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Home My WebLink AboutTown Administration General Fund Budget Recommendations (PDF)Town Administration Fiscal Year 2022 General Fund Budget Recommendations As of December 9, 2020 Select Board Meeting Select Board & Administration Goals and Priorities for FY 2022 •Balanced budget –within projected revenue •Strategic Plan –Transportation –Housing –Environmental Leadership –Efficient Town Operations –Quality of Life •Capital and operational investment in infrastructure/facilities •PFAS •COVID-19 response •Coastal Resilience 21/8/21 •Strategic Plan –Environmental Leadership •Coastal Resiliency/Hazard Mitigation •Sustainability –Housing •Transitional housing for department-head level town employees –Transportation •Parking management •Sidewalk route connection from Mid-island to ferries (capital project) –Quality of Life •Diversity Equity Inclusion (DEI) office –Efficient Town Operations •Development of a Facilities Master Plan •Continued Investment in Technology •Investment in Infrastructure Maintenance •Enforcement 31/8/21 Initiatives/Needs/Goals Addressed with Budget Recommendations •COVID-19 Response –Public Health Inspector –Seasonal Housing and Seasonal Employee Increase –Economic Recovery •PFAS –Phase I -Town -wide Risk Assessment (started in FY21) –Phase II –TBD 41/8/21 Initiatives/Needs/Goals Addressed with Budget Recommendations (cont.) Initiatives and Opportunities •Undertaken during FY21 and continuing into FY22 –Our Island Home Operations and Facility Review –Senior Center Operations and Facility Review –Parks & Recreation/Community School –PFAS Town-wide Risk Assessment –Coastal Resilience Plan –Hazard Mitigation Plan –Co-location of Public Health and Natural Resources –COVID-19 response and follow-up –Diversity Equity and Inclusion (DEI)Initiatives –Municipal Facilities Master Plan –Sustainability Office and Projects (solar projects) 1/8/21 5 •Personnel -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) •Review and refine internal controls/processes, procedures and policies •Conduct review of remote working successes and challenges due to COVID-19; identify potential efficiencies •PEG Channel / NCTV review and additional support funds to ensure maximum transparency •Review of COVID-related grant opportunities 61/8/21 Efforts to Reduce Expenses and Increase Efficiency, Transparency •Revenue –Total Projected Revenue of $111,382,172 –Net of Property Tax Abatements •Expenses –Total Projected Expenses of $110,746,540 •Projected FY 2022 Unused Levy Capacity $635,632 71/8/21 FY 2022 General Fund Budget Overview FY 2022 General Fund Budget Summary Comparison 81/8/21 (1) FY 2022 state aid represents level funding from FY 2020 approved figure. •See Appendix A for detailed breakdown. REVENUES FY21 FY22 $ Change % Change Property Tax 89,625,544 91,888,930 2,263,386 2.5% Local Receipts (All other)2,288,048 2,381,060 93,012 4.1% Motor Vehicle Excise 2,275,000 2,250,000 (25,000) (1.1%) Rooms and Meals Tax 1,968,171 4,880,000 2,911,829 147.9% Licenses and Permits 623,600 891,350 267,750 42.9% State Aid (1) 3,046,068 3,880,200 834,132 27.4% Free Cash 4,036,949 4,575,000 538,051 13.3% Other Available Funds - - - na TOTAL REVENUES 103,863,380 110,746,540 6,883,160 