HomeMy WebLinkAboutTown Admin GF Budget for BoS - FY19 FINALTownAdministrationTown AdministrationFiscal Year 2019General Fund Budget RecommendationsRecommendationsDecember 13, 2017Board of Selectmen’s Meeting
FY 2019 General Fund BudgetOverview•RevenueOverview•Revenue–Total Projected Revenues: $94,830,397•Net of property abatements•Expenses–Total Projected Expenses: $94,581,813212/11/2017
FY 2019 General Fund BudgetSummaryComparisonSummary ComparisonREVENUES FY2018 FY2019 $ Change % ChangePropertyTax78 166 68879 820 6061 653 91821%Property Tax78,166,688 79,820,606 1,653,918 2.1% Local Receipts (All other) 2,742,720 2,535,680 (207,040) (7.5%) Motor Vehicle Excise 2,400,000 2,450,000 50,000 2.1% Rooms and Meals Tax 3,954,000 3,850,000 (104,000) (2.6%) Licenses and Permits 1,500,000 1,479,100 (20,900) (1.4%) State Aid (1) 3,271,156 3,320,527 49,371 1.5% Free Cash 1,110,500 1,125,900 15,400 1.4% Other Available Funds 65,000 ‐ (65,000) (100.0%) TOTAL REVENUES 93,210,064 94,581,813 1,371,749 1.5%EXPENDITURESMunicipal Departments 26,445,282 27,099,244 653,962 2.5% SchoolDepartment28 016 64229 269 6421 253 00045%School Department28,016,642 29,269,642 1,253,000 4.5% Non‐Departmental 27,841,404 26,125,777 (1,715,627) (6.2%) Special Appropriations 10,906,736 12,087,150 1,180,414 10.8% TOTAL EXPENDITURES 93,210,064 94,581,813 1,371,749 1.5%312/11/2017(1) FY 2019 state aid represents level funding from FY 2018 approved figure.•See Appendix A for detailed breakdown.
FY 2019 General Fund BudgetProjectedRevenueProjected RevenueRooms and Meals4%Licenses and StateAidLocal Receipts ‐All Other2%Motor Vehicle3%4%Permits2%State Aid3%Tax Revenue86%412/11/2017
FY 2019 General FundProjectedExpensesProjected ExpensesSpecial AitiMunicipal Departments28 7%Appropriations12.8%28.7%Non‐Departmental27.6%School Department30.9%512/11/2017
FY 2019 General Fund BudgetExpenseCategoriesCategory FY 2019 Current ProjectionNotesExpense CategoriesTown Operational Expenses$7,653,144 0.1% decreaseTown Operational EIR’s (1)$571,900 Included in Town expensesTown Salaries$19,446,100 Contracts in negotiations; c/b allowanceTown Personnel EIR’s$541,000 Included in Town salarieshll$School Operational Expenses$5,407,0874.4% increaseSchool Operational EIR’s$228,000 Included in School expensesSchool Salaries$23,412,555 Contracts in negotiations; c/b allowanceSchool Personnel EIR’s$455,000 Included in School salaries612/11/2017(1) EIR = Expense Increase Request, excludes AHTF.
FY 2019 General Fund BudgetFixedCostsCategory FY 2019 Current Projection% Change over FY 2018 BudgetFixedCostsHealth InsuranceActive$9,162,145 3.3% decreaseRetiree$3,054,048 3.3% decreaseGeneral Insurance$2,275,830 7.4% decreaseDebt Service$7,016,501 per established scheduleRetirement$4,617,253 8.5% increaseEnterprise Fund Subsidies$8,250,949 1.8% increase712/11/2017•See Appendix A for detailed breakdown.
