TOWN WN OF SO SOMERS MERS Pu Publ blic ic Hear aring ing Pr - PowerPoint PPT Presentation

TOWN WN OF SO SOMERS MERS Pu Publ blic ic Hear aring ing Pr Propose posed d An Annua nual l Bu Budge get FY 2017-20 2018 April 18, 2017 1

PROP OPOSED OSED 2017-20 2018 8 BUD UDGET PUB UBLIC IC HEARING ING Pre resentation ntation of t the Prop roposed ed Budg dget et Introduction oduction James es Per ersano Budg dget et Over ervie iew Mic ichael el Marin inacci cio Town Gover ernmen nment Lis isa Pel elleg egrin ini Boar ard d of Edu ducat ation ion Dr. Mayna nard d Suf uffred fredin ini Public lic Comme mments ts Audi dien ence 2

PUB UBLIC IC COM OMMENT MENT SE SESS SSIO ION GU GUIDE DELINE LINES • Only one per e person spe peaks at a t tim ime • State e your r name an e and d add ddres ess pr prio ior to pr pres esen entin ing g your r commen mments ts • Lim imit it commen omments ts to 5 min inut utes. es. Onc nce e ever eryone one has as bee een hea eard d you u wil ill have e the e opp pportuni tunity ty to spe peak aga gain in • Pl Plea ease e be e res espe pectful ctful - ever eryone one has as the e rig ight to be e hea eard • Thank you u for r your r coope opera rati tion on 3

Michael ael Marin inacci accio Chief f Fi Financial ancial Of Officer cer TOWN BU N BUDGET OVERVIEW IEW 4

OVE VERVIE VIEW • Pr Provide vide back ckgr grou ound nd • Cover er Town wn budge dget t highli ghligh ghts • Look ok at Expenditu penditure re budge dget sum ummar mary • Cover er De Debt bt Service vice and d Capital ital Pr Projects ojects • Revenu enue budge dget t over ervi view • Us Use of fund nd balan lance ce • Mill l rate e growth wth and d com ompa pari rison sons • Tax x impact mpact 5 5

BA BACKGR GROU OUND ND • Town’s Grand List increased approximately $6 million or 0.68% higher than last year ($852 million less $846 million) • That slight increase results in additional tax revenue of about $141,000 • Budgeted State aid based on the Governor’s FY 2018 proposal for municipal aid (nothing else to go on) • Legislature in the process of reviewing the Governor’s budget. Deadlines: April 27 th – Appropriations & April 28 th – Finance. Session ends June 7 th • However, budget does not include the proposed Town contribution to the State Teachers’ Retirement Fund of $1,157,222 (Potential Board of Education Expense) 6 6

TOWN N BU BUDG DGET ET HI HIGHL HLIGHT IGHTS • Have attempted to hold the line on budget growth while balancing the negative effects of State aid cuts • Proposed Town budget is $32,232,993, an overall increase of 2.67% over last year • General Government (Selectmen’s budget ) increased 4.66% over last year • Board of Education budget increased 2.47% • In an effort not to negatively impact our community, proposing both use of fund balance in the amount of $803,174 and a 1.25 mill increase 7 7

EXPENDITURE ENDITURE BU BUDG DGET 20 2016-17 17 20 2017-18 18 Inc ncreas rease/ e/ % Adopt dopted ed Propos oposed ed (D (Decrea ecrease) e) Cha hange nge Town wn G Govern ernme ment nt $ 7 $ 7,4 ,410,8 0,849 49 $ 7 $ 7,75 ,756, 6,42 421 $ 34 345, 5,572 72 4.66% 66% Board Boa d of Edu of Educa cati tion on 22, 22,014,8 4,859 59 22,558, 22, 558,627 543,7 543,768 68 2.4 .47% 7% Debt Debt S Ser ervic vice 1,720 ,720,333 ,333 1,667,9 ,667,945 45 (52,388) 2,388) (3.05% 3.05%) Ca Capit ital I l Impr provem ements ents 250, 250,000 000 250, 250,000 000 0 0.0% Tota tals ls $ 3 $ 31,396,04 ,396,041 1 $ 32,23 $ 32,232,993 ,993 $ 836, $ 836,952 52 2.67% 67% 8 8

WHER ERE E DO YOUR UR TAX DOLL LLARS ARS GO GO? Pr Propo posed sed Expe pend nditure iture Bud udget get $250, 0,000 000 1% 1% $7,756, 756,42 421 1 $1, 1,667,9 67,945 24% 5% Tow Town Gove n Governme nment nt Total al Bud udget get Education Education $32,2 2,232, 32,993 993 Debt Se Debt Service ce Capital Impro Capital Improvement vement $22, 2,558, 558,62 627 7 70% 70% 9 9

DE DEBT BT SE SERVI VICE CE Princi cipa pal $ 1, 1,30 305,000 5,000 Net et Intere erest st $ 362 62,945 ,945 Debt bt Issuanc ance Cost sts $ 0 FY20 2018 8 Debt t Service vice $ 1, 1,66 667,9 7,945 45 FY20 2017 7 Debt t Servi vice ce $ $ 1, 1,72 720,333 0,333 Decrease rease $ (52,3 ,388) 88) # Year Pri rincip ipal Interest erest Tot otal 1 2018 18 $1, 1,305 05,0 ,000 $362,945 $1, 1,667 67,9 ,945 2 2019 $1, 1,400 00,0 ,000 $316,4 ,421 $1, 1,716,42 6,421 3 2020 2020 $1, 1,380 80,00 000 $268,82 829 $1, 1,648, 48,829 29 4 2021 $1, 1,375, 5,000 00 $221, 1,671 $1, 1,596 96,67 671 5 2022 2022 $975,00 000 $18 185,58 588 $1, 1,160 60,58 588 10 10

