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Home My Public Portal About20140122 - Appropriations Committee - Meeting MinutesTown of Hopkinton Appropriation Committee (AC) Minutes of Meeting on Wednesday, January 22, 2014 Room 211, Town Hall, Hopkinton, MA In attendance: Mike Manning Pam Waxlax Wayne Pacheco Pat Mahon Chris Ketchen Jon Westerling Chairman Manning called the meeting to order at 6:33 PM and welcomed Pat Mahon to the committee as our fifth member. There were no public comments at the meeting. Jon Westerling and Chris Ketchen presented a request from the DPW to overspend the Snow & Ice Removal account. May 2013 ATM approved a budget of $200,000. The Town has already incurred expenses for of $200,000 from prior storms this year prior to the previous night's storm. Massachusetts allows towns to carry a deficit in this account in the following year for this line item only. Pam moved and Wayne seconded to authorize the Town to incur liability and make expenditures in excess of available appropriations for snow and ice removal in accordance with MGL Chapter 44, section 31D in the amount of $500,000. The motion passed by a vote of 4-0. Pam gave an update on the progress of the Elementary School Building Committee (ESBC.) THE ESBC is on track to meet with the MSBA for approval to move forward with the feasibility study at their March 2014 board meeting. The following items have been completed and submitted to MSBA: • Initial Compliance Certification (12/20/13) • School Building Committee (1/2/14) • Local Vote Authorization (12/20/13) • Feasibility Study Agreement (12/20/13) The following two items should be completed by the end of January: • Enrollment/On-line Projection • Maintenance and Capital Planning Information ESBC is looking at ways to engage with the community - keep public informed, initiate feedback. We received updated enrollment projections from NESDEC. Dr. MacLeod will discuss the numbers further with them, specifically the question of how they arrive at the number of 3 and 4 year old children in town. The school may look into another service provider/vendor for this info as NESDEC has been historically low on estimates. Finally, ESBC chair and vice chair provided an update to the BOS on December 3, 2013. We asked that the BOS be prepared to say what will happen to Center School should the ESBC determine renovation is not the best option. Discussion ensued regarding debt to be potentially incurred over the next few years with the elementary school, library and DPW all on the near horizon. Chris explained that the overall town debt will not be a flat line with debt coming off being replaced with newly incurred debt. The overall debt will increase from today with these three projects. Mike discussed what has been happening with the school budgets and free full day kindergarten (FFDK.) Concern is that if FFDK is pushed forward this could cause backlash with the voters on the solution to Center School. The committee discussed options for allowing ATM to discuss FFDK on the floor for full debate. Thoughts were to make an amendment for the amount required for FFDK to the operating budget article or keep it as a separate article. The committee agreed this would be a good idea for transparency to fully vet it at ATM. It was also noted that FFDK was not a level service but an add-on. Chris said he would look at if modulars were used, would this be a separate capital article. Chris presented the financial model, see attachment 1. The tax rate has been set since our last meeting. State Aid for FY14 is not final yet. The tax impact net of new growth town wide was 1.98%, calculated using actual levy less new growth from FY13 to FY14. The new growth number for FY15 is low and conservative. Chris further noted the balances in the Town's stabilization funds: Capital Stabilization Fund - $300K General Stabilization Fund - $1.9M OPEB Fund - $200K The General Stabilization Fund has increased since ATM as a result of a sale of