town of lunenburg...•budget proposal provides for additional $221,669 in chapter 70 funds (3%...

Town of Lunenburg FY 2019 Budget, Town Manager Recommendation

February 15, 2018

Heather R. Lemieux, Town Manager

FY2019 Recommendation

• Disclaimers • Recommendation still contains a number of assumptions.

• Assumptions will firm up as we get closer to Town Meeting • State Aid and State Assessments (Governor’s Budget Proposal)

• New Growth: Assumes $375,000

• Insurance renewals: Received in March; +8% Health

• Sewer/PACC: Net zero effect on budget

• Monty Tech Assessment: Assumes +3.5%

• Snow and ice deficit for FY18: Ten year historical average is $362,530. The FY18 Appropriation is $275,720 leaving a variance of $86,810 based on the 10 year average. Last year the deficit was $166,000.

Preparing the FY2019 Recommendation

• Goal was to create a balanced budget that funds operating budgets at a reasonable level and addresses the town’s need for increased public safety services.

• Use of Free Cash not used on operating budget and per the Town’s Financial Policies: • Designates $100,000 towards OPEB liability costs (

FY 2019 Recommendation

• Funding to cover all contractual salary increases

• Budget Recommendation reflects level services with some exceptions

• Meets Town’s financial policies

• Balanced budget proposal is based upon use of recurring revenues for operating costs, meaning there is NO request for a draw on either Free Cash or the Stabilization Fund towards the operating budget

FY2019 Recommendation - Challenges

• Revenue:

• State Aid: Governor’s Proposal is only a .68% increase over FY18 State Aid.

• Expenditure:

• Health, Liability, WC, IOD Insurances are estimates

• Monty Tech Assessment forthcoming

• Budgets that have not been finalized are estimates (i.e. PACC) but do not affect the overall budget since they have independent funding sources

FY2019- Projected Revenues

• Property Tax $26,784,952

• State Aid $ 9,034,019

• Local Receipts $ 2,940,817

• Other Avail. Funds $ 2,720,648

• Total $41,480,436

FY2019- Revenue Estimates

$26,784,953 , 65%

$9,034,019 , 22%

$2,940,817 , 7%

$2,720,648 , 6%

Property Tax

State Aid

Local Receipts

Available Funds

FY2019 Revenue Estimates

Noteworthy Highlights:

Increase in State Aid significantly less than last year

Estimate for local receipts is conservative

FY2017 FY2018 FY19 TM

After Recap After Recap Recommendation Dollar Increase

Revenue Over PY

Property Tax* 24,770,959$ 25,848,475$ 26,784,953$ 936,478$

State Aid 7,998,947$ 8,972,793$ 9,034,019$ 61,226$

Local Receipts 2,852,226$ 2,867,168$ 2,940,817$ 73,649$

Available Funds** 1,790,591$ 2,240,771$ 2,720,648$ 479,877$

total: 37,412,723$ 39,929,207$ 41,480,437$ 1,551,230$

*Property Tax includes starting tax levy, 2 1/2%, New Growth, Excludable Debt

** Available funds will fluctuate mainly due to use of free cash.

FY 2019- Property Tax

• Property Tax – • Prior Year base ($23,087,668) plus 2 ½% increase ($577,192)

• Estimate for New Growth ($375,000)

• No New Overrides or Exclusions • Excluded Debt from previous projects for FY19 = $2,745,093

• Maximum allowable tax levy for FY2019=$26,784,953

FY2019- New Growth

Lunenburg Board of Assessors

Estimated New Growth Revenue - FY 2019

Prepared: January 30, 2018

Past Growth History

Fiscal Year RE PP Total

2018 385,692 95,804 481,496

2017 429,588 58,367 487,955

2016 320,250 40,606 360,856

2015 185,330 77,154 262,484

2014 259,025 38,546 297,571

Average 315,977 62,095 378,072

Estimate 325,000 50,000 375,000

FY2019- State Aid

• Governor’s Budget, House 1, was released on 01.24.18

• Budget Proposal provides for additional $221,669 in Chapter 70 funds (3% increase) and an additional $36,975 in Unrestricted General Government Aid (3.5% increase); the total estimate for FY19 =$9,034,019 an increase of .68% due to decreased amounts in other cherry sheet numbers such as veterans benefits, state owned land and smart growth school reimbursement.

