mt. lebanon, pennsylvania annual report

mt. lebanon, pennsylvaniaannual report

lean

and clean

and smart

3 introduction

4 manager’sletter

5 effectiveleadership

responsetocustomers’needs

6 emergencyanddisasterplans

energyefficiency

7 keepingcurrentwithtechnology

grants

8 sharingservices

satisfyingandattractingcustomers

9 valueadded

10 taxcostofservices

11 organizationalchart

12 financials

14 commentstofinancials2010

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DemographicanDeconomicStatiSticS

Population 33,017PercentageofPopulationUnder5yearsold 6.1Overage65 18.8PercentageofPopulationThatSpeaksLanguageOtherThanEnglish(athome) 7.8TotalPersonalIncome$1,111,088,084PersonalIncomeperCapita$33,652NumberofHousingUnits 14,089PercentageofHousingUnitsOwner-Occupied 75.3MedianHouseholdIncome$60,783MedianAge 41.8yearsEducationalAttainment (Bachelor’sdegreeorhigher) 61.0UnemploymentRate 5.3MeanTravelTimetoWork 26.8minutesAverageSalesPriceofResidentialProperty $225,237

Note: All data 2000 US Census except for unemployment rate (2009, PA Bureau of Labor Statistics) and average sales price of residential property (2009, Mt. Lebanon Tax Office).

contents

Left: Last year’s popular

annual financial report

(PAFR) met the standard

set by the Government

Finance Officers

Association.

Num

ber o

f Call

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POLICE CALLS FOR SERVICE35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

YEAR

CrimeRelated

Traffic Stops Traffic Related Medical/FireAssistance

All Other

2008 2009 2010

Above: The police department’s total call volume has remained relatively steady. Calls for traffic-related incidents have increased—not surprising considering the number of commuters who travel through Mt. Lebanon.

Cover photo: What better symbol of Mt. Lebanon’s

clean, transparent government than water splashing

from the fountain at Clearview Common,

a popular Uptown gathering space.

government, like a business, needs funds to operate, but a government is different from a business. While the goal of a business is to make money, the goal of a government is

to provide its customers—the taxpayers—with the services they need and want, or as the Declaration of Independence puts it, to secure their right to “life, liberty and the pursuit of happiness.”

As the economy has faltered, smart govern-ments have become entrepreneurial, looking to the business sector for cost-effective ways to generate revenue and provide services. Mt. Lebanon has adopted many best business practices that are keeping our local government on the leading edge without overburdening customers.

Like many of our residents, Mt. Lebanon has tightened its belt to meet economic challenges, sometimes by tweaking existing services, other times by extending the timetable for launching a new program or acquiring a new piece of equipment. When funding for a desirable service is unavailable, we have found that discipline and imagina-tion often can compensate.

We try to be open and honest in our dealings with the public, to listen and respond to residents’ concerns and to provide good customer service, even when we can’t offer the perfect solution.

If this sounds a bit like a business plan, it is. We’re invested in planning, because we want satisfied customers—not just this year but decades down the road. To ensure that, we need to provide a reliable revenue stream, to spend prudently and to strengthen our community’s brand so that we can continue to compete in a market increasingly crowded with newer though less venerable suburbs.

Mt. Lebanon Municipality’s Home Rule Charter requires the municipal manager to report to the commission and the public at the end of each year on the financial state of the municipal-ity. This report on the year 2010 provides an overview of how tax dollars were spent, reviews the issues we’re dealing with in 2011 and focuses on how some best business practices, many of them suggested by the Small Business Administration, are helping us deliver lean and clean—and smart—local government.

lean and clean and smart

4

from

the

man

ager t is my pleasure to present this citizens’ annual report for 2010. This past year was successful and productive. In recent

years, the municipality has:• Kept the earned income tax and deed transfer tax rates flat. • Decreased the real estate tax rate for 2011 slightly for the second time in the last four years despite a freeze in property

assessments. In 2008 the millage was 4.97 mills, and in 2011 it is 4.76 mills. • Kept the undesignated fund balance at above 10 percent, the amount recommended by rating agencies. • Achieved a strong Aa1 bond rating, one of the few in Pennsylvania. Moody’s most recent report stated that Mt. Lebanon

“management’s ability to maintain structural balance and reserves at healthy levels remains an important factor in maintaining credit quality.”