6.6% EXPENDITURES Municipal Departments 28,266,924 33,538,143 5,271,219 18.6% School Department 31,846,642 33,426,987 1,580,345 5.0% Non-Departmental 30,515,943 29,995,251 (520,692) (1.7%) Special Appropriations 13,233,871 13,786,159 552,288 4.2% TOTAL EXPENDITURES 103,863,380 110,746,540 6,883,160 6.6% THE FY2022 BUDGET FY 2022 General Fund Projected Revenue 1/8/21 9 Tax Revenue 86% Local Receipts -All Other 2% Motor Vehicle 2% Rooms and Meals 5% Licenses and Permits 1% State Aid 4% FY 2022 General Fund Projected Expenses 1/8/21 10 Municipal Departments 30.3% School Department 30.2% Non-Departmental 27.1% Special Appropriations 12.4% Category FY 2022 Current Projection Notes Town Operational Expenses $8,803,889 Town Operational EIR’s (1)$1,361,801 Included in Town expenses Town Salaries $21,645,257 Contracts in negotiations; c/b allowance Town Personnel EIR’s $604,041 Included in Town salaries School Operational Expenses $5,536,655 School Operational EIR’s $225,649 Included in School expenses School Salaries $27,340,332 Contracts in negotiations; c/b allowance School Personnel EIR’s Included in School salaries 111/8/21 FY 2022 General Fund Budget Expense Categories (1) EIR = Expense Increase Request. Category FY 2022 Current Projection % Change over FY 2021 Budget Health Insurance Active $10,528,643 7.06% increase Retiree $3,792,592 7.06% increase General Insurance $3,108,306 18.0% increase Debt Service $10,008,430 per established schedule Retirement $5,646,307 8.5% increase Enterprise Fund Subsidies* $10,002,995 1.61% Increase 121/8/21 FY 2022 General Fund Budget Fixed Costs * See Appendix A for detailed breakdown. Category FY 2022 Current Projection % Change over FY 2021 Budget Health & Human Services $650,000 No change County Assessment $174,455 2.5% increase Reserve Fund $500,000 No change Unpaid Bills $20,000 No change Other Post Employment Benefits (OPEB) $500,000 Overlay & Other Deficits $0 $0 Cherry Sheet Charges $984,563 No Change Community School $550,000 No Change Min Cap Funding Req.$974,146 n/a -1% of prior year revenue TOTAL EXPENSES $110,746,540 131/8/21 FY 2022 General Fund –Special Appropriations •$4,281,246 Submitted Requests •$3,098,553 Recommended –One-time $1,265,000 –On-going $1,833,533 •To be funded through available tax levy, budget adjustments, alternate funding sources, free cash, potential revenue increases 141/8/21 FY 2022 Town Expense Increase Requests (included in recommended budget, excluding school) 15 FY 2022 Recommended Town Expense Increase Requests Department Description of Expense Request One-Time or Ongoing Approved EIRS (1) Personnel Expense Increase Requests (EIRs) Health Public Health Inspector Ongoing 115,000 Fire Addition of one EMS Officer Ongoing 106,643 DPW Facilities Maintenance Workers (2)Ongoing 187,053 DPW Construction Inspector*Ongoing 107,387 PLUS Administrative Specialist Ongoing 90,348 NRD Coastal System Technician Ongoing 98,540 Police Parking Enforcement Officer*93,242 Police (3) Addntl CSO's for Expanded Parking Hours*Ongoing 40,000 Marine Seasonal Lifeguard Increase Ongoing 230,000 IT IT Generalist**Ongoing 98,540 Department Personnel EIR 1,166,753$ Operating Expense Increase Requests (EIRs) HR Compensation & Classification Study*One-Time 200,000 PLUS