MOUNT PENN BOROUGH

Strategic Management Planning Program

November 2024

The Pennsylvania Economy League

Harrisburg, PA

Paid for in part by funds from DCED’s Governor’s Center

for Local Government Services.
Borough of Mount Penn STMP 1

CHAPTER 1 ............................................................................................................................................................. 3
GOVERNMENT STRUCTURE AND DEMOGRAPHICS................................................................................................. 3
GOVERNMENT OVERVIEW ...............................................................................................................................................3
DEMOGRAPHIC PATTERNS ...............................................................................................................................................5
HOUSING .....................................................................................................................................................................8
INCOME .....................................................................................................................................................................10
CHAPTER 2 ........................................................................................................................................................... 12
HISTORICAL FINANCIALS ...................................................................................................................................... 12
INTRODUCTION............................................................................................................................................................12
METHODOLOGY...........................................................................................................................................................12
SUMMARY ..................................................................................................................................................................12
ADJUSTED REVENUES AND EXPENDITURES ........................................................................................................................14
ASSESSMENT...............................................................................................................................................................14
REVENUES ..................................................................................................................................................................16
EXPENDITURES ............................................................................................................................................................19
2024 ACTUAL VS. BUDGET ............................................................................................................................................24
SUMMARY ..................................................................................................................................................................24
MUNICIPAL TAX RATE COMPARISON ...............................................................................................................................26
POLICE SERVICES AND PROPERTY TAXES ...........................................................................................................................28
CHAPTER 3 ........................................................................................................................................................... 29
PROJECTIONS ....................................................................................................................................................... 29
INTRODUCTION............................................................................................................................................................29
ASSUMPTIONS.............................................................................................................................................................29
SUMMARY ..................................................................................................................................................................30
FUND BALANCE ...........................................................................................................................................................30
REVENUE ...................................................................................................................................................................32
EXPENDITURES ............................................................................................................................................................33
POLICE EXPENDITURES ..................................................................................................................................................34
CHAPTER 4 ........................................................................................................................................................... 37
OPERATIONS ........................................................................................................................................................ 37
INTRODUCTION............................................................................................................................................................37
GOVERNING BODY .......................................................................................................................................................37
ADMINISTRATION.........................................................................................................................................................38
RECOMMENDATIONS ....................................................................................................................................................44
CENTRAL BERKS REGIONAL POLICE COMMISSION ...............................................................................................................46
RECOMMENDATIONS ....................................................................................................................................................47
PUBLIC WORKS ...........................................................................................................................................................47
RECOMMENDATION .....................................................................................................................................................49
ECONOMIC AND COMMUNITY DEVELOPMENT ...................................................................................................................49
RECOMMENDATIONS ....................................................................................................................................................51
COLLECTIVE BARGAINING ..............................................................................................................................................52
RECOMMENDATIONS ....................................................................................................................................................52
TECHNOLOGY ..............................................................................................................................................................53
RECOMMENDATIONS ....................................................................................................................................................53

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CHAPTER 5 ........................................................................................................................................................... 54
OBSERVATIONS AND RECOMMENDATIONS ......................................................................................................... 54
INTRODUCTION............................................................................................................................................................54
FINANCE ....................................................................................................................................................................56
ADMINISTRATION.........................................................................................................................................................61
PUBLIC WORKS ...........................................................................................................................................................64
CENTRAL BERKS REGIONAL POLICE DEPARTMENT...............................................................................................................65
ECONOMIC AND COMMUNITY DEVELOPMENT ...................................................................................................................67
LABOR AND PERSONNEL ................................................................................................................................................67
APPENDIX ............................................................................................................................................................ 69

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Borough of Mount Penn STMP 3

Chapter 1

Government Structure and Demographics

In 2024, the Pennsylvania Economy League Central Division (PEL) undertook an analysis of the
financial condition of Mount Penn borough 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 2024 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 Mount Penn elected officials and staff. The analysis could not have been
successfully completed without their assistance.

During this project, PEL:

• Analyzed the borough’s financial history from 2018 through 2023 focusing on such factors
as revenues, expenditures, tax base, operating positions, and debt structure.
• Examined the historical data and the 2023 and 2024 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 2025 through 2029 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, economic development, 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

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Borough of Mount Penn STMP 4

distribution, sewage collection and treatment, storm water management, solid waste collection and
disposal, and recycling.
[Link]
Location and Government
Structure

Mount Penn borough, Berks County,

was formed in 1903 from Lower
Alsace Township. The borough
annexed additional portions of the
township in 1937 and 1940. A
suburban, bedroom community of
0.42 square miles, the borough is
bordered by the city of Reading, and
Lower Alsace and Exeter Townships.

Mount Penn 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.

Mount Penn Borough Council is comprised of seven members that serve at large. 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 the council, and
many of the roles found in separate branches or levels of the state and federal governments are
combined in the council members. The council serves as the legislative body by setting policy,
enacting ordinances, and resolutions, adopting budgets and levying taxes.

The council may also perform executive functions, such as developing the budget, enforcing
ordinances, approving expenditures, and hiring employees. While the 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 has few statutory powers in 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. In this case, Mount Penn operates as part of a regional police commission, and
the mayor is one of the borough’s three elected representatives.

There is also an elected tax collector that works part-time, seasonal hours.

Overview of Government Services, Taxes and Fees

The appointed manager at Mount Penn serves as the secretary/treasurer in addition to his manager
role. He is assisted by an administrative secretary. Other part-time staff includes two inspectors.
There is a Streets Department. Police services are provided by the Central Berks Regional Police
Commission, of which the borough is a member along with Lower Alsace Township. Fire services

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Borough of Mount Penn STMP 5

are provided by the Mount Penn Fire Company, a volunteer company that receives a borough
contribution. Water and water treatment is supplied by the Mount Penn Borough Municipal
Authority while sewer services are provided by the Antietam Valley Municipal Authority.
Mount Penn levies a total real estate millage of 14.85 mills: 12.95 mills, general purpose; 0.25 mills,
EMS; 1.25 mills, fire houses and equipment; 0.4mills. Act 511 taxes: resident earned income, 0.5
percent; local services tax, $52; realty transfer tax, 0.5 percent; per capita tax, $10; mercantile and
business privilege wholesale, 1.0 mill; mercantile and business privilege retail, 1.5 mills.

Demographic Patterns
Introduction
Mount Penn borough has a stable population size with wealth measurements comparable to or
below Berks County and the state. The borough has become increasingly diverse over the past 30
years, with the Hispanic population in particular growing from less than 1 percent to approximately
one-third of the total population. The borough also features a robust working population. In trends
to monitor, the number of rental units in the borough has risen, which can lead to blight.
Historical data from this section has been drawn from the U.S. Census and the five-year American
Community Survey (ACS). Data from 2022 is from the ACS. For details on how the ACS differs
from the U.S. Census, go to [Link]
[Link]

Population
Historically, Mount Penn’s population peaked in 1940 at 3,654 after rapid growth in the preceding
two decades. While the borough has experienced declines, the population has generally remained
between 3,000 and 3,500. Since 1970, the population dropped to its lowest point of 2,883 and then
began to grow to the Census population of 3,222 in 2020. As a result, the borough experienced a 7
percent decline in population from 1970 to 2020.
In contrast, Berks County has steadily grown since 1970, for a population increase by 2020 of 44.7
percent.
Table 1-1

Population in Mount Penn and Berks County, 1970 to 2022

1970 1980 1990 2000 2010 2022 Change 1970 - 2022
# %
Borough of Mount Penn 3,465 3,025 2,883 3,016 3,106 3,222 -243 -7.0
Berks County 296,382 312,509 336,523 373,638 411,442 428,849 132,467 44.7

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Figure 1-1

Mount Penn Historical Population, 1910 to 2020

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

Population by Race and Hispanic or Latino Origin

The Hispanic population has grown dramatically from less than 1 percent of the population in 1990
to almost one-third by 2020. The Black, One Race population has also increased from less than 1
percent in 1990 to 7.3 percent in 2020.
The borough has become increasingly diverse in the past 30 years. The percentage of Hispanic or
Latino residents grew from less than 1 percent in 1990 to 28 percent in 2022. The percentage of
Black, One Race, rose from less than 1 percent in 1990 to over 10 percent in 2022.
Table 1-2

Percentage of Black, One Race and Hispanic or Latino, 1990 to 2022

1990 2000 2010 2022
Black One Race 0.70% 1.10% 6.50% 7.30%
Hispanic or Latino 0.80% 3.40% 14.10% 31.00%

Figure 1-2

Percentage of Black, One Race and Hispanic or Latino, 1990 to 2022

35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
1990 2000 2010 2022

Black One Race Hispanic or Latino

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Population by Age
Mount Penn’s working population of 18 to 64 has shown steady growth and remained at
approximately 60 percent of the total population. The under age 18 population also increased from
1990 to 2010 and remains 24 percent of the total population. The number of those 65 and over
declined in the borough from 1990 to 2010 but then rose in 2022.
The working age population generally supplies a significant proportion of tax revenue, primarily
through property and earned income taxes. The under age 18 population can serve as a “feeder”
population for the municipality. Those over age 65 are more likely to be on a fixed income and not
pay property taxes.
Table 1-3

Mount Penn Population by Age, 1990 to 2022

Total Population Percent of Total
Age Group 1990 2000 2010 2022 Change 1990 2000 2010 2022
1990-
2022
# # # # # % % %
Under 18 597 739 778 772 175 20.7 24.5 26.1 24.0
18-64 1,663 1,784 1,847 1,887 224 57.7 59.2 61.9 58.6
65 & over 623 493 361 563 -60 21.6 16.3 12.1 17.5
Total Population 2,883 3,016 2,986 3,222 339 100.0 100.0 100.0 100.0

Figure 1-3

Mount Penn Population by Age, 1990 to 2022

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1990 2000 2010 2022

Under 18 18-64 65 & over

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Net Migration
Mount Penn’s population has been driven by natural population change, with births outpacing
deaths in the last three decades. In addition, the borough experienced positive net migration from
1990 to 1999. Since that time, the borough has lost residents to out migration.
Table 1-4

Mount Penn Net Migration, 1990 to 2019

1990 to 1999 2000 to 2009 2010 to 2020 1990 to 2020
Total Population (start) 2,883 3,016 3,106 2,883
Total Population (end) 3,016 3,106 3,222 3,222
Total Population Change (a) 133 90 116 339

Births 320 408 457 1,185

Deaths 300 242 266 808
Natural Pop. Change (b) 20 166 191 377

Net Migration (a minus b) 113 -76 -75 -38

Housing
Age of Housing
Forty-three percent of Mount Penn’s housing was built prior to 1940. Most units were built prior to
1960. Older housing units can be more prone to blight and often have lower value than newer
housing units.
Figure 1-4

Mount Penn Age of Housing Stock,

Built 2020 or later

Built 2010 to 2019 62

Built 2000 to 2009 55

Built 1990 to 1999 41

Built 1980 to 1989 81

Built 1970 to 1979 72

Built 1960 to 1969 116

Built 1950 to 1959 171

Built 1940 to 1949 159

Built 1939 or earlier 592

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Owner Occupied, Renter Occupied and Vacant Housing Units

The number of owner-occupied units steadily decreased from 75 percent to just over 50 percent of
total housing units from 1990 to 2022. Meanwhile, the percentage of renter occupied units has
doubled. Vacant units have also grown in the last two decades. Rental units are more prone to blight
than owner occupied housing units.
Table 1-5

Owner occupied, renter occupied and vacant housing in Mount Penn, 1990 to 2022
Total Housing Units Percent of Total
1990 2000 2010 2022 Change 1990 2000 2010 2022
1990-2022
# # # # # % % % %
Owner Occupied 980 952 884 727 -253 75.2 71.3 65.9 53.9
Renter Occupied 266 326 368 545 279 20.4 24.4 27.4 40.4
Total Occupied 1,246 1,278 1,252 1,272 26 95.6 95.7 93.4 94.3

Vacant 57 57 89 77 20 4.4 4.3 6.6 5.7

Total Units 1,303 1,335 1,341 1,349 46 100.0 100.0 100.0 100.0

Figure 1-5

Owner occupied, renter occupied and vacant housing units in Mount Penn, 1990 to 2022

1,200

1,000

800

600

400

200

0
1990 2000 2010 2022
Owner Occupied 980 952 884 727
Renter Occupied 266 326 368 545
Vacant 57 57 89 77

Median Housing Value of an Owner-Occupied Home

The median value of an owner-occupied home in Mount Penn is now significantly below the median
value in Berks County and is also below the median for the state. In contrast, the median value of an

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owner-occupied home in the borough was on par with the state and only $12,000 less than the
county in 1990. Values in Mount Penn since 1990 grew by 114.2 percent, while the county grew by
203.4 percent and the state by 169 percent.
Table 1-6

Median Housing Value of an Owner-Occupied Home, Mount Penn, Berks County and Pennsylvania, 1990 to 2022
Change 1990 - 2022
1990 2000 2010 2022 $ %
Borough of Mount Penn $69,100 $81,900 $130,800 $148,000 78,900 114.2
Berks County $81,800 $104,900 $175,700 $248,200 166,400 203.4
Pennsylvania $69,700 $97,000 $159,300 $187,500 117,800 169.0

Figure 1-6

Median Housing Value of an Owner-Occupied Home, Mount Penn, Berks County and Pennsylvania, 1990 to 2022

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$0
1990 2000 2010 2022

Borough of Mount Penn Berks County Pennsylvania

Income
Median Household Income
Mount Penn has generally tracked the state in terms of median household income. Both grew by
similar percentages from 1990 to 2022, and both were also below county growth. Median income in
Mount Penn was $12,000 lower than in Berks County in 2022. This represents less of a gap between
the borough and the county as compared to housing value growth. In addition, Mount Penn
exceeded the county on median income in 2010.

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Table 1-7

Median Household Income in Mount Penn, Berks County and Pennsylvania, 1990 to 2022
Change 1990-2022
1990 2000 2010 2022 $ %
Borough of Mount Penn 28,165 41,326 57,744 60,357 32,192 114.3
Berks County 32,048 44,714 51,759 72,070 40,022 124.9
Pennsylvania 29,069 40,106 50,398 61,744 32,675 112.4

Figure 1-7

Median Household Income in Mount Penn, Berks County and Pennsylvania, 1990 to 2022

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
1990 2000 2010 2022
Borough of Mount Penn Berks County Pennsylvania

Education, Employment, Poverty

Current measures show Mount Penn’s residents are less educated and more in poverty than the state
and the county. However, the borough’s employment rate is higher than in both.
Table 1-8

Education, Employment and Poverty, 2022

Bachelor’s Degree or Higher Employment Rate Poverty

Mount Penn 19.5% 72.6% 13.3%
Berks County 27.3% 62.5% 10.9%
Pennsylvania 35.1% 60.1% 11.8%

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Chapter 2

Historical Financials

Introduction
Mount Penn Township shows surpluses in its General Fund over the last three years. However,
surpluses from 2021 to 2023 were driven by one-time federal American Rescue Act Program
(ARPA) funds received in 2021 and 2022, and a series of property tax increases. The borough
experienced deficits in 2019 and 2020, mostly due to capital expenditures.
In 2024 estimated vs. 2024 budgeted, it is likely that the borough will experience a small deficit due
to increases in revenues, especially from new residential development.
In terms of property tax revenue, Mount Penn has raised taxes eight times since 2015. Mount Penn’s
assessment rate has been flat, so the only way to increase real estate revenue is to increase millage.
Mount Penn’s other taxes are at the state authorized maximum.
Non-tax revenue provides only a quarter of revenue once one-time factors are removed. In addition,
the borough’s sanitation fee collections have consistently been below the cost of the service. Mount
Penn does seem to have experienced increased non-tax revenue from its rental registration program
in 2022 and 2023. However, the costs for the outsourced Joint Codes Division those same years,
which provide inspections for the program, appear to exceed the revenues. Joint Codes began in
2022.
Revenues and expenditures for code enforcement both in-house (2019 to 2021) and through Joint
Codes (2022 and 2023) were difficult to track due to recording issues, so a definitive conclusion on
the financial impact of in-house codes vs. Joint Codes could not be determined.
Regarding expenditures, the borough’s largest cost center is the Central Berks Regional Police
Department, which is typical of municipalities that support their own local police. Joint Codes and
the regional police department are shared with Lower Alsace Township. The two municipalities also
have joint zoning.
The largest growth in in-house costs was for employee benefits (health and non-health-related
insurances) that increased by 78 percent from 2019 to 2023.

