Middleborough FY16 Operating Budget

Report
MIDDLEBOROUGH
FY16
OPERATING BUDGET
February 12th, 2015
Robert G. Nunes
Town Manager
FY16 HIGHLIGHTS
•
Strong financial policies and procedures
•
Conservative revenue projections
•
Consistent monitoring of revenues and expenditures
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Nonuse of one-time reserves on recurring expenses
•
No causes for structural deficit in FY17
•
Stabilize workforce hours
•
Exceed state requirements for education spending
•
Improved Technology
•
$1.3 in capital improvements throughout town government
•
Implementation of a five year pavement management program
•
$25m capital upgrade at the water pollution control facility
•
Implementation of automated town wide curbside trash program
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New water treatment plant on East Main Street
REVENUES BY SOURCE
$70,732,094.26
9%
8%
Tax Levy
State Aid
Local Receipts
31%
52%
Other & Offsets
REVENUES
Projected Revenues:
Levy
35,585,189.00
2.5% Increase
889,630.00
New Growth
400,000.00
Debt Exclusions
144,699.00
Total Tax Levy
37,019,518.00
Other Projected Revenues:
State Aid
20,511,000.00
SBAB Reimbursement
1,313,437.00
Local Receipts
5,457,000.00
High Point Pilot
136,875.00
Debt Stabilization
200,000.00
Prior Year Overlay Surplus
180,419.26
27,798,731.26
PROPERTY TAX LEVY
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The property tax is:
•
•
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A statutory mechanism to fund local government operations
Administered by local government
Largest source of local government revenue
•
The average single family FY15 tax bill is $4,126.
•
The average statewide single family FY15 tax bill is $5,230.
•
The average FY15 single family residential value is $261,491.
•
FY16 : 37,019,518*
*Includes levy, 2.5% increase, new growth and debt exclusions
New Growth:
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FY16 Projection: $400,000
•
FY15 Certified: $452,079
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FY14 Certified: $608,939
STATE AID
•
The two largest forms of state aid are Chapter 70 and Unrestricted General Aid.
•
FY15: $20,511,000
• Chapter 70:
$17,459,284
• Unrestricted Aid: $2,193,849
•
FY16 Level Funded at $20,511,000
•
School Building Reimbursement on the Nichols Middle School $1,313,437*
*Reimbursement until 2020
REVENUES
Offsets from Enterprise Funds:
Health and Life
1,190,539.00
Retirement
1,585,020.00
FICA
85,135.00
Workers Comp
66,345.00
Debt
1,228,704.00
Unclassified
130,316.00
Administration
535,031.00
4,821,090.00
Other:
G&E Pilot
650,000.00
Council on Aging
300,000.00
WPAT Reserve
142,755.00
Total Offsets & Other
5,913,845.00
LOCAL RECEIPTS
•
Examples of local receipts include motor vehicle excise, meals and rooms excises,
penalties, medicaid reimbursements, fees, licenses & permits, fines, investment
income, charge for service
•
FY16 Projection:
•
FY15 Projection: $5,350.000.00
•
FY14 Actual:
$5,457,000.00
$6,197,492.00
Motor Vehicle Excise:
•
FY15 February Commitment: $2,179,905.00 or $117,518 over last year’s commitment
•
FY 14 Collected: $2,850,057*
•
FY13 Collected: $2,429,596*
* Includes prior years
LOCAL RECEIPTS
•
Local Option on Meals and Rooms:
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Rooms: Local communities may levy a tax up to 6%
•
FY15 Collections ahead of FY14 after two distributions
•
•
•
FY14 Collected: $305,352
FY13 Collected: $331,850
Meals: Communities may impose a levy on restaurant meals at the rate of .75% on the
gross bill
•
•
•
FY15 Collections ahead of FY14 after two distributions
FY14 Collected: $325,191
FY13 Collected: $300,647
FREE CASH
•
Free Cash is defined as unrestricted and available funds for appropriation by town
meeting.
•
Free Cash is certified as of July 1 based on the June 30th balance sheet which reflects
results from the prior year.
•
Free Cash should be considered as non recurring revenue.
•
In October, town meeting voted several free cash transfers to the general and
stabilization funds.
•
7/1/2015 free cash will be certified in the fall of 2015 and will be used for non
recurring expenses in FY16 and to be voted at special town meeting
•
7/1/2014 Free Cash: $1,728,727
•
7/1/2013 Free Cash:
•
7/1/2012 Free Cash: $1,741,758
$690,623
STABILIZATION FUND
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A stabilization “rainy day” fund is a special reserve fund into which monies may be
appropriated and reserved for a later appropriation.
•
Stabilization Fund balances carry forward form one fiscal year to another.
•
Interest earned on investment of the balance in this fund remains with the fund.
•
A two-thirds vote of town meeting is required to appropriate into or from the fund, and
to amend the purpose of the fund.
