HomeMy WebLinkAboutFY19 Revenue Presentation BoS 9.13.2017 FINALWhat is Proposition 2 ½?◦Proposition 2 ½ is a voter initiative law that limits the property taxProposition 2 ½ is a voter initiative law that limits the property tax levy of cities and towns that came into effect in 1982. What is the Property Tax Levy?The property tax levy is the revenue a community can raise◦The property tax levy is the revenue a community can raise through real and personal property taxes. The property tax levy is the largest source of revenue for most cities and towns.◦In Nantucket the tax levy represents approximately 85% of all General Fund RevenueGeneral Fund Revenue.How is the Levy Limit Calculated?◦A levy limit for each community is calculated annually by the DfRIii h i’Department of Revenue. It is important to note that a community’s levy limit is based on the previous year’s levy limit and not on the previous year’s actual levy.September 13, 2017 2
How is the Levy Limit Increased?◦Allowable 2.5 percent increase◦New GrowthNew Growth◦OverridesPermanentTemporary ExclusionsTemporary ExclusionsSeptember 13, 2017 3
FY19 Levy Limit – ProjectedFY2019 Revenue Projection:FY2018 Levy Limit 71,384,661 2.5% Increase 1,784,620 New Growth 700,000 FY19 Allowable Levy Limit 73,869,281 Debt Exclusion 6,498,855 FY2019 Maximum Allowable Levy 80,368,136 September 13, 2017 4
Local Receipts are projected to increase by less than 2% over FY2018 estimatesFY2019II. LOCAL RECEIPTS REVENUE PROJECTION 1. Motor Vehicle Excise Taxes2,350,000 2. Other Excise Taxes (Meals, Room, Boat)3,900,000 3. Penalties & Interest on Taxes and Excises599,140 4. Payments in Lieu of Taxes7,330 5 Charges for Services44 6005. Charges for Services44,600 6. Fees895,000 7. Rentals665,090 8. Other Departmental Revenue186,430 9. Licenses and Permits1,450,000 10 Fines and Forfeits235 00010. Fines and Forfeits235,000 11. Investment Income125,000 12. Miscellaneous Recurring11,250 13. Miscellaneous Non-Recurring (Indirect Costs)‐ Total Local Receipts10,468,840 September 13, 2017 5
FY2018 FY2019APPROVED BUDGET PROJECTIONGENERAL FUND REVENUE SUMMARYI. TAXES‐ REAL ESTATE AND PERSONAL PROPERTY79,657,082 80,368,136 Less: Abatements & Exemptions (1,000,000) (1,000,000) II. LOCAL RECEIPTS10,152,840 10,468,840 III. STATE LOCAL AID3,271,156 3,320,527 TOTAL GENERAL FUND REVENUE ‐ PROJECTED92,081,078 93,157,503 September 13, 2017 6
FY2013 – FY2017 ActualProjections prior to Free Cash & Retained Earnings certificationFY2013 FY2014 FY2015 FY2016 FY2017 CAGRReal Estate & Property Taxes63,749,350 64,045,384 66,762,990 69,288,111 74,166,729 3.9%Allowance for Abatements(1,436,973) (1,419,342) (1,333,479) (985,952) (981,500) (9.1%)Excise Tax - Motor Vehicles1,850,103 2,444,483 2,512,104 2,674,907 2,753,546 10.5%Oth E i T B t E i TOther Excise Tax- Boat Excise Tax30,516 34,275 39,434 36,132 33,277 2.2%Other Excise Tax- Rooms Tax2,346,122 2,582,944 3,041,496 3,428,604 3,498,400 10.5%Other Excise Tax- Meals Excise tax783,557 860,798 908,283 997,903 1,061,396 7.9%Penalties and Interest on Taxes and Excises677,906 598,411 882,782 657,302 686,444 0.3%Payment in Lieu of Taxes214,574 ‐ 31,328 33,231 14,706 (48.8%)Charges for Services63,892 53,219 40,656 35,103 35,871 (13.4%)Fees646,871 751,139 800,972 953,023 1,062,236 13.2%Rentals510,250 556,200 457,510 743,995 489,713 (1.0%)Other Departmental Income (1)224,573 211,129 104,758 1,065,369 245,385 2.2%License & Permits1,075,074 1,405,962 1,449,772 1,712,508 1,698,581 12.1%Fines and Forfeits208,504 266,949 242,354 238,387 299,237 9.5%Investment Income103,450 79,072 172,420 159,743 135,292 6.9%,,,,,Miscellaneous Recurring Income (RDS Retiree Drug Subsidy)48,830 49,245 44,762 11,388 ‐ (100.0%)Miscellaneous Non-Recurring Income (Indirect Costs, transfers)579,031 2,045,567 589,800 301,457 629,765 2.1%State Local Aid1,473,169 1,744,433 2,346,913 3,188,722 3,287,323 22.2%Total Revenues73,148,799 76,309,867 79,094,855 84,539,933 89,116,401 5.1%(1) In FY2016 Other Department Income included $895 315 in governmental aid as a result of storm damange (Juno)September 13, 2017 7(1) In FY2016, Other Department Income included $895,315 in governmental aid as a result of storm damange (Juno).
