HomeMy Public PortalAboutCity Council Fiscal Year 2015 Budget Policy GuidelinesWatertown's FY2015 Budget Policy Guidelines
As Amended, Approved and Ranked by the Town Council
December 9, 2013
The Town Council is adopting these budget policy guidelines pursuant to Section 5-1 of the Watertown
Home Rule Charter. Based on these guidelines, the Town Manager will develop budgetary goals and the
Town budget for Fiscal Year 2015. Watertown's Ongoing Budget Policy Guidelines Resolution 2012-
72 and Watertown's Ongoing Capital Project Budget Guidelines Resolution 2013-76 are hereby
incorporated by reference.
I. COST-SAVINGS/REVENUES
Note: The items in this section were ranked in order of priority by the Town Council on 12/16/13.
The Town Council believes that identification of cost savings and/or new revenues should be a
precondition to additional expenditures. To this end, in developing the FYI budget, the Town Manager
should:
A. Continue to proceed with the guidelines of the Strategic Framework for Economic Development,
with the long-term goal to promote a diversified and growing tax base.
B. Public safety: Police, Fire and Dispatch together represent the Town's biggest expenditure after
education. Proceed with a review of the Public Safety study recommendations to determine how
to best deliver the level of service citizens want, more efficiently.
C. Actively seek Payment In Lieu Of Taxes (PILOT) agreements with each non-profit organization
owning or purchasing property in Watertown.
D. Explore the feasibility of a standardized system of impact fees for projects subject to site plan
review. Consider mitigation monies for larger scale projects.
E. Finalize recommendations on the feasibility of putting cell antennas on public buildings/land and
determine next steps.
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II. PROGRAM ENHANCEMENTS/EXPENDITURES
Note: The items in this section were ranked in order of priority by the Town Council on 12/16/13.
To the extent that resources allow, in light of the financial policies stated above, and adhering to the
principle of first identifying cost -savings and/or new revenue, the following program enhancements and,
if necessary, new expenditures should receive priority in the FYI budget. Education program
enhancements and expenditures should be considered subsequently in light of the recommendations of
the School Committee.
A. Complete the Comprehensive Plan for the Town dealing with a broad spectrum of issues,
including development, zoning, and transportation, in order to encourage Town government and
its citizens to work in concert towards common goals. Develop an implementation strategy for
key recommendations in the plan.
B. Work collaboratively with the Watertown Public Schools to develop a comprehensive 5-year
educational budget that assures sustainable funding for our schools and the successful education
of our children.
C. Finalize review of recommendations in the Staffing and Operational Assessment of the Public
Works Department and implement changes to improve the operational efficiency, flexibility, and
capacity of the Department to meet the Town's growing needs to manage contractors, respond to
work order requests, oversee development projects, and plan and implement infrastructure
improvements. Consider what technology platforms are needed to support the Department.
D. Work collaboratively with the Watertown Public Schools to develop a capital projects funding
schedule to address school building requirements in order to meet the identified needs for
enrollment and programs.
E. Develop a five-year plan and funding schedule for the integrated improvements of the Town's
streets and sidewalks, water- sewer- stormwater infrastructure, and underground utilities, using
tools such as the new Roadway Management Program. The plan should show status of ongoing
projects, identify future projects including those with no funding source, and include
coordination with water-s ewer- stormwater projects and underground utility projects.
F. Finalize non -municipal re -use of the former branch libraries, and finalize the plans for re -use of
the former police station.
G. Examine changes in staffing and/or processes needed to better handle enforcement of non-
criminal ordinances and regulations such as snow removal, improper trash disposal, permit
violations, and the like.
H. Review the performance data on the automated trash collection/single stream recycling program,
and explore ways to increase recycling.
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ELECTED OFFICIALS:
Mark S. Sideris,
Council President
Stephen P. Corbett,
Vice President
John A. Donohue,
Councilor At Large
Susan G. Falkoff,
Councilor At Large
Anthony Paloniba,
Councilor At Large
Angeline B. Kounelis,
District A Councilor
Cecilia Lenk,
District B Councilor
Watertown Town Council
Administration Building
149 Main Street
Watertown, MA 02472
Phone: 617-972-6470
Resolution# 2012-
Resolution: Watertown's Ongoing Budget Policy Guidelines
WHEREAS the Town Council adopts budget policy guidelines each year pursuant to
Section 5-1 of the Watertown Home Rule Charter, so that the Town Manager can
develop budgetary goals and the Town budget for the next fiscal year, and
WHEREAS for the past several years, annual budget policy guidelines have included
three sections of ongoing budget practices, namely Section 1. FINANCIAL POLICIES,
Section 11. ONGOING BUDGET PRACTICES, and Section V, BUDGET ANT)
FINANCIAL MONITORING, and
Vincent J. Piccirilli, Jr.,
District C Councilor WHEREAS the budget policy guidelines in these three sections have reached a point of
Kenneth M. Woodland maturity whereby they have become standard operating procedure, and do not need to be
District D Councilor revised each year.