• This budget recommendation includes the Governor’s State Aid proposal

• 40S Smart Growth included on both the Revenue and Expense Side; if not in final State Aid figure will remove on both Revenue and Expense side. Last year Local Aid 40S was $119,257; Governor’s FY19 proposal is $17,686

FY2019 - State Aid

FY UGGA % of Total All Other Cherry Sheet Chapter 70 % of Total Over PY

2010 $ 931,718 15.49% $ 555,416 $ 6,015,508 $ 4,528,374 75.28% $ (622,878)

2011 $ 894,449 14.95% $ 589,474 $ 5,982,319 $ 4,498,396 75.19% $ (33,189)

2012 $ 829,777 13.98% $ 584,068 $ 5,936,390 $ 4,522,545 76.18% $ (45,929)

2013 $ 894,449 13.31% $ 604,373 $ 6,718,759 $ 5,219,937 77.69% $ 782,369

2014 $ 894,449 13.05% $ 606,256 $ 6,855,401 $ 5,354,696 78.11% $ 136,642

2015 $ 915,592 12.73% $ 673,186 $ 7,194,650 $ 5,605,872 77.92% $ 339,249

2016 $ 940,983 12.52% $ 743,026 $ 7,518,492 $ 5,834,483 77.60% $ 323,842

2017 $ 1,016,777 12.71% $ 630,913 $ 7,998,947 $ 6,351,257 79.40% $ 480,455

2018 $ 1,056,431 11.77% $ 643,851 $ 8,972,793 $ 7,272,505 81.05% $ 973,846

2019 $ 1,093,406 12.10% $ 446,439 $ 9,034,019 $ 7,494,174 82.96% $ 61,226

FY2019- Local Receipts

• Estimated Local Receipts – increased $73,649, or 2.57% from FY18 to FY19 • Motor Vehicle Excise Tax, licenses, permits, fees, fines,

investment income

• Elastic Revenues- very dependent upon the economy

FY2019 –Local Receipts

• Local Receipts: Estimate is an overall increase of 2.57% over the previous fiscal year estimates.

FY2017 FY2018 FY2019 TM

After Recap Estimated Recommendation

Local Receipts

Motor Vehicle Excise 1,543,500$ 1,582,088$ 1,621,640$

Penalties & Interest on Taxes 179,520$ 183,110$ 190,000$

Payments in lieu of Taxes 1,668$ 1,701$ 1,735$

Fees 125,664$ 128,177$ 130,741$

Departmental Revenue- Schools 70,000$ 71,400$ 72,828$

Departmental Revenue-Cemeteries 4,080$ 4,162$ 4,245$

Other Departmental Revenue- Ambulance Fees 282,000$ 287,640$ 254,303$

Licenses & Permits 248,880$ 207,858$ 280,740$

Special Assessments 14,994$ 15,294$ 15,600$

Fines & Forfeits 35,700$ 36,414$ 37,142$

Investment Income 54,060$ 55,141$ 56,244$

Miscellaneous, Solar Net Metering Credits 141,000$ 140,000$ 138,000$

Miscellaneous, Local Option Meals 118,080$ 100,666$ 103,183$

Miscellaneous, Supplemental Tax 33,080$ 33,742$ 34,416$

Miscellaneous, RDS, Medicare Part D Reimbursement -$

Miscellaneous, Bond Premium -$

Miscellaneous, Medicaid Reimbursement -$

Miscellaneous, Supplemental State Aid -$

Miscellaneous Non- Recurring -$ -$

total: 2,852,226$ 2,867,168$ 2,940,817$

Dollar Increase Over Prior Year 14,942$ 73,649$

Percentage Increase Over Prior Year 0.52% 2.57%

FY2019- Available Funds

• Available Funds • MSBA Reimbursement: $534,198. Reimbursement and associated debt

payment will expire in 2023

• Water & Sewer Betterments

• Fully fund associated debt service & related costs

• Sewer Enterprise Fund to fund Indirect Costs

• Borrowing amount for new Ladder Truck

• Prior Year Unexpended Articles for Capital: $54,478

• Free Cash Available for appropriation used to offset Capital, OPEB, regular Stabilization Account and transfer to Special Purpose Stabilization Account

Expenditures

• Expenditures are a reflection of the cost of providing a level of services to residents of all ages in our community, to visitors traveling or doing business in Lunenburg, and maintaining or improving our assets.

