Budget Process Timing Process Early July Requests are sent to - PowerPoint PPT Presentation

T OWN OF H AMBURG 2019 Proposed Budget Public Hearing October 29, 2018

Budget Process Timing Process Early July Requests are sent to each department head Early August Departmental requests due to Supervisor and are then reviewed and evaluated Mid-September Meetings are held with each department Aug. to mid- Payrolls, benefits, debt service, estimate revenues are all Sept. computed Mid-Sept Complete budgets for each fund, determine tax rate implications and make adjustments September 30 Provide Tentative Ad Valorem Budget to Council, Town Clerk, and public for review October 29 Hold public hearing, consider comments and make adjustments Before Nov. 20 Adopt budget and submit to County (by 11/20) 1

Funds within the Budget  General Fund  Highway Fund  Town Outside Village Fund  Insurance Reserve Fund  Special Districts  Enterprise Funds  Sewer Districts  Golf Course  Water Districts  Ice Arena  Fire Protection Districts  Town Park  Street Lighting District  Woodlawn Beach  Hydrant District 2

Budgetary Components  Estimated revenues  Appropriations  Appropriated fund balance  Tax levy 3

Budget Challenges Revenues:  NYS VLT allotment below committed level  State aid sources  Low interest rates continue  Limited departmental revenue opportunities 4

Budget Challenges § 54-L of State Finance Law: Local governments to receive 3.5% of the Net Win, of which the Town of Hamburg would receive 75% and the County 25% Estimated based on formula $ 2,150,000 Estimated 2019 VLT 865,679 Annual revenue lost $ 1,284,321 5

General Fund Sources of Revenue Departmental Charges & Fees Fines & 8% Forfeitures Interfund 4% Revenues 4% Appropriated Fund Balance 3% VLT Revenue 5% Federal & State Aid 8% Interest & Other Real Property 1% Tax Items 67% 6

Budget Challenges Appropriations: Continued high costs of health insurance  Capital reinvestment in the Highway Fund  Retirement system costs have stabilized at high levels  Salaries and personnel costs  Mandated pay-outs for retiring employees  7

Health Insurance $7,000,000 $6,500,000 $6,000,000 $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 2013 2014 2015 2016 2017 2018^ 2019^ ^ Budgeted. 8

Retirement Systems Mandated payments to the retirement systems have increased significantly since 2010. System Police & Employees Fire Total 2010 968,268 920,000 1,888,268 2019 (budget) 1,313,000 1,500,000 2,813,000 9

Retirement Rates 30.0% ERS 25.0% PFRS 20.0% 15.0% 10.0% 5.0% 0.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 10

All Operating Funds Allocation of Appropriations General Debt Service Government Transfers 1% Support 7% 10% Employee Benefits 29% Public Safety 28% Home & Community Services 2% Culture & Transportation Economic Recreation 12% Assistance & 9% Opportunity 2% 11

Appropriation History All Funds ($ millions) 48.0 47.5 45.9 44.6 43.4 42.6 42.2 40.8 40.4 39.6 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 12

Budget Factors Appropriated Fund Balance/Reserves: General Fund: $560,000  Town Outside Village Fund: $1,500,000  Highway Fund: $0  Taxable Assessed Valuation: 2018 2019 Change Town Outside Village $ 1,804,899,953 $ 1,824,257,825 $ 19,357,872 Village of Hamburg 325,633,748 329,315,241 3,681,493 Village of Blasdell 66,378,546 66,813,844 435,298 Total $ 2,196,912,247 $ 2,220,386,910 $ 23,474,663 13

Summary of Proposed Tax Changes Town-Outside Village Village Residents Residents Tax Rate Summary for 2019 (Proposed): General Fund $ 5.0442 $ 5.0442 Town Outside Village Fund 2.4088 - Highway - DA (Bridges) 0.0450 0.0450 Highway - DB 3.3207 - Rate (per $1,000 of assessed valuation) $ 10.8187 $ 5.0892 Actual tax rates - 2018 $ 10.8621 $ 5.0928 Dollar Change $ (0.0433) $ (0.0035) 14

Tax Impact 2019 proposed rate change from 2018:  $0.04 for residents outside the villages  $0.00 for village residents  2019 proposed rate increase from 2010:  $1.83 for residents outside the villages  $1.05 for village residents  Average increase over the past ten years:  1.74% for residents outside the villages  2.21% for village residents  15

