2007 Budget Headlines•Two Full Time positions reduced to Part Time
•One Part time position eliminated
•Effective collective bargaining negotiations – Total Salaries increase less than 2%
•Effective Health Insurance negotiations along with negotiated plan design changes yield increase well below trends (4.9%)
•State Aid increases for the first time since 2004. The modest $84,686 increase is offset by approximately $60,000 the Town will pay due to the State imposed 7% sales tax on parking revenues.
•Average assessed home in Westfield in 2007 equals $181,500. Municipal budget represents an increase of $9.91/month on average assessed home.
2007 Budget Challenges
•Additional Pension Contributions = +$556,980 (62.8%)
•Additional Assessment from RVSA = +$221,300 (11.1%)
•Increases in Fuel and Utility Costs = +$45,000 (7.2%)
•Increase in Group Health Insurance = +$175,000 (4.9%)
•Salary Increases = +$313,714 (1.9%)
•Public Library Increase = +$258,842 (12.4%)
•Debt Service Increase = +$191,600 (14.3%)
•Animal Control Services = +$25,000 (71.4%)
•Leaf, Brush, Grass & Tree Service Costs = +106,000 (50.2%)
•Reserve for Uncollected Taxes = +$50,000 (2.8%)
2006 Total Tax Collections $112,634,071.23
County Taxes19.89%
$22,404,101.84
Town16.88%
$19,019,139.61
Board of Education62.36%
$70,220,689.00
County Open Space Tax.87%
$990,140.78
2007 Appropriation Breakdown2007 Municipal Budget = $36,020,729
Salary & Wages 45.8%
$16,489,515
Capital Improvement Fund 0.4%
$145,000
Statutory/Required35.4%
$12,756,542
Deferred Charges0.3%
$120,000
Reserve for Uncollected Taxes5.1%
$1,840,000
Debt Service4.3%
$1,527,500
Operating Expenses8.7%
$3,142,172
2007 Appropriations
Statutory/Required Expenditures
PERS + $113,000 (93.5%)
PFRS + $436,300 (57%)
Library + $258,842 (12.4%)
RVSA + $221,300 (11.1%)
Group Insurance + $175,000 (4.9%)
“Budget Busters”
Did You Know…
The Municipal Budget includes appropriations for:
•Street Lighting $295,000
•Public Fire Hydrants $480,600
•Senior Transportation Services $102,270
•School Crossing Guards $448,000
•Reserve for Uncollected Taxes $1,840,000
2007 Revenue Breakdown
Revenue Sources
- Property Taxes
- State Aid
- Miscellaneous Revenue
- Grants (offset by appropriations)
- Fund Balance
2007 Revenue Breakdown2007 Total Revenues = $36,020,729
Local Property Taxes56%
$20,181,953
Chapter 159/Grants.3%
$116,204
Fund Balance11%
$4,000,000
Misc. Revenue17%
$6,177,982
State Aid13%
$4,569,590
Delinquent Taxes2.7%
$975,000
Did You Know…
Anticipated Revenue Sources include:
•Municipal Court Fines and Fees $590,000
•Parking Permits, Meters & Pay Stations $1,700,000
•Building Department Fees $950,000
•Interest on Income & Investments $680,000
• State Aid $4,569,589
• Delinquent Taxes $975,000
•Fund Balance $4,000,000
Tax Calculation Formula
Total Appropriations $36,020,729
minus
Anticipated Revenues $15,838,776
equals
Local Purpose Tax $20,181,953
divided by
Total Assessed Value $1,864,139,453
equals
Local Tax Rate 1.083
per $100 assessed value
Tax Cost Comparison
2006 Average Assessed Home = $179,800
2007 Average Assessed Home = $181,500
2006 2007* Inc.
County Tax $2,271 $2,409 + $138
School Tax $6,820 $7,120 + $300Local Tax $1,847 $1,966 + $119
Total Tax $10,938 $11,495 + $557 (5.1%)
* 2007 Tax Costs Estimated
Continued Examination …
•Capital Improvement Plan
•Management of Debt Service
•Strategies to manage RVSA assessments
•Group Health Insurance premiums
•Contract Negotiations
•Shared Services
•Revenue Sources
Increases for 2008 Budget
•Additional 20% increase in Pension Contributions (PFRS 100%, PERS 80%)
•Additional Assessment from RVSA
•Increases in Fuel and Energy Costs
•Group Health & Casualty Insurance
•Union Contracts
•Continuation of Services (Leaf Collection, Snow Removal, Street Lighting, Recycling, Police & Fire Services, Conservation Center,
Infrastructure Improvements, etc…)
2007 Budget Challenges Met
•Health Insurance Costs Reduced by Effective Contract Negotiations
•Staffing Levels decreased where possible. 2 F/T positions reduced to 2 P/T positions and 1 P/T position eliminated
•Effective management of revenue sources to maintain and increase income to reduce tax burden
•Comprehensive examination of total budget producing real savings in all departments