FY 2019 General Fund – Special AppropriationsCategory FY 2019 Current Projection% Change over FY 2018 BudgetHealth & Human Services$450,000 12.5% increaseCounty Assessment$170,201 No changeReserve Fund$500,000 No changeUnpaidBills$20 000NochangeUnpaid Bills$20,000No changeOther Post Employment Benefits (OPEB)$500,000 No changeOverlay&OtherDeficits$0$0Overlay & OtherDeficits$0$0Cherry Sheet Charges$498,000 2.5% increaseCommunity School$450,000 3.2% decrease Affordable Housing Trust Fund$800,000 60% increaseMin Cap Funding Req.$898,000 n/a ‐1% of prior year revenueTOTAL EXPENSES$94,581,8131.6% increase812/11/2017
FY 2019 Town Expense Increase Requests(i l d diddbdldihl&AHTF)(included in recommendedbudget, excluding school & AHTF)•$ 3,729,089 Submitted Requests•$ 1,256,900 RecommendedOti$273 900–One‐time$ 273,900–Ongoing $ 983,000•TobefundedthroughavailabletaxlevybudgetadjustmentsTo be funded through available tax levy, budget adjustments, alternate funding sources, free cash, potential revenue increases912/11/2017
FY 2019 Recommended Town ExpenseIncreaseRequestsExpense Increase Requests(1)Department Description of Expense RequestOne-Time or OngoingApprovedEIRsPersonnel Expense Increase Requests (EIRs)DPW Capital Project Manager / DPW Facilities Director Ongoing 150,000$ DPWAdd'l MechanicOngoing89 000DPWAddl MechanicOngoing89,000 HR Benefits Coordinator Ongoing 90,000 PLUS Building Inspector (PT) Ongoing 72,000 PLUS Senior Planner / Code Enforcement Ongoing 114,000 Town Admin Open Meeting Law (OML) Compliance Position Ongoing 95,000 Various Increase in Overtime, Shift Coverage and Reclassifications Ongoing 75,000 Total Personnel Expense Increase Requests685,000$ Operating Expense Increase Requests (EIRs)Town Admin Board of Selectmen strategic plan implementation One-time 50,000 Town Admin (Facilities) Mobile bathroom trailer for Surfside or Cisco Beach One-time 50,000 Health (Central Fleet) Replacement of inspection vehicle One-time 35,000 Nat Resources (Central Fleet) Replacement of department vehicle One-time 35,000 Fire Siasconset fire station building study One-time 30,000 Fire Purchase of mechanical CPR devices One-time 16,000 Town Clerk Increase for election-related expenses One-time 15,000 IS GIS MUNIS self-service project One-time 11,400 Town ClerkVoter check-in tabletsOne-time6,500Town ClerkVoter check in tabletsOne time6,500 DPW / Facilities Increase in overall Facilities and Public Works budget Ongoing 225,000 Town Admin Municipal employee housing rent Ongoing 34,000 Town Admin NCTV annual meeting recording increase Ongoing 27,000 Natural Resources Pond management program Ongoing 25,000 IS GIS Support services for virtualization project Ongoing 12,000 Total Operating Expense Increase Requests571,900$ 1012/11/2017(1) Includes health insurance benefits.pgp q,Total Town Personnel & Operational Expense Increase Requests 1,256,900$
FY 2019 Town Expense Increase RequestsdiilFunding Source DetailFunding Source AmountTax Levy & Other General Revenues $839,000FCh$192 900Free Cash$192,900Other Funds $81,000Ambulance Reserve $16,000Beach Improvement Revolver $65,000Departmental Budget Reallocations $144,000Total‐AllFundingSources$1 256 900Total All Funding Sources$1,256,9001112/11/2017
Preliminary Free Cash Recommendation(SubjecttoChange)(Subject to Change)General Fund Certified Free Cash$6,215,883Fund Town Expense Increase Requests (one‐time) $192,900Fund School Expense Increase Requests (one‐time) $133,000Fund Town & School Capital Projects $4,605,416dff d bld$Fund Affordable Housing Trust Fund$800,000Unallocated Free Cash $484,56712/11/201712
