Lower Frederick Township. Photo by James Short.
Township revenue outpaces projections by $215K while expenses remain under budget; board shifts mowing to third party and advances road, park, and sewer projects
Lower Frederick Township is halfway through the 2025 fiscal year with a stronger financial picture than expected, according to the midyear budget review presented Aug. 5 to the Board of Supervisors.
Township Manager Jason Wager reported that, across all funds, revenues are $215,897 above budget while expenses are $162,791 under budget. So far, the township has taken in $2.67 million — 8.8% more than projected — and spent $2.45 million, 6.2% below expectations.
General fund ahead of projections
The general fund has benefitted from higher-than-expected earned income tax receipts and permit fees, while expenses have remained in line despite unplanned costs for zoning services, building repairs, and road work. Wager said the township’s decision last year to place more money in certificates of deposit is paying off with increased interest income.
Projects completed so far include the Spring Mount sidewalk and culvert replacement, installation of a traffic light sensor at Route 29 and Spring Mount Road, and preparation for a new fence at Coble Park. A donated $100,000 gift will be reserved for a future public works building land purchase.
All in all, net income on all fund balances, including CDs, is $4.877 million, with a net income of $215.897, Wager said.
Other fund balance breakdowns:
General Operating Funds: $3.193 million balance, net income of (-$35.040)
Special Revenue Funds (Liquid Fuels, ARPA funds): $523,380 fund balance, net income of $104,809
Capital Project Funds (Open space, sewer capital, capital reserves): $602,275 fund balance, net income of $308,919
Fiduciary Funds (General fund developer escrows and sewer fund on-site escrows): $558,742 fund balance
"The township has outperformed its revenue budget by $93,472, and we've underperformed the expense budget by $59,015. In summary, as far as the general fund, our revenues continue to exceed expectations, primarily with earned income tax and permits," Wager siad. "Expenses have remained relatively in line with our 2025 budget. We did use a 5% inflation rate for our operation and maintenance costs."
Mowing duties outsourced
To free public works crews for road repairs and other priorities, the board opted to hire a third-party contractor for mowing township properties, rather than purchase new equipment or add staff. The move will reallocate about $25,000 toward inlet repairs, the Simmons Road Bridge, and other maintenance needs.
"In lieu of hiring another public works employee that was budgeted this year, along with purchasing of a new mower and to allow public works to complete more road projects that continue to be a struggle during the summer/fall months, because of their mowing obligations, the board decided to advertise that RFP and ultimately chose a third party for the mowing of township properties," Wager said.
Mixed results for sewer fund
The sewer fund remains below revenue projections by $47,414, due largely to weaker sewer rental and tapping fee income, but expenses are also under budget. Upcoming sewer projects include camera installations at the plant and pump stations, while some work, such as UV service and facility upgrades, may carry into 2026.
"We did use the same 5% inflation rate for the O&M costs, but it does appear we might have to be a little more aggressive or conservative, however you want to look at it, as far as what we budget for 2026 moving forward for these costs. I also want to add in we used 5% inflation rate for both of our general fund capital improvement fund and the sewer fund capital," Wager said.
Other funds and projects
"Ongoing projects that are still on for 2025 would be video cameras for the township buildings, permit/property management software and a new door lock system for the township building," he said.
Wager said the township’s financial position leaves room for strategic investments, but cautioned that inflationary pressures — particularly on sewer operations — will require close attention during the 2026 budget process.
"The last remaining project to finish will be the township building generator connection project. We received the switch panel and the connection from the generator to the building along with the switch installation still needs to take place in 2025," he said.
