HomeMy WebLinkAboutQ4 2017TOWN OF NANTUCKET
Quarterly Financial ReportQuarterly Financial Report
Fourth Fiscal Quarter Ended
June 30 2017June 30, 2017
Table of Contents
Financial Highlights..........1
General Fund Revenues..........2
Results for most recent quarter..........3
Results for year-to-date period..........4
Gl Fd E 5General Fund Expenses..........5
Results for most recent quarter..........6
Results for year-to-date period..........7
Capital Investments..........8
Financing Activity..........9
Investment Report..........10
Outlook: Muni Watch 11Outlook: Muni Watch..........11
Financial Highlights
The Town of Nantucket ended fiscal year 2017 on a largely positive note. Economic activity on the island remains
strong with tourism real estate and building industries leading the way although local receipts are signaling astrong with tourism, real estate and building industries leading the way, although local receipts are signaling a
slowdown in the rate of increase experienced in the last few years.
Although expenses can be difficult to contain, efforts were made to limit the number of new staff positions. In
addition, the Town rebid its general insurance policies and realized significant savings as a result.
General Fund Revenues
Fourth quarter General Fund (1)revenues were $22.3M, representing a $2.4M increase (+12%) over the fourth
quarter last year. Real estate and personal property taxes collected were the main drivers behind the quarter‐over‐
quarter increase (+14%). Penalties & Interest on Tax Liens collected were also up compared to the same period last
year (+$56K). The results for the entire FY2017 fiscal year show the Town collected $90.1M, equivalent to a $86.0M
increase (+5%) compared to FY2016. The year‐end results for nearly all local receipts categories exceeded the
budgeted goal. However, there growth trend seen in recent years appears to be slowing. The double‐digit increases
in local Excise Taxes have slowed to low single‐digit. Building Permits, for instance, we essentially flat compared to
the prior year. In FY2016, the Town received a $836,305 refund for emergency repairs to the Town pier related to
Storm Juno Excluding this one‐time revenue the Town is ahead by $5 0M (+6%)for FY2017 compared to FY2016Storm Juno. Excluding this one time revenue, the Town is ahead by $5.0M (+6%) for FY2017 compared to FY2016.
General Fund Expenses
General Fund expenses ended the quarter at $19.0M, equivalent to a $2.6M increase (+16%) over the same quarter
in FY2016. The General Fund transfer from Free Cash to Solid Waste Enterprise Fund of $1.5M to ensure there
would be no operational deficit at year‐end was behind most of the increase. School spending made up another
good portion ($1.0M). Over the entire fiscal year, General Fund expenses totaled $80.7M, representing an increase
of $5.3M (+7%) over the same nine months last year. The rise in year‐over‐year expenses was due to higher health
insurance and pension costs as well as continued financial support to the operations of two enterprise funds: Our
Island Home and Solid Waste. As mentioned above, the Town did benefit from approx. $300,000 in savings from
lower General Insurance costs.
General Fund Revenues General Fund Expenditures (2)
5‐Yr History
(in millions of dollars)
5‐Yr History
(in millions of dollars)
$8.3M $9.8M $10.7M $12.7M $12.0M $2.1M $3.8M $3.0M $3.2M $3.9M
$7 2M
$6.7M $6.9M $10.3M $9.4M $8.6M $10.5M $11.0M
$63.7M $64.0M $66.8M $69.3M $74.2M
$24.8M $26.6M $27.7M $29.2M $31.0M
$5.8M $6.1M $6.8M $6.9M $7.3M $7.3M $7.2M $7.2M
(1) General Fund: general government, safety & protection, marine department, maintenance, human services, culture & recreation,
and contractual obligations.
(2) Excludes school spending which was $58.4M in FY2017 (see next page).
FY13 FY14 FY15 FY16 FY17
Real Estate & Property Taxes Local Receipts State Aid & Other
FY13 FY14 FY15 FY16 FY17
Salaries & Benefits Operational Expenses
Debt Service Transfers & Other Sources
General Fund Revenues
Where does the money come from?
