Borough of Brookville - Pennsylvania Economy League

Borough of Brookville Strategic Management Planning Program Report

March 2021

Prepared By:

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Borough of Brookville STMP

March 2021

ACKNOWLEGEMENTS

In 2020, the Pennsylvania Economy League Central Division (PEL) undertook an analysis of the financial condition of the borough of Brookville under the state’s Strategic Management Planning Program. The goals of the analysis were to determine the borough’s current and future overall financial condition.

PEL acknowledges and appreciates the full cooperation of all who contributed to the preparation of this study, including the Brookville elected officials, Borough Manager Dana Rooney and the rest of the borough staff. The analysis could not have been successfully completed without their assistance.

We would also like to thank our partners is this process: Cary Vargo of ARRO Consulting for his work on the management audit, W. Timothy Barry, Esq. for the labor and collective bargaining review and the Department of Community and Economic Development, including Local Policy Specialist, Terri Cunkle. PEL is Pennsylvania’s premier public policy think tank with offices in Harrisburg and Wilkes-Barre and affiliated organizations in Philadelphia and Pittsburgh. We are a 501(c)(3) educational and research organization formed in 1936.

Our mission includes:

• Independent. Insight. Information:

For 80+ years, we have provided objective, fact-based analysis to support good government,

serving as a trusted advisor to state and local officials

• Technical assistance to state and local government:

Our dedicated staff of expert policy professionals and consultants work with communities to

create fiscal sustainability and efficient public services

• Independent research on state and local issues impacting our communities:

Our non-partisan, data-driven research exposes government inefficiencies and provides

information that policy makers can use to design real solutions

• Civic education for local business, non-profit and government officials statewide:

We provide regional policy forums, expert testimony and more that give insight on emerging

policy issues and form coalitions of diverse partners

PEL’s financial analysis services served as a model for the state’s Strategic Management Planning Program (STMP), formerly the Early Intervention Program. PEL has completed over two dozen EIP/STMP plans in all types and sizes of municipalities.

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March 2021

Table of Contents

CHAPTER 1 GOVERNMENT STRUCTURE AND DEMOGRAPHICS .......................................... 6

Government Overview................................................................................................................................... 6

Introduction ................................................................................................................................................. 6

Location and Government Structure ...................................................................................................... 7

Overview of Government Services, Staffing, Taxes, and Fees ........................................................... 7

Demographic Patterns .................................................................................................................................... 8

Introduction ................................................................................................................................................. 8

Population .................................................................................................................................................... 8

Population by Age Group ......................................................................................................................... 9

Births, Deaths, and Population Change 1990 through 2018 ............................................................... 9

Housing Units ........................................................................................................................................... 10

Median Value of Owner-Occupied House........................................................................................... 11

Per Capita Income .................................................................................................................................... 12

Median Household Income .................................................................................................................... 12

Families Below Poverty Level................................................................................................................. 13

CHAPTER 2 HISTORICAL FINANCES ................................................................................................... 14

Introduction ................................................................................................................................................... 14

Methodology .................................................................................................................................................. 14

Financial Summary ........................................................................................................................................ 14

Total Revenues .............................................................................................................................................. 16

Assessed Value .......................................................................................................................................... 17

Tax Revenue .............................................................................................................................................. 18

Expenditures .................................................................................................................................................. 21

Departmental Expenditures .................................................................................................................... 21

Personnel and Non-Personnel Expenditures ...................................................................................... 22

2020 Estimated vs. 2020 Budget ................................................................................................................. 23

Property Tax Benchmarks ........................................................................................................................... 24

Other Funds ................................................................................................................................................... 26

The Brookville Municipal Authority .......................................................................................................... 27

CHAPTER 3 FINANCIAL PROJECTIONS ............................................................................................. 28

Introduction ................................................................................................................................................... 28

Revenue Assumptions.............................................................................................................................. 28

Expenditure Assumptions ....................................................................................................................... 28

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Capital Assumptions................................................................................................................................. 28

Financial Summary ........................................................................................................................................ 29

Total Revenues .............................................................................................................................................. 29

Total Taxes Overview .............................................................................................................................. 30

Total Non-Taxes Overview .................................................................................................................... 30

Expenditures .................................................................................................................................................. 31

Departmental Expenditures .................................................................................................................... 31

Personnel, Non-Personnel and Capital Expenditures ........................................................................ 32

Personnel Expenditures ........................................................................................................................... 32

CHAPTER 4 MANAGEMENT AUDIT .................................................................................................... 34

Introduction ................................................................................................................................................... 34

Administration and Finance (General Government) .............................................................................. 34

Recommendations Administration and Finance ................................................................................. 38

Police Department ........................................................................................................................................ 39

Recommendations – Police Department .............................................................................................. 41

Public Works .................................................................................................................................................. 42

Recommendations – Public Works ....................................................................................................... 44

Parks and Recreation .................................................................................................................................... 45

Recommendations – Parks ...................................................................................................................... 46

Economic and Community Development ................................................................................................ 46

Recommendations – Economic and Community Development ..................................................... 47

Water and Wastewater .................................................................................................................................. 47

Recommendations Water and Wastewater ........................................................................................... 48

Planning and Economic Development ..................................................................................................... 48

Recommendations Planning and Economic Development .............................................................. 49

CHAPTER 5 REVIEW OF LABOR AGREEMENTS ............................................................................ 50

Introduction ................................................................................................................................................... 50

Methodology .................................................................................................................................................. 50

Police ............................................................................................................................................................... 50

AFSCME ........................................................................................................................................................ 51

CHAPTER 6 OBSERVATIONS AND RECOMMENDATIONS ...................................................... 53

Introduction ................................................................................................................................................... 53

Recommendations ......................................................................................................................................... 54

Administration and Finance .................................................................................................................... 54

Economic Development ......................................................................................................................... 59

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Public Works ............................................................................................................................................. 59

Police ........................................................................................................................................................... 61

Parks ............................................................................................................................................................ 62

Water and Wastewater ............................................................................................................................. 63

Collective Bargaining ................................................................................................................................ 63

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March 2021

CHAPTER 1

GOVERNMENT STRUCTURE AND DEMOGRAPHICS

In 2020, the Pennsylvania Economy League Central Division (PEL) undertook an analysis of the financial condition of the Borough of Brookville under the Commonwealth’s Strategic Management Planning Program. The goals of the analysis were to determine the borough’s current and future overall financial condition.

The current analysis involved a review of the borough’s financial reports, independent audits, debt payment schedules, pension obligations, the 2020 budget, other fiscal data, and additional relevant information and factors that may affect the current and future financial condition of the borough, including sociodemographic data. Furthermore, PEL staff participated in discussions with borough officials.

PEL acknowledges and appreciates the full cooperation of all who contributed to the preparation of this study, including the Brookville elected officials, Borough Manager Dana Rooney and the rest of the borough staff. The analysis could not have been successfully completed without their assistance.

During this project, PEL:

• Analyzed the borough’s financial history from 2014 through 2020 focusing on such factors as revenues, expenditures, tax base, operating positions and debt structure.

• Examined the historical data and the 2019 and 2020 budgets in relation to ongoing operations, salary and benefit requirements and other obligations of the borough.

• Reviewed all tax bases and revenues, major user fees and other revenue sources.

• Projected, to the extent possible based on known factors and available data, revenues, and expenditures for 2021 through 2025 assuming continuation of obligated levels of wages and operations, existing revenue patterns and other operating trends.

• Made recommendations to assist the borough in developing and improving its administration, public works and public safety services.

Government Overview

Introduction

The existence of municipal governments in Pennsylvania is authorized by the Pennsylvania Constitution and state law. All land within the commonwealth is incorporated by law as a municipality with its own government. There are three primary types or classifications of municipal governments: cities (of the first, second, second class A or third class), boroughs and townships (of the first or second class).

Municipal governments in Pennsylvania are the principal providers of direct public services to citizens. Services often include, among others, police and fire protection, construction and maintenance of roadways and bridges, street lighting, parks and recreation facilities and programs, planning and zoning activities, enforcement of building and related codes, water treatment and distribution, sewage collection and treatment, storm water management, solid waste collection and disposal, and recycling.

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Location and Government Structure

The town of Brookville was established and designated as the Jefferson County seat in 1830 and incorporated in 1843, although the first settlement dates to 1796 with the arrival of Joseph and Andrew Barnett and Samuel Scott in the area known as Port Barnett. During the nineteenth century, Brookville’s greatest growth resulted from the lumber industry. By the mid-1800s, there were 22 mills on the North Fork Creek and 20 mills on both Sandy Lick and Redbank creeks. With the coming of the railroad in 1873, industrial and commercial development grew and prospered during the late 19th and early 20th centuries. Of note was the Twyford Motor Car Company, which operated from 1905 to 1907 and produced the world’s first four-wheel drive automobile. During the 20th Century, residential, commercial and industrial development spread to the borough’s periphery, while the downtown revitalization program became a recognized award-winning model.

Brookville operates under Pennsylvania’s Borough Code. The form of government established by the code is characterized by a strong and dominant council and a weak executive in terms of duties, responsibilities and powers.

Brookville Council is comprised of seven members, who are elected at large to four-year staggered terms. The powers of council set forth in the Borough Code are broad and extensive covering virtually the whole range of municipal functions. The general supervision of borough affairs is in the hands of council, and many of the roles found in separate branches or levels of the state and federal governments are combined in the council members. Council serves as the legislative body by setting policy, enacting ordinances and resolutions, adopting budgets and levying taxes. Council may also perform executive functions, such as developing the budget, enforcing ordinances, approving expenditures and hiring employees. While council may also play a large role in administrative activities by overseeing the day-to-day operation of a borough government, that function is handled by an appointed borough manager.

The position of mayor is granted few statutory powers by the Borough Code. The mayor has no vote on council except to break ties; however, the mayor does have a defined veto power. Borough mayors retain limited administrative powers, chiefly centered on supervising the daily operations of the police department. The borough also has an elected tax collector and an appointed auditor, the latter being a certified public accountant firm.

Overview of Government Services, Staffing, Taxes, and Fees

The borough depicts its administration as the borough manager, the borough/municipal authority solicitor, borough/municipal authority engineer, the director of public works and the mayor, although the solicitor and engineer are employed by outside firms. Departments include finance/tax collection, fire and emergency services, health and code, planning and zoning, public works, and police, as well as the Brookville Municipal Authority, which is responsible for the water and wastewater systems and treatment for the borough and neighboring jurisdictions. Brookville has 15 full-time and 10 part-time employees, including its own police department with six full-time and eight part-time officers, and a volunteer fire department. The borough also functions with assistance from several committees, commissions and boards.

In 2020, Borough of Brookville real estate taxes are 16.915 mills, including 14.29 mills for general purpose, 1.5 mills for fire equipment and fire houses, 0.225 mills for library, and 0.9 mills for street

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March 2021

lighting. The resident earned income tax is 1.0 percent, which is split with the Brookville Area School District. Other taxes include a $52 local services tax of which $5 goes to the school district, 0.5 percent realty transfer tax, 36 mill occupation tax, $60 mechanical devices tax, and $5 per capita tax.

Demographic Patterns

Introduction

Overall, Brookville’s population declined by 9.0 percent from 1970 to 2010, despite a 5.9 percent from 1970 to 1980. A 20.5 percent drop in persons under the age of 18 from 1990 to 2010 and disproportionate number of individuals in that age range in 2010 is consistent with the negative natural population change from 1990 through 2018, which could negatively affect the age 18 to 64 population. A mitigating factor may be that the negative natural population change exceeded the negative total population change, which revealed a net in-migration of 249 individuals for the 18-year period. The median number of owner-occupied homes somewhat decreased while the number of vacant units increased from 1990 to 2010, which may be attributed to the Great Recession coupled with an out-migration during the 2000 to 2010 decade. Wealth measures were positive for the borough from 1990 to 2010, with significant increases in median value of an owner-occupied house, median household income and per capita income, and a decrease in percentage of families below the poverty level. Overall, wealth measures for the borough were comparable to or better than the county, but not as good as the commonwealth.

Population

According to U.S. Census data, Brookville’s population decreased by 390 persons or 9.0 percent from 1970 to 2010 with an 8.4 percent decline from 1980 to 1990 and a 7.2 percent decline from 2000 to 2010, contrary to the 5.9 percent increase from 1970 to 1980. Jefferson County realized a 1,505 person or 3.4 percent gain in population from 1970 to 2010, although it was positive only because of the 10.5 percent increase from 1970 to 1980. The county lost population during each of the next three decades.

Table 1-1

Population trends

1970 1980 1990 2000 2010 Change

1970 to 2010

# %

Borough of Brookville 4,314 4,568 4,184 4,230 3,924 -390 -9.0

Jefferson County 43,695 48,303 46,083 45,932 45,200 1,505 3.4

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March 2021

Figure 1-1

Population trend in Borough of Brookville

Population by Age Group

The borough’s population in the under 18 age group dropped significantly by 198 persons or 20.5 percent between 1990 and 2010, while the number of residents age 18 to 64 and 65 and over decreased by 2.4 percent and 0.7 percent, respectively. In 2010, 19.6 percent of the population in the borough was under 18 years of age, 58.4 percent was between the ages of 18 and 64, and 22.0 percent was age 65 or over, which makes evident a disproportionate fewer number of individuals in the youngest age group.

Table 1-2

Population by age in Borough of Brookville

1990 2000 2010 Change

1990 -2010

# % # % # % # %

Under 18 968 23.1 929 22.0 770 19.6 -198 -20.5

18-64 2,348 56.1 2,435 57.6 2,292 58.4 -56 -2.4

65 & over 868 20.7 866 20.5 862 22.0 -6 -0.7

Total Population 4,184 100.0 4,230 100.0 3,924 100.0 -260 -6.2

Births, Deaths, and Population Change 1990 through 2018

Deaths exceeded the number of births in the borough by 45.5 percent from 1990 through 2018, resulting in a negative natural population change of 625 residents, which is consistent with the population by age group data. However, the negative natural population change exceeded the negative total population change by 66.2 percent over the period for a net in-migration of 249 individuals.