Methodology
PEL compiled this historical review of the borough’s financials 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 historical review
concentrates on the General Fund.

Summary
Mount Penn experienced deficits in 2019 and 2020 followed by three years ending in surplus.
Revenues almost doubled during this period, assisted by several property tax increases. Expenditures
grew by 67.4 percent.

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Table 2-1

Revenues, Expenditures, Surplus/(Deficit)

Actual Actual Actual Actual Actual Change 2019-2023

2019 2020 2021 2022 2023 $ %
Revenues 1,827,079 1,856,568 2,190,098 3,061,694 3,597,573 1,770,493 96.9
Expenditures 1,929,296 2,037,528 2,064,006 2,661,452 3,229,837 1,300,540 67.4
Surplus/(Deficit) -102,217 -180,960 126,091 400,242 367,736

Figure 2-1

Revenues, Expenditures, Surplus/(Deficit)

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-500,000
2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 Actual

Revenues Expenditures Surplus/(Deficit)

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Adjusted Revenues and Expenditures

To get a clearer picture of operating revenue, the General Fund was adjusted to remove trash
revenues and expenditures, as well as one-time grants, American Rescue Plan Act (ARPA) funds in
2021 and 2022, debt proceeds, and capital costs. The adjustments remove the deficit in 2019, lower
the deficit in 2020 and reduce the surpluses in 2021, 2022 and 2023.
Table 2-2

Adjusted Revenues, Expenditures, Surplus/(Deficit)

Actual Actual Actual Actual Actual Change 2019-2023

2019 2020 2021 2022 2023 $ %
Revenues 1,827,079 1,856,568 2,190,098 3,061,694 3,597,573 1,770,493 96.9
Less:
Grants 0 0 0 -256,226 -1,071,746 -1,071,746 -100.0
Trash Collection -255,484 -300,609 -307,090 -297,696 -368,829 -113,345 44.4
ARPA 0 0 -163,336 -163,853 0 0 0.0
Sale of Fixed Assets 0 0 0 -86,000 0 0 0.0
Proceed of LT Debt 0 0 0 -231,388 0 0 0.0
Net Revenues 1,571,595 1,555,959 1,719,671 2,026,531 2,156,998 585,402 37.2

Expenditures 1,929,296 2,037,528 2,064,006 2,661,452 3,229,837 1,300,540 67.4

Less:
Capital -91,738 -158,732 -85,492 -614,565 -885,746 -794,008 865.5
Sanitation Expenditures -269,951 -307,313 -338,041 -353,628 -333,393 -63,442 23.5
Net Expenditures 1,567,608 1,571,482 1,640,473 1,693,260 2,010,698 443,090 28.3

Net Surplus/(Deficit) 3,988 -15,523 79,198 333,271 146,300 142,312 3,568.9

Assessment
The assessed value of Mount Penn as determined by Berks County has remained flat to declining
over the past 20 years. In contrast, market value as determined by the State Tax Equalization Board
(STEB) grew by almost 65 percent during that same time. The current ratio of assessed to market
value is now 66 percent.
This low assessment growth results in the inability of real estate taxation to keep up with inflation
absent tax millage increases. This issue is compounded by the borough’s real estate tax revenue
collection rate of under 90 percent. The challenge is even more urgent because property tax revenue
makes up a significant portion of the borough’s total revenues.
The Center for Rural Pennsylvania, which is a legislative agency of the Pennsylvania General
Assembly (the “Center”), published a scholarly study entitled “Pennsylvania County Property

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Reassessment: Impact on Local Government Finances and the Local Economy.” 1 In its study the
Center found that an increase in the years since the last countywide reassessment leads to a decrease
in the amount of tax revenue generated per mill, and that the decrease was greater for rural counties.
Further, the Center found that as the years since reassessment increase, the county property tax
system becomes more inequitable. The Center recommended that reassessment occurs at intervals
of no less than every four years.
Table 2-3

Market Value vs. Assessed Value

Ratio of
Assessed
to Market
Year Market Value Change % Change Assessed Value Change % Change Value
2001 82,003,300 91,494,600 111.6%
2002 84,014,200 2,010,900 2.5 91,591,800 97,200 0.1 109.0%
2003 84,013,800 -400 0.0 91,591,300 -500 0.0 109.0%
2004 87,927,400 3,913,600 4.7 91,416,400 -174,900 -0.2 104.0%
2005 88,304,500 377,100 0.4 91,811,500 395,100 0.4 104.0%
2006 97,916,500 9,612,000 10.9 92,413,400 601,900 0.7 94.4%
2007 98,182,900 266,400 0.3 92,559,900 146,500 0.2 94.3%
2008 108,625,797 10,442,897 10.6 92,928,700 368,800 0.4 85.5%
2009 108,661,772 35,975 0.0 92,836,100 -92,600 -0.1 85.4%
2010 116,495,712 7,833,941 7.2 92,873,400 37,300 0.0 79.7%
2011 114,823,675 -1,672,037 -1.4 91,911,900 -961,500 -1.0 80.0%
2012 116,084,115 1,260,440 1.1 91,721,800 -190,100 -0.2 79.0%
2013 118,367,447 2,283,332 2.0 93,658,100 1,936,300 2.1 79.1%
2014 116,350,355 -2,017,092 -1.7 93,987,400 329,300 0.4 80.8%
2015 113,204,448 -3,145,907 -2.7 91,379,000 -2,608,400 -2.8 80.7%
2016 111,468,127 -1,736,321 -1.5 91,182,500 -196,500 -0.2 81.8%
2017 111,017,968 -450,159 -0.4 90,811,900 -370,600 -0.4 81.8%
2018 112,105,385 1,087,417 1.0 90,599,400 -212,500 -0.2 80.8%
2019 111,992,383 -113,002 -0.1 90,507,800 -91,600 -0.1 80.8%
2020 120,419,116 8,426,733 7.0 90,521,700 13,900 0.0 75.2%
2021 120,289,043 -130,073 -0.1 90,426,700 -95,000 -0.1 75.2%
2022 135,196,511 14,907,468 11.0 90,238,000 -188,700 -0.2 66.7%

Table 2-5

Change in Market Value vs. Assessed Value

Market Value Assessed Value

Change 2001 - 2022 53,193,211 64.9% -1,256,600 -1.4%
Average 2,533,010 2.4% -59,838 -0.1%

1Weber, et. al. “Pennsylvania County Property Reassessment: Impact on Local Government Finances and the Local Economy.” The
Center for Rural Pennsylvania. November 2010,
[Link]

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Figure 2-2

Market Value vs. Assessed Value

$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0

Market Value Assessed Value

Revenues
Mount Penn typically receives most revenues from taxes. The percentage of non-tax revenue rose in
2021 through 2023 because of one-time sources including ARPA, grants, and borrowing.
Proceeds of long-term debt refer to a General Obligation Note the borough obtained from M&T
Bank in June 2022 to payoff existing debt of $141,147 and receive funds for repairs to a sink hole
and a storm drain.
Table 2-6

Total Tax Revenue, Non-Tax Revenue, and Debt Proceeds

Actual Actual Actual Actual Actual Change 2019-2023

2019 2020 2021 2022 2023 $ %
Tax Revenue 1,354,856 1,356,470 1,438,277 1,767,253 1,762,061 407,205 30
Non Tax Revenue 472,223 500,098 751,821 977,053 1,835,511 1,363,288 289
Proceed of LT Debt 0 0 0 231,388 0 0 0
Total Revenue 1,827,079 1,856,568 2,190,098 2,975,694 3,597,573 1,770,493 97

Tax Revenues
Combined current and delinquent real estate taxes provided 60 percent or more of total tax revenue
during the historical period. Real estate tax revenue has grown by 44.1 percent since 2019 but has
been fueled by tax rate increases. (See Table 2-7) Property tax rates were raised every year from 2020
through 2024 except for 2022. (See Table 2-8) The increase in 2021 was to pay for streetlights.
All other borough taxes are at the maximum rate. Earned income taxes are the borough’s second
most productive tax, accounting for 25 percent or more of total taxes. The change between 2019
and 2023 is an increase of 30.1 percent.

November 2024
Borough of Mount Penn STMP 17

Other taxes that demonstrated growth are local services and business privilege, although each source
represents less than 5 percent of total tax revenues.
Table 2-7

Total Tax Revenue, 2019 to 2023

Change
Actual Actual Actual Actual Actual 2019-2023
2019 2020 2021 2022 2023 $ %
Real Estate Taxes -
Current 749,111 783,909 767,059 784,793 1,036,151 287,039 38.3
Real Estate Taxes -
Delinquent 36,163 18,989 34,201 67,656 46,395 10,232 28.3
Real Estate Taxes -
Delinquent County 45,750 46,526 50,392 0 0 -45,750 -100.0
Real Estate Taxes -
Interim 50 0 0 16 0 -50 -100.0
Street Light Tax 0 0 33,962 34,724 34,258 34,258 100.0
Per Capita 14,527 11,309 10,452 60,028 13,665 -862 -5.9
Real Estate Transfer 51,244 72,305 92,447 97,715 48,569 -2,675 -5.2
EIT 355,683 330,278 353,876 609,515 462,807 107,124 30.1
BPT 62,374 55,091 58,523 69,562 70,954 8,580 13.8
LST 39,955 38,062 37,364 43,246 49,263 9,308 23.3
Tax Revenue 1,354,856 1,356,470 1,438,277 1,767,253 1,762,061 407,205 30.1

Table 2-8

Tax Rates, 2019 through 2024

Tax Name 2019 2020 2021 2022 2023 2024

Real Estate - General Purpose (mills) 9.00 9.20 9.20 9.20 12.20 12.95
Real Estate - Ambulance/Rescue/EMS (mills) 0.25 0.25 0.25 0.25 0.25 0.25
Real Estate - Fire Equipment & Firehouses (mills) 1.25 1.25 1.25 1.25 1.25 1.25
Real Estate - Street Lighting (mills) 0.00 0.00 0.40 0.40 0.40 0.40
REAL ESTATE - TOTAL (mills) 10.5 10.7 11.1 11.1 14.1 14.85
% Increase 0.0 1.9 3.7 0.0 27.0 5.3

Earned Income - Resident (percent) 0.5 0.5 0.5 0.5 0.5 0.5
Earned Income - Nonresident (percent) 1.0 1.0 1.0 1.0 1.0 1.0
Local Services Tax (LST) (dollars) $52 $52 $52 $52 $52 $52
Realty Transfer (percent) 0.5 0.5 0.5 0.5 0.5 0.5
Per Capita (dollars) $10. $10 $10 $10 $10 $10
Mercantile/Business Privilege - Wholesale (mills) 1.0 1.0 1.0 1.0 1.0 1.0
Mercantile/Business Privilege - Retail (mills) 1.5 1.5 1.5 1.5 1.5 1.5

Historically, the borough has raised taxes eight times since 2015. Despite the borough raising taxes
in 2015, collection rates for total taxes (including delinquent taxes) remain strong. (See Table 2-9)

November 2024
Borough of Mount Penn STMP 18

Table 2-9

Assessed Value, Total Mills, Total Tax Levy, Current Year Collections

Assessed Value Change % Change Total Mills Total Levy Current Year 2 Rate
2011 91,911,900 6.40 588,236 707,905 120.3%
2012 91,721,800 -190,100 -0.2 6.40 587,020 670,693 114.3%
2013 93,658,100 1,936,300 2.1 6.40 599,412 683,091 114.0%
2014 93,987,400 329,300 0.4 6.40 601,519 722,824 120.2%
2015 91,379,000 -2,608,400 -2.8 7.40 676,205 693,778 102.6%
2016 91,182,500 -196,500 -0.2 8.50 775,051 784,682 101.2%
2017 90,811,900 -370,600 -0.4 9.50 862,713 876,082 101.5%
2018 90,599,400 -212,500 -0.2 10.50 951,294 962,095 101.1%
2019 90,507,800 -91,600 -0.1 10.50 950,332 960,844 101.1%
2020 90,521,700 13,900 0.0 10.70 968,582 979,301 101.1%
2021 90,426,700 -95,000 -0.1 11.10 1,003,736 1,015,954 101.2%
2022 90,238,000 -188,700 -0.2 11.10 1,003,309 1,003,309 100.0%

Non-Tax Revenues
• Mount Penn’s largest source of non-tax revenue is revenue from the trash collection fee
of $450 per housing unit, which is paid to a third-party sanitation hauler. Sanitation costs
have exceeded trash collection fees throughout the historic period.
• Licenses and permits are the next most productive source of revenue, fluctuating from 10
percent to almost 18 percent of total non-tax revenue. This category includes all permit
revenue (except zoning), cable franchise fees (approximately $42,000 annually), and funds
from the borough’s rental registration program, which grew with implementation of the
program in 2022 and 2023. Rental property license fee revenue was $47,559 in 2022 and
$71,206 in 2023, with additional amounts for associated activities like certificates of
occupancy and property transfer inspections.
• The borough received non-recurring ARPA funds of $163,336 in 2021 and $163,853 in
2022. The 2021 audit indicates that the ARPA payments were deposited into the GF as
lost revenue.
• Grants include a grant of $107,774 in 2022 and $215,057 (storm water project) and
$856,689 (street project) in 2023.
• State shared revenue in 2021 includes a $67,831 recycling grant that paid for a leaf
vacuum.
• Rents are payments from the water authority to use office space in the borough building.
• Fines and forfeits include revenue from parking fines and vehicle and ordinance
violations issued by the regional police.

2 Total real estate taxes from all sources

November 2024
Borough of Mount Penn STMP 19

• The PILOT was received from St. Cahterine’s High Rise.

• Charges for services include school crossing guards, zoning permit fees and inspections.

