:15] of the future Monument Road Neighborhood Park and Bird Sanctuary

[7:19] And I'll speak more about that park later in this presentation.

[7:22] Uh, we also had field use and pavilion rentals increase in 2025.

[7:26] The Public Works Department purchased a uh ABI force ball field groomer,

[7:31] um and implemented an in-house field maintenance program.

[7:34] and that improved playing services throughout the season,

[7:37] uh and the increased park Reynolds did reflect that.

[7:40] Park use fees totaled 80- $8,700 in 2025

[7:43] compared to just over $5,000 in 2024.

[7:46] And there wasn't a change in fees, so that was just increased usage.

[7:50] Our police department,

[7:52] um responsible for law enforcement and preventing and investigating

[7:56] engaging community policing, traffic control, accident response,

[7:59] and supporting various public safety initiatives throughout the township.

[8:02] We have 19 sworn officers including our chief and lieutenant, you see

[8:07] five sergeants, two criminal investigators, two traffic officers

[8:11] plus two members of a non-uniform administrative staff who support the

[8:16] They respond to approximately 10,000 calls annually, including alarms,

[8:20] mutual aid, criminal reports, crashes, domestic disturbances,

[8:24] medical calls.

[8:25] Um, they continued their community outreach with visits to public and

[8:30] their ride to school with a police officer program,

[8:33] um, and uh presentations to seniors about elder scams,

[8:38] National Night Out, and after school forensics club among many other

[8:43] I want to also point out they are a participant in the Westchester Area

[8:47] the regional team of departments which provide mutual aid in times of

[8:52] Big thing, um, and I'm sorry that this is covering it up for the

[8:56] viewers here.

[8:58] Um, see if I can move this.

[9:02] There's a hide button there.

[9:03] Well, you can see, you can't see our [laughter]

[9:07] changing of the guard here.

[9:09] Um, we saw us the retirement of Chief Klinger

[9:13] and the appointment of Chief Heim and Lieutenant Jones.

[9:16] Uh sergeants LaPierre and Hill also retired

[9:18] and we were joined by three new officers, Officer Hoffy, Officer

[9:22] And then in the spring, uh sergeants Ash and Sergeant Vibon were promoted

[9:27] Um and then in the fall, uh Detective Matt Brown

[9:30] was promoted to Sergeant of Criminal Investigations and Officer Daven

[9:33] Davenport joins our detective division.

[9:36] So a lot of personnel changes over in our police department,

[9:39] um, which is a fantastic department,

[9:42] but there has been some, uh, some new developments over there.

[9:46] Another department where we've seen a little bit of uh personnel change is

[9:51] The retirement of our longtime building code official Ed Tiernan,

[9:55] um who's I'm sure would not be thrilled to see his photo in this

[10:00] mentation. [laughter] Um, but we missed.

[10:03] Um, as well as the retirement of our

[10:05] uh planning director of planning and zoning, Bob Smiley.

[10:08] Um, assistant director of planning and zoning Caroline O'Conor

[10:11] stepped into the role of the director this year, and John Redman recently

[10:16] And we are hoping to replace uh the position that uh Ms. O'Conor vacated

[10:23] Uh, there's a lot of activity in these departments as you can see.

[10:26] 680 building department permits that includes uh new construction,

[10:31] uh mechanical, plumbing, electrical work, uh that sort of thing,

[10:34] were uh issued year to date along with 247 zoning department permits

[10:40] Uh uh accessory structures, hardscaping improvements

[10:43] and soil and erosion, that kind of thing were issued so far this year.

[10:48] And then finally, we made some first steps this year toward our township

[10:53] Uh staff worked with our planning consultant to develop an RFP to seek

[10:59] Uh circulation study, which is a study recommended by the

[11:04] We received five submissions with this which the staff reviewed

[11:07] and you'll see that item later on this evening's agenda.

[11:13] Of course, uh here on our Township campus, the biggest activity

[11:16] has been the project to demolish and reconstruct our

[11:19] uh public works facilities which had been in dire need of replacement for

[11:23] Uh demolition of the truck barn and the salt shed is complete

[11:25] and construction of the new salt shed and fuel station are anticipated this

[11:29] Additional uh work to follow, which I'll talk about later.