• Decreased the number of full-time employees.• Steadily improved the financial results at recreation facilities.• Continued to properly fund municipal pension plans and other post-employment benefits.

Thirty years ago, Mt. Lebanon was a pioneer in privatizing public works services. Today, contractors perform most of our public works services according to municipal specifications: park grass mowing, sewer point repairs, street paving, sidewalk repair, custodial services, tennis court preparation, refuse and recycling collection, street sweeping, and sidewalk snow and ice removal. A small core public works staff performs other critical services such as snow removal from streets, leaf pickup, emergency fleet maintenance, maintenance of traffic signals, and basic forestry. This public/private approach provides excellent service while saving significant tax dollars.

As part of a 2010 strategic financial planning effort, the consulting firm TischlerBise surveyed residents. The results clearly showed appreciation for the high level of service local government provides. In response to the question: “Which of the following best describes your general feelings about services provided by Mt. Lebanon in general?” 82 percent answered either “good” or “great,” and another 14 percent said services were “OK, given our tax rate.”

In 2011, the municipality is focusing on further improving efficiencies and services. We will: • Emphasize preventive maintenance of infrastructure, including sewers, streets, sidewalks, traffic signals and parks. • Upgrade the website to include more e-commerce features. • Replace the fire department’s ladder truck and thermal imaging cameras and install police scheduling software. • Improve our Insurance Service Office (ISO) ratings and achieve national fire accreditation.• Consolidate parking authority operations into municipal government.• Implement a storm water maintenance fee, providing revenue for upgrading the storm system and preventing flooding.• Promote sustainability by making further energy reductions and expanding curbside recycling to include woody waste.

This popular annual financial report (PAFR) is a starting point for residents to learn more about our local government. The numbers included come from an audited source but are presented in an abridged format. If you wish to review generally accept-ed accounting principles (GAAP)-based financial statements, please refer to the comprehensive annual financial report (CAFR). The CAFR and other financial and performance information may be found at www.mtlebanon.org. I encourage you to visit our website and to contact me at 412-343-3620 or [email protected] to share your ideas or ask questions.

Very truly yours,

Stephen M. Feller

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Have effective leadershipLeadership requires cooperation among elected officials, management and the public. Here are some 2010 honors that exemplify Mt. Lebanon’s good leadership:

• Governor’s Award honoring innovative planning and land use.• Governor’s Award recognizing the municipality’s role in

creating the South Hills Police Critical Incident Response Team (CIRT) to respond to high-risk issues.• National recognition as a Main Street Achiever community. • AAA’s highest Platinum Pedestrian Safety Award.• Renewed designation as a Tree City USA.• Government Finance Officers Association (GFOA) Award for

the comprehensive annual report (CAFR) and the popular annual financial report (PAFR).

Respond to customers’ daily needs Mt. Lebanon met or exceeded residents’ expectations:

• The fire department responded to a record 2,081 incidents. • The recreation department mandated background checks for municipal volunteers who work with children.• A golf course satisfaction survey resulted in improvements,

including the addition of a food vendor.• The police department’s crime prevention unit introduced a

program for 8th graders on dating violence. • An on-line survey showed 93 percent of residents rate

Mt. Lebanon Magazine as “good” or “excellent.” • The planning office/planning board worked with the school

district to move the new high school toward final approval. N

umbe

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alls

FIRE CALLS FOR SERVICE2,500

2,000

1,500

1,000

500

0

YEAR

FiresOverheat RescueMedical

HazardousCondition

GoodIntent

FalseAlarm

ServiceCall

2008 2009 2010

Num

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f Call

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FIRE NON-EMERGENCY OUTREACH1,200

1,000

800

600

400

200

0

YEAR2006 2007 2008 2009 2010

Community Education InspectionsPe

rcen

tage

FIRE RESPONSE TIMES120

100

80

60

40

20

0

Response time2008 2009 2010

NFPA benchmark % Mt. Lebanon benchmark NFPA baseline 5:20 minutes 6:00 minutes 6:42 minutes

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Top: The fire department had its busiest year ever.

