HomeMy Public PortalAboutCity Council Fiscal Year 2014 Budget Policy GuidelinesWatertown's FY2014 Budget Policy Guidelines
As Approved and Ranked by the Town Council
December 11, 2012
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 2014. Ongoing budget policy guidelines in Resolution R-2012-72 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 12/17/12.
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. 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.
B. Continue to develop marketing and outreach recommendations of the Strategic Framework for
Economic Development, which should include the possibility of additional restaurants or a hotel,
with a long-term goal to increase town revenue.
C. Implement the Energy Services Company (ESCO) program as recommended by the Town
Council on October 2, 2012:
• Move forward on the optimized $7.35M ESCO project.
• Negotiate a contract with Johnson Controls for the ESCO project; including the addition
of quarterly reports of energy usage in all buildings under agreement.
Review the establishment of an energy stabilization fund in which to place rebates,
grants, and funds from departmental energy savings. The energy stabilization fund will
be used to pay the debt service on the energy efficiency projects incurred under the
ESCO agreement.
D. Actively seek Payment In Lieu Of Taxes (PILOT) agreements with each non-profit organization
owning or purchasing property in Watertown.
E. Explore the feasibility of a standardized system of impact fees for projects subject to site plan
review. Consider mitigation monies for larger scale projects.
F. Review recommendations of the study on the feasibility of putting cell antennas on public
buildings/land and determine next steps.
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IL PROGRAM ENHANCEMENTS/EXPENDITURES
Note: The items in this section were ranked in order of priority by the Town Council on 12/17/12.
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 FY14 budget. Education program
enhancements and expenditures should be considered subsequently in light of the recommendations of
the School Committee.
A. Proceed with the review of recommendations in the Staffing and Operational Assessment of the
Public Works Department and implement changes to improve the ability to perform routine
maintenance, complete work order requests in a timely manner, and strengthen the capacity to
supervise contractors.
B. Develop a five-year plan and funding schedule for the improvements of the Town's streets and
sidewalks using the new Roadway Management Program. The plan should show status of
ongoing projects, identify future projects including those with no funding source, and coordinate
with water -sewer projects. See Attachment A for additional recommendations.
C. 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. Incorporate all previous resources, such
as the Economic Development Study, the Open Space Plan, the Pleasant Street Corridor District
Study, etc. Include traffic, transportation resources, and public parking improvements, and a
review of the Zoning Ordinance.
D. Review the first full year of performance data on the automated trash collection/single stream
recycling program, and make recommendations.
E. Determine the need for and how to fund future sewer and storm water infrastructure
improvements.
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. Continue to explore the need and determine the feasibility of providing social service
coordination.
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ATTACHMENT A. ADDITIONAL RECOMMENDATIONS ON CAPITAL PROJECTS
To use the Town's capital project funds in the most efficient manner and to improve the efficiency and
transparency of the Capital Improvement Program process, the following recommendations should be
implemented.
1. Status of existing capital funds and projects: As part of the January CIP submission by the Town
Manager, include from 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 how 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 new projects: 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 stormwater projects which have or will be
proposed in the future, with no funding source yet identified.
3. Coordination Issues Related to Public Works projects: 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/stormwater, 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.
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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 following issues should be referred to the Public Works Committee, or other appropriate
committee, for policy guidance to address ongoing complaints from residents about public
works projects:
i. Supervisory capacity within the DPW needs to improve 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 website and updated
regularly.
iii. 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 needs to take a more aggressive role to protect the
value of these investments to insure that maximum life is obtained from the new surfaces, therefore
the following issues should be referred to the appropriate committee for policy guidance:
a. Revise the existing 1993 regulations for street and sidewalk work by defining a specific time
period of enhanced protection for new pavement, and by expanding the level of restoration
work and methods to be performed at the utility's or contractor's expense within this time
period (see Public Works Committee Report dated March 27, 2012).
b. Develop a computerized method of tracking utility excavations so that street or sidewalk
patches that fail prematurely, or do not meet specifications, can be easily identified and back -
charged to the utility or contractor (including the water/sewer department).
c. Concrete sidewalks as well as granite and asphalt curbs are not designed to hold the weight
of a motor vehicle, and lead to premature failure. The police department should actively
enforce the existing laws against parking on sidewalks (including the curb). The zoning
enforcement officer should actively enforce prohibitions on non -conforming driveways
across concrete sidewalks where there is no driveway apron.
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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.
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Val e c�rl'�,ai'pb'a s Mark S, Sideris
Council Clerk Council President