Middletown reports stronger-than-expected Q2 revenue; ARPA still pending
July 18, 2022 | Middletown, Bucks County, Pennsylvania
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Middletown Township's Director of Finance, Ms. Bhandari, presented a Q2 2022 financial report showing revenue and expense performance generally favorable to budget but with mixed investment returns.
Key figures from the presentation: year-to-date revenue is at about 64% of the annual target while expenditures are about 34% of the planned amount; year-over-year revenues are roughly $1.2 million higher than Q2 2021 excluding ARPA; the township has not yet received ARPA funds and staff estimates total ARPA allocations around $2.4 million that would significantly increase year-to-date revenue when posted. Bhandari identified EIT growth, $597,000 in real estate transfer taxes and approximately $333,000 in permit revenue as major contributors to the stronger revenue picture.
On investments and pensions, the investment portfolio had some market-value losses this quarter but performed better than benchmark; the nonuniform pension plan was cited at -11.5% and the uniform plan at 10% return. Staff said the township maintains cash reserves separate from investment returns to meet monthly payroll and obligations.
Board members asked clarifying questions about ARPA timing and the implications of pension returns; staff said Bucks County is still finalizing the disbursement process and that the township expects to receive ARPA funds in the coming weeks. No formal action was required on the report at the meeting.
Recent and next steps: Finance will continue monitoring investment performance, follow up with Bucks County on ARPA timing and present any budget adjustments or related actions to the board if needed.
Key figures from the presentation: year-to-date revenue is at about 64% of the annual target while expenditures are about 34% of the planned amount; year-over-year revenues are roughly $1.2 million higher than Q2 2021 excluding ARPA; the township has not yet received ARPA funds and staff estimates total ARPA allocations around $2.4 million that would significantly increase year-to-date revenue when posted. Bhandari identified EIT growth, $597,000 in real estate transfer taxes and approximately $333,000 in permit revenue as major contributors to the stronger revenue picture.
On investments and pensions, the investment portfolio had some market-value losses this quarter but performed better than benchmark; the nonuniform pension plan was cited at -11.5% and the uniform plan at 10% return. Staff said the township maintains cash reserves separate from investment returns to meet monthly payroll and obligations.
Board members asked clarifying questions about ARPA timing and the implications of pension returns; staff said Bucks County is still finalizing the disbursement process and that the township expects to receive ARPA funds in the coming weeks. No formal action was required on the report at the meeting.
Recent and next steps: Finance will continue monitoring investment performance, follow up with Bucks County on ARPA timing and present any budget adjustments or related actions to the board if needed.
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