General Fund Revenues (1)
For Fiscal Quarter Ended June 30, 2017
15%
4%
1%
12%
Motor Vehicle Excise Tax
Local Rooms Tax
Local Meals & Other Excise
12%
12%
18%
27%
Fees & Rentals
License & Permits
State Local Aid
Fines & Forfeits
Fourth Quarter Rooms Tax
(in thousands of dollars)
Fourth Quarter Motor Vehicle Excise Tax
(in millions of dollars)
Other
$175K $705K$175K
$79K $85K
$113K $107K $428K
$568K
$705K
$575K
$445K
Fourth Quarter Meals Tax
(in thousands of dollars)
Fourth Quarter Building Permits
(in thousands of dollars)
(2) Q4/FY13 Q4/FY14 Q4/FY15 Q4/FY16 Q4/FY17 Q4/FY13 Q4/FY14 Q4/FY15 Q4/FY16 Q4/FY17
$116K
$75K
$64K $71K $75K $188K
$297K
$242K
$332K $315K
(1) Excludes real estate and personal property tax revenue, which equals approx. 81% of total revenues collected in Q3/FY17.
(2) Prior to FY2014, the Town of Nantucket collected Room Excise Tax semi‐annually instead of quarterly.
(2) Q4/FY13 Q4/FY14 Q4/FY15 Q4/FY16 Q4/FY17 Q4/FY13 Q4/FY14 Q4/FY15 Q4/FY16 Q4/FY17
General Fund Revenues
Results for most recent quarter
Three Months Ended June 30, QTR/QTR FY2017
FY2017 Actuals FY2016 Actuals % Change $ Change Budget
Real Estate Taxes 18,950,880$ 16,694,605$ 14% 2,256,274$ 72,568,546$
Personal Property Taxes 315,476 306,799 3% 8,677 1,632,421
Excise Taxes
Motor Vehicle Excise Tax 445,051 574,697 (23%) (129,647) 2,150,000
Local Rooms Tax 106,521 113,120 (6%) (6,599) 2,566,000
LlMlT 75 400 70 581 7%4 818 900 000Local Meals Tax 75,400 70,581 7%4,818 900,000
Other ‐ Includes Penalties & Interest 276,021 219,355 26% 56,666 640,470
Subtotal ‐ Excise Taxes 902,992 977,754 (8%) (74,762) 6,256,470
Charges for Services 5,049 5,305 (5%) (256) 44,600
Fees & Rentals
Planning Board Filing Fees 28,478 32,628 (13%) (4,150) 84,500
Plumbing & Wiring Inspection Fees 103,130 98,861 4% 4,269 226,000
HDC Filing Fees 80,053 42,388 89% 37,665 202,500
Concession Rental Fees 195 ‐ na 195 600
Marine Mooring Rentals & Docking Fees 42,525 54,907 (23%) (12,382) 180,300
Other 101,051 93,621 8% 7,429 438,535
Subtotal ‐ Fees & Rentals 355,432 322,405 10% 33,026 1,132,435
License & Permits
Building Permits 315,122 331,597 (5%) (16,475) 1,010,000
Li Li 109 400 73 350 49%36 050 230 300Liquor Licenses 109,400 73,350 49%36,050 230,300
Other 121,509 118,584 2% 2,925 216,750
Subtotal ‐ License & Permits 546,031 523,531 4% 22,500 1,457,050
State Local Aid
School Aid 766,769 993,648 (23%) (226,879) 3,067,074
Other 55,398 53,976 3% 1,422 204,082
Subtotal ‐ State Local Aid 822,167 1,047,624 (22%) (225,457) 3,271,156
Fines & Forfeits
Parking Fines 31,398 24,235 30% 7,163 230,000
Other 14,038 3,000 368% 11,038 14,800
Subtotal ‐ Fines & Forfeits 45,435 27,235 67% 18,200 244,800
Investment Income 54,605 48,898 12% 5,708 110,500
Other Departmental Revenue
Town Gas Sales 11,569 10,567 9%1,002 69,500Town Gas Sales 11,569 10,567 9%1,002 69,500
Off Duty Police and Fire Personnel 18,992 10,865 75% 8,128 60,000
Other 105,264 (72,703) (245%) 177,967 53,290
Subtotal ‐ Other Dept'l Revenue 135,825 (51,272) (365%) 187,097 182,790
Miscellaneous ‐ ‐ na ‐ 49,245
Transfer & Other Sources