•
Current balance in the stabilization fund is $2,338,403.59
FY16 GENERAL FUND APPROPRIATION
$69,445,013.26
5%
4%
10%
23%
4%
42%
7%
1%
2%
2%
General Government
Public Safety
Education
DPW
Human Services
Culture
Debt
Transportation
Employee Benefits
Unclassified
PERCENTAGE OF FY16 GENERAL FUND
APPROPRIATION
General Government
2,497,044.81
3.60%
Public Safety
7,266,516.05
10.46%
28,894,643.00
41.61%
DPW
1,072,411.00
1.54%
Human Services
1,560,527.31
2.25%
887,192.00
1.28%
Debt
4,804,315.00
6.92%
Transportation
2,761,908.00
3.98%
16,098,983.09
23.18%
3,601,473.00
5.19%
Education
Culture
Employee Benefits
Unclassified
69,445,013.26
100.00%
EXPENDITURES
•
FY16 Budget Requests: $71,899,508.70
•
•
Restored clerical hours in the following departments:
•
•
•
•
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$2,454,495.44 in cuts were made
Accountant’s Office
Clerk’s Office
Conservation Office
Planning Board
2.25 hours
15 hours
5 hours
7 hours
Clerical Pool
•
•
Veterans
Building
10 hours
9 hours
•
Increase Conservation Agent’s hours from 37 to 40
•
Increase Youth Services Librarian duties by 7 hours
EXPENDITURES
•
Office of Community and Economic Development (OECD)
•
•
As of July 1, grant funding will run out, which will leave the town without an
Economic Development Director. This appropriation funds the Director’s position
and 10 hours of clerical support.
Police
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• 2 civilian dispatchers
• Increase in hours in patrol
Fire
•
•
Current staffing levels
Information Technology
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Funding for:
• Online Permitting
• Codification of Bylaws
HEALTH INSURANCE
Group Insurance Commission (GIC)
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Middleborough joined in July of 2014
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3 year contract
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GIC offers health insurance to all state employees and 65 cities, towns, regional school
districts, charter schools and planning councils.
•
GIC is currently facing a $120m deficit that could grow to $150-190m.
•
Subscribers to GIC could see increases in premiums, copayments and deductibles to
close the budget gap.
•
GIC commission members will vote in mid-February on FY16 rates.
•
The FY16 health insurance appropriation will be fully funded to provide health
insurance to employees in the town’s health program.
•
The FY16 health insurance appropriation is $9,329,199.09.
PENSION
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Middleborough is a member of the Plymouth County Retirement Association
•
•
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23 communities
Housing Authorities
Special Districts
FY15 Appropriation: $5,233,794
FY16 Appropriation: $5,660,784
Increase:
$426,990
•
The appropriation is fully funded in FY16
•
A $200,000 transfer will be made at the fall town meeting to the Other PostEmployment Benefits Stabilization Fund (OPEB).
DEBT SERVICE
•
The FY16 Appropriation is $4,804,315*
* A decrease of $334,399 over FY15
•
The Capital Planning Committee (CPC) received more than $5.4m in capital requests
for FY16.
•
The town’s financial position is strong which will allow town meeting to authorize up
to $1.3m in borrowing in FY16.
•
The CPC will present a capital plan to annual town meeting for approval.
SNOW AND ICE
Blizzard of 2015 Snow Removal Costs
$110,277.75
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A snow emergency was declared by the Board of Selectmen.
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Reimbursement for storm costs from MEMA will be sought.
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• Initial Damage Assessment Report (IDA) was filed in the amount of $173,632.79.
The FY15 shortfall will be closed at annual town meeting.
•
Free Cash will used to supplement the FY16 appropriation at special town meeting.
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The FY16 appropriation base was increased by $40,000.
•
The appropriation is underfunded.
•
Future annual appropriation increases will occur in the snow and ice line item.
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The DPW is responsible for plowing 170 miles of roads and 20 miles of sidewalks.
COLLECTIVE BARGAINING
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Collective Bargaining Agreements are in place until June 30th with the exception of the
two police unions.
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The police have been working without a contract for the past two years.
•
Funding will be in place to fund the police contract award that will be issued by the
Joint Management Labor Committee (JLMC).
•
Negotiations will commence shortly with all town unions.
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The FY16 Budget funds collective bargaining agreements on the school side.
ENTERPRISE FUNDS
•
Enterprise accounting allows for a separate accounting and financial reporting
mechanism for municipal services for which a fee is charged.
•
Retained earnings stay with the fund and are certified similar to free cash.
•
Indirect costs/offsets are costs for various administrative overhead.
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FY16 $4,821,090
Enterprise Funds:
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•
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Sanitation
Wastewater
Water
SANITATION
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FY16 Appropriation: $1,038,975.00
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A transfer from retained earnings will not be sought to balance the fund.
•
Current balance in retained earnings: $200,506.96
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Automated trash pickup starts July 2015
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•
•
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4 new trucks purchased
6600 96 gallon recycling carts
5500 64 gallon carts
1000 32 gallon carts
$1,014,252
$307,560
$216,370
$32,340
•
Town Meeting authorized the borrowing for the procurement of trucks and recycling
carts.
•
The town will receive a $74,000 DEP Grant to offset the costs of the carts.
WASTEWATER
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FY16 appropriation: $1,839,189
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Current balance in retained earnings: $1,331,100.44
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A transfer from retained earnings will not be sought to balance the fund.
•
The DPW will seek authorization to purchase capital equipment at annual town
meeting.
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The 25m upgrade at the Water Pollution Control Facility is ongoing.
•
The General Contractor (GC) contract will be signed by April 1st.
WATER
FY16 Appropriation: $3,664,595.00
•
Current balance in retained earnings: $2,318,625.02
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A transfer from retained earnings will not be sought to balance the fund.
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DPW will seek authorization to purchase capital equipment at annual town meeting.
CONTACT
For additional information please feel free to contact:
Robert G. Nunes
Town Manager
[email protected]
508-947-0928

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