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After several years of delayed financial reporting, Lower Makefield Township has successfully completed and released its 2025 Annual Financial Statement on schedule, marking an important achievement in the Township's ongoing efforts to strengthen financial management and transparency.
The timely completion of the audit reflects significant improvements made within the Township's finance operations during 2025. According to the Township's Management Discussion and Analysis, the finance department underwent a comprehensive restructuring designed to strengthen internal controls, enhance financial oversight, and clearly define staff roles and responsibilities. Additional modernization efforts included automating payroll functions, time sheets, leave tracking, and approval processes.
The audit also reflects the Township's transition to the Pennsylvania Chart of Accounts, a statewide standardized accounting framework that improves consistency, reporting accuracy, and transparency. Township accounting software and budget documents were updated to align with the new structure.
The financial report highlights a year of strong fiscal performance. Lower Makefield's total net position increased by approximately $3.43 million, reaching $121.7 million at the end of 2025. Governmental activities generated revenues of $28.4 million, an increase of 7.5 percent over 2024, while business-type operations, including the golf course, community pool, and sewer-related activities, also reported positive financial results. Among the notable achievements cited in the audit was Moody's Ratings' upgrade of Lower Makefield Township's issuer and general obligation bond rating from Aa2 to Aa1. The upgrade recognized the Township's significantly strengthened reserve position following the sale of its sanitary sewer system and reflects confidence in the Township's long-term financial stability. Several revenue sources performed strongly during 2025. Property tax revenues increased by nearly $900,000, while real estate transfer tax collections exceeded budget projections. Township investment earnings also grew substantially, increasing by more than $1 million as the Township benefited from favorable market conditions.
The Township ended 2025 with more than $50 million in cash and cash equivalents and total net assets of $121.7 million. Outstanding bonded debt continued to decline, falling from approximately $6.1 million in 2024 to $5.3 million at the end of 2025. Township officials noted that the successful completion of the audit on time is more than an administrative accomplishment. Timely financial reporting provides residents, taxpayers, bond rating agencies, and other stakeholders with current and reliable information about the Township's financial condition. It also demonstrates the effectiveness of the financial management improvements implemented over the past year.
Looking ahead, Lower Makefield enters 2026 from a position of financial strength. The Township continues to maintain tax collection rates above 99 percent, remains one of the most economically prosperous communities in Bucks County, and has budgeted for continued investments in roads, parks, public safety, and community services. For residents who have waited several years to see audits completed and released in a timely manner, the 2025 report represents an encouraging sign that the Township's financial operations are moving in a positive direction and that stronger financial governance practices are taking hold.
While the 2025 audit reflects positive progress in financial management and reports an increase in the Township's overall net position, the underlying financial trends warrant continued attention. The reported growth in 2025 was lower than the prior year's increase, and budget projections indicate that overall revenues are expected to remain relatively flat in the coming years. General Fund revenues, for example, are projected to decline from $17.16 million in 2025 to approximately $16.42 million in 2027 and remain largely unchanged through 2029. At the same time, General Fund expenditures are projected to increase from $17.86 million in 2025 to nearly $21.92 million by 2029, reflecting ongoing inflationary pressures and rising fixed operating costs.
The Township's multi-year budget also shows increasing structural imbalances. While the 2025 audit highlighted strong cash reserves and investment earnings, future budgets project expenditures growing faster than recurring revenues. As a result, fund balance projections indicate that several funds, particularly the General Fund, could experience significant declines and potentially move into negative territory in 2027 and beyond if corrective actions are not taken. Although the Township currently benefits from strong reserves, maintaining long-term fiscal sustainability will require either revenue growth, expenditure controls, or a combination of both to ensure that recurring revenues keep pace with increasing operating costs.
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