CA CAPIT ITAL L PROJEC OJECTS FY FY2018 8 Gen ener eral Fund d Contri ribution bution* * $ $ 250,000 50,000 FY FY2017 7 Gen ener eral Fund d Contributi ibution on $ 250,000 50,000 Increa ease se $ 0 0  Purcha chases ses bei eing pr g propo posed sed by the e CIP in include de hea eavy and l d lig ight du duty y veh ehic icle les, s, in infrastruct tructure ure impr improvemen ements ts, , tec echnol hnology ogy up upda dates es an and d ong ngoin ing g lea ease e pa paymen ents. ts. * * Represents ts the general fund c d contrib ibutio tion to the capital ital equipme ment t fund a d and not d not the cost of the pro roposed sed capital ital items. ms. 11 11

REV EVENUE ENUE BU BUDG DGET ET FY FY 20 2016-17 17 FY 20 FY 2017-18 18 Increas crease/ e/ % Adop opted Pr Prop oposed ed (Decrea ease) e) Chang nge Proper operty ty Tax axes es $2 $20,26 264, 4,040 40 $2 $21,45 453,004 004 $1,188,9 88,964 64 5.87% 7% Sta tate/F e/Fed ederal Gran eral Grants ts 9, 9,565, 65,139 39 9,20 202,5 2,515 5 (362,62 2,624) (3.79 79%) %) Use se of F f Fund nd Ba Balanc lance 55 559,25 257 7 803, 3,174 4 243 43,917 43. 3.61% 1% Ot Other Fina er Financ ncin ing g Sour ources ces 1,00 007,60 605 774,30 300 (233, 3,305) 305) (23 23.15% 5%) Tota tal $3 $31,39 396,04 041 $3 $32,232, 232,993 93 $ 836, 6,952 952 2.67 67% 12

WHE HERE DO DO THE HE FU FUNDS DS COM OME FR FROM OM? $774, 4,300 300 Pr Propo posed sed Reven enue ue Sour urces ces $803, 3,174 2% 2% 2% 2% Prop Proper erty y Ta Taxes $9,202, 202,515 5 Stat St ate & e & Federal Aid Federal Aid 29% 29% Us Use e of of Fu Fund nd Ba Balanc ance Total al Revenue venue Other Other Fin inanci ncing ng Sources ources $32,2 2,232, 32,993 993 $21,453, 453,004 004 67% 67% 13 13

PROPER PERTY Y TAXES TO TOTAL AL BUDGE GET T $21,45 453,00 3,004 • Increase of $1,188,964 or 5.87% over last year’s budget • Proper perty ty Taxes es account nt for 67% of the FY 2018 R 18 Revenue nue in the budget • Based ed on pr n prior or collection ection hist stor ory y we have assume sumed a 98.5% tax x collection ection rate • Continue tinue to expec pect t modest est increases eases in delinq inque uent nt tax x revenue nue colle lections ctions 14 14

ST STATE E & FE FEDE DERAL AL AID TOTAL AL BUDGET GET $9,202,5 202,515 15 $4,511,832 832 Edu Educa cati tion on Sp Special Educa ecial Educati tion on $1,895, 1,895,056 056 $1, 1,59 594, 4,62 627 7 Peq Pequot uot PILOT PI OT $858,635 8,635 All All Other Other Grants ants $342,365 2,365 $- $- $1 $1,00 ,000,0 ,000 $2 $2,00 ,000,0 ,000 $3 $3,00 ,000,0 ,000 $4 $4,00 ,000,0 ,000 $5 $5,00 ,000,0 ,000 15 15

US USE E OF OF FUN FUND D BA BALANCE NCE  Fund d balance ance is th the cash th that t th the Town wn has accumulat umulated ed fro rom m prior or year r budg dgets ts when en reven enues es exceeded eded actu tual al expenditu nditure res. s. FY2018 18 Genera eral l Fund Contribu ntributi tion on $ 803,174 FY2017 General eral Fund Contributi tribution $ 559,257 Increase ease $ 243,917 Unr Unrest estrict ricted d fund balance nce $6,144,025 025 Less: ss: reser erves es $4,834,949 Available lable for use $1,309,076 16 16

OTHE HER R FI FINANCING ANCING SO SOUR URCES CES TOTAL AL BUDGET GET $774, 4,300 300 Charg Charges for es for $308,800 800 Services Se ices Tra Transfer nsfers-in in fr from om $200,000 000 Other ther Funds unds Miscel iscellaneous aneous $230,5 ,500 00 Inves nvestmen ment $35,000 00 Earnin Ea ings gs $ $- $ $50,0 ,000 $ $100,0 ,000 $ $150,0 ,000 $ $200,0 ,000 $ $250,0 ,000 $ $300,0 ,000 $ $350,0 ,000 17 17

SO SOME MERS RS HI HIST STORIC ORICAL AL MI MILL RATE TE 25.47 23.37 23.37 23.37 24.22 22 12 23.12 12 12 22.12 21. 1.91 22.11 21. 1.12 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 Since 2013 (5 years) will be only a 2.35 mill rate increase 18 18