town of lunenburg preliminary annual budget –fy2009

Town of LunenburgPreliminary Annual Budget –FY2009

FY2009 Recommendation

Acknowledgements Generally these are made at the end of

the presentation, however, these are too important not to mention up front.

I wish to thank each and every department head for their cooperation and willingness to work with me throughout this budget process.

FY2009 Recommendation Disclaimers

At this early stage in the process, the document is only “good” the day it is printed.

Use a number of assumptions early on, which firm up as we get closer to Town Meeting

My believe is that I have been conservative enough in this proposal to be able to accommodate any changes.

Changes to date have all been positive

FY2009 Recommendation

Balanced, providing a level of service which is comparable to the level of service currently provided.

Higher, more comprehensive level of service in Technology

Higher, more comprehensive level of service in Education

FY2009 Recommendation Funding to cover all contractual salary

increases Funding to cover all salary increases

due SAP employees 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

Non-recurring revenues are set aside for one-time, capital purchases

FY2009- Revenue Estimates

Sources of Revenue Property Tax State Aid/ Cherry Sheet Local Receipts Available Funds


FY2009 Projected Revenues

State Aid24%

Local Receipts9%

Available Funds7%

Property Tax60%

Property Tax State Aid Local Receipts Available Funds

FY2009- Revenue Estimates Property Tax

Prior Year base plus 2 ½% increase Estimate for New Growth Overrides & Exclusions- capital, debt

Estimate for New Growth = $200K State Law requires you to assume 100%

collection rate Estimate for FY2009 = $16,881,680


FY2005 FY2006 FY2007 FY2008 FY2009

Actual Actual Actual Appropriated Budget

Property TaxPrior Year Levy Limit 14,138,629$ 14,787,169$ 15,368,583$

2 1/ 2% Increase 353,466$ 369,679$ 384,215$

New Growth 295,074$ 211,735$ 200,000$

Debt Exclusions 814,209$ 808,948$ 928,882$

total: 14,675,721$ 15,291,369$ 15,601,378$ 16,177,531$ 16,881,680$


New Growth Revenue FY2000 - 2009

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

FY2009- Revenue Estimates State Aid/ Cherry Sheet

Education Aid Chapter 70 Charter School Assessment Reimbursement

General Government Aid Lottery Reimbursements for Quinn Bill & Property Tax

Exemptions Library State Owned Land (PILOT)

FY2009- Revenue Estimates State Aid

Assume that State Aid will come in at the level included in the Governor’s Budget- House 1

House 1 includes a $223M increase in Ch. 70, which results in an increase of $306K, or about 8% for Lunenburg

No secret that the Governor used Gaming Proceeds to cover the Lottery Gap (about 14%)

Both House & Senate are on record saying that they will level fund lottery aid (at $935M) through use of Reserves, etc.

From the Massachusetts Municipal Association (MMA)

Legislature begins budget deliberations

Thursday, February 21, 2008

With cities and towns and state government facing substantial structural budget gaps for next year, the Legislature has launched its fiscal 2009 budget deliberations, the next step in the budget process that began when Gov. Deval Patrick filed his $28 billion spending plan on Jan. 23.

In testimony delivered to members of the Legislature’s Ways and Means committees on Feb. 19, the MMA urged the highest possible investment in local aid and expressed support for the framework of the upcoming state budget bill outlined by House Speaker Salvatore DiMasi.

DiMasi announced on Feb. 12 that the House plan for fiscal 2009 would fully fund the $935 million Lottery aid account and the scheduled $223 million increase in Chapter 70 education aid, the overall levels recommended by Gov. Patrick. DiMasi added that the House budget would fund local aid programs without relying on separate legislation or revenue sources.

The MMA called on the House and Senate to reach pre-budget agreement on minimum amounts for the main local aid accounts and to pass local aid resolutions by March 1 to provide cities and towns with some measure of certainty as municipal budgets are being prepared for approval locally.