Center: Non-emergency outreach such as community education programs and chimney

inspections continued to be popular.

Bottom: Fire response times continued to improve, exceeding the level of excellence set by the National

Fire Protection Association, Mt. Lebanon’s goal and the standard response time reported by the National Fire Protection Association. These positive statistics

should help the department achieve national accreditation in 2011.

6

Have emergency and disaster plansMt. Lebanon aims to be a pacesetter among suburbs; thus, managing emergencies is paramount.

• The emergency management team mitigated two major weather events that caused widespread damage and left much of the town without power.

• A community emergency response team of 12 residents was formed to assist public safety agencies during major events and participate in preparedness programs.

• The information technology office maintained a disaster recovery plan for redundant backup between the municipal building and the public safety center; critical information is stored off-site.

• LeboALERT provided residents with timely emergency warnings and safety information.

Reduce energy use; adopt green business practices To promote energy efficiency, Mt. Lebanon:

• Endorsed the Community Greenhouse Emissions Inventory and Climate Action plan.

• Adopted a “no idling” policy for municipal vehicles. • Expanded the items that can be recycled at curbside and

increased participation over two years by 89 percent. • Sponsored two electronic recycling events, one pharmaceutical

collection event and eight wood waste drop-off events. • Installed LED signal lights at 16 intersections.

Num

ber o

f Tre

es

Planted Removed

THE EMPHASIS ON TREES CONTINUES350

300

250

200

150

100

50

0

YEAR

2006 2007 2008 2009 2010

At left: Trees and leaves take up more public works time in our ‘‘Tree City USA’’ than in many places. New technologies and good equipment help the department operate cost-efficiently, but so far there is no substitute for expensive road salt.

At right: These leaves will become

compost—just one of public works’

environmenral initiatives. Center:

the public information office’s

‘‘Mt. Lebanon Minutes’’ provide

online and cable ‘‘snapshots’’ of

important issues. Far right: the fire

department received a $585,000

grant to help purchase a new

ladder truck.

Num

ber o

f Tru

cload

s

YEAR

TRUCKLOADS OF LEAVES PICKED UP2,0001,8001,6001,4001,2001,000

800600400200

02006 2007 2008 2009 2010

Tons

of S

alt

YEAR COST PER TON

ROAD SALT—AN EXPENSIVE COMMODITY8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

60

50

40

30

20

10

0

Dol

lars

2006 2007 2008 2009 2010

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7

Above: It’s easy to recycle and make the world a better place, as residents’ increasing participation in the curbside program proves. Mt. Lebanon is competing with a number of other South Hills communities for the recycling trophy, awarded to the town that shows the greatest increase in tonnage collected.

Keep abreast of technology and when it isapplicable to your customers We continued to improve public service through technology by:

• Upgrading software at the golf course. • Implementing on-line programs and pavilion registration at

the recreation department.• Introducing a web-based tool that permits us to send

LeboALERTs to targeted sections of the community.• Making some GIS mapping services available to the public via

the website.• Producing short, informative “Mt. Lebanon Minutes” for the

website and cable channel.

Seek grants Here some of the federal, state and other grants we received:• A $94,000 grant for DUI Enforcement, Buckle Up and

Pennsylvania Aggressive Driver Education programs.• A $585,000 Assistance to Firefighters grant to help purchase

a new ladder truck.• A $75,000 grant (shared with three neighboring towns) to

pursue cooperative management of the Chartiers Watershed’s sanitary sewers.

• A $150,000 Community Infrastructure and Tourism grant to create pre-engineering documents for the air rights project over the light rail transit station.

• A federally funded Southwestern Pennsylvania Commission regional SINC-UP grant for upgrading/synchronizing traffic signals on Route 19.

* A Congestion Management Air Quality grant for preliminary engineering to upgrade signals on Beverly and Cochran roads.

Tons

of R

ecyc

ling

YEAR

RESIDENTIAL RECYCLING2,500

2,000

1,500

1,000

500

0 2006 2007 2008 2009 2010

Tons

of R

ecyc

ling

YEAR

COMPOSITION OF RECYCLING9,0008,0007,0006,0005,0004,0003,0002,0001,000

02009 2010

Residential Commercial Leaf

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8

At left: County funding cuts stressed the library this year; however, an increased allotment from the municipality along with creative fund-raising events and some belt tightening allowed the library to continue its tradition of serving not only residents of Mt. Lebanon but people from all over western Pennsylvania.

