Somerville Budget Overview Mayor Joseph A. Curtatone June 12, 2017 - PowerPoint PPT Presentation

F Y 1 8 Somerville Budget Overview Mayor Joseph A. Curtatone June 12, 2017

Serving Somerville Together A near level- service budget focused on… Budgeting strategically with an eye to the future Keeping our schools on a path of success Strengthening core services to enhance our quality of life Meeting community needs and 2 responding to community priorities

FY2018 Appropriations FY18 General Fund Budget Total Total State Municipal Operating Assessments Appropriation Budget $15.8M $233M $217.2M 4.79% increase over FY2017 3

Operating Budget 4% 2% 2% 1% 6% 29% School Department Public Safety 9% Pension & Fringe Public Works General Government State Assessments Debt Service 12% Culture & Recreation Other Overlay Reserve 18% 4 17%

Year-over-Year Growth FY17-FY18 $3.5M $3.0M $2.5M $2.0M $1.5M $1.0M $500k $0k 0 -$500k

We will NOT be going to the tax levy limit FY18 Levy Limit = $143M $664k under limit

FY2018 Revenue by Source Changes in FY18: • Hotel/motel tax revenue up 7% • Meals tax revenue up 3.7% Other Financing Sources All Other Fines and Forfeits • PILOT payments up 5.6% Revenue Sources 3% 3% • Permit revenue remains at historic 2% highs Excise Taxes • No fee increases 4% • Net State Aid is flat Licenses & Permits 6% Property Taxes State Revenue Licenses and Permits Excise Taxes Other Financing Sources Fines and Forfeits State Revenue 21% Fees PILOT Payments Property Taxes Miscellaneous Recurring 61% Penalties and Interest

Planning for Growing local State aid down revenues help 39% since 2002 address the loss Greater $57M Self- Reliance $34.6M 8

Historical New Growth Review 5.0 Millions Projected New Growth Contributors for FY18: 4.5 ASQ Block 11 (Retail) ASQ Block 6 (Mixed Use) 4.0 ASQ Block 5A (Hotel/Res/Retail) 3.5 3.0 $2.9M 2.5 2.0 1.5 1.0 0.5 0.0 9 *FY18 Projected

PILOT Payments Increasing $1.6 Millions $1.3M $1.4 $1.2 $820k $1.0 $0.8 $0.6 $0.4 $192k $0.2 $280k 10 $0.0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 (Est)

Other Revenues & Excise Trends • Excise Trends • Motor Vehicle: Slight reduction projected for FY18 • Hotel/Motel: Moderate growth • Meals Tax: Strong growth Hotel/Motel Excise Revenue Meals Tax Revenue $1.0 $2.5 Millions Millions $0.8 $2.0 $947k $2.0M $1.1M $0.6 $1.5 $604k $0.4 $1.0 $0.2 $0.5 11 $0.0 $0.0

FY18 Building Permit Projection $10 $9 ASQ Block 8 $8 $3.9M $7 USQ Block D2.3 $6 $5 $1.8M USQ Block D2.2 $4 $0.5M $3 Medium Projects $1.3M $2 >$50k $1 $2M Small Projects <$50k $- Projected Building Permit Revenue 12 FY18 (In millions of dollars)

Board Action Needed on Parking Meter Receipts • The City has long used parking meter receipts to reduce the tax levy, which reduces tax growth. • The Municipal Modernization Act now designates meter receipts as general fund revenue. • The Board of Aldermen will be asked to vote to accept three statutes, which will collectively allow the existing practice. 13 Photo Flickr Joey Zanotti http://bit.ly/2rhSW3h

FY18 Targeted Investments 14

Maintaining Historic Level of Investment in Our Schools Priorities in FY18: • Out-of-school programs • Technology learning • STEAM offerings • Middle school sports • Universal Kindergarten Readiness and Pre-K, including Head Start • FabVille innovative learning 15 • Special education services

Investing in our Human Capital Recruiting and retaining high-quality, diverse staff • Contingency • Increase retention to planning for avoid: anticipated union • Loss of productivity contract agreements • Loss of continuity & institutional knowledge • Phase II of • Replacement costs Municipal Compensation • Recruit quality talent Advisory Board (MCAB) approved • Support diversity goals salary adjustments 16

Funding Preventive Maintenance Now to Save on Costs Later • Fleet Maintenance increase to invest in Preventive and maintain City maintenance vehicles pays for itself and more in • Buildings and improved asset Ground increase to maintain our parks, longevity and schools, very old decreased repair buildings and costs. community spaces 17

Funding Community Priorities Field Workforce Maintenance Development • To meet intensifying • Establish long-range use and demand, workforce double the funding for development plan field maintenance. • Fund FabVille fabrication lab manager • Expand programs for culinary entrepreneurship 18

Expanding Access to Knowledge and Learning • Two new librarians will allow the Libraries to offer services and programming that residents value. • Increased library materials funding will go to traditional, digital 19 and innovative resources.

Minimal New City Positions 3.125 Budget Neutral New Positions Staff Changes • 2 full-time Librarians We’ve also • 1 full-time Payroll combined positions Coordinator and transitioned • 0.125 HR Recruiter existing positions to (added 5 hours per meet our needs with week to position) no budget impact. Our new tax ombudsperson is an example. 20

We are also preparing for major projects GLX High School Citywide & Other Capital Union Sq. Projects Infrastructure 21

We invest in major projects to meet SomerVision goals 22

And we are on our way, despite challenges SomerVision: Baseline set in 2010, adopted in 2012 23

Somerville can meet today’s needs while investing in tomorrow because… 24

Together, we’ve kept our finances strong and sound Our highest bond rating ever A growing commercial tax base Growing stabilization funds 25 Addressing long-term liabilities

We save strategically GLX Fund: Our stabilization funds • GLX Stabilization Fund: Will receive receipts of Powder are growing, which • A means of paying down debt service for House school sale. the Green Line Extension. ultimately helps keep our • • $1M free cash appropriation Receipts of Powder House school to GLX fund. borrowing costs down. proposed. • Appropriating $1M in free cash in FY18. • In this budget, we Receptacle for developer • Receptacle for developer contributions. contributions. propose several Facility Construction & Renovation Fund: significant contributions • A means to pay down debt service for the Facility Construction & Renovation High School Renovation. to our reserves. • Fund (intended for SHS): Currently has $2M in Partners building permit revenue. • Currently has $2M in Partners • Appropriating $1M in free cash in FY18. building permit revenue. • $1M free cash appropriation proposed. Water and Sewer Stabilization Fund: 26 • $1.4M free cash appropriation proposed.

And Somerville continues to deliver more with less. 27

One of the Lowest Spending per Capita in State (General Fund FY17) Somerville: $2,737 Boston: $3,415 28 Cambridge: $5,066 Based on 2016 ACS population estimates and published 2017 city budgets.

Highest Residential Exemption in Commonwealth Through the support of the Board of 35% Aldermen, our resident property owners can save $2,747 in FY17. That’s $229 per month.

We’re Keeping Our Residential Tax Rate Lower Our rate is lower Residential Tax Rate FY17 than most, plus 18 16.58 most don’t have residential 16 exemptions 14 11.67 12 10 8 6.49 6 4 2 0 Source: Dept of Revenue 2017 Community Comparison Spreadsheet

A Determined Community City Government The Community

Thank you 32