The URL can be used to link to this page

Home My WebLink AboutFY25 General Fund Projections SB (PDF)FY2025 GENERAL FUND PRELIMINARY BUDGET PROJECTIONS Select Board September 27, 2023 Finance Department Brian E. Turbitt, Finance Director Mariya Basheva, Assistant Town Accountant 1 PROPOSITION 2 ½ •What is Proposition 2 ½? •Proposition 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 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 Revenue. •How is the Levy Limit Calculated? •A levy limit for each community is calculated annually by the 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. 2 PROPOSITION 2 ½ •How is the Levy Limit Increased? •Allowable 2.5 percent increase •New Growth •Overrides (Permanent increases to Levy Limit) •Temporary Exclusions •Debt Exclusions •Capital Exclusions 3 PRELIMINARY FY2025 LEVY LIMIT 4 FY24 Projected FY25 Projected FY2024 Levy Limit (PROJECTED)92,860,276 106,281,786 2.5% Increase 2,321,510 2,657,045 New Growth 850,000 700,000 Override 10,250,000 - FY2024 Allowable Levy Limit (PROJECTED)106,281,786 109,638,831 Debt Exclusion - Current 11,432,308 9,983,054 Capital Exclusion 970,000 850,000 FY2024 Maximum Allowable Levy 118,684,094 120,471,885 FY2025 Preliminary Revenue Projection: FY2025 PROJECTED LOCAL RECEIPTS FY2024 FY2025 II. LOCAL RECEIPTS REVENUE PROJECTION REVENUE PROJECTION 1. Motor Vehicle Excise Taxes 3,100,000 3,100,000 2. Other Excise Taxes - Rooms 12,000,000 12,000,000 2. Other Excise Taxes - Meals 1,000,000 1,000,000 2. Other Excise Taxes - Boat 30,000 30,000 2. Other Excise Taxes - Cannabis 75,000 75,000 3. Penalties & Interest on Taxes and Excises 600,000 600,000 4. Payments in Lieu of Taxes 8,000 8,000 5. Charges for Services 29,000 29,000 6. Fees 693,300 693,300 7. Rentals 575,000 575,000 8. Other Departmental Revenue 295,000 295,000 9. Licenses and Permits 1,350,000 1,350,000 10. Fines and Forfeits 350,000 350,000 11. Investment Income 250,000 750,000 12. Miscellaneous Recurring - - 13. Miscellaneous Non-Recurring (Indirect Costs)- - Total Local Receipts 20,355,300 20,855,300 5 FY2025 REVENUE PROJECTIONS 6 FY2024 FY2025 REVENUE PROJECTION REVENUE PROJECTION GENERAL FUND REVENUE SUMMARY I. TAXES - REAL ESTATE AND PERSONAL PROPERTY 118,684,094 120,471,885 Less: Abatements & Exemptions (400,000) (400,000) II. LOCAL RECEIPTS 20,355,300 20,855,300 1. Motor Vehicle Excise Taxes 3,100,000 3,100,000 2. Other Excise Taxes (Meals, Room, Boat)13,105,000 13,105,000 3. Penalties & Interest on Taxes and Excises 600,000 600,000 4. Payments in lieu of Taxes 8,000 8,000 5. Charges for Services 29,000 29,000 6. Fees 693,300 693,300 7. Rentals 575,000 575,000 8. Other Departmental Revenue 295,000 295,000 9. Licenses and Permits 1,350,000 1,350,000 10. Fines and Forfeits 350,000 350,000 11. Investment Income 250,000 750,000 12. Miscellaneous Recurring - - 13. Miscellaneous Non-Recurring (Indirect Costs)- - III. STATE LOCAL AID 4,822,149 4,822,149 TOTAL GENERAL FUND REVENUE - PROJECTED 143,461,543 145,749,334 HISTORICAL ACTUAL REVENUE •FY2019 –FY2023 Actual FY2019 FY2020 FY2021 FY2022 FY2023 CAGR Real Estate & Property Taxes 80,038,594 82,955,094 89,169,545 95,470,203 101,015,051 6.0% Allowance for Abatements (609,195) (273,009) (357,237) (481,748) (469,882) (6.3%) Excise Tax - Motor Vehicles 3,338,861 2,946,898 3,329,078 4,228,648 4,397,378 7.1% Other Excise Tax - Boat Excise Tax 35,559 36,371 34,576 39,428 36,729 0.8% Other Excise Tax - Rooms Tax 3,807,930 5,553,749 7,980,286 12,498,515 13,237,514 36.5% Other Excise Tax - Meals Excise tax 1,168,641 1,141,414 851,755 