Table 2-10

Non-Tax Revenues

Actual Actual Actual Actual Actual Change 2019-2023

2019 2020 2021 2022 2023 $ %
Licenses & Permits 83,566 68,680 72,183 132,268 214,518 130,951 156.7
Fines & Forfeits 26,171 15,799 17,998 16,889 16,781 -9,390 -35.9
Interest 4,012 1,557 788 2,176 8,908 4,896 122.0
Rents 38,501 33,001 35,750 24,955 36,106 -2,395 -6.2
ARP 0 0 163,336 163,853 0 0 0.0
PURTA 1,331 1,415 1,446 1,329 0 -1,331 -100.0
PILOTS 0 0 0 11,655 0 0 0.0
Grants 0 0 0 256,226 1,071,746 1,071,746 100.0
State Shared Revenue 2,383 200 70,190 6,073 6,420 4,037 169.4
Pension State Aid 15,361 19,695 14,392 15,541 11,656 -3,706 -24.1
Foreign Fire 13,701 13,850 12,515 15,719 15,890 2,190 16.0
Charges for Services 15,575 16,565 40,280 28,744 53,108 37,533 241.0
Trash Collection 255,484 300,609 307,090 297,696 368,829 113,345 44.4
Insurance Reimbursements 6,977 8,162 4,519 272 27,341 20,363 291.9
Reimbursements 0 0 3,698 0 1,250 1,250 100.0
Miscellaneous 9,162 20,565 7,636 3,658 2,958 -6,204 -67.7
Non Tax Revenue 472,223 500,098 751,821 977,053 1,835,511 1,363,288 288.7

Table 2-11

Sanitation Revenue and Expenditures

Actual Actual Actual Actual Actual Change 2019-2023

2019 2020 2021 2022 2023 $ %
Sanitation Revenue 255,484 300,609 307,090 284,496 328,084 72,600 28.4
Sanitation Expenditure 269,951 307,313 338,041 316,773 333,393 63,442 23.5
Surplus/(Deficit) -14,467 -6,705 -30,952 -32,277 -5,309

Expenditures
Personnel vs. Non-Personnel
Most of the borough’s costs are for non-employee expenditures, particularly for the Central Berks
Police Department and its personnel. Non-employee expenditures grew by over 30 percent from
2019 to 2023. Employee costs for borough staff varied.
Capital spending fluctuated with annual capital projects and included spending on engineering,
major equipment purchases, street construction and street repairs, some of which was offset by

November 2024
Borough of Mount Penn STMP 20

grant revenue. Capital spending in 2023 also includes $54,104 for Joint Codes through the Central
Berks Commission.
Projects in 2022 were for construction, $501,651, and for engineering, $107,207. Projects for 2023
were $140,000 for paving and $586,573 for construction.
The borough obtained a GO Note in June 2022 from M&T Bank to pay off existing prior debt and
obtain money for projects. The prior debt was related to a bridge project.
Table 2-12

Employee vs. Non-Employee Expenditures

Actual Actual Actual Actual Actual Change 2019-2023

2019 2020 2021 2022 2023 $ %
Employee 318,629 283,957 308,582 302,900 363,950 45,320 14.2
Nonemployee 1,473,234 1,549,143 1,628,007 1,704,913 1,927,104 453,871 30.8
Capital 91,738 158,732 85,492 614,565 888,946 797,208 869.0
Debt Service 45,696 45,696 41,926 39,075 49,837 4,141 9.1
Total Expenditures 1,929,296 2,037,528 2,064,006 2,661,452 3,229,837 1,300,540 67.4

Non-Personnel Expenditures

• Expenditures for Joint Codes services begin in 2022 and were spread over several different
departments (capital, police and zoning), making tracking costs difficult. However, it appears
the total costs were $97,278 in 2022 and $92,750 in 2023.
• Police dispatch is the amount that Berks County charges for the regional police dispatch
services.
• Police services from the CB regional police department account for over half of non-
personnel expenditures. Police services costs grew by almost 30 percent from 2019 to 2023.
• The Services category includes expenditures for auditing, training, tax collector commissions,
solicitor fees, zoning costs, building repairs and maintenance, costs for part-time inspectors,
snow removal costs, and similar items. The tax collector earns 2 percent of the tax collected.
• Supplies include various supplies for administration and public works.
• Streetlights are supported by a streetlight property tax millage.
• Foreign fire is a pass-through to the borough’s volunteer fire company.
• Insurance is for non-health related insurances.
• Vehicles are for gas and vehicle maintenance.
• The Other category includes parks/community events, hydrant rental, cemetery
contribution, and Mount Penn Preserve contributions.

November 2024
Borough of Mount Penn STMP 21

Table 2-13

Non-Personnel Expenditures

Actual Actual Actual Actual Actual Change 2019-2023

2019 2020 2021 2022 2023 $ %
Police Dispatch 21,915 23,449 23,449 23,449 24,950 3,035 13.8
Police Services 919,079 967,488 967,558 1,011,024 1,191,000 271,921 29.6
Joint Codes 0 0 0 97,278 92,750 92,750 100.0
Foreign Fire 13,701 13,850 12,515 15,541 15,890 2,190 16.0
Streetlights 34,945 31,789 30,919 20,231 25,197 -9,748 -27.9
Sanitation Services 200,676 217,935 239,290 260,832 304,254 103,579 51.6
Services 370,102 420,269 474,767 459,634 438,591 68,489 18.5
Supplies 16,686 25,888 17,287 20,591 43,781 27,095 162.4
Insurance 34,381 31,228 27,589 12,384 31,762 -2,619 -7.6
Utilities 11,542 11,257 11,881 19,709 19,925 8,383 72.6
Vehicle 12,690 10,539 16,501 13,442 13,782 1,092 8.6
Other 38,193 13,386 45,540 11,629 29,475 -8,717 -22.8
Total 1,473,234 1,549,143 1,628,007 1,704,913 1,927,104 453,871 30.8

Police Expenditures
Police services are generally the highest cost center for municipalities that provide their own local
police. The figures below plot the cost of Mount Penn’s regional police services against borough
revenue sources.
Real estate tax revenue is the borough’s largest source of total taxes, which is the primary revenue
source for the borough. Figure 2-3 below shows that costs for police services exceeded the amount
that the borough collected in real estate taxes during the historical period.
Figure 2-4 adds earned income taxes, the borough’s second most productive tax, to the comparison.
Police Services costs are lower than total revenue from property and earned income taxes but still
equal most of that revenue.
Figure 2-5 plots police services against borough net revenues. Police services averaged 58 percent of
total revenues during the historical period.
The value of a mill in Mount Penn is approximately $90,000. If the cost of police services was
translated to property tax millage, the rate would be 11.2830 mills in 2019, growing to 15.1559 mills
in 2023. Figures 2-3 through 2-5 do not include the cost of the Joint Codes Division now housed in
the Central Berks Regional Police Department.

November 2024
Borough of Mount Penn STMP 22

Figure 2-3

Real Estate Tax Revenue and Police Service Costs, 2019 to 2024 estimated

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Estimated

Real Estate Taxes Police Services

Figure 2-4

Current real estate tax revenue, earned income tax revenue and police services costs

1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Estimated

Real Estate Taxes Current EIT Police Services

November 2024
Borough of Mount Penn STMP 23

Figure 2-5

Net revenue vs. police services

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Estimated

Net Revenue Police Services

Personnel Expenditures
Direct compensation costs for Mount Penn employees ranged from a low of $194,782 in 2022 to a
high of $232,607 in 2023. Compensation costs in 2023 were 3.9 percent or $8,813 higher than in
2019. The category includes pay for elected officials, manager, secretary, street crew workers,
crossing guard and janitor.
The position of property maintenance inspector was eliminated as of 2022 when code inspections
were moved to the Central Berks Commission. The last recorded salary for property maintenance
inspector was $47,995.
Employee benefits, which include health and other insurances, peaked in 2023, with costs 77.7
percent higher than in 2019. Expenditures grew for all categories of insurance.
The borough replaced a defined benefit pension plan with a defined contribution pension plan in
2018. Regular, full-time employees are eligible for the plan, which is funded by employee and
borough contributions as well as State Aid. One active employee remains on the old defined benefit
plan, which also covers three or four retirees. The borough manager participates in a separate
retirement plan, to which the borough contributes 10 percent of his annual salary. The borough did
not make its Minimum Municipal Obligation (MMO) payment to the defined benefit contribution in
2021. The 2021 payment was made in 2022, and the 2022 and 2023 payments were made in 2023.

November 2024
Borough of Mount Penn STMP 24

Table 2-14

Personnel Expenditures, 2019 to 2023

Actual Actual Actual Actual Actual Change 2019-2023

2019 2020 2021 2022 2023 $ %
Direct Compensation 223,794 206,692 230,052 194,782 232,607 8,813 3.9
Employee Benefits 53,900 45,058 68,418 61,759 95,779 41,879 77.7
Pension 38,822 30,034 7,596 18,610 35,544 -3,278 -8.4
Workers Comp 0 0 0 26,366 20 20 100.0
Unemployment Comp 2,114 2,173 2,515 1,382 0 -2,114 -100.0
Employee Expenditures 318,629 283,957 308,582 302,900 363,950 45,320 14.2

Table 2-14

Departmental Expenditures
Actual Actual Actual Actual Actual Change 2019-2023
Department 2019 2020 2021 2022 2023 $ %
General Government 290,411 273,518 296,706 819,862 419,519 129,107 44.5
Public Safety 982,276 1,026,268 1,028,731 1,110,821 1,377,349 395,072. 40.2
Zoning 65,588 63,949 79,566 67,606 9,638 -55,949 -85.3
Public Works 141,692 130,263 136,670 125,896 137,491 -4,200 -3.0
Sanitation 269,951 307,313 343,996 321,896 333,393 63,442 23.5
Street Lighting 34,945 31,789 30,919 20,231 25,197 -9,747 -27.9
Culture & Recreation 7,000 0 20,000 0 20,322 13,321 190.3
Capital 91,738 158,732 85,492 112,913 845,435 753,697 821.6
Debt Service 45,696 45,696 41,926 39,075 49,837 4,141 9.1
Total Expenditures 1,929,296 2,037,528 2,064,006 2,618,300 3,218,181 1,288,885 66.8

2024 Actual vs. Budget

Summary
Mount Penn is estimated to have a larger deficit than was budgeted. Real estate transfer taxes are
anticipated to be $15,000 higher than budgeted. However, General Government and Zoning
expenditures were also likely to be higher than budgeted. Zoning includes the Joint Codes Division
and other contracted services that were not included in the 2024 budget. Sanitation revenues and
expenditures were also not included in the General Fund budget but are essentially a pass through.
(See Tables 2-15 through 2-17 and Figure 2-6.)
Table 2-15

Estimated 2024 vs. Budget 2024

Estimated Budget Estimated vs Budget

2024 2024 $ %
Revenues 3,277,511 2,051,826 1,225,685 159.7
Expenditures 3,290,532 2,071,236 1,219,296 158.9
Surplus/(Deficit) -13,022 -19,410

November 2024
Borough of Mount Penn STMP 25

Figure 2-6

2024 Estimated vs. 2024 Budget

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
2024 Estimated 2024 Budget

-500,000

Revenues Expenditures Surplus/(Deficit)

Table 2-16

2024 Revenues, Estimated Vs. Budget

Estimated Budget Estimated vs Budget

2024 2024 $ %
Tax Revenue 1,980,444 1,809,051 171,393 109.5
NonTax Revenue 1,297,066 242,775 1,054,291 534.3
Total Revenue 3,277,511 2,051,826 1,225,685 159.7

Table 2-17

2024 Expenditures, Estimated Vs. Budget

Estimated Budget Estimated vs Budget

2024 2024 $ %
General Government 687,211 403,958 283,252 170.1
Public Safety 1,298,883 1,395,578 -96,694 93.1
Zoning 285,286 22,800 262,486 1,251.3
Public Works 129,021 142,401 -13,380 90.6
Sanitation 565,000 0 565,000 100.0
Culture & Recreation 1,500 1,500 0 100.0

November 2024
Borough of Mount Penn STMP 26

Estimated Budget Estimated vs Budget

Capital 276,000 60,000 216,000 460.0
Debt Service 47,632 45,000 2,632 105.8
Total Expenditures 3,290,532 2,071,236 1,219,296 158.9

Municipal Tax Rate Comparison

The value of a mill differs depending on the assessed value of the community. Therefore, property
tax rate comparisons must be approached with caution. For example, in Berks County, Wyomissing
Borough receives $1,026,849 per mill, while New Morgan Borough receives only $37,249 per mill.
As a result, Wyomissing receives $5.5 million in tax revenue from 5.4 mills, while New Morgan
levies more (18.6 mills) and receives less ($692,822.) (See Table 2-18)
Comparing Mount Penn to Lower Alsace, the township receives $165,106 per mill while the
borough receives $90,238 per mill. Lower Alsace has a property tax rate that is lower than Mount
Penn, but the lower millage rate still yields more tax revenue for Lower Alsace ($1.7 million to $1.3
million).
Regardless, public perception is such that the focus tends to be more on the actual property tax
millage rate than how much residents pay under that rate.
Table 2-18 compares the municipal and school district property tax rates in Berks County boroughs
and in Lower Alsace Township. Mount Penn was compared with other boroughs because boroughs
generally have a higher level of services than townships. Comparisons should be viewed in the
context outlined above.
Mount Penn has the highest total property tax rate in the comparison (63.61 mills), followed by
Lower Alsace Township (59.11 mills). New Morgan Borough has the highest municipal property tax
rate at 18.6 mills, with Mount Penn ranking second at 14.85 mills. Eighteen boroughs have
municipal property taxes that are half or less the property tax millage rate in Mount Penn.
Centerport borough has the lowest combined municipal and school district property tax rate at
30.92 mills, less than half the total rate in Mount Penn. Centerpoint’s municipal rate is 3.1 mills.