[11:34] Um here at the township building, a smaller project,

[11:36] the renovation of the board room's emergency exit right over there,

[11:39] uh was completed in house by our Public Works staff.

[11:43] And uh we are uh

[11:46] sorry, lost my place.

[11:48] Um as we planned in the 2025 uh budget, we did issue general

[11:53] This year we received, we're very pleased to tell you that we received

[11:56] a uh AAA bond rating from Moody's

[11:59] in advance of that bond issuance. Um,

[12:03] in terms of public outreach, we develop and distribute three issues

[12:08] and I do hope residents take the time to read it.

[12:11] It contains important information uh about programs and services

[12:15] as well as um efforts to implement the policies of the Board of

[12:19] We also share updates through our township Facebook and Instagram

[12:22] and we hope that you sign up for updates from our website.

[12:26] Okay. We've taken a look back,

[12:29] and the sun is setting on 2025, so we turn now to the year ahead.

[12:35] Let's start with some budget highlights.

[12:37] High level view of the 2026 budget.

[12:39] The general fund, which we will discuss in a moment, is balanced at

[12:45] There are no proposed property tax or earned income tax increases.

[12:49] Uh in the 2026 proposed budget.

[12:53] We are projecting a surplus of $2.5 million for 2025.

[12:57] As the board knows, it's been a long time practice

[13:00] that the previous year's surplus is utilized to fund the next year's

[13:04] which I'll talk more about when we get to the capital fund slide.

[13:07] The Willistown budget serves many functions, but some of them are

[13:11] that it's a policy document, it's a financial plan, it's a communications

[13:16] The budget sets forth the board's goals, how those will be executed,

[13:21] and this presentation itself communicates to you, the members of

[13:28] You'll see in this presentation

[13:31] tonight that Willistown budgets revenues conservatively and expenses

[13:36] We budget for level services and to improve and enhance programs.

[13:40] So that's that's our budget philosophy.

[13:45] And the budget process, you'll see an overview here on the budget timeline.

[13:49] Boards and commissions of course, including the Board of Supervisors,

[13:54] and then departmental budget drafts were begun in August. We've been

[14:00] Tonight, this is the public presentation of the proposed budget

[14:04] and provided the board authorizes advertisement,

[14:06] we'll make the budget draft available to the public as early as tomorrow.

[14:10] Um and the board will vote on the proposed budget to adopt it at their

[14:18] So we're going to take a look at revenue, which yes, of course, does

[14:22] Various taxes are levied by Willistown Township.

[14:25] We've got property taxes which are levied at .28 mills, EIT, which is

[14:30] is 1% for Willistown residents and 7/8 of 1% for non-residents.

[14:35] The local services tax is payable by all those who work in Willistown

[14:39] and it is $52 annually.

[14:41] And the real estate transfer tax,

[14:44] which is one half of 1% on the value of the real estate transferred.

[14:48] So let's zoom in for a second on that real estate tax piece.

[14:52] Uh property owners in Willistown are taxed at a total millage of 30.664

[15:00] And that is for the Township, County and School District combined.

[15:03] So of a property owner's overall real estate tax bill, approximately

[15:07] 82% represented here by 82 cents of every dollar.

[15:13] Um, goes to Great Valley School District, 17% to Chester County,

[15:17] and it's actually less than 1% to Willistown Township.

[15:20] So let me just give you an example.

[15:22] Assuming that a property owner has a parcel with an assessed

[15:24] value of $200,000, they would have a total property

[15:27] tax bill of about $6,133.

[15:33] $56 would come to Willistown,

[15:35] $1,033 to Chester County,

[15:37] and $5,044 to the Great Valley School District.

[15:40] So when you see your real estate tax bill,

[15:43] you might see it all in one fell swoop.

[15:45] That's how it breaks down dollar for dollar.

[15:49] But speaking more broadly about revenue,

[15:51] this chart shows the revenue breakdown of the general fund.

[15:55] The top five sources are specifically called out here

[15:57] by percentage.

[16:00] As you can see, the largest source by far is earned income tax,

[16:03] uh, which in the 2026 proposed budget totals $7,620,000.