NOW THEREFORE 11E IT RESO1,VED that the "Town Council of the City known
as the Town of Watertown hereby establishes the following budget policy guidelines as
permanent policy guidance, to be followed annually:
FINANCIAL 11OUCIES
A. Unreserved fund balance: In order to respond to emergencies and other
unanticipated needs, preserve financial flexibility, and maintain favorable bond ratings,
the Town should seek to inaintain an unreserved fund balance (including stabilization
,funds) equal to 7-10% of the annual operating budget. The Council and the Town
Manager will work to develop a formal multi -year policy on the unreserved fund
balance, including the use of free cash if the unreserved fund balance is above the 7-10%
target.
B. Capital Expenditures: In order to maintain and improve its infrastructure,
facilities, and equipment, the Town should seek to make annual capital expenditures
(including debt and exclusive of enterprise fiords) equal to at least 7.5-8% of the
operating budget.
C. Pension Liability and Other Post Employment Benefits: In order to achieve long
term financial stability, meet the Town's obligations to its employees and retirees, and
maintain favorable bond ratings, the Council, the Retirement Board and Town Manager
will work to address the Town's unfunded pension liability and other post -employment
benefits (OPEB). As was done with the uriftinded Pension Liability, create a long-range
financial plan for addressing the unfunded OPEB liabilities, including the converting the
OPEB stabilization fund to an OPEB Trust Fund. Continue dialog with Retirement
Board and State representatives to consider options for pension reforms for new hires.
11. ONGOING BUDGET PRACTICES
A. Continue the Town's efforts within all departments to obtain grant funding from
federal, state, and other sources, including the use college interns,
B. Continue to analyze the Town's charges for licenses, permits, penalties, and fees
to determine whether they should be increased or new ones instituted, while adhering to
the principal that Ices should not exceed the cost of services provided,
C. Review the possibilities and cost implications of contracted services vs, staffing in
various departments.
D. Support the possibilities of providing more services on a regional or inter -
municipal basis in accordance with the council resolution.
E. All department heads should seek to identify line items within their existing
budgets where costs can be controlled and not increased. Look at other possible
scenarios including spending freezes, level dollar and reduction budgets. Review the use
of overtime in each department and monitor consistent Town -wide practices and related
utilization.
F. Continue to enhance the Town's website and use other technologies as cost
effective means of delivering information and services, increasing public awareness, and
encouraging public feedback,
G. Explore cost savings by sharing personnel across Town departments. Work
towards merging or combining the following functions to better serve both Town and
School Departments: facilities management, human resources, finance, and information
technology.
H. Meet annually in Executive Session(s) to discuss strategies on pending collective
bargaining agreements and the potential impact on upcoming and future budgets.
111. BUDGET AND FINANCIAL MONITORING
A. In order to improve its ability to inonitor the iinpleinentation of the Town budget,
the Town Council will receive quarterly reports ori the revenues and expenditures during
the fiscal year.
B. The Town Coutici I will receive a report on the use and balance of monies in the
Council reserve upon each transfer, and a report each inolith when there is a change in
Town Councilors' expense line items,
C. An early -warning system will be used to alert the Town Council if revenues fall
below projections.
D. The Town Council will receive quarterly updates on progress in addressing the
recommendations in the annual audit report.
BE IT FURTHER RESOLVED that this resolution shall be incorporated by reference
into the annual budgci,,Pojicy guidelines that are adopted each year.
............
1-Member
I hereby certify that at a regular meeting of the Town Council for which a quorum was
present, the above Resolution was adopted by a vote of for, against and _��>)resent
on Duece f0e1 / 11, 2012.
------- -- -
Val e c�rl'�,ai'pb'a s Mark S, Sideris
Council Clerk Council President
ELECTED OFFICIALS
Mark S. Sideris,
Council President
Stephen P. Corbett,
Vice President
John A, Donohue,
Councilor At Large
Susan G. Falkoff,
Councilor At Large
Anthony Palomba,
Councilor At Large
Angeline B. KOUnelis,
District A Councilor
Cecilia Lank,
District B Councilor
Vincent J. Piccirilli, Jr.,
District C Councilor
Watertown Town Council
Administration Building
149 Main Street
Watertown, MA 02472
Phone: 617-972-6470
Resolution# 2013- 1 (1)
Resolution: Watertown's Ongoing Capital Project Budget Guidelines
WHEREAS the Town Council adopts budget policy guidelines each year pursuant to
Section 5-1 of the Watertown Home Rule Charter, so that the Town Manager can
develop budgetary goals and the Town budget for the next fiscal year, and
WHEREAS in the Fiscal Year 2014 budget policy guidelines, Attachment A
"ADDITIONAL RECOMMENDATIONS ON CAPITAL PROJECTS" was included to
use the Town's capital project funds in the most efficient rilanner, and to improve the
efficiency and transparency of the Capital Improvement Program (CIP) process, and
WHEREAS these recommendations have become standard operating procedure for the
Town of Watertown, and do not need to be revised each year.