3,600

3,800

4,000

4,200

4,400

4,600

4,800

1970 1980 1990 2000 2010

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Table 1-3

Resident births, deaths and population trend in Borough of Brookville

1990 to 1999

2000 to 2009

2010 to 2018

1990 to 2018

Births 459 496 420 1,375

Deaths 703 629 668 2,000

Natural Pop. Change -244 -133 -248 -625

Total Population (start) 4,184 4,230 3,924 4,184

Total Population (end) 4,230 3,924 3,808 3,808

Total Population Change 46 -306 -116 -376

Less Natural Change -244 -133 -248 -625

Net Migration 290 -173 132 249

Housing Units

The number of owner-occupied homes in the borough somewhat declined from 1990 to 2010, decreasing by 56 units or 4.7 percent. In contrast, renter-occupied units increased by 80 or 15.0 percent, while the number of vacant units increased by 13 or 6.8 percent. The decrease in owner-occupied and renter-occupied housing and increase in vacant housing from 2000 to 2010 may be attributed to the economic recession of 2008-2010 coupled with the previously depicted out-migration during that decade. The 2020 Census data will be useful in determining whether the observed trend has persisted over the past ten years.

Table 1-4

Owner-occupied, renter-occupied and vacant housing units in Borough of Brookville

1990 2000 2010 Change

1990-2010 # % # % # % # %

Owner Occupied 1,187 62.1 1,200 60.7 1,131 58.1 -56 -4.7

Renter Occupied 532 27.9 649 32.8 612 31.4 80 15.0

Total Occupied 1,719 90.0 1,849 93.6 1,743 89.5 24 1.4

Vacant 191 10.0 127 6.4 204 10.5 13 6.8

Total Units 1,910 100.0 1,976 100.0 1,947 100.0 37 1.9

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March 2021

Figure 1-2

Owner-occupied, renter-occupied and vacant housing units in Borough of Brookville

Median Value of Owner-Occupied House

The median value of owner-occupied homes in Brookville increased by $18,400 or 37.5 percent from 1990 to 2000 and by $23,900 or 35.4 percent from 2000 to 2010, resulting in a $42,300 or 86.2 percent gain for the 20-year period. Brookville’s median value of owner-occupied homes was consistently higher than that for Jefferson County by an average of 14.6 percent for 1990, 2000 and 2010, but substantially lower than that for the commonwealth by an average of 34.2 percent, with the value in 2010 being 42.6 percent less. The median value of owner-occupied homes in Brookville and Jefferson County similarly increased by 86.2 percent and 88.5 percent, respectively, from 1990 to 2000.

Table 1-5

Median value of owner-occupied home

1990 2000 2010* Change

1990 - 2010

$ %

Borough of Brookville $49,100 $67,500 $91,400 42,300 86.2

Jefferson County $42,500 $59,100 $80,100 37,600 88.5

Pennsylvania $69,700 $97,000 $159,300 89,600 128.6

* US Census Bureau American Community Survey margin of error for median value of an owner-occupied home in 2010 for the Borough of Brookville and Jefferson County is +/-$6,772 and +/-$1,778, respectively.

0

200

400

600

800

1,000

1,200

1,400

1990 2000 2010

Owner Occupied Renter Occupied Vacant

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Per Capita Income

Brookville’s per capita income notably climbed by $14,507 or 122.6 percent from 1990 to 2010, which increased the difference over the county’s per capita income from 11.8 percent in 1990 to 29.7 percent in 2010. Over that same period, the difference between the borough’s and the commonwealth’s per capita income lessened, decreasing from 15.9 percent to 2.6 percent below the per capita income for Pennsylvania.

Table 1-6

Per capita income

1990 2000 2010* Change

1990 - 2010

$ %



Pennsylvania $14,068 $20,880 $27,049 12,981 92.3

* US Census Bureau American Community Survey margin of error for median per capita income in 2010 for the Borough of Brookville and Jefferson County is +/-$4,488 and +/-$749, respectively.

Median Household Income

Median household income in Borough of Brookville increased from $21,690 in 1990 to $38,578 in 2010—a growth of $16,888 or 77.9 percent. During the same period, median household income in Jefferson County rose from $22,063 to $38,406, a 74.1 percent increase. For Pennsylvania, median household income grew from $29,069 in 1990 to $50,398 in 2010 or by 73.4 percent. The borough’s median household income was close to that of the county for all three years, but an average of 24.0 percent below that of Pennsylvania.

Table 1-7

Median household income

1990 2000 2010*

Change

1990-2010

$ %



Pennsylvania $29,069 $40,106 $50,398 21,329 73.4

* US Census Bureau American Community Survey margin of error for median household income in 2010 for the Borough of Brookville and Jefferson County is +/-$6,721 and +/-$1,215, respectively.

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Families Below Poverty Level

The percentage of families below the poverty level decreased in Brookville from 12.8 percent in 1990 to 7.6 percent in 2010. Although the percentage of families in Brookville was above that for Jefferson County and Pennsylvania in 1990 and 2000, by 2010 it had reportedly declined to a level below that for the county and commonwealth, which is somewhat consistent with the per capita and median household income findings. From 1990 to 2010, the percentage of families below the poverty level in Brookville dropped by 40.6 percent, while the percentage in the county decreased by 8.3 percent and in the commonwealth increased by 3.7 percent.

Table 1-8

Percentage of families below poverty level

1990 2000 2010

Borough of Brookville 12.8 9.1 7.6

Jefferson County 10.9 8.5 10.0

Pennsylvania 8.2 7.8 8.5

* US Census Bureau American Community Survey margin of error for percentage of families below poverty level in 2010 for the Borough of Brookville and Jefferson County is 4.2 percent and 1.2 percent, respectively.

Figure 1-3

Percentage of families below the poverty level

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1990 2000 2010

Borough of Brookville Jefferson County Pennsylvania

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CHAPTER 2

HISTORICAL FINANCES

Introduction

The borough of Brookville experienced surpluses in four out of five years during the historical review period from 2015 to 2019. During that time, the borough increased its general purpose property tax millage twice, with another millage hike in 2020. Brookville’s property tax revenue rose by over $200,000 or 26 percent as of 2019 because of the tax increases. In contrast, the taxable value of real estate, earned income and local services tax revenue showed little to no growth.

In terms of non-tax revenue, public safety earnings experienced the highest increase as the borough received reimbursements for its school resource officer. The largest sources of non-tax revenue are rents and royalties, which includes significant rental income for the borough complex. On the expenditure side, once transfers and capital expenditures are removed, the police department is the borough’s largest cost center.

In 2020, the borough experienced a surplus of almost $300,000, mostly due to reductions in budgeted expenditures.

Methodology

PEL compiled this historical review of the borough’s General Fund through analysis of year-end financial reports, independent audits, annual budgets, salary and benefit data, pension obligations and other financial obligations, as well as interviews with borough officials.

The borough operates on a cash basis with seven individual funds. The historical financial review concentrates on the General Fund, which is the borough’s primary operating fund. The General Fund operates on a cash basis of accounting. Other funds include liquid fuels, streetlights, fire protection, library, capital projects and the Walter Dick Park Endowment. Dedicated special purpose tax millage revenue for the respective services is recorded in the streetlights, fire protection and library funds.

Financial Summary

The borough’s General Fund experienced surpluses in four out of five years during the historical review period and one year of deficit as seen in Table 2-1. Revenues increased by 15 percent during that period reflecting general purpose tax increases in 2016 and 2017, and debt millage added in 2017. In contrast, expenditures grew by only 5.5 percent.

Table 2-2 eliminates one-time events from the General Fund including transfers, loan proceeds, storm water costs and capital expenditures. Removing these one-time events give a truer picture of the borough’s operational revenues and expenditures. The adjustment eliminates the 2016 deficit and results in larger annual surpluses. See Figure 2-1.

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Table 2-1

General Fund Revenues, Expenditures and Surplus/(Deficit)

2015 2016 2017 2018 2019

Change

2015 to 2019

Actual Actual Actual Actual Actual $ %

Revenues $2,267,924 $2,342,925 $2,381,222 $2,289,232 $2,608,851 340,927 15.0

Expenditures $2,228,733 $2,451,177 $2,044,115 $2,083,199 $2,350,904 122,171 5.5

Surplus/(Deficit) 39,190 -$108,252 $337,108 $206,033 $257,946

Table 2-2

Adjusted General Fund Revenues, Expenditures and Surplus/(Deficit)

2015 2016 2017 2018 2019

Actual Actual Actual Actual Actual

Revenues $2,267,924 $2,342,925 $2,381,222 $2,289,232 $2,608,851

Less:

Transfers 0 -300,000 -55,317 0 -167,458

Loan Proceeds -330,100 0 0 0 0

Net Revenue $1,937,824 $2,042,925 $2,325,905 $2,289,232 $2,441,392

Expenditures $2,228,733 $2,451,177 $2,044,115 $2,083,199 $2,350,904

Less:

Storm Water 0 -161,493 -43,859 0 0

Transfers -98,969 -102,600 0 0 -178,458

Capital -252,135 -158,875 -93,925 -110,211 -52,695

Net Expenditures $1,877,630 $2,028,209 $1,906,331 $1,972,988 $2,119,751

Net Surplus/(Deficit) $60,194 $14,716 $419,574 $316,244 $321,641

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Figure 2-1

Surplus/(Deficit) and Net Surplus/(Deficit)

Total Revenues

• Tax revenue accounts for 60 to 70 percent of the borough’s total revenues, while non-tax revenue accounts for another 25 to 30 percent of total revenues.

• Total taxes accounted for more than half of increased revenue over the period at $273,085, while non-tax revenue grew by almost the same dollar amount.

• Transfers and loan proceeds are related to one-time events.

• Transfers into the General Fund were: 2016, from the Capital Project Fund; 2017, from the Fire Fund; and 2019, from the General Fund Reserve.

• The 2015 loan proceeds of $330,100 were for a new truck and various other capital expenditures.

Table 2-3

Total Revenues

2015 2016 2017 2018 2019 Change

2015-2019


Tax Revenue $1,362,307 $1,404,092 $1,681,819 $1,635,845 $1,635,391 273,085 20.0

Non-Tax Revenue 575,517 638,833 644,086 653,387 806,001 230,484 40.0

Transfers 0 300,000 55,317 0 167,458 167,458 100.0

Loan Proceeds 330,100 0 0 0 0 -330,100 -100.0

Total Revenue $2,267,924 $2,342,925 $2,381,222 $2,289,232 $2,608,851 340,927 15.0

-$200,000

-$100,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

2015 2016 2017 2018 2019

Surplus/(Deficit) Net Surplus/(Deficit)

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Assessed Value

In 2005, Jefferson County adjusted the common level ratio used to calculate assessed value. That adjustment put Brookville’s assessed value more in line with its market value. Assessed value in the borough has declined since then while market value has grown, indicating that the borough has been unable to harness that natural grown in its tax revenue. Since 2011, market value has increased by 9.04 percent while assessed value declined by 5.34 percent.

Market Value Change %

Change Assessed

Value Change %

Change Assessed to

Market

2001 $103,089,200 $23,019,820 22.33%

2002 107,776,100 4,686,900 4.55 23,289,045 269,225 1.17 21.61%

2003 112,781,700 5,005,600 4.64 24,713,625 1,424,580 6.12 21.91%

2004 119,245,400 6,463,700 5.73 24,093,530 -620,095 -2.51 20.20%

2005 120,944,300 1,698,900 1.42 81,130,160 57,036,630 236.73 67.08%

2006 137,180,900 16,236,600 13.42 82,507,620 1,377,460 1.70 60.15%

2007 137,949,400 768,500 0.56 82,863,520 355,900 0.43 60.07%

2008 151,644,153 13,694,753 9.93 83,069,210 205,690 0.25 54.78%

2009 152,423,875 779,722 0.51 83,464,790 395,580 0.48 54.76%

2010 161,192,840 8,768,965 5.75 83,278,640 -186,150 -0.22 51.66%

2011 161,511,632 318,791 0.20 83,436,640 158,000 0.19 51.66%

2012 163,971,298 2,459,666 1.52 82,823,170 -613,470 -0.74 50.51%

2013 163,995,620 24,322 0.01 82,842,080 18,910 0.02 50.51%

2014 162,922,184 -1,073,436 -0.65 82,710,340 -131,740 -0.16 50.77%

2015 162,740,752 -181,432 -0.11 82,582,810 -127,530 -0.15 50.75%

2016 175,228,809 12,488,057 7.67 82,573,550 -9,260 -0.01 47.12%

2017 173,574,384 -1,654,425 -0.94 81,820,820 -752,730 -0.91 47.14%

2018 176,351,613 2,777,229 1.60 79,099,210 -2,721,610 -3.33 44.85%

2019 175,794,219 -557,394 -0.32 78,820,990 -278,220 -0.35 44.84%

Change 2001 - 2019 $72,705,019 70.53 $55,801,170 242.40

Change 2011- 2019 $14,601,378 9.04 -$4,457,650 -5.34

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March 2021

Figure 2-2

Assessed value versus market value

Tax Revenue

Real Estate Tax Rates

The borough raised its total real estate millage from 11.315 mills in 2015 to 16.915 mills in 2020, an almost 50 percent increase. General purpose millage grew from 8.99 mills in 2015 to 14.290 mills in 2020. The borough also added debt payment millage from 2017 to 2019 of 0.8 mills. Both the general purpose and debt millage are recorded in the General Fund. Special purpose millage for fire fluctuated between 1.5 and 1.1 mills. Revenue from the fire millage is recorded in the Fire Fund. Street lighting millage rose from 0.6 to 0.9 mills. Street lighting millage is recorded in the Street Lighting Fund. Library millage, which is recorded in the Library Fund, remained constant at 0.225.

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

Assessed Value Market Value

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Table 2-3

Real estate tax rates

Tax 2015 2016 2017 2018 2019 2020

Real Estate - General Purpose (mills) 8.990 9.990 13.490 13.490 13.490 14.290

Real Estate - Fire Equipment & Firehouses (mills) 1.500 1.500 1.100 1.100 1.100 1.500

Real Estate - Library (mills) 0.225 0.225 0.225 0.225 0.225 0.225

Real Estate - Street Lighting (mills) 0.600 0.600 0.600 0.900 0.900 0.900

Real Estate - Debt Payment (mills) 0.000 0.000 0.800 0.800 0.800 0.000

Real Estate Total 11.315 12.315 16.215 16.515 16.515 16.915

Percent Change from Prior Year 3.66% 8.84% 31.67% 1.85% 0.00% 2.42%

Total Taxes Overview

• Real estate tax revenue for general purposes grew over the period by over $200,000 or 26.4 percent as the result of property tax increases, accounting for most of the growth in total taxes.