• As a town, we provide services to students, we provide health and human services to seniors and veterans, recreational services, public safety to all

• The balance is to provide the best level of services given the available resources, maintain our assets, and put aside funding for anticipated capital and into our “rainy day fund”.

Expenditures

• Expenditures are divided into: • Departments

• Non-Appropriated Costs: Cherry Sheet Offset Charges, Allowance for Abatements, Tax Title, Retirement Assessment

• Sewer Enterprise Fund

• Solid Waste Disposal Enterprise Fund

• Other Warrant Articles with a Financial Impact including transfers into Stabilization, Special Purpose Stabilization, OPEB Trust Fund and Capital

Above Target Requests: TM Budget Recommendation:

General Govt: $16K more than target for add’l hrs for Asst Collector, increase in software maint. Costs, add’l elections in FY19 Police- $96k for 1 Patrol Officers & associated costs, add’l hrs for PSC Fire – $363k for 5 FT Firefighter/EMT’s & associated costs Dispatch- $42k for weekend coverage of Desk DPW- $37K for Mechanic’s Assistant Lunenburg Public Schools – Total request +629K over target to fund Superintendent/ School Committee Recommended Budget

General Govt: $16K Funds the above target requests. Police- $96k Funds the above target requests. Fire – $68k Funds 1 FT Firefighter/EMT & associated costs. Dispatch-$3K coverage for desk officer on holidays DPW- $37K for Mechanic’s Assistant (includes +$50K PMP) Health Insurance- $69K for add’l 3 positions Lunenburg Public Schools – Funds add’l 3% from FY18 appropriation

Expenditures- Utilities

• Utilities:

• Electricity/Heating Fuel: Level fund electricity and heating fuel budgets based on historical spending. Net metering credits have begun to appear on statements but remaining conservative until have a full year of data. Likely to significantly reduce this line item for FY20 budget.

• Fuel: Reduction in Vehicle Fuel of $10,000 based on historical expenditures and surpluses at the end of the year

• Internet: Reduction in IT budget of $5,000 securing better contract with Comcast

FY2019 Expenditures

FY2017 FY2018 FY2019 FY2019 TM Dollar Increase

After Recap After Recap Target Budget Recommendation Over PY

Expenditures:

General Fund Expenditures:

General Government $ 1,293,856 $ 1,336,339 $ 1,378,969 $ 1,395,671 $ 59,332

Central Purchasing $ 55,303 $ 55,303 $ 55,303 $ 55,303 $ -

Police $ 1,489,784 $ 1,633,882 $ 1,652,968 $ 1,747,289 $ 113,407

Fire $ 774,197 $ 870,622 $ 914,487 $ 983,119 $ 112,497

Radio Watch $ 261,440 $ 255,719 $ 273,246 $ 276,467 $ 20,748

Other Protection $ 213,210 $ 181,270 $ 188,383 $ 191,083 $ 9,813

Department of Public Works $ 1,688,445 $ 1,589,171 $ 1,642,384 $ 1,668,378 $ 79,207

Public Buildings & Facilities $ 610,978 $ 753,216 $ 630,676 $ 670,851 $ (82,365)

Solid Waste $ 174,150 $ 153,230 $ 156,360 $ 156,360 $ 3,130

Health & Sanitation $ 69,153 $ 70,867 $ 72,939 $ 73,839 $ 2,972

Council on Aging $ 113,819 $ 134,025 $ 136,274 $ 139,718 $ 5,693

Veterans $ 105,775 $ 105,775 $ 105,775 $ 105,775 $ -

Lunenburg Public Schools $ 18,454,700 $ 19,721,306 $ 20,207,796 $ 20,207,796 $ 486,490

Monty Tech Assessment $ 899,267 $ 877,527 $ 908,240 $ 908,240 $ 30,713

Library $ 371,773 $ 381,710 $ 395,108 $ 400,454 $ 18,744

Debt Service $ 4,858,015 $ 4,824,107 $ 4,681,722 $ 4,681,722 $ (142,385)