land under restrictions which requires previously exempt taxes to be paid upon sale and those funds to go to Stabilization Fund. Chris also noted that Free Cash was certified last week at $2.2M. This was the result of some unexpected receipts and we do not expect to see a large free cash balance again in the near future. The outliers include a carryover of free cash balance from last year of $240K because free cash was not certified until close to ATM, $400K in motor vehicle excise tax in excess of anticipated revenue and $450K Stryker settlement when their TIF agreement with the Town was decertified with the move of the company. Chris noted that last year we used Free Cash in the following manner: $50K - Capital Stabilization Fund; $50K - OPEB Fund; $500K - Snow & Ice Removal deficit balance payoff (rather than include in the raise and appropriate number for the following year's budget); $100K - To be used in conjunction with the Casino; $250K - pay down feasibility study from prior ESBC and the downtown revitalization initiative. Wayne moved and Pam seconded a motion to approve the minutes of our 11/20/2013 meeting as written. The motion passed by a vote of 3-0 with 1 abstaining. At 8:16 PM Pat moved and Pam seconded a motion to adjourn. The motion passed unanimously, 4-0. TOWN OF HOPKINTON FINANCIAL MODEL FINAL FIN AL PROJECTED PROJE CTED PROJECTED PROJECTE D PR OJECTED FISCAL 2013 FIS CAL 2014 FISC AL 2015 FISCAL 2018 FISCAL 2017 FISCAL 2018 FISCAL 2019 OPERATING BUDGET SUMMARY: GENERAL GOVERN MENT 2,472,746.00 2,594,520 .49 2,594,520 .49 2,646,410.90 2,699,339 .12 2,753,325 .90 2,808,392.42 PUBLIC SAFETY 4,293,330 .00 4,404,818.88 4,404,818 .88 4,492,915 .26 4,682,773 .56 4,674,429.03 4,767,917 .61 EDUC ATIO N-HOPKINTON PUBLI C SCHOOLS 34,085,238 .00 35,585,384 .00 37,151,140 .90 38,637,188.53 40,182,673 .99 41,789,980.95 43,461,580 .19 EDUCATIO N -REGIONAL TECH VO CH SCHOOL 514,510.00 527,192 .00 540,371.80 553,881.10 567,728 .12 581,921.33 596,469 .36 PUBLIC WORKS 3,915,587.00 3,798,822 .16 3,798,822.16 3,874,798 .60 3,952,294 .58 4,031,340 .47 4,111,967 .28 HEALTH AND HUMAN SERVICES 354,650.00 425,370.86 425,370 .86 433,878.28 442,555 .84 451,406 .98 460,436 .10 CULTURE AND RECREATION 346,972.00 373,104 .77 373,104 .77 380,566 .87 388,178 .20 395,941.77 403,860 .60 DEBT SERVICE CURRENT (Excludes CPFd!Ent erpri se Debt) 6,183,087.00 5,611,169 .00 5,052,676.12 4,088,880 .00 3,750,845 .00 3,441,427.00 3,441,427 .00 DEBT SERVICE (Prior Ye ar - BAN Paydowns) 249,334.00 DEBT SER VICE AUTHO RIZED/NO T ISSUED 707,275.00 702,875 .00 698,475.00 694,076.00 694,075 .00 DEBT SERVICE PRO JECTED (Estimated for Capital) 150,000.00 300,000 .00 450,000.00 600,000.00 EMPLO YEE BENEFITS, INSURANCE & MISCELLANEOUS 8,602,447.00 8,757,906 .00 8,871,355 .00 9,137,495.65 9,411,620 .52 9,693,969.14 9,984,788 .21 C OMMUNITY PRESERVATION FU ND 162,820 .00 326,910.00 326,910 .00 326,910.00 326,910.00 326,910.00 326,910 .00 SEWER ENTERPRISE FUND (Inclu de s Capital Equipment) 2,719,922.00 2,928,089 .00 2,928,089 .00 2,986,650 .78 3,046,383 .80 3,107,311.47 3,169,457 .70 WATER ENTERPRISE FUND 1,366,549 .00 1,571,447.00 1,571,447 .00 1,602,875.94 1,634,933 .46 1,667,632.13 1,700,984 .77 PARKS & RECREA TION ENTERPRISE FUND 422,142 .00 581,770.21 581,770.21 593,405 .61 605,273 .73 617,379 .20 629,726 .79 To tal Operatin g Bu dge t 64,440,000.00 67,635,838 .37 69,327,672 .19 70,608,730.51 72,589,984 .92 74,677,050 .34 77,157,992.03 Capital Plan 703,520.00 - 800,000.00 800,000.00 800,000.00 800,000 .00 800,000 .00 Str ategic Initiatives - - 256,129 .30 261,251 .89 266,476.92 271,806.46 277,242.59 Commun ity Preservation P rojects/Reservation s 1,439,600 .00 1,632,630.00 1,284,800 .00 1,284,800 .00 1,284,800 .00 1,284,800 .00 1,284,800 .00 M iscellaneo us Articles 721,750.00 714,600.00 200,000.00 200,000.00 200,000 .00 200,000 .00 200,000 .00 Ente rprise Articles from Free Cash 253,000.00 67,000.00 253,000 .00 253,000.00 253,000.00 253,000 .00 253,000.00 OTH ER AMOUNTS TO BE RAISE D: A mo unts Ce rtified Tax Title Pu rposes 18, 989.50 44,250.