[16:09] This is a conservative budget.

[16:11] We budget revenues conservatively.

[16:13] Our EIT actuals, our earned income tax that we get in,

[16:17] is often higher than what's budgeted.

[16:20] And it's important that we account for potential significant changes.

[16:23] The strategy of conservative budgeting

[16:26] is something we do as we note that other taxing entities,

[16:30] like neighboring municipalities,

[16:33] uh, might consider enacting or increasing their own EIT,

[16:36] which would decrease our collections from non-residents who work in

[16:41] In addition, the distribution of EIT

[16:44] from individual taxpayers in Willistown is becoming increasingly

[16:48] inbalanced, unbalanced.

[16:50] Um, by that I mean historically the top 50 tax accounts of Willistown

[16:55] account for approximately $2 million in EIT collections

[17:00] with just a handful of residents.

[17:02] Um, half, half of that, $1 million coming from

[17:05] just a handful of residents.

[17:06] Five residents alone.

[17:09] Forgive me for interrupting.

[17:10] Can you just repeat that one time?

[17:12] Yes. So it's very important point for everybody.

[17:14] The top 50 tax accounts of Willistown residents

[17:18] account for approximately $2 million in EIT collections

[17:22] with half of that, $1 million, coming from the top five accounts alone.

[17:27] Five tax accounts.

[17:29] or five individuals.

[17:30] So, in other words, a change in status of

[17:33] a handful of people if they were to move out of the township,

[17:37] move into um, uh,

[17:41] retire or die or or

[17:43] take their income elsewhere.

[17:45] Or take their income in any non W2 format. format.

[17:50] It could significantly change what we collect in EIT. Yeah.

[17:53] And that's one reason for the but board's conservative budgeting

[17:57] because we don't want to count on money that is

[18:00] this is, let me put it simply,

[18:02] EIT is one of the least predictable revenue sources.

[18:05] We know what the assessed value of the real estate in the township is.

[18:08] We know what the millage rate is.

[18:11] So we can do that calculation and determine with relative certainty

[18:15] what we're going to receive in real estate taxes in a given year.

[18:18] We don't know what people are going to make,

[18:20] and we look at that over time. We don't know individuals, who those

[18:25] but we do know how what an any given individual's history might be.

[18:31] So we see people pop up out of nowhere. Our

[18:34] those top, those top five for example are not the same five individuals

[18:38] year after year after year.

[18:39] No, our top one for 2024 was brand new.

[18:43] We we hadn't seen them in our top 50 in over the last five years.

[18:47] translating to the fact that 70% of our Township revenue is precarious.

[18:52] Correct.

[18:55] So this is revenue again of the general fund, so those tax sources.

[19:01] Um, you know what, let me go back.

[19:04] I didn't speak about the other sources.

[19:05] These these uh pieces here from real estate transfer tax,

[19:09] charge for services, inter- governmental revenue and property

[19:12] those are four to six percent of the whole.

[19:14] And they range, just for clarification, from about $385,000

[19:17] to $650,000.

[19:20] So those are what those pieces of the pie represent.

[19:27] So, over the past few years,

[19:29] the three years that that I've been here, I'm not crediting it to me, but

[19:33] um, the township has been particularly aggressive

[19:36] in our pursuit of grant funding for various projects.

[19:38] Let me speak a little bit about how that grant funding appears in the

[19:41] So generally speaking, grants appear in the budget in the following ways.

[19:45] If a grant has been awarded,

[19:48] we will budget for the revenue in the year it's expected to be received.

[19:52] If a grant has not yet been awarded, but we have applied for it,

[19:56] we will either budget without any revenue offset, if we

[20:00] tend to do the project no matter what.

[20:02] Or we will not include the expenditure

[20:04] if we're not going to do the project without the grant funding.

[20:09] So that's how the grants appear in the budget.

[20:11] why you will maybe see them or not see expenditures

[20:14] related to those projects.

[20:16] That's what that means.

[20:18] So, as you saw earlier on the agenda this evening,

[20:22] we applied for several local share account grants again this year.

[20:26] Those are grants where we've seen some success in the past.