(Last year the Resolution wasn’t reached until early April, which was still far earlier than in prior years)

FY2009- Revenue Estimates State Aid

FY2005 FY2006 FY2007 FY2008 FY2009


State AidChapter 70 3,625,757$ 3,708,907$ 3,921,700$ 4,314,259$ 4,620,790$

Kindergarten Grant -$ 37,300$

Charter Tuition Reimbursements 131,241$ 26,048$ 80,909$ 22,074$ 58,460$

Charter School Capital Facility Reimb 36,358$ 30,511$

School Lunch 8,114$ 8,256$ 7,213$ 9,171$ 9,175$

School Choice Receiving Tuition 374,841$ 395,193$ 459,930$ 462,811$ 420,948$

Lottery 941,409$ 1,076,641$ 1,295,240$ 1,316,140$ 1,316,140$

Police Career Incentive (Quinn Bill) 47,791$ 50,189$ 57,045$ 60,063$ 64,065$

Veteran's Benefits -$ -$ -$

Veterans Exemption 11,413$ 11,163$ 11,188$ 26,163$ 27,025$

Elderly Exemption 20,080$ 20,080$ 26,104$ 24,598$ 28,614$

State Owned Land 23,542$ 29,980$ 39,890$ 44,567$ 47,823$

Libraries 12,620$ 13,562$ 14,075$ 16,326$ 16,326$

total: 5,233,166$ 5,370,530$ 5,913,294$ 6,296,172$ 6,646,666$

FY2009- Revenue Estimates Local Receipts

Motor Vehicle Excise Tax, licenses, permits, fees, fines, investment income

Elastic Revenues- very dependant upon the economy

MVX is the largest component; first indication of what is happening is through Commitment #1, issued in February

Commitment was flat (good news!)


Ambulance Receipts Building Permit Revenue Investment Income

New for FY2009- Building Rental Income of $50K

Overall Projection is a modest increase of 1.87%


FY2005 FY2006 FY2007 FY2008 FY2009


Local ReceiptsExcise 1,270,544$ 1,210,664$ $1,332,981 1,335,000$ 1,330,000$

New Construction 55,375$ 32,483$ $6,044 -$ -$

Interest & Demands 50,045$ 53,054$ $69,528 65,000$ 65,000$

Penalties 49,348$ 44,854$ $14,854 15,000$ 15,000$

PILOT 3,205$ 1,600$ $1,593 1,600$ 1,600$

Fees 106,447$ 137,466$ $147,340 145,000$ 145,000$

Building Rental (Old Primary) -$ -$ $0 -$ 50,000$

Departmental Revenue 64,703$ 105,893$ $0 90,000$ 90,000$

Licenses & Permits 216,302$ 244,593$ $188,812 185,000$ 185,000$

Court Fines 255,343$ 279,397$ $0 300,000$ 300,000$

Fines 575$ 3,990$ $5,345 5,000$ 5,000$

Charges 26,978$ 491,815$ $13,007 13,000$ 13,000$

Interest Income 124,119$ 117,620$ $0 250,000$ 250,000$

Bond Premium 18,971$

total: 2,241,956$ 2,723,428$ 1,779,504$ 2,404,600$ 2,449,600$

FY2009- Revenue Estimates Available Funds

Catch All Category Some one-time revenues, causing a wide

variance from year to year

SBA Reimbursement - $586,561 Lower than prior years due to audit completion

Sewer Betterments Fully fund associated debt service & related costs

Sewer Enterprise Fund to fund Indirect Costs

FY2009- Revenue Estimates Available Funds

FY2005 FY2006 FY2007 FY2008 FY2009


Available FundsOverlay Surplus 25,025$ -$ -$

Free Cash 1,108,378$ 648,875$ 282,750$

Unexpended Articles 35,542$ 22,358$ -$

Borrowing 491,000$ 835,000$ -$

Stabilization Fund 32,079$ 250,000$ -$

SBA Reimbursement 804,425$ 816,820$ 586,561$

Sewer Enterprise 20,000$ -$ 35,000$

Sewer Betterments 205,872$ 547,332$ 512,688$ 680,000$ 1,052,616$

Medicare Part D Reimbursement -$ -$ 15,000$

Septic Loan Revenue 10,872$ -$ 16,090$

Prior Year Capital (Unused) 25,000$

Bond Premium 20,668$ -$ -$

total: 205,872$ 547,332$ 3,060,677$ 3,253,053$ 2,013,017$

FY2009- Revenue Estimates Summary

FY2005 FY2006 FY2007 FY2008 FY2009Actual Actual Actual Appropriated Budget Difference

Revenue

Property Tax 14,675,721$ 15,291,369$ 15,601,378$ 16,177,531$ 16,881,680$ 704,149$ State Aid 5,233,166$ 5,370,530$ 5,913,294$ 6,296,172$ 6,646,666$ 350,494$ Local Receipts 2,241,956$ 2,723,428$ 1,779,504$ 2,404,600$ 2,449,600$ 45,000$ Available Funds 205,872$ 547,332$ 3,060,677$ 3,253,053$ 2,013,017$ (1,240,036)$

total: 22,356,715$ 23,932,659$ 26,354,853$ 28,131,356$ 27,990,963$ (140,393)$

FY2009 Expenditures

Expenditures are divided into: Functional Categories (Departments) Non-Appropriated Costs Sewer Enterprise Fund (self supporting) Other Warrant Articles with a Financial