Unclassified $ 2,634,326 $ 2,911,296 $ 3,082,611 $ 3,151,885 $ 240,589

Retirement Assessment $ 1,051,795 $ 1,106,982 $ 1,221,814 $ 1,221,814 $ 114,832

$ -

sub-total: $ 35,119,987 $ 36,962,346 $ 37,705,055 $ 38,035,764 $ 1,073,418

FY2019 Expenditures-Non-Appropriated Expenditures



Court Judgments

Cherry Sheet Charges $ 1,133,807 $ 1,388,782 $ 1,155,687 $ 1,155,687 $ (233,095)

Cherry Sheet Offsets $ 283,043 $ 295,827 $ 268,008 $ 268,008 $ (27,819)

Overlay $ 140,935 $ 175,000 $ 175,000 $ 175,000 $ -

Tax Title $ 8,000 $ 8,000 $ 8,000 $ 10,500 $ 2,500

sub-total: $ 1,565,785 $ 1,867,609 $ 1,606,695 $ 1,609,195 $ (258,414)

FY2019 Expenditures- Capital, OPEB, Stabilization



Other Warrant Articles:

Capital Articles 619,475$ 658,317$ 650,000$ 1,455,214$ 796,897$

Other Capital -$

Police Detail Revolving -$

Prior Year Expenses 6,386$ 21,411$ -$ (21,411)$

OPEB Liability 100,000$ 100,000$ 100,000$ -$

Stabilization Fund 99,851$ 84,523$ 87,000$ 87,000$ 2,477$

Special Purpose Stabilization Fund 235,000$ 200,000$ 100,000$ (135,000)$

sub-total: 725,712$ 1,099,251$ 1,037,000$ 1,742,214$ 642,963$

FY2019 Capital CIP Cumulative

Project No. Item Cost

FD16-16 Ladder1, Replacement 19L1 (1988) 935,000$ 935,000$

PD17-11 Police Vehicles, 2 Marked Replacements 112,000$ 1,047,000$

PD17-11 Body Armor, Riot Control Protective Gear Upgrade 20,000$ 1,067,000$

PD16-09 Duty Gear, 29 Officers 11,600$ 1,078,600$

PD16-16 ATV-Two Person Vehicle 18,000$ 1,096,600$

PD18-01 Patrol Boat, Replacement 15,000$ 1,111,600$

LPS16-19 THES, Asbestos Abatement/Ceiling Replacement 130,000$ 1,241,600$

LPS16-17 Primary, Phone System Upgrade 30,000$ 1,271,600$

FM18-01 Trailer, behind TC Passios 28,000$ 1,299,600$

FM17-08 DPW Roof Replacement 65,000$ 1,364,600$

DPW17-05A Ford Pickup Utility Body w/ Plow 45,307$ 1,409,907$

DPW17-05B Ford Pickup Utility Body w/ Plow 45,307$ 1,455,214$

Total: 1,455,214$ 1,455,214$

Sources of Funding

Free Cash 222,477$

Raise & Appropriate 643,259$

Transfer Balance of Unexpended Capital 54,478$

Non-Exempt Borrowing for Ladder Truck 535,000$

Total: 1,455,214$

FY2019 Expenditures- Non-Discretionary- Debt Service

• Total appropriation = $4,681,722



Total: Debt Service $ 4,858,015 $ 4,824,108 $ 4,681,722 $ 4,681,722 $ (142,386)

$ -

offsets: $ -

Tax, Outside Prop 2 1/2 $ 2,716,158 $ 2,760,808 $ 2,745,093 $ 2,745,093 $ (15,715)

Sewer Betterment $ 848,585 $ 843,548 $ 843,959 $ 843,959 $ 411

Water Betterment $ 62,781 $ 62,781 $ 62,781 $ 62,781 $ -

Septic Receipts $ 10,868 $ 10,868 $ 10,868 $ 10,868 $ -

Bond Premium $ -

MSBA $ 534,198 $ 534,198 $ 534,198 $ 534,198 $ -

$ -

Net Impact: General Fund $ 685,425 $ 611,905 $ 484,823 $ 484,823 $ (127,082)