Prog

ram

Atte

ndan

ceLIBRARY PROGRAMS AND THEIR ATTENDANCE

YEARAttendance Number

35,000

30,000

25,000

20,000

15,000

10,000

5,000

02006 2007 2008 2009 2010

1,8001,6001,4001,2001,0008006004002000

Num

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f Pro

gram

s

Num

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f Que

stion

s

REFERENCE QUESTIONS80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

YEAR

2006 2007 2008 2009 2010

Perc

enta

ge

80

70

60

50

40

30

20

10

0

YEAR

2008 2009 2010

PERCENT OF POPULATION WITH LIBRARY CARDS

Share services, form partnerships; right-size and reduce redundanciesThis is just good common sense. Here are a few examples:

• Signed a new two-year agreement with the school district and the Youth Soccer Association for continued maintenance of school athletic fields.

• Implemented the “Go Zone” uniform signage program with the school district.

• Decided to consolidate parking authority operations into municipal government by December 31, 2011.

• Developed a retail management and promotions strategy for Uptown in partnership with Duquesne University.

Market to retain satisfied customers and get people interested in what you are sellingHere are a few of the things that pleased residents and brought new people to town to take a look:

• Coffee with the Manager, a community relations board program that invites residents to discuss issues with the staff

informally at a coffee house.• A five-year preservation plan developed by the historic

preservation board as an economic development strategy.• New decorative banners on street lamps Uptown.• Free mini-architectural consultations offered cooperatively

with the Community Design Center of Pittsburgh.

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Provide as much value added as possibleIn a built-out town such as Mt. Lebanon, “value added” is anything that holds the line on taxes or expands the tax base. Here is what we did in 2010:

• Approved plans for a new Salvation Army facility on McNeilly Road.

• Achieved the best bottom line at the recreation center in the last 40 years.

• Reduced liability and property insurance premiums by $78,000.

• Through CONNECT, the Congress of Neighboring Communities, began to identify potential savings in utility and communications billings.

• Refunded bond issues to achieve debt service savings—four municipal issues saving $960,000 and one parking authority issue saving $132,000.

• Received a rating upgrade from Moody’s from Aa2 to Aa1, giving us one of the highest issuing ratings in Pennsylvania.

At right: Weather and the economy can have a huge impact on attendance at the recreation department’s facilities and programs. Thanks to good

budgeting, a hard-working staff and residents of all ages who appreciate stimulating, affordable leisure activities, the recreation department enjoyed

strong public participation in 2010.

2006 2007 2008 2009 2010N

umbe

r of A

ttend

ees

RECREATION FACILITY ATTENDANCE80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0Ice Rink Swimming Golf Tennis Pool Course Center

2006 2007 2008 2009 2010

Num

ber o

f Pro

gram

s O

ffere

d

GROWTH IN RECREATION PROGRAMS500450400350300250200150100

500

YEAR

People don’t always have time to attend public meetings, so they

appreciated Coffee with the Manager, a community relations

board program that promotes transparent government by inviting

residents to meet informally with Manager Steve Feller and other

staff members at a local coffee house.

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Top: No matter how many violations the Inspection Office

uncovers, the inspectors’ goal is to resolve as many

as possible, as quickly as possible.

Above: Application fees for both residential and commercial

permits increased, a sign that the economy is rebounding.

Dol

lars

VALUE OF PERMITS35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

YEAR

Residential Other

2005 2006 2007 2008 2009 2010

Num

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f Vio

latio

ns

YEAR

PROPERTY MAINTENANCE VIOLATIONS1,600

1,400

1,200

1,000

800

600

400

2000

VIOLATIONS VIOLATIONS RESOLVED

2005 2006 2007 2008 2009 2010

Public Safety PoliceProtection$198.12FireProtection 85.52SchoolCrossingGuards 6.08AnimalControl 2.22EmergencyManagement (0.10) Subtotal 291.84

