Loading...
FY21 General Fund Projections as of September 18, 2019FY21 GENERAL FUND PRELIMINARY BUDGET PROJECTIONS Finance Department Brian E. Turbitt, Finance Director 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. 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 FY21 LEVY LIMIT FY2020 Levy Limit (PROJECTED)77,330,627 2.5% Increase 1,933,270 New Growth 700,000 FY21 Allowable Levy Limit 79,963,897 Debt Exclusion - Current 9,231,623 FY2021 Maximum Allowable Levy 89,195,520 . FY2021 Revenue Projection: LOCAL RECEIPTS •Local Receipts are projected to increase by 10% over FY2020 estimates FY2020 FY2021 II. LOCAL RECEIPTS PROJECTION PROJECTION 1. Motor Vehicle Excise Taxes 2,450,000 2,875,000 2. Other Excise Taxes - Rooms 2,950,000 3,450,000 2. Other Excise Taxes - Meals 904,000 1,000,000 2. Other Excise Taxes - Boat 30,000 30,000 3. Penalties & Interest on Taxes and Excises 545,000 545,000 4. Payments in Lieu of Taxes 8,000 8,000 5. Charges for Services 29,000 29,000 6. Fees 910,300 910,300 7. Rentals 486,700 486,700 8. Other Departmental Revenue 186,430 186,430 9. Licenses and Permits 1,479,100 1,479,100 10. Fines and Forfeits 200,000 250,000 11. Investment Income 125,000 200,000 12. Miscellaneous Recurring 11,250 - 13. Miscellaneous Non-Recurring (Indirect Costs)- - Total Local Receipts 10,314,780 11,449,530 A) Local Estimated Receipts estimate does not include short-term rental tax estimates. The town cannot plan for this in its budgeting until FY22 B) Local Estimated Receipts estimate does not include any provisions for marijuana tax receipts. The town cannot plan for this in its budgeting until FY22 FY21 REVENUE PROJECTIONS FY2020 FY2021 PROJECTION PROJECTION GENERAL FUND REVENUE SUMMARY I. TAXES- REAL ESTATE AND PERSONAL PROPERTY 86,161,922 89,195,520 Less: Abatements & Exemptions (1,000,000) (1,000,000) II. LOCAL RECEIPTS 10,314,780 11,449,530 III. STATE LOCAL AID 3,320,527 3,880,200 TOTAL GENERAL FUND REVENUE - PROJECTED 98,797,229 103,525,250 HISTORICAL ACTUAL REVENUE •FY2015 –FY2019 Actual FY2015 FY2016 FY2017 FY2018 FY2019 CAGR Real Estate & Property Taxes 66,762,990 69,288,111 74,166,729 78,242,069 80,038,594 4.6% Allowance for Abatements (1,333,479) (985,952) (981,500) (423,438) (609,195) (17.8%) Excise Tax - Motor Vehicles 2,512,104 2,674,907 2,753,546 2,953,243 3,338,861 7.4% Other Excise Tax- Boat Excise Tax 39,434 36,132 33,277 37,136 35,559 (2.6%) Other Excise Tax- Rooms Tax 3,041,496 3,428,604 3,498,400 3,622,242 3,807,930 5.8% Other Excise Tax- Meals Excise tax 908,283 997,903 1,061,396 1,102,316 1,168,641 6.5% Penalties and Interest on Taxes and Excises 882,782 657,302 686,444 584,171 605,322 (9.0%) Payment in Lieu of Taxes 31,328 33,231 14,706 8,794 8,067 (28.8%) Charges for Services 40,656 35,103 35,871 32,522 39,648 (0.6%) Fees 800,972 953,023 1,062,236 1,064,975 1,041,174 6.8% Rentals 457,510 743,995 489,713 708,532 678,913 10.4% Other Departmental Income (1)104,758 1,065,369 245,385 607,672 257,246 25.2% License & Permits 1,449,772 1,712,508 