2011 Budget 'Deficiency Ordinance' Recommended for Lower Merion

The Finance Committee of the Lower Merion Board of Commissioners on Wednesday night voted 9-1 to recommend that the full board approve a 2011 “deficiency ordinance” to allow for adjustments between budgeted and actual expenditures for the township’s 2011 budget.

Commissioner Brian Gordon voted against the ordinance.

The township’s funds for special revenue, equipment, highway aid, sinking fund, sanitary sewer and capital projects all require supplemental appropriations from the 2011 un-appropriated fund balance—based upon the estimated versus actual amount within the budget.

With all fund deficiencies, revenues offset the additional expenses, Chief Financial Officer Dean Dortone said.

In a memo about the deficiency ordinance, Dortone wrote that the deficiencies stem from:

• The Special Revenue Fund, where 2011 expenses are about $190,000 higher than appropriated, primarily because of higher than anticipated expenditures relating to the State Pension Contribution and the State Fire Relief Association Contribution
• The Highway Aid Fund, where 2011 expenses are $27,000 higher than budgeted because of higher than expected State Liquid Fuel Tax funds
• The Sinking Fund, where 2011 expenses are some $70,000 higher than expected due to higher debt service—a result of reclassifying the Build America Bonds interest subsidy as revenue, compared to offsetting it against expenses in the 2011 budget
• The Sanitary Sewer Fund, where 2011 expenses are about $180,000 higher than budgeted, mainly because of higher expenditures for debt service and higher projected depreciation of capital assets, when compared to the 2011 Budget
• The Capital Projects Fund, where 2011 expenses are approximately $570,000 higher than the ’11 appropriation, primarily because of the unanticipated refinancing of the township’s Series A and B bond issues