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Home My WebLink AboutFY23 General Fund Preliminary Budget Projections September 22, 2021 (PDF)FY23 GENERAL FUND PRELIMINARY BUDGET PROJECTIONS Select Board September 22, 2021 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 PRELIMINARY FY23 LEVY LIMIT FY22 Projected FY23 Projected FY2022 Levy Limit (PROJECTED)81,091,677 88,818,969 2.5% Increase 2,027,292 2,220,470 New Growth 700,000 700,000 Override 5,000,000 - FY23 Allowable Levy Limit (PROJECTED)88,818,969 91,739,439 Debt Exclusion - Current 8,831,295 8,824,241 FY2023 Maximum Allowable Levy 97,814,041 100,563,680 . FY2023 Preliminary Revenue Projection: FY23 PROJECTED LOCAL RECEIPTS FY2022 FY2023 II. LOCAL RECEIPTS REVENUE PROJECTION REVENUE PROJECTION 1. Motor Vehicle Excise Taxes 2,250,000 2,500,000 2. Other Excise Taxes - Rooms 7,000,000 7,252,000 2. Other Excise Taxes - Meals 350,000 800,000 2. Other Excise Taxes - Boat 30,000 30,000 3. Penalties & Interest on Taxes and Excises 475,000 475,000 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 385,212 575,000 8. Other Departmental Revenue 275,548 295,000 9. Licenses and Permits 891,350 1,350,000 10. Fines and Forfeits 265,000 265,000 11. Investment Income 250,000 200,000 12. Miscellaneous Recurring - - 13. Miscellaneous Non-Recurring (Indirect Costs)- - Total Local Receipts 12,902,410 14,472,300 FY23 REVENUE PROJECTIONS FY2022 FY2023 REVENUE PROJECTION REVENUE PROJECTION GENERAL FUND REVENUE SUMMARY I. TAXES- REAL ESTATE AND PERSONAL PROPERTY 97,814,041 100,563,680 Less: Abatements & Exemptions (400,000) (400,000) II. LOCAL RECEIPTS 12,902,410 14,522,300 1. Motor Vehicle Excise Taxes 2,250,000 2,500,000 2. Other Excise Taxes (Meals, Room, Boat)7,380,000 8,082,000 3. Penalties & Interest on Taxes and Excises 475,000 475,000 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 385,212 575,000 8. Other Departmental Revenue 275,548 295,000 9. Licenses and Permits 891,350 1,350,000 10. Fines and Forfeits 265,000 265,000 11. Investment Income 250,000 250,000 12. Miscellaneous Recurring - - 13. Miscellaneous Non-Recurring (Indirect Costs)- - III. STATE LOCAL AID 3,880,200 3,880,200 TOTAL GENERAL FUND REVENUE - PROJECTED 114,196,651 118,566,180 HISTORICAL ACTUAL REVENUE •FY2017 –FY2020 Actual FY2017 FY2018 FY2019 FY2020 FY2021 CAGR Real Estate & Property Taxes 74,166,729 78,242,069 80,038,594 82,955,094 89,169,545 4.7% Allowance for Abatements (981,500) (423,438) (609,195) (273,009) (357,237) (22.3%) Excise Tax - Motor Vehicles 2,753,546 2,953,243 3,338,861 2,946,898 3,329,078 4.9% Other Excise Tax- Boat Excise Tax 33,277 37,136 35,559 36,371 34,576 1.0% Other Excise Tax- Rooms Tax 3,498,400 3,622,242 3,807,930 5,553,749 7,980,286 22.9% Other Excise Tax- Meals Excise tax 1,061,396 1,102,316 1,168,641 1,141,414 851,755 (5.4%) Marijuana Local Option Tax - - - - 101,728 na Penalties and Interest on Taxes and Excises 686,444 584,171 605,322 587,727 793,136 3.7% Payment in Lieu of Taxes 14,706 8,794 8,067 12,066 16,524 3.0% Charges for Services 35,871 32,522 39,648 29,438 75,471 20.4% Fees 1,062,236 1,064,975 1,041,174 855,974 1,138,537 1.7% Rentals 489,713 708,532 678,913 660,077 640,115 6.9% Other Departmental Income (1)245,385 607,672 257,246 864,247 731,743 31.4% License & Permits 1,698,581 1,614,695 1,649,134 1,323,342 1,747,956 0.7% Fines and Forfeits 299,237 315,027 362,362 284,336 267,041 (2.8%) Investment Income 135,292 238,949 342,299 436,896 220,510 13.0% Miscellaneous Recurring Income (RDS Retiree Drug Subsidy)- - - - na Miscellaneous Non-Recurring Income (Indirect Costs, transfers)629,765 619,697 827,409 616,300 616,300 (0.5%) State Local Aid 3,287,323 3,356,737 3,531,908 3,933,911 3,928,363 4.6% Total Revenues 89,116,401 94,685,339 97,123,872 101,964,830 111,285,427 5.27% FY23 PRELIMINARY EXPENDITURES FY2022 FY2023 GENERAL FUND EXPENSE SUMMARY APPROVED BUDGET BUDGET PROJECTION Salaries - Town 21,608,162 21,883,425 Salaries - School 27,276,082 27,901,082 Transfer to Community School 500,000 500,000 Salaries - Town & School 49,384,244 50,284,507 Operating Expenses - Town 8,699,443 7,774,443 Operating Override - 2011 Mosquito Control 172,714 177,032 Operating Expenses - School 5,600,905 5,450,905 Transfer to Community School - - Operating Expenses - Town & School 14,473,062 13,402,380 Medical Insurance- Active Employees (1)11,089,196 12,419,900 Medical Insurance- Retired Employees 