Trappe Borough Budget

REVENUE:

Real Estate Taxes-Current Year: The property assessment for the Borough of Trappe, as calculated by the Montgomery County Board of Assessment and for calendar year 2008 is $236,630,950. Trappe Borough Council eliminated this tax several years ago.

Real Estate Taxes-Prior Year: The tax collector turns over all delinquent real estate tax bills, those not paid by January 1st, to the Montgomery County Tax Claim Bureau. The County reimburses the Borough monthly for any taxes received. This prior year tax is used strictly for the Trappe Borough Volunteer Fire Department.

Real Estate Transfer Taxes: Any person purchasing real property (land or buildings) within the Borough of Trappe is subject to a 1/2 of 1% tax. The Perkiomen School District receives the other 1/2 of 1%. The Commonwealth of Pennsylvania also charges an additional 1% which goes into the state coffers. The tax is collected by the Montgomery County Recorder of Deeds and each month the Borough receives a check and a description of who bought and sold property.

Earned Income Taxes: The earned income tax is collected from Borough residents who earn a salary, wage, commission, bonus, incentive pay, fee, tip and any other compensation, for service rendered whether in cash or property and whether paid directly to them or through an agent. The Borough receives 1/2 of 1% of this earned income tax. This is the primary source of Trappe Borough funding. The local school district also receives a like amount.

Local Services Tax (Formerly Emergency & Municipal Services Tax): This is a tax of $52 per year assessed on those that work in Trappe, whether or not they live in Trappe. There is an exemption for those that make less than $12,000 per year and for some of those who serve in the military.

Building Permits (Including Use and Occupancy "U/O"): The Borough of Trappe requires any person constructing or enlarging a building to secure a building permit. The permit fee is based on 1% of the total value of construction, not including plumbing. The use and occupancy permit charge is $75 for a residential resale and $200 for resale of a commercial property.

Plumbing Permits: The Borough charges various fees for the modification or installation of a plumbing system, based whether it is residential or commercial, and the extent of the work.

Liquor License Fees: The Pennsylvania Liquor control Board charges each establishment that serves liquor an annual $200 fee which is then processed and mailed to the Borough.

Fines: The Borough receives monies for fines from the District Justice office for ordinance violations, such as disorderly conduct, underage drinking, and criminal mischief. The Borough also receives a semi-annual payment from the Commonwealth of Pennsylvania resulting from state police arrests made throughout the state. The ratio used by the state for payment is based on a municipality's mileage and population.

Auxiliary Police Service: The Borough of Trappe is reimbursed for auxiliary police, such as directing traffic for funerals and school functions.

Franchise Fees: The cable and FIOS franchise fee that the Borough has negotiated with Comcast and Verizon is based on a percentage of the gross receipts.

Plumbers Registrations: Prior to a plumber performing work in the Borough, they are required to register for a Borough license. A master license is $35, a journeyman license is $20, and an apprentice license is $10.

Utility Tax Adjustment: This distribution is equal to the funds that would have been received from taxes on the real property of public utilities if they were taxable.

Other Fees & Permits: Revenue from planning and subdivision plan review, zoning hearing board hearings and related fees.

Interest Income: The Borough invests its monies in interest bearing accounts such as at Sovereign and other Banks, and the Pennsylvania Local Government Invest Trust.

Reimbursed Legal Fees: Each month the Borough incurs and back bills legal fees that have been incurred by developers. The fees vary based on the legal services performed for that month and an invoice is sent to the developer for reimbursement of those fees.

Reimbursed Engineering Fees: The process is the same as for the legal fees, the back billings appear on the same bill as the legal fees. These fees are based on the Borough Engineer's time spent on the project for that month.

Other Reimbursed Expenses: Fees are charged for copies of zoning ordinances and maps, subdivision and land development ordinances, reimbursements for snow removal on sidewalks, as well as any other administrative services.

Volunteer Fire Relief Fund: The Borough receives monies from the Commonwealth of Pennsylvania that is a pass through to the Borough of Trappe Fireman's Relief Association.

Grants: The Borough anticipates receiving monies from the Department of Environmental Resources for recycling and additional monies from the Department of Conservation and Natural Resources for development of our Parks.

Miscellaneous Receipts & Refunds: The Borough generally receives contributions from local businesses for Trappe Day, net cell phone tower fees via the Collegeville-Trappe Joint Public Works Department, which have been averaging $25,000 per year, and generally minor miscellaneous other revenues.

Transfer from Highway Aid Fund: The General Fund is reimbursed by the Highway Fund (Also known as the State Liquid Fuels Fund) at the end of each calendar year for the replacement of street light heads and other road projects as determined by Trappe Borough Council and PA state law.

Transfer from Water Fund: The General Fund is reimbursed by the Water fund for monies spent for the expenses incurred at Waterworks Park at determined by Trappe Borough Council.