1,445,562 1,638,059 8.8% Marijuana Local Option Tax - - 101,728 85,341 80,489 na Penalties and Interest on Taxes and Excises 605,322 587,727 793,136 932,713 1,162,325 17.7% Payment in Lieu of Taxes 8,067 12,066 16,524 13,696 4,877 (11.8%) Charges for Services 39,648 29,438 75,471 76,048 70,462 15.5% Fees 1,041,174 855,974 1,138,537 1,198,345 1,153,973 2.6% Rentals 678,913 660,077 640,115 612,436 770,261 3.2% Other Departmental Income (1)257,246 864,247 731,743 1,236,477 584,717 22.8% License & Permits 1,649,134 1,323,342 1,747,956 1,949,297 1,909,182 3.7% Fines and Forfeits 362,362 284,336 267,041 391,526 397,764 2.4% Investment Income 342,299 436,896 220,510 261,320 2,371,278 62.2% Miscellaneous Recurring Income (RDS Retiree Drug Subsidy)- - na Miscellaneous Non-Recurring Income (Indirect Costs, transfers)827,409 616,300 616,300 467,300 500,300 (11.8%) State Local Aid 3,531,908 3,933,911 3,928,363 3,961,774 4,424,675 5.8% Total Revenues 97,123,872 101,964,830 111,285,427 124,386,879 133,285,150 8.2% 7 FY2025 PRELIMINARY EXPENDITURES FY2024 FY2025 GENERAL FUND EXPENSE SUMMARY APPROVED BUDGET BUDGET PROJECTION Salaries - Town 25,135,970 26,677,491 Salaries - School 31,096,602 32,944,462 Transfer to Community School 600,000 600,000 Salaries - Town & School 56,832,572 60,221,953 Operating Expenses - Town 11,542,109 9,982,609 Operating Override - 2011 Mosquito Control 181,458 185,994 Operating Expenses - School 6,230,385 6,432,526 Transfer to Community School - - Operating Expenses - Town & School 17,953,952 16,601,129 Medical Insurance - Active Employees 12,251,348 13,476,483 Medical Insurance - Retired Employees 4,083,783 4,492,161 Medical Insurance 16,335,131 17,968,644 Laborer's Union Pension 75,000 75,000 Workers' Compensation 348,270 410,959 Life Insurance 6,500 6,500 Compensation Unemployment 175,000 175,000 General Insurance (other)3,487,161 4,114,850 Total General & Other Insurance 4,091,931 4,782,309 Retirement 6,834,598 7,415,539 Debt Service - Principal & Interest 14,201,260 12,447,065 TOTAL GENERAL FUND OPERATING EXPENSES - PRELIMINARY 116,249,445 119,436,640 8 FY2025 PRELIMINARY EXPENDITURESFY2024FY2025 APPROVED BUDGET BUDGET PROJECTION Other Articles - Includes Special Fund Transfers 4,313,918 4,611,543 Unpaid Bills 13,197 - County Assessment 179,075 183,552 Health and Human Services 650,000 650,000 Special Purpose Stabilization for Substance Abuse 175,000 175,000 Reserve Fund 500,000 500,000 Other Post-Employment Benefits Trust Fund (OPEB) 500,000 500,000 Capital Project Stabilization Fund - - Stabilization Fund - - Special Purpose Stabilization Fund for Town Employee Accrued Liabilities - - Affordable Housing Trust Fund 1,013,044 1,013,044 Town & School Minimum Capital Funding Requirement 1,283,602 1,589,947 General Fund Transfers to Enterprise Funds & Other Funds Transfer to Our Island Home 5,253,125 5,384,453 Transfer to Solid Waste Enterprise Fund (SWEF)3,935,081 4,033,458 Add'l General Fund Subsidy to SWEF 2012-Forward 2,897,129 2,969,557 Add'l General Fund Subsidy to SWEF 2023-Forward 3,750,000 3,843,750 Affordable Housing Trust Fund Override 6,500,000 6,662,500 Transfer to Stormwater 500,000 512,500 TOTAL OTHER ARTICLE APPROPRIATIONS 26,974,252 27,842,760 Other Statutory Expenditures 1,461,707 1,461,707 Overlay and other deficits 1,461,707 1,461,707 TOTAL GENERAL FUND EXPENSES - PRELIMINARY 144,685,404 148,741,107 TOTAL PROJECTED REVENUE - 145,749,334 TOTAL PROJECTED EXPENSES 148,741,107 PROJECTED EXCESS LEVY CAPACITY (2,991,773) 9 HISTORICAL ACTUAL EXPENSES •FY2019 –FY2023 Actual FY2019 FY2020 