FY2019 Authorization to Borrow -Ladder Truck: 5 Year Note vs. 10 Year Note

Ladder Truck - Five One Year Notes

Proceeds Rate Annual Paydown Annual Interest Fiscal Year Total

1/1/2019 535,000.00$

1/1/2020 535,000.00$ 2.75% 107,000.00$ 14,712.50$ 121,712.50$

1/1/2021 428,000.00$ 3.50% 107,000.00$ 14,980.00$ 121,980.00$

1/1/2022 321,000.00$ 4.00% 107,000.00$ 12,840.00$ 119,840.00$

1/1/2023 214,000.00$ 4.00% 107,000.00$ 8,560.00$ 115,560.00$

1/1/2024 107,000.00$ 4.00% 107,000.00$ 4,280.00$ 111,280.00$

535,000.00$ 55,372.50$ 590,372.50$

Ladder Truck - Ten One Year Notes

Proceeds Rate Annual Paydown Annual Interest Fiscal Year Total

1/1/2019 535,000.00$

1/1/2020 535,000.00$ 2.75% 53,500.00$ 14,712.50$ 68,212.50$

1/1/2021 481,500.00$ 3.50% 53,500.00$ 16,852.50$ 70,352.50$

1/1/2022 428,000.00$ 4.00% 53,500.00$ 17,120.00$ 70,620.00$

1/1/2023 374,500.00$ 4.00% 53,500.00$ 14,980.00$ 68,480.00$

1/1/2024 321,000.00$ 4.00% 53,500.00$ 12,840.00$ 66,340.00$

1/1/2025 267,500.00$ 4.00% 53,500.00$ 10,700.00$ 64,200.00$

1/1/2026 214,000.00$ 4.00% 53,500.00$ 8,560.00$ 62,060.00$

1/1/2027 160,500.00$ 4.00% 53,500.00$ 6,420.00$ 59,920.00$

1/1/2028 107,000.00$ 4.00% 53,500.00$ 4,280.00$ 57,780.00$

1/1/2029 53,500.00$ 4.00% 53,500.00$ 2,140.00$ 55,640.00$

535,000.00$ 108,605.00$ 643,605.00$

Current Debt Schedule-without adding new debt

Town of Lunenburg

Debt

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Budget Budget Projected Projected Projected Projected Projected Projected

Total General Fund Regular Debt $ 752,397.10 $ 679,453.60 $ 554,091.11 $ 386,786.07 $ 352,723.58 $ 344,769.54 $ 292,731.98 $ 174,654.71

Total General Fund Excludable Debt $ 3,251,105.40 $ 3,296,637.16 $ 3,280,667.58 $ 3,235,320.36 $ 3,154,969.64 $ 3,133,948.15 $ 3,113,539.79 $ 2,108,028.76

Total General Fund Short-term Interest $ 5,574.68 $ 4,157.21 $ 2,716.67 $ - $ - $ - $ - $ -

Total Sewer Debt $ 832,229.55 $ 836,151.59 $ 837,492.69 $ 841,290.73 $ 830,187.83 $ 734,203.76 $ 713,596.33 $ 674,958.42

Grand Total Debt Service $ 4,841,306.73 $ 4,816,399.56 $ 4,674,968.05 $ 4,463,397.16 $ 4,337,881.05 $ 4,212,921.45 $ 4,119,868.10 $ 2,957,641.89

Premiums/MSBA Reimb Excludable Debt $ 536,130.64 $ 535,829.39 $ 535,574.41 $ 535,316.88 $ 535,051.19 $ 534,779.55 $ 534,501.26 $ 59,975.64

Net Excludable Debt - Tax Levy - DE1 $ 2,714,974.76 $ 2,760,807.77 $ 2,745,093.17 $ 2,700,003.48 $ 2,619,918.45 $ 2,599,168.60 $ 2,579,038.53 $ 2,048,053.12

Regular Debt Administrative Fees $ 351.91 $ 312.03 $ 287.65 $ 262.78 $ 237.40 $ 211.51 $ 185.10 $ 158.15

Sewer Debt Administrative Fees $ 16,504.24 $ 7,396.65 $ 6,466.45 $ 5,509.39 $ 4,544.14 $ 3,577.88 $ 2,804.97 $ 2,020.43

Transfer from Sewer Enterprise - Sewer Debt Service $ 848,733.79 $ 843,548.24 $ 843,959.14 $ 846,800.12 $ 834,731.97 $ 737,781.64 $ 716,401.30 $ 676,978.85