Debt Premium 10,465 ‐ na 10,465 ‐
Indirect Costs 154 825 na 154 825Indirect Costs 154,825 ‐ na 154,825 ‐
Subtotal ‐ Transfer & Other Sources 165,290 679 24,243% 164,611 ‐
Total General Fund Revenue 22,299,182$ 19,903,564$ 12% 2,395,619$ 86,950,013$
General Fund Revenues
Results for year-to-date period
Twelve Months Ended June 30,YTD/YTD FY2017 Variance to
FY2017 Actuals FY2016 Actuals % Change $ Change Budget Budget
Real Estate Taxes 72,764,573$ 67,913,164$ 7% 4,851,409$ 72,568,546$ 0%
Personal Property Taxes 1,402,156 1,374,947 2% 27,209 1,632,421 (14%)
Excise Taxes
Motor Vehicle Excise Tax 2,753,546 2,674,907 3% 78,639 2,150,000 28%
Local Rooms Tax 3,498,400 3,428,604 2% 69,796 2,566,000 36%
Local Meals Tax 1,061,396 997,903 6% 63,493 900,000 18%
Other ‐ Includes Penalties & Interest 734,427 726,665 1% 7,762 640,470 15%
Subtotal ‐ Excise Taxes 8,047,770 7,828,078 3% 219,691 6,256,470 29%
Charges for Services 35,871 35,103 2% 769 44,600 (20%)
Fees & Rentals
Planning Board Filing Fees 112,763 94,896 19% 17,868 84,500 33%
Plumbing & Wiring Inspection Fees 368,913 381,200 (3%) (12,287) 226,000 63%
HDC Filing Fees 295,042 182,859 61% 112,183 202,500 46%
Concession Rental Fees 130 703 206 075 (37%)(75 372)600 naConcession Rental Fees 130,703 206,075 (37%)(75,372) 600 na
Marine Mooring Rentals & Docking Fees 198,387 317,535 (38%) (119,148) 180,300 10%
Other 446,141 514,384 (13%) (68,242) 438,535 2%
Subtotal ‐ Fees & Rentals 1,551,949 1,696,948 (9%) (144,999) 1,132,435 37%
License & Permits
Building Permits 1,222,855 1,219,361 0% 3,494 1,010,000 21%
Liquor Licenses 223,700 214,900 4% 8,800 230,300 (3%)
Other 252,026 278,246 (9%) (26,220) 216,750 16%
Subtotal ‐License &Permits 1,698,581 1,712,508 (1%)(13,926)1,457,050 17%Subtotal License & Permits 1,698,581 1,712,508 (1%)(13,926) 1,457,050 17%
State Local Aid
School Aid 3,067,074 2,980,944 3% 86,130 3,067,074 ‐
Other 220,249 207,778 6% 12,471 204,082 8%
Subtotal ‐ State Local Aid 3,287,323 3,188,722 3% 98,601 3,271,156 0%
Fines & Forfeits
Parking Fines 271,074 223,712 30% 7,163 230,000 18%
Other 28,163 14,675 368% 11,038 14,800 90%
Sb l Fi &Ffi 299 237 238 387 26%60 850 244 800 22%Subtotal ‐ Fines & Forfeits 299,237 238,387 26%60,850 244,800 22%
Investment Income 135,292 195,484 (31%) (60,192) 110,500 22%
Other Departmental Revenue
Town Gas Sales 43,410 54,074 (20%) (10,665) 69,500 (38%)
Off Duty Police and Fire Personnel 54,227 31,379 73% 22,848 60,000 (10%)
Other (1) 147,748 980,088 (85%) (832,340) 53,290 177%
Subtotal ‐ Other Dept'l Revenue 245,385 1,065,541 (77%) (820,157) 182,790 34%
Miscellaneous ‐ 11,388 na ‐ 49,245 (100%)
Transfer & Other Sources
Debt Premium 10,465 35,307 (70%) (24,842) ‐ na
Indirect Costs 619,300 700,519 (12%) (81,219) ‐ na
Subtotal ‐ Transfer & Other Sources 629,765 735,826 (14%) (106,061) ‐ na
Total General Fund Revenue 90,097,901$ 85,996,095$ 5% 4,101,805$ 86,950,013$ 4%
(1) In FY16 $845 645 was received as part of emergency funding for the Town Pier damage from Storm Juno(1) In FY16, $845,645 was received as part of emergency funding for the Town Pier damage from Storm Juno.