Our Island Home–Current structure does not allow for full funding of Town and School priorities–Options could free up additional funds in the General FundOur Island Home FY 2019 Budget Funding AlternativesOption #1Decrease Subsidy / Option #2Cover Deficit Option #3Status QuoIncrease Use of Retained EarningsSolely with Retained EarningsCover Deficit with Tax OverrideRevenue $4,284,095Expenses (8,199,762) Operational Deficit (3,915,667) (3,915,667) (3,915,667) (3,915,667) Transfer from Retained Earnings 2,404,221 3,159,944 3,915,667 ‐ General Fund Subsidy 1,511,446 755,723 ‐ ‐ Tax Override‐ ‐ ‐ 3,915,667 Operational Deficit After Transfers‐ ‐ ‐ (3,915,667) Certified Retained Earnings as of July 1, 2017 5,321,795 Less: Transfer from Retained Earnings (2,404,221) (3,159,944) (3,915,667) ‐ Projected Retained Earnings 2,917,574 2,161,851 1,406,128 5,321,795 1312/11/2017–Recommendation: Option #1
Potential Additional Town & SchoolExpense Increase Requests with Add’l FundingOne-Time Department Description of Expense Request or Ongoing FundingPersonnel Expense Increase Requests (EIRs)Town Admin Real Estate Specialist Ongoing TBDDPW Add'l Mechanic Ongoing TBDDPW Add'l Sr Equipment Operators (1 of 2 requested)OngoingTBDqp p ( q )ggDPW Add'l Laborer Ongoing TBDPolice Parking Enforcement Officer Ongoing TBDPolice Dispatch PT to FT position Ongoing TBDTotal Personnel Expense Increase Requests-$ Operating Expense Increase Requests (EIRs)DPW / Facilities Allocation to address various requests Ongoing TBDDPW / Mosquito Control Increase in service area for mosquito control program Ongoing TBDTtlO ti E I R t$Total Operating Expense Increase Requests-$ Total Town Personnel & Operational Expense Increase Requests -$ School Personnel & Operational Expense Increase Requests TBD1412/11/2017
Administration & Board of Selectmen Goals and PrioritiesforFY2019Priorities for FY 2019•Balanced budget –within projected revenue•Capital and operational investment in infrastructure/facilities•Project management•Staffingforincreasedserviceandseasonaldemands;andtomeetprioritiesStaffing for increased service and seasonal demands; and to meet priorities•Water quality •Continued health insurance cost mitigation effortsSil•Strategic Plan•Housing (community and employee)•Public information and transparency goals including use of technology•Focus on Human Resources regulatory compliance and management1512/11/2017
Initiatives/Needs/Goals Addressed withBudgetRecommendations•Facilities, infrastructure & equipment maintenancewith Budget Recommendations-Additional funding proposed in Public Works and Facilities•Staffing/professional Services to address high activity and/or mandates-PLUS, Town Admin, HR, DPW-Project management oversight-Adequate benefit and HR regulatory compliance oversight•Water quality-Natural Resources and Nantucket Pond Coalition projects•Code enforcement-Dedicated staffing resources (PLUS)•Plan updates and implementation-Hazard Mitigation, Coastal Resiliency, Open Space & Recreation (PLUS, Natural Resources)•Community public health (HHS)1612/11/2017
Efforts to Reduce Expenses and ffi i•PersonnelIncrease Efficiency, Transparency-Review staffing when key positions become vacant-Combine/consolidate duties where appropriate-Cross‐train staff where appropriate-Increase training and educational opportunities so as to reduce reliance on consultants, reduce legal fees and increase professional qualifications and expertise (i.e. technical skills such as project management)Ridfiill/ddli i•Review and refine internal controls/processes, procedures and policies•Seek 2ndCompact Community grant•Seek grant for Recycling Coordinator position for Solid Waste Enterprise Fund1712/11/2017
