Watertown, MA FY 2012 preliminary budget overview

FISCAL YEAR 2012
TOWN OF WATERTOWN
PRELIMINARY BUDGET
OVERVIEW

October 26, 2010
To download this presentation, visit our website:
www.watertown-ma.gov

Wednesday, April 13, 2011

Table of Contents
• REVENUE

pgs. 3-6
FISCAL YEAR 2012 • EXPENDITURES

pgs. 7-12
PRELIMINARY BUDGET • UNRESERVED FUND BALANCE
OVERVIEW
pg. 13
• DEBT

pgs 16-20
• ENTERPRISE FUNDS

pgs 21-22
• FUND BALANCES

pgs 23-28
• FY2011 FORECAST

pgs 32-53
• COMPARISONS FY2011/FY2012

pg 54-55
• BUDGET ISSUES

pg 56


Revenue and Other Sources

3

Local Receipts - Detail

4

Revenue & Other Sources

5

Revenue Summary

6

Expenditures
General Government

7

Expenditures

8

Expenditures

9

Expenditures

10

Expenditures

11

Expenditures

12

Unreserved Fund Balance
Certiﬁed Free Cash Analysis

13

Financial Reserve Goal
To fund and maintain Financial Reserves of 7 – 10% of
the Town’s annual budget, we must:

1. Preserve or improve the Town’s bond rating
2. Promote financial flexibility and stability
3. Meet extraordinary and unforeseen events
4. Have sufficient liquidity and cash flow to pay bills
on time without the necessity of short term
borrowing

A declining reserve is an indicator that Watertown is
living beyond its means.

14

Capital Improvement Program
Fiscal Year 2011 Budget Message:
The ﬁve year Capital Improvement Program (CIP) is included within the
FY2011 Budget.

The FY2011-2015 General Fund CIP totals $89,344,000 of which
$20,835,900 is the bonding requirement. Street and Sidewalk
bonds of $43,000,000 listed in Fiscal Year 2015 are not included in
the bonding requirement. The funding source in the amount of
$12,312,300 within the CIP has not been determined.

The FY2011-2015 Water/Sewer Enterprise Funds CIP totals $3,690,000
of which $130,000 is the bonding requirement.

The CIP includes all known capital needs, regardless of the source of
funding.

15

Permanent Debt (Principal Only): June 30, 2010 Balances

16

Budgeted FY2011 Bond Payments

17

Bond Issues: June 30, 2011 Balances

18

Permanent Debt Summary
June 30, 2010 Balance $46,212,000

Fiscal Year 2011 Bond Payment ($5,386,000)

Permanent Debt Balance $40,826,000
June 30, 2011

19

Debt Summary

20

Sewer Enterprise Fund

21

Water Enterprise Fund

22

Water & Sewer Prior Year Funds
Balances as of July 1, 2010

23

Prior Year Fund (Fund 02)
Balances as of July 1, 2010

24

Overlay Accounts
Balances as of June 30, 2010

25

Special Revenue Accounts
Balance as of June 30, 2010

26

Capital Projects Accounts

27

Trusts and Agency Accounts

28

FY2011 Budget Development
(Included for background informational purposes)

To preserve the Town’s financial condition we must:

1. Continue to strive to provide the highest level of essential
services possible with the most efficient utilization of
resources.
2. Ensure annual costs of all operations to be funded on an
annual basis out of current revenues.
3. Not defer maintenance and/or recognition of costs of capital
equipment, facilities and infrastructure to future years.
4. Remain focused on achieving our long term goal of sound
financial management and fiscal stability.
5. Present budget based on sound business practices.

29

Town Council FY2011 Budget Policy Guidelines
(adopted December 15, 2009)
Six of the top priorities are as follows:

• Complete an energy use baseline inventory for municipal buildings, vehicles, street
and traffic lighting and create a plan to reduce energy use by 20% in 5 years.
• Repair and improve the Town’s streets and sidewalks and enhance its trees and
planting strips. Consideration should be given to funding such repairs, improvements
and enhancements from a variety of sources, including tax revenues, debt and a
betterment program. Strengthen capacity (including staffing) to carry out routine
maintenance of street trees and other trees on public land and, through the joint
efforts of the Tree Warden and Department of Public Works, develop a comprehensive
Tree Program.
• Public Safety: Police, Fire and dispatch together represents the Town’s biggest
expenditure (after education). Examine how to best deliver the level of service citizens
want, more efficiently.
• Strengthen the Town’s capacity to address facilities management, through regular
staffing or contract services. The Council and Town Manager will continue discussions
on reorganizing the Public Works Department to include a facilities manager/engineer.
• Institute a formal Economic Development Program for the newly rezoned Pleasant
Street Corridor District, with a long-term goal to increase town revenue. The Program
should include a marketing plan to prospective developers as well as the use of state
and federal grants and redevelopment programs.
• Support the possibilities of providing more services on a regional basis in accordance
with the Town Council Resolution.
30

Energy Costs

31

FY2012 Preliminary Budget Overview –
Revenues & Expenditures
• Annual revenues and expenditures will be estimated
by use of objective analysis. The assumptions and
factors through which the estimates are derived will
be clearly stated and explained during the budget
process.

