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