EXETER TWP., Pennsylvania — Operations at Reading Country Club were the main topic of discussion as Exeter Township supervisors reviewed the 2024 budget Monday night.
Kristina Karper, the municipality’s finance director, presented the annual review of the 2024 budget.
The main topic of discussion was the operation of Reading Country Club. Karper reported that green fees accounted for 51% of the budget. She said that despite the weather issues in the first quarter, green fees were on schedule. Cart rental revenue was 38% of the budget, above 2023 levels but below budget expectations.
Karper noted that membership dues accounted for 79% of the budget. Historically, she explained, the majority of membership dues come in the first quarter. However, membership dues in 2024 are below 2023 levels and may not meet budget.
Snack Shack’s operations have been outsourced to Reading Hospitality Management for most of 2024. Exeter resumed direct management on June 10, Kerper said, and revenue is expected to return to historical levels in the second half of the year.
On the expense side, Kerper noted that the golf department’s expenses are under budget, largely due to wage savings from job vacancies and weather impacts in the first quarter. Wages and benefits are expected to normalize in the second half of the year. She also noted that Snack Shack’s expenses may increase after returning to direct management, but that could be offset by higher food and beverage sales.
Golf management is actively working to address the revenue decline, including strategies to increase sales and attract new customers, Karper noted. RHM’s exit from event management may also have impacted revenue this year.
Karper reported that 19 events were held at Reading Country Club during the second quarter. These events generated total revenue of $199,241, and Exeter’s share of event revenue is $34,695 before expenses.
Supervisor David Hughes questioned numerous golf course expenses and said that “we are being ripped off by RHM at the RCC clubhouse events.”
Other budget highlights
Karper said the General Fund performed well in the first half of the year, with revenues at 61% of budget and expenses at 46% of budget. This accurately reflects performance in 2023 and shows careful budget management across all departments, she said.
Second-quarter earned income tax revenues account for 49% of the budget, consistent with year-to-date trends. EIT revenues increased 2% over the course of 2023. License, permit and inspection revenues account for 71% of the budget. This increase is primarily due to a few significant commercial permits; Karper noted that revenues generally peak in the summer months.
Additionally, local service tax revenues are at 49% of budget in Q2, with LST revenues up 6% year to date over 2023.
Because of the timing of these revenue sources, Karper said the results for property tax, garbage and recycling, and business tax are nearly complete and in line with expectations. These revenues typically generate their highest revenues in the second quarter. Property tax revenues make up 94% of the budget, garbage and recycling revenues make up 95% of the budget, while business tax revenues make up 90% of the budget.
Karper said property transfer tax revenues are at 47% of budget, at $280,393. While property transfers are down compared to 2023, higher sales prices keep revenues closer to expectations. Revenues typically peak in July and August, so close monitoring is advisable.
Payroll costs are slightly under budget at 47% due to vacancies; salaries and overtime are within budget in all departments. Health care costs are 53% of the budget; Karper noted that bonuses were paid for the months of January through July, resulting in a surplus over budget due to an additional monthly payment.
The 64% insurance cost included annual premiums paid in the first quarter for cyber liability, deadly weapon protection, alcohol liability and environmental liability. In addition, 40% of the premium was billed for other liability and property insurance in the first quarter, and 20% will be billed in quarters two through four.
Karper said communications costs, which amounted to 85% of the budget, were due to the annual fee for Berks County’s placement services paid in the first quarter. Since unemployment benefits costs are only applied to the first $10,000 of income, most of those costs are incurred in the first quarter. In addition, she said, equipment and uniforms for the new officers were purchased in the first half of the year.
In other action, regulators approved participation in “Wave 2” of the National Opioid Settlement. Those funds are intended for communities with more than 25,000 residents. Exeter’s share has not yet been determined, but the funds can be used for any purpose, said attorney J. Chadwick Schnee. In addition, regulators approved the community’s emergency plan.