Transfer from Septic Receipts Reserved $ 10,868.00 $ 10,868.00 $ 10,868.00

Meadow Woods Water Betterment Revenue $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00

Net Regular Debt Service $ 684,674.69 $ 610,273.84 $ 483,446.43 $ 324,267.85 $ 290,179.98 $ 282,200.05 $ 230,136.08 $ 112,031.86

% of Net Regular Debt to Levy (cap of 4% per Policy) 3.10% 2.64% 2.02% 1.30% 1.13% 1.06% 0.83% 0.39%

Net Excludable Debt $ 2,714,974.76 $ 2,760,807.77 $ 2,745,093.17 $ 2,700,003.48 $ 2,619,918.45 $ 2,599,168.60 $ 2,579,038.53 $ 2,048,053.12

% of Excludable Debt to Total Levy (cap of 11% per Policy) 10.96% 10.68% 10.28% 9.80% 9.22% 8.86% 8.52% 6.73%

% of Aggregate Debt Service Costs to Total Levy (cap of 14% per Policy) 13.73% 13.04% 12.09% 10.97% 10.24% 9.82% 9.28% 7.10%

FY20-24 Projected Debt & Capacity

Town of Lunenburg

Debt

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Budget Budget Projected Projected Projected Projected Projected Projected

Total General Fund Regular Debt $ 752,397.10 $ 679,453.60 $ 554,091.11 $ 493,786.07 $ 459,723.58 $ 451,769.54 $ 399,731.98 $ 281,654.71

Total General Fund Excludable Debt $ 3,251,105.40 $ 3,296,637.16 $ 3,280,667.58 $ 3,235,320.36 $ 3,154,969.64 $ 3,133,948.15 $ 3,113,539.79 $ 2,108,028.76

Total General Fund Short-term Interest $ 5,574.68 $ 4,157.21 $ 2,716.67 $ 14,712.50 $ 14,980.00 $ 12,840.00 $ 8,560.00 $ 4,280.00

Total Sewer Debt $ 832,229.55 $ 836,151.59 $ 837,492.69 $ 841,290.73 $ 830,187.83 $ 734,203.76 $ 713,596.33 $ 674,958.42

Grand Total Debt Service $ 4,841,306.73 $ 4,816,399.56 $ 4,674,968.05 $ 4,585,109.66 $ 4,459,861.05 $ 4,332,761.45 $ 4,235,428.10 $ 3,068,921.89

Premiums/MSBA Reimb Excludable Debt $ 536,130.64 $ 535,829.39 $ 535,574.41 $ 535,316.88 $ 535,051.19 $ 534,779.55 $ 534,501.26 $ 59,975.64

Net Excludable Debt - Tax Levy - DE1 $ 2,714,974.76 $ 2,760,807.77 $ 2,745,093.17 $ 2,700,003.48 $ 2,619,918.45 $ 2,599,168.60 $ 2,579,038.53 $ 2,048,053.12

Regular Debt Administrative Fees $ 351.91 $ 312.03 $ 287.65 $ 262.78 $ 237.40 $ 211.51 $ 185.10 $ 158.15

Sewer Debt Administrative Fees $ 16,504.24 $ 7,396.65 $ 6,466.45 $ 5,509.39 $ 4,544.14 $ 3,577.88 $ 2,804.97 $ 2,020.43

Transfer from Sewer Enterprise - Sewer Debt Service $ 848,733.79 $ 843,548.24 $ 843,959.14 $ 846,800.12 $ 834,731.97 $ 737,781.64 $ 716,401.30 $ 676,978.85

Transfer from Septic Receipts Reserved $ 10,868.00 $ 10,868.00 $ 10,868.00

Meadow Woods Water Betterment Revenue $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00 $ 62,781.00

Net Regular Debt Service $ 684,674.69 $ 610,273.84 $ 483,446.43 $ 445,980.35 $ 412,159.98 $ 402,040.05 $ 345,696.08 $ 223,311.86

% of Net Regular Debt to Levy (cap of 4% per Policy) 3.10% 2.64% 2.02% 1.79% 1.60% 1.50% 1.25% 0.79%