[20:28] Uh, this is statewide funding that is the distribution of revenues

[20:32] provided by the PA Race Horse Development and Gaming Act.

[20:36] Uh, Greenlight Go, um, is state funding for traffic signal projects.

[20:40] We do have a Greenlight Go that has already been awarded,

[20:43] so there's a revenue offset for the 80% of the fiber interconnect

[20:47] project that's included in the 2026 budget.

[20:50] Uh I think it was on the board's last agenda.

[20:52] We, uh... was it the last year agenda.

[20:56] you approved the authorized uh the Pico Green Region grant,

[20:59] which is a program that funds open space projects

[21:02] and that's for the Okahoking reforestation project.

[21:05] This is in the budget without revenue offset. In other words,

[21:08] we um uh intend to proceed with it no matter what

[21:11] and we won't hear about the award until the spring.

[21:15] We're still awaiting an announcement uh of the small water and sewer grant

[21:18] we applied for for the Westchester Pike sewer needs area.

[21:22] That's uh state funding for small budget which is under $500,000,

[21:26] water, sewer and storm water projects.

[21:29] We also, as you approved earlier tonight, will be applying for

[21:32] another LSA grant for that project as well.

[21:35] Um we're also continuing to work with the National Park Service and General

[21:39] following the township's application to the Federal Lands to Parks program

[21:43] for the acquisition of the Nike site

[21:45] on Delchester Road.

[21:46] That's Nike like missile, not Nike like shoe.

[21:49] Uh, this is not a monetary grant.

[21:51] It is a program that transfers surplus federal land

[21:53] to municipalities for park purposes.

[21:57] Um, conversations are on pause right now due to the federal government

[22:02] but we do remain optimistic about um that program.

[22:06] Um and finally, we will be submitting a

[22:08] 80% reimbursement application for the total cost of the Garrett Mill

[22:12] Road Bridge program for an award that's already been awarded

[22:16] through the DVRPC Municipal Bridge retro reimbursement program.

[22:20] So we got 80% of that uh bridge replacement covered,

[22:24] which I think is spectacular.

[22:25] So, those are some of the grants that I just wanted to highlight

[22:28] because actually, um a comment that I heard at a previous meeting mentioned

[22:31] that we don't always talk about the grants that we apply for and receive,

[22:35] and I think it's worth saying

[22:36] cuz that definitely falls under revenue.

[22:39] So let's detail a little bit closer into the various township funds.

[22:43] Let's look at the general fund, which was mentioned in the overview, $11

[22:47] This is the operating fund for the township departments.

[22:50] So that includes administration, public works, police, parks, all

[22:54] Revenue sources include the taxes, fees, permits, fines, interest,

[22:58] grants, state funding, etc.

[23:01] Uh the 2026 budget is balanced at $11,128,810.

[23:08] I know I skipped over highlights because I'm going to talk about them

[23:12] Some highlights in the general fund include the township-wide

[23:14] circulation study, which is a planning study for the

[23:17] non-motorized uh transportation throughout the township.

[23:20] Uh continued implementation of GIS software,

[23:23] additional in-house storm water inlet repairs, continuation of

[23:26] the street sign replacement program I mentioned earlier,

[23:29] and an expansion of our in-house maintenance program for our ball

[23:33] The general fund also includes a 20% increase for our fire departments.

[23:38] That amounts to over $100,000.

[23:40] Um as well as continued police department uh community outreach

[23:47] This chart here breaks down the general fund by expenditures,

[23:51] the general fund expenditures by department roughly.

[23:54] The blue slice here is the police department

[23:57] with a budget that totals 5,820,984.

[24:02] Public works totals 1.8 million

[24:04] and change, uh administration

[24:05] management and finance comes in at 1.4.

[24:10] Fire protection emergency management 823,000.

[24:13] Building and planning department 706,000,

[24:16] parks and recreation 424,714.

[24:21] And the remaining programs and services in the budget,

[24:23] which is primarily uh recycling programs and our library support is

[24:28] 134,000 $318.

[24:32] I can come back to that if you need me to repeat any of those numbers.

[24:38] So the breakdown that we just looked at does not include capital

[24:44] So what are capital purchases?