• Debt service millage was levied for a new truck and various capital expenditures and ended after 2019.

• Earned income at 0.5 percent is the borough’s second most productive tax but showed little growth over the historical review period, increasing by only 1.3 percent.

• Local services tax at $47 annually, which reflects employment within the borough, declined slightly.

• The per capita tax is $5 while the occupation tax is $36; neither is a significant source of income.

• The real estate transfer tax of 0.5 percent fluctuates with real estate activity within the borough.

Table 2-4

Total tax revenues

2015 2016 2017 2018 2019 Change

2015-2019


Real Estate $810,205 $880,559 $1,099,300 $1,042,881 $1,024,017 213,812 26.4

Earned Income 347,922 333,635 332,845 355,558 352,537 4,615 1.3

Local Services 140,489 136,649 131,993 134,483 140,292 -197 -0.1

Debt Service 0 0 59,802 60,857 59,895 59,895 100.0

Real Estate Transfer 49,295 39,271 43,379 28,716 43,495 -5,800 -11.8

Per Capita 11,165 10,694 11,182 10,490 12,006 841 7.5

Occupation 3,230 3,284 3,318 2,862 3,149 -81 -2.5

Tax Revenue $1,362,307 $1,404,092 $1,681,819 $1,635,845 $1,635,391 273,085 20.0

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March 2021

Total Non-Taxes Overview

• Rents and royalties are the largest non-tax revenue category and mostly include fees for rent of the borough complex.

• State shared revenues is primarily from state aid for pension and fire with a small amount for Act 13 impact fees. It is the borough’s second largest non-tax revenue category and has growth of almost $40,000 or 33 percent.

• Cable franchise fee revenue accounts for the bulk of license and permit revenue.

• Fines and forfeits include public safety violations and parking fine revenue. The category was flat.

• Highway and streets earnings include parking revenue with meter revenue ranging from $37,500 to $39,000 annually and parking lot permit revenue of approximately $12,000 annually. Meters are 5 cents for 15 minutes and permit costs are $300 a year or $30 a month. Also included is revenue received from PennDOT for snow plowing. This category spiked in 2019 due to the sale of a dump truck.

• Public safety earnings record the reimbursement for the school resource officer from the School District starting at $15,500 in 2018 and growing to $71,900 in 2019. This category also includes payment for contracting police protection and revenue from the drug task force.

• General government earnings include fees associated with zoning and code enforcement, reimbursements and various miscellaneous revenue.

Table 2-5

Non-tax revenues

2015 2016 2017 2018 2019 Change

2015-2019


Rents & Royalties $227,747 $222,106 $221,460 $230,824 $233,998 6,251 2.7

State Shared Revenue 119,641 131,130 142,553 138,646 159,005 39,364 32.9

Highway/Street Earnings 48,369 59,722 53,848 55,829 105,264 56,896 117.6

Public Safety Earnings 13,537 49,521 25,044 49,427 100,437 86,900 642.0

Licenses & Permits 60,538 67,633 71,793 67,768 66,927 6,390 10.6

Fines & Forfeits 51,722 47,738 52,018 51,740 57,036 5,314 10.3

General Gov Earnings 50,663 17,903 43,767 37,481 46,323 -4,340 -8.6

Interest 783 1,360 1,883 9,868 27,958 27,175 3,471.0

Miscellaneous Revenue 488 724 44 55 7,092 6,604 1,351.9

PURTA 0 0 1,609 1,824 1,611 1,611 100.0

Culture/Recreation Earnings 2,030 40,995 30,068 9,924 350 -1,680 -82.8

Non-Tax Revenue $575,517 $638,833 $644,086 $653,387 $806,001 230,484 40.0

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March 2021

Expenditures

Departmental Expenditures

• General Government expenditures appear to have risen the most, but actual operating costs are masked by one-time transfers that were made to the Liquid Fuels, Capital, Streetlight and CD funds as shown in Table 2-7. In addition, HVAC repairs in 2019 were approximately $100,000 higher than the historical average.

• General Government includes elected officials, administration, solicitor, IT, engineering, buildings, zoning, codes, debt service and tax collections. Administration costs rose by $29,073 or 20.8 percent from 2015 to 2019.

• Public Works appears to have grown the least among departments, but the change from 2015 to 2019 is skewed by over $200,000 in 2015 capital expenditures.

• Salaries and wages in Public Works increased from $195,084 in 2015 to $260,457 in 2019. Overall, personnel costs in the department rose from $443,116 in 2015 to $460,868 in 2019.

• Costs for part-time police officers increased in 2018 and 2019, appearing to put a check on full time officer wages that were starting to climb in 2016 and 2017. Still, personnel costs in the Police Department rose from $622,512 in 2015 to $753,703 in 2019. Overall department expenditures increased by over 12 percent.

• Police expenditures include costs for new vehicles in four out of five years and for technology in 2015 and 2019.

• Spending in culture and recreation fluctuated considerably during the historical review period with significant changes in personnel costs and a capital expenditure in 2016.

Table 2-6

Departmental expenditures

2015 2016 2017 2018 2019 Change

2015 to 2019


General Government $565,798 $731,732 $560,148 $523,898 $841,920 276,121 48.8

Police 759,441 737,736 707,518 848,115 855,721 96,280 12.7

Fire 33,443 34,073 90,095 33,614 33,301 -142 -0.4

Public Works 845,982 877,153 642,453 666,102 609,457 -236,525 -28.0

Culture/Recreation 24,069 70,483 43,901 11,471 10,506 -13,563 -56.3

Total Expenditures $2,228,733 $2,451,177 $2,044,115 $2,083,199 $2,350,904 122,171 5.5

Table 2-7

General Government Transfers

2015 2016 2017 2018 2019


Transfer to CD $0 $0 $0 $0 $167,458

Transfer to Street Light Fund 0 24,610 0 0 6,000

Transfer to Capital Fund 0 0 0 0 5,000

Transfer to Liquid Fuels Fund 98,969 77,990 0 0 0

Total $98,969 $102,600 $0 $0 $178,458

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March 2021

Personnel and Non-Personnel Expenditures

• Personnel expenditures made up the majority of the borough’s budget, accounting for 60 to 70 percent of total expenditures from 2015 to 2019.

• Services are the next largest category at an average of 15 percent of total expenditures and includes non-health related insurances, professional and contracted services, utilities, repairs and similar items.

• Debt service relates to the $300,000 capital general obligation note obtained in 2015. The five-year note matured in 2020.

• Transfers were made to the Liquid Fuels Fund and to the borough’s reserve account.

Table 2-7

Personnel and non-personnel expenditures

2015 2016 2017 2018 2019


Personnel $1,303,760 $1,417,004 $1,394,384 $1,443,879 $1,483,641

Services 316,613 341,321 272,238 234,320 354,490

Supplies 190,593 297,064 178,950 194,422 180,215

Other 60,855 39,207 39,702 35,451 36,489

Capital 252,135 158,875 93,925 110,211 52,695

Debt Service 5,810 95,106 64,916 64,916 64,916

Transfers 98,969 102,600 0 0 178,458

Total Expenditures $2,228,733 $2,451,176 $2,044,114 $2,083,199 $2,350,904

Personnel Expenditures

• Salary and wages, the largest personnel expenditure, grew steadily from $789,706 in 2015 to $927,617 in 2019, an increase of almost $138,000.

• Healthcare climbed from 2015 to 2016, but the borough then saw reductions through 2019. This was the result of an increase in the employee paid percentage of premiums.

• Pension costs rose approximately $20,000 from 2015 and 2016 as compared to 2018 and 2019.

• Overtime declined from $52,035 in 2015 to $18,099 in 2019, in part because of the reclassification of a police department position.

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March 2021

Table 2-8

Personnel expenditure detail

2015 2016 2017 2018 2019


Salary & Wages $789,706 $863,976 $851,315 $891,989 $927,617

Longevity 6,427 8,485 9,910 0 18,063

Overtime 52,035 32,652 36,364 23,901 18,099

FICA 40,601 44,881 42,012 46,065 47,942

Healthcare 208,048 265,351 262,867 245,260 239,355

Life Insurance 7,724 8,315 7,194 7,780 10,971

Pension 128,375 127,791 115,788 151,095 146,013

Unemployment Comp 7,074 6,829 6,324 7,205 7,711

Uniform Allowance 6,035 7,594 3,750 9,297 8,377

Workers Comp 57,733 51,129 58,862 61,286 59,493

Personnel Expenditures $1,303,760 $1,417,004 $1,394,384 $1,443,879 $1,483,641

2020 Estimated vs. 2020 Budget

Summary

Brookville was anticipated to end 2020 in a breakeven position but instead had a $290,898 surplus. Overall revenues were slightly higher than budget while expenditures were $289,983 less than anticipated. On the revenue side, tax revenue in general was higher than budgeted amounts as was the fines and forfeits non-tax category. Expenditures were down across the board in all departments as compared to budget with reductions in benefits and salaries and wages.

Table 2-9

2020 Actual vs. 2020 Budget

2020 2020 2020 Actual vs. 2020 Budget

Actual Budget $ %

Total Revenues $2,403,643 $2,402,728 $915 0.04

Total Expenditures 2,112,745 2,402,728 -289,983 -12.07

Surplus/(Deficit) $290,898 $0

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March 2021

Table 2-10

2020 Estimated Revenues vs. 2020 Budget Revenues

2020 2020 2020 Est vs. 2020 Budget

Category Estimated Budget $ %

Real Estate Tax $1,152,024 $1,116,000 36,024 3.2

Occupation Tax 3,340 3,280 60 1.8

Per Capita Tax 10,473 10,300 173 1.7

Real Estate Transfer Tax 47,256 30,000 17,256 57.5

Earned Income Tax 337,982 308,000 29,982 9.7

LST 139,160 130,000 9,160 7.0

Debt Service Tax 6,846 0 6,846 100.0

Mechanical Device Tax 0 0 0 0.0

Licenses & Permits 69,617 64,585 5,032 7.8

Fines & Forfeits 69,575 54,200 15,375 28.4

Interest 9,516 15,000 -5,484 -36.6

Rents & Royalties 240,631 245,000 -4,369 -1.8

PURTA 1,708 1,900 -192 -10.1

State Shared Revenue 138,695 150,000 -11,305 -7.5

General Government Earnings 26,990 23,760 3,230 13.6

Public Safety Earnings 75,166 95,300 -20,134 -21.1

Highway/Street Earnings 43,136 55,600 -12,464 -22.4

Culture/Recreation Earnings 4,409 500 3,909 781.7

Miscellaneous Revenue 27,118 50 27,068 54,135.3

Transfers 0 99,253 -99,253 -100.0

Loan Proceeds 0 0 0 0.0

Total Revenues $2,403,643 $2,402,728 915 0.0

Table 2-10

2020 Estimated Expenditures vs. 2020 Budget Expenditures

2020 2020 2020 Est vs. 2020 Budget

Estimated Budget $ %

General Government $590,101 $640,700 -50,599 -7.9

Police 754,157 895,303 -141,146 -15.8

Fire 29,527 35,000 -5,473 -15.6

Public Works 725,679 804,125 -78,446 -9.8

Culture/Recreation 13,281 27,600 -14,319 -51.9

Total Expenditures $2,112,745 $2,402,728 -289,983 -12.1

Property Tax Benchmarks

Brookville has the highest total property tax rate in the Brookville Area School District at almost 48 mills followed by Summerville borough at 43.4 mills (See Table 2-11). The remaining municipalities in the district are townships that are presumably less densely populated and therefore require less services.

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March 2021

Brookville, which is the county seat, is the only municipality in the school district that pays for its own full-time police department. Police are generally the costliest service that a municipality provides to its residents and is often needed in more densely populated boroughs, particularly those that serve as regional hubs for healthcare, businesses, courts and related activities. In terms of maintaining and attracting residents and businesses, the borough should emphasis that it provides services (like local police) that are not available in the surrounding townships.

Table 2-11

2021 municipal and school district property taxes in the Brookville Area School District

Municipality Municipal Tax

Amount

Brookville Area School District Tax

Amount Total Tax

Rate Population

Barnett Twp 3.85 31.0638 34.9138 321

Beaver Twp 0.001 31.0638 31.0648 498

Brookville Boro 16.915 31.0638 47.9788 3,808

Clover Twp 1.26 31.0638 32.3238 434

Eldred Twp 3.6 31.0638 34.6638 1,226

Heath Twp 0.004 31.0638 31.0678 119

Knox Twp 3.2503 31.0638 34.3141 1,011

Pine Creek Twp 3.7 31.0638 34.7638 1,352

Rose Twp 4 31.0638 35.0638 1,249

Summerville Boro 12.35 31.0638 43.4138 508

Warsaw Twp 2.4 31.0638 33.4638 1,424

Table 2-12 compares the property tax rates of municipalities in Jefferson County that provide some type of local police services, although not necessarily full-time police coverage like Brookville. Brookville continues to have the highest municipal property tax rate and the highest overall property tax rate.

Table 2-12

Property taxes for boroughs with local police departments in Jefferson County

Municipality Municipal

Mills School District School

District Mills Total Tax

Rate Population

Brockway 12.375 Brockway Area 21.48 33.855 2,046

Brookville 16.915 Brookville Area 31.0638 47.9788 3,808

Punxsutawney 15.5 Punxsutawney Area 25.343 40.843 5,758

Reynoldsville 8.485 DuBois Area 30.24 38.725 2,660

Sykesville 12.4 DuBois Area 30.24 42.64 1,122

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March 2021

Other Funds

As noted previously, Brookville maintains seven government funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and the Walter Dick Park Endowment Fund, which are considered major funds.

• General Fund - The General Fund is the primary operating fund of the borough and is always classified as a major fund. It is used to account for and report all activities of the borough except those legally or administratively required to be accounted for in other funds.

• Special Revenue Funds - Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.

Brookville includes the following Special Revenue Funds, all of which are reported as nonmajor funds:

• Liquid Fuel Fund - Accounts for revenues received from the Commonwealth of Pennsylvania from the State Liquid Fuels Tax Fund and the related expenditures for building, improving or maintaining local roads and bridges.