Net Excludable Debt $ 2,714,974.76 $ 2,760,807.77 $ 2,745,093.17 $ 2,700,003.48 $ 2,619,918.45 $ 2,599,168.60 $ 2,579,038.53 $ 2,048,053.12

% of Excludable Debt to Total Levy (cap of 11% per Policy) 10.96% 10.68% 10.28% 9.80% 9.22% 8.86% 8.52% 6.73%

% of Aggregate Debt Service Costs to Total Levy (cap of 14% per Policy) 13.73% 13.04% 12.09% 11.41% 10.67% 10.23% 9.66% 7.46%

Regular Borrowing Capacity @ 4% cap $ 994,559.28 $ 1,031,423.28 $ 1,069,208.88 $ 1,107,939.12 $ 1,135,637.60

Excess Capacity for Regular Borrowing $ 548,578.93 $ 619,263.30 $ 667,168.83 $ 762,243.04 $ 912,325.74

Excludable Debt Capacity @ 11% cap $ 3,032,038.40 $ 3,124,605.05 $ 3,226,232.97 $ 3,330,526.82 $ 3,348,289.24

Excess Capacity for Excludable Debt $ 332,034.92 $ 504,686.60 $ 627,064.37 $ 751,488.29 $ 1,300,236.12

Aggregate Debt Service @14% cap $ 3,858,957.97 $ 3,976,770.06 $ 4,106,114.68 $ 4,238,852.31 $ 4,261,459.04

Excess Capacity for Aggregate Debt $ (167,639.72) $ (179,258.27) $ (189,327.16) $ (199,613.62) $ (222,467.81)

FY2019 Expenditures, General Government Unclassified

• Insurance Estimates

• Liability, Police/ Fire IOD and Worker’s Compensation estimated at 7% over FY18 actuals

• Health Insurance Renewal estimate is 8% increase:

• 38% of Health Insurance budget is active town employees; 62% is retiree health insurance for both town and school

• Retirees renewal is on a calendar year basis and is based on a 8% increase for MedEx 2, Managed Blue and Medicare.

• Expired Public Employee Committee Agreement

• New Agreement should examine plan design change to reduce current and retiree health insurance.

• Expectation that rates will be closer to last year’s rate increases (5.63%)

DISCLAIMER: RATES WILL BE RECEIVCED MID-MARCH/EARLY APRIL

FY2019 Expenditures, Worcester County Retirement Assessment

Summary of Member Data Total

Active Members 158.19

Average Age 48.50

Average Service 9.40

Valuation Salary 5,181,620.00

Average Salary $32,589.00

Retired Members & Beneficiaries 83.00

Average Age 73.70

Total Annual Pension 1,508,451.00

Average Annual Pension $18,174.00

Disabled Members - Accidental 4.00

Average Age 63.10

Total Annual Pension 120,014.00


Disabled Members- Ordinary 1.00

Average Age 50.70

Total Annual Pension 6,067.00


Inactive Members 47.00

Annuity Savings Fund $640,571.00

FY19 Expenditures, Worcester County Retirement Assessment

Unfunded Actuarial Accrued Liability as of January 1, 2016

Summary of Member Data Total

Actuarial Accrued Liability

Active Members $ 13,807,923

Retired Members & Beneficiaries $ 15,057,994

Disabled Members, Accidental $ 1,350,604

Disabled Members, Ordinary $ 105,652

Inactive Members $ 640,571

total AAL= $ 30,962,744

Unfunded Actuarial Accrued Liability (UAAL)

Actuarial Accrued Liability $ 30,962,744

Actuarial Value of Assets $ 13,205,905

Unfunded Actuarial Accrued Liability $ 17,756,839

FY2017 Assessment

Employer Normal Cost (Benefit - Employee Contrib + Admin Costs) $ 443,977

Payment on UAL $ 800,634

Payment on 2002 ERI

Payment on 2003 ERI

Payment on 2010 ERI

Total Assessment: $ 1,244,611

early payment discount $ 22,797

FY2019 Expenditures- Less Discretionary & Discretionary

The FY 2019 Budget Recommendation reflects requests to meet the service needs for various departments:

• Includes One Additional Police Officer and One Additional Firefighter/EMT-I and all associated costs

• Includes additional hours for Public Safety Coordinator and holiday coverage for the Desk Officer

