SPRING 2006 TOWN MEETING Article 6: Budget Presentation

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SPRING 2006TOWN MEETINGArticle 6 Budget
Presentation

• Bernard Lynch
• Town Manager
• April 24, 2006

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ARTICLE 7
Budget

• I move that the Town raise and appropriate the
  sum of 86,598,145 and transfer 7,500 from the
  Wetlands Protection Act Revolving Fund 255,536
  from Sewer User Revenues and 25,511 from
  Overlay Surplus, to be combined with the
  1,900,000

Continued
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ARTICLE 7
Budget, cont.

• transfer from the Stabilization Fund as
  authorized in Article 6, to defray charges for
  the fiscal period July 1, 2006 to June 30, 2007
  according to the following items

Continued
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ARTICLE 7
Budget, cont.
Continued
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ARTICLE 7

Budget, cont.
Continued
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ARTICLE 7

Budget, cont.
Town Manager
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Fiscal Year 2007Budget Presentation

• Annual Town Meeting
• April 24, 2006

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Budget Development Process

• Joint Meeting on Town Finances -
• June 9, 2005
• Analysis of Financial Trends
• Presentation of 5 Year Financial Forecast
• Budget Model- funding allocation
• Original Projected Deficit for FY2007 was 2.6M

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Budget Development Process

• Series of Joint Meetings to update revenue/
  expenditure projections
• October 6, 2005
• November 29, 2005
• January 18, 2006
• March 8, 2006

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Budget Model
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Budget Model
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Revenue Highlights
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Revenue Highlights

• State Aid increase of 1,256,143
• 589K due to uncapping of Lottery 2 years ahead
  of schedule
• 464K increase in Chapter 70
• 145K increase in Charter Tuition Reimbursement
  (offset by higher assessment)
• Other minor increases in Quinn Bill, Exemptions
  Library Offset

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Revenue Distribution
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Local Taxes
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State Aid History
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State Aid
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Available Funds
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Local Receipts
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Expenditure History
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Expenditure Highlights

• Total budgetary increase 2,086,895
• 2.3 over FY2006
• Largest increases in employee benefits
  1,378,971
• Health Insurance 798K
• Retirement Assessment 497K

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Budget Busters

• Employee Benefits
• Utility Gasoline cost increases
• Limited Revenue Growth
• Chapter 70 Inequities
• Lower than expected growth in Building Permit
  Fees

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Expenditure Summary
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Expenditure Distribution
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Municipal Administration
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Municipal Administration

• Highlights
• Legal Services have been increased by 55K to
  reflect actual need
• Revaluation 25K
• New Tax Collection Software 36.5K
• Legal Services for delinquent tax collection
  13K
• Offset by functional consolidation of Assessor
  Tax Collectors Offices

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Public Education
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Public Education

• Highlights
• Nashoba Assessment 328K
• Increase of 9 students (increases minimum
  contribution)
• Increase in minimum contribution of 45K
• Capital equipment 26K
• Student transportation 91K

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Police Department/Dog Officer

• Highlights
• FTE reduction of 2 patrol officers
• Large increase in personnel costs due to
  contract settlement (FY04 06)
• Gasoline 41K (59 increase)
• Utilities 23K (32 increase)

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Fire Department

• Highlights
• Total increase in utilities gasoline 11,570
  (28)
• FTE reduction of 1 firefighter
• Large increase in personnel costs due to
  contract settlement (FY04 06)

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Inspections

• Highlights
• Minor increases in expenses to reflect inflation

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Public Works
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Public Works

• Highlights
• 1 FTE reduction in Highway will result in a
  layoff
• Street lighting 25K
• 5 increases in solid waste disposal hauling
  contracts
• elimination of leaf pick up program
• Snow Ice budget increased 40K to more closely
  reflect expenditure trends

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Cemetery Commission

• Highlights
• Change in fee split to have department fully
  fund expense budget.
• Minor increases in expenses to reflect inflation

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Municipal Facilities

• Highlights
• No funding for 3 new positions (2 HVAC 1
  Groundskeeper) as called for in plan
• HVAC maintenance continues via contract
• HVAC budget for FY07 is 115,120
• Funds to purchase 3 used vans

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Human Services

• Highlights
• Veterans Benefits increased by 13.5K to more
  accurately reflect current costs

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Community Enrichment

• Highlights
• No changes
• Programs continue to be generally supported by
  user fees

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Board of Health

• Highlights
• No changes

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Undistributed

• Highlights
• Proposal includes
• 12.2 increase in health insurance
• 13 increase in retirement assessment
• 19K increase in Unemployment Benefits to cover
  increased costs as a result of layoffs

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Library

• Highlights
• Proposal includes minimum funding to qualify for
  state funding

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Health Insurance
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Debt Service

• Highlights
• Funds all existing long-term debt services
• Funds 2005 Capital Improvement Plan
• Temporary funding for school construction
  renovation projects per project managers cash
  flow projections

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Debt Service - Overview
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Debt Projection
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Non-Appropriated

• Highlights
• 35 increase in charter school tuition, 50
  offset by increase in Cherry Sheet

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Issues of Concern

• Collective Bargaining
• Employee Benefits
• Rising costs
• Increased enrollment/change in enrollment during
  the Fiscal Year
• Ability to sustain service levels
• State Aid
• FY2006 Close Out
• Effect on Free Cash
• Effect on Revenue Projections for Tax Recap

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School FTEs
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Non-School FTEs
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School FTEs
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Non-School FTEs
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Spring 2006TOWN MEETING

• April 24, 2006