• Street Light Fund - Accounts for local tax revenues and expenditures to provide street lighting within the borough.

• Fire Protection Fund - Accounts for local tax revenues and expenditures to provide fire protection services to the borough.

• Library Fund - Accounts for local tax revenues and expenditures to assist the local library to provide services to the residents of the borough.

• Capital Projects Fund - Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned for the acquisition or construction of specific capital projects or items. Brookville has one Capital Projects Fund which accounts for contributions and specific revenues and transfers from the borough’s General Fund and expenditures for various capital acquisitions as the borough council may designate. The fund is reported as a nonmajor fund.

• Permanent Fund - Permanent Funds are used to account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government programs. Brookville has one Permanent Fund, the Walter Dick Park Endowment Fund, which accounts for contributions and other revenues to be used to provide funds for the maintenance and upkeep of the Walter Dick Memorial Park. This fund is reported as a major fund.

Table 2-13 shows that these funds have sufficient balances so that they should not impact the balance in the borough’s General Fund.

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March 2021

Table 2-13

Brookville Special Revenue Funds

12/31/2018 2019 2020 12/31/2020

Audited Estimated Estimated Estimated

Fund Balance Surplus/ (Deficit) Surplus/ (Deficit) Fund Balance

Walter Dick Endowment $1,242,298 $2,718 $1,253 $1,246,269

Capital Projects 54,936 6,282 0 61,218

Liquid Fuels 76,352 31,351 -43,348 64,355

Streetlight 6,579 -6,504 23,076 23,152

Fire Protection 22,973 -6,176 96,727 113,523

Library Fund 7,938 -3,022 185 5,101

The Brookville Municipal Authority

The Brookville Municipal Authority, which operates water and sewer operations separately from borough operations, is organized based on proprietary funds instead of government-wide financial statements. Proprietary funds record activity like business operations in the private sector and focus on net income, financial position, and changes in financial position. The authority’s funds are reported using the economic resources measurement focus and the accrual basis of accounting.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Proprietary fund financial statements provide separate information for water and sewer operations, which are major funds of the Brookville Municipal Authority. The funds distinguish operating revenues and expenses from non-operating items.

Revenues in these funds are sufficient to cover the expenditures and should not affect the borough’s General Fund. A more thorough review of these operations should be completed to determine the value of the systems.

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March 2021

CHAPTER 3

FINANCIAL PROJECTIONS

Introduction

Based on historical patterns of reductions in assessment value, the borough’s annual General Fund revenues will not be able to support General Fund expenditures starting in 2023. While earned income taxes are expected to grow, property tax revenue is anticipated to decline and revenue from other taxes is projected to remain flat. Personnel costs are projected to increase by 5.8 percent from $1.55 million to $1.64 million. In a continuation of historical patterns, the police department remains the largest departmental expense.

Revenue Assumptions

• The 2021 budget serves as the baseline

• Tax rates and fees remain at 2021 levels

• Real estate tax revenue reduced 0.5 percent per year based on assessment history

• Earned income tax revenue annual growth of 1.0 percent

• Licenses & permits, fines & forfeits and interest revenue annual growth of 1.0 percent

• Rents & royalties grow 1.5 percent annually

• State Aid for pensions and Act 13 revenue remain at 2021 levels.

• Other revenues held at 2021 levels

Expenditure Assumptions

• The 2021 budget serves as the baseline

• Employee count remains at 2021budgeted levels

• No new debt incurred; existing debt service based on amortization schedules

• Union employee wages and salaries were increased at the annual contractual rate:

• Other employee wages and salaries were increased 2 percent annually; union wages were increased at 2 percent annually following CBA expiration

• Pension annual obligation was increased by rate of annual wage increases including longevity and step movement

• Health insurance expense was increased by 5.5 percent annually

• Other expenditure growth based on the Core Personal Consumer Index (CBO August 2019)

Capital Assumptions

• 2021 budget

• Transfer from Reserve reduced to $0 for 2022- 2025

• Department Improvements reduced to $5,000 annually, 2022 -2025

• Police Vehicle - 2021, 2023, 2025 $45,000

• DPW Vehicle – 2021,2024 -$55,000

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March 2021

Financial Summary

The borough is projected to begin experiencing annual, growing deficits starting in 2023 under the capital assumptions noted above. If capital spending is removed as seen in Table 3-2, the borough is anticipated to end 2021 with a surplus.

Table 3-1

General Fund Revenues, Expenditures and Surplus/(Deficit)

2021 2022 2023 2024 2025

Projection Projection Projection Projection Projection

Revenues $2,336,738 $2,305,051 $2,305,730 $2,306,516 $2,307,411

Expenditures $2,336,738 $2,276,456 $2,366,242 $2,423,215 $2,461,807

Surplus/(Deficit) 0 $28,595 -$60,512 -$116,699 -$154,396

Table 3-2

Adjusted General Fund Revenues, Expenditures and Surplus/(Deficit)

2021 2022 2023 2024 2025

Projection Projection Projection Projection Projection

Revenues $2,336,738 $2,305,051 $2,305,730 $2,306,516 $2,307,411

Less:

Transfers -32,258 0 0 0 0

Loan Proceeds 0 0 0 0 0

Net Revenue $2,304,480 $2,305,051 $2,305,730 $2,306,516 $2,307,411

Expenditures $2,458,238 $2,310,370 $2,345,494 $2,382,715 $2,421,367

Less:

Capital -106,000 -5,000 -50,000 -60,000 -50,000

Net Expenditures $2,230,738 $2,271,456 $2,316,242 $2,363,215 $2,411,807

Net Surplus/(Deficit) $73,742 $33,595 -$10,512 -$56,699 -$104,396

Total Revenues

• Tax revenue accounts for approximately 70 percent of the borough’s total revenues, while non-tax revenue accounts for another 30 percent of total revenues.

• Total taxes are anticipated to slightly decline over the next five years.

• Non-tax revenue is projected to grow slightly for a 1.8 percent increase.

• The change in total revenues from 2021 to 2025 is skewed by a $32,258 transfer from the General Fund Reserve Account in the 2021 budget. Total revenues are expected to grow slightly once the 2021 transfer is removed.

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March 2021

Table 3-3

Total Revenues

2021 2022 2023 2024 2025 Change 2021-2025

Budget Projected Projected Projected Projected $ %

Tax Revenue $1,597,580 $1,595,080 $1,592,639 $1,590,256 $1,587,933 -9,647 -0.6

Nontax Revenue 706,900 709,971 713,091 716,260 719,478 12,578 1.8

Transfers 32,258 0 0 0 0 -32,258 -100.0

Total Revenue $2,336,738 $2,305,051 $2,305,730 $2,306,516 $2,307,411 -29,327 -1.3

Total Revenue without Transfers $2,304,480 $2,305,051 $2,305,730 $2,306,516 $2,307,411 2,931 0.1

Total Taxes Overview

• Real estate tax revenue is anticipated to decline by 2 percent or $22,153 based on the assessment history.

• Earned income tax is expected to increase by 4.1 percent or $12,506.

• All other taxes are flat.

Table 3-4

Total tax revenues

2021 2022 2023 2024 2025 Change

2021-2025


Real Estate Tax $1,116,000 $1,110,420 $1,104,868 $1,099,344 $1,093,847 -22,153 -2.0

Occupation Tax 3,280 3,280 3,280 3,280 3,280 0 0.0

Per Capita Tax 10,300 10,300 10,300 10,300 10,300 0 0.0

Real Estate Transfer Tax 30,000 30,000 30,000 30,000 30,000 0 0.0

Earned Income Tax 308,000 311,080 314,191 317,333 320,506 12,506 4.1

LST 130,000 130,000 130,000 130,000 130,000 0 0.0

Tax Revenue $1,597,580 $1,595,080 $1,592,639 $1,590,256 $1,587,933 -9,647 -0.6

Total Non-Taxes Overview

• Public safety earnings are anticipated to increase by 8.2 percent or $7,229. This category records the reimbursement for the school resource officer from the School District and includes payment for contracting police protection and revenue from the drug task force.

• Other categories projected to rise by 4 percent include license and permit revenue (mostly made up of the cable television franchise fee) and fines and forfeits, which includes public safety violation and parking fine revenue.

• All other non-tax revenues are expected to remain flat.

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March 2021

Table 3-5

Non-tax revenues

2021 2022 2023 2024 2025 Change

2021-2025


Licenses & Permits $64,785 $65,433 $66,087 $66,748 $67,416 2,631 4.1

Fines & Forfeits 51,950 52,470 52,994 53,524 54,059 2,109 4.1

Interest 15,000 15,150 15,302 15,455 15,609 609 4.1

Rents & Royalties 256,000 256,000 256,000 256,000 256,000 0 0.0

PURTA 1,900 1,900 1,900 1,900 1,900 0 0.0

State Shared Revenue 150,000 150,000 150,000 150,000 150,000 0 0.0

General Government Earnings 23,915 23,915 23,915 23,915 23,915 0 0.0

Public Safety Earnings 87,700 89,454 91,243 93,068 94,929 7,229 8.2

Highway/Street Earnings 54,600 54,600 54,600 54,600 54,600 0 0.0

Culture/Recreation Earnings 1,000 1,000 1,000 1,000 1,000 0 0.0

Miscellaneous Revenue 50 50 50 50 50 0 0.0

Non-Tax Revenue $706,900 $709,971 $713,091 $716,260 $719,478 12,578 1.8

Expenditures

Departmental Expenditures

• General Government expenditures are projected to grow by 7.6 percent or $43,306, with much of the increase in administration. General Government includes elected officials, administration, solicitor, IT, engineering, buildings, zoning, codes, debt service and tax collections.

• Police costs include $51,000 of one-time capital expenditures in 2021, which accounts for the decline in costs between 2021 and 2022. Personnel expenditures in this category are anticipated to grow, rising from $795,043 in 2021 to $861,996 in 2025.

• Public Works costs in 2021 also include one-time capital expenditures of $55,000 that skew the change from 2021 to 2022. Costs for personnel are expected to grow from $512,575 in 2021 to $558,550 in 2025.

• Expenditures from 2022 to 2025 are projected to grow by $125,069 or 5.4 percent.

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March 2021

Table 3-6

Departmental expenditures

2021 2022 2023 2024 2025 Change

2021-2025


General Government $569,970 $579,459 $590,068 $601,425 $613,276 43,306 7.6

Police 937,143 907,930 971,183 945,150 1,009,689 72,546 7.7

Fire 35,000 35,536 36,151 36,824 37,533 2,533 7.2

Public Works 771,275 729,977 745,050 815,770 776,992 5,717 0.7

Culture/Recreation 23,350 23,554 23,789 24,046 24,316 966 4.1


Personnel, Non-Personnel and Capital Expenditures

• Personnel expenditures make up the majority of the borough’s budget, accounting for almost 70 percent of costs. Personnel costs are anticipated to increase by $133,168 or 8.5 percent.

• Services, including non-health related insurances, professional and contracted services, utilities, repairs and similar items, and supplies are both expected to grow by approximately 7 percent.

• Capital includes one-time expenditures for police and public works in 2021 and vehicles in

2023, 2024 and 2025.

Table 3-7

Personnel and non-personnel expenditures

2021 2022 2023 2024 2025 Change 2021-2025


Personnel $1,558,863 $1,589,455 $1,622,601 $1,656,845 $1,692,031 133,168 8.5

Services 400,425 406,399 413,264 420,773 428,680 28,255 7.1

Supplies 231,950 235,499 239,578 244,039 248,736 16,786 7.2

Other 39,500 40,104 40,799 41,559 42,359 2,859 7.2

Capital 106,000 5,000 50,000 60,000 50,000 -56,000 -52.8


Personnel Expenditures

• Salary and wages, the largest personnel expenditure, are expected to grow steadily for an increase of 8 percent or $76,816.

• Healthcare is projected to grow by $32,108 or 12 percent; FICA increases with wages.

• Other personnel expenditures are anticipated to rise by 7.2 percent based on assumptions.

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March 2021

Table 3-8

Personnel expenditure detail

2021 2022 2023 2024 2025 Change

2021-2025

Type Expense Budget Projected Projected Projected Projected $ %

Salary & Wages $964,068 $982,705 $1,001,715 $1,021,106 $1,040,884 76,816 8.0

Longevity 18,000 18,275 18,592 18,938 19,303 1,303 7.2

Overtime 48,250 48,988 49,837 50,765 51,742 3,492 7.2

FICA 55,200 56,304 57,430 58,579 59,750 4,550 8.2

Healthcare 267,470 274,157 282,381 290,853 299,578 32,108 12.0

Life Insurance 9,225 9,366 9,528 9,706 9,893 668 7.2

Pension 105,900 107,520 109,383 111,419 113,564 7,664 7.2

Unemployment Comp 19,250 19,545 19,883 20,253 20,643 1,393 7.2

Uniform Allowance 11,500 11,676 11,878 12,099 12,332 832 7.2

Workers Comp 60,000 60,918 61,973 63,127 64,342 4,342 7.2

Personnel Expenditures $1,558,863 $1,589,454 $1,622,600 $1,656,844 $1,692,031 133,168 8.5

34


March 2021

CHAPTER 4

MANAGEMENT AUDIT

Introduction

Brookville’s operations are generally well-run with no major deficiencies. Most operations recommendations for Brookville center on best practice improvements for policies and procedures, training and other human resources functions as well as a focus on long-term and capital planning. The borough should also concentrate on economic and community development efforts that serve to maintain and strengthen the tax base including potential investments in community parks. In addition, Brookville should consider appropriate upgrades to information technology to improve operations and increase staff capacity.

Methodology

Interviews were conducted with the borough manager, police chief, public works director, water & wastewater commissioner, three elected council members, and additional borough staff. This study included an analysis of administration and finance, the police department, the public works department and parks.

Reviews were also conducted of existing studies and plans that could be used to advance organizational and community goals such as planning, recreation, and economic development. The borough provides administration and finance functions, tax collection, utility billing, human resources, law enforcement, codes and zoning, and public works. Brookville has an FTE count of 22 including, 17 full-time employees and 10 part-time employees.