Public WorkS Inspection&Administration 13.19CommunityDevelopment 12.00GeographicInfo.System 2.05Planning&Engineering 5.59CivicActivities 2.63Subtotal 35.46

tranSPortation Street&CurbMaintenance 7.33SidewalkMaintenance (1.32)Ice&SnowControl 17.05StreetLighting 9.28TrafficSigns,Signals&Calming 8.37Subtotal 40.71

Sanitation StormSewers 3.38StreetSweeping 5.79RefuseCollection 55.19Subtotal 64.36

building, groundS & equiPmentBuildingMaintenance 27.20VehicleMaintenance 18.98ParksMaintenance 7.91GeneralMaintenance 0.72Forestry 11.93PlantingAreas 0.81Subtotal 67.55

recreationRecreationFacilities$(1.44)RecreationPrograms& Administration 5.29Subtotal 3.85

intergovernmental Library 30.29Outreach 2.81MRTSA 5.36CommunityOrganizations 0.74Subtotal 39.20

general government Administration 1.70TaxCollection 7.72Legal 11.55PublicInformation 5.27Finance&Personnel 7.69InformationSystems 10.54Subtotal 44.47

otherNetDebt (22.12)Overhead 10.35Subtotal (11.77)

caPitalEquipment 7.10InfrastructureImprovements 1.30Subtotal 8.40

TOTAL 584.07

add (Subtract):IncreaseinFundBalance 88.59InterestEarnings (0.33)

TAXCOSTOFSERVICE $672.33

GeneRAL FUnd TAx COST PeR CAPiTA

20102010

p h o t o

organizational chart—mt. lebanon, pa as of May 1, 2011

TRAFFIC BOARD

Recommends traffic control

ECONOMIC DEVELOPMENT

COUNCIL

Coordinates development

LIBRARY BOARD

Administerslibrary

ZONING HEARING BOARD

Hears requests for zoning variances

PLANNING BOARD

Updates master plan Reviews site plans

BOARD OF APPEALs

Hears appeals to building codes

Recommends code changes

CIVIL sERVICE BOARD

Supervises police & fire hiring

& promotion

COMMUNITY RELATIONs

BOARD

Mediates community

relations problems

sOLICITOR

Philip Weis

TRAFFIC CONsULTANT

Mark Magalotti

TREAsURER (Elected for 4-year term)

Collects all municipal revenues

COMMIssION

(5 members, elected for 4-year terms by ward)

FIRE

Nicholas Sohyda,

chiefFire suppressionFire prevention & inspection

FINANCE

Marcia Taylor, acting director

AccountingBudget

Investments

PROGRAMs

Patrick Cannon, manager

Seasonal programs Special activities

FACILITIEs MANAGER

Robert Hlebinsky, manager

Ice RinkSwimming Pool

Community Center

PARks ADVIsORY

BOARD

Monitors parks and open space

PUBLIC WORks

Thomas Kelley,director

Rudy Sukal, superintendent Construction

& Maintenance Contract administration

POLICE

Coleman McDonough, chief

Michael Gallagher, deputy chief

Patrol & traffic services Crime prevention

Criminal investigation

Aaron Lauth, lieutenant

Administrative, facilities & equipment

Police recordsAnimal ControlAccreditation

ENGINEER

Dan Deiseroth

HIsTORIC PREsERVATION

BOARD

Advises about historic

preservation

RECREATION

David Donnellan, director

AssIsTANT MANAGER

Marcia Taylor

MANAGER

Stephen Feller

sTAFF OFFICEs

CommeRCial DistRiCts Eric Milliron

iNsPeCtioNsJoseph Berkley

PlaNNiNgKeith McGill

PUBliC iNFoRmatioNSusan Morgans

sYstems aDmiNistRatioNNicholas Schalles

PENsION INVEsTMENT

ADVIsORY BOARD

Advises about pension

investments

AUTHORITIEs

PaRkiNg aUthoRitYOperates parking facilitiesProcesses parking tickets hosPital aUthoRitY

Supervises debt redemption

iNDUstRial DeveloPmeNt aUthoRitY

Enhances development/ redevelopment

meDiCal ResCUeOperates a six-community emergency medical service

ENVIRONMENTAL sUsTAINABILITY

BOARD

Advises commission and school board on environmental

initiatives

Having a plan for dealing

with emergencies such

as a huge snowstorm is

a best business practice.