General Fund Expenses
Where does the money go?
General Fund ExpensesGeneral Fund Expenses
For Fiscal Quarter Ended June 30, 2017
9%
6%3%
Education
Group & General Insurance
Safety &Protection
44%
17%
11%
10%
Safety & Protection
General Gov't
Debt Service
Maintenance
Fourth Quarter Operational Expenses (1)
(in millions of dollars)
Fourth Quarter Salary Expenses (2)
(in millions of dollars)
All Others
$1.6M $1.7M
$2.1M
$1.5M
$1.9M
$4.0M
$4.1M
$4.3M
$4.1M
$4.4M
Fourth Quarter Health & Other Group Insurance
(in millions of dollars)
Fourth Quarter Debt Service (P&I)
(in millions of dollars)
Q4/FY13 Q4/FY14 Q4/FY15 Q4/FY16 Q4/FY17 Q4/FY13 Q4/FY14 Q4/FY15 Q4/FY16 Q4/FY17
$1.6M
$1.9M $2.1M
$2.9M $3.1M $0.5M
$0.2M $0.2M
(1) Excludes Debt Service, Transfers and State Assessments, which are subject to timing differences
(2)Excludes Health Insurance & Other Group Insurance, Pension Costs and Contractual Obligations.
Q3/FY13 Q3/FY14 Q3/FY15 Q3/FY16 Q3/FY17
($0.1M)($0.2M)
Q4/FY13 Q4/FY14 Q4/FY15 Q4/FY16 Q4/FY17
General Fund Expenses
Results for most recent quarter
Three Months Ended June 30, QTR/QTR FY2017
FY2017 FY2016 % Change $ Change Budget (1)
General Government
Finance Committee 2,536$ 15,132$ (83%) (12,596)$ 18,680$
Finance & Operations 460,694 516,333 (11%) (55,638) 2,357,432
Human Resources 80,365 52,579 53% 27,785 271,831
Information Systems / GIS 236,169 210,654 12% 25,516 953,524
Legal / Town Counsel 111,399 127,753 (13%) (16,353) 464,964
()()Moderator 2 178 (99%)(175) 1,680
Planning & Land Use Services 568,369 438,132 30% 130,237 1,878,232
Town Administration 358,091 254,915 40% 103,176 1,590,004
Natural Resources 201,676 147,887 36% 53,789 653,518
Town Clerk 100,247 88,870 13% 11,376 340,199
Subtotal 2,119,549$ 1,852,432$ 14%267,117$ 8,530,064$
Safety & Protection
Emergency Management 3,667$ ‐$ na 3,667 7,075 mergency Management 3,667$$na 3,667 7,075
Fire Department 671,346 780,704 (14%) (109,358) 2,985,749
Police & Animal Control 1,765,811 1,331,092 33% 434,719 6,061,917
Street Lighting 24,994 80,334 (69%) (55,339) 165,000
Subtotal 2,465,818$ 2,192,130$ 12%273,688$ 9,219,741$
Marine & Coastal Resources
Marine Department 187,445$ 174,651$ 7% 12,794 819,300
Subtotal 187,445$ 174,651$ 7%12,794$ 819,300$
Maintenance
Gas / Town Vehicles 66,686$ 86,414$ (23%) (19,728) 375,000
Mosquito Control 26,094 15,898 64% 10,196 140,063
Public Buildings 251,619 281,187 (11%) (29,568) 1,106,287
Public Works 833,713 680,756 22% 152,956 2,951,359
Snow & Ice Removal 43,491 525 8,185% 42,966 82,600
Subtotal 1,221,604$ 1,064,781$ 15%156,823$ 4,655,310$
Human ServicesHuman Services
Human Services 74,465$ 73,890$ 1% 576 436,672
Subtotal 74,465$ 73,890$ 1%576$ 436,672$
Culture & Recreation