Administration and Finance (General Government)

Borough administration and finance is staffed by five full-time employees, including the borough manager, who also serves as the administrative manager for the municipal authority. Management reports that current staffing levels are appropriate for the expected level of service delivery by both the borough and the municipal authority. The administrative and finance staff report to the borough manager. The borough manager, per Borough Code, is the Chief Administrative Officer of the borough and is responsible to council for the proper and efficient administration of the affairs of the borough. Additional detail on the borough manager position such as qualifications, appointment and removal, and duties can be found in Chapter 31, Article V of the Brookville Borough Code.

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Figure 4-1

Brookville Borough Organizational Chart

The General Government 2020 budget was $640,700 or approximately 27 percent of the General Fund budget. Two of the three administration and finance staff are employed by the borough, three are employed by the authority, and all are shared across both entities in a proportionate manner based on functions performed.

Administration and finance provide the following services to both borough and municipal authority operations: general administration, finance and accounting (A/P, A/R, utility billing, and payroll), and human resource functions for all departments, including water and wastewater. The borough manager is responsible for human resource functions across both borough and authority operations.

Administrative staff are available to the public for the purposes of remitting utility payments, submitting permit applications, and conducting other borough related business. Water and sewer customers are billed on a monthly basis with several options available for payment. Utility payments, both water and sewer, can be made in person or online through the borough’s website using either a credit card or through the Automated Clearing House System (ACH). Because borough and

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authority personnel are shared, the two entities should consider drafting a management and operations agreement, formally memorializing the relationship between the two entities.

The borough property tax rate is 16.915 mills and is collected by an elected tax collector. The tax collector has office hours in the borough complex, accepting tax payments on Wednesday (12:00 p.m. – 3:00 p.m.), Thursday and Friday (9:30 a.m. – 12:00 p.m. and 1:00 p.m. – 4:00 p.m.) for a total of fourteen hours/weekly. There is a secure drop box available for payments at the entrance of Borough Hall. Tax payments can be made using either cash or check. The borough’s earned income tax and local services tax are collected by Berkheimer Associates.

The borough manager is also responsible for the activities of all borough departments except for the Police Department. Departments under the purview of the borough manager include administration and finance and public works. Per Borough Code, the borough manager is also responsible for coordinating the activities of borough council, the municipal authority (water and wastewater), the zoning hearing board, and the planning commission.

Responsibilities for permitting (building and zoning) lie with the borough manager and administrative staff. The borough refers permits to a third-party consultant for review, when necessary. Residents wishing to apply for building and/or zoning permits do so in person at the Borough Hall complex. The borough manager and police chief assumed code enforcement and zoning duties in May 2020 due to personnel and performance issues. According to the borough manager, there are no plans to alter the current status of codes and zoning activities through the addition of personnel or third-party consultants. Activities specific to codes enforcement include notification and enforcement in areas such as abandoned vehicles, grass complaints, property blight, littering, etc.

Table 4-1

Borough of Brookville Permitting, Codes & Zoning Statistics

Year Building Permits Issued Zoning Permits Issued Code Complaints Received/Addressed

2019 36 1 72

2020 24 1 265

The borough manager reports that facilities are appropriate, allowing for adequate space for staff, equipment, and storage. There are no security measures noted, i.e., cameras, key fob systems, etc., that can be used to restrict access and monitor and document activity within and outside of the borough administrative campus.

Borough operations uses standard software, i.e., the Microsoft suite of Office products. IT support is provided by a third party contracted provider on an on-call, as needed basis. The borough’s server was last updated in 2013 and is currently running on Windows Server 2011. The server was easily accessed, located in an unsecured meeting room. The useful life of standard server hardware is approximately 3-5 years with maintenance costs and the probability of failure increasing with the passage of time.

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Standard cyber-security practices would recommend upgrading hardware and locating the server in a secure, environmentally controlled location. Consideration should also be given to redundancy in the area of data back-up; possibly implementing both onsite and cloud-based back-up procedures. Software platforms needed for service delivery, i.e., accounting, billing, GIS, will continue to transition to cloud based solutions.

Based on the availability of high-speed internet infrastructure, the borough should monitor the availability of high-speed internet access. Continuity of operations will be discussed later in this report. A VOIP phone system facilitates continuity of operations in all departments. The borough should consider investigating VOIP phone systems, or an appropriate alternative.

The borough operates on a modified cash basis of accounting, using a total of seven funds (activity groups) which include the General Fund, the Walter Dick Park Endowment Fund, Liquid Fuels Fund, Street Light Fund, Fire Protection Fund, Library Fund, and the Capital Projects Fund. Detailed financial statements are completed and audited annually for both the borough and the Municipal Authority.

The borough should consider issuing a Comprehensive Annual Financial Report. The statistics section contained in the report would be useful in ongoing economic development efforts. Both the borough manager and staff accountant report that the finance and billing software was upgraded to Abila/Diversified Technologies in 2018. Management and staff report that the accounting software is appropriate for the functions for which it is being used (accounts payable, accounts receivable, water (2,672 customers) and wastewater (2,241 customers) utility billing, and payroll).

The general liability, property, and workers compensation insurance products are evaluated on an annual basis for adequacy and cost.

Municipal governments are being tasked with increased transparency and communication with their constituencies. This communication includes agenda’s and minutes for elected and appointed boards and commissions, financial information, operational and legislative information, parks and recreational opportunities, etc. The use of a municipal website and social media such as Facebook is best management practice. Brookville maintains a website at https://www.borough.brookville.pa.us/. The borough also maintains a Facebook page at https://www.facebook.com/BrookvilleBorough/. Both the borough’s website and Facebook pages contain up to date information on most aspects of municipal operations. Both the website and Facebook pages are updated regularly. The borough should consider posting detailed financial information such as budgets, audit reports, monthly bill listings, and monthly financial reports.

The Borough of Brookville Employee Handbook was adopted in October 2015 and is applicable to both borough and municipal authority employees. The handbook contains policies and procedures as well as details on benefits provided by the borough to its employees. The borough should consider reviewing the handbook annually to confirm continued compliance with applicable employment law and consistency with actual operational practices. Training in policy areas that are more apt to create risk for the borough should be considered. i.e., equal employment opportunity, sexual harassment, and diversity and inclusion. The borough should consider adjusting the length of the evaluation period from 100 days to a length of time greater to allow for additional time to gauge an employee’s performance and fit into the organization.

https://www.borough.brookville.pa.us/

https://www.facebook.com/BrookvilleBorough/

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Recommendations Administration and Finance

1. Upgrade IT. Standard cyber-security practices recommend upgrading hardware at this point in its life and locating the server in a secure, environmentally controlled location. Consideration should also be given to redundancy in the area of data back-up; possibly implementing both onsite and cloud-based back-up procedures. The borough should also consider additional software upgrades as appropriate to increase capacity and improve operations.

2. Boroughs that operate under the mayor-council form of government with a borough manager operate most effectively with a well-informed mayor and council. The borough should consider drafting a Newly Elected Officials Onboarding Manual. This manual will both facilitate and expedite the onboarding process for newly elected officials.

3. Consider drafting a Continuity of Operations Plan. The borough provides mission critical services to the community such as utility management and emergency management functions in times of emergency. A community must be prepared for all exigencies, i.e., storm damage, fire damage, water damage, or any other circumstance that would render Borough Hall unusable. The borough should consider drafting a Continuity of Operations Plan that would identify alternate locations appropriate for both short and long-term operational use, ensure IT/records management back-up, communications, and continued operations of emergency management functions, routine day to day functions, and continued operation of the borough council.

4. Conduct an annual review of the employee handbook to confirm continued compliance with applicable employment law and consistency with actual operational practices.

5. The borough should consider reviewing and re-issuing job descriptions with annual performance appraisals to confirm they are consistent with actual job functions being performed.

6. Conduct annual performance reviews for all full-time and part-time employees. 7. Consider having a management and operations agreement drafted by council with the

borough and municipal authority both being parties. An operations and management agreement would formally memorialize the relationship between the two entities, addressing roles and responsibilities, management services provided and associated financial obligations.

8. Consider drafting and adopting an Accounting Policies and Procedures Manual. Policies that should be considered include: Finance Calendar, General Cash Receipts Policy, Credit Card/Fuel Card Policy, Capitalization Policy, Balanced Budget Policy, Fund Balance Policy, Investment Policy, Debt Management Policy, and a Contribution Policy. A written Accounting Policies and Procedures Policy Manual ensures appropriate checks and balances are incorporated into daily financial activities. The manual should detail the annual financial/business cycle in areas such as reports due to the Commonwealth, timing of audits, tax filings, etc. A written manual also ensures continuity of operations in the event the borough loses key personnel.

9. Consider incorporating five-year cash projections into the annual budget process. Five-year projections, in all funds, will allow administration and the council to incorporate long-term financial impacts into decision making processes.

10. The borough should consider providing training for all employees in areas such as: general workplace safety, sexual harassment, diversity and inclusion, ethics, cyber-security, and in other subject matter areas as identified by the borough manager and borough staff. Attention to these areas can ensure an appropriate workplace environment. The areas noted

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are areas of general liability which can be easily mitigated through appropriate training, policy, and enforcement.

Police Department

Jefferson County, PA is comprised of thirty-four municipalities, twenty-three townships and eleven boroughs. The Brookville Borough Police Department is one of five municipal police departments in Jefferson County. Other law enforcement agencies in Jefferson County include: the Brockway Police Department, Punxsutawney Police Department, Reynoldsville Police Department, Sykesville Police Department, the Jefferson County Sheriff’s Department, and the Pennsylvania State Police, operating out of barracks in DuBois and Punxsutawney.

Figure 4.2 Police Coverage Jefferson and Surrounding Counties

The townships that immediately surround the borough all receive law enforcement services from the Pennsylvania State Police. The police chief reports that the department responds to, on average, between 50-75 mutual aid dispatches annually into jurisdictions that receive law enforcement services from the Pennsylvania State Police. The chief reports that these mutual aid responses can create an inadequate or less than desirable level of coverage within the borough.

The police department also provides services, in the form of two school resource officers, to the Brookville Area School District, via a contractual agreement. The school resource officers are assigned to the Brookville Area Junior/Senior High School and the Hickory Grove Elementary School. An additional officer provides services to the Northside and Pinecreek Elementary buildings. Police department personnel operate under the police department policy manual, enforcing the Borough of Brookville Code, Title 18 Crimes and Offenses and Title 75 Vehicles. The police department operates with 11 FTE’s, consisting of 6 full-time sworn officers, including the

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chief, and 10 part-time sworn officers. This FTE count translates to 2.79 officers per 1,000/population. Twenty-four hour/day, seven day/week coverage is provided to the borough with officers working ten-hour shifts, 7 a.m. – 5 p.m., 5 p.m. – 3 a.m., and 9 p.m. – 7 a.m.

The 2020 police department budget is $895,303, which is approximately 37 percent of the borough’s General Fund Budget. This is well within the range commonly seen in the Commonwealth of Pennsylvania of 35 to 50 percent. The police department answered 2,325 calls for service in calendar year 2019. Additional statistics for the department are below.

Table 4-2

Borough of Brookville Police Department Statistics

Calls for

Service

Traffic Citations Issued

Warnings Issued

Parking Tickets Issued

Calendar Year 2019 2,325 1,233 1,009 2,434

2020 YTD Through 11-2020 1,849 1,261 1,183 1,469

Table 4-3

Borough of Brookville Police Department 2020 UCR Statistics

Part I Offenses Persons Charged

Rape 1

Aggravated Assault 1

Larceny-Theft (Except Motor Vehicle Theft) 4

Total Part I Offenses 6

Part II Offenses

Other Assaults 16

Forgery and Counterfeiting 2

Fraud 4

Embezzlement 4

Stolen Property – Buying, Receiving, Possessing 1

Vandalism 1

Weapons; Carrying. Possessing, etc. 1

Drug Abuse Violations 25

Offenses Against the Family and Children 1

Driving Under the Influence 17

Liquor Laws 3

Drunkenness 6

Disorderly Conduct 14

All Other Offenses 11

Total Part II Offenses 106

Grand Total 112

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Police department personnel use “Informant” as their records management platform. “Watchguard” is the platform used for the in-car camera system. The police chief reports that these platforms are more than adequate for the departments needs and provide all necessary functionality. The department is well equipped with updated/new handguns, tasers, portable radios, in car laptop computers, station computers, and server equipment solely dedicated to police department operations.

Both staffing and operational space are adequate for expected levels of service delivery, according to the police chief. The chief did note the need for an environmentally controlled garage space or sally port that could be used for vehicle and equipment storage as well as prisoner exchanges. Security, both at the administrative and police facility and in the downtown corridor, could be improved through the installation of cameras, according to the chief.

Police department personnel use the Brookville Police Department Policy Manual. The policy manual should be reviewed on an ongoing basis for compliance with all applicable laws, changes in law enforcement best practices, and consistency with police department operations. Special attention should be given to policies such as, but not necessarily limited to, Use of Force, Motor Vehicle Pursuits, Officer Involved Shootings, and Domestic Violence

Continual (monthly), regularized training is provided to all sworn personnel, the chief said. This ongoing training regimen should include all critical departmental policies such as, but not limited to, Use of Force, Motor Vehicle Pursuits, Domestic Violence, and Officer Involved Shootings. All training, both the curriculum and results, should be well documented and maintained in the departmental training records. Critical policies such as, but not limited to, Use of Force, Motor Vehicle Pursuits, Officer Involved Shootings, and Domestic Violence, should be re-issued, acknowledged, reviewed, and trained on annually. The policy manual, in its entirety, should be reviewed annually for compliance with all applicable laws and law enforcement best management practices.

Currently the police department has five vehicles in service.

Table 4-4

Borough of Brookville Police Vehicles

Year Make Model

2014 Ford Taurus - Sedan

2015 Ford Police Vehicle

2018 Ford Interceptor

2016 Ford Interceptor

2019 Ford Explorer

Recommendations – Police Department

1. The police department server and associated IT equipment was in the patrol room. Re-locate the police department server and associated IT infrastructure to a secure, environmentally controlled space.

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2. Police departments providing mission critical services to a community must be prepared for all exigencies, i.e., storm damage, fire damage, water damage, or any other circumstance that would render police department headquarters unusable. The police department should consider drafting a Continuity of Operations Plan that would identify alternate locations appropriate for both short and long-term operational use, ensure IT/records management back-up, communications, re-location of evidence, etc.

