Budget Discussion Budget Discussion 2/5/18
Agenda • CAFR Review • Budget Directive • School Fund Balance • School Fund Balance • General Fund Balance and Use of Reserves
Roger Lebreux
Glenys Salas
S ustainable Cycle of Municipal Growth Strong Infrastructure, Safe Neighborhoods, Great Population Schools etc Schools, etc Best-in-Class Property City Services Values Tax Revenue Tax Revenue
S ustainable Cycle of Municipal Growth Strong Infrastructure, Safe Neighborhoods, Great Population Schools etc Schools, etc Best-in-Class Property City Services Values Tax Revenue Tax Revenue
S ustainable Cycle of Municipal Growth Strong Infrastructure, Safe Neighborhoods, Great Population Schools etc Schools, etc Best-in-Class Property City Services Values Tax Revenue Tax Revenue
S ustainable Cycle of Municipal Growth Strong Infrastructure, Safe Neighborhoods, Great Population Schools etc Schools, etc Best-in-Class Property City Services Values Tax Revenue Tax Revenue
S ustainable Cycle of Municipal Growth Strong Infrastructure, Safe Neighborhoods, Great Population Schools etc Schools, etc Best-in-Class Property City Services Values Tax Revenue Tax Revenue
S ustainable Cycle of Municipal Growth Population Best-in-Class Property City Services Values Tax Revenue Tax Revenue
Potential Breakdown Population Growth With No Population Growth with no p p Property Value Increase Property Value Increase Housing Bust Housing Bust Population Best-in-Class Property City Services Values Tax Revenue Tax Revenue
Population vs Property Values in S aco Property Values vs Population Growth 2.50 21 Billions usands B Tho 2.00 16 d Value 1.50 11 Population Growth with no Property Value Increase Property Value Increase Assessed 1.00 6 0.50 0 50 1 - -4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Year Assessed Value Population
Potential Breakdown & S olutions Population Growth With No p Population Growth With No p Property Value Increase Property Value Increase Housing Bust Housing Bust Population Best-in-Class Property City Services Values Solutions: Increase Excise Taxes • Increase Fees • Tax Revenue Tax Revenue Increase Mil Rate l •
Potential Breakdown Population Best-in-Class Property City Services Values Property Value Increase With Property Value Increase With No Revenue Increase No Revenue Increase Tax Cuts Tax Cuts State Claw-Backs State Claw-Backs Tax Revenue Tax Revenue Flat fees Flat fees l l f f Business Incentives Business Incentives
Potential Breakdown & S olutions Population Best-in-Class Property City Services Values Property Value Increase With Property Value Increase With Solutions: No Revenue Increase No Revenue Increase Increase Mil Rate • Tax Cuts Tax Cuts Increase Fees • State Claw-Backs State Claw-Backs Optimize business incentives p • Tax Revenue Tax Revenue Flat fees Flat fees l l f f to cover city costs Business Incentives Business Incentives
Potential Breakdown Increased Services without population growth Unfunded State Mandates Population Best-in-Class Property City Services Values Tax Revenue Tax Revenue
Potential Breakdown & S olutions Increased Services without population growth Unfunded State Mandates Population Best-in-Class Property City Services Values Solutions: Increase Fees • Increase Mil Rate • Tax Revenue Tax Revenue Lobby Augusta to Reduce Unfunded Mandates + Increase Revenue Sharing
Risky Alternatives to Tax-Based Revenue Growth Population Best-in-Class Property City Services Values General Fund Fund Tax Revenue Tax Revenue
Risky Alternatives to Tax-Based Revenue Growth Population Best-in-Class Property City Services Values Borrow Tax Revenue Tax Revenue
Risky Alternatives to Tax-Based Revenue Growth Population Best-in-Class Property City Services Values Tax Revenue Tax Revenue
Worst Case S cenario Population Best-in-Class Property City Services Values Tax Revenue Tax Revenue
History of Property Taxes Mil Rate 25.00 20.00 15.00 10.00 5.00 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
History of Property Taxes Mil Rate 25.00 20.00 15.00 10.00 5.00 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
History of Property Taxes Mil Rate 25.00 20.00 15.00 10.00 5.00 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