November 2024
Borough of Mount Penn STMP 27

Table 2-18

Municipal and School District Tax Rates, Value of a Mill and Tax Revenue Collection at 100 percent for Berks County
Boroughs and Lower Alsace Township in 2024

School
Municipal District Value of Tax Revenue
Tax Tax Total Tax One (1) @100%
Municipality School District Amount 3 Amount 4 Rate 5 Mill Collection
Wyomissing Boro Wilson S D 5.400 30.640 36.040 1,026,849 5,544,984
West Reading Boro Wyomissing Area 13.100 34.587 47.687 179,400 2,350,145
Sinking Spring Boro Wilson S D 8.796 30.640 39.436 211,613 1,861,350
Lower Alsace Twp Antietam S D 10.350 48.760 59.110 165,106 1,708,849
Hamburg Boro Hamburg Area S D 9.000 26.960 35.960 169,986 1,529,874
Boyertown Boro Boyertown Area S D 9.040 28.200 37.240 165,323 1,494,516
Shillington Boro Governor Mifflin S D 7.140 31.550 38.690 206,928 1,477,462
Birdsboro Boro Daniel Boone Area 7.110 28.962 36.072 199,677 1,419,706
Mt Penn Boro Antietam S D 14.850 48.760 63.610 90,238 1,340,034
Fleetwood Boro Fleetwood Area S D 7.450 34.110 41.560 159,128 1,185,502
Kutztown Boro Kutztown Area S D 5.500 31.003 36.503 195,680 1,076,241
Laureldale Boro Muhlenberg S D 6.800 36.656 43.456 136,638 929,135
Mohnton Boro Governor Mifflin S D 7.050 31.550 38.600 123,163 868,285
Wernersville Boro Conrad Weiser A 6.840 34.782 41.622 117,172 801,459
Leesport Boro Schuylkill Valley S D 8.720 27.820 36.540 91,167 794,978
Womelsdorf Boro Conrad Weiser A 6.970 34.782 41.752 101,593 708,105
New Morgan Boro Twin Valley S D 18.600 28.555 47.155 37,249 692,822
Topton Boro Brandywine Heights 8.550 36.254 44.804 78,160 668,270
Kenhorst Boro Governor Mifflin S D 5.814 31.550 37.364 111,608 648,887
St Lawrence Boro Exeter Township 8.180 35.838 44.018 76,895 628,999
Robesonia Boro Conrad Weiser A 4.900 34.782 39.682 82,182 402,693
Shoemakersville Boro Hamburg Area S D 7.000 26.960 33.960 47,172 330,206
Bally Boro Boyertown Area S D 5.300 28.200 33.500 57,479 304,637
Bechtelsville Boro Boyertown Area S D 6.300 28.200 34.500 33,791 212,880
Bernville Boro Tulpehocken Area 5.690 25.750 31.440 32,008 182,123
Lyons Boro Kutztown Area S D 1.850 31.003 32.853 32,236 59,637
Centerport Boro Schuylkill Valley S D 3.100 27.820 30.920 12,533 38,853
Lenhartsville Boro Kutztown Area S D 1.500 31.003 32.503 7,738 11,607

3 Source: [Link]
4 Ibid
5 Ibid

November 2024
Borough of Mount Penn STMP 28

Police Services and Property Taxes

A municipality’s tax rates are driven by the amount and type of services that it provides. One of the
costliest services to provide is local police coverage. Table 2-19 shows the type of police services in
Berks County boroughs and in Lower Alsace Township. Six boroughs receive services through a
regional department, including Mount Penn. Wyomissing has the largest municipal force of 24
officers, followed by West Reading Borough at 17 officers. This is state data that does not report the
number of personnel except for those with their own municipal police force.
Table 2-19 6

Berks County Boroughs and Lower Alsace Township, Police Service Type

Municipality Service Type FT PT

Mt Penn Boro Regional Police Service N/A N/A
Lower Alsace Twp Regional Police Service N/A N/A
Bechtelsville Boro Regional Police Service N/A N/A
Boyertown Boro Regional Police Service N/A N/A
Leesport Boro Regional Police Service N/A N/A
St Lawrence Boro Regional Police Service N/A N/A
Bally Boro Own Municipal Police Force 2 1
Bernville Boro Own Municipal Police Force 1 1
Birdsboro Boro Own Municipal Police Force 7 0
Fleetwood Boro Own Municipal Police Force 9 4
Hamburg Boro Own Municipal Police Force 7 2
Kutztown Boro Own Municipal Police Force 11 0
Laureldale Boro Own Municipal Police Force 6 3
Mohnton Boro Own Municipal Police Force 4 4
Shillington Boro Own Municipal Police Force 7 0
Sinking Spring Boro Own Municipal Police Force 6 5
West Reading Boro Own Municipal Police Force 17 0
Womelsdorf Boro Own Municipal Police Force 2 3
Wyomissing Boro Own Municipal Police Force 24 0
Kenhorst Boro Contracted from another municipality 0 0
Robesonia Boro Contracted from another municipality 0 0
Topton Boro Contracted from another municipality 0 0
Wernersville Boro Contracted from another municipality 0 0
Centerport Boro State Police coverage only 0 0
Lenhartsville Boro State Police coverage only 0 0
Lyons Boro State Police coverage only 0 0
New Morgan Boro State Police coverage only 0 0
Shoemakersville Boro State Police coverage only 0 0

6 Source: [Link]

November 2024
Borough of Mount Penn STMP 29

Chapter 3

Projections

Introduction
Mount Penn is projected to experience growing annual deficits over the next five years that would
eventually deplete the borough’s current fund balance if no action was taken. Revenues are likely to
be flat, including real estate tax revenue, which is the borough’s largest source of total revenue.
Expenditures are expected to rise by over 11 percent, with police services, the borough’s largest cost
center, likely to rise by over 13 percent.

Assumptions

Revenue
• The 2024 budget serves as the baseline.
• Tax rates and fees remain at 2024 levels.
• Real Estate Tax Revenue remains flat as assessments decrease at 0.1% annually.
• Current earned income tax growth of 2 percent annually.
• Local services and Business Privilege taxes held constant.
• State Aid for Pensions increased 3 percent annually.
• Other non-tax revenues held constant.
Expenditure

• The 2024 budget serves as the baseline.

• Employees count consistent with 2024 budgeted levels.
• No new debt incurred.
• Wages increase 4.0 percent for 2025 and 2.0 percent annually 2026-2029
• Healthcare increased 6.0 percent annually
• Supplies and services costs increased annually with an inflation adjustment consistent with
the most recent Central Budget Office estimates: 2024 → 2025: 2.2 percent; 2025 → 2026:
2.1 percent; 2026 → 2027: 2.0 percent; 2027 → 2028: 1.97 percent 2028 → 2029: 1.94
percent.

November 2024
Borough of Mount Penn STMP 30

Summary
Mount Penn is projected to experience annual, growing deficits starting in 2025. Revenues are
anticipated to remain flat while expenditures are likely to increase by almost 11 percent.
Table 3-1

Revenues, Expenditures, and Surplus/(Deficit)

Estimated Projected Projected Projected Projected Change 2025-2029

2025 2026 2027 2028 2029 $ %
Revenues 2,768,191 2,779,390 2,790,806 2,802,442 2,814,305 46,113 1.7
Expenditures 2,967,468 3,069,749 3,145,560 3,223,194 3,286,960 319,492 10.8
Surplus/(Deficit) -199,277 -290,359 -354,755 -420,752 -472,655

Figure 3-1

Revenues, Expenditures and Surplus/(Deficit)

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-500,000

-1,000,000
2025 Estimated 2026 Projected 2027 Projected 2028 Projected 2029 Projected

Revenues Expenditures Surplus/(Deficit)

Fund Balance
Figure 3-2 shows Mount Penn’s balance in its General Fund, starting in 2011 when the balance was
approximately $1 million. By 2017, the fund balance indicated a negative balance of $76,120 as the

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Borough of Mount Penn STMP 31

borough used funds to overcome annual deficits. By 2023, after receiving funds from the American
Rescue Plan Act, the fund balance grew to $1.1 million.
Projected deficits would deplete the fund balance by 2027. Best practice is to have approximately
three months of expenditures in the fund balance for emergencies and other uses.
Figure 3-2

Actual and Projected Surplus/(Deficit) and Fund Balance for Mount Penn, 2011 to 2029

$1,500,000

$1,000,000

$500,000

$0

-$500,000

-$1,000,000

Fund Balance Report/Calc Proj Surplus/(Deficit)

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Borough of Mount Penn STMP 32

Revenue
Mount Penn is anticipated to receive almost 70 percent of revenues from taxes and the remaining 30
percent from non-tax revenue sources.
Table 3-2

Tax Revenue and Non-Tax Revenue, 2025 to 2029

Estimated Projected Projected Projected Projected Change 2025-2029

2025 2026 2027 2028 2029 $ %
Tax Revenue 1,900,228 1,911,038 1,922,054 1,933,278 1,944,715 44,487 2.3
Nontax Revenue 867,963 868,352 868,752 869,165 869,589 1,627 0.2
Total Revenue 2,768,191 2,779,390 2,790,806 2,802,442 2,814,305 46,113 1.7

Tax Revenue
Based on historical assessment patterns, it is likely that the borough’s real estate tax revenue will
stagnate, while growth is anticipated in earned income taxes, expected to rise by 8.2 percent. A small
increase is also projected for local services and business privilege taxes.
Table 3-3

Total Taxes, 2025 to 2029

Estimated Projected Projected Projected Projected Change 2025-2029

2025 2026 2027 2028 2029 $ %
Real Estate Taxes -
Current 1,121,726 1,121,726 1,121,726 1,121,726 1,121,726 0 0.0
Real Estate Taxes -
Delinquent 72,927 72,927 72,927 72,927 72,927 0 0.0
Real Estate Taxes -
Delinquent County 17,079 17,079 17,079 17,079 17,079 0 0.0
Real Estate Taxes -
Interim 2,997 2,997 2,997 2,997 2,997 0 0.0
Per Capita 14,500 14,500 14,500 14,500 14,500 0 0.0
Real Estate Transfer 75,000 75,000 75,000 75,000 75,000 0 0.0
EIT 485,000 494,700 504,594 514,686 524,980 39,980 8.2
BPT 65,000 65,650 66,307 66,970 67,639 2,639 4.1
LST 46,000 46,460 46,925 47,394 47,868 1,868 4.1
Tax Revenue 1,900,228 1,911,038 1,922,054 1,933,278 1,944,715 44,487 2.3

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Borough of Mount Penn STMP 33

Non-Tax Revenue
The only growth projected for non-tax revenues is for pension state aid. Licenses and Permits
include $46,550 annually for rental property permits, which is based on the budgeted amount for
2024.
Table 3-4

Projected Non-Tax Revenues, 2025 to 2029

Change 2025-
Estimated Projected Projected Projected Projected 2029
2025 2026 2027 2028 2029 $ %
Licenses & Permits 135,900 135,900 135,900 135,900 135,900 0 0.0
Fines & Forfeits 25,200 25,200 25,200 25,200 25,200 0 0.0
Interest 1,500 1,500 1,500 1,500 1,500 0 0.0
Rents 33,000 33,000 33,000 33,000 33,000 0 0.0
PILOTS 13,653 13,653 13,653 13,653 13,653 0 0.0
State Shared Revenue 1,530 1,530 1,530 1,530 1,530 0 0.0
Pension State Aid 12,961 13,349 13,750 14,162 14,587 1,627 12.6
Foreign Fire 16,119 16,119 16,119 16,119 16,119 0 0.0
Charges for Services 23,100 23,100 23,100 23,100 23,100 0 0.0
Trash Collection 600,000 600,000 600,000 600,000 600,000 0 0.0
Insurance Reimburs. 2,500 2,500 2,500 2,500 2,500 0 0.0
Miscellaneous 2,500 2,500 2,500 2,500 2,500 0 0.0
Nontax Revenue 867,963 868,352 868,752 869,165 869,589 1,627 0.2

Expenditures
Personnel vs. Non-Personnel
Most of Mount Penn’s projected costs (80 percent) are non-employee expenditures and relate to the
services provided by the Central Berks Commission, including police and code enforcement. Non-
employee costs are likely to rise by $267,129 compared to $52,363 for employee costs.
The projections also account for $60,000 in capital spending annually from the General Fund.
Table 3-5

Personnel vs. Non-Personnel, 2025 to 2029

Change
Estimated Projected Projected Projected Projected 2025-2029
2025 2026 2027 2028 2029 $ %
Employee 452,846 465,243 478,088 491,403 505,209 52,363 11.6
Nonemployee 2,406,991 2,496,874 2,559,840 2,624,159 2,674,119 267,129 11.1
Capital 60,000 60,000 60,000 60,000 60,000 0 0.0
Debt Service 47,632 47,632 47,632 47,632 47,632 0 0.0
Total Expenditures 2,967,468 3,069,749 3,145,560 3,223,194 3,286,960 319,492 10.8

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Projected Expenditures by Type

The largest absolute growth is likely to occur in Police Services, $175,482, and Sanitation, $47,866,
which includes trash collection from a third-party. Trash collection is offset by sanitation fees
collected by the borough. Employee benefits, which include health care, are expected to experience
the largest percentage growth at 26.2 percent or $21,917.
Table 3-6

Projected Expenditures by Type, 2025 to 2029

Change
Estimated Projected Projected Projected Projected 2025-2029
2025 2026 2027 2028 2029 $ %
Direct Compensation 310,087 316,288 322,614 329,066 335,648 25,561 8.2
Employee Benefits 83,500 88,510 93,821 99,450 105,417 21,917 26.2
Pension 23,260 23,725 24,199 24,683 25,177 1,917 8.2
Workers Comp 33,000 33,660 34,333 35,020 35,720 2,720 8.2
Unemployment 3,000 3,060 3,121 3,184 3,247 247 8.2
Police Dispatch 26,000 26,624 27,263 27,917 28,587 2,587 10.0
Police Services 1,288,185 1,352,594 1,393,172 1,434,967 1,463,667 175,482 13.6
Regional Codes 140,000 147,000 151,410 155,952 159,071 19,071 13.6
Foreign Fire 16,119 16,119 16,119 16,119 16,119 0 0.0
Sanitation 577,475 589,683 601,542 613,392 625,341 47,866 8.3
Services 283,874 288,030 292,067 296,101 300,168 16,294 5.7
Supplies 24,467 24,984 25,486 25,988 26,495 2,028 8.3
Insurance 30,662 31,311 31,940 32,569 33,204 2,542 8.3
Utilities 8,555 8,736 8,911 9,087 9,264 709 8.3
Vehicle 6,644 6,784 6,920 7,057 7,194 551 8.3
Other 5,010 5,010 5,010 5,010 5,010 0 0.0
Capital 60,000 60,000 60,000 60,000 60,000 0 0.0
Debt Service 47,632 47,632 47,632 47,632 47,632 0 0.0
Total Expenditures 2,967,468 3,069,749 3,145,560 3,223,194 3,286,960 371,854 12.5

Police Expenditures
Like in Chapter 2 Historical Financials, the figures below chart the cost of police services against the
borough’s revenues. Police services are the borough’s highest cost center. Figure 3-3 shows a
widening gap between projected real estate tax revenue and projected police service costs. Figure 3-4
projects that the cost of police services will exceed the revenue for both earned income and property
taxes by 2029. Figure 3-5 shows that projected police costs become a higher percentage of total
projected revenues.

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Figure 3-3

Mount Penn Actual and Projected Real Estate Tax Revenue and Cost of Police Services

1,600,000

1,400,000

1,200,000

1,000,000

800,000 Real Estate Taxes

Police Services
600,000

400,000

200,000

0
2018 Actual 2020 Actual 2022 Actual 2024 2026 2028 2030
Estimated Projected Projected Projected

Figure 3-4

Mount Penn Actual and Projected Real Estate and Earned Income Tax Revenue and Police Service Costs, 2018 to
2030

1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0

Real Estate Taxes Current EIT Police Services

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Figure 3-5

Mount Penn Actual and Projected Net Revenue and Police Service Costs, 2018 to 2030

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

Net Revenue Police Services

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Borough of Mount Penn STMP 37

Chapter 4

Operations

Introduction
The borough of Mount Penn in prior years was overseen by a secretary-treasurer supported by
Mount Penn Borough Council committees. As of 2024, the borough structure has changed to
include the hiring of a full-time borough manager who oversees day-to-day operations and fulfills
the secretary-treasurer tasks. The manager is assisted by a full-time borough administrative
secretary.
The borough has robust codes and zoning programs anchored by a relatively recent Residential
Rental Housing Program. Considerable borough resources are allocated to these activities, including
a large percentage of the administrative secretary’s time.
Police coverage is provided by the Central Berks Regional Police Commission, a regional agreement
between Mount Penn and Lower Alsace Township that provides 24/7 coverage. A full operational
and financial evaluation of the regional department was outside the scope of this report; however, a
high-level review of the municipal agreement was included given its significant financial impact on
the borough.
The Streets Crew is responsible for a wide range of public works services, including road
maintenance, plowing, and leaf collection. The current streets foreman has made upgrades to
services and equipment and has sought and obtained numerous grants for the department. Water
and sewer service is provided by independent authorities; trash and recycling are collected by a
contracted third party.
The borough has no parks or recreation activities, nor has it engaged in many proactive economic
and community development activities other than those associated with the rental housing program.
The borough should strive for revitalization efforts that will stabilize and increase the tax base.