Mt. Lebanon’s well-trained

emergency operations

team requires participation

from nearly everyone on

the chart at left.

12

Center: After the completion of building projects in the early part of the last decade, the amount of debt outstanding has remained relatively constant for the

last five years. In 2010, four bond issues were refunded to reduce future interest costs. In addition,

the municipality refunded the debt of the Mt. Lebanon Parking Authorithy.

At right: Over the past decade, the major revenue streams that have provided

resources for the operating budget are real estate taxes and earned income taxes.

Together they make up about two-thirds of the total operating budget revenues.

At right: The total fund balance is the difference between assets and liabilities in a specific fund of the municipality.

The undesignated portion of the fund balance represents expendable available resources that can be spent for

emergencies and future uncertainties.

In the General Fund, the municipality’s primary operating fund, the undesignated fund balance decreased by $487,434 from

2009 to 2010. This decrease was caused by use of fund balance in the 2011 budget and a designation for 2012 to help with

pension contributions.

The municipality has worked to increase the General Fund’s undesignated fund balance from a low of 4.1 percent of

operating revenues in 2004. Rating agency and industry standards recommend an undesignated fund balance in the

General Fund to be 5 to 15 percent of operating revenues. At year-end 2010, the General Fund undesignated fund balance

was 11 percent.

Undesignated Fund Balance Total Fund Balance

GENERAL FUND BALANCE

YEAR

Dolla

rs in

Milli

ons

12

10

8

6

4

2

02006 2007 2008 2009 2010

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

20102006 2007 2008 2009

DEBT OUTSTANDING

Dolla

rs

YEAR

Perce

nt o

f Tot

al Re

venu

e

Earned Income TaxReal Estate TaxYEAR

Other Taxes

TAX REVENUES

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

40

35

30

25

20

15

10

5

0

At left: The tight budgets of the last few years have left little to spend on capital budget items. In 2010, sanitary sewer work comprised the total expenditure on infrastructure.

Other projects included replacing police radios, computer servers and a large truck for public works; installing LED traffic signals; purchasing thermal imaging cameras for the fire department, and resurfacing the library parking lot.

At left: Over the last decade, the recreation department has worked hard to reduce its reliance on tax revenues. In 2001, the operating loss for facilities and programs was $614,611. By 2010, this had become a profit of $185,520.

The biggest turnaround was at the ice rink—representing $577,955 of the gain.

At left: While the real estate market has significantly declined in other areas of the country, the values in Mt. Lebanon have not been as vulnerable. After a dip in average sales price in 2008, the prices in Mt. Lebanon showed recovery in 2009 and remained steady in 2010. The average sales price increased a mere 0.1 percent from 2009 to 2010.

The number of properties sold has been constant in the past, but in the last few years has been far more market sensitive.

CAPITAL EXPENDITURES

Infrastructure ExpendituresTotal Capital ExpendituresYEAR

Dolla

rs in

Milli

ons

6

5

4

3

2

1

02006 2007 2008 2009 2010

Year

RESIDENTIAL REAL ESTATE TRENDS

Average Sales Price Number of Sales

Dolla

rs

Num

ber

YEAR

250,000

200,000

150,000

100,000

50,000

02006 2007 2008 2009 2010

7006005004003002001000

NET PROFIT (LOSS)—RECREATION ACTIVITIES

Seasonal Programs Golf Course Tennis CenterIce Rink Swimming Pool Community Rooms

Dolla

rs

YEAR2001 actual 2004 actual 2007 actual 2010 actual 2011 budget

200,000100,000

-(100,000)(200,000)(300,000)(400,000)(500,000)

STATEMEnT OF nET ASSETS—PRIMARy GOVERnMEnTDecember31,2010and2009 GovernmentalActivities 20102009 ASSETS Cashandothermoneymarketinstruments $10,661,133 $10,420,534Receivables,net 4,961,716 5,020,682Duefromcomponentunit 3,851,454 641,977Duefromothergovernments 399,997 471,825Otherassets 958,583 1,092,262Capitalassets 66,709,774 65,307,270