Impact

FY2009 Expenditures

Expended Expended Expended Appropriated CAFOFY2005 FY2006 FY2007 FY2008 FY2009

Expenditures:

General Fund Expenditures:sub-total: 20,050,650$ 21,265,518$ 23,960,665$ 25,192,916$ 26,298,091$

Non-Appropriated Expenditures:sub-total: 1,263,769$ 1,352,496$ 1,325,161$ 1,271,646$ 1,348,907$

TOTAL BUDGET: 21,314,419$ 22,618,014$ 25,285,826$ 26,464,562$ 27,646,998$

Other Warrant Articles:sub-total: -$ -$ -$ 1,725,816$ 343,965$

total: 21,314,419$ 22,618,014$ 25,285,826$ 28,190,378$ 27,990,963$

FY2009 Expenditures General Government

Administrative, Financial & Planning Offices of the Town

Total spending is recommended at $1,188,851, which is a decrease of $51,478 or 4.15% over FY2008

Elimination of extra clerical hours for special projects in the offices of CAFO, BOS, Assessor, Tax Collector & Town Clerk

FY2009 Expenditures General Government

Cuts were necessary to make funding of updated elements of the Master Plan and an a new PT Technology Assistant position possible

Additional funds were set aside to increase the current support services contract for Police related software from business hours to 24/7

FY2009 Expenditures General

Government

FY2009 Expenditures

Central Purchasing is the cost center used to track costs that are not easily allocated among departments, such as utility costs and equipment and maintenance costs, generally for Town Hall Offices.

Total spending is recommended at $47,200, a reduction of $17,000

FY2009 Expenditures

Central Purchasing Reduction comes in 2 areas:

Office Equipment Maintenance- recognizing that we have instituted a regular replacement plan for computers, printers & copiers

Telephone Charges- to come in line with historical spending levels

FY2009 Expenditures Central Purchasing

The Public Buildings Department was created in FY2006. Prior spending includes costs now borne by that department.

FY2009 Expenditures Police

Staffing Levels Chief of Police 1 Lieutenant 3 Sergeants 1 Detective 6 Patrol Officers 1 Traffic Officer 1 Administrative Assistant 14 Reserve Officers

FY2009 Expenditures Police

Shifts are staffed with either 1 Sergeant and 1 Patrol Officer or 2 Patrol Officers

Traffic Officer works a split shift, 2 days & 2 evenings

Department maintains a 6 cell lock up detainment area

Department Request included 2 new patrol officers

Department of JusticeBureau of Justice Statistics

2006 Police Staffing across the U.S.Ratio of Full-time Police Officers per 1,000 residents

Residents Officers per 1,0001,000 to 2,499 2.62,500 to 9,999 2.210,000 to 24,999 2.025,000 to 49,999 1.850,000 to 99,999 1.8250,000 and up 2.5

*Lunenburg 10,024 1.3

•Ratio of Police Officers per 1,000 residents in Massachusetts

Average 2.1 officers per 1,000 residents

Larger cities averaging 3.0 officers per 1,000 residents

Smaller communities averaging 1.8 officers per 1,000 residents

•Number of Lunenburg PD Full-time officers including the Chief =13

1.3 officers per 1,000

Police Incidents by Year- 77% Increase in 7 Years

13,276

125751239112572

1143811080

8583

7465

0

2000

4000

6000

8000

10000

12000

14000

2000 2001 2002 2003 2004 2005 2006 2007

Police Arrests/ Bookings by year

387

216

164

220

175

116

173196

135

161153

164

0

50

100

150

200

250

300

350

400

450

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

FY2009 Expenditures- Police Total recommended spending is

$1,288,126, which is an increase of $39,830 or 3.19%

Includes modest increases for firearm supplies and badges

Includes a $15,900 increase for Lock-Up due to increasing number of arrests

Does not include funding for additional officers

FY2009 Expenditures- Police

FY2009 Expenditures

Fire Staffing Levels

Fire Chief 1 Administrative/EMT-P/Dispatcher 3 Career Firefighter/EMTs 36 Call Firefighters (24 EMTs)

