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HomeMy WebLinkAboutFY_25_General_Fund_Budget_RecommendationsTown Administration Fiscal Year 2025 General Fund Budget Recommendations As of December 13, 2023 Select Board Meeting Select Board and Administration Goals and Priorities for FY 2025 •Balanced budget – within projected revenue •Strategic Plan –Housing, Housing, Housing –Environmental Leadership –Efficient Town Operations –Transportation –Healthy and Vibrant Community •Capital and operational investment in infrastructure/facilities –Facilities Maintenance Plan –Central Fleet Management Plan –10-year Capital Improvement Plan •Sustainability –Stormwater –Coastal Resiliency –Water Quality • Staffing –Employee retention, employee housing options 2 Strategic Plan –Housing •Increase opportunities to house Town employees and Islanders –Environmental Leadership •Sustainability •Coastal Resiliency/Hazard Mitigation •Stormwater •PFAS •Solid Waste –Efficient Town Operations •Support efficient operations through centralized and up-to-date facilities •Continued investment in technology, especially cyber security •Continue to ensure Town staff total compensation is competitive; employee retention strategies •Investment in infrastructure maintenance •Central Fleet management –Transportation •Continued evaluation of demand management parking (paid parking) •Parking enforcement •“E-bike” regulations –Healthy and Vibrant Community •Promote equity across Town operations •Community Human Services needs assessment •Town Human Services operational assessment 3 Strategic Plan Implementation Addressed with Budget Recommendations Additional Priorities •New Our Island Home project planning •Parks Master Plan activities •Baxter Road alternative access project •DPW facility relocation •Surfside Area Water Main Extension and Transportation Improvements •Capital planning and project management •Public Safety:staffing, training, equipment maintenance, call firefighter program •Somerset Sewer extension •Management of Town-controlled housing (owned and rented) 4 •Increase training and professional development opportunities; cross-train staff where appropriate •Succession planning •Continue to evaluate employee benefits and compensation •Review potential options for Town employee housing •Review and refine remote working options 5 Efforts to Enhance Recruitment and Retention of Town Employees •Revenue – Total Projected Revenue of $152,389,045 Net of Property Tax Abatements •Expenses – Total Projected Expenses of $152,252,602 • Unused Levy Capacity - Projected $136,443 6 FY 2025 General Fund Budget Overview 7 (1) FY 2025 State Aid represents level funding from FY 2024 approved figure •See Appendix A for detailed breakdown FY 2025 General Fund Budget Summary Comparison REVENUES FY 2024 FY 2025 $ Change % Change Property Tax 118,349,584 121,014,187 2,664,604 2.25% Local Receipts (All other)2,905,300 5,048,365 2,143,065 73.76% Motor Vehicle Excise 3,100,000 3,900,000 800,000 25.81% Rooms and Meals Tax 13,000,000 14,500,000 1,500,000 11.54% Licenses and Permits 1,350,000 1,975,000 625,000 46.30% State Aid (1) 4,385,979 4,822,149 436,170 9.94% Free Cash 1,571,663 817,900 (753,763) -47.96% Other Available Funds 175,000 175,000 - 0.00% TOTAL REVENUES 144,837,526 152,252,601 7,415,076 5.12% EXPENDITURES Municipal Departments 36,498,320 39,842,154 3,343,834 9.16% School Department 37,126,987 40,778,395 3,651,408 9.83% Non-Departmental 41,683,792 42,153,085 469,293 1.13% Special Appropriations 29,528,427 29,478,968 (49,459) -0.17% TOTAL EXPENDITURES 144,837,526 152,252,602 7,415,075 5.12% FY 2025 General Fund Projected Revenue 8 Tax Revenue 80% Local Receipts -All