History of Property Taxes Mil Rate 25.00 20.00 15.00 10.00 5.00 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
History of Property Taxes Mil Rate 25.00 20.00 15.00 10.00 5.00 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Current S tate of the City Strained City Services Population Best-in-Class Property City Services Values Unfunded State Mandates for Schools Tax Revenue Tax Revenue
Issues to Be Addressed Strained City Services Population Best-in-Class Property City Services Values Unfunded State Mandates for Schools Tax Revenue Tax Revenue
Alternatives for the City Council Budget Directive Invest For Growth M Meet Critical t C iti l Needs Maintenance of Effort
Maintenance of Effort – 3.8% Growth • Maintain Current Level of Services • Cover State Mandated $0.32 increase to Mil Rate • $0.38 total Increase to Mil Rate • Additional increases funded by • Natural growth in property values g p p y • Re-instated Downtown Development District • Forecasted gains in local and state g revenue • Risk: Critical needs facing the city remain unaddressed
Causes of Mil Rate Increase $19.76 School Cost $19.38 Increases, $0.38 $ $0.38 $0.06 State Mandated Tax Increase, $0.32 Current Current Maintenance of Maintenance of Effort
How Does the Mil Rate Compare? Mil Rate $30.00 $25.00 $20.00 $15 00 $15.00 $10.00 $5.00 $0.00
Meet Critical Needs – 7.2% Growth • Meet critical needs & restore city services to full capacity • $1.54 Increase in Mil Rate • Other funding sources • Eliminate excise rebates • Adjust City Hall fees to reflect j y inflation costs • Adjust dumping fees so transfer station is self-sustaining • Bring compliance inspections in- house
How Does the Mil Rate Compare? Mil Rate $30.00 $25.00 $20.00 $15 00 $15.00 $10.00 $5.00 $0.00
Invest for Growth – 14.0% Growth • Major investment for the future • $2.89 Increase in Mil Rate • Other Funding Sources • Watercraft Excise Adjustment • Downtown Parking fees • TIF Revenue from major new j development projects + Critical Needs Funding Items • Kick-off the Mayor’s vision for y Saco: $3 Billion Value | 25K Citizens $3 Billion Value | 25K Citizens $3 Billion Value | 25K Citizens $3 Billion Value | 25K Citizens
How Does the Mil Rate Compare? Mil Rate $30.00 $ $25.00 $20.00 $15.00 $ 5 $10.00 $5.00 $0.00
S ummary of S cenarios By Organization Marginal Incr Incr % Total Increase Incr % Total Prop Mil Inc % Maintenance of Effort Revenue ‐ $1,185,375.43 2.3% ‐ $1,185,375.43 2.3% ‐ $53,710,619.42 $19.76 2.0% Maintenance of Effort Expense $2,006,092.70 3.8% $2,006,092.70 3.8% $54,531,336.69 +$0.38 School Maintenance of Effort Expense $1,408,807.34 5.9% $1,408,807.34 5.9% $25,470,569.34 City Maintenance of Effort Expense $597,285.36 2.1% $597,285.36 2.1% $29,060,767.35 Critical Needs Revenue ‐ $126,000.00 0.2% ‐ $1,311,375.43 2.5% ‐ $53,836,619.42 $20.92 8.0% Critical Needs Expense Critical Needs Expense $1 794 729 88 $1,794,729.88 3 4% 3.4% $3 800 822 57 $3,800,822.57 7 2% $56 326 066 56 7.2% $56,326,066.56 +$1 54 +$1.54 School Critical Needs Expense $1,176,938.12 4.9% $2,585,745.45 10.7% $26,647,507.45 City Critical Needs Expense $617,791.76 2.2% $1,215,077.12 4.3% $29,678,559.11 Invest for Growth Revenue ‐ $3,179,799.14 6.1% ‐ $4,491,174.57 8.6% ‐ $57,016,418.56 $22.27 14.9% Invest for Growth Expense $3,571,811.00 6.8% $7,372,633.57 14.0% $59,897,877.56 +$2.89 School Invest for Growth Expense $831,360.00 3.5% $3,417,105.45 14.2% $27,478,867.45 City Invest for Growth Expense City Invest for Growth Expense $2,740,451.00 $2 740 451 00 9 6% 9.6% $3 955 528 12 $3,955,528.12 13 9% $32 419 010 11 13.9% $32,419,010.11
Three Budget Directives for Fiscal Y ear 2019 Budget Directives Summary Mil Rate Chg $59.9M Mil Rate Chg $56.3M +$2.89 $54.5M Mil Rate Chg +$1.54 +$0.38 Maintenance of Effort Meet Critical Needs Invest for Growth
Jason DiDonato
Glenys Salas & Kevin Sutherland
S ustainable Cycle of Municipal Growth Strong Infrastructure, Safe Neighborhoods, Excellent Population Schools etc Schools, etc Best-in-Class Property City Services Values Tax Revenue Tax Revenue
RS U Withdrawal Was an Invest for Growth Decision Thornton Academ y Population & RSU Withdrawal Best-in-Class Property City Services Values Tax Revenue Tax Revenue
Recommend
More recommend