1,698,581 1,614,695 1,649,134 3.3% Fines and Forfeits 242,354 238,387 299,237 315,027 362,362 10.6% Investment Income 172,420 159,743 135,292 238,949 342,299 18.7% Miscellaneous Recurring Income (RDS Retiree Drug Subsidy)44,762 11,388 - - - (100.0%) Miscellaneous Non-Recurring Income (Indirect Costs, transfers)589,800 301,457 629,765 619,697 827,409 8.8% State Local Aid 2,346,913 3,188,722 3,287,323 3,356,737 3,531,908 10.8% Total Revenues 79,094,855 84,539,933 89,116,401 94,685,339 97,123,872 5.27% (1) In FY2016, Other Department Income included $895,315 in governmental aid as a result of storm damange (Juno). FY21 PRELIMINARY EXPENDITURES FY2020 FY2021 GENERAL FUND EXPENSE SUMMARY APPROVED BUDGET EXPENSE PROJECTION Salaries - Town 21,652,600 21,652,600 Salaries - School 24,919,022 24,919,022 Transfer to Community School 500,000 500,000 Salaries - Town & School 47,071,622 47,071,622 Operating Expenses - Town 7,385,863 7,533,580 Operating Override - 2011 Mosquito Control 160,381 164,391 Operating Expenses - School 5,217,620 5,321,972 Transfer to Community School - - Operating Expenses - Town & School 12,763,864 13,019,943 Medical Insurance- Active Employees (1)10,091,572 10,999,813 Medical Insurance- Retired Employees 3,186,812 3,473,625 Medical Insurance 13,278,384 14,473,439 Laborer's Union Pension 44,880 45,778 Workers' Compensation & Life Insurance 246,250 267,181 Compensation Unemployment 175,000 175,000 General Insurance (other)1,983,520 2,281,048 General & Other Insurance 2,449,650 2,769,007 Retirement 4,796,286 5,203,970 Debt Service - Principal & Interest 9,071,843 9,321,623 TOTAL GENERAL FUND OPERATING EXPENSES - PRELIMINARY 89,431,649 91,859,604 Other Articles - Includes Special Fund Transfers 2,838,201 2,573,934 Unpaid Bills 20,000 20,000 County Assessment 170,201 170,201 Health and Human Services 450,000 450,000 Reserve Fund 500,000 500,000 Other Post-Employment Benefits Trust Fund (OPEB) 500,000 500,000 Capital Project Stabilization Fund - Affordable Housing Trust Fund 300,000 - Town & School Minimum Capital Funding Requirement 898,000 933,733 General Fund Transfers to Enterprise Funds Transfer to Our Island Home 2,026,350 3,100,000 Transfer to Solid Waste Enterprise Fund (SWEF)3,470,273 3,557,030 Add'l General Fund Subsidy to SWEF 2012-Forward 2,569,251 2,633,482 Add'l General Fund Subsidy to SWEF-Landfill Mining 700,000 - TOTAL OTHER ARTICLE APPROPRIATIONS 11,604,075 11,864,446 Other Statutory Expenditures 555,742 1,002,462 TOTAL GENERAL FUND EXPENSES - PRELIMINARY 101,591,466 104,726,512 TOTAL PROJECTED REVENUE 103,525,250 TOTAL PROJECTED EXPENSES 104,726,512 PROJECTED EXCESS LEVY CAPACITY (1,201,262) HISTORICAL ACTUAL EXPENSES •FY2015 –FY2019 Actual FY2015 FY2016 FY2017 FY2018 FY2019 CAGR Salaries - Town 14,631,698 15,948,830 15,399,290 16,940,236 18,625,578 6.2%Salaries - School 19,118,394 20,069,314 19,258,197 21,775,190 23,180,307 4.9%Transfer to Community School 350,000 350,000 400,000 400,000 450,000 6.5% Operating Expenses - Town 5,454,475 5,507,911 