Outstanding Items and Current Unknowns•StrategicPlan•Strategic Plan•Potential Future Tax Overrides–Our Island Home–NRTA•Collective Bargaining•State Aid impact•Chapter 90•Harbor Place Project•FederalTaxReformandOtherLegislativeChanges•Federal Tax Reform and Other Legislative Changes•Citizen Warrant Articles Potential Cost Impact1812/11/2017
Next Steps•December 19: Town Administration FY 2019 Budget presentation to School CommitteeCommittee•January 3: Board of Selectmen public hearing; endorsement of recommended FY 2019 General Fund Budget•January8:ReviewofRecommendedBudgetwithFinanceCommitteeJanuary 8: Review of Recommended Budget with Finance Committee•January 17: Review of Enterprise Fund Budgets and County with Board of Selectmen/County Commissioners •Mid‐January –mid‐March: Finance Committee review of General Fund & yEnterprise Fund budgets; other financial appropriations•Tuesday, April 3: Annual Town Meeting (2018)1912/11/2017
General Fund Revenue BreakdownFY2014FY2019FY 2014‐FY 2019$64 0m$66.8m$69.3m$74.1m$78.2m$80.3mReal Estate & Personal Property TaxLocal ReceiptsState AidFree Cash$64.0m$13 7m$$11.9m$11.4m$13.7m$12.9m$10.6m$10.3m$1.7m$2.3m$3.2m$3.3m$3.3m$0.3m$5.2m$5.4m$6.6m$6.2m$0.0mFY2014 FY2015 FY2016 FY2017 FY2018 (Budget) FY2019 (Budget)2012/11/2017
Town Expense BreakdownFY2016FY2019FY 2016‐FY 2019$7 7m$7.7m$6.7m$8.5m$7.0mDebt ServiceOperationsRetirementMedical &General InsuranceSalaries$14 0$3.6m$3.9m$4.3m$4.6m$5.6m$6.0m$7.7m$6.7m$$11.5m$12.0m$14.6m$14.0m$15.9m$16.5m$18.1m$19.4mFY2016(A t l)FY2017(A t l)FY2018(B d t)FY2019(B d t)12/11/201721FY2016 (Actual)FY2017 (Actual)FY2018 (Budget)FY2019 (Budget)
General Fund Personnel HistoryFY 2012‐FY 2019250300TownSchool** ***15020050100* Full Time Equivalent Calculation = 33‐40 Hrs 1.0; 20‐32 Hrs 0.50; Seasonal = 0.250FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019**For comparative purposes, Town Personnel History does not include Our Island Home*** Education Personnel History includes Community School Employees2212/11/2017
Appendix12/11/201723
FY 2019 Status of Capital Projects RequestsGeneralFundGeneral FundDepartment Projects Submitted Amount()$FireSelf Contained Breathing Apparatus (SCBA)$90,720Police/MarineRenovation Town Pier Office Bldg/Public Restrooms $3,450,000DPWParks $50,000DPWTrafficDataCollectionSystem$75,000DPWTraffic Data Collection System$75,000DPWMulti‐Use Paths $100,000DPWMassasoit Bridge ‐ Engineering $250,000DPWMillies Bridge ‐ Engineering $250,000DPWUpgrades and Renovations to Concessions $250,000DPWCCTV ‐ Continuation of work begun in FY18 $100,000$DPWVacon Truck (related to Stormwater)$350,000DPWSurfside Area Roads $534,800DPWVehicle Replacements $830,000DPWIsland‐Wide Road Repair $1,000,000DPWTownwide Facility Repairs $1,000,000DPWStormwaterImprovements$3,500,000DPWStormwater Improvements$3,500,000DPWDPW Garage $18,000,000TransportationOld South Corridor $15,000,000TransportationBartlett/Surfside Roundabout $65,077TransportationPleasant Street Sidewalk $452,000$12/11/201724Transportation6 Fairgrounds Area Road$1,314,800Transportation4 Corners Intersection $109,155
FY 2019 Status of Capital Projects RequestsGeneralFundcont’dGeneral Fund cont dDepartment Projects Submitted Amount/$IT/GISServer Virtualization$190,000SchoolPlayground $400,000SchoolHigh School Vestibule $450,000TotalGeneralFundCapital$47 811 552Total General Fund Capital$47,811,552General Fund Capital Funding SourcesGeneral Fund Debt Exclusion $38,950,000Free Cash$4,605,416Capital Exclusion $1,835,720Capital from Operating Budget $898,000Prior Year Capital Article Reappropriations $100,000AHTF$400,000State Grant$1,000,000$, ,Bond Premium Proceeds $22,416Total other funding sources $47,811,55212/11/201725