Governing Body
Mt. Penn Borough Council includes seven council members that are elected at-large for four-year
terms. The borough council meets twice a month with one meeting serving as a workshop. Prior to
November 2023, borough council handled day-to-day operations along with the borough secretary.
The borough is now in a transition phase, where matters previously managed by borough council
committees are being transferred to the borough manager.
As provided under the state Borough Code, the mayor is responsible for oversight of public safety,
including the borough’s police department, if one exists. In this case, the borough is served by a
regional police commission. The mayor serves on the commission as one of the borough’s three
representatives.

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Borough Council Committees

• Central Berks Regional Police Commission oversees the Central Berks Regional Police
Department. Three borough elected officials serve – the mayor, the council president and a
council member.
• The Antietam School District Liaison Committee handles relations with the school
district.
• The Codes Committee is responsible for codes, permits and the rental registration
program, including serving as the appeals body for the rental program. The borough
manager and secretary work extensively with this committee, which meets regularly; the
committee is currently discussing potential new ordinances.
• The Finance Committee previously was responsible for creating the annual budget along
with the borough secretary. The current borough manager had input on the 2024 budget
when he was hired late in 2023 and is expected to present an annual budget to council in
future years.
• The Streets Committee oversees the Public Works Department and works directly with
the streets foreman.
• The Personnel Committee handled human resources functions prior to the hiring of the
borough manager. Currently, discipline and related matters are forwarded to the committee
as needed by the borough manager.
• The Solid Waste Committee oversees trash, recycling and yard waste, including the
bidding procedure for the third-party trash hauler, and acts as the point person between the
hauler, the community and the borough in terms of complaints and related issues. Billing for
the hauler is done by Berks County on the borough’s annual property tax bills for a small
fee.
• Community Relations Committee maintains the Borough’s social media channels and
gives input on public relations matters and the website.
• The Buildings & Public Property Committee, Insurance & Pension Committee, and
Ex-Officio Committee are largely dormant.

Intergovernmental Relationships
The borough has a strong intergovernmental relationship with Lower Alsace Township that includes
the previously mentioned police commission, regional codes inspections, and a joint zoning code
and comprehensive plan. Intergovernmental relationships can assist municipalities in maintaining
and improving services at lower cost, but agreements should be reviewed regularly to ensure fairness
in cost sharing and other responsibilities.

Administration
Mount Penn’s current day-to-day operations are handled by a full-time borough manager hired
under the provisions of the Borough Code. The borough transitioned to this position from a
secretary-treasurer (supported by borough council committees) during 2023, and the manager was

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fully in place as of January 2024. The conditions of employment are outlined in the manager’s two-
year contract with the borough including duties, term, base salary, retirement benefits, paid leave,
health and other insurances, other benefits, performance evaluation and related items.
The borough manager serves as borough treasurer and handles all fiscal responsibilities. The
manager is also responsible for a myriad of other activities, including compiling borough meeting
agendas; preparing minutes; overseeing all borough departments, including codes; grant-writing;
labor relations; human resources; community relations including maintenance of the borough
website; and other tasks and projects as requested by council.
The borough manager is supported in the office by a full-time borough administrative secretary and
two part-time inspectors. The borough also has an elected taxpayer who is paid a fee of two percent
of both property tax collections and the $450/unit sanitation fee, which is billed with property taxes.
The tax collector works part-time, seasonal hours. The Berks Earned Income Tax Bureau collects
earned income, business privilege, and per-capita taxes.

Financial Management and Internal Controls

The borough uses QuickBooks for its accounts. Prior administrators, for a period of time, did not
keep complete borough records in the QuickBooks system. As a result, the current borough
manager has been working to reconcile accounts from prior years, and the 2022 audit had yet to be
completed as of the second quarter of 2024.
The borough manager is responsible for most of the financial processes including accounts payable
and accounts receivable, bank deposits and reconciliations, providing extensive monthly financial
reports to the council and preparing the annual budget. Borough checks are signed by the manager
and the president of council, who also reviews the backup information. There is no capital plan or
capital budget.
The borough manager acknowledges the difficulty of maintaining appropriate internal controls given
the small office, which is very common in boroughs of this size.

Human Resources
The manager is responsible for human resources functions. Payroll sheets are prepared by the
manager, which are sent to a third party for processing. The borough has a robust employee
handbook last updated in 2023. Employees are required to read and sign the handbook. There are
council-approved job descriptions for a borough administrator and for the administrative secretary.
The job description for borough manager exists but has not been approved by the council.
The borough manager recommends new hires with council approval. As noted previously, HR
disciplinary matters are referred to a council committee.
The borough replaced a defined benefit pension plan with a defined contribution pension plan in
2018. Regular, full-time employees are eligible for the plan, which is funded by employee and
borough contributions as well as State Aid. One active employee remains on the old defined benefit
plan, which also covers several retirees. The borough manager receives a 10 percent equivalent to
salary contribution to his personal retirement account but is prohibited from participating in the
borough’s retirement plans.

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Office Management and Facility

The borough office is open Monday through Friday, from 8 a.m. to 4 p.m. The public is free to
enter the building to reach the customer service windows for the borough and the Mount Penn
Borough Municipal Authority, which shares the building, but cannot access the actual offices. Both
customer service windows have panic buttons. The borough does not maintain cash and mostly
processes checks or money orders.
The administrative secretary handles customer service for the borough, including staffing the
window, answering the phone, opening mail and completing an initial screening of general borough
email. The administrative secretary also assists the borough manager with various human resources
duties, maintains records, and performs filing, along with related tasks. The administrative secretary
is also responsible for permit and rental license intake and processing.
The borough building is generally in good condition with adequate room including an unused space
in the basement. However, ADA access to the building is poor.

Records
Borough ordinances last underwent codification in 1995, are not digitized and show inconsistencies.
Ordinances passed between 2000 and 2013 are posted on the borough website but have not been
codified into a single searchable document.
The borough manager serves as the Right to Know Officer and maintains the borough website. The
website provides a significant amount of information for the public including various borough
forms that can be submitted electronically or downloaded and filled in.

Insurance and Professional Services

Health insurance is provided through the Teamsters Health and Welfare Fund in line with the Public
Works Department collective bargaining agreement. There are no current risk management efforts
although the borough manager is considering starting a risk management committee. The manager
works with a local broker to obtain the borough’s non-health related insurances including workers
compensation, casualty, liability, and auto. The borough does not currently participate in any pooled
insurance programs for non-health related insurance needs.

Purchasing
The borough manager serves as purchasing agent. There are no written purchasing procedures other
than complying with minimum state bidding requirements. The borough makes use of cooperative
purchasing, including local Councils of Governments (COGs) the Pennsylvania Cooperative
Purchasing Program (Co-Stars), and other state and national procurement organizations such as
Sourcewell. Most purchases involve the Public Works Department, whose roadmaster has been
proactive in obtaining grants for various projects and equipment.

Codes, Zoning and Permits

Inspections for construction, plumbing, electrical and HVAC systems are performed by two in-
house borough inspectors. Permit and license processing is completed by the borough secretary.

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Borough of Mount Penn STMP 41

One inspector is part-time; one is used as needed. Review of plans for compliance with the zoning
and building codes is overseen by third-party, Systems Design Engineering.
Reportedly, communications from Systems Design regarding the outcome of inspections to the
borough have been inconsistent. To run an effective program, it is important that all parties properly
communicate with each other to ensure that proper records are kept, outstanding issues are
promptly resolved, and all parties have the same up-to-date information, particularly when having to
answer questions from the public.
As noted previously, the borough’s website includes extensive permit information, forms that can be
downloaded, electronically fillable forms, and submission of forms as electronic attachments
The borough follows the Pennsylvania Uniform Construction Code. The borough’s website
provides information for building permits including residential and commercial permit checklists in
an electronic format and applications for building, electrical, mechanical and plumbing permits.
There is also a Frequently Asked Questions section, and users are encouraged to contact the
borough with additional questions.
Requirements for the property transfer process are outlined on another web page. Information is
included on the appropriate permits and fees, as well as various downloadable forms and an
electronic form for direct submission to the borough.
Residents are informed of the handicapped parking space policy on a third web page and can submit
the completed form as an online attachment.
The zoning web page includes the zoning ordinance, maps, and various zoning permit applications
that can be downloaded, completed and returned to the borough.
The secretary estimates that 30 percent of her time is spent processing permits.
As this study was written, the borough was considering implementation of a permit parking system
to regulate excessive on street parking near school buildings. The borough should consider the cost
of such a program prior to implementation.

Joint Code Enforcement

From 2019 through 2021, the borough employed its own full-time code enforcement officer, who
handled several tasks outside of code enforcement, including zoning and zoning permits (now
overseen by Systems Design Engineering), that employee also supplemented the borough road crew
and miscellaneous tasks.
The Joint Code Enforcement division within the Central Berks Regional Police Department was
established in 2022 for code enforcement in the member municipalities and to perform inspections
related to the new Residential Rental Housing Program, described below. The three-member
department is administered by the police chief and included the former borough code enforcement
officer position. There are two inspector positions and one administrator.
Costs were generally split 50/50 between Mount Penn and Lower Alsace, but Lower Alsace
assumed the full cost of the administrator. In 2024, a new administrator was hired, and Mount Penn

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agreed to pay up to 50 percent of those costs starting with 30 percent in 2024, 40 percent in 2025
and 50 percent in 2026.
Monthly payments for Joint Codes were $8,115 per month in 2024 or $97,380 for the year. The
borough paid an additional $2,151 per month beginning in July for the administrator position. That
would put the total cost for 2024 at $110,286.
Revenues associated with rental registration program permits were $34,857 in 2022 and $71,281 in
2023. In 2023, the borough paid $7,729 per month for Joint Codes or $92,748 for the year.
Property maintenance (code enforcement) costs identified prior to the establishment of Joint Codes
were $47,282 in 2019, $52,504 in 2020, and $62,677 in 2021. It is unclear if those amounts capture
the entire annual cost of the service before the transfer to Joint Codes.
The borough manager estimates that Mount Penn’s administrative secretary completes
approximately 85 percent of the clerical work associated with Joint Codes’ inspections of rental
properties in Mount Penn Borough.
Joint Codes was reportedly established in part on the suggestion of the police chief to take a
proactive approach to codes issues given the blight situation in the city of Reading, which directly
borders the borough.

Residential Rental Housing Program and Joint Code Enforcement

The borough has a robust Residential Rental Housing program supported by borough ordinances
approved in 2021. The program requires annual licensing, bi-annual inspections and inspections on
change in tenant occupancy. Those failing to comply are subject to penalties. Annual license fees
range from $95 to $85 per dwelling unit. Licensing is required for any rental over 30 days.
The secretary largely administers the rental housing program, ensuring that all proper documentation
has been received, including detailed information on all tenants as outlined in the ordinance. The
secretary estimated that there are 490 units now in the program and that she often spends up to 50
percent of her time on the process.
Applications must be fully completed to be processed and, according to the secretary, are often
missing information. Information is logged into an online database. Landlords must also complete a
Search Waiver Consent Form.
The rental property inspections and inspections on change in tenant occupancy are conducted by
the Joint Codes division of the Central Berks Regional Police Department.
During the implementation year for the program, all units had to undergo an initial inspection. Since
then, the number of annual inspections has decreased as only bi-annual inspections are required.
Like the situation with Systems Design, there is reportedly a lack of communication regarding the
outcomes of rental property inspections. Again, it is important to tighten communications on
inspections to maintain proper records, ensure compliance, and make sure information provided to
the public is consistent and accurate.
The Crime Free Residential Rental Housing program was enacted by both Mt. Penn Borough and
Lower Alsace Township along with the Residential Rental Housing program to control disruptive

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behavior by tenants “as there is a greater incidence of disturbances which adversely affects the peace
and quiet of the neighborhood at rental residences than at owner occupied residences,” according to
the ordinance.
Alleged acts of disruptive behavior by tenants as outlined in the ordinance are investigated by police,
who fill out a disruptive conduct form if warranted. Three documented disruptive incidents within a
12-month period can trigger action including eviction or suspension or revocation of the rental
operation license. There has been at least one eviction so far in Lower Alsace. One DCR was issued
in Mount Penn and the problem tenant moved. Language for the program must be placed in the
unit’s lease, which has slowed implementation. Officers also required training and education prior to
implementation.

Joint Zoning and Multi-Family Dwellings

The borough of Mount Penn and Lower Alsace Township have a joint zoning code that was
approved in 2011.
The joint code contains six residential zoning districts (RC and R-1 through R-5) and one mixed-use
commercial zoning district (C-1). Zoning districts RC and R-1 through R-3 can generally be
considered low-density, allowing only single-family detached homes by right, while zoning districts
R-4 and R-5 allow single-family detached and semi-detached homes as well as up to 8 townhouse
units by right and townhomes greater than 8 units by conditional use. R-5 also allows apartment
buildings by conditional use. Zoning district C-1 allows mixed-use commercial/residential
development, single-family detached and single-family semi-detached by right.
The joint zoning code appears to direct
most of the lower-density housing to
Lower Alsace and the higher-density
housing to Mt. Penn. For example, all
the R-5 zones and most R-4 zones are
located in Mt. Penn. In contrast, the
low-density RC Rural Conservation
Zoning District is located only in Lower
Alsace.
In recent years, Mt. Penn has
experienced an increase in multi-family
dwellings, which are permitted by the
joint zoning code. While increasing
density may have positive impacts on a
community, including an increased tax
base, multi-family dwellings can also
lead to an increase in code issues and
blight. The borough has sought to
address these issues through the
Residential Rental Housing Program and
its various components, with substantial

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Borough of Mount Penn STMP 44

costs to administer the program. Multi-family dwellings should be assessed appropriately to ensure
that adequate property tax revenue is supporting costs associated with denser zoning. The zoning
code should also be reexamined regularly to be sure it meets community goals and objectives.

Recommendations
• Suggested committee structure:
o Eliminate the solid waste, buildings and public property, and streets committees and
combine those responsibilities into a new Public Works Committee.
o Eliminate the insurance and pensions committee and merge responsibilities into the
Personnel Committee.
o Maintain the Finance Committee and the Code Committee.
o Maintain membership in the Central Berks Reginal Police Commission, as set by
intergovernmental agreement.
o Maintain the Antietam School District Liaison Committee. This committee was most
active when the borough and the district were handling the repercussions of flooding
to district buildings. This committee should become proactive instead of reactive and
work with the district for possible intergovernmental cooperation efforts, including
shared purchasing, plowing and other streets functions, and potential residential
recreation opportunities.
• Continue existing intergovernmental arrangements and shared services with Lower Alsace
and other communities. Agreements should be regularly reviewed and modified as necessary
to ensure that both parties are benefiting equally from the arrangement.
• In the longer term, and based on the effectiveness of these agreements, the borough might
consider a merger or consolidation with Lower Alsace or another partner. Merger and/or
consolidation is a difficult process that is prone to failure. As a result, it is important to make
sure conditions are ripe to move forward. Shared services, such as Mount Penn’s efforts with
Lower Alsace, are good first steps to take. It is also critical that officials from both
municipalities agree that it is in the best interests of the municipalities to combine. Mistrust,
rumors and poor communications among elected officials, constituent groups and/or the
public will likely result in voter rejection. The health of both communities is another
important factor, with healthier municipalities reluctant to combine with those that are more
distressed.
• As the borough transitions to a manager from a secretary/treasurer format, borough council
members should ensure that the ordinance governing the position is followed and a job
description has been approved by council.
• The borough manager provides the council with a long list of monthly reports including
General Fund checking, payroll, savings, PIB, Streetlight Fund profit and loss, accounts
payable and more. If possible, the number of monthly reports submitted to the council by
the borough manager should be reduced to only those needed to ensure responsible fiscal
management.