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000 .00 Un prov ided De bt & In te res t Charges 90,000.00 Allow Aba te & Ex emp Defic its -Pr Yr Che rry She et O ffsets -Res Dir Exp 26,963. 00 25,023.00 26,700.00 26,700 .00 26,700 .00 26,700.00 26,700 .00 Re ven ue Deficit -Prio r Year Autho rize d defe rral of teachers' pay Sno w & Ice Deficit -Prio r Year 193,128. 82 - 500,000 .00 500,000.00 500,000.00 600,000.00 500,000 .00 Severe Storm De ficit - Prio r Yea r (Irene FY12; Sandy FY13) 89,726. 38 41,755. 00 O ther (Utilitie s Interest) 253,810.96 Tota l Other Amo unts to be Raised 328,796.70 454,838.96 546,700.00 546,700.00 546,700 .00 546,700 .00 548,700.00 State & Coun ty C harge s(in ci Tuitio n Asses sments) 579,885. 00 563,953.00 563,953.00 563,953 .00 563,953 .00 563,953.00 563,953 .00 Allo wance Aba te ments & Exe mptions (Ove rlay) 450,000.00 451,125.48 450,000. 00 450,000.00 450,000.00 450,000 .00 450,000 .00 TO TAL AMOU NT TO BE RAISE D 66,916,531.70 71,519,985. 81 73,662,254. 49 74,968,435.40 76,954,914 .84 79,047,309 .80 81,533,687.82 1 S:\FY15\Financial Model\Financial Model FY15 v .9 (P ost-RecaDll 1/22/2014 6:04 PM TOWN OF HOPKINTON FINAN CIAL MODEL FINAL FINAL PROJECTED PR OJECTED PROJECTED PROJECTE D PR OJE CTED FISCAL 2013 FISCAL 2014 FISCAL 2015 FISC AL 2016 FISCAL 2017 FISCAL 2018 FISCAL 2019 TOTAL AMOUN T TO BE RA ISE D 68,916,531 .70 71,519,985 .81 73,882,254 .49 74,968,435.40 76,954,914 .84 79,047,309 .80 81,533,687.62 LESS R EVENUE/A VAILABLE FU NDS: Tax Re venue See Below See below See b elow See b elow See below See below See bel ow Lo cal R even ue 2,823,559 .49 3,135,257.96 3,107,092.00 3,107,092 .00 3,107,092 .00 3,107,092.00 3,107,092.00 State Aid 6,784,204 .00 6,905,724 .00 6,905,724 .00 6,905,724 .00 6,905,724.00 6,905,724.00 6,905,724.00 MSBA Schoo l Construction Reimbursement 2,077,694.00 1,487,086 .00 1,487,086.00 1,487,086 ..00 1,487,086 .00 1,487,086.00 1 ,487,086 .00 Free C ash -Appropriation s fro m 1,321,520.00 962,934 .00 600,000 .00 600,000 .00 600,000 .00 600,000 .00 600,000.00 Free Cash. Offset Tax Rate Community Pres ervation Fds De btlProjects/Reserva tlon s 1,602,420.00 2,156,389.00 1,611,710 .00 1,611,710.00 1,611,710.00 1,611,710 .00 1,611,710 .00 Availa ble Funds 429,196.27 362,793 .47 192,034.87 183,363.22 179,210.91 176,094 .89 176,094 .89 Ente rpris e Reven ue/Enterprise Fre e Cash 5,209,667.00 5,620,794 .21 5,926,791.72 6,028,417.84 6,132,076 .49 6,237,808 .31 6,345,654.77 TOTAL RE VENU E/A VAILABLEFOS 20,248,260. 76 20,830,978.84 19,830,438.59 19,923,393 .06 20,022,899.40 20,125,515.20 20,233,381.66 VARIA NCE/TAX LEVY (48,668,270. 94) (50,889,007.17) (53,851,815.90 (55,045,042 .34) (56,932,015.44) (58,921,794 .60) (61,300,325.96 2 1/22/2014 6:04 PM 5:\FY15\Financial Model\Financial Model FY15 v.9 (Post -Recap)] TOWN OF HOPKIN TON TAX LEVY WORKSHEET FINAL FINAL FISCAL 2015 FISCAL 2016 FISCAL 2017 FISC AL 2018 FY2013 FY2014 PROJ PROJ PROJ PROJ MAXIMU M A LLOWABLE TAX LEVY CALCULATION: Base 45,309,403 47,401,641 49,843,334 52,439,418 54,750,403 57,119,163 Maximum allowable tax levy increase (2 112%) 1,132,735 1,185,041 1,246,083 1,310,985 1,368,760 1,427,979 New Growth 959,503 1,256,652 1,350,000 1,000,000 1,000,000 1,000,000 Overrides Capital Outlay Exclusio ns 50,000 Debt Exclusio ns Current 2,487,560 3,216,161 2,588,566 1,968,162 1,804,746 1,528,422 Debt Ex clusions Authorized/Unissued 154,000 149,600 145,200 140,800 MAXIMUM ALLOWABLE TAX LEVY 49,939,201 53,059,495 55,181,984 56,868,165 59,069,109 61,216,364 A CTUAL. LEVY 48,668,271 50,889,007 53,851,816 55,045,042 56,932,015 58,921,795 H EXCESS LEVY CAPACITY 1,270,930 2,170,488 1,330,168 1,823,123 2,137,084 2,294,570 Tax Lev y % Increase 3.47% 4.56% 5.82% 2.22 % 3 .43 % 3 .50 % Tax Levy(net of new growth) 47,708,768 -. e 49,632,355 52,501,816 54,045,042 a 55,932,015 57,921,795 .: '^IA"°T+Rif. TS 1"FI. M1. 14 f R ax Impact (n'et of nevr gfo 3