FY2021 FY2022 FY2023 CAGR Salaries - Town 18,625,578 19,897,406 19,721,693 20,733,475 22,588,206 4.9% Salaries - School 23,180,307 24,656,590 25,404,019 24,097,032 27,210,851 4.1% Transfer to Community School 450,000 500,000 550,000 500,000 550,000 5.1% Operating Expenses - Town 6,606,154 6,577,626 7,108,141 6,682,683 8,861,083 7.6% Operating Override - 2011 Mosquito Control 125,756 131,045 110,500 93,700 122,050 (0.7%) Operating Expenses - School 5,800,498 5,183,038 5,748,955 6,418,877 6,830,639 4.2% Transfer to Community School - - - - na Medical Insurance 11,206,133 12,495,203 12,907,311 12,759,436 14,021,309 5.8% Other Group Insurance 394,309 215,022 539,736 520,698 616,249 11.8% General Insurance (other)1,178,579 1,387,540 1,404,370 1,803,379 1,991,163 14.0% Debt Service 7,125,456 8,912,852 9,208,243 9,733,804 11,315,721 12.3% Retirement 4,420,538 4,750,913 5,639,866 5,666,710 5,846,976 7.2% Total General Fund Operating Budget Items 79,113,308 84,707,235 88,342,834 89,009,793 99,954,246 6.0% Other Articles & Special Revenue Fund 2,325,648 2,094,457 1,899,901 2,895,435 7,858,309 35.6% Other Articles (Incl. Non-Appropriated Expenses)7,447 (100.0%) County Assessment 170,201 170,201 170,201 174,455 174,707 0.7% Health and Human Services 450,000 450,000 650,000 650,000 650,000 9.6% Reserve Fund - - 500,000 500,000 na Other Post-Employment Benefits Trust Fund (OPEB) 500,000 500,000 - 500,000 1,000,000 18.9% Capital Project Stabilization Fund - - - - 1,250,000 na Stabilization Fund 1,500,000 na Town Employee Accrued Liability Stabilization 1,500,000 na Affordable Housing Trust Fund 300,000 - - - (100.0%) Capital na Town & School Combined / Non-Recurring (2)898,000 974,256 1,079,700 1,070,980 1,283,602 9.3% Enterprise Fund Transfers 8,250,970 8,465,845 9,843,105 12,002,995 13,171,306 12.4% Transfer to Our Island Home 1,511,446 2,276,181 3,500,000 5,000,000 5,125,000 35.7% Transfer to Solid Waste Enterprise Fund (SWEF)6,039,524 6,189,664 6,343,105 6,502,995 8,046,306 7.4% Add'l General Fund Subsidy to SWEF 2012-Forward na Add'l General Fund Subsidy to SWEF-Landfill Mining 700,000 - - - (100.0%) Transfer to Solid Waste (Free Cash)- - - 500,000 na Transfer to Airport - - - - na Transfer to Siasconset Water - - - - na Other Statutory Expenditures (Cherry Sheet Offsets)481,079 513,116 999,240 959,730 1,169,579 24.9% Total Appropriations and Other Statutory Expenditures 90,171,005 95,780,653 101,085,080 104,867,953 122,153,440 7.9% 10 To Be Determined •Select Board Priorities •Strategic Plan Potential Revision/New Priorities •Town Administration Priorities (New & Continuing) •New Priorities •Housing & Real Estate Office Staffing •Continuing Priorities •Solid Waste long-term planning •Public Outreach •Facilities –personnel, professional services for maintenance & repairs, administrative management, results from facilities maintenance study •Employee retention/succession strategies (training, certifications, etc.) •Infrastructure and Capital projects funding •Project Management/Grant Administration –professional services •Stormwater -personnel, professional services, equipment •Public Safety -personnel, equipment •Central Fleet Maintenance -results from central fleet maintenance assessment study •Citizen Warrant Articles •School Priorities •Free Cash •Town expects Free Cash to be certified the week of October 9th, 2023 •Local Receipts (Q1/FY24) •Health Insurance •Local Aid •NRTA (Service Changes) •PFAS •Potential Fee Adjustments •Competing Capital Priorities 11 Brian E. Turbitt, Finance Director bturbitt@nantucket-ma.gov