3. Consider publishing an annual operations report and sharing with internal and external stakeholders. The report should thoroughly document all aspects of police department operations with the goal being transparency.

Public Works

The Brookville Borough Public Works Department provides a number of services to the community to include the maintenance and repair of approximately twenty-five miles of roadway, maintenance and repair of seven traffic lights, roadway signage, maintenance, repair, and mowing of four borough park facilities, maintenance and repair of stormwater and flood control infrastructure, and fall leaf collection.

Roadway maintenance includes base repair, repair and replacement of signage, roadside mowing, guardrail maintenance and repair, and snow/ice control. The department uses third-party contractors for annual asphalt overlay and tar and chip treatment projects. Public works personnel perform preliminary base repair and address roadway related stormwater issues, i.e., repair and/or replace stormwater inlets in advance of the annual overlay program. The borough has several streets made of brick. These roadways are maintained and repaired by public works personnel.

The department had a 2020 annual budget of $802,625, which is approximately 33 percent of the general fund operating budget. Applicable public works activities are also funded using the Liquid Fuels Fund. The amount of a municipality's allocation is based on its population and miles of roads on its approved Liquid Fuels Inventory. The 2020 Pennsylvania Department of Transportation Liquid Fuels Inventory shows the borough with 24.82 miles of roadway and a population of 3,924. Examples of allowable expenditures include the construction, reconstruction, maintenance and repair of public roadways and the purchase of equipment.

The department reports seven FTE’s, which includes the public works director. The director reports that staffing is adequate for the level of service delivery expected. The department does not have a digital inventory of assets (roadways, street signage, traffic lights, stormwater infrastructure, etc.). The department is not equipped and does not document or detail service calls, infrastructure repairs, infrastructure replacement, etc.

A review of borough meeting minutes found several references to the closure of Interstate 80, which runs through and has two access points in the borough. Closures of a major interstate due to incidents such as motor vehicle accidents can create significant traffic impacts on local roadways that are not designed to accommodate the high volume of traffic. Adaptive traffic control systems are an effective solution to managing changing traffic volume. The borough should investigate grant funding available from the Pennsylvania Department of Transportation that could be used to upgrade the individually controlled traffic signals and incorporate all signals into a responsive network.

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Table 4-5

Public Works Related Activities – Budget (2020)

Activity Budget

Public Works $598,325

Cleaning of Streets and Gutters $2,000

Winter Maintenance $60,000

Traffic Control Devices $12,000

Sidewalks and Crosswalks $9,000

Equipment and Machinery $46,300

Street Maintenance 25,000

Stormwater/Flood Control 50,000

Total $802,625

The public works facility is located at 22 Darrah Street, Brookville, PA 15825. The facility consists of approximately 13,360 square feet of covered space used for offices (160 SF) and approximately 13,200 SF of workspace and storage. There is adequate space for the storage of all equipment inside. The salt shed is located immediately adjacent to the public works garage. The three-sided, three bay covered structure, constructed in 1980, is constructed of timber and holds approximately 550 tons of material. The public works director reports that 550 tons of storage capacity is adequate but in times of significantly inclement weather, additional capacity would improve operational efficiency.

Brookville Borough Salt/Material Storage

Brookville Borough Public Works Facility

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Public works has a variety of vehicles and equipment in various condition as outlined below.

Table 4-6

Public Works Vehicles and Equipment

Year Make Model

1998 Circle A Trailer

2004 GMC Sierra

2008 Ford F250

2011 International 7000

2012 International Dump Truck

2015 GMC Sierra

2016 Ford F550

2016 Ford F550

2020 Ford F250 w/ Plow and Lights

2021 Carmate Trailer

1966 CAT Grader

1970 Davey Air Compress

2003 Case Backhoe

2010 Old Dominion Brush Leaf Collector

2014 John Deere SME

2014 John Deere Backhoe

2018 Case Skid Steer

Kubota Tractor

Vermeer Leaf Chipper

Leaf Collection Box

Recommendations – Public Works

1. Consider allocating funds for the construction of a new salt/storage shed. Consideration should be given to the possibility that funds will need to be allocated for the design and construction of associated stormwater facilities to mitigate additional run-off generated by a larger storage facility. The borough should consider investigating the availability of grant funding for design, engineering, permitting, and construction of a new storage facility.

2. Consider drafting a public works department policies and procedures manual. The goal of the manual is to clearly communicate and document expectations, policies and procedures in areas such as project management, operation of motor vehicles, snow/ice control, roadway maintenance, signage, traffic signal maintenance, confined space operations, training, health and safety, grounds and park maintenance, purchasing, etc.

3. Consider drafting a health and safety manual. This manual should address policies and procedures specific to safety in the workplace and should include best management practices

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specific to operation of equipment, safety clothing, personal protective equipment (PPE), and training.

4. Consider developing a digital inventory of borough assets such as parks, roadways, signage, traffic signals, and stormwater infrastructure. A GIS based software platform would allow for a detailed inventory and documentation of all assets, their location, condition, maintenance and repairs, etc. This type of system can be used as both a management planning and risk management tool and can potentially be used across multiple departments within the organization, i.e., public works, codes, and water and wastewater.

5. Consider drafting a ten-year capital replacement plan for all department equipment 6. Consider implementing a department training program, curriculum to include: policies and

procedures, workplace safety, safe operations of motor vehicles, safe operations of motor vehicles in winter weather events, reasonable suspicion for supervisors (CDL operators), ethics, other subject matter as identified by the public works director and the borough manager.

7. Consider implementing an annual inspection program of traffic signals and any associated infrastructure to ensure proper operation and compliance with traffic signal permits. This activity should be outsourced to a third-party subject matter expert with experience in traffic signal maintenance and repair. The borough should be responsive in addressing items noted as being inconsistent with issued traffic signal permits.

8. The borough should investigate grant funding available from the Pennsylvania Department of Transportation that could be used to upgrade the individually controlled traffic signals and incorporate all signals into a responsive network. Examples of applicable funding include the Automated Red Light Enforcement Program (ARLE). Projects improving safety, enhancing mobility and reducing congestion can be considered for funding. https://www.penndot.gov/TravelInPA/TrafficSignalsManagement/pages/default.aspx

Parks and Recreation

Parks and recreational facilities are a key municipal service contributing to the quality of life in a community. The borough owns and maintains four parks, Walter Dick Memorial Park, Memorial Park, Longview Park, and Northside Park. The annual operating budget for parks and recreation in 2020 was approximately $27,600. The borough’s public works department provides maintenance and repair at borough park facilities. The condition of borough park facilities was found to be generally acceptable. Playground equipment and other park infrastructure varied in age and condition, with some in need of replacement.

Park facilities, because they see numerous visitors throughout the year, should be well maintained, and inspected on a regular basis with inspection results being well documented. A documented maintenance and inspection program ensures routine maintenance is conducted and mitigates potential risk.

Walter Dick Memorial Park is located immediately adjacent to the Brookville Reservoir – North Fork Red Bank Creek. The park offers picnic areas, a playground, a swimming area, and fly fishing. The pavilions and playground were in good condition. Bathroom facilities were noted as out of order via posted signage. Borough personnel noted that swimming is often restricted at the park due to the inability to comply with water quality regulations. The concept of constructing, owning, and

https://www.penndot.gov/TravelInPA/TrafficSignalsManagement/pages/default.aspx

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operating a municipal swimming pool facility was mentioned during the interview phase of this report.

The borough owns Memorial Park and maintains a small portion thereof that contains a pavilion and playground. The infrastructure on the borough-maintained portion of Memorial Park is dated and ready for replacement. Much of the facility is occupied and operated by the Brookville Little League, which is providing a community recreational service on borough property. From a risk management perspective, the condition of much of the infrastructure in Memorial Park should be addressed, to include playing surfaces, buildings, dug-outs, bleachers, electrical equipment, etc. It is recommended that the borough consider drafting and entering into an agreement with the Little League and any/all organizations that occupy, operate, and provide services upon land owned by the borough. Agreements should address minimum maintenance standards, financial obligations, insurance, etc.

Recommendations – Parks

1. Consider conducting a detailed inventory and drafting a ten-year capital replacement plan for all park infrastructure and any equipment used by the public works department to maintain park infrastructure.

2. Consider pursuing available grant funding for park improvements through the Department of Conservation and Natural Resources (DCNR). This can be accomplished with in-house staff or using third-party grant writing consultants.

https://www.dcnr.pa.gov/Pages/default.aspx

https://www.dcnr.pa.gov/Communities/Grants/Pages/default.aspx

3. Consider the feasibility of certified playground safety inspector training/certification for employee/s. Potentially use the borough’s insurance carrier for the safety inspection function.

4. The concept of a municipal swimming pool facility was noted by several interview participants. The borough should consider conducting a parks, trails, and recreation study as part of a municipal comprehensive plan update. This study will help identify and focus community and organizational goals in the areas of parks, trails, and recreation and potentially provide a base starting point in the grant acquisition process. The borough should apply for a grant through the DCNR - Bureau of Recreation and Conservation Community Conservation Partnerships Program (C2P2).

5. Consider drafting a formal agreement between the Brookville Area Little League and the borough for park use and maintenance at Memorial Park. Any formal agreement should address use, acceptable conditions, risk management/liability, etc.

6. Confirm that all borough parks contain appropriate signage detailing park rules, playground use/age regulations, and contact information for the borough.

Economic and Community Development

To counter the negative impact of these trends on the tax base, Brookville should focus efforts on community and economic development to maintain existing residents and businesses and attract new ones. This includes undergoing the comprehensive planning process, focusing on parks and



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other residential amenities like a community swimming pool, and continuing partnerships with outside organizations such as Historic Brookville and the local chamber of commerce.

In terms of parks, the borough is already pursuing state grants for a new pool complex. The borough should continue to pursue improvements at parks such as replacement of the closed swinging bridge in Walter Dick park. See above links to DCNR grant opportunities in addition to available funds through the STMP program.

The borough connects to the Redbank Valley Trail at the Depot Street spur, which leads to downtown Brookville across from the Giant Eagle on Route 35. The borough has worked in support of the trail. The recreational feature sees a large amount of use throughout the year, and the borough should encourage businesses to cater to this population. That can mean shops with hiking type gear or restaurant located nearby where trail users can stop for refreshments.

Another economic development opportunity is the Marlin’s Opera House, an 1886 performance venue located in the heart of the downtown that is in the National Register-listed Brookville Historic District. It has been described by a theater historian as “the most pristine and unaltered opera house and all of Appalachia.” The restoration and rehabilitation of this asset could draw both local audiences and performance aficionados from Pittsburgh to Cleveland, State College, and Buffalo, and perhaps beyond.

The borough also includes the Columbia Theater, a former movie house that dates from 1920. The theater is the home of the Brookville Community Theater, an amateur but extremely enthusiastic local theater ensemble.

Recommendations – Economic and Community Development

1. Seek STMP Phase II funds to update the comprehensive plan, addressing needs of the community such as economic development, land use, housing, community infrastructure and services, transportation, parks and recreation, trails, and environmental resource protection. Updating the various component of the comprehensive plan (housing, utilities, recreation, sustainability, etc.) will provide opportunities for collaboration among various parties such as Jefferson County, the Brookville Area School District, and all the surrounding municipalities. The plan should be drafted and reviewed for consistency with the goals and objectives of the Jefferson County Comprehensive Plan, last updated in 2018.

2. Consider investigating the availability of grant funding that could be used to fund an economic development director. This position would theoretically facilitate economic development among various participants that could include the borough of Brookville, Jefferson County, Historic Brookville Inc., the Brookville Area Chamber of Commerce, the Red Bank Valley Trail, and other organizations as identified.

Water and Wastewater

The water treatment system, upgraded in 2011 has a permitted capacity of 1.5 million gallons per day (gpd) and currently treats, on average, approximately 640,244 gpd. The wastewater treatment plant, upgraded in 2020, has a permitted treatment capacity of 1.5 million gpd, with a peak hydraulic capacity of 12 million gpd, and currently treats approximately 799,800 gpd. A detailed evaluation of

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the water and wastewater systems, and the administrative functions supporting those systems, was not in the scope of this report.

These systems are a critically important asset driving quality of life and economic development in the borough and the surrounding region. The borough manager also serves as the administrative manager of the authority. Borough personnel provide administrative support to the municipal authority, to include activities such as utility billing, financial management, accounts payable, accounts receivable, human resources, and payroll. As noted above, the borough and the municipal authority share the costs of personnel.

Borough personnel report that the accounting and billing software that is used for utility billing was upgraded in 2018 and is adequate for all utility billing processes currently in place.

Recommendations Water and Wastewater

1. Qualified water and wastewater operators are in short supply in many areas of the commonwealth. Consider drafting written standard operating procedures for water and wastewater operations. These SOP’s will ensure operational consistency under current personnel, and more importantly, will ensure operational consistency in the event current personnel are no longer available to carry out their duties.

2. Draft and adopt an emergency response plan - preparedness, prevention, and contingency planning.

3. Consider drafting an operations and maintenance plan. Water and wastewater operations are mission critical services. The borough’s water and wastewater operations are relatively new and appear to be well run and well maintained. An operations and maintenance plan will ensure personnel are operating and maintaining the plants consistently. An O & M plan, theoretically, improves the performance and extends the longevity of the plants.

4. Draft a formal succession planning process, operational redundancy (illness, pandemic, etc.) – establish a relationship with an outside firm or other municipal entities – think mutual aid.

5. Consider the development and adoption of a ten-year capital improvement plan. 6. These plans should be reviewed, and updated if necessary, on an annual basis. Annual

reviews should include training on the content of plans and implementation.

Planning and Economic Development

Brookville Borough is one of Jefferson County’s main population and employment centers with the borough’s population representing approximately 8.5 percent of the county’s total population. Major employers in the area include: Beverage-Air Corporation, Brookville Equipment Corporation, Brookville Glove Manufacturing, Brookville Wood Products, BWP Bats, Cresco Yeltrah, Humphrey Charcoal, Laurel Eye Clinic, Matson Lumber, Miller Welding & Machine, Penn Highland Brookville Hospital, and Rexam Healthcare.