Atheneum 175,541$ ‐$ na 175,541 702,165
Town Clock 1,336 1,169 14% 167 4,742
Visitor Services 91,346 106,840 (15%) (15,494) 470,361
Subtotal 268,223$ 108,009$ 148%160,214$ 1,177,268$
Other Expenditures
Debt Service Principal (305,325)$ ‐$ na (305,325) 5,316,241
Debt Service Interest 152,426 186,273 (18%) (33,846) 1,763,824
Group Insurance 2,624,359 2,451,459 7% 172,900 12,052,110
General Insurance (318,692) 34,903 (1,013%) (353,596) 1,509,588
Retirement Assessment (894) ‐ na (894) 3,921,257
Cherry Sheet Assessments 127,120 373,255 (66%) (246,135) 427,300
Contractual Obligations 113,279 141,498 (20%)(28,218) 386,611
(1) Budget includes prior year encumbrances, enterprise fund transfers and trust fund transfers.
(2) Includes annual transfer to Community School.
g ,,()(, ),
Intergovernmental 1,500,000 ‐ na 1,500,000 9,192,785
Education (2) 8,768,235 7,750,891 13% 1,017,344 27,348,866
Subtotal 12,660,508$ 10,938,278$ 16%1,722,229$ 61,918,581$
Total General Fund Expenses 18,997,612$ 16,404,170$ 16% 2,593,442$ 86,756,935$
General Fund Expenses
Results for year-to-date period
Twelve Months Ended June 30,YTD/YTD FY2017 Variance
FY2017 FY2016 % Change $ Change Budget (1)to Budget
General Government
Finance Committee 18,246$ 17,675$ 3% 571$ 18,680$ 98%
Finance & Operations 1,855,263 1,989,381 (7%) (134,118) 2,357,432 79%
Human Resources 247,980 204,795 21% 43,186 271,831 91%
Information Systems / GIS 886,565 789,350 12% 97,214 953,524 93%
Legal / Town Counsel 394,034 383,200 3% 10,834 464,964 85%
Moderator 180 178 1%2 1680 11%Moderator 180 178 1%2 1,680 11%
Planning & Land Use Services 1,815,936 1,659,423 9% 156,513 1,878,232 97%
Town Administration 1,387,049 1,039,598 33% 347,451 1,590,004 87%
Natural Resources 597,266 532,143 12% 65,123 653,518 91%
Town Clerk 361,114 306,204 18% 54,911 340,199 106%
Subtotal 7,563,631$ 6,921,945$ 9%641,686$ 8,530,064$ 89%
Safety & Protection
Emergency Management 5,034 1,859 171% 3,175 7,075 71%
Fi Dtt 2 617 946 2 728 648 (4%)(110 702)2 985 749 88%Fire Department 2,617,946 2,728,648 (4%)(110,702) 2,985,749 88%
Police & Animal Control 5,824,623 5,484,323 6% 340,300 6,061,917 96%
Street Lighting 84,126 150,909 (44%) (66,783) 165,000 51%
Subtotal 8,531,728$ 8,365,739$ 2%165,989$ 9,219,741$ 93%
Marine & Coastal Resources
Marine Department 738,923 720,080 3% 18,843 819,300 90%
Subtotal 738,923$ 720,080$ 3%18,843$ 819,300$ 90%
Maintenanceateace
Gas / Town Vehicles 237,204 237,191 0% 12 375,000 63%
Mosquito Control 91,480 89,662 2% 1,819 140,063 65%
Public Buildings 812,627 820,829 (1%) (8,202) 1,106,287 73%
Public Works 2,704,401 2,610,165 4% 94,236 2,951,359 92%
Snow & Ice Removal 288,638 231,888 24% 56,750 82,600 349%
Subtotal 4,134,350$ 3,989,735$ 4%144,615$ 4,655,310$ 89%
