Springfield reviews 2025 operating budget; general fund balanced using reserves and grants

Terri Hummel, the township's budget presenter, reviewed Springfield's proposed 2025 operating budget Wednesday evening, saying the general fund is $21,542,309 and that staff balanced the year's budget using $810,172 of fund balance.

Hummel told the board the township is taking a conservative revenue approach for 2025 and that most revenue lines are similar to 2024, while noting several one-time and grant-related items that affect fund balances. "The general fund is balanced with the use of fund balance of $810,172," Hummel said. She said $438,000 in remaining American Rescue Plan Act (ARPA) funds are available in the sewer fund to support contract services.

Why it matters: the presentation condensed operating and capital details into a budget that staff expects the board to consider for final approval in December. Hummel said staff begins the budget process each July and plans three public sessions; the township manager must present a budget on Nov. 20 and the board is scheduled to consider final approval on Dec. 12.

Key numbers and funds: Hummel listed the major fund totals and program-specific allocations: general fund $21,542,309; liquid fuels (state allocation) $866,675; capital improvements fund $4,213,044 (includes building debt service); sewer fund expenditures about $12,968,190; the 2025 capital program totals about $7,176,137 with roughly $4.1 million of that for sewer projects. Hummel also reported the township's reserves exceed $7.9 million and that an ordinance requires a minimum reserve equal to 10% of the approved budget (2024 required amount $2,005,630).

Revenue drivers and risks: Hummel told the board that tax revenue remains the largest revenue source (about 65.5% of total revenue) and cautioned that the state reduced liquid fuels allocations by 5% for 2025 and staff expects a 2% annual decline for five years, a development that could affect road work. She also highlighted a drop in cable franchise revenue (from $428,000 last year to an anticipated $384,000) and said ARPA-funded revenues used in 2024 were larger than the available balance for 2025, producing a near-$600,000 revenue reduction relative to 2024.

Grants and capital funding: Hummel identified two grant inflows the township expects to support fund balance and projects: a PennDOT grant for Davies Drive ($836,000 expected in 2024) and a RACP grant (transcript referenced $3,500,000 expected in 2025). She told the board these grants are important to replenish reserves and support capital work.

Operating pressures: Hummel warned that sewer operating costs are escalating above inflation, driven by repairs, maintenance and chemical costs, but staff proposed no sewer rate increase for 2025. She also outlined compensation changes: a proposed 3% increase for nonunion employees tied to performance evaluations and contractually required increases for Teamsters and police personnel; health insurance costs rose ~17.4% this year (Teamsters 2%).

Department highlights: administration and finance show roughly double-digit increases mostly tied to benefits and service fees; IT is up modestly (vendor Elevated MSP recommended changes); parks saw increased contract services and added a $30,000 line for certified playground inspections; the township's gaming revenue is projected near $1.8 million for 2025.

Next steps and board questions: board members asked for clarification on the reported ending general fund balance and whether pending grant proceeds were included; Hummel confirmed the headline ending balance did not include the large anticipated grants and that including those grants would put the total above $10 million. No formal motions or votes occurred at the session; the board indicated another meeting was likely unnecessary and adjourned.

The township manager and budget staff will present the formal proposed budget at the required Nov. 20 meeting, with a target of final board approval on Dec. 12.