Other 3% Motor Vehicle 3% Rooms and Meals10% Licenses and Permits1%State Aid 3% FY 2025 General Fund Projected Expenses 9 Municipal Departments 26% School Department 27% Non-Departmental 28% Special Appropriations19% Category FY 2025 Town Manager Recommendation Notes Town Operational Expenses $10,968,247 Town Operational EIRs (1)$1,079,266 Included in Town expenses Town Salaries $28,687,913 Final contract in negotiation; c/b allowance Town Personnel EIRs $931,929 Included in Town salaries School Operational Expenses $6,832,525 School Operational EIRs $400,000 Included in School expenses School Salaries $33,345,870 Contract in negotiation; c/b allowance 10 FY 2025 General Fund Budget Expense Categories (1) EIR = Expense Increase Request Category FY 2025 Town Manager Recommendation % Change over FY 2024 Budget Recommendation Health Insurance Active $13,476,483 10% increase Retiree $4,492,161 10% increase General Insurance $4,693,275 14.7% increase Debt Service $12,447,065 per established schedule Retirement $7,044,101 8.5% increase Enterprise Fund Subsidies* $23,405,718 2.5% Increase 11 FY 2025 General Fund Budget Fixed Costs * See Appendix A for detailed breakdown Category FY 2025 Town Manager Recommendation % Change over FY 2024 Budget Recommendation Mosquito Control $185,994 2.5% increase Health and Human Services $825,000 No change County Assessment $183,552 2.5% increase Reserve Fund $500,000 No change Unpaid Bills $0 100% decrease Other Post-Employment Benefits (OPEB) $500,000 No change Affordable Housing Trust Fund $1,013,044 No change Overlay and Other Deficits $0 No change Cherry Sheet Charges $1,461,707 No change Community School $600,000 No change Min Cap Funding Req $1,589,947 n/a - 1% of prior year revenue TOTAL EXPENSES $152,252,602 12 FY 2025 General Fund – Special Appropriations •$2,799,995 Submitted Requests –One-time $579,900 –On-going $2,220,095 •$2,341,195 Recommended –One-time $417,900 –On-going $1,923,295 •To be funded through available tax levy, free cash, potential revenue increases 13 FY 2025 Town Expense Increase Requests (included in recommended budget, excluding School) 14 FY 2025 Recommended Town Personnel Expense Increase Requests Department Description of Expense Request One-time or Ongoing Approved EIRs * Personnel Expense Increase Requests (EIRs) HR Position reclassifications One-time 50,000 Fire 4 additional firefighters Ongoing 449,027 Fire Overtime increase Ongoing 100,000 IT Deputy IT Director Ongoing 158,511 PLUS Administrative Specialist Ongoing 94,025 Public Works Laborer Ongoing 98,374 Public Works Senior Equipment Operator Ongoing 101,723 Public Works Maintenance Technician Ongoing 105,134 Public Works Central Fleet Maintenance Technician Ongoing 105,134 Town Admin/Real Estate Office Paralegal*Ongoing - Town Admin Town Committee Coordinator* Ongoing - Total Personnel Expense Increase Requests 1,261,929$ * Not included in recommendations, currently under discussion 15 FY 2025 Recommended Town Operating Expense Increase Requests Department Description of Expense Request One-time or Ongoing Approved EIRs One-Time Operating Expense Increase Requests (EIRs) Communications Community Survey One-time 24,000 HHS/NR Education and Compliance Specialist - Consultant One-time 50,000 Town Admin EV Replacement Vehicle One-time 45,000 Town Admin Grant Application Support One-time 100,000 Town Admin Project Management Software & Support One-time 175,000 Town Clerk Increase to Election Workers One-time 12,400 Town Clerk Increase to Postage One-time 4,500 Town Clerk Increase for Presidential Election (poll pads, ballot box,etc)One-time 7,000 Communications GLOBO Translation/Interpretation Services Ongoing 20,000 