3,696,399 4,139,967 Medical Insurance 14,785,595 16,559,866 Laborer's Union Pension 75,000 75,000 Workers' Compensation & Life Insurance 300,399 337,949 Compensation Unemployment 175,000 200,000 General Insurance (other)2,491,063 2,802,446 General & Other Insurance 3,041,462 3,415,395 Retirement 5,805,868 6,299,367 Debt Service - Principal & Interest 9,758,430 9,500,438 TOTAL GENERAL FUND OPERATING EXPENSES - PRELIMINARY 97,248,661 99,461,953 FY23 PRELIMINARY EXPENDITURES FY2022 FY2023 APPROVED BUDGET BUDGET PROJECTION Other Articles - Includes Special Fund Transfers 4,624,155 4,524,796 Unpaid Bills - - County Assessment 174,455 178,816 Health and Human Services 650,000 650,000 Special Purpose Stabilization for Substance Abuse 95,000 - 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 1,625,000 1,625,000 Town & School Minimum Capital Funding Requirement 1,079,700 1,070,980 General Fund Transfers to Enterprise Funds Transfer to Our Island Home 5,000,000 5,125,000 Transfer to Solid Waste Enterprise Fund (SWEF)3,745,466 3,839,103 Add'l General Fund Subsidy to SWEF 2012-Forward 2,757,529 2,826,467 Add'l General Fund Subsidy to SWEF-Landfill Mining - TOTAL OTHER ARTICLE APPROPRIATIONS 16,127,150 16,315,366 Other Statutory Expenditures 1,012,802 1,012,802 Overlay and other deficits 1,012,802 1,012,802 Cherry Sheet Offsets and Charges 0 0 TOTAL GENERAL FUND EXPENSES - PRELIMINARY 114,388,613 116,790,121 TOTAL PROJECTED REVENUE - 118,566,180 TOTAL PROJECTED EXPENSES 116,790,121 PROJECTED EXCESS LEVY CAPACITY 1,776,059 HISTORICAL ACTUAL EXPENSES •FY2017 –FY2021 Actual FY2017 FY2018 FY2019 FY2020 FY2021 CAGR Salaries - Town 15,399,290 16,940,236 18,625,578 19,897,406 19,721,693 6.4% Salaries - School 19,258,197 21,775,190 23,180,307 24,656,590 25,404,019 7.2%Transfer to Community School 400,000 400,000 450,000 500,000 550,000 8.3%na Operating Expenses - Town 5,650,923 7,432,015 6,606,154 6,577,626 7,108,141 5.9%Operating Override - 2011 Mosquito Control 89,548 111,833 125,756 131,045 110,500 5.4% Operating Expenses - School 4,510,580 6,293,542 5,800,498 5,183,038 5,748,955 6.3%Transfer to Community School 65,000 65,000 - - - (100.0%)na Medical Insurance 10,171,618 10,417,085 11,206,133 12,495,203 12,907,311 6.1%Other Group Insurance 373,971 416,967 394,309 215,022 539,736 9.6% General Insurance (other)1,159,798 1,069,608 1,178,579 1,387,540 1,404,370 4.9% Debt Service 6,784,405 8,268,434 7,125,456 8,912,852 9,208,243 7.9% Retirement 3,921,256 4,096,124 4,420,538 4,750,913 5,639,866 9.5%na Total General Fund Operating Budget Items 67,784,585 77,286,034 79,113,308 84,707,235 88,342,834 6.8%na Other Articles & Special Revenue Fund 3,142,040 2,572,708 2,325,648 2,094,457 1,899,901 (11.8%) Other Articles (Incl. Non-Appropriated Expenses)22,199 2,477 7,447 (100.0%) County Assessment 170,201 170,201 170,201 170,201 170,201 0.0% Health and Human Services 369,340 400,000 450,000 450,000 650,000 15.2%Reserve Fund - - - - na Other Post-Employment Benefits Trust Fund (OPEB) 500,000 500,000 500,000 500,000 - (100.0%)Capital Project Stabilization Fund 250,000 - - - - (100.0%) Affordable Housing Trust Fund 1,000,000 500,000 300,000 - - (100.0%)Capital na Town & School Combined / Non-Recurring (2)830,300 1,000,030 898,000 974,256 1,079,700 6.8%na Enterprise Fund Transfers 9,892,785 8,503,664 8,250,970 8,465,845 9,843,105 (0.1%) Transfer to Our Island Home 2,762,535 1,511,446 1,511,446 2,276,181 3,500,000 6.1% Transfer to Solid Waste Enterprise Fund (SWEF)4,930,250 5,892,218 6,039,524 6,189,664 6,343,105 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 - - (100.0%) Transfer to Solid Waste (Free Cash)1,500,000 400,000 - - - (100.0%)Transfer to Airport - - - - - na Transfer to Siasconset Water - - - - - na na Other Statutory Expenditures (Cherry Sheet Offsets)433,373 487,846 481,079 513,116 999,240 23.2% Total Appropriations and Other Statutory Expenditures 81,252,783 88,850,252 90,171,005 95,780,653 101,085,080 5.6% To Be Determined •Citizen Warrant Articles •Free Cash •Town expects Free Cash to be certified the week of October 9, 2021 •Local Receipts (Q1/FY22) •Solid Waste •Solid Waste Manager•Take it or Leave it •Union Negotiations •Health Insurance •Retirement Assessment •Local Aid •NRTA (Service Changes) •PFAS •Cape and Islands Water Protection Fund •Wastewater Infrastructure Improvement Fund (WIIF) Brian E. Turbitt, Finance Director bturbitt@nantucket-ma.gov