FY2009 Expenditures

Fire Apparatus

4 Engines 1 Ladder 1 Brush Truck 2 Rescue/Ambulances 2 Support vehicles

FY2009 Expenditures- Fire

FY2009 Expenditures- Fire Responses

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Inci

dent

s Fire

Medical

Inspections

Total

FY2009 Expenditures- Fire Total recommended spending is $716,070,

which represents an increase of $35,567, or 5.35%

Includes funding to increase the on call stipend from $25 to $50 per shift in order to eliminate the hard call system for many shifts

$2,500 increase in EMT supplies to allow minor overstocking of items needed in the event of a major emergency

FY2009 Expenditures- Fire

FY2009 Expenditures- Other Protection Includes funding for Building, Gas, Plumbing

& Wiring Inspection; Inspector of Weights & Measures, Municipal Hearings Officer & Animal Control Officer

Total recommended spending is $184,792, representing an increase of $4,574 or 2.54%

Bulk of the increase is to fund additional hours for the Assistant Building Inspector to cover in the absence of the Building Inspector & to fund an increase in the Inspector’s vehicle allowance consistent with his use.

FY2009 Expenditures- Other Protection

FY2009 Expenditures- DPW The Department of Public Works

includes: Highway Vehicle Maintenance Traffic & Signs Public Buildings & Grounds Cemetery Parks

FY2009 Expenditures- DPW

Major duties: Maintenance of 200 lane miles of paved

roadways, including repair, line painting, traffic signs, street sweeping, snow removal, etc.

Maintenance of 11 public buildings and all non-school athletic fields & playgrounds

Maintenance of all town-owned vehicles

FY2009 Expenditures- DPW Total spending is recommended at

$1,315,699, which represents an increase of $65,198, or 5.21% over the current appropriation.

Increase Snow & Ice Budget by $20K

Increase Vehicle Maintenance by $42K, most of which for fuel for Public Safety vehicles

FY2009 Expenditures- DPW

FY2009 Expenditures-Solid Waste The Town operates a PAYT Program,

including recycling, through a private hauler

3,200 of 3,800 household participate Program is funded through bag sales

& a General Fund Appropriation Recommended appropriation $80K Bag fees will be raised $0.50/ bag

FY2009 Expenditures-Solid Waste

FY2009 Expenditures- Health & Sanitation The mission of the Board of Health is to

develop and maintain innovative programs to safeguard and improve the general health of the citizens of the Town.

Departmental Staff include: 1 Administrative Assistant Board of Health Agent (by contract) Nurse (by contract)

FY2009 Expenditures- Health & Sanitation Total recommending spending is $67,144,

which is an increase of $3,564 or 5.61%.

FY2009 Expenditures- Council on Aging Departmental Goals include:

Advocacy for the elder population Increased community visibility Preparing for changing needs of elders Collaborating with other Town

departments to groups to develop programs beneficial to elders

Promoting Inter-generational opportunities through the Lunenburg Public Schools

FY2009 Expenditures- Council on Aging

The recommended level of spending is $94,782, which is an increase of $7,144 or 8.15% over current spending levels

The bulk of the increase is to provide additional hours for client outreach services.

FY2009 Expenditures- Council on Aging

FY2009 Expenditures-Veterans Administration The mission of the Veterans

Administration Office is to provide financial and medical aid assistance to veterans and/ or dependants in need.

The state reimburses 75% of authorized assistance

The office also provides assistance in coordination of other types of aid

The FY2009 recommendation is for level funding of $5,443

FY2009 Expenditures – Lunenburg Public Schools FY2009 Recommendation is for

$14,749,818 (typo in narrative) Represents an increase of

$548,178 or 3.86% Recommendation is $75,000 less

than the Department Request Superintendent will provide an

overview of her budget request

FY2009 Expenditures- Montachusett Regional FY2009 Regional Assessment was level

funded at the FY2008 amount - $640,000

Since the issuance of this Preliminary Budget Recommendation, the final assessment was set at $565,210, which is $74,790 less than the recommendation

FY2009 Expenditures- Library The department’s mission is to continue to provide

access to information people can use in their daily lives.

Hours Open and Full Time Employee Equivalent

Town 2006 Pop Avg. Weekly Hours Open

Full Time Employee Equivalent

Total Hours Open/ FTE

Weekly Visits/ FTE

Circulation/ FTE

Lunenburg 10,010 44.0 5.1* 8.6 388.9 21,456 Athol 11,661 41.7 9.2 4.7 14,743 Clinton 14,163 40.6 6.6 6.9 261.6 22,138 Groton 10,585 41.6 13.7 3.2 122.8 18,538 Northborough 14,681 56.3 13.7 4.3 63.3 12,445 Oxford 13,712 48.2 11.0 4.8 11,707 Pepperell 11,412 42.8 7.4 6.0 18,870

FY2009 Expenditures- Library

Departmental Goals Teach patrons how to fully utilize all

of the Library’s information systems Develop the Library as the center of

community culture Increase hours of operation Address needs of large after school

teen & pre-teen populations

FY2009 Expenditures- Library The recommended level of spending for the

Library for Fy2009 is $329,867, which represents an increase of $30,100 or 10.04% over current year spending.