Downtown Brookville is a focal point of economic development. Historic Brookville is on the National Register of Historic Places, registered as an historic district with areas of significance noted as industry, commerce, architecture, and philosophy. Past efforts to beautify and maintain the regional focus on downtown Brookville include streetscape projects. The last project included the installation of sidewalks and landscape planters in the late 1980s and the planning and construction

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of the town square, an aesthetically pleasing focal point, located immediately adjacent to the historic Jefferson County Courthouse.

There are several other economic drivers in place that are currently operating to advance economic development in the region. These assets and organizations include Historic Brookville Inc., the Brookville Area Chamber of Commerce, and the Red Bank Valley Trail.

The borough of Brookville’s wastewater and water infrastructure are key assets that currently drive, and will continue to facilitate, both residential and non-residential development and re-development both in and outside of Brookville’s municipal borders. Both systems are relatively new and possess adequate capacity to accommodate growth well into the future.

Jefferson County updated its Comprehensive Plan, which was published in four separate documents entitled Existing Conditions and Recommendations, Public Participation Overview, Recreation and Tourism Strategy, and Community Infrastructure Strategy, all formally adopted and dated July 11, 2018. These plans identify Brookville and its utility assets as key pieces needed to drive regional economic growth.

Supplemental funding exists to help facilitate planning efforts.

Recommendations Planning and Economic Development

1. The borough should consider updating its comprehensive plan, addressing needs of the community such as economic development, land use, housing, community infrastructure and services, transportation, parks and recreation, trails, and environmental resource protection. Updating the various component of the comprehensive plan (housing, utilities, recreation, sustainability, etc.) will provide opportunities for collaboration among various parties such as Jefferson County, the Brookville Area School District, and all the surrounding municipalities. The plan should be drafted and reviewed for consistency with the goals and objectives of the Jefferson County Comprehensive Plan, last updated in 2018 as noted above.

2. The borough should consider seeking supplemental funding to offset expenditures specific to the comprehensive planning effort noted immediately above, particularly STMP Phase II funds. Grant requests can be developed by borough staff or by third-party consultants.

3. The borough should consider investigating the availability of grant funding that could be used to fund an economic development director. This position would theoretically facilitate economic development among various participants that could include the borough of Brookville, Jefferson County, Historic Brookville Inc., the Brookville Area Chamber of Commerce, the Red Bank Valley Trail, and other organizations as identified.

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CHAPTER 5

REVIEW OF LABOR AGREEMENTS

Introduction

The borough’s two CBAs provide a fair level of wages and benefits to the employees of the borough. These agreements should provide both short and long-term sustainability for the borough to continue providing effective essential services to residents. As such, the main recommendation of this review is to continue with the current collective bargaining strategy.

Methodology

PEL conducted a review of the Collective Bargaining Agreements (CBAs) between the borough and Teamsters, Local Union No. 110 (police) and AFSCME, Local 1460 (public works). Additionally, interviews were conducted with the borough manager, chief of police and director of public works, as well as the borough’s labor counsel, Richard Miller, of the law firm of Campbell Durant.

Police

CBA between the borough of Brookville and Teamsters, Local Union No. 110

Duration: January 1, 2018 through December 31, 2021

The borough of Brookville Police Department consists of five full-time police officers plus the chief. There are also 10 part-time police officers. There is a high turnover of part-time officers. The CBA defines a part-time officer as an officer who works, “less than forty (40) hours per week.” Therefore, there is no restriction on the borough’s use of part-time officers. For example, a part-time officer serves as the School Resource Officer.

Full-time officers presently work a 10-hour shift, four days per week. The CBA gives the borough the exclusive right to establish and alter work schedules. In order to maximize manning, two full-time officers presently work different shifts during the workweek. Part-time officers fill in when a full-time officer is off work. The chief is also able to fill in open shifts. In 2019, the borough spent approximately $5,000 in overtime, which was mostly court time. The borough’s police department appears to be highly functional and efficient.

For full-time officers hired after January 1, 2018, the CBA provides for reduced accumulation of sick leave, reduced vacation, reduced longevity and reduced compensation for both full and part-time officers. These reduced benefits and pay provide the framework enabling the borough to afford the provision of effective police services into the future.

The CBA allows the borough to change the existing health insurance plan to a comparable plan. Full-time officers pay 25 percent of the health insurance premium in excess of specific amounts for each category of insurance coverage, without cap or limitation. These provisions provide the framework for the borough to make changes to the health insurance plan during the term of the CBA, thereby potentially reducing the borough’s costs and reducing the officer’s 25 percent contribution.

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The CBA provides for a 26-week sickness and accident benefit of 70 percent of a full-time officer’s base pay, thereby reducing the need for accumulated sick leave. The CBA also provides that full-time police officers hired after January 1, 2018 shall receive only the minimum level of pension benefits required by law.

Most of the CBA provisions set forth in the previous two paragraphs were negotiated by the borough and its labor counsel as part of the agreement beginning January 1, 2018 through December 31, 2021.

AFSCME

CBA BETWEEN THE BOROUGH OF BROOKVILLE AND BROOKVILLE EMPLOYEES

AFFILIATED WITH THE AMERICAN FEDERATION OF STATE, COUNTY, AND

MUNICIPAL EMPLOYEES, (AFSCME) LOCAL 1460

Duration: January 1, 2017 to December 31, 2020; Tentative agreement: January 1,

2021 to December 31, 2023

This agreement covers the borough’s Public Works Department. There are six full-time employees plus the director of public works. Four of the full-time employees have CDL licenses. The borough’s two dump trucks require an operator with a CDL license. The six employees normally work 7:00 a.m. to 3:00 p.m., Monday through Friday. In winter, employees work split shifts, 4:00 am to noon and noon to 8:00 p.m. These shifts can be changed to 12-hour shifts for a snowstorm.

The 2017-2020 CBA contains reduced hourly rates for employees hired after January 1, 2017, for both the equipment operator and laborer classifications. Probationary employees receive 80 percent of the classification rate during their first 90 calendar days of employment. There is no longevity pay.

The CBA also sets forth reduced vacation, with a maximum of 160 hours (four weeks), for employees hired after January 1, 1994. Employees contribute to their health insurance per pay period. In addition, beginning on January 1, 2018, employees pay 20 percent of all future increases in the cost of health insurance above the 2016 rates. However, the borough agreed to a side letter agreement that placed a cap on the amounts that employees contribute to their health insurance, including future increases, as follows:

Level of Coverage Per pay

Contribution

2018 per pay Caps

Employee $28.62 $50.00

Employee & Children $57.25 $100.00

Employee & Spouse $78.72 $125.00

Family $85.88 $150.00

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As with the police bargaining unit, these provisions for employee contributions to health insurance provide the framework for the borough to make changes to health insurance carriers and plan design on an annual basis, since employees should be willing to make these changes in order to reduce their own contributions.

The borough recently negotiated a tentative agreement with the AFSCME—Public Works bargaining unit for the period from January 1, 2021 to December 31, 2023. The tentative agreement was ratified by both parties. That agreement provided for hourly rate increases of 1.5 percent effective January 1, 2021, 2 percent effective January 1, 2022 and 2 percent effective January 1, 2023.

The new agreement contains a drug and alcohol testing policy. It also includes a provision that, in the event of an overtime dispute, the borough will never pay overtime for hours not actually worked. The side letter regarding caps on employee contributions to health insurance will remain in effect during the term of the new agreement.

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CHAPTER 6

OBSERVATIONS AND RECOMMENDATIONS

Introduction

Brookville has fiscal challenges ahead including declining assessment values and growing expenditures that are likely to result in future deficits if no action is taken. The borough has shown prudent financial management in the past by instituting appropriate tax increases and actively taking steps to lower personnel expenditures. As a result, the borough experienced only one deficit in the historical period. The borough is encouraged to continue this proactive fiscal management pattern as projections indicate the borough could start to experience deficits in 2023 absent changes.

The pandemic has added another wrinkle of uncertainty to the financial picture with the potential of reduced tax revenue. The borough will need to monitor developments and adjust accordingly, which could mean holding the line on non-essential spending. The borough should also track any COVID-19-related expenditures so that any reimbursement funds are maximized.

In terms of potential future revenue, Brookville should examine its parking system and rates. Parking assets include meters and a paid lot. Parking meter revenue ranges from $37,500 to $39,000 annually and parking lot permit revenue is approximately $12,000 annually. Meters are 5 cents for 15 minutes and permit costs are $300 a year or $30 a month. Brookville serves as the county seat for Jefferson County and a hub for commerce as the second largest municipality in the county. Meter rates appear to be low in that context.

The borough’s demographics shows wealth measurements that are slightly better than the county but mostly below the state. Meanwhile, the borough’s population has been declining and growing somewhat older with deaths exceeding births. The number of vacant housing units is increasing.

To counter the negative impact of these trends on the tax base, Brookville should focus efforts on community and economic development to maintain existing residents and businesses and attract new ones. This includes undergoing the comprehensive planning process, focusing on parks and other residential amenities like a community swimming pool, seeking natural and arts tourism opportunities and encouraging businesses that cater to them, and continuing partnerships with outside organizations such as Historic Brookville, the Redbank Valley Trails Association and the local chamber of commerce.

Numerous other recommendations focus on ensuring the borough is following best practices in terms of financial management and policies and procedures. Staff should have regular training and undergo annual performance reviews. Continuity of operations plans, and capital improvement plans should be developed for the various departments. The borough should also consider appropriate technology upgrades such as GIS-based software to produce a digital inventory of borough assets.

In terms of public works, the borough should investigate funding options to upgrade its current storage facility and traffic light system. The latter is needed to reduce congestion caused by nearby Interstate 80.

The Pennsylvania Economy League advises the borough to consider implementing the recommended initiatives as outlined in the remainder of this chapter. Recommended target dates for

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initiatives are immediate, short term (one to two years) and long term (two years or more). Budget impact refers to the General Fund unless otherwise noted. PEL encourages the borough to seek Strategic Management Planning Program Phase II funding for initiatives as appropriate. Certain initiatives will require funding that might be obtained through STMP Phase II or other state programs.

Recommendations

Administration and Finance

Admin 01 Prepare for potential impact from the COVID-19 pandemic

Target Date Immediate

Responsible Party Borough Manager

Budget Impact Financial management

The impact to municipalities from the COVID-19 pandemic is still uncertain. The borough should continue to review its cash flow as the year progresses. Also monitor the growth of property tax delinquencies and/or a change in payment patterns from the discount period to face value to penalty. Note that earned income tax revenues for the first two quarters of 2021 reflect COVID-19 impacts from October to December 2020 and January to March 2021, respectively.

Admin 02 Prioritize community and economic development efforts



Budget Impact Potential revenue; tax base growth

Efforts should include drafting a new comprehensive plan, focusing on park upgrades including planning and evaluation of a community swimming pool and working with community partners on projects like Historic Brookville. Bolster capacity by seeking funding sources for an economic development director. Seek Phase II funds as appropriate for various studies related to this initiative. The borough should also continue with its efforts to seek a grant from the Community Conservation Partnerships Program through the state Department of Conservation and Natural Resources.

Admin 03 Upgrade information technology as appropriate



Budget Impact Potential STMP match

Standard cyber-security practices recommend upgrading current borough IT hardware at this point in its life and locating the server in a secure, environmentally controlled location. Consideration should also be given to redundancy in the area of data back-up; possibly implementing both onsite and cloud-based back-up procedures. The borough should also consider additional software upgrades as appropriate to increase capacity and improve operations. Upgrades should be sought through STMP Phase II funding for this initiative.

Admin 04 Consider alternative methods to collect the per capita and occupation taxes


Responsible Party Borough Manager; Borough Council

Budget Impact Improved revenue collection

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Some municipalities have transitioned to including the per capita and occupation charges as part of the millage rate in order to improve collections and eliminate what could be considered a nuisance tax, both for taxpayers and tax collectors. Currently, the occupation tax is $36, and the per capita tax is $5. In 2019, the two taxes collected $15,155 total. A mill in Brookville equals $79,099 at 100 percent collection rate so that a millage increase of 0.25 mill would yield the same revenue. It is likely that a conversion to a millage would be a tax decrease depending on the number of taxpayers in a household.

Admin 05 Review current parking system

Target Date Short Term


Budget Impact Potential STMP match; potential revenue source

Seek STMP Phase II funds to review current parking assets (meters and borough-owned lot) with a goal of modernizing the system in terms of equipment and rates.

Admin 06 Provide resources for newly elected officials



Budget Impact Potential expenditure

Boroughs that operate under the mayor-council form of government with a borough manager operate most effectively with a well-informed mayor and council. The borough should consider drafting a Newly Elected Officials Onboarding Manual. This manual will both facilitate and expedite the onboarding process for newly elected officials.

Admin 07 Consider drafting a Continuity of Operations Plan

Target Date Short Terms

Responsible Party Borough Manager; Department Heads

Budget Impact N/A

The borough provides mission critical services to the community such as utility management and emergency management functions in times of emergency. A community must be prepared for all exigencies, i.e., storm damage, fire damage, water damage, or any other circumstance that would render Borough Hall unusable. The borough should consider drafting a Continuity of Operations Plan that would identify alternate locations appropriate for both short and long-term operational use, ensure IT/records management back-up, communications, and continued operations of emergency management functions, routine day to day functions, and continued operation of the borough council.

Admin 08 Consider human resources improvements



Budget Impact N/A

Conduct an annual review of the employee handbook to confirm continued compliance with applicable employment law and consistency with actual operational practices. Consider reviewing and re-issuing job descriptions with annual performance appraisals to confirm they are consistent with actual job functions being performed. Conduct annual performance reviews for all full-time and part-time employees.

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Admin 09 Draft agreements between the borough and municipal authority


Responsible Party Borough Manager/Borough Solicitor

Budget Impact Financial management

Consider having a management and operations agreement drafted by council between the borough and municipal authority. An operations and management agreement would formally memorialize the relationship between the two entities, addressing roles and responsibilities, management services provided and associated financial obligations.