Total One-Time Operating Expense Increase Requests 417,900$ 16 FY 2025 Recommended Town Operating Expense Increase Requests Department Description of Expense Request One-time or Ongoing Approved EIRs Ongong Operating Expense Increase Requests (EIRs) DEI Guest Speaker Series Ongoing 4,000 DEI Professional Development Ongoing 4,000 DEI Community Outreach Ongoing 3,000 Fire Increase Training Ongoing 20,000 Fire Increase Safety Uniforms Ongoing 12,000 Fire Increase Safety Protective Clothing Ongoing 20,000 Fire Increase Books/subscriptions Ongoing 6,000 HHS VNA, needle disposal, and weights and measures costs Ongoing 10,000 HR NeoGov services Ongoing 22,678 HR Interim market adjustment review Ongoing 10,000 IT Software licensing, hardware support and technology services Ongoing 34,388 Public Buildings Increase Electricity Ongoing 50,000 Public Buildings Increase Propane Ongoing 20,000 Public Buildings Increase Water Ongoing 8,000 Public Buildings Increase Repair & Maintenance: Building Ongoing 10,000 Public Buildings Increase Professional Services on-call engineering services contract Ongoing 100,000 Public Buildings Increase Custodial Ongoing 50,000 Public Buildings Increase Telephone Ongoing 20,000 Public Works Increase Rentals/Leases Ongoing 7,000 Public Works Increase Property: Trees Ongoing 40,000 Public Works Increase Other: Licenses Ongoing 19,300 Public Works Increase Safety: Uniforms Ongoing 6,000 Public Works Increase Safety: Protective Clothing Ongoing 5,000 Public Works Increase Road Materials Ongoing 85,000 Street Lighting Increase Electricity Ongoing 35,000 Town Admin Increase to Strategic Plan funding Ongoing 50,000 Town Admin Equipment Ongoing 10,000 Total Ongoing Operating Expense Increase Requests 661,366$ Total Town Operating Expense Increase Requests 1,079,266$ Total Town Personnel & Operating Expense Increase Requests 2,341,195$ Funding Source Amount Tax Levy & Other General Revenues $1,923,295 Free Cash $417,900 Capital Exclusion $0 Special Revenue Funds $0 Borrowing $0 Total - All Funding Sources $2,341,195 17 FY 2025 Town Expense Increase Requests Funding Source Detail 18 General Fund Certified Free Cash*$22,066,661 Fund Town Expense Increase Requests (one-time)$417,900 Supplemental Funding STM – Town Housing $3,200,000 Fund School Expense Increase Requests (one-time)$400,000 Fund Town and School Capital Requests $12,577,942 Unpaid Bills $0 Stabilization Fund $1,000,000 Capital Stabilization Fund $1,000,000 Other Post Employment Stabilization Fund $750,000 OPEB Trust Fund Contribution $500,000 Unallocated Free Cash $2,220,819 * Pursuant to Town policy and best management practices, Free Cash is used for non- recurring items such as capital projects or other one-time expenses Preliminary Free Cash Recommendation (Subject to Change) 19 FY 2025 Outstanding Items and Current Unknowns •State Aid Impact •Citizen Warrant Articles Potential Cost Impact •Short-term Rentals •Supply Chain and Labor Issues •Implementation of Coastal Resilience Plan and Budget Implication •Solid Waste Transition •Retirement Assessment •Harbor Place Project 20 Future Potential Costs •Integration and implementation of plans, including: •Strategic Plan •Coastal Resilience Plan •Master Plan •Parks Master Plan •Employee recruitment/retention, evolving workforce and housing •Affordable housing •Cybersecurity measures •Update of 5-year General Fund Forecast •Solid Waste •Current contract expires in 2025 •NRTA •Service modifications/free service •PFAS •Baxter Road alternative access •Operational costs of expanded/new facilities •Capital Improvement Plan •Hazard Mitigation Plan •Harbors Plan •Open Space and Recreation Plan •January 9:Town Administration