FY2018 FY2019GENERAL FUND EXPENSE SUMMARY APPROVED BUDGET EXPENSE PROJECTIONUSSUOUSOOSalaries ‐ Town & School 40,773,235 42,650,000 Operating Expenses ‐ Town & School 12,907,327 13,065,931 Medical Insurance 12,629,650 12,629,651 General & Other Insurance 2,457,743 2,420,118 Retirement 4,255,533 4,617,253 ,,,,Debt Service ‐ Principal & Interest 8,522,421 6,457,256 TOTAL GENERAL FUND OPERATING EXPENSES ‐ PRELIMINARY 81,545,909 81,840,209 Other Articles ‐ Includes Special Fund Transfers 2,960,501 2,528,401 General Fund Transfers to Enterprise FundsTransfertoOurIslandHome1 511 4463 500 000Transfer to Our Island Home1,511,446 3,500,000 Transfer to Solid Waste Enterprise Fund (SWEF) 3,394,033 3,478,863 Add'l General Fund Subsidy to SWEF 2012‐Forward 2,498,185 2,560,640 Add'l General Fund Subsidy to SWEF‐Landfill Mining 700,000 700,000 ‐ TOTAL OTHER ARTICLE APPROPRIATIONS 11,064,165 12,767,904 OthSt t tEdit486 000433 373Other Statutory Expenditures486,000 433,373 TOTAL GENERAL FUND EXPENSES ‐ PRELIMINARY 93,096,074 95,041,485TOTAL PROJECTED REVENUE 93,157,503 TOTAL PROJECTED EXPENSES 95,041,485 PROJECTED EXCESS LEVY CAPACITY(1,883,982) September 13, 2017 8
FY2013 – FY2017 ActualFY2013 FY2014 FY2015 FY2016FY2017CAGRFY2013 FY2014 FY2015 FY2016FY2017CAGRSalaries - Town13,960,548 14,257,300 14,631,698 15,948,830 15,399,290 2.5%Salaries - School17,384,096 17,893,493 19,118,394 20,069,314 19,258,197 2.6%Transfer to Community School219,300 350,000 350,000 350,000 400,000 16.2%Operating Expenses - Town4,549,125 4,663,911 5,454,475 5,507,911 5,650,923 5.6%Operating Override - 2011 Mosquito Control22,770 71,352 88,439 89,662 89,548 40.8%Operating Expenses - School 4,136,541 5,339,878 5,700,968 5,017,328 4,510,580 2.2%Transfer to Community School‐ ‐ ‐ ‐ 65,000 naMedical Insurance7,264,450 8,369,402 9,390,000 10,271,769 10,171,618 8.8%Other Group Insurance512,790 760,645 159,596 156,094 373,971 (7.6%)General Insurance (other)1,258,289 1,284,295 1,223,757 1,258,636 1,159,798 (2.0%)Debt Service6,985,345 7,436,394 6,925,749 6,434,038 6,784,405 (0.7%)Retirement3,013,306 3,228,050 3,481,694 3,567,128 3,921,256 6.8%Total General Fund Operating Budget Items59,306,562 63,654,721 66,524,771 68,670,710 67,784,585 3.4%Other Articles & Special Revenue Fund1 730 7671 973 7122 269 0541 655 2602 971 83914 5%Other Articles & Special Revenue Fund1,730,767 1,973,712 2,269,054 1,655,260 2,971,839 14.5%Enterprise Fund Transfers9,466,178 9,023,691 7,667,385 7,805,000 9,892,785 1.1%Other Statutory Expenditures (Cherry Sheet Offsets)380,200 396,613 404,074 421,335 433,373 3.3%Total Appropriations and Other Statutory Expenditures71,300,018 75,990,406 76,979,762 71,960,025 78,904,186 2.6%September 13, 2017 9
FY2018FY2019GENERAL FUND ‐ OTHER ARTICLES APPROVED BUDGET EXPENSE PROJECTIONUnpaid Bills 20,000 20,000 p,,County Assessment 170,201 170,201 Health and Human Services 400,000 450,000 Reserve Fund 500,000 500,000 Other Post‐Employment Benefits Trust Fund (OPEB) 500,000 500,000 CapitalProjectStabilizationFund‐‐Capital Project Stabilization Fund Affordable Housing Trust Fund 500,000 ‐ Minimum Capital Funding Requirement (1) 870,300 888,200 TOTAL GENERAL FUND OTHER ARTICLES2,960,501 2,528,401 (1) The Town is required to spend on capital projects a minimum of 1% of total Town local receipts collected in the prior year plus 1% of the total property taxes collected in the prior fiscal year. (Town Code Chapter 11, § 11‐12.1)September 13, 2017 10
FY2013FY2014FY2015FY2016FY2017FY2018General Fund Subsidy 2,261,560$ 2,295,000$ 2,267,598$ 2,295,000$ 2,352,375$ 1,511,446$ Certified Retained Earnings 2,054,350 1,747,556 1,649,432 5,962,402 gCPE Payment 1,798,751 1,017,038 1,690,143 5,204,549 1,324,207 September 13, 2017 11
Free CashLocal Receipts (Q1/FY18)Union NegotiationsUnion NegotiationsHealth InsuranceRetirement Assessmentet e e t ssess e tLocal AidYear-Round NRTAAHTFOur Island Home OverrideSeptember 13, 2017 12