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HomeMy Public PortalAboutFiscal Year 2023 Preliminary Budget Overview } �1 30 4 ti Fiscal 2023 Town of W Preliminary Overview October 12, 2021 To download this presentation,visit our website: www.watertown-ma.gov Table of Contents Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................................pgs. 3-7 Expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . . .pgs. 8-11 Unreserved Fund Balance. . . . . . . . .... . . . . . . . . . . . . . . . . .......pg. 12 Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... . ... . .pgs. 15-16 Enterprise Funds. . . . . . . . . . . . . . . . . . . . . . . . . . ........................pgs. 17-18 Fund Balances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pgs. 19-24 Fiscal Year 2022 Budget Amendment. . . . . . . . . . . . . . . . . ..pg. 28 FY2023 Forecast. . . . . . . . . . . . . . . . . . . . ... . . . . . . . .... . . . . . . . . . . ...pgs. 30-55 Comparisons FY2022/FY2023. . . . . . . . . . . ... . . . . .... . ..... . .pgs. 56-57 Budget Issues. . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . . . . . . . . ..... . .pgs. 58 Three Elementary Schools... . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..pgs. 59-61 New High School. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...pg. 62 Revenue and O Sources General Budget Actual Budget Actual Budget Real & Personal Property Tax $ 116,106,127 $ 114,571,108 $ 122,391,323 $ 130,783,605 $ 131,476,106 State Aid $ 13,205,612 $ 13,279,891 $ 11,955,612 $ 13,142,271 $ 13,481,781 Total $ 1291311,739 $ 127,8501999 $ 134,346,935 $ 143,925,876 $ 144,957,887 Local Receipts - Detail Budget Actual Budget Actual Budget Motor Vehicle $ 4,350,000 $ 4,621,949 $ 3,915,000 $ 4,378,523 $ 4,100,000 Meals Excise $ 550,000 $ 549,973 $ 412,500 $ 407,607 $ 550,000 Hotel and Other Excise $ 700,000 $ 701,602 $ 525,000 $ 250,679 $ 525,000 Penalties & Interest $ 250,000 $ 256,765 $ 250,000 $ 402,704 $ 250,000 PILOT $ 977,236 $ 1,001,319 $ 1,024,699 $ 305,679 $ 81,948 COMM. Trash $ 15,000 $ 22,955 $ 15,000 $ 25,663 $ 15,000 Fees $ 4,100,000 $ 5,551,840 $ 3,850,000 $ 7,150,845 $ 3,850,000 Rentals $ 129,358 $ 144,139 $ 128,841 $ 131,243 $ 178,312 Cemetery $ 95,000 $ 141,760 $ 95,000 $ 106,725 $ 95,000 Recreation $ 420,000 $ 378,283 $ 420,000 $ 364,077 $ 420,000 License & Permits $ 192,000 $ 233,382 $ 192,000 $ 96,554 $ 192,000 Fines & Forfeits $ 705,000 $ 503,667 $ 610,000 $ 356,465 $ 510,000 Investment Income $ 500,000 $ 1,072,666 $ 500,000 $ 119,361 $ 250,000 Sale of Town Prop. $ 5,000 $ 42,508 $ 5,000 $ 10,900 $ 5,000 Belmont Reimb. $ 73,090 $ 87,363 $ 74,595 $ 81,281 $ 76,127 Grant/Employee Reimb. $ 25,000 $ 341,495 $ 25,000 $ 36,218 $ 251,000 Medicaid $ 320,000 $ 132,688 $ 222,376 Miscellaneous' $ 810,706 $ 354,108 Total $ 13,406,684 $ 16,288,060 $ 12,042,635 $ 14,801,007 $ 11,123,387 Revenue and O Sources Source Transfer from: Budget Actual Budget Actual Budget Sale of Lots $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Parking Meter $ 350,000 $ 350,000 $ 250,000 $ 250,000 $ 150,000 Cemetery Perpetual Care $ 15,000 $ 15,000 $ 10,000 $ 10,000 $ 10,000 Capital Proj. Stab. Fund $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 ESCO Capital Project Stab. Fund $ 515,688 $ 515,688 $ 508,388 $ 508,388 $ 505,938 New High School Stab. Fund $ 5,798,555 Utilization Of Overlay Surplus $ 1,500,000 Free Cash $ 2,000,000 $ 2,000,000 $ 12,250,000 $ 12,250,000 $ 2,000,000 Collective Bargaining Stabilization $ 621,500 $ 621,500 $ 440,000 $ 440,000 Water Fund $ 1,631,808 $ 1,631,808 $ 1,588,520 $ 1,588,520 $ 1,553,006 Sewer Fund $ 1,534,390 $ 1,534,390 $ 1,491,802 $ 1,491,802 $ 1,507,448 Total $ 7/193,386 $ 7,193,386 $ 17,0631,710 $ 17,063,710 $ 13,549,947 Revenue Summary (Page of Budget Actual Budget Actual Budget Property Tax $ 116,106,127 $ 114,571,108 $ 122,391,323 $ 130,783,605 $ 131,476,106 State Aid $ 13,205,612 $ 13,279,891 $ 11,955,612 $ 13,142,271 $ 13,481,781 Local Receipts $ 13,406,684 $ 16,288,060 $ 12,042,635 $ 14,801,007 $ 11,123,387 Other Sources $ 7,193,386 $ 71193,386 $ 17,063,710 $ 17,063,710 $ 13,549,947 Total Revenue $ 149,911,809 $ 151,332,445 $ 163,4531280 $ 175,790,594 $ 169,631,221 Revenue Summary (Page of BudgetBudget Property Tax $ 122,391,323 $ 130,783,605 $ 8,392,282 $ 131,476,106 State Aid $ 11,955,612 $ 13