[24:46] Well, capital assets are major purchases

[24:48] with an additional, excuse me, with an initial cost of $10,000

[24:50] or more and an estimated

[24:52] useful life of greater than one year.

[24:55] For 2026, we see capital investments presented in the proposed budget.

[25:00] budget at seven million

[25:02] $652,690.

[25:04] Um, these are slated to be funded by bond proceeds.

[25:09] That's the biggest chunk that includes

[25:11] $5.3 million toward the completion of the Public Works facility.

[25:15] Other funding sources include grant funding

[25:17] and a transfer of $2 million from the surplus

[25:19] that I mentioned earlier, the 2025 estimated surplus.

[25:23] That's going to be an interfund transfer

[25:25] that's necessary for any proposed use.

[25:27] It's allocated by the board by resolution at a public meeting

[25:31] and that I believe will be on your next agenda for your agenda for

[25:35] So those are always done by board resolution in public.

[25:40] Let's explore what the capital purchases are this coming year.

[25:43] Um, as I mentioned, on the Township campus, we anticipate the completion

[25:46] of the new public works facilities in Q3 next year.

[25:49] Uh, $550,000 is budgeted for the replacement

[25:53] of the Hck system in the police building, which is

[25:56] fair to say sorely needed, very sorely needed.

[25:58] Yes.

[26:00] Um, exterior painting here in this building uh was deferred this year,

[26:06] we didn't, so we're pushing that to next year.

[26:07] As well as some uh smaller furniture upgrades for the offices in this

[26:13] Uh, more on police, uh additional police items include two

[26:16] patrol vehicles with fit outs

[26:18] as well as body cam and patrol car

[26:20] camera technology upgrades.

[26:23] Yep.

[26:24] Your body cams and your cams in your cars.

[26:29] Capital purchases planned for public works include a compressor for road

[26:34] replacement of the skid steer, replacement of our six-wheel dump

[26:38] um and some additional funds for roadway paving, which we've done for

[26:41] That's in addition to the liquid fuels funding I'll talk about in a

[26:45] Um, as well as the Green Light Go fiber interconnect project,

[26:49] which I mentioned earlier is partially, I think 80% grant funded.

[26:54] And our parks and preserves.

[26:55] We've budgeted funding for the reforestation and meadow restoration

[26:58] projects at Okahocking Preserve.

[27:00] Some attachments for that ballfield groomer that was purchased this year,

[27:04] um and funding for uh the design of the Monument Road Neighborhood Park.

[27:11] Storm water.

[27:13] Flowing on to storm water.

[27:15] Uh, we set aside funding here for

[27:18] storm water planning, engineering,

[27:20] construction, design and construction of uh storm water

[27:22] um facilities, infrastructure in the township.

[27:26] So we have proposed expenditures in 2026 of two and a half million

[27:30] This includes construction of some of the projects that were designed this

[27:36] Uh ongoing design and hopefully construction for the

[27:39] Spring Road Culvert uh replacement

[27:41] and funding for the Crum Creek stream restoration design,

[27:45] which is uh $70,000 for that.

[27:48] That's the littlest one.

[27:50] Liquid fuels I just mentioned.

[27:52] This is funding from the Commonwealth that's restricted to

[27:55] expenditures related to roadways.

[27:58] It's called liquid fuels because this is the gas tax.

[28:00] This is what you pay at the pump.

[28:03] Um, we have seen this gone down and we expect we will continue to.

[28:06] I imagine largely because of EVs.

[28:09] If there's less gas being sold, less tax on that gas.

[28:13] So we'll have to make up for this, uh particularly when it comes to paving

[28:18] Uh, the 2020 uh 6 budget includes total revenue of 382,690.

[28:25] And total expenditures of $544,000.

[28:28] Um, this is road salt, traffic signal street lights,

[28:31] purchase of one uh public works vehicle and funding

[28:33] toward our annual roadway resurfacing uh program.

[28:36] We're aiming for three and a half miles again this year.

[28:38] Um, in 2026, it's a little more than we did this year.

[28:41] That's the $350,000 out of liquid fuels and the 145 out of the capital

[28:48] The vehicle we're replacing is a pickup truck with a plow and a

[28:52] And that's budgeted at $80,000.