• Includes an Assistant Town Mechanic for the DPW

• Includes additional hours for Assistant Collector that reinstates previously cut hours

• Includes additional $50K for Pavement Management

Departments will provide an in-depth review of above level service needs versus Level Service Budget during individual presentations

Education

• Lunenburg Public Schools

• Budget Recommendation is a 3% increase. This would be an increase of $588,061, excluding 40S Smart Growth funding

• 40S Smart Growth for Curriculum Adoption (separate from curriculum adoption within the School operating budget)

• Montachusett Regional High School: 3.5% increase

Five Year Tax Rate Impact

Year: 1 2 3 4 5

Fiscal Year: 2017 2018 2019 2020 2021 2022

Total Assessed value 1,239,725,670 1,312,058,224 1,338,299,388 1,365,065,376 1,392,366,684 1,420,214,017

% change 2.0% 2.0% 2.0% 2.0% 2.0%

Single Family Average Assessed Value 267,155 272,498 277,948 283,507 289,177 294,961

% change 2.0% 2.0% 2.0% 2.0% 2.0%

Levy ceiling 30,993,142 32,801,456 33,457,485 34,126,634 34,809,167 35,505,350

Levy Limit to Levy Ceiling Ratio 0.70 0.69 0.71 0.72 0.73 0.75

Levy Limit (w/o debt exclusions) 2.5% 21,565,200 22,606,172 23,664,860 24,640,856 25,564,378 26,510,987

New Growth 489,602 481,496 375,000 300,000 300,000 300,000

New Levy Limit 22,054,802 23,087,668 24,039,860 24,940,856 25,864,378 26,810,987

Levy as percent of Levy Limit 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Add Override / (Underride as negative) 0 0 0 0 0 0

Tax rate impact $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Levy (taxation) 22,054,802 23,087,668 24,039,860 24,940,856 25,864,378 26,810,987

Base tax rate - w/o debt exclusions 17.79 17.60 17.96 18.27 18.58 18.88

Annual Tax Rate Change -w/o debt exclusions $0.20 ($0.19) $0.37 $0.31 $0.31 $0.30

Add Debt Exclusion 2,716,158 2,760,808 2,745,093 2,700,003 2,619,918 2,599,169

Tax Levy 24,770,960 25,848,476 26,784,953 27,640,860 28,484,296 29,410,156

Tax rate impact $2.19 $2.10 $2.05 $1.98 $1.88 $1.83

Adjusted tax rate $19.98 $19.70 $20.01 $20.25 $20.46 $20.71

Annual Tax Rate Change ($0.28) $0.31 $0.23 $0.21 $0.25

Revenues

Estimated Annual Tax Revenue Increase 1,032,866 952,192 900,996 923,521 946,609

FY2019 Expenditures- Conclusions • Fully fund all contractual obligations and increased costs for non-

personnel related expenditures

• Balanced based upon use of recurring revenues for operating costs; no draw on Stabilization Fund or Free Cash for operating expenses

• Maintaining Level Services (at FY19 Level) with 3 additional town employees

• Recommended budget does not fully meet service needs as requested by Department Heads

• Budget leaves a surplus of free cash in order to maintain healthy free cash level for FY20 capital, stabilization, and OPEB.

• Recommendation sets aside $93,000 to address unknown Snow & Ice Deficit

• Includes Governor’s Budget Proposal for State Aid- figures subject to change.

Conclusion- Next Steps

• Finance Committee will begin a detailed review of the FY19 Budget- Feb 22nd

• House Ways & Means Budget, end of April

• Senate Budget, end of May

• Town Meeting: May 5

• Town Election: May 19

• Conference Committee by June 30th

• State Aid finalized by July

Proposed FinCom Schedule Thursday, February 22, 2018

7:00 Council on Aging

7:30 Library

8:00 Land Use

Thursday, March 1, 2018

7:00 Fire

8:00 Police


7:00 Monty Tech

8:00 Sewer


7:00 DPW

8:00 Lunenburg Public Schools


7:00 Public Access Committee

7:30 Administration, Unclassified, Debt Service

8:00 Other Monied Articles


7:00 FY2019 Budget Public Hearing and Vote on Recommendations

town of lunenburg...•budget proposal provides for additional $221,669 in chapter 70 funds (3%...

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