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Borough of Mount Penn STMP 45

• Both the borough manager and the administrative secretary are new to their positions. They
should undergo training offered by the various municipal leagues. The Pennsylvania
Municipal League provides the PATH Pennsylvania Training Hub through a contract with
the state Department of Community and Economic Development. The Pennsylvania State
Association of Boroughs also provides extensive training.
• Consider hiring a part-time accounting clerk to perform some of the fiscal tasks currently
being completed by the borough manager. The borough manager has a large volume of tasks
that should be reduced so that he can concentrate on priority issues. Additionally, an
accounting clerk would improve financial management and internal controls in the small
office. An accounting clerk could also function as the tax collector; bringing tax collection
in-house may reduce costs.
• Consider changing compensation for the tax collector from a percentage to a per bill fee.
PEL research has shown that paying a percentage of the total is considerably more expensive
than a per bill fee.
• Create a capital plan and budget. (See also the Department of Public Works
recommendations).
• The employee handbook recently went through a significant upgrade. The borough should
continue to review and update policies and procedures, the employee handbook and
borough job descriptions as needed.
• Consider upgrades to the borough municipal building including ADA compliance and
renovations of the lower level to make it more useful to borough activities.
• Consider developing purchasing guidelines.
• Develop a risk management committee and consider participation in pooled municipal
insurance programs.
• Review the costs and services provided by Joint Codes to ensure that it is cost effective and
that services fulfill borough needs.
• Consider leveraging existing staff to bring services that are currently provided by third
parties in-house.
• Ensure that Joint Codes staff has the licenses required for specific activities and inspections
that Mount Penn expects the Joint Codes department to fulfill.
• The borough has a robust rental oversight program that has been developed as the number
of rental properties and associated issues and challenges has greatly increased. The borough
should continue to review the implementation of the rental program in terms of cost and
effectiveness and make any changes as necessary.
• Review the joint zoning code to ensure that it continues to meet the needs of Mount Penn
and is not unduly burdening the municipality with code enforcement issues.
• Ensure that multi-family dwelling conversions are reassessed by the county to capture the
value of improvements for property taxes.
• Update codified ordinances and provide a link on the borough website.

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Central Berks Regional Police Commission

Introduction
Mt. Penn receives its police services through the Central Berks Regional Police Department which
includes Mt. Penn and Lower Alsace Township. The department is overseen by the Central Berks
Regional Police Commission. The department also provides contracted services to neighboring Oley
Township and St. Lawrence Borough 7. Collectively the department serves a population of over
13,000 residents across a 30 square mile region of Berks County.
The commission was reviewed in relation to the borough’s finances. An in-depth operational and
financial review of the regional department is outside the scope of this project.

Commission Agreements
The Central Berks Regional Police Commission was formed through a 1993 agreement between Mt.
Penn, Lower Alsace Township and Alsace Township. At the time, costs were divided as follows:
49.5 percent, Lower Alsace; 32.25 percent, Mt. Penn; and 18.25 percent, Alsace. The agreement
determined commission membership, budget procedures and other operational details.
Alsace Township withdrew from the arrangement in 1996. Since then, there have been additional
amendments with the most recent in 2021. As referenced earlier, the commission instituted a Joint
Codes Division for joint property maintenance code enforcement in the two remaining
municipalities of Mt. Penn and Lower Alsace.
Under the current iteration of the agreement, the commission currently includes three
representatives from each member municipality, for a total of six members. The members are
appointed annually. In odd years, all three township representatives and two borough
representatives are voting members. In even years, all three borough representatives and the two
township representatives are voting members.
Currently, Mt. Penn and Lower Alsace split commission costs 50/50. The commission must provide
an annual budget for the regional department to the municipalities for approval following the
October commission meeting. If no budget is provided, the municipalities can draft a budget or
remove and replace the commission members.
Written notice to the commission of action on the budget must be provided by Oct. 31. If a
municipality disapproves, it must state the reasons and identify objectionable line items. If there is
no specific disapproval by either party by Oct. 31, the commission budget is considered approved.

7
Oley Township receives 24/7 coverage that includes one dedicated officer for $765,044 in 2023. The five-year
contract ends in 2027 at a cost of $914,287 annually. St. Lawrence Borough receives 24/7 coverage but does not have a
dedicated officer. The contract cost in 2023 was $356,866. The final year of the five-year agreement in 2025 is $380,434.
For both municipalities, police investigations related to homicide, suspicious death, aggravated assault and other more
serious crimes are subject to a fee.

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In the case of disapproval, the commission’s revised budget must be submitted by Nov. 30. The
municipalities can submit their own budgets if a revised budget is not produced. If there is still no
consensus, the prior year’s budget remains in effect plus increases mandated by collective bargaining
agreements until a new budget is negotiated.
The agreement grants significant powers to the commission that otherwise would be held by the
municipalities including the ability to own, lease and sell real property; collective bargaining; the
ability to enter into a contract; and hiring of the police chief, who is responsible for day-to-day
commission operations.
There is a provision for arbitration if there are unresolved disagreements among the municipalities
and the commission.

Recommendations
• Seek a Strategic Management Planning Program Phase II grant to conduct a more robust
review of the finances, operations and collective bargaining agreement of the Central Berks
Regional Commission and Regional Police Department. The review should include an
analysis of departmental costs related to the size of the population served. The borough may
be able to obtain similar assistance through DCED’s regional police programs.
• Establish improved communications between the commission and the member
municipalities. If not already occurring, member municipalities should be provided with
regular updates on CBC activities.
• Use a labor attorney when conducting collective bargaining agreement negotiations with the
Central Berks Regional Police Department.
• Ensure that there is proper input by both municipalities when determining contracts or new
member municipalities for the commission including the formula to determine contract
pricing. (See Appendix for contract pricing suggestions)
• Review the current distribution method by the member municipalities to determine if the
method captures the current situation or if it should be changed. Such reviews should
happen at regular intervals. (See Appendix for cost distribution method suggestions).

Public Works
The Public Works Department (Streets Crew) in Mount Penn has two full-time employees — a
streets foreman and a laborer/mechanic. The department is responsible for pothole repair, lawn
mowing, street sweeping, herbicide spraying, line painting, leaf collection, winter maintenance and
snow removal, and similar tasks.
A third-party contractor provides refuse and recycling to residents. Billing for this service is included
annually in residential tax bills. The borough has utilized DEP grants to help subsidize recycling
efforts, including the purchase of leaf collection equipment.
Sanitary sewer service is provided by the Antietam Valley Municipal Authority (AVMA). The
municipal authority was created by the Borough of Mt. Penn and Lower Alsace Township in
1982 and owns and maintains the borough’s sewer collection and conveyance system, a pump

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station, and a wastewater treatment plant. The Public Works Department assists the authority
with maintenance on an as-needed basis. Billing for services is done directly by the authority.
The department’s current garage is owned by AVMA and leased by the borough. A new DPW
garage funded by a grant is being planned that will include updated facilities such as an office
and space for eating. The grant will also fund renovations at the borough municipal building and
the purchase of a new truck.
Water service is provided by the Mt. Penn Borough Municipal Authority (MPBMA). Water is
sourced from groundwater wells. As with AVMA, the Mt. Penn Public Works Department assists
the Authority with maintenance on an as-needed basis. Billing for services is done directly by the
Authority.
The borough is not responsible for compliance with MS4 stormwater provisions and has no
stormwater discharges into rivers or creeks. The department maintains the borough’s stormwater
lines through inspections, cleaning out leaves and related activities. The streets foreman has
conducted GIS mapping of the storm sewers, inlets are labeled, and the lines are regularly inspected.
Flushing is completed, when necessary, with the help of the authorities. The borough experiences
minor flooding due to undersized inlets.
Paving is outsourced to third-party contractors. The borough uses limited funding through Liquid
Fuels Funds and grants to complete paving projects, but additional resources are needed to maintain
all borough streets in good condition. Line painting is done in-house by the borough crew, as is
pavement patching and crack sealing, all with equipment owned by the borough and obtained
mostly through grants.
Road conditions are a main borough service and a key component to maintaining and improving the
tax base. Residents and businesses look for well-maintained roads as they make decisions about
remaining or moving into the community.
To improve borough roads, the borough manager seeks to establish a schedule of maintenance and
improvement to its road infrastructure. The plan is to schedule every borough road for maintenance
or improvement based on a balance of five factors: condition, use intensity, previous work, location,
and cost of improvements.
Street sweeping is also done in-house but with rented equipment. Sweeping is done once a year in
the spring.
Herbicide spraying is done twice a year by the streets foreman, who is licensed by DEP. The
department cuts grass at several borough properties. However, the borough has no parks or
recreational facilities that require mowing or other maintenance.
Borough vehicles are repaired by the in-house mechanic whenever possible. The mechanic also
works on police vehicles for the Central Berks Regional Police Department as available. The
borough is reimbursed by the commission for that work.
The roadmaster has worked to upgrade technology where possible. Flip phones have been replaced
with more modern versions. The department has a shared iPad, laptop and printer.

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Recommendation
• Ensure that the Public Works Department is adequately supported even if grants become
less available to supplement paving, recycling, and other work.
• Consider hiring a part-time seasonal worker to assist with activities like pothole patching and
similar tasks.
• Develop a strategic plan for street and road maintenance and improvements based on a
balance of five factors: condition, use intensity, previous work, location, and cost of
improvements.
• Consider upgrades to computer software and hardware consistent with public works tasks.
• Recycling is not required for communities with populations under 5,000. The borough
should review costs associated with participation in the current recycling program.

Economic and Community Development

While the borough has extensive programs for codes and zoning, there is little in the way of support
for proactive economic and community development activities such as the Main Street or Elm Street
approach. The borough also lacks parks or any type of recreation program, although it sits in
between two nature preserves, Neversink Mountain and Mount Penn.
Ensuring that the borough is a nice place to live with attractive neighborhoods and amenities such as
parks and recreation opportunities is an important step in maintaining the tax base. To begin the
process, the borough should complete new comprehensive plan to broadly address future growth
and development including housing.
The borough could consider an individual plan or another joint plan with Lower Alsace; however, a
joint plan should acknowledge issues like zoning that might have arisen from the current joint plan.
The new comprehensive plan should consider revitalization of Perkiomen Avenue, a commercial
corridor with various businesses including convenience stores, small shops, and professional offices.
The state’s Main Street Matters (MSM) program is designed to support downtown cores and
surrounding neighborhoods with tools to create healthy, vibrant, and welcoming communities.
Funding is available to support revitalization efforts in planning, business support, aesthetic
improvements, and the increase of safety and security 8.
Communities may wish to consider designation through the MSM program as a Main Street or Elm
Street. Designation is an opportunity for targeted investment and development including the
identification of specific needs for investment and/or development and the design and
implementation of a strategy to address those needs 9.
Main Street Matters Guidelines
Main Street Matters Program Designations

8 [Link]
9 Ibid

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The Pennsylvania Downtown Center works closely with local communities on revitalization efforts
in downtowns and in neighborhoods and has a close relationship with DCED. The web site
[Link] has a large inventory of resources and information.
The Housing Alliance of Pennsylvania is another resource for proactive activities and the latest
information specifically regarding housing and blight. The state has been particularly active in
passing legislation to assist communities with challenges such as absentee landlords. In general, the
borough should remain up to date on current and new legislation regarding housing and blight since
it is a community priority.
Given the borough’s low capacity to fund suggested development opportunities, the borough should
look to community volunteers to assist with these efforts. In addition to looking to community
leaders, the borough should consider reaching out to the local business community for volunteers.
The borough manager could potentially take a more active role here if the borough decides to hire a
part-time accounting clerk.
In terms of potential funding for revitalization projects, the borough should also consider funding
sources such as DCED’s Multimodal Transportation Fund and PennDOT’s Multimodal Program.
The Department of Conservation and Natural Resources has numerous grants for development,
planning and feasibility studies related to parks, recreation and conservation efforts such as
swimming pool feasibility studies, park master plans and land acquisition. As part of its economic
and community development strategy, the borough should consider using DCNR grant
opportunities and resources.

Nature Preserves
Because of its proximity to two large scale nature preserves, Mount Penn Preserve and Neversink
Mountain Preserve, Mount Penn should strongly consider activities tied to the outdoor recreation
economy concept.
The state recently opened an Office of Outdoor Recreation within the state Department of
Conservation and Natural Resources because of the economic impact from outdoor recreation,
which contributes $17 billion annually to Pennsylvania’s economy.
Components of the outdoor economy include 10:

• Businesses, including producers of outdoor clothing, equipment, and vehicles; providers of

experiences; and professionals that design and build, manage, communicate about, and serve
outdoor recreation
• Contributions that outdoor recreation and places make to broad based community and
economic development by improving community quality of life, retaining Pennsylvania
youth and students in the Commonwealth, and attracting a highly competitive and mobile
workforce

10 [Link]

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• Public health and gray infrastructure cost savings generated by improved wellbeing through
participation in outdoor recreation and the green infrastructure provided by the conservation
of recreational lands and waters.

Mount Penn is one of several

municipalities in the Mount Penn
Preserve Partnership Council of
Governments (MP3 COG). The COG
recently held public meetings on the
preserve. Concerns raised by the public
were safety, lack of trail maps, lack of
sufficient signage and lack of parking.

The Neversink Mountain

Preserve under the oversight of
Berk Nature, a nonprofit
organization, is not far from
Perkiomen Avenue. Berks
Nature recently conducted a trail
assessment of Neversink to make
trail improvements.

Recommendations
• Develop a new comprehensive plan either alone or with Lower Alsace.
• Consider Main Street Matters revitalization activities including improvements to Perkiomen
Avenue such as facades, lighting, streetscapes and related items.
• Seek volunteers from the business and civic leadership community to assist with activities.
• Make use of state funding opportunities; make use of this report as needed to serve as a
planning document.
• Consider the development of parks and recreation opportunities, potentially in cooperation
with the school district or other partners.
• Use strategies consistent with the outdoor recreation economy to strengthen the tax base.

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• Continue intergovernmental activities with the MP3 COG including improvements to the
Mount Penn Preserve using state grant programs.
• Support activities by Berks Nature to improve the Neversink Mountain Preserve.