Tax Composition TOWN OF HAMBURG TOWN RESIDENT $100,000 ASSESSED VALUE ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ CAPITAL CHARGES 23.35 MANDATORY SERVICES GOVERNMENT SERVICES 172.58 PUBLIC SAFETY 217.79 COMMUNITY SVCS/REC 6.86 **** BALANCE **** 397.23 NONMANDATORY SERVICES GOVERNMENT SERVICES 22.27 PUBLIC SAFETY 400.78 COMMUNITY SVCS/REC 238.23 **** BALANCE **** 661.28 ------------------------------------------------------------------------------------------------ TOTAL DUE 1081.86 16 ------------------------------------------------------------------------------------------------

Tax Composition TOWN OF HAMBURG VILLAGE RESIDENT $100,000 ASSESSED VALUE ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ CAPITAL CHARGES 13.19 MANDATORY SERVICES GOVERNMENT SERVICES 141.01 PUBLIC SAFETY 59.81 COMMUNITY SVCS/REC 1.27 **** BALANCE **** 202.09 NONMANDATORY SERVICES GOVERNMENT SERVICES 20.18 PUBLIC SAFETY 48.41 COMMUNITY SVCS/REC 225.06 **** BALANCE **** 293.65 ------------------------------------------------------------------------------------------------ TOTAL DUE 508.93 17 ------------------------------------------------------------------------------------------------

Composition of Tax Bill ($) ^ Tax Payer within Town of Hamburg and Hamburg School District (last ten years) $3,744 $3,567 $3,480 $3,567 $3,681 $3,403 $3,486 $3,215 $2,940 $2,783 $974 $958 $958 $948 $913 $950 $929 $895 $864 $853 $1,069 $1,039 $1,047 $1,015 $982 $1,013 $959 $965 $907 $895 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 School County Town ^ Based on a home with 2010 fair market value of $163,000 adjusted for inflation to 2018 fair market value of $194,000 ($100,000 assessed value) 18

Composition of Tax Bill ($) ^ Tax Payer within Village of Hamburg and Hamburg School District (last ten years) $3,744 $3,681 $3,567 $3,567 $3,480 $3,403 $3,486 $3,215 $2,940 $2,783 $2,027 $2,005 $2,030 $2,053 $2,017 $2,022 $2,004 $1,933 $1,802 $1,740 $958 $974 $958 $948 $913 $950 $929 $895 $865 $853 $472 $484 $501 $493 $433 $458 $436 $450 $402 $408 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 School Village County Town ^ Based on a home with 2010 fair market value of $163,000 adjusted for inflation to 2019 fair market value of $194,000 ($100,000 assessed value) 19

Tax Rate Comparison Ten Year History ($, per 1,000 of assessed valuation) 45.00 40.00 35.00 Hamburg Schools 30.00 Frontier Schools Village of Hamburg 25.00 Village of Blasdell Town 20.00 County 15.00 Town Outside Village 10.00 5.00 0.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20

Percent of Taxes Paid 2018 Rates County of Erie 18% Town of Hamburg Hamburg 19% CSD 63% Tax Entity Rate County of Erie $ 9.90 Town of Hamburg 10.86 Assumes that the taxpayer lives in the Town Hamburg Central School District 35.37 (outside villages) and in the Hamburg Central Total $ 56.13 School District. 21

Percent of Taxes Paid 2018 Rates County of Village of Erie Hamburg 14% 29% Town of Hamburg 7% Hamburg CSD Tax 50% Entity Rate County of Erie $ 9.90 Town of Hamburg 5.09 Village of Hamburg 20.60 Assumes that the taxpayer lives in the Village of Hamburg Central School District 35.37 Hamburg and in the Hamburg Central School Total $ 70.96 District. 22

Percent of Taxes Paid 2018 Rates County of Erie 21% Frontier CSD 57% Town of Hamburg 22% Tax Entity Rate County of Erie $ 9.90 Town of Hamburg 10.86 Assumes that the taxpayer lives in the Town Frontier Central School District 27.48 (outside villages) and in the Frontier Central Total $ 48.24 School District. 23

Percent of Taxes Paid 2018 Rates County of Village of Erie Blasdell 16% 32% Town of Hamburg 8% Frontier CSD Tax 44% Entity Rate County of Erie $ 9.90 Town of Hamburg 5.09 Village of Blasdell 20.03 Assumes that the taxpayer lives in the Village of Frontier Central School District 27.48 Blasdell and in the Frontier Central School Total $ 62.50 District. 24

Hamburg 2019 Budget Public Hearing We look forward to your comments and suggestions to further improve the budget. 25