Transfer from Capital Road Improvement Fund: The General Fund is reimbursed by the Capital Road Improvement Fund for significant capital expenditures incurred for maintaining our roads as determined by Trappe Borough Council.

Transfer from Capital Reserve Fund: The General Fund is reimbursed by the Capital Reserve Fund for significant capital expenditures as determined by Trappe Borough Council.

Transfer from Open Space Fund:The General Fund is reimbursed by the Open Space Fund for significant capital expenditures for open space and parks as determined by Trappe Borough Council.

EXPENDITURES:

Borough Manager: Salary expense for the Trappe Borough Manager who is the chief administrative officer of the Borough.

Payroll Taxes: Payroll tax expenses for the Borough Manager are the amounts the employer (Borough of Trappe) pays for Social Security, Pennsylvania Unemployment taxes, etc. based on the Borough Manager's salary.

Employee Benefits: This expenditure is for the Borough Manager's employee benefit package.

Secretary-Base Salary: Salary expense for the Borough Secretary who is the person, who preserves all records of the Borough, transcribes the Council meeting minutes, is the custodian of the Borough seal, prepares bills for the Treasurer and along with the Borough Manager handles the day to day activities of the Borough.

Payroll Taxes-Secretary: Payroll tax expenses for the Borough Secretary are the amounts the employer (Borough of Trappe) pays for Social Security, Pennsylvania Unemployment taxes, etc. based on the Borough Secretary's salary.
Employee Benefits-Secretary: This expenditure is for the Secretary's employee benefit package.

Assistant Secretary: This expenditure is for any part time secretarial support purchased by the Borough on an as needed basis.

Treasurer: Salary expense for the Borough Treasurer who is the record keeper of all Borough receipts and disbursements, and shall annually submit his account to the Borough auditors. The treasurer also prepares for Trappe Borough Council a monthly report of all receipts and expenditures for each fund.

Auditors: Three elected auditors of the Borough meet the first Tuesday of each year to organize and elect a chairman. They then set up a meeting with the Borough Treasurer and Real Estate Tax Collector for the purpose of reviewing of work papers and minutes, verifying of internal controls, and confirming the reconciling of bank accounts. The auditors then file an audit to the Department of Community and Economic Development by April 1st of each year. The auditors receive $50 each for their service for a total of $150.

Office Equipment and Supplies: This expenditure item consists of printing costs, purchase of stamps, copy paper, minor office equipment (such as furniture and computer purchases) and supplies.

General Expenses: The expenses incurred in this area are for legal advertisements, bonds, subscriptions, dues and webpage and newsletters.

Legal Fees and Expenses: The Borough of Trappe retains a Solicitor for representation at Borough Council meetings, Planning Commission meetings, and for legal opinions, court hearings, etc. The Borough also retains an attorney for the Zoning Hearing Board meetings. The stenographer costs and expenses are also charged here. Many of these charges are ultimately billed back to developers.

Engineering Fees and Expenses: The Borough retains an engineering firm to attend both Borough Council meetings and Planning Commission meetings, perform review of subdivision and land development plans, surveying, and any requested guidance for public works projects. Many of these charges are ultimately billed back to developers.

Insurance: This expense includes the Borough's General Liability, Property, Computer, and Inland Marine insurance.

Public Officials Liability Insurance: This is the insurance expense that protects public officials and employees against lawsuits filed by parties who feel that there have been errors or omissions made by Borough officials.

Workers Compensation Insurance: This is statutory coverage expense in which the insurance company stands in the Borough's place and compensates Borough employees, and Trappe Fire Company volunteers, for occupational injuries as outlined in the Workers' Compensation Act of Pennsylvania.

Tax Collection-Base Commission: The elected Borough Tax Collector's compensation is recorded here and is based on receiving $3.10 per each property tax bill that is proposed. This expense was eliminated when Council eliminated the real estate tax.

Tax Collector Payroll Tax: Payroll tax expenses for the Borough Tax Collector are the amounts the employer (Borough of Trappe) pays for Social Security, Pennsylvania Unemployment taxes, etc. based on the Borough Tax Collector's commission.

Tax Collector Bond and Supplies: The Borough Code requires that the property tax collector be properly bonded by the Borough Council. The Borough also reimburses, if necessary, supplies and printing for the collector.

Tax Collection - Local Services Tax (Formerly EMS): The Borough retains the firm of Berkheimer and Associates to collect the Local Services Tax for the Borough.

Tax Collection - Real Estate Transfer Tax: Montgomery County Recorder of Deeds collects the real estate transfer tax on property sold and charges the Borough a 2% commission.

Tax Collection - Earned Income Tax: The Borough retains the firm of Berkheimer and Associates to collect the earned income tax for Borough residents. The Borough pays to Berkheimer a commission of 2.55% for all monies collected.