FY 2025 Budget presentation to School Committee •January 10: Select Board public hearing; endorsement of recommended FY 2025 General Fund Budget •Mid-January – mid-March: Finance Committee review of General Fund and Enterprise Fund budgets; other financial appropriations •Tuesday, May 7: Annual Town Meeting (2024) •Tuesday, May 21: Annual Town Election (2024) 21 Next Steps 22 General Fund Revenue Breakdown FY 2021 – FY 2025 $0.0m $20.0m $40.0m $60.0m $80.0m $100.0m $120.0m $140.0m FY2021 (Actual) FY2022 (Actual) FY2023 (Actual) FY2024 (Budget) FY2025 (Budget) $89.2m $95.6m $118.7m $118.7m $120.2m $18.7m $25.0m $14.8m $20.4m $26.3m $3.9m $3.9m $4.4m $4.4m $4.8m$4.0m $4.6m $6.8m $1.6m $0.8m Series1 Series2 Series3 Series4 23 Town Expense Breakdown FY 2021 – FY 2025 $19.9m $19.7m $20.3m $22.6m $25m $29m $6.7m $7.1m $6.8m $9.0m $11.2m $11.0m $4.8m $5.6m $6.1m $6.3m $6.8m $7.0m $14.1m $14.9m $15.2m $16.6m $20.4m $22.7m $8.9m $9.2m $9.7m $11.3m $14.4m $12.4m $0.0m $10.0m $20.0m $30.0m $40.0m $50.0m $60.0m $70.0m $80.0m $90.0m FY2020 Actual FY2021 Actual FY2022 Actual FY2023 Actual FY2024 (Budget)FY2025 (Budget) Salaries Operations Retirement Medical & General Insurances * 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 24 General Fund Personnel History FY 2021 – FY 2025 0 50 100 150 200 250 300 350 400 FY2021 FY2022 FY2023 FY2024 Projected FY2025 Town School 25 FY 2025 General Fund Budget Breakdown – Revenues Budget Budget FY 2024 FY 2025 $ Change % Change Tax Revenue Limitations Levy Limit from Prior Year 92,860,276$ 107,431,783$ 14,571,507$ 15.7% Add: 2 1/2 % increase 2,321,507 2,685,795 364,288 15.7% Add: Prop 2.5% operating override - - - na Add: new growth estimate 1,250,000 1,250,000 - - Add: operating override 10,250,000 - (10,250,000) (100.0%) Levy Limit for Current Year 106,681,783 111,367,577 4,685,795$ 4.4% Add: Debt Exclusion 11,432,308 9,983,054 (1,449,254) Add: Capital Exclusion 970,000 (970,000) Maximum Allowable Levy for Current Year 119,084,091$ 121,350,631$ 2,266,541$ 1.9% OVERLAY (400,000)(200,000)200,000 (50.0%) Net Available:118,684,091$ 121,150,631$ 2,466,541$ 2.1% State Aid 4,385,979$ 4,822,149$ 436,170$ 9.9% Local Receipts: Motor Vehicle Excise 3,100,000 3,900,000 800,000 25.8% Rooms and Meals Tax 13,000,000 14,500,000 1,500,000 11.5% Licenses and Permits 1,350,000 1,975,000 625,000 46.3% Local Receipts - All Other 2,905,300 5,048,365 2,143,065 73.8% Total Local Receipts 20,355,300 25,423,365 5,068,065 24.9% Total Revenue 143,425,370$ 151,396,145$ 7,970,776$ 5.6% Other Sources 175,000 175,000 - - Free Cash Used 1,571,663 817,900 (753,763) (48.0%) Excess Overlay - - Total Revenue and Other Sources 145,172,033$ 152,389,045$ 7,217,013$ 5.0% Total Expenses and Other Uses 144,837,526$ 152,252,602$ 7,415,075$ 5.1% 334,507 136,443 26 FY 2025 General Fund Budget Breakdown – Expenses Budget Budget FY 2024 FY 2025 $ Change % ChangeGeneral Fund Operating Budget Items: Salaries - Town (includes allowance for collective bargaining)24,310,515$ 27,715,984$ 3,405,469$ 14.0% Town Expense increase Requests- Salaries 769,238$ 971,929$ 202,691 26.3% Salaries - School (includes allowance for collective bargaining)28,638,460$ 33,345,870$ 4,707,410 16.4% School Expense increase Requests- Salaries 1,658,142$ -$ (1,658,142) (100.0%) Transfers to community school 600,000$ 600,000$ - - Subtotal Salaries 55,976,355$ 62,633,783$ 6,657,428$ 11.9% Operating Expenses, Town:8,000,714$ 9,868,981$ 1,868,267 23.4% +Town Expense Increase Requests-Operating 3,236,395$ 1,099,266$ (2,137,129) (66.0%) Operating Override - 2011 Mosquito Control 181,458$ 185,994$ 4,536 2.5% Operating Expenses, School 5,588,527$ 6,432,525$ 843,998 15.1% +School