Update of 2009 Master Plan*One-Time 100,000 PLUS Replacement Vehicle for PLUS Fleet*One-Time 30,000 PLUS Historic Architectural Surveys Update from HDC*One-Time 50,000 Town Admin Governance Workshops*One-Time 25,000 Town Admin Strategic Plan Initiatives*One-Time 50,000 Town Admin PFAS Response One-Time 500,000 Town Admin Prof Admin Support Services*One-Time 50,000 Town Admin COVID-19 Response One-Time 50,000 NRD Replacement Vehicle of 2008 Ford F250 One-Time 40,000 Police Seasonal Housing One-Time 200,000 Marine Seasonal Housing One-Time 200,000 IT Adobe Creative Cloud Subscription Services Ongoing 23,500 IT CyberSecurity Awareness Training Annual Ongoing 7,600 Fire CBA Clothing Allowance Increase Ongoing 12,700 DPW/Public BuildingsIncrease Comm: Telephone Ongoing 10,000 DPW/Public BuildingsIncrease Professional Services Ongoing 25,000 DPW/Public BuildingsIncrease Custodial Services Ongoing 115,000 DPW/Public BuildingsIncrease Bldg&Eq:Maint& Supplies Ongoing 40,000 DPW Increase Rep&Maint: Road Construction Ongoing 18,000 Human Services Network of Care Annual Maintenance Fee Ongoing 24,000 Town Admin Sustainability Office*Ongoing 100,000 Town Admin Transitional Housing Ongoing 36,000 Town Admin NCTV Support Services Ongoing 25,000 Total Operating Expense Increase Requests 1,931,800$ Total Town Personnel & Operational Expense 3,098,553$ * Approved FY21 EIR; but removed due to COVID-19 budget restrictions ** Funding was approved; vacant positions that had not been fillled; removed in FY21 Budget Funding Source Amount Tax Levy & Other General Revenues $1,333,553 Free Cash $925,000 Capital Exclusion $70,000 Special Revenue Funds $270,000 Borrowing $500,000 Total -All Funding Sources $3,098,553 161/8/21 FY 2022 Town Expense Increase Requests Funding Source Detail 1/8/21 17 General Fund Certified Free Cash $9,655,001 Fund Town Expense Increase Requests (one-time)925,000 Fund School Expense Increase Requests (one-time)150,000 Fund Town and School Capital Requests 4,992,254 Unpaid Bills 20,000 Our Island Home 3,500,000 Unallocated Free Cash $67,747 Preliminary Free Cash Recommendation (Subject to Change) 181/8/21 FY22 Outstanding Items and Current Unknowns •Our Island Home Proposition 2 ½ Override •State Aid Impact •Harbor Place Project •Citizen Warrant Articles Potential Cost Impact •Fee Increases •Steamship Authority Deficit •NRTA Deficit •PFAS Costs •COVID-19 •Diversity Equity Inclusion (DEI) office •Short Term Rentals? •New Growth "Bubble Burst" •Potential Airport Deficit due to COVID-19? And/or PFAS? •Police Reform Bill •Impacts of Coastal Resilience Advisory Committee Interim Recommendation 191/8/21 Future Potential Costs •Strategic Plan •Staffing Study •Commuter Shuttle System •Update of 5 Year Forecast •Open Space and Recreation Plan •Solid Waste •Current Contract Expires in 2025 •NRTA •Year-Round Service Modifications •Sustainability Office •PFAS •Coastal Resilience Plan •Master Plan •December 9: Town Administration FY 2022 Budget presentation to Select Board •January 5:Town Administration FY 2022 Budget presentation to School Committee •January 6: Select Board public hearing; endorsement of recommended FY 2022 General Fund Budget •Mid-January –mid-March: Finance Committee review of General Fund & Enterprise Fund