Admin 10 Consider drafting and adopting an Accounting Policies and Procedures Manual



Budget Impact STMP Match

Policies that should be considered include: Finance Calendar, General Cash Receipts Policy, Credit Card/Fuel Card Policy, Capitalization Policy, Balanced Budget Policy, Fund Balance Policy, Investment Policy, Debt Management Policy, and a Contribution Policy. A written Accounting Policies and Procedures Policy Manual ensures that appropriate checks and balances are incorporated into daily financial activities. The manual should detail the annual financial/business cycle in areas such as reports due to the Commonwealth, timing of audits, tax filings, etc. A written manual also ensures continuity of operations in the event the borough loses key personnel.

Admin 11 Consider incorporating projections into the budget



Budget Impact Improve Financial Management

Consider incorporating five-year cash projections into the annual budget process. Five-year projections for all funds will allow administration and the council to incorporate long-term financial impacts into decision making processes.

Admin 12 Provide employee training

Target Date Long Term



The borough should consider providing training for all employees in areas such as: general workplace safety, sexual harassment, diversity and inclusion, ethics, cyber-security, and in other subject matter areas as identified by the borough manager and borough staff. Attention to these areas can ensure an appropriate workplace environment. The areas noted are areas of general liability which can be easily mitigated through appropriate training, policy, and enforcement. Consider training resources such as the Pennsylvania Municipal League.

Admin 13

Develop and maintain a comprehensive multi-year capital improvement program

(CIP) and asset inventory

Target Date: Short Term

Responsible Party: Borough Manager/department heads

Budget Impact: General Fund relief

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Conduct a borough-wide inventory to assess the most current and critical repair and replacement needs for equipment, buildings and infrastructure and establish a multi-year (at least five years) CIP to address these needs.

To best address the borough’s capital needs within the constraints of limited resources, the borough should set clear criteria for prioritizing and selecting capital investments that:

• Protect the health and safety of the public and employees.

• Advance the implementation of the borough’s long-term goals and objectives.

• Invest in core infrastructure and equipment needs. Show the impact of capital investments on the operating budget.

The CIP process should precede the borough’s normal budget process and be completed by September of each year so that CIP recommendations are integrated into the operating budget. The annual CIP document should include, but not be limited to:

• A narrative that details CIP project priorities for the upcoming budget year.

• A description of the CIP development process that the manager and staff conducted during the year and how the CIP projects were selected.

• A summary of the CIP by project type and department.

• Individual descriptions of each project included in the CIP for the upcoming budget year. The description of each project should include the project’s location, project summary, estimated cost, estimated completion date and the project’s estimated operational cost and/or savings.

• Funding source(s) and/or capital borrowings.

• Impact of capital improvements on operating budget.

The creation of an annual CIP document will allow the borough to prioritize its capital projects within the framework of limited resources and in alignment with its goals and objectives. Additionally, it will give elected officials and the public an opportunity to comment on the projects.

Development of a sustainable CIP must begin with an assessment of existing capital assets. PennDOT’s Local Technical Assistance Program can provide resources to assist with the assessment.

Admin 14 Consider home rule for tax flexibility


Responsible Party Borough Council/Borough Manager

Budget Impact Tax flexibility

Home rule charter municipalities are not subject to the limits on the rates of real estate millage, earned income and real estate transfer taxes that exist in state municipal codes, although the charter can limit the increase of total tax revenue year over year.

As a home rule municipality, the borough could take a more balanced approach to taxes by using a mixture of increases on the three tax levies so that no one tax paying group is impacted disproportionately. For example, retired individuals might pay property tax but do not pay earned income tax. Wage earners pay the earned income tax and might also pay property tax. Commercial

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and business entities are more likely affected by property tax and real estate transfer tax increases since their property values and transactions tend to be on a larger scale and they are not subject to the earned income tax.

Home rule is a complex process that involves multiple votes by residents and the governing body, including the election of a home rule charter study commission. Information on home rule and the home rule process is available from the state Department of Community and Economic Development’s Home Rule in Pennsylvania manual. The manual is available for download at www.dced.pa.gov/library under Local Government//Handbooks and Guides//Local Government Administration.

Admin 15 Consider efforts to lobby for change to Act 511 tax restrictions


Responsible Party Borough Council/Borough Manager

Budget Impact Improved tax flexibility

In addition to home rule, the borough should consider discussions with its legislative delegation to authorize increased rates of taxes for the earned income and local services taxes in order for municipalities to gain the tax flexibility described above under home rule. It is recognized that special legislation will be required to enact this change.

The borough could also focus its efforts with the bicameral, bipartisan Local Government Commission. As the name suggests, the commission is concerned with local government issues and advances legislation in that regard. The commission has already held discussions and drawn up preliminary legislation to make the home rule process easier for municipalities.

The natural constituency to join with Brookville on these efforts are other high-density municipalities like other boroughs, cities and first-class townships that are feeling similar pressures. As a result, the Pennsylvania Municipal League is a likely partner. PML helped to spearhead an effort to reform Act 111 collective bargaining and municipal pensions several years ago that failed to gain traction but demonstrates PML’s willingness to take on these issues.

Admin 16 Approach Jefferson County about conducting a property reassessment.

Target Date: Long Term

Responsible Party: Borough Council

Budget Impact: Tax base stabilization

In the Commonwealth, counties are generally responsible for conducting property reassessments that determine how much revenue a municipality receives for each mill of taxes. However, there is no state requirement concerning frequency of a reassessment, essentially leaving the decision of when to reassess up to the counties themselves. Counties are generally disinclined to reassess on their own because of cost and political considerations.

In 2005, Jefferson County adjusted the common level ratio used to calculate assessed value. That adjustment put Brookville’s assessed value more in line with its market value. Assessed value in the borough has declined since then while market value has grown, indicating that the borough has been unable to harness that natural grown in its tax revenue. Since 2011, market value has increased by 9.04 percent while assessed value declined by 5.34 percent.

https://dced.pa.gov/download/home-rule-pa-pdf/?wpdmdl=57752&refresh=5e74d7d69c5961584715734

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There are numerous consequences to outdated property assessments. First, outdated assessments often result in higher millage rates that can scare off businesses, particularly when adjacent counties have recent assessments that allow them to maintain lower millage rates. The relative values of both rates may be the same, but the perception of a higher millage is a drawback.

Outdated property assessments also invite appeals, particularly by large, highly valued businesses. The reduction of property assessment value can mean an increase in inequity among property owners, loss of revenue to the borough, refunds of prior year taxes, and destabilization of the tax base.

Finally, older assessments are a disincentive for new construction and renovations, which often bear a higher assessment that is more reflective of market value.

Considering the age of the assessment and the gap between market and assessed value, it is recommended that the borough discuss the possibility of a property reassessment with the county.

Economic Development

ED 01 Update the comprehensive plan



Budget Impact STMP matching funds

Seek STMP Phase II funds to updating the comprehensive plan, addressing needs of the community such as economic development, land use, housing, community infrastructure and services, transportation, parks and recreation, trails, and environmental resource protection. Updating the various component of the comprehensive plan (housing, utilities, recreation, sustainability, etc.) will provide opportunities for collaboration among various parties such as Jefferson County, the Brookville Area School District, and all the surrounding municipalities. The plan should be drafted and reviewed for consistency with the goals and objectives of the Jefferson County Comprehensive Plan, last updated in 2018.

ED 02 Consider an economic development director




Consider investigating the availability of grant funding that could be used to fund an economic development director. This position would theoretically facilitate economic development among various participants that could include the borough of Brookville, Jefferson County, Historic Brookville Inc., the Brookville Area Chamber of Commerce, the Red Bank Valley Trail, and other organizations as identified.

Public Works

PW 01 Consider allocating funds for the construction of a new salt/storage shed


Responsible Party Borough Manager/Public Works Director

Budget Impact Potential expenditure/STMP Match

Consideration should be given to the possibility that funds will need to be allocated for the design and construction of associated stormwater facilities to mitigate additional run-off generated by a

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larger storage facility. The borough should consider investigating the availability of grant funding for design, engineering, permitting, and construction of a new storage facility.

PW 02 Consider drafting a public works department policies and procedures manual.


Responsible Party Public Works Director


The goal of the manual is to clearly communicate and document expectations, policies and procedures in areas such as project management, operation of motor vehicles, snow/ice control, roadway maintenance, signage, traffic signal maintenance, confined space operations, training, health and safety, grounds and park maintenance, purchasing, etc.

PW 03 Consider drafting a health and safety manual




This manual should address policies and procedures specific to safety in the workplace and should include best management practices specific to operation of equipment, safety clothing, personal protective equipment (PPE), and training.

PW 04 Consider developing a digital inventory of borough assets




The inventory should include parks, roadways, signage, traffic signals, and stormwater infrastructure. A GIS based software platform would allow for a detailed inventory and documentation of all assets, their location, condition, maintenance and repairs, etc. This type of system can be used as both a management planning and risk management tool and can potentially be used across multiple departments within the organization, i.e., public works, codes, and water and wastewater.

PW 05 Consider drafting a ten-year capital replacement plan for all department equipment



Budget Impact Financial Management

See ADMIN 14 for additional details.

PW 06 Implement a department training program



Budget Impact TBD

The curriculum should include policies and procedures, workplace safety, safe operations of motor vehicles, safe operations of motor vehicles in winter weather events, reasonable suspicion for supervisors (CDL operators), ethics, other subject matter as identified by the public works director and the borough manager.

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PW 07 Implement traffic signal inspection program




Consider implementing an annual inspection program of traffic signals and any associated infrastructure to ensure proper operation and compliance with traffic signal permits. This activity should be outsourced to a third-party subject matter expert with experience in traffic signal maintenance and repair. The borough should be responsive in addressing items noted as being inconsistent with issued traffic signal permits.

PW 08 Upgrade traffic signals


Responsible Party Borough Manager/Public Works Director

Budget Impact Potential match

The borough should investigate grant funding available from the Pennsylvania Department of Transportation that could be used to upgrade the individually controlled traffic signals and incorporate all signals into a responsive network. Examples of applicable funding include the Automated Red Light Enforcement Program (ARLE). Projects improving safety, enhancing mobility and reducing congestion can be considered for funding. https://www.penndot.gov/TravelInPA/TrafficSignalsManagement/pages/default.aspx

Police

POL 01 Better secure the police department server


Responsible Party Borough Manager/Police Chief


The police department server and associated IT equipment was observed in the patrol room. Re-locate the police department server and associated IT infrastructure to a secure, environmentally controlled space.

POL 02 Draft a continuity of operations plan


Responsible Party Police Chief

Budget Impact N/A

Police departments providing mission critical services to a community must be prepared for all exigencies, i.e., storm damage, fire damage, water damage, or any other circumstance that would render police department headquarters unusable. The police department should consider drafting a Continuity of Operations Plan that would identify alternate locations appropriate for both short and long-term operational use, ensure IT/records management back-up, communications, re-location of evidence, etc.

POL 03 Increase transparency


Responsible Party Police Chief

Budget Impact N/A

https://www.penndot.gov/TravelInPA/TrafficSignalsManagement/pages/default.aspx

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Consider publishing an annual operations report and sharing with internal and external stakeholders. The report should thoroughly document all aspects of police department operations with the goal being transparency.

Parks

Park 01 Develop a parks capital plan



Budget Impact Financial Management

Consider conducting a detailed inventory and drafting a ten-year capital replacement plan for all park infrastructure and any equipment used by the public works department to maintain park infrastructure

Park 02 Seek grant funding for park improvements

Target Date Immediately


Budget Impact Potential revenue

Consider pursuing available grant funding for park improvements through the Department of Conservation and Natural Resources (DCNR) and as described in ADMIN 02. This can be accomplished with in-house staff or using third-party grant writing consultants. https://www.dcnr.pa.gov/Pages/default.aspx


Park 03 Ensure playground equipment is in good condition and signage is appropriate




Consider the feasibility of certified playground safety inspector training/certification for employees. Potentially use the borough’s insurance carrier for the safety inspection function.

Confirm that all borough parks contain appropriate signage detailing park rules, playground use/age regulations, and contact information for the borough.

Park 04 Investigate a municipal swimming pool



Budget Impact Potential grant funds

The concept of a municipal swimming pool facility was noted by several interview participants. The borough should consider conducting a parks, trails, and recreation study as part of a municipal comprehensive plan update. (See ADMIN 02) This study will help identify and focus community and organizational goals in the areas of parks, trails, and recreation and potentially provide a base starting point in the grant acquisition process. The borough should consider STMP Phase II funding for this. The borough should also apply for funding a grant through the DCNR - Bureau of Recreation and Conservation Community Conservation Partnerships Program (C2P2).



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Park 05 Draft an agreement with the Brookville Area Little League


Responsible Party Borough Solicitor

Budget Impact N/A

Consider drafting a formal agreement between the Brookville Area Little League and the borough for park use and maintenance at Memorial Park. Any formal agreement should address use, acceptable conditions, risk management/liability, etc.

Water and Wastewater

WW 01 Draft appropriate water and wastewater plans

Target Date Short term


Budget Impact TBD

Qualified water and wastewater operators are in short supply in many areas of the commonwealth. Consider drafting written standard operating procedures for water and wastewater operations. These SOP’s will ensure operational consistency under current personnel, and more importantly, will ensure operational consistency in the event current personnel are no longer available to carry out their duties.

• Draft and adopt an emergency response plan - preparedness, prevention, and contingency planning.

• Consider drafting an operations and maintenance plan. Water and wastewater operations are mission critical services. The borough’s water and wastewater operations are relatively new and appear to be well run and well maintained. An operations and maintenance plan will ensure personnel are operating and maintaining the plants consistently. An O & M plan, theoretically, improves the performance and extends the longevity of the plants.

• Draft a formal succession planning process, operational redundancy (illness, pandemic, etc.) – establish a relationship with an outside firm or other municipal entities – think mutual aid.

• Consider the development and adoption of a ten-year capital improvement plan.

These plans should be reviewed, and updated if necessary, on an annual basis. Annual reviews should include training on the content of plans and implementation.

Collective Bargaining

CB 01 Continue with current collective bargaining strategy

Target Date In conjunction with collective bargaining

Responsible Party Labor Attorney

Budget Impact Expenditure reduction

The borough’s two CBAs provide a fair level of wages and benefits to the employees of the borough. These agreements should provide both short and long-term sustainability for the borough to continue providing effective essential services to residents. As such, the main recommendation of this review is to continue with the current collective bargaining strategy.

Documents

Borough of Brookville - Pennsylvania Economy League