• The numbers provided are preliminary and subject
to change as the budget process evolves.

32

Revenue Forecast
Assumptions:

Real estate and Personal property taxes are increased
2.5% per year. New growth is projected to be
$750,000 in FY2012 and $1,000,000 annually in
FY2013 & FY2014.

Funding for the Optional Tax Exemption for
homeowners at 100% over the statutory level is
included in the overlay adjustment.

33

Revenue Forecast
Proposition 2 ½ debt exclusion override is based on
bond costs and school construction
reimbursements.

Cherry sheet receipts are funded at 15% below the
FY2011 level.

The majority of Local Receipts is projected to remain
constant or increase 2.5% annually. Motor vehicle
excise is projected at $3,250,000 and investment
income is projected at $255,000 annually.

34

Revenue Forecast
Other ﬁnancing Sources reﬂect transfers from the
Parking Meter Fund to partially offset the Parking
Lots and Meters Budget, from the Cemetery
Perpetual Care Expendable Trust Fund and the Sale
of Lots Fund to partially offset the Department of
Public Works Cemetery Budget, and from the Water
and Sewer Enterprise Funds to cover applicable
indirect costs and debt service.

35

Revenue Forecast
Utilization of Free Cash is projected at $1,750,000 in
FY2012 and $1,500,000 annually thereafter.
However, results of general fund ﬁnancial activity
and funding requirements of future capital needs
may affect this level.
Transfer from the North East Solid Waste Committee
(NESWC)/Capital Projects Stabilization Fund is
projected at $500,000 in FY2012 and $57,000 in
FY2013, which represents the balance of the fund.

36

Revenue Forecast
Taxes

37

Revenue Forecast
State Aid

38

Revenue Forecast
Local Receipts

39

Revenue Forecast
Local Receipts cont’d

40

Revenue Forecast
Other Financing Sources

41

Revenue Forecast
Summary

42

Expenditure Forecast
Assumptions:

Departmental expenditures are projected to increase 2.5%
annually.

The Waste Disposal appropriation is projected to increase 3%
annually and includes funding of the Service Agreement
with Wheelabrator North Andover, which expires in
FY2015.

43

State assessments, exclusive of the MBTA assessment, are
projected to increase 2.5% annually. The MBTA
assessment is projected to increase 2.75% annually.

Pension costs are based on the Watertown Contributory
Retirement Board’s funding schedule which has the
Retirement System being fully funded by the end of
FY2022. Thereafter, any revised funding schedule is
subject to approval by the Public Employee Retirement
Administration Commission (PERAC).

44

Health insurance costs, included within insurance &
employee beneﬁts, are projected to increase 12% annually
from FY2012 through FY2014.

Debt ﬁgures are from current and future debt as listed in the
FY2011 – FY2015 CIP/Debt Projection Table of the Capital
Improvement Program. The level of projected debt may
change pending decisions on various projects that are
listed within the Proposed FY2011 – FY2015 Capital
Improvement Program, the Facilities Assessment Study,
and the results of the Roadway Management Study.

Town Capital Projects are listed in the Capital Improvement
Program.

Street & sidewalk improvements are projected to increase 5%
annually.

45

Departmental Expenditures

46


47

Debt and Interest

48

Debt and Interest

49

Capital Projects

50

Summary

51

Forecast Summary

52

Forecast Summary
Total Revenue Total Expenditures

$110,000,000

$90,000,000

$70,000,000
FY2011 FY2014
FY2012
FY2013

53

Forecast Comparison

54

Projected Comparison

55

FY2012 Budget
FY2011 Budget Issues
Issues • Uncertainty of Future Local Aid
• Sales Tax Ballot Measure • Economy Driven Revenues
• 9C Local Aid Cut • Collective Bargaining
• Snow and Ice Removal • Shared/Regionalized Services
• FY2011 Loan Order Items • Capital Projects (Parks and
Recreation)
• ESCO
• Health Insurance/Retirement/
OPEB
• Public Safety Study
• Departmental Operating Budgets
• Reuse of Town Buildings

56

Watertown, MA FY 2012 preliminary budget overview

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (8)

Destacado

Destacado (7)

Similar a Watertown, MA FY 2012 preliminary budget overview

Similar a Watertown, MA FY 2012 preliminary budget overview (20)

Último

Último (14)

Watertown, MA FY 2012 preliminary budget overview