TotalAssets 87,542,657 82,954,550

LIABILITIES Accountspayable 3,005,958 2,134,097Accruedpayrollanddeductionspayable 970,813 848,451Advanceddeposits 709,036 575,281Accruedinterestpayable 111,862 267,579Otherliabilitiesduewithinoneyear 1,600,000 1,675,000Liabilitiesdueinmorethanoneyear 26,512,231 24,424,039

TotalLiabilities 32,909,900 29,924,447

NETASSETS Investedincapitalassets,netofrelateddebt 39,702,266 40,420,398Restricted 1,886,214 2,416,783Unrestricted 13,044,277 10,192,922TotalNetAssets $54,632,757 $53,030,103

Accountingstandardsforgovernmentsrequirefinancialstatementstobepresentedonagovernment-widebasis.Thefinancialstatementsshownherearecondensedgovernment-widestatementswhichreflectthemunicipality’sfinancialpositionandoperatingresultsfor2010,includingfutureobligations.Fiduciary(pensionandotherpost-employmentbenefits)statementsandthemunicipality’scomponentunits,Mt.LebanonParkingAuthorityandtheMt.LebanonIndustrialDevelopmentAuthorityarenotincluded.Thefinancialinformationpresentedhereisderivedfromthemunicipality’scomprehensiveannualfi-nancialreport(CAFR)for2010.TheCAFRispreparedinaccordancewithgenerallyacceptedaccountingprinciples(GAAP)andincludesadditionalfinancialstatements,notedisclosuresandrequiredsupplementalinformation.ThecompletedCAFRisavail-ableinMay,andanyinterestedcitizenmayreviewtheCAFRatthemunicipalfinanceoffice,thepubliclibrary,thecustomerservicecenterinthemunicipalbuildingoronlineatwww.mtlebanon.org.Thegovernment-widestatementsreportinformationaboutthemunicipalityasawholeusingaccountingmethodssimilartothoseusedbyprivate-sectorcompanies.Twogovernment-widestatementsarepresented:theStatementofNetAssets,whichincludesallofthemunicipality’sassetsandliabilities,

andtheStatementofActivities,whichfocusesonhowthemunicipality’snetassetschangedduringtheyear.TheStatementofNetAssetsmeasuresthemunicipality’sfinancialhealth,orposition.Overtime,increasesordecreasesinthemunicipality’snetassets(thedifferencebetweenassetsandliabilities)areanindicatorofwhetheritsfinancialhealthisimprovingordeteriorating.Unliketheprivatesectorgoalofmaximizingrevenues,agovernment’sgoalistoprovidehighqualityservicesatthelowestpossiblecosts.Thecostofprovidingthevariousmunicipalservicesmaybeoffsetbyoutsidesourcessuchasfees,grantsand

contributions.TheStatementofActivitiespresentsoperationalactivitiesusinganetcostformat(expensesincludingdepreciationlessrevenuesgeneratedbytheactivity)todemonstratetheportionofeachactivitythatrequiresfinancingbygeneralgovernmentalsources(generallytaxes).Forexample,thepublicworksdepartmentexpended$12.5millionandgeneratedrevenueof$8.3million,resultinginanetcostof$4.2million.Thisnetcostispaidfromthegeneraltaxrevenuesofthemunicipality.FINANCIALHIGHLIGHTSIntotal,municipalassetsexceededliabilitiesin2009by$54.6million(netassets).Net

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financials

STATEMEnT OF nET ASSETS—PRIMARy GOVERnMEnTDecember31,2010and2009 GovernmentalActivities 20102009 ASSETS Cashandothermoneymarketinstruments $10,661,133 $10,420,534Receivables,net 4,961,716 5,020,682Duefromcomponentunit 3,851,454 641,977Duefromothergovernments 399,997 471,825Otherassets 958,583 1,092,262Capitalassets 66,709,774 65,307,270

TotalAssets 87,542,657 82,954,550

LIABILITIES Accountspayable 3,005,958 2,134,097Accruedpayrollanddeductionspayable 970,813 848,451Advanceddeposits 709,036 575,281Accruedinterestpayable 111,862 267,579Otherliabilitiesduewithinoneyear 1,600,000 1,675,000Liabilitiesdueinmorethanoneyear 26,512,231 24,424,039

TotalLiabilities 32,909,900 29,924,447

NETASSETS Investedincapitalassets,netofrelateddebt 39,702,266 40,420,398Restricted 1,886,214 2,416,783Unrestricted 13,044,277 10,192,922TotalNetAssets $54,632,757 $53,030,103

The financial information in this report is summarized from the 2010

comprehensive annual financial report (CAFR). The CAFR, which is posted at

www.mtlebanon.org in early May, includes more than 100 pages of detailed

financial statements, note disclosures and statistical information.