Expense Increase Requests-Operating 641,858$ 400,000$ (241,858) (37.7%) Subtotal Expense 17,648,952$ 17,986,766$ 337,814$ 1.9% Group Medical Insurance- Active Employees 12,251,348$ 13,476,483$ 1,225,135 10.0% Group Medical Insurance- Retired Employees 4,083,783$ 4,492,161$ 408,378 10.0% General Insurance (all other insurance)4,091,932$ 4,693,275$ 601,343 14.7% Subtotal Insurance 20,427,063$ 22,661,919$ 2,234,856$ 10.9% Debt Service 14,422,131$ 12,447,065$ (1,975,066)$ (13.7%) Retirement 6,834,598$ 7,044,101$ 209,503$ 3.1% Total General Fund Operating Budget Items 115,309,099$ 122,773,634$ 7,464,535$ 6.5% Other Articles Unpaid Bills 12,163$ -$ (12,163) (100.0%) Special Purpose Stabilization Fund for Town Employee Accrued Liabilities -$ -$ - na Reserve Fund 500,000$ 500,000$ - - Health and Human Services 650,000$ 650,000$ - - Special Purpose Stabilization for Substance Abuse 175,000$ 175,000$ - - County Assessment 179,075$ 183,552$ 4,477 2.5% Other Post Employment Benefits (OPEB / GASB45) 500,000$ 500,000$ - - Capital Project Stabilization Fund -$ -$ - naStabilization fund -$ -$ - na Affordable Housing Trust Fund 1,013,044$ 1,013,044$ 0 0.0% Capital - naGeneral Fund budgeted from revenue (Town Bylaw 11-12.1)- na Town Capital (Non-Recurring)1,200,592$ 1,589,947$ 389,355 32.4% Enterprise Fund Transfers - na Transfer to Enterprise Fund (Our Island Home - Beginning FY2011)5,253,125$ 5,384,453$ 131,328 2.5% Add: Additional Subsidy from Free Cash (Our Island Home)- na Transfer to Enterprise Fund (SWEF Operating Overrides 1999/2006)3,935,081$ 4,033,458$ 98,377 2.5% Add: Additional General Fund Subsidy to SWEF 2012-Forward 2,897,129$ 2,969,557$ 72,428 2.5% Add: SWEF override 5,000,000$ 3,843,750$ (1,156,250) (23.1%) Transfer to Enterprise Fund (Stormwater)500,000$ 512,000$ 12,000 2.4% Transfer to Affordable Housing Trust Fund 6,500,000$ 6,662,500$ 162,500 2.5% Total Other Article Appropriations 28,315,208$ 28,017,261$ (297,947)$ (1.1%) Other Statutory Expenditures Overlay and other deficits - -$ - na Cherry Sheet Offsets and Charges 1,213,219 1,461,707$ 248,488 20.5% Total Appropriations and Other Statutory Expenditures 144,837,526$ 152,252,602$ 7,415,075$ 5.1% 27 Historical Information Stabilization and Trust Funds Certified Free Cash 2019 2020 2021 2022 2023 General Stabilization 5,411,964 5,541,745 5,770,018 5,761,339 7,664,198 Capital Stabilization 1,250,000 1,250,000 1,302,038 1,299,800 2,676,448 OPEB Trust Fund 3,130,312 3,681,241 4,248,650 4,885,113 6,438,196 2019 2020 2021 2022 2023 Certified Free Cash $10,334,761 $9,655,001 $19,281,934 $20,533,360 $22,066,661 28 Historical Information Our Island Home Solid Waste Enterprise (2) In FY2020 the Town didn't receive CPE payment (3) Two years of CPE were received in FY2021 (4) In FY2022 the Town didn't receive CPE payment (5) Voter Approved Override (6) Includes Voter Approved Override Our Island Home FY 2020 (2)FY 2021 (3)FY 2022 (4)FY 2023 (5)FY2 024 (5)FY 2025 (5) General Fund Subsidy 2,687,245 3,500,000 5,000,000 5,125,000 5,253,125 5,384,453 Certified Retained Earnings 1,619,047 2,046,379 6,188,036 5,882,535 9,511,246 CPE Payment - 2,822,647 - 1,523,766 Solid Waste Enterprise Fund FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 (6)FY 2025 (6) Landfill Operations 6,189,664 6,343,105 6,502,995 8,046,306 10,582,210 10,846,765 Landfill Mining - - - End of year Budget Transfer 500,000 Reserve Transfer 500,000 Section 33B Transfer 800,188 Certified Retained Earnings 1,453,694 932,731 722,202 843,565 1,092,449 29 Historical Information Local Option Rooms Tax 5 Year History 0 2000000 4000000 6000000 8000000 10000000 12000000 14000000 2019 2020 2021 2022 2023 Lodging Short-Term Rentals