Human Services
Human Services 276,623 274,084 1%2,539 436,672 63%Human Services 276,623 274,084 1%2,539 436,672 63%
Subtotal 276,623$ 274,084$ 1%2,539$ 436,672$ 63%
Culture & Recreation
Atheneum 702,165 693,439 1% 8,726 702,165 100%
Town Clock 2,961 1,486 99% 1,474 4,742 62%
Visitor Services 419,866 435,335 (4%) (15,469) 470,361 89%
Subtotal 1,124,991$ 1,130,260$ (0%)(5,269)$ 1,177,268$ 96%
Other Expenditures
DbSiPi i l 5 336 591 5 273 997 1%62 594 5 316 241 100%Debt Service Principal 5,336,591 5,273,997 1%62,594 5,316,241 100%
Debt Service Interest 1,557,941 1,473,061 6% 84,880 1,763,824 88%
Group Insurance 10,582,668 9,637,517 10% 945,151 12,052,110 88%
General Insurance 971,495 1,258,636 (23%) (287,141) 1,509,588 64%
Retirement Assessment 3,921,256 3,567,128 10% 354,128 3,921,257 100%
Cherry Sheet Assessments 433,373 421,335 3% 12,038 427,300
Contractual Obligations 117,457 141,498 (17%) (24,041) 386,611 30%
Intergovernmental 10,053,838 7,105,000 42% 2,948,838 9,192,785 109%
Education (2)25 389 321 25 189 584 1%199 737 27 348 866 93%
(1)Budget includes prior year encumbrances, transfers to enterprise funds and transfers to trust funds.
(2) Includes annual transfer to Community School.
Education (2)25,389,321 25,189,584 1%199,737 27,348,866 93%
Subtotal 58,363,941$ 54,067,756$ 8%4,296,185$ 61,918,581$ 94%
Total General Fund Expenses 80,734,188$ 75,469,600$ 7% 5,264,588$ 86,756,935$ 93%
Capital Investments
Maintaining and improving the infrastructure
FY2017 Top 10 Capital Projects
Expenditures for the Year
1. New Intermediate School Construction $31,319,173
2. Boulevarde / Lovers Ln Reconstruction $1,716,051
3. Easy Street Bulkhead Reconstruction $1,107,047
4. Brant Point Propagation Facility Construction $820,995
5. Other Road Repairs (Island‐Wide) $801,504
6. Other School Improvements $685,571p$,
7. Heavy Machinery & Vehicles $721,573
8. Fire Station (New Facility) $373,937
9. Technology (Hardware & Security) $271,445
10. Fields, Parks & Parking Improvements $172,777
New Intermediate School and reconstruction of the Easy Street bulkhead were specific projects that were
ltdi FY2017
Total $37,990,072
completed in FY2017.
Brant Point Hatchery is very near completion with small punch list items outstanding.
Other Road Repairs includes: Easy Street, Surfside guardrails, Candle Street, New Whale Street and others
Other School Improvements includes: NHS parking paving, NES parking paving, repairs to the NHS/CPS
facades
Heavy Machinery & Vehicles includes: ambulance, fire tanker, asphalt recycler, two trucks with plow and a
van for the DPW. Other vehicles were purchased as part of departments’ regular operating budgets as directed
by the Administration.