FY 2019 Status of Capital Projects RequestsEnterpriseFundsEnterprise FundsEnterprise Fund Projects Submitted AmountAi tAi tAIPPjt$6 260 000AirportAirport AIP Projects$6,260,000AirportInfastructure Projects $2,723,000AirportAirport Amintenance and Equipment $482,000AirportAirport Security $50,000Subtotal Airport $9,515,000OIl dHSl tlPjtFdi$625 000Our Island HomeSuppplemental Project Funding$625,000Subtotal OIH $625,000SewerPinevalley Pump Station $250,000SewerAirport Rd Pump Station $250,000SewerPick‐up Truck $60,000SCMOM(C it /M i t/OPS/M t$2 000 000SewerCMOM (Capacity/Maint/OPS/Management$2,000,000SewerTown Water Main to Plant and Housing $1,000,000SewerBuilding Foundaiton and Utilities $200,000SewerPerimeter Fencing $1,000,000SewerSparks Ave, Sewer Rehab $500,000SewerReplace Water Mains with WWCO $5,524,413SewerSurfsideAreaSewerImprovements$5 100 000SewerSurfside Area Sewer Improvements$5,100,000SewerSurfside WWTF Phase 2 Upgrades $1,100,000SewerReplace Sewer Mains within WWCO project areas $3,421,700SewerNatGrid L8 Feeder Project $1,035,000SewerJetties Beach Bathing Beach Road $451,150Subtotal Sewer $21,892,26312/11/201726
FY 2019 Status of Capital Projects Requests EnterpriseFundscont’dEnterprise Fundscont dEnterprise Fund Projects Submitted Amount$Solid WasteContinuation of Landfill Mining (7th Year)$700,000Solid WasteMRF Cardboard Baler Replacement $300,000Solid WasteMRF Sorting Station Repairs $175,000Subtotal Solid Waste $1,175,000SiasconsetWaterWaterTankMaintenance$303,000Siasconset WaterWater Tank Maintenance$303,000Subtotal Siasconset Water $303,000WannacometWater Main Replacement $3,533,230WannacometWater Tank Replacement $658,000Subtotal Wannacomet Water $4,191,230Enterprise Fund Capital Funding Sources:$37,701,493Borrowing Authorizations $23,749,113Airport AIP and State Grants $5,947,000Tax Revenue and Free Cash $700,000OIHRetainedEarnings$625,000OIH Retained Earnings$625,000Sewer Retained Earnings and Operating Budget $1,711,150Solid Waste Retained Earnings $475,000Wannacomet Borrowings $4,191,230Sconset Borrowings $303,00012/11/201727Total Funding Sources $37,701,493
FY 2019 General Fund Budget Breakdown – RevenuesBudget BudgetFY2018 FY2019 $ Change % ChangeTax Revenue LimitationsLevy Limit from Prior Year 68,716,742$ 71,686,428$ 2,969,686$ 4.3% Add: 2 1/2 % increase1 717 919179216174 24243%Add: 2 1/2 % increase1,717,919 1,792,161 74,242 4.3% Add: Prop 2.5% operating override - - - naAdd: new growth estimate 1,251,767 800,000 (451,767) (36.1%) Add: operating override - - - naLevy Limit for Current Year 71,686,428 74,278,588 2,592,161$ 3.6% Add: Debt Exclusion 7,689,196 6,691,602 (997,594) Maximum Allowable Levy for Current Year 79,375,624$ 80,970,190$ 1,594,567$ 2.0% y,,$,,$,,$OVERLAY(900,000) (900,000) - - Net available: 78,475,624$ 80,070,190$ 1,594,567$ 2.0% State Aid 3,271,156$ 3,320,527$ 49,371$ 1.5% Local Receipts: Motor Vehicle Excise 2,400,000 2,450,000 50,000 2.1% Rooms and Meals Tax 3,920,000 3,850,000 (70,000) (1.8%) Licenses and Permits 1,500,000 1,479,100 (20,900) (1.4%) Local Receipts - All Other 2,742,720 2,534,680 (208,040) (7.6%) Total Local Receipts 10,562,720 10,313,780 (248,940) (2.4%) Total Revenue 92,309,500$ 93,704,497$ 1,394,998$ 1.5% Other SourcesOther Sources 65,000 - (65,000) (100.0%) Free Cash Used 1,110,500 1,125,900 15,400 1.4% Excess Overlay - Total Revenue and Other Sources93,485,000$ 94,830,397$ 1,345,398$ 1.4% Total Expenses and Other Uses (budget reprogramming)93,210,064$ 94,581,813$ 1,371,749$ 1.5% 12/11/201728p(g pg g),,$,,$,,$