Tax Collection - School Census: The Perkiomen Valley School District ("PVSD"), on a yearly basis, does a census for the purpose of student enrollment and earned income data. The cost is allocated amongst the six municipalities that comprise the PVSD (Collegeville, Lower Frederick, Perkiomen Twp, Schwenksville, Skippack and Trappe) based on earned income tax collections.

Borough Hall Custodial Services: Expense of outside contractor that performs the weekly interior cleaning of the Borough building.

Borough Hall Utilities: The expense of lighting, heating, water, sewer and phone service for Borough Hall.

Borough Hall Repairs and Maintenance: Borough Council, in 2003, completed a major renovation of the interior and exterior of the Borough Municipal building and the cost for building repairs and maintenance should be relatively minor. These expenses include lawn mowing, snow removal, pest control, and the alarm system.

Building Inspector: The expense of the inspection of new construction, renovation, as well as keeping abreast of the new Pennsylvania Uniform Construction Code is the responsibility of the Borough's appointed Building Inspector.

Plumbing Inspector: The expense of plumbing inspection of new construction and renovation is the responsibility of the Borough's appointed Plumbing Inspector.

Auxiliary Police & Expenses: The expense of the services provided by the Auxiliary Police are for traffic control, churches, funerals and other functions and the related cost of flares, uniforms and minor supplies used by them.

Fire Marshal Expenses: The fire marshal expenses are made up of supplies for fire prevention week (pamphlets, public relations materials) as well as minor office supplies and a monthly fee paid to the Fire Marshal for expenses.

Zoning/Code Enforcement Expenses: In the absence of the Borough Manager, the Building Inspector will charge the Borough for his time in reviewing zoning/code enforcement complaints.

Fire Company Property Tax/Donation: The former .16 mil real estate tax assessed on property owners of Trappe was used for capital expenses of the Trappe Volunteer Fire Company. Trappe now funds this contribution from general revenues.

Emergency Operation Center: The expense of telephone and emergency coordination drills for the Limerick Power Plant.

Montgomery County Planning Commission Contract: Borough of Trappe expense of utilizing the Montgomery County Planning Commission for professional planning services.

Borough Planning Commission Secretary Wages: The expense for the taking and preparation of minutes for the Planning Commission meetings.

Codification: The Borough of Trappe uses the professional services of General Code for the publishing/codifying of ordinances (codifying involves the study and research of every ordinance to determine the validity and legality and then placing all pertinent ordinances in a bound book for reference). The first ordinance was adopted on April 12, 1897. Any ordinances enacted last year will be codified in 2008.

Solid Waste Disposal: Borough of Trappe expense of providing refuse, bulk pickup, recycling collection services and Christmas tree pickup from Borough residents.
Maintenance-Roads/Sidewalks and Drains: The patching of potholes, cleaning of storm drains and minor repairs of streets and sidewalks and drains.

Road Resurfacing and Capital Projects: The expense of major resurfacing and capital road improvement projects. These projects are sometimes funded by Pennsylvania liquid fuel taxes.

Snow Removal: The expense of salting and plowing of Borough streets.

Street Lighting and Maintenance: The expense of replacement of street light ballasts and maintenance.

Traffic Calming Program: The expenses related to the Borough Council created Traffic Calming Committee to address resident traffic concerns. Sample expenses are proper signage, reviewing potential traffic hazards and correcting them, as well as property traffic flow implementation.

Traffic Signal and Sign Maintenance: The Borough uses an outside contractor to maintain the various traffic lights. This expense line item also includes traffic sign maintenance and replacement.

Trappe Historical Society: Each year the Borough has faithfully donated money to the Historical Society to help preserve the treasured past of the Dewees Museum.
Perkiomen Valley Library: Each year the Borough has donated to the Perkiomen Valley Library, located in Schwenksville. It is the regional library for residents of Trappe.

Save the Speakers House: For the past several years the Borough has made an annual donation to the historic home, located on Main Street in Trappe, of the First Speaker of the United Sates House of Representatives, Frederick Augustus Muhlenberg.

Victims Services Fund: This Montgomery County managed organization requested a donation from all the municipalities in the County to offset costs for their program.

Open Space, Parks, Etc.: The expense of park and playground creation and maintenance, including grass cutting and tree trimming at the Borough Parks.

Volunteer Fire Relief Association Fund: The monies received from the Commonwealth of Pennsylvania are transferred in total to the Borough of Trappe Fireman's Relief Association annually. The Borough does not have jurisdiction over the Fireman's Relief Association.

Miscellaneous Expenditures: Other expenses not included above.

Transfers to Municipal Services Capital Fund: Trappe Borough Council frequently transfers funds from the General Fund to the Municipal Services Fund for the purpose of paying off the loans for fire apparatus incurred by the Trappe Fire Company and to accumulate funds for future capital expenditures.