Fire Station facility has been rebid and voters will be asked to increase the funding authorization at Special
Town Meeting
Technology includes: implementation of e‐permitting, computers and related hardware, upgrades to the
network servers and facility security improvements
Fields, Parks & Parking Improvements includes: paving for 2 and 4 Fairgrounds Road parking lots and trash
barrels
Financing Activity
How much do we owe?
The General Fund’s total outstanding debt obligation was $91.6M as of the end of the fiscal year
This total includes $74.1M in principal payments and $17.5M in interest payments
Approximately 57% of General Fund debt is scheduled to be amortized over the next 10 years
Principal and interest payments due in FY2017: $6.9M
Principal and interest payments due through the next 5 years (FY18‐FY22): $35.9M
The Town monitors borrowings and other performance measures against Financial Policies adopted in
FY2017 to ensure continued stability and prudence
The Town’s Credit Rating
External credit ratings have a direct influence on the Town’s ability to:
Minimize borrowing costs
Successfully borrow funds to complete the improvement and construction of long‐term assets and
the Town’s infrastructure
In October 2016, Moody’s affirmed the Town’s rating of Aa2
During the same period, Standard & Poor’s initiated coverage on the Town of Nantucket’s general obligation
debt in a report establishing a AA rating
Both ratings represent the second highest rating on the agencies’ municipal credit rating scale
The Town is expecting a visit from Moody’s in October 2017 as it prepares to raise long‐term debt to pay for
projects such as the new intermediate school, airport projects, and other capital projects currently underway
Type of Bond Issued Moody’s Rating Standard & Poor’s Rating
General Obligation Aa2 AA
Outlook
The Muni Watch
Periods based on fiscal calendar (1)Trend (2)
Local Receipts Last Qtr Qtr/Qtr LTM Yr/Yr 3 Mo LTM DetailsLocal Receipts Last Qtr Qtr/Qtr LTM Yr/Yr 3‐Mo LTM Details
Building Permits $315,122 (5%) $1.2M 7%
Rooms Tax $106,521 (6%) $3.5M 3%
Meals Tax $75,400 7% $1.1M 7%‐ Yellow if trend is between +5% and ‐10%
Motor Excise Tax $445,051 (23%) $2.7M (3%)‐ Red if trend is below ‐10%
Local Indicators
For Local Receipts categories:
‐ Green if trend is 5% or above
Real Estate ‐ Sales ($M) $240M 15% $1,026M 8%
Real Estate ‐ Transactions 118 (3%) 507 (6%)
SSA Freight Revenue ($M) $8.7M 5% $27M 6%
SSA Nantucket Passengers 162,645 34% 648,004 0%
GA Airport Landings 601 8% 13,917 11%
between 0% and ‐3%, Red if trend is < 3%
Airport: Private aircraft activity.
SSA categories: ‐ Green if trend ≥ 0%, Yellow if
Green if trend ≥ 5%, Yellow if 0% to 5%, Red if < 0%
Real Estate categories: ‐ Green if trend ≥ 0%, Yellow if
between 0% and ‐10%, Red if trend is < 10%
Nat'l Leading Indicators Current 3‐Mo 12‐Mo 3‐Mo LTM
LIBOR T‐Bill Yield Spread 0.28% 0.39% 0.39%
Sr Loan Officer Survey ‐3.9%‐2.8% (7%)
S&P 500 Performance 2,423 2,363 2,102
Weekly Initial Claims 250 250 242 000 261 250
‐ Difference between 3mth LIBOR & 3 mth treasury bill
(< 0.5% signals stability).
‐ Fed Reserve: % of loan officers seeing loan standards
tightening for med/large firms (< 10% is positive).
‐ S&P 500 index as proxy of performance of risky
equity assets. Level > 1950 is positive.
‐ 4‐wk average of unemployment insurance initial
Quarterly Building Permits
(in thousands of dollars)
Quarterly Real Estate Sales
(in millions of dollars)
Weekly Initial Claims 250,250 242,000 261,250 claims, < 300,000 is positive.
Quarterly Building Permits 4 QTR Moving Average Quarterly Real Estate Sales 4 QTR Moving Average
$297K$272K$238K$262K$242K$310K$257K$322K$332K$274K$340K$277K$315K$211M$274M$343M$163M$156M$251M$289M$200M$209M$317M$287M$182M$240M$382K$383K
$424K
$418K
$432K
$460K
$1.30M
$1.56M
$1.56M
$1.65M
$1.55M
$1.71M
$1.38M
$0 70M
$1.66M
$1.75M
Quarterly Motor Excise Tax
(in millions of dollars)
Quarterly Meals Tax
(in thousands of dollars)
Quarterly Rooms Tax
(in millions of dollars)
$75K
$79K
$64K
$86K
$71K
$94K
$75K$0.08M$0.09M $0.08M $0.10M$0.11M $0.13M$0.11M
$0.57M
$0.29M$0.14M
$0.70M
$0.27M$0.17M
$0.57M
$0.39M
$0.14M
$0.45M
(1) Local receipt and local indicator data comparisons are based on the Town’s fiscal year (ex: Q1 = 7/1‐9/30).(2)LTM refers to “last twelve months”.
Investment Report
How safe is our money?
The following is a report prepared by the Town’s investment manager, Morgan Stanley:
Trust Funds
Account balance: $9.192.598
Asset Allocation: 10% Equity, 89% Fixed Income, 1% Cash
Feb 2017 – made initial 10% allocation to Equities. While maintaining a liquid, conservative allocation, we believe
having a small equity exposure will help overall returns while providing dividend income and a hedge against risinghaving a small equity exposure will help overall returns, while providing dividend income and a hedge against rising
interest rates.
Equities are comprised of the 21 companies on the MA Legal List of Investments.
Fixed income investments are comprised of investment grade Corporate bonds, US Gov’t Agency bonds, and CDs.
Over the past 3 years, the Trust Funds have averaged an annual return of 1.6% based on its conservative allocation.
OPEB Fund
Account balance: $1,899,930
Asset Allocation: 51% Equity, 48% Fixed Income, 1% Cash
Feb 2017 –Given the long‐term nature of OPEB funds and the favorable equity environment, we increased the
equity allocation to 50%.
Fixed Income investments are comprised of investment grade corporates and CDs.
Over the past 3 years, the OPEB has returned an average of 4.49% annually.
Equity Portfolio Overview
During the past Fiscal Year global equity markets experienced an extended period of lower volatility and aboveDuring the past Fiscal Year, global equity markets experienced an extended period of lower volatility and above
average stock market returns. While political uncertainty within the US and globally remained a constant concern for
investors, stock market returns focused on the improving fundamentals in the economic and corporate
landscape. Over the past Fiscal Year, the S&P 500 had a total return of 17.9%, an equally‐weighted portfolio of the
MA Legal List Equities has returned 13.2%
Fixed Income Market
On 6/30/16, the 10 Year US Treasury yield closed at 1.49%, following a year of global volatility among equity prices,
currencies, and commodities. As US economic data improved, Treasury bonds began to selloff in August 2016 and
interest rates experienced a significant jump following the US Presidential Election of Donald Trump. By December
2016, the 10 Year Treasury bond had risen to 2.45%. The Federal Reserve has followed through on its goal to
“normalize” interest rates, with 3 interest rate increase over the past fiscal year. The 10 Year Treasury ended June
2017 at 2.3%.
Strategy Outlook
We believe that as the US economy continues to expand US equity markets will move higher with periods ofWe believe that as the US economy continues to expand, US equity markets will move higher with periods of
volatility based on concerns over stock market valuation, economic progress, and other geopolitical concerns. We
feel the Federal Reserve will continue to raise interest rates, and would continue to recommend shorter bond
maturities in the 3 –5 year range.
Fees
Fess are commission‐based and are as follows for the full FY2017 year:
Trust Funds: $24,168
OPEB: $7,615