By Tara Figurski
Staff Writer
Truro Township Administrator Jason Nicodemus released the township’s most recent Comprehensive Financial Analysis Report at the Truro Township trustees’ February meeting.
Nicodemus said a goal of the report is to provide meaningful historical fiscal data for the township over a 10 year period that can be used to monitor changes in financial condition. The report currently has data from 2009 through 2016.
Township officials produced a series of financial indicators in response to the need for evaluating the financial condition of Truro Township.
According to the report, the system was developed by the International City/County Management Association and modified for Truro’s use allowing the township to: identify emerging financial problems to take corrective action; develop remedial steps to deal with issues; monitor changes in financial conditions; and project future financial needs.
Nicodemus said the township saw its largest increase in the general fund actual revenues to expenses.
The township tracts revenue per capita, which varies in relation to changes in population size, according to the report. As populations increase, the need for services increases. If per capita revenue decreases, the township might be able to maintain existing service levels.
In 2016, revenue per capita increased by 0.33 percent from 2015, which is reflective of an overall increase in total township revenue from 2015.
“However, this was due to one-time revenue received from the sale of an old obsolete maintenance building,” he said.
The township experienced the biggest decrease in net operating revenue/expense because the township encountered an increase in building and vehicle maintenance costs and had some equipment replacements, Nicodemus said.
“However, the township’s overall expenditures did not exceed actual revenue for the year and (the township) was able to maintain reserve balances,” he said.
In 2016, total township expenditures increased by $494,000 or 6.88 percent according to the report. Over the past seven years, expenses per capital have increased by an average of 2.62 percent. The 2016 expenses with notable increases from 2015 are health insurance expenses, biannual state audit costs, vehicle and building maintenance repairs, equipment replacements and a vehicle replacement, the report states.
Over the next 10 years the township will continue to evaluate the replacement of equipment and vehicles that are extending past their useful lives, Nicodemus said.
“Some of these replacements are expensive in nature and will be taken into consideration during the upcoming budgetary years,” said Nicodemus.
There are no specific areas of concern for township officials, Nicodemus said. He said the township continues to analyze its financial condition as a priority.
“Examining state legislation changes and their impacts to our township are a must,” he said. “Economic changes can influence our trend profiles both positive and negatively.”
The township will continue to monitor and evaluate operational costs for efficiencies and cost saving measures. Nicodemus said the township will focus on the replacement of the fire station and administration offices while maintaining service residents expect.
The township also tracks its fund balance. Fund balances are often considered as reserves for contingencies or as “surplus” dollars available for appropriations, the report states. The level of a township’s fund balances can be an indicator of its ability to withstand unexpected financial emergencies as well as leverage for debt issuance.
In 2016 the fund balance was $5.39 million compared to $5.25 million in 2015.