STATEMEnT OF ACTIVITIES —PRIMARy GOVERnMEnTFor the year ended December 31, 2010

Program Net Functions/Programs Expenses Revenues Expense Governmental activities: General government $4,363,644 $2,439,933 $(1,923,711) Community development 1,420,654 215,581 (1,205,073) Public works 12,535,375 8,318,271 (4,217,104) Human services 2,068,627 742,410 (1,326,217) Culture and recreation 3,107,956 2,517,961 (589,995) Public safety: Police 7,021,111 334,260 (6,686,851) Fire 3,335,456 365,436 (2,970,020) Other 842,170 478,012 (364,158) Interest on long-term debt 1,155,273 - (1,155,273) Total governmental activities $35,850,266 $15,411,864 (20,438,402) General revenues: Taxes 22,010,570 Interest income 30,486 Total general revenues 22,041,056 Change in net assets $1,602,654

assetsincreasedby$1.6millionfrom2009to2010.In2010themunicipalityrefundedfourdebtissuesresultinginnetinterestsavingsofalmost$1.0million.InadditionthemunicipalityrefundeddebtoftheMt.LebanonParkingAuthority,whichaccountsfortheincreasesinDuefromcomponentunitsandLiabilitiesdueinmorethanoneyear.Themunicipalityreceivedanupgradeinitsbondratingin2010toastrongAa1fromMoody’sInvestorService.

Back cover: We can

measure many

economic benefits of

applying good business

practices to local

governement, but one

thing we can’t quantify is

the incredible spirit and

dedication of our

citizens. That’s one

reason Mt. Lebanon is

known as ‘‘A Community

with Character.’’

ten largeSt taxPayerS in 2010 TaxpayerAssessmentPercentage ofTotal

TheGalleria(L&BSouthpointe)$ 30,400,000 1.4

BrookdaleSeniorHousing 17,000,000 0.8

BowerHillDevelopment 11,699,700 0.5

ConcordiaLutheran 8,489,416 0.4

IHPBowerHillLLC 6,831,700 0.3

650WashingtonRoadAssociates(TheCyclopsBuilding) 6,193,900 0.3

St.ClairMemorialHospital 5,831,220 0.3

AsburyHealth 5,876,498 0.3

JonPanRealtyInc. 5,555,000 0.3

PendaleTowers 5,253,200 0.2

Total $103,130,634 4.8

TotalTaxableAssessedValuation$2,165,708,513

ten largeSt emPloyerS in 2010EmployerEmployeesPercentage ofTotal

St.ClairMemorialHospital 2065 27.2

Mt.LebanonSchoolDistrict 667 8.8

AsburyHealthCenter 334 4.4

Mt.LebanonMunicipality 256 3.4

BaptistHomes 243 3.2

KeystoneOaksSchoolDistrict 174 2.3

GiantEagle 147 1.9

FamilyHospice 146 1.9

DevonshireofSouthHills 138 1.8

Houlihan’s 127 1.7

Total 4,297 56.6

TotalEmployees7,591

Produced by the Mt. Lebanon Public Information Office Editor: Susan Fleming MorgansDesigner: Helen m Worsing l Photos: George Mendel, Gene Puskar, Judy MacoskeyPrinted by Knepper Press©2011 Mt. Lebanon Municipality. All rights reserved

Dol

lars

YEAR

GOVERNMENT-WIDE TREND DATA40,000,000

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,0000

REVENUES EXPENSES

2006 2007 2008 2009 2010

Revenues continue to outpace expenditures, although the gap narrowed in 2010. With the economy rebounding, we hope to see higher revenues in 2011.