Township of Haverford, PA Article II Financial Management Policy

[Adopted 6-10-2013 by Res. No. 1894]

§ 20-3 Revenue performance.

A. Estimates of revenue. The Township of Haverford will estimate annual revenues on an objective and reasonable basis. The Township of Haverford will develop a method to project revenues on a multiyear basis.

B. One-time revenues. The Township of Haverford will use one-time or special purpose revenue for capital expenditures or for expenditures required by the revenue, and not to subsidize recurring personnel, operation and maintenance costs.

C. Enterprise funds. The enterprise fund of the Township of Haverford (Sanitary Sewer) will maintain revenue which will support the full direct and indirect costs of the fund, including costs of operation and maintenance; depreciation; reasonable rate of return on the net value of the enterprise; and debt service. Also, enterprise fund revenues will not be used to subsidize unrelated general fund activities.

§ 20-4 Expenditure performance.

A. Collaborative efforts. The Township of Haverford will encourage delivery of services by collaborative efforts with our public and/or private organizations whenever and wherever greater efficiency and effectiveness can be expected, as well as develop and internally use technology and productivity advancements that will help reduce or avoid increasing personnel costs. The intent is to control personnel costs as a proportion of the total budget; to more productively and creatively use available resources; and to avoid duplication of effort and resources.

§ 20-5 Fund balance.

A. A general fund balance will be maintained to provide the Township with sufficient working capital and a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing.

B. The upper goal for the fund balance is 18.5%, but not less than 17% of the budgeted general fund revenues.

C. Funds in excess of the upper goal may be considered within the parameters discussed in the Fund Balance Policy of Haverford Township, Resolution No. 1830-2012, adopted on January 9, 2012.[1]

[1] Editor's Note: See Art. I, Fund Balance Policy.

§ 20-6 Capital acquisition.

The Township will develop an annual three-year plan for capital improvements and make all capital improvements in accordance with an adopted and funded capital improvement program unless additional revenues or grant income become available to fund specific projects.

§ 20-7 Debt.

A. Tax compliance. The Township will comply with policies and procedures set forth in Addendum A[1] regarding post-issuance policies and procedures related to tax-exempt government bonds.

[1] Editor's Note: Addendum A is on file in the Township offices.

B. Debt limits. The Township will limit its total outstanding general obligation debt according to the Local Government Unit Debt Act.