Increase reflects an increase in salary for the Director in recognition of her certification, as well as increases for building repairs & maintenance and Library materials.

Funding for CWMARS will come from State Aid

FY2009 Expenditures- Library

FY2009 Expenditures- Debt Service

Debt financing is the primary means of financing large capital projects in Lunenburg.

The use of debt allows the Town to afford the construction of large scale, capital assets in a systematic & planned manner.

FY2009 Expenditures- Debt Service Goals of Debt Management

To achieve the best possible true interest cost associated with debt

To maintain the highest credit rating possible

To keep the average weighted maturities of outstanding debt as low as possible to allow for the issuance of new debt as the need arises.


$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

FY2007 FY2010 FY2013 FY2016 FY2019 FY2022 FY2025

Debt Service by Fiscal Year by Type

Non-Exempt All Other

FY2009 Expenditures- Unclassified The Unclassified category is a catch all for

costs associated for special services or for costs unallocated elsewhere in the budget, the largest of which is for employee benefits.

Other items budgeted for here include: Historical Commission, Band Concerts, Regional Planning, General Insurance & Reserve Funds

FY2009 Expenditures- Unclassified The Town purchases health insurance

for all active & retired employees through MIIA.

FY2009 renewal rate reflects an increase of only 3.7%, this coupled with the negotiated reduction in the Town’s share from 82.5% to 80% resulted in an overall decrease of $44,369

FY2009 Expenditures- Unclassified

Finance Committee Reserve Account has been reduced $10,000 to $70,000 due to the fact that great effort has gone in to determining realistic funding levels for all programs and services included in this budget recommendation

Salary Reserve Account is $48,700

FY2009 Expenditures- Unclassified

FY2009 Expenditures- Retirement Assessment The Worcester Regional Retirement

System annually provides each member Town an assessment based upon anticipated retirement benefits to be paid out.

The Town’s FY2009 assessment has been certified at $493,121, which represents an increase of $54,150 or 12.34%.

FY2009 Expenditures- Non-Appropriated

Cherry Sheet Charges & Underestimates are levied on the Town by State Law and are not subject to Town Meeting Appropriation

Include: Mosquito Control District, MBTA Assessment & Regional Transit


Cherry Sheet Offsets are amounts that are included on the Budget Summary to reflect two state revenue programs- School Lunch and Public Libraries- that are to be spend without further appropriation

We show these as offsets as they are included in Cherry Sheet Revenue


Cherry Sheet Assessments are for tuition payments for Lunenburg students attending school outside of the district.

FY2009 Expenditures- Capital

A separate process for review of capital items, defined as: Any item with a cost of or equal to, or

greater than $10K Groups of items of same use which

together equal or exceed $10K Items with durability of over 3 years


The Capital Planning Committee has made the following recommendations based upon a thorough review of requests.

FY2009 Expenditures- Capital CAFO’s recommendation based upon

funding constraints

FY2009 Preliminary Recommendation- Adjustments

Original Revenue Estimate: 27,990,963$

Adjustments to date:Exempt Debt 97,145$ Septic Receipts (5,218)$ Sewer Betterments (329,083)$

Total Adjusted Revenue: 27,753,807$

Original Expenditure Estimate: 27,990,963$

Adjustements to date:Monty Tech Assessment (74,790)$ Town Forest Committee 500$ Fire Department Weekend On Call Stipend 1,500$ Fire Department EMT Salaries 15,000$ Sewer Betterment Debt (329,083)$ Septic Receipt Debt (5,218)$

Total Adjusted Expenses: 27,598,872$

Balance: 154,935$

FY2009 Budget-Suggested Adjustments Balance = $154,935 Reduce New Growth Estimate by

$25K Increase new Technology Assistant

to full-time +$22,254 Hire 1 new Patrol Officer w/ benefits

+$52,607 Increase Lunenburg Public Schools +

$55,074

town of lunenburg preliminary annual budget –fy2009

Documents

budget process

budget deliberations

governors budget house

comprehensive level

upcoming state budget

fund lottery aid

local aid

house plan