Millcreek Township's Financial Recovery in 2024
A comprehensive review of Millcreek Township's finances for the year 2024 reveals a significant turnaround in its fiscal management. The township, which had faced considerable challenges with its general fund balance and audit processes in prior years, reported an unexpected revenue surplus of $4.53 million last year. This positive outcome was largely attributed to higher tax collections and unforeseen grants. Additionally, several departments, including police and public works, managed to spend less than what was budgeted for salaries, benefits, and operational costs. According to Treasurer Melanne Page, these developments have not only improved the fund balance but also laid a robust foundation for sustainable fiscal practices moving forward.
Financial concerns were initially raised by the Millcreek Township Government Study Commission, which highlighted issues such as substantial spending from the township’s general fund balance, delayed audits, and accounting discrepancies. In response to these findings, corrective measures were implemented. Page assumed her role as treasurer in May 2024, succeeding Mark Zaksheske who was placed on unpaid administrative leave until July 2025 under a separation agreement. She noted that standard practices had not always been followed in previous years, necessitating major adjustments during the 2023 audit process.
Substantial improvements were made in 2024, addressing the accounting errors identified in the 2023 audit. Revenues exceeded expectations by $4.53 million, primarily due to better-than-expected tax receipts and unanticipated grant monies. Expenditures were also lower than anticipated, with nearly $22 million spent on employee salaries, benefits, and taxes being $376,000 less than the budgeted amount. Furthermore, operating costs came in $282,000 below the projected $6 million.
The township’s general fund balance had seen a sharp decline in recent years, decreasing by $1.7 million in 2021, $4.9 million in 2022, and $11.1 million in 2023, reducing it from approximately $35.9 million to $18.4 million. Of the $11.1 million spent in 2023, about $3 million covered operating costs not funded by revenues, while $8 million was allocated for other purposes, including transferring over $7.3 million to the Millcreek Township General Authority for property redevelopment. Some of this reduction resulted from correcting earlier overestimates linked to accounting mistakes.
As of the end of 2023, the general fund balance stood at $18,357,151, with $14,937,385 reserved for future capital projects. These funds included just over $9 million from the 2015 sale of the Millcreek Township Water Authority to Erie Water Works. The remaining $3,419,766 was unrestricted and available for other uses. However, Page corrected her earlier statements indicating that the $18.4 million fund balance was unrestricted and unreserved, clarifying that water sale proceeds were not part of this balance. Since then, the general fund balance has increased to around $20 million.
Treasurer Melanne Page's report underscores the township's successful financial recovery efforts in 2024. By implementing necessary corrections and achieving a surplus, Millcreek Township has positioned itself for more stable and effective fiscal management in the coming years. The improved fund balance reflects a commitment to transparency and accountability, ensuring resources are utilized efficiently for the benefit of the community.