Kenneth M. We . odland NOW THEREFORE, BE IT RESOLVED that the Town Council of the City 1nown as
District D Councilor the Town of Watertown hereby establishes the following recommendations on capital
projects as permanent budget policy guidance, to be followed annually:
1. Status of cxisting_capital funds and rojects: As part of the January CIP submission by the
Town Manager, include ftom each department, a listing of all existing unspent capital
funds (including Chapter 90, developer mitigation, grant funds, etc.) and a status on each
project or acquisition, including ]low and when remaining funds will be spent, effective
November 30th.
a. Include project funds appropriated by the Town Council to the School Department.
b. Include Water/Sewer Enterprise Fund reporting of capital projects & funds as a new
section of the CIP separate from the General Fund.
2. Details on As part of the January CIP submission by the Town Manager,
provide details for all items in the CIP that have been previously shown as annual lump
sums in a single line.
a. Include the School Department's ``various school improvements".
b. Include "highway reconstruction" and "sidewalk reconstruction", with a forecast of
streets to be done each year.
c. Include Water/Sewer Enterprise Fund capital projects as a new section of the CIP
separate from the General Fund, with a forecast of streets to be done each year.
d. Include transportation or water/sewer and storinwater projects which have or will be
proposed in the nature, with no funding source yet identified,
Coordination Issues Related to Public Works __ n - r - oi - et - - cs: The increasing volume and
complexity of public works projects requires a rethinking of how the Town does its
planning to maximize the use of capital funds and departmental resources, as well as
providing information to the public in a timely, readily accessible fashion.
a. To this end, the CIP needs to have a five-year forecast of what water/sewer/storniwater,
road reconstruction, and sidewalk reconstruction are planned, by specific street, which
will:
i. Insure that work is -sequenced to obtain the maximum life from road and sidewalk
reconstruction without major water/sewer work compromising their integrity.
ii. Allow utility companies adequate time to plan underground service replacements prior to
road and sidewalk reconstruction, to avoid compromising their integrity.
iii. Allow time for the Zoning Enforcement Office to notify property owners of non-
conforming driveways, while giving the owners adequate time to seek a variance.
iv. Allow developers time to plan their projects in coordination with the Town, and avoid
digging up newly installed roads and sidewalks.
v. Allow abutting homeowners, who may want to pay for granite curbs on streets scheduled
for asphalt curbs, time to arrange contracting and payment.
vi. Allow time for the Tree Warden to notify abutters who may want a street tree in front of
their property, to allow for the placement of a tree pit prior to the installation of a new
.sidewalk.
vii. Provide more transparency to citizens on public works projects and spending.
viii. Allow the Public Works Committee or other appropriate committee adequate time to
review the proposed work and provide policy guidance on the above as it relates to
Watertown's goals.
b. Issues of coordination and timing need to be improved to insure the most efficient use of
funds, and bonding of annual street construction projects should be coordinated with
bidding such that contractors can begin by April and be completed by November.
c. The Public Works Department should address, on an ongoing basis:
i. Assure adequate supervisory capacity to eliminate decision bottlenecks and improve
timeliness of responses for construction work.
ii. Notification to the public of what construction is happening and where and when it will
occur must be improved, and should be available on the wcbsitc and -updated regularly.
iii. Improve completion of punch list items on projects needs to be improved, including
. painting of roadway markings, installation of traffic signs, removal of temporary
construction Signs, cleanup Of Construction debris, etc.
4. Protection of investments: With millions of dollars being spent each year in Watertown
on street and sidewalk construction, the administration should take a more aggressive
role to protect the value of these investments to insure that maximum life is obtained
from the new surfaces.
BE IT FURTHER RESOLVED that this resolution sliall be incorporated by reference
into the annual budget policlyuideli, ties that are adopted each year.
Council Mciriber
I hereby certify that at a regular meeting of the Town Council for which a quorum was
present, the above Resolution was adopted by unanimous voice vote on December 9,
2013,
Valerie Papas, COL11161 Clerk
Mark S. Sideris, Council President