FY 2019 General Fund Budget Breakdown – ExpensesBudgetBudgetggFY2018 FY2019 $ Change% ChangeGeneral Fund Operating Budget Items: Salaries - Town (includes allowance for collective bargaining)17,716,373$ 18,905,100$ 1,188,727$ 6.7% Town Expense increase Requests- Salaries349,307 541,000 191,693 54.9% Salaries - School (includes allowance for collective bargaining)21,115,849 22,957,555 1,841,706 8.7% School Expense increase Requests- Salaries1,191,706 455,000 (736,706) (61.8%) Transfers to community school400,000 450,000 Subtotal Salaries 40,773,235$ 43,308,655$ 2,535,420$6.2% Operating Expenses Town:6 375 0516970863595 81293% Operating Expenses, Town:6,375,051 6,970,863 595,812 9.3% +Town Expense Increase Requests-Operating1,180,500 571,900 (608,600) (51.6%) Operating Override - 2011 Mosquito Control 107,689 110,381 2,692 2.5% Operating Expenses, School 4,976,793 5,179,087 202,294 4.1% +School Expense Increase Requests-Operating202,294 228,000 25,706 12.7% Transfers to community school65,000 - (65,000) (100.0%) Subtotal Expense 12,907,327$ 13,060,231$ 152,904$ 1.2% Group Medical Insurance- Active Employees 9,472,238 9,162,145 (310,093) (3.3%) Group Medical Insurance-Retired Employees3,157,4133,054,048(103,364)(3.3%) Group Medical Insurance Retired Employees3,157,413 3,054,048 (103,364) (3.3%) General Insurance (all other insurance)2,457,743 2,275,830 (181,913) (7.4%) Subtotal Insurance 15,087,393$ 14,492,023$ (595,370)$ (3.9%) Debt Service 8,522,421$ 7,016,501$ (1,505,920)$ (17.7%) Retirement 4,255,533$ 4,617,253$ 361,720$ 8.5% Total General Fund Operating Budget Items 81,545,909$ 82,494,663$ 948,754$ 1.2% Other Articles Unpaid Bills20,000 20,000 - - Reserve Fund 500,000 500,000 - - Health and Human Services 400,000 450,000 50,000 12.5% County Assessment 170,201 170,201 - - Other Post Employment Benefits (OPEB / GASB45) 500,000 500,000 - - Affordable Housing Trust Fund 500,000 800,000 300,000 60.0% Capital- naGeneral Fund budgeted from revenue (Town Bylaw 11-12.1)- naTown Capital (Non Recurring)435 150449 00013 85032% Town Capital (Non-Recurring)435,150 449,000 13,850 3.2% School Capital (Non-Recurring)435,150 449,000 13,850 3.2% Enterprise Fund Transfers- na Transfer to Enterprise Fund (Our Island Home - Beginning FY2011)1,511,446 1,511,446 - - Add: Additional Subsidy from Free Cash (Our Island Hom - - - na Transfer to Enterprise Fund (SWEF Operating Overrides 1999/2006)3,394,033 3,478,863 84,830 2.5% Add: Additional General Fund Subsidy to SWEF 2012-Forward 2,498,185 2,560,640 62,455 2.5% Add: Additional General Fund Subsidy to SWEF-Landfill Mining 700,000 700,000 - - Total Other Article Appropriations 11,064,165$ 11,589,150$ 524,985$ 4.7% 12/11/201729Other Statutory Expenditures Overlay and other deficits - - - na Cherry Sheet Offsets and Charges 486,000 498,000 12,000 2.5% Total Appropriations and Other Statutory Expenditures 93,210,064$ 94,581,813$ 1,371,749$ 1.5%
Historical InformationOur Island HomeFY2013FY2014FY2015FY2016FY2017(1)General Fund Subsidy 2,261,560$ 2,295,000$ 2,267,598$ 2,295,000$ 2,762,535$ Certified Retained Earnings 2,054,350 1,747,556 1,649,432 5,962,402 5,321,795 CPE Payment 1,798,751 1,017,038 1,690,143 5,204,549 1,324,207 20132014201520162017Stabilization and Trust FundsGeneral Stabilization $3,740,988 $4,776,308 $4,834,733 $5,044,535 $5,053,411Capital Stabilization $0 $0 $1,000,000 $1,250,000 $1,250,000OPEB Trust Fund $250,111 $248,522 $765,994 $1,341,213 $1,903,825Certified Free Cash20132014201520162017Certified Free Cash $5,671,200 $5,201,357 $5,405,506 $6,642,219 $6,215,88312/11/201730(1) CPE payment received in FY2016 represented two years of payments.