[28:57] Open space, this is another restricted fund.

[28:59] Um, all the expenditures out of this fund uh must go toward parkland or

[29:04] The 2026 budget includes a total revenue of 832,976.

[29:11] Um, and again that's that's the uh 1/8 of 1% of Willistown residents'

[29:17] Um as well as some interest earnings and the expenditures are primarily

[29:29] We're going to talk a little bit now about uh some more distinct

[29:36] All revenue and expenditures related to sewer go through the sewer

[29:41] Sewer rates for the two major districts which are Penn's Preserve

[29:49] in the proposed budget.

[29:51] Although by a larger, I'm sorry,

[29:54] by they're increased by a smaller percentage than in previous years.

[29:57] So in other words, we're starting

[30:00] to get closer to catching up from the years when the rates were flat.

[30:03] Um, those particular years

[30:05] unfortunately did include some years of high inflation.

[30:07] So we're still catching up from that.

[30:09] but while the proposed increases do exist,

[30:11] they are again, smaller percentage wise than in the past couple of

[30:17] So in the Valley Forge sewer district,

[30:20] which is what it says for those of you in the room underneath

[30:22] that header that I can't seem to make go away.

[30:25] Um, but that's Valley Forge Sewer District.

[30:29] We projected deficit in that uh funds for 2025

[30:31] in the amount of approximately $213,000.

[30:35] Um, that is largely due to the sewer break

[30:38] that I mentioned earlier on Eisenhower.

[30:40] Like I said, that was offset by some grant money,

[30:42] but not in its entirety.

[30:45] The 2026 budget includes revenue of uh $4,117,649.

[30:51] That does not include a margin of safety for repair and replacement

[30:54] of existing infrastructure.

[30:57] More on that in a moment.

[30:58] Um, expenditures budgeted for Valley Forge uh sewer total

[31:02] $4,528,128.

[31:06] Um, this includes $293,000 in debt service payments

[31:11] on the 2025 bond issue.

[31:14] This also includes a drawdown of cash reserves of $300,000,

[31:17] which I'm about to speak about.

[31:19] So, hold that thought.

[31:21] But before we get there, let's talk briefly about Penn's Preserve.

[31:24] Penn's Preserve is also projected to see

[31:27] a small deficit, um, at the end of 2025,

[31:30] um, of $25,000.

[31:33] small relative to Valley Forge.

[31:37] Um, the 2026 budget for this fund includes revenue

[31:40] of $202,000

[31:42] and expenditures of about $204,000.

[31:45] And again, importantly, this doesn't include any margin of safety.

[31:48] In other words, we're not setting aside any funds

[31:50] for repair and replacement of existing infrastructure.

[31:54] Uh, of course that does keep rates lower than they would otherwise be.

[31:58] This budget also doesn't include any uh plant upgrades

[32:01] which have been deferred awaiting grant funds,

[32:04] including the grant that the board authorized application for

[32:08] earlier this evening,

[32:09] the LSA grant for the Penn's Preserves uh plant upgrades.

[32:13] Um, and I'll note that as well,

[32:15] there's additional significant upgrades to the lagoons

[32:18] and the spray irrigation system that are also on, uh, the horizon.

[32:23] in the next few years.

[32:26] We're going to look more specifically for a moment

[32:29] uh at sewer rates for the Valley Forge district.

[32:31] If you could read that at the top there,

[32:33] what it says is Valley Forge sewer rates, challenges and considerations,

[32:37] which is what we're going to talk about.

[32:39] Before we dive in, let me remind ratepayers

[32:41] and those present here tonight

[32:43] that the fixed rate is based on the fixed cost to run our our

[32:46] collection system.

[32:47] So that's the mains, the pump station, the personnel, engineering,

[32:51] that's divided among users.

[32:53] The usage rate is based on the charges that the township is

[32:56] invoiced per gallon.

[32:58] So that's conveyance via the trunk line

[33:00] and treatment at the Valley Forge treatment plant.