Collective Bargaining
The two Street Crew employees are members of the Teamsters Union Local 429 and are covered
under a Collective Bargaining Agreement (CBA).
The CBA sets forth a generous amount of time off for these employees. Employees can get five
weeks of vacation after 16 years of service. Employees get 13 holidays, including Good Friday,
Columbus Day and President’s Day. Employees get 10 sick days and three personal days.
With only two employees, the borough needs them to be working. The borough could negotiate less
time off for new hires, but this would not help much with only two employees. The borough could
also attempt to pay the employees a little more in exchange for taking less time off. Addressing this
issue should be one of the borough’s primary objectives in collective bargaining.
Health Insurance is provided through the Central Teamsters Health and Welfare Fund. Employees
contribute 5 percent toward their health insurance. The insurance includes dental, vision and short-
term disability. The rates appear to be reasonable, given the market.
The employee contribution of 5 percent is low. The borough should attempt to negotiate a higher
contribution, 20 percent is certainly not unreasonable. There is also a potential problem in that the
rates are completely controlled by the Teamster Fund. The Addendum to the CBA states, “Effective
January 1, 2025, contributions due January 15, 2025, for benefit coverage effective February 1, 2025
– at rates to be determined by the Central Teamsters Health and Welfare Fund.” Perhaps the
borough could negotiate that, if the Teamster rates increase by more than 5 percent, the employees
will contribute half of any increase over 5 percent.
Concerning pension benefits, one employee is covered by the defined benefit plan, but the second
employee is covered by a new defined contribution plan. The CBA is silent concerning any defined
contribution plan and would appear to indicate that both employees are covered by the union
defined benefit plan. A review of the documents concerning both plans did not clarify this issue.
The borough should address this in collective bargaining to make sure that there is no confusion or
duplication of benefits concerning this issue.
The Employee Handbook for the borough appears to be in good order, having been adopted on
December 16, 2022. It is interesting to note that non-union employees only get 12 holidays and two
personal days. They must also have 25 years of service before they get five weeks of vacation.
Again, perhaps the borough could negotiate lowering the amount of paid time off for union
employees based upon the amount of paid time off for non-union employees.

Recommendations
• Negotiate less time off.
• Negotiate a higher contribution for health insurance.

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• Clarify pension plan agreements.

Technology
The increasing availability of technology solutions to support municipal government offers
opportunities for the borough to explore. All technology should be assessed to determine whether it
creates efficiency and increases productivity. For example, Microsoft Excel has been a significant
boon to municipal finance. It is now considered essential, whereas before its release, calculations for
the budget and finances were done on paper and by hand. Software may be expensive, so it should
be assessed at a staff level and by the council to determine whether the software or technology
meets the stated purpose of productivity and efficiency.
In addition, technology carries certain risks, including expense, security, proper use, etc. These
should be reviewed regarding insurance coverages to avoid exposure to hacking, phishing, etc., and
employee policies that create clear expectations for appropriate technology use.

Recommendations
• Review software that will integrate data maintained by the borough into a single database
and leverage that tool to review data spatially and maintain current databases for properties,
permits, rentals, and code enforcement. Explore tools that will assist with inventorying
infrastructure, including stormwater infrastructure, roads, and signs, for future capital
planning and project management.
• Review appropriate finance, planning, payroll, and human resource technology solutions for
long-term maintenance of important records, future planning, and proficient delivery of key
duties like payroll.
• The borough manager and borough council should regularly identify and address the skills
gap for finance and accounting software to ensure that municipal records are appropriately
maintained to prevent neglect.
• Maintain current and effective information technology tools (phones, laptops, computers,
servers, etc.) to meet staff expectations and integrate these tools into the capital planning
process.
• Review public access technology tools to improve service delivery for residents utilizing
borough services, including emergency communication tools, appropriate AI integrations,
service kiosks, online applications, and online payment methods.

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Chapter 5

Observations and Recommendations

Introduction

Mount Penn Borough faces challenges ahead as its flat revenues are unlikely to keep pace with
growing expenditures. Meanwhile, Mount Penn has a strong intergovernmental relationship with
Lower Alsace Township that has the potential of leading to a consolidation or merger of the
communities under the correct circumstances. The challenge for Mount Penn is to strive for fiscal
health as it determines what path to take.

Mount Penn and Lower Alsace share police, code enforcement and a zoning map. The Central
Berks Regional Police Department, under the direction of the Central Berks Regional Police
Commission, is a robust operation providing 24/7 services to the two commission municipalities
plus contracted services to two additional municipalities.

Expenditures for joint codes under the commission appear to exceed prior borough costs for those
services, but the division has the potential to take on more work that is currently done by Mount
Penn in-house, particularly by third-party contractors.

Under joint zoning, it appears that Mount Penn’s rental units and multifamily dwellings have
significantly increased, so services provided by joint codes, particularly regarding the rental
registration program, are necessary.

Mount Penn and Lower Alsace have chosen to be proactive in terms of public safety to avoid issues
that have challenged the city of Reading, which borders Mount Penn. While that is commendable, it
does come with a corresponding cost that also must be considered when making decisions.

Mount Penn will need to raise property taxes for additional revenue as expenditures increase. There
is little room to cut in the borough’s in-house operations. The borough recently moved to a borough
manager system that adds costs but brings greater professional management to the community.

The borough manager, for instance, can take a more proactive approach to controlling costs like
insurances and seeking grant money that can reduce costs and provide for capital improvements. In
addition, the Mount Penn administrative and public works staff remain small at only four full-time
employees total.

While Mount Penn has a voice in commission police and joint code services, the borough cannot
unilaterally determine expenditures for those services. In addition, there may be a funding inequity in
how costs are determined and divided that should be explored.

To gain increased revenue flexibility, one option for the borough is develop and adopt a home rule
charter. This would allow the borough to raise other taxes, like earned income, that tend to grow
more naturally year-over-year and do not impact seniors on retirement income or businesses. The

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downside is that home rule is a complex, expensive process that takes 18 to 20 months and does not
guarantee results since residents must ultimately approve the charter.

Mount Penn could also seek to combine with Lower Alsace, which would result in many advantages,
including broadening the tax base and changing from two government bodies and a commission to
only one governing body. A merger or consolidation with Lower Alsace should not be viewed as a
way to save money. Rather, it should be seen as a way to maintain and potentially enhance existing
services and to curtail long-term expenditure growth.

Like home rule, a merger/consolidation is a difficult process that may not ultimately be successful
and in fact was tried and failed between the two communities 10 years ago.

The first step would be to conduct a merger/consolidation study that examines the finances and
operations of both municipalities and contemplates how the two could be combined. Funding for a
study is available under STMP Phase II and the Municipal Assistance Program (MAP).

Mount Penn could also pursue home rule for the borough as a first step and then contemplate a
merger/consolidation with Lower Alsace under that home rule charter. Under this model, the
borough could concentrate on improving its finances through home rule and consider a merger after
achieving other local priorities.

Regarding current in-house operations, the borough is continuing to transition to a borough

manager and fleshing out the responsibilities of that position. The borough has had past success
with grant writing in public works and should continue those activities under the borough manager.
The borough should also take advantage of training, particularly for the borough manager and
administrative secretary positions.

Among other duties, the borough manager should take an active role in community and economic
development that helps to stabilize the tax base. The state has significantly increased funding for
programs like the new Main Street Matters, the Municipal Assistance Program (MAP), the
Neighborhood Assistance Program (NAP) and related tax credits programs, and the PA Broadband
Authority, among others, to assist with this initiative.

Mount Penn has opportunities to plug into the outdoor recreation economy, which is being heavily
supported at the state level by the state Department of Conservation and Natural Resources. The
borough is located between two popular nature areas and is part of the Council of Governments
that oversees the Mount Penn nature preserve.

Mount Penn should consider the outdoor recreation economy while revitalizing the commercial
corridor of Perkiomen Avenue. In addition to state resources, there are non-profits like the Pa
Downtown Center that support Main Street and Elm Street type revitalization activities.

A large portion of the borough’s public safety operations are outsourced to the police commission,
which was not reviewed since intergovernmental operations are not within the scope of this report.
Given its impact on the budget, the borough should seek a review of the commission’s finances and

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operations. The proactive review should include the intergovernmental agreement itself since
situations change over time.

Otherwise, the borough should ensure that all parties are following the related intergovernmental
agreements, and that communication occurs amongst all parties regarding expenditure increases,
which heavily impact Mount Penn’s budget. A lack of communication, particularly around cost, has
led to issues in other regional departments including disbandment.

In addition to these recommendations, the report has many more initiatives for the borough to
consider, from updating policies and procedures to strengthening fiscal management.
The Pennsylvania Economy League advises the Borough to consider implementing the
recommended initiatives as outlined in the remainder of this chapter. Recommendations and target
dates for initiatives are categorized by immediate, short term (one to two years) and long term (two
years or more). Budget impact refers to the General Fund unless otherwise noted. Please see
individual chapters in this report for additional details regarding recommendations.
While various initiatives have already been highlighted, PEL encourages the Borough to seek
Strategic Management Planning Program Phase II funding for any initiatives as
appropriate. Certain initiatives will require funding that might be obtained through STMP Phase II
or other state grants and programs.

Finance
FIN 01 Implement Plan Initiatives
Target Date Immediate
Responsible Party Borough Manager
Budget Impact Improved fiscal management

Implement plan initiatives that impact expenditure reductions or increase productivity. Throughout
the plan, the borough should undertake those initiatives and recommendations as policy and
operational priorities, particularly those that will have near term expenditure reductions or
operational changes leading to enhanced efficiency.

FIN 02 Follow Government Finance Officers Association (GFOA) best practices

Target Date Immediate
Responsible Party Borough Manager
Budget Impact Improved Fiscal Management

The Government Finance Officers Association (GFOA), through its officially adopted Best
Practices endorsement of National Advisory Council on State and Local Budgeting (NACSLB)
budget practices and the GFOA Distinguished Budget Presentation Award Program, has recognized
financial policies as an essential part of public financial management11.

11 [Link]

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From the GFOA — Financial policies are central to a strategic, long-term approach to financial management.
Some of the most powerful arguments in favor of adopting formal, written financial policies include their ability to help
governments:

• Institutionalize good financial management practices.

• Clarify and crystallize strategic intent for financial management.
• Define boundaries.
• Support good bond ratings and thereby reduce the cost of borrowing.
• Promote long-term and strategic thinking.
• Manage risks to financial condition.
• Comply with established public management best practices.
Please see the Appendix for GFOA recommendations concerning financial best practices and
adoption of financial policies.
FIN 03 Consider adoption of a General Fund balance policy
Target Date Immediate
Responsible Party Borough Council/Borough Manager
Budget Impact Improved Fiscal Management

The borough should consider adopting a fund balance policy. Fund balance policies can help a
municipality meet several stated goals including but not limited to meeting seasonal cash flow
requirements and securing investment-grade credit ratings.
Fund balance policies typically identify appropriate minimum (and maximum) fund balance levels
for a given fund, how the balance may be used (including limits on its use to balance a budget, or
assignment to fulfill local grant matches), how to replenish fund balance when used, and how excess
fund balance can be allocated when available. The borough should strive for a fund balance equal to
two to three months of expenditures.
FIN 04 Consider rolling per capita tax into property tax
Target Date Immediate
Responsible Party Borough Council/Borough Manager
Budget Impact Improved Fiscal Management

The borough levies a $10 per capita tax, which results in approximately $13,000 in revenue. Per
capita revenue is difficult to collect. One option is to eliminate the per capita tax and increase the
General Purpose millage by approximately 0.6 mills to capture the per capita revenue.
FIN 05 Ensure that trash fees cover cost
Target Date Immediate
Responsible Party Borough Council/Borough Manager
Budget Impact Improved Revenue

The collection of trash fee revenue consistently has been less than the cost of the third-party
contract. Trash fees should be set to cover the entire cost of the contract plus any administrative
costs the borough incurs by collecting the trash fees.

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Continue to work with Lower Alsace Township through current intergovernmental

FIN 06 cooperation agreements
Target Date Immediate
Responsible Party Borough Manager
Budget Impact Expenditure reduction and/or revenue generation

Mount Penn has an extensive intergovernmental relationship with Lower Alsace Township through
the Central Berks Regional Commission, mutual zoning and a joint comprehensive plan. Mount
Penn should continue to work with Lower Alsace in these areas and expand as appropriate.

However, agreements should be monitored regarding cost and other considerations as situations can
change over time. It is imperative that the lines of communication remain open between the
municipalities and that all parties follow agreements as written.

To improve communication, the borough managers of the two municipalities should consider
scheduling regular meetings to discuss common concerns and ensure clear communication between
the communities. The president of each governing body should also attend.
Review and update all in-house licenses, permits and related fees to ensure the
FIN 07 cost of services related to them is covered.
Target Date Short term
Responsible Party Borough Manager
Budget Impact Revenue

The borough imposes permits, licenses and fees for various activities including building, zoning,
street cutting and sanitation services. As borough costs increase it is important to periodically review
and update fees related to the services provided to ensure there is a full cost recovery, otherwise
general tax revenue must be used to offset the difference.

As a best practice, a fee schedule resolution would be passed by the council annually even in
instances where fees are held constant from year to year.

Seek a review and update of all CBC licenses, permits and related fees to ensure
FIN 08 the cost of services related to them is covered.
Target Date Short term
Responsible Party Central Berks Regional Police Commission/Borough officials
Budget Impact Revenue

Similarly, the borough should urge the police commission to review licenses, permits and related
fees from time to time to ensure that those costs are appropriate as described in FIN X.
FIN 09 Develop a Capital Improvement Plan and Budget
Target Date Short Term
Responsible Party Borough Manager and Stakeholders
Budget Impact Improved fiscal management

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)
Capital Improvement Program (CIP).

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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 for the upcoming year 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 improvement financing 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.
FIN 10 Consider health care options
Target Date In conjunction with collective bargaining
Responsible Party Borough Manager
Budget Impact Potential lower expenditures

Health insurance has increased at a significant rate. The borough currently uses a Teamsters health
plan through the public works union. The borough should monitor these costs and seek less
expensive insurance if warranted through a broker or an insurance cooperative like the Pennsylvania
Municipal Health Insurance Cooperative. This might require collective bargaining with public
works. The borough should be mindful that it might need to weather bad experience years to gain
the benefits from a cooperative during years of good experience.
FIN 11 Increase Real Estate Tax Rate as Necessary to Ensure Balanced Budgets
Target Date As needed
Responsible Party Borough Council
Budget Impact Revenue

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To the extent that the preceding revenue initiatives are not accomplished or are insufficient to
eliminate the borough’s projected annual budget deficits, the borough should increase the real estate
tax millage to offset any remaining deficits.

FIN 12 Consider a merger or consolidation study with Lower Alsace Township

Target Date Short Term
Responsible Party Borough Council/Borough Manager
Budget Impact Cost control; maintain services; improve services

In the near term, and based on the effectiveness of these agreements, the borough might consider a
merger or consolidation with Lower Alsace or another partner. Merger and/or consolidation is a
difficult process that is prone to failure. As a result, it is important to make sure conditions are ripe
to move forward. Shared services, such as Mount Penn’s efforts with Lower Alsace, are good first
steps to take.

It is also critical that officials from both municipalities agree that it is in the best interests of the
municipalities to combine. Mistrust, rumors and poor communications among elected officials,
constituent groups and/or the public will likely result in voter rejection. The health of both
communities is another important factor, with healthier municipalities reluctant to combine with
those that are more distressed.