budgets; other financial appropriations •Monday, April 5: Annual Town Meeting (2021) THIS MAY CHANGE 201/8/21 Next Steps 211/8/21 General Fund Revenue Breakdown FY 2018-FY 2022 $0.0m $10.0m $20.0m $30.0m $40.0m $50.0m $60.0m $70.0m $80.0m $90.0m $100.0m FY2018 FY2019 FY2020 FY2021 (Budget)FY2022 (Budget) $78.2m $80.0m $83.0m $89.6m $92.5m $12.9m $14.0m $15.3m $7.2m $10.4m $3.4m $3.5m $3.9m $3.0m $3.9m$6.6m $5.5m $6.1m $4.0m $4.6m Real and Personal Property Tax Local Receipts State Aid Free Cash 1/8/21 22 Town Expense Breakdown FY 2018-FY 2022 $15.7m $19.5m $19.9m $20.9m $21.6m $5.8m $6.7m $6.8m $7.2m $8.6m $4.1m $4.4m $4.8m $5.2m $5.6m$10.9m $12.7m $14.0m $16.2m $17.4m $8.5m $7.1m $8.9m $9.8m $10.0m $0.0m $10.0m $20.0m $30.0m $40.0m $50.0m $60.0m $70.0m FY2018 Actual FY2019 Actual FY2020 (Budget)FY2021 (Budget)FY2022 (Budget) Salaries Operations Retirement Medical & General Insurances Debt Service * Full Time Equivalent Calculation = 33-40 Hrs 1.0; 20-32 Hrs 0.50; Seasonal = 0.25 **For comparative purposes, Town Personnel History does not include Our Island Home *** Education Personnel History includes Community School Employees 231/8/21 General Fund Personnel History FY 2017-FY 2022 ***** 0 50 100 150 200 250 300 FY2016 FY2017 FY2018 FY2019 FY2020 Projected FY2021 Town School 1/8/21 24 FY 2022 General Fund Budget Breakdown –Revenues FY2022 General Fund Revenue Breakdown Budget Budget FY2021 FY2022 $ Change % Change Tax Revenue Limitations Levy Limit from Prior Year 77,688,262$ 80,630,472$ 2,942,210$ 3.8% Add: 2 1/2 % increase 1,942,238 2,015,762 73,524 3.8% Add: Prop 2.5% operating override - - - na Add: new growth estimate 1,163,749 700,000 (463,749) (39.8%) Add: operating override - - - na Levy Limit for Current Year 80,794,249 83,346,234 2,551,985$ 3.2% Add: Debt Exclusion 8,831,295 9,428,328 597,033 Maximum Allowable Levy for Current Year 89,625,544$ 92,774,562$ 3,149,018$ 3.5% OVERLAY 0 (250,000)(250,000) na Net available:89,625,544$ 92,524,562$ 2,899,018$ 3.2% State Aid 3,046,068$ 3,880,200$ 834,132$ 27.4% Local Receipts: Motor Vehicle Excise 2,275,000 2,250,000 (25,000) (1.1%) Rooms and Meals Tax 1,938,169 4,880,000 2,941,831 151.8% Licenses and Permits 623,600 891,350 267,750 42.9% Local Receipts - All Other 2,288,048 2,381,060 93,012 4.1% Total Local Receipts 7,124,817 10,402,410 3,277,593 46.0% Total Revenue 99,796,429$ 106,807,172$ 7,010,743$ 7.0% Other Sources Other Sources - - - na Free Cash Used 4,036,949 4,595,000 558,051 13.8% Excess Overlay - Total Revenue and Other Sources 103,833,378$ 111,402,172$ 7,568,794$ 7.3% Total Expenses and Other Uses 103,833,378$ 110,766,540$ 6,933,162$ 6.7% 635,632 1/8/21 25 FY 2022 General Fund Budget Breakdown –Expenses FY2022 General Fund Expenditure Breakdown Budget Budget FY2021 FY202 $ Change % ChangeGeneral Fund Operating Budget Items: Salaries - Town (includes allowance for collective bargaining)20,971,615$ 21,041,216$ 69,601$ 0.3% Town Expense increase Requests- Salaries - 604,041 604,041 na Salaries - School (includes allowance for collective bargaining)25,985,636 26,840,332 854,696 3.3% School Expense increase Requests- Salaries - 500,000 500,000 na Transfers to community school 550,000 550,000 Subtotal Salaries 47,507,251$ 49,535,589$ 2,028,338$ 