[33:03] Given the significant costs from the Valley Forge Sewer Authority

[33:07] for operation, for their own infrastructure improvements,

[33:10] and the continued ballooning costs for conveyance

[33:13] through Aqua's Valley Creek trunk line,

[33:15] the usage costs for the Valley Forge district sewer ratepayers

[33:19] will increase again this year.

[33:22] This poses some challenges that we need to consider.

[33:25] So we're going to look at some scenarios.

[33:28] If we include all the expenditures originally contemplated

[33:31] in the budget and use those to determine the sewer rates

[33:34] for ratepayers in the Valley Forge Sewer District.

[33:38] That results in a fixed rate of 172.28 a quarter

[33:44] and a usage rate of 17.79 per 1,000 gallons.

[33:48] Or for an average user, the quarterly payment of $373.63.

[33:54] For any Valley Forge users in here, you might realize

[33:56] for an average user that's an increase.

[33:59] It constitutes about a 30% increase. Obviously that varies.

[34:02] We use the same average user scenario in all of these scenarios

[34:07] so they are all the same,

[34:09] but your increase may vary depending on your usage, obviously.

[34:14] 30 almost 30% increase,

[34:16] Obviously that's really high

[34:19] and probably untenable for a lot of sewer users. So,

[34:23] let's look at another scenario.

[34:26] What kind of alterations we can can we make?

[34:29] Well the first alteration that can be made is to move some of the

[34:32] capital purchases that aren't major projects

[34:34] but still capital purchases for our pump stations

[34:37] into the bond funding rather than in the fund that uses

[34:42] the budgetary fund that determines the rate for the sewer payers.

[34:47] So in other words, they're going to be funded by bond proceeds

[34:50] rather than by the sewer users directly.

[34:52] They're indirectly funded by the by the sewer users via the debt service,

[34:56] but not straight out of it.

[34:58] So that moves them out of the

[35:00] primary Valley Ford sewer fund.

[35:01] That brings the fixed rate down to 160 35 a quarter.

[35:05] That average user's quarterly payment now 361 70 cents

[35:09] or a 26% increase.

[35:12] Okay.

[35:13] What's the next scenario?

[35:15] How do we decrease rates further?

[35:17] Well, we can remove the margin of safety.

[35:18] Again, that would be the capital reserve contribution for future

[35:21] repairs and replacements.

[35:23] That recommended reserve would have been 221,000

[35:26] $260, sorry, $221,267.

[35:32] So this will bring that fixed rate down further

[35:35] to $140.5 per quarter.

[35:37] Usage rate, obviously stays the same.

[35:39] This is only affecting the fixed rate for now.

[35:42] 140 05 is actually

[35:44] $2 lower per quarter than the 2025 fixed rates,

[35:49] but that usage rate is still high,

[35:50] so that's still an increased for an average user scenario of that 19%.

[35:55] All right.

[35:56] Is there anything else we can do?

[35:58] What else can be adjusted?

[36:00] The answer here is to draw down on our cash reserves.

[36:04] So, our cash reserves currently sit at a little over a million dollars.

[36:09] That's been shrinking for the past six years as we've operated this fund

[36:14] But if we put $300,000 of those cash reserves

[36:17] toward the uh Valley Forge plant improvement charge,

[36:21] that brings the usage rate down

[36:24] to 1576 per 1,000 gallons.

[36:28] Average quarterly payment, 318 42,

[36:30] or an increase of a little less than 11% for that average user scenario.

[36:35] So that's the fourth and final option

[36:36] we have to present to all those cuts and alterations,

[36:40] that's what's included in the 2026 proposed budget for the board.

[36:44] So after all those changes have been made,

[36:47] What is our capital fund for Valley Forge?

[36:49] That's fund 20.

[36:50] What does that look like?

[36:51] Well,

[36:52] there's still three major budgeted projects.

[36:55] The completion of the 2025 repairs that Mr. Hagan talked about earlier.

[36:58] That's the lining section of that repair,

[37:01] um, that is going to be pushed in 2026.

[37:05] That amounts to about 330, excuse me, $345,000.

[37:10] Uh, the remainder of the Eisenhower interceptor project that wasn't

[37:15] We're hoping that might still be offset by an LSA grant we applied for

[37:20] that hasn't been announced yet.