5,650,923 7,432,015 6,606,154 4.9%Operating Override - 2011 Mosquito Control 88,439 89,662 89,548 111,833 125,756 9.2%Operating Expenses - School 5,700,968 5,017,328 4,510,580 6,293,542 5,800,498 0.4% Transfer to Community School - - 65,000 65,000 - na Medical Insurance 9,390,000 10,271,769 10,171,618 10,417,085 11,206,133 4.5%Other Group Insurance 159,596 156,094 373,971 416,967 394,309 25.4% General Insurance (other)1,223,757 1,258,636 1,159,798 1,069,608 1,178,579 (0.9%) Debt Service 6,925,749 6,434,038 6,784,405 8,268,434 7,125,456 0.7%Retirement 3,481,694 3,567,128 3,921,256 4,096,124 4,420,538 6.2% Total General Fund Operating Budget Items 66,524,771 68,670,710 67,784,585 77,286,034 79,113,308 4.4% Other Articles & Special Revenue Fund 2,269,054 1,825,461 3,142,040 2,572,708 2,325,648 0.6%Other Articles (Incl. Non-Appropriated Expenses)21,253 23,160 22,199 2,477 7,447 (23.1%)County Assessment 170,201 170,201 170,201 170,201 170,201 0.0%Health and Human Services 317,800 350,000 369,340 400,000 450,000 9.1% Reserve Fund 500,000 - - - - (100.0%) Other Post-Employment Benefits Trust Fund (OPEB) 500,000 500,000 500,000 500,000 500,000 0.0% Capital Project Stabilization Fund - - 250,000 - - naAffordable Housing Trust Fund - - 1,000,000 500,000 300,000 naCapitalTown & School Combined / Non-Recurring (2)759,800 782,100 830,300 1,000,030 898,000 4.3% Enterprise Fund Transfers 7,667,385 7,805,000 9,892,785 8,503,664 8,250,970 1.9% Transfer to Our Island Home 2,267,598 2,295,000 2,762,535 1,511,446 1,511,446 (9.6%)Transfer to Solid Waste Enterprise Fund (SWEF)4,699,787 4,810,000 4,930,250 5,892,218 6,039,524 6.5%Add'l General Fund Subsidy to SWEF 2012-Forward - naAdd'l General Fund Subsidy to SWEF-Landfill Mining 700,000 700,000 700,000 700,000 700,000 0.0% Transfer to Solid Waste (Free Cash)1,500,000 400,000 - na Transfer to Airport - - - - - naTransfer to Siasconset Water - - - - - na Other Statutory Expenditures (Cherry Sheet Offsets)459,141 421,335 433,373 487,846 481,079 5.3% Total Appropriations and Other Statutory Expenditures 86,856,789 88,352,967 94,287,608 99,926,625 100,747,624 3.8% Other Articles FY2020 FY2021 GENERAL FUND - OTHER ARTICLES APPROVED BUDGET EXPENSE PROJECTION Unpaid Bills 20,000 20,000 County Assessment 170,201 170,201 Health and Human Services 450,000 450,000 Reserve Fund 500,000 500,000 Other Post-Employment Benefits Trust Fund (OPEB) 500,000 500,000 Affordable Housing Trust Fund 300,000 - Minimum Capital Funding Requirement (1)898,000 933,733 TOTAL GENERAL FUND OTHER ARTICLES 2,838,201 2,573,934 To Be Determined •Free Cash •DOR to visit on 10/9/2019 to certify Free Cash •Local Receipts (Q1/FY20)•Impact of Local Option Rooms Tax •Union Negotiations •Health Insurance •Retirement Assessment •Local Aid •Year-Round NRTA •Projected increase for year round service is $436,317 •AHTF •Potential Override •Cape and Islands Water Protection Fund •Wastewater Infrastructure Improvement Fund (WIIF) Brian E. Turbitt, Finance Director bturbitt@nantucket-ma.gov