The first step is to undergo a merger/consolidation study, which can be funded by STMP Phase II
or MAP.
FIN 13 Consider Home Rule
Target Date Long term
Responsible Party Borough Council/Borough Manager
Budget Impact Tax flexibility

Adoption of home rule can provide revenue flexibility by broadening the borough’s tax base. Home
rule 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. Home rule also gives municipalities the opportunity to
select a government structure that best fits community needs.

As a home rule municipality, the borough could take a more balanced approach to taxes by using a
mixture of changes to the three main 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
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

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Development’s Home Rule in Pennsylvania manual. The manual is available for download at
[Link]/library under Local Government/Handbooks and Guides.

Administration
ADMIN 01 Consider changes to Borough Council Committee Structure
Target Date Immediate
Responsible Party Borough Council
Budget Impact N/A

Suggested committee structure:

• Eliminate the solid waste, buildings and public property, and streets committees and
combine those responsibilities into a new Public Works Committee.
• Eliminate the insurance and pensions committee and merge responsibilities into the
Personnel Committee.
• Maintain the Finance Committee and the Code Committee.
• Maintain membership in the Central Berks Reginal Police Commission, as set by
intergovernmental agreement.
• Maintain the Antietam School District Liaison Committee. This committee was most active
when the borough and the district were handling the repercussions of flooding to district
buildings. This committee should become proactive instead of reactive and work with the
district for possible intergovernmental cooperation efforts, including shared purchasing,
plowing and other streets functions, and potential residential recreation opportunities.
ADMIN 02 Produce Comprehensive Monthly Financial Reports for Council
Target Date Immediate
Responsible Party Borough Manager
Budget Impact Improved fiscal management

The borough manager provides the council with a long list of monthly reports including General
Fund checking, payroll, savings, PIB, Streetlight Fund profit and loss, accounts payable and more. If
possible, the number of monthly reports submitted to the council by the borough manager should
be reduced to only those needed to ensure responsible fiscal management:

Budget Comparison Report – Report that compares budgeted revenues and expenditures to actual
revenues and expenditures for each category and line item for each of the funds.

• Summary Balance Sheet Report – Report that shows the assets, liabilities, and fund
balance for each municipal fund.
• Cash Flow Analysis – Report that compares cash flow in the current fiscal year to
previous year(s) and identifies what the actual availability of cash is estimated to be by
month and at year’s end.

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ADMIN 03 Provide training for administrative employees

Target Date Immediate
Responsible Party Borough Manager
Budget Impact Improved fiscal management

Both the borough manager and the administrative secretary are new to their positions. They should
undergo training offered by the various municipal leagues. The Pennsylvania Municipal League
provides the PATH Pennsylvania Training Hub through a contract with the state Department of
Community and Economic Development. The Pennsylvania State Association of Boroughs also
provides extensive training.
ADMIN 05 Create and approve job descriptions
Target Date Immediate
Responsible Party Borough Manager
Budget Impact N/A

As the borough transitions to a manager from a secretary/treasurer format, borough council

members should ensure that the ordinance governing the position is followed and a job description
has been approved by council.
ADMIN 04 Monitor the Rental Housing Registration Program
Target Date Short Term
Responsible Party Borough Manager
Budget Impact Fiscal management; revenue

The borough has a robust rental oversight program that has been developed as the number of rental
properties and associated issues and challenges has greatly increased. The borough should continue
to review the implementation of the rental program in terms of cost and effectiveness and make any
changes as necessary. See also FIN 07 and 08.
ADMIN 06 Consider part-time accounting assistance
Target Date Short Term
Responsible Party Manager and Borough Council
Budget Impact Fiscal management

Consider hiring a part-time accounting clerk to perform some of the fiscal tasks currently being
completed by the borough manager. The borough manager has a large volume of tasks that should
be reduced so that he can concentrate on priority issues. Additionally, an accounting clerk would
improve financial management and internal controls in the small office. An accounting clerk could
also function as the tax collector; bringing tax collection in-house may reduce costs.

ADMIN 08 Consider borough building upgrades

Target Date Short Term
Responsible Party Borough Manager
Budget Impact Expenditure; seek grants

Consider upgrades to the borough municipal building including ADA compliance and renovations
of the lower level to make it more useful to borough activities.
ADMIN 09 Develop Purchasing policies

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Target Date Short Term

Responsible Party Borough Manager
Budget Impact Improved fiscal management

Consider developing purchasing guidelines.

ADMIN 10 Reduce use of third-party contractors
Target Date Short Term
Responsible Party Borough Manager
Budget Impact Expenditure reduction

Consider leveraging existing staff to bring services that are currently provided by third parties in-
house.
ADMIN 11 Review Joint Codes
Target Date Short Term
Responsible Party Borough Manager
Budget Impact Fiscal management

Review the costs and services provided by Joint Codes to ensure that it is cost effective and that
services fulfill borough needs. Ensure that Joint Codes staff has the licenses required for specific
activities and inspections that Mount Penn expects the Joint Codes department to fulfill.
ADMIN 12 Seek lower insurance costs
Target Date Short Term
Responsible Party Borough Manager
Budget Impact Expenditure reduction

Develop a risk management committee and consider participation in pooled municipal insurance
programs.
ADMIN 13 Review tax collector pay
Target Date In conjunction with Tax Collector Election
Responsible Party Borough Manager
Budget Impact Cost control

Consider changing compensation for the tax collector from a percentage to a per bill fee. PEL
research has shown that paying a percentage of the total is considerably more expensive than a per
bill fee. The rate of pay must be changed by Feb. 15 in the year that the tax collector is elected.
ADMIN 14 Continue to monitor zoning issues
Target Date In conjunction with a new comprehensive plan
Responsible Party Borough Manager
Budget Impact Fiscal management; revenue potential

Review the joint zoning code to ensure that it continues to meet the needs of Mount Penn and is
not unduly burdening the municipality with code enforcement issues. Ensure that multi-family
dwelling conversions are reassessed by the county to capture the value of improvements for
property taxes.
ADMIN 15 Update employee manual as necessary
Target Date As needed

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Responsible Party Borough Manager

Budget Impact Improved fiscal management

The employee handbook recently went through a significant upgrade. The borough should continue
to review and update policies and procedures, the employee handbook and borough job descriptions
as needed.

ADMIN 16 Codification
Target Date Long Term
Responsible Party Borough Manager
Budget Impact STMP Phase II match

The borough’s codification of ordinances has not been updated since 2000. The borough should
update its codification and place it on the borough’s website. Seek STMP Phase II funding for this
initiative.

Public Works
PW 01 Adequately Support Public Works
Target Date Ongoing
Responsible Party Borough Council
Budget Impact Expenditure

Ensure that the Public Works Department is adequately supported even if grants become less
available to supplement paving, recycling, and other work.
PW 02 Consider a part time employee
Target Date As needed
Responsible Party Borough Manager; Road Foreman
Budget Impact Expenditure

Consider hiring a part-time seasonal worker to assist with activities like pothole patching and similar
tasks.

PW 03 Develop a Road Maintenance Plan

Target Date In conjunction with a capital improvement plan
Responsible Party Borough Manager; Road Foreman
Budget Impact Grant match

Develop a strategic plan for street and road maintenance and improvements based on a balance of
five factors: condition, use intensity, previous work, location, and cost of improvements.
PW 04 Review recycling
Target Date Short Term
Responsible Party Borough Council/Borough Manager/Road Foreman
Budget Impact Expenditure reduction

Recycling is not required for communities with populations under 5,000. The borough should
review.

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Central Berks Regional Police Department

CBC 01 Improve communications within the Central Berks Regional Police Commission
Target Date Immediate
Responsible Party Borough Commission Members
Budget Impact N/A

Establish improved communications between the commission and the member municipalities. If it
is not already occurring, member municipalities should be provided with regular updates on CBC
activities.

CBC 02 Municipal Input for the Central Berks Regional Police Department
Target Date Immediate
Responsible Party Borough Commission Members
Budget Impact Expenditure control

Ensure that there is proper input by both municipalities when determining contracts or new
member municipalities for the commission including the formula to determine contract pricing.

CBC 03 Conduct a review of the Central Berks Regional Police Department.

Target Date Short Term
Responsible Party Borough Commission Members; Borough Manager
Budget Impact Grant match

Seek a Strategic Management Planning Program Phase II grant to conduct a more robust review of
the finances, operations and collective bargaining agreement of the Central Berks Regional
Commission and Regional Police Department. The review should include an analysis of
departmental costs related to the size of the population served. The borough may be able to obtain
similar assistance through DCED’s regional police programs.

CBC 04 Distribution Method for the Central Berks Regional Police Department
Target Date Short Term
Responsible Party Borough Commission Members
Budget Impact Cost of manager

Review the current distribution method by the member municipalities to determine if the method
captures the current situation or if it should be changed. Such reviews should happen at regular
intervals. (See Appendix A for a suggested cost distribution method).

CBC 05 Collective Bargaining for the Central Berks Regional Police Department
Target Date In conjunction with collection bargaining
Responsible Party Borough Commission Members
Budget Impact Expenditure control.

Use a labor attorney when conducting collective bargaining agreement negotiations with the Central
Berks Regional Police Department. A labor attorney has specialized training in the employee
relations process and municipal law and is more aware of recent trends and developments in labor
law that can help maintain or reduce expenditures.

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Technology

TECH 01 Review Software

Target Date Immediate
Responsible Party Borough Manager
Budget Impact STMP Match

Review software that will integrate data maintained by the borough into a single database and
leverage that tool to review data spatially and maintain current databases for properties, permits,
rentals, and code enforcement. Explore tools that will assist with inventorying infrastructure,
including stormwater infrastructure, roads, and signs, for future capital planning and project
management.
TECH 02 Review technology solutions
Target Date Immediate
Responsible Party Borough Manager
Budget Impact STMP Match

Review appropriate finance, planning, payroll, and human resource technology solutions for long-
term maintenance of important records, future planning, and proficient delivery of key duties like
payroll.
TECH 03 Address Skills Gap
Target Date Immediate
Responsible Party Borough Manager
Budget Impact Potential STMP Phase II match

The borough manager and borough council should regularly identify and address the skills gap for
finance and accounting software to ensure that municipal records are appropriately maintained to
prevent neglect.
TECH 04 Maintain Current Effective Technology
Target Date Immediate
Responsible Party Borough Manager
Budget Impact Potential STMP Phase II match

Maintain current and effective information technology tools (phones, laptops, computers, servers,
etc.) to meet staff expectations and integrate these tools into the capital planning process.

TECH 05 Review and improve public access technology tools

Target Date Short Term
Responsible Party Borough Manager
Budget Impact Potential STMP Phase II match

Review public access technology tools to improve service delivery for residents utilizing borough
services, including emergency communication tools, appropriate AI integrations, service kiosks,
online applications, and online payment methods.

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Economic and Community Development

ED 01 Comprehensive Plan
Target Date Immediate
Responsible Party Borough Manager and Borough Council
Budget Impact STMP Match

Develop a new comprehensive plan to broadly address future growth and development including
housing. The borough could consider an individual plan or another joint plan with Lower Alsace;
however, a joint plan should acknowledge issues like zoning that might have arisen from the current
joint plan.
ED 02 Undergo Revitalization of Commercial Corridor
Target Date Short Term
Responsible Party Borough Manager
Budget Impact Potential grant revenue

Consider Main Street Matters revitalization activities including improvements to Perkiomen Avenue
such as facades, lighting, streetscapes and related items. Seek volunteers from the business and civic
leadership community to assist with activities and appropriate partner municipalities.
ED 03 Use STMP Report to Leverage Funding
Target Date Short Term or in conjunction with related comprehensive planning
Responsible Party Borough Manager
Budget Impact STMP Phase II match

Make use of state funding opportunities; make use of this report including resources linked in
Chapter 4.
ED 04 Develop Parks and Recreation
Target Date Short Term
Responsible Party Borough Manager
Budget Impact Potential STMP Phase II match

Consider the development of parks and recreation opportunities, potentially in cooperation with the
school district or other municipal partners.
ED 05 Use Strategies Consistent with the Outdoor Recreation Economy
Target Date Short Term
Responsible Party Borough COG Representatives
Budget Impact Maintain the tax base

Continue intergovernmental activities with the MP3 COG including improvements to the Mount
Penn Preserve using state grant programs. Support activities by Berks Nature to improve the
Neversink Mountain Preserve.

Labor and Personnel

Labor 01 Establish an Overall Bargaining Strategy and Pattern.
Target Date In conjunction with collective bargaining
Responsible Party Borough Manger and Borough Council
Budget Impact Expenditure control

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Labor 02 Negotiate less time off.

Target Date In conjunction with collective bargaining
Responsible Party Borough Manger
Budget Impact Expenditure control
Labor 03 Negotiate a higher contribution for health insurance.
Target Date In conjunction with collective bargaining
Responsible Party Borough Manger and Borough Council
Budget Impact Expenditure control
Labor 04 Clarify pension plan agreements.
Target Date In conjunction with collective bargaining as necessary
Responsible Party Borough Manger and Borough Council
Budget Impact Expenditure control

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Appendix

Cost Determination for Contracting Police Services 12

•
Conduct a thorough analysis of operating costs and the amount of service provided by the
current department.
• Determine the operating cost by adding all direct and indirect costs. Eliminate those that
relate only to the regional’s municipalities (school crossing guards, parking meters).
• Determine the total hours of police service. An officer working a 40-hours week works 2,080
hours annually, less hours for annual leave time.
• Multiply the hourly rate by the numbers of weekly hours desired by the community. Multiply
by 52 to get the annual cost.
Potential Cost Distribution Methods for Regional Commission
Best practice calls for a cost distribution method for a commission that is based on stable factors
that capture the demographic, social or economic makeup of the area. Major changes that disrupt
the cost distribution have been linked to the failure of otherwise well-functioning departments.
Common factors to consider include population, land area, property valuation, and revenues and tax
collection13.
Three cost models to consider are 100 percent population based; 50 percent population and 50
percent assessed market valuation; and 50 percent total taxes collected, 25 percent population and 25
percent market valuation 14.
The table below shows that Mount Penn’s wealth measurements are lower than Lower Alsace.
Mount Penn is also smaller than Lower Alsace in terms of population and geography. Mount Penn’s
2022 population was 3,222 compared to 4,777 in Lower Alsace. Mount Penn is 0.42 square miles
compared to 4.7 square miles for Lower Alsace.
Table 4-1

Wealth and Population Measurements, 2022

Median Value Median Household

Owner-Occupied Housing Unit Income Pop.
Mount Penn $148,000 $60,357 3,222
Lower Alsace $182,400 $68,789 4,777
Berks County $248,200 $72,070 428,849

Another mechanism to capture assessment is to have each municipality dedicate the same amount of
current General Fund millage. The amount of revenue collected from the millages would differ

12 [Link]

pennsylvania/?wpdmdl=59692&refresh=6426df32e42d01680269106
13 Ibid
14 Ibid

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based on assessment value. This method could also place controls on the commission’s annual
budget, since it would need to ask for a millage increase for more revenue unless assessment values
increase.
Activity can also be used in the cost distribution method; however, accuracy in reporting and
recording incidents are extremely important to the success of this costing method. Equal weight is
applied to each activity, with the activities then added together and the percentage occurring in each
community representing the percentage share 15.

15 Ibid.

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