[37:22] Um, that is budgeted at $800,000.

[37:26] And the next set of very needed capital repairs, um,

[37:29] along Clearview which as Bill noted was identified as emergent

[37:33] in this year's televising.

[37:35] That's estimated about $569,000.

[37:38] Those are the main projects there in Fund 20.

[37:40] Other capital expenditures, the ones I just spoke about moving to Fund 20,

[37:46] our pump station equipment and a lateral camera.

[37:49] um, which come to about $130,000.

[37:52] And again, in the proposed budget,

[37:53] um, moving all of these things into Fund 20 means that they are funded by

[37:56] the 2025 general obligation bonds

[38:00] that are dedicated to sewer specifically.

[38:04] Um,

[38:07] Okay, let's look at Penns Preserve for a second.

[38:08] I already mentioned this, I want to reiterate it.

[38:11] We're not including any capital expenditures in the Penns Preserve

[38:17] But we do know that $275,000 worth of upgrades

[38:21] to the treatment plant are needed.

[38:23] New pumps, new controllers, related engineering.

[38:26] That is what the board uh authorizes this evening to be applied for

[38:29] in that particular LSA grant.

[38:34] Rather than budget for that work in a single year,

[38:36] which would place that burden entirely upon

[38:38] the very limited customer customer base at Penns Preserve,

[38:42] um, fewer than 200 customers.

[38:45] Um, we are seeking grants and additional funding sources

[38:49] for these and future repairs.

[38:51] Um, and again, as proposed, neither of these funds is setting aside any

[38:58] That's as proposed in the budget.

[39:01] Where does that leave our rates?

[39:03] Here's where that leaves us in terms of the proposed sewer rates

[39:06] um in the proposed 2026 budget.

[39:08] I'll note here at the top.

[39:09] These are estimates used for budgeting.

[39:11] The board adopts rates separately by resolution in December.

[39:14] So this is and they could shift a little bit.

[39:16] They usually shift a little bit,

[39:18] um, but not they don't usually shift a lot.

[39:21] Um, but if you compare the resolution to the presentation

[39:24] from the past couple of years, you might see a very slight change.

[39:27] But what's being estimated here is a fixed rate for Valley Forge of $140.5

[39:33] $15.76 per 1,000 gallons,

[39:36] roughly average quarterly payment of 318 and 42 cents.

[39:41] Penns Preserve,

[39:42] fixed rate of $253.65 a quarter,

[39:47] which I think is about a three and a half to 4% increase

[39:50] over the 2025 rates.

[39:54] Oh, I wrote it down. 3.76%.

[39:56] increase over 2025 rates.

[39:58] And then as always,

[40:00] Easttown and East Goshen are uh build in accordance with the invoices

[40:03] that we receive from those applicable neighboring communities.

[40:06] So we have some small sections of the township that

[40:09] flow directly into our neighbors.

[40:11] Those neighbors bill us and we pass that on to the

[40:15] directly to the uh those particular ratepayers.

[40:20] All right.

[40:21] So, we're coming to the end of the presentation.

[40:24] But I want to continue to look ahead, so just indulge me briefly here.

[40:27] In the years to come, we look forward

[40:30] to the construction of the monument in our neighborhood park.

[40:32] We're hopeful for the acquisition of the Nike site and conversion uh

[40:36] to a public park.

[40:38] We're going to continue our work through the implementation of our

[40:40] comprehensive plan,

[40:42] the upcoming circulation study,

[40:45] implementation of the stormwater master plan,

[40:49] And the final building that's going to need to be replaced here on the

[40:51] campus is the police department garage,

[40:54] um, which will be replaced at some

[40:56] point in the coming years as well.

[40:58] 2027 and beyond.

[41:01] So, thank you all very much.

[41:04] Thanks to the board and to the members of the public that were here

[41:06] for your time and attention this evening.

[41:08] The staff here is an incredibly dedicated group of people, um,

[41:12] that are very proud to serve the board of supervisors and by

[41:14] extension, uh, the constituents of Willistown Township.

[41:17] So thank you for the opportunity to serve.

[41:21] Hannah, thank you very much. - You're welcome.

2026 Proposed Budget Presentation

Transcript