ESI was selected to assess Newtown Township’s financial condition and develop a five-year plan in conjunction with McNees Wallace & Nurick LLC and SRW Strategies. A five-year plan including recommendations to improve operational efficiency and promote fiscal stability in Newtown Township was developed in collaboration with the Township staff and Board of Supervisors. It is important to note that this analysis was commissioned prior to the COVID-19 pandemic, which has significantly impacted the Township’s finances and operations. Historically, revenue has failed to increase more than expenditure in Newtown. The practice of funding deficits with reserves is unsustainable as the General Fund reserve has continued to deplete.
The five-year financial report includes how Newtown Township could increase its revenue and decrease its operating expenses. Furthermore, it proposed potential multi-municipal collaboration opportunities and economic development strategies for consideration.
The baseline projections established the framework used to develop the recommendations, which are designed to build a stronger financial position and promote structural budgetary balance.
ESI found a range of measures and recommendations that could be taken to improve Newtown Township’s fiscal position under the STMP program. The Township was given these recommendation to implement with variations to the magnitude, timing, and combination of recommendations that are adopted.