[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.