4.3% Operating Expenses, Town:6,871,808 7,269,344 397,536 5.8% +Town Expense Increase Requests-Operating 255,000 1,361,801 1,106,801 434.0% Operating Override - 2011 Mosquito Control 168,501 172,714 4,213 2.5% Operating Expenses, School 5,151,006 5,386,655 235,649 4.6% +School Expense Increase Requests-Operating 160,000 150,000 (10,000) (6.3%) Transfers to community school - na Subtotal Expense 12,606,315$ 14,340,514$ 1,734,199$ 13.8% Group Medical Insurance- Active Employees 10,031,908 10,528,643 496,735 5.0% Group Medical Insurance- Retired Employees 3,343,969 3,792,592 448,623 13.4% General Insurance (all other insurance)2,625,507 3,108,306 482,799 18.4% Subtotal Insurance 16,001,384$ 17,429,541$ 1,428,157$ 8.9% Debt Service 9,310,589$ 10,008,430$ 697,841$ 7.5% Retirement 5,203,970$ 5,646,307$ 442,337$ 8.5% Total General Fund Operating Budget Items 90,629,509$ 96,960,381$ 6,330,872$ 7.0% Other Articles Unpaid Bills 33,052 20,000 (13,052) (39.5%) Reserve Fund 500,000 500,000 - - Health and Human Services 650,000 650,000 - - County Assessment 170,201 174,455 4,254 2.5% Other Post Employment Benefits (OPEB / GASB45) - 500,000 500,000 na Affordable Housing Trust Fund - - naCapital- na General Fund budgeted from revenue (Town Bylaw 11-12.1)- na Town Capital (Non-Recurring)1,003,750 974,146 (29,604) (2.9%) School Capital (Non-Recurring)- - - na Enterprise Fund Transfers - na Transfer to Enterprise Fund (Our Island Home - Beginning FY2011)3,500,000 3,500,000 - - Add: Additional Subsidy from Free Cash (Our Island Home)- na Transfer to Enterprise Fund (SWEF Operating Overrides 1999/2006)3,654,133 3,745,466 91,333 2.5% Add: Additional General Fund Subsidy to SWEF 2012-Forward 2,690,271 2,757,529 67,258 2.5% Total Other Article Appropriations 12,201,407$ 12,821,596$ 620,189$ 5.1% Other Statutory Expenditures Overlay and other deficits - - - na Cherry Sheet Offsets and Charges 1,002,462 984,563 (17,899) (1.8%) Total Appropriations and Other Statutory Expenditures 103,833,378$ 110,766,540$ 6,933,162$ 6.7% 1/8/21 26 Historical Information Our Island Home Stabilization and Trust Funds Certified Free Cash (1)CPE payment received in FY2016 represented two years of payments (2)The town did not receive the CPE payment in FY20, and has not received it as of 12/01/2020. Stabalization Balance `2016 2017 2018 2019 2020 General Stabilization $5,044,535 $5,053,411 5,059,485.00$ 5,411,964.00$ 5,541,745.00$ Capital Stabilization $1,250,000 $1,250,000 1,250,000.00$ 1,250,000.00$ 1,250,000.00$ OPEB Trust Fund $1,341,213 $1,903,825 2,390,558.00$ 3,130,312.00$ 3,681,241.00$ 2016 2017 2018 2019 2020 Certified Free Cash $6,642,219 $6,215,883 $9,593,671 $10,334,761 $9,655,001 Stabalization Balance `2016 2017 2018 2019 2020 General Stabilization $5,044,535 $5,053,411 5,059,485.00$ 5,411,964.00$ 5,541,745.00$ Capital Stabilization $1,250,000 $1,250,000 1,250,000.00$ 1,250,000.00$ 1,250,000.00$ OPEB Trust Fund $1,341,213 $1,903,825 2,390,558.00$ 3,130,312.00$ 3,681,241.00$ 1/8/21 27 Historical Information Local Option Rooms Tax 5 Year History 2016 2017 2018 2019 2020 Lodging 3,014,496.00$ 3,498,399.70$ 3,622,241.64$ 3,807,929.59$ 5,553,748.52$ Short-Term Rentals -$ -$ -$ -$ -$ Total 3,014,496.00$ 3,498,399.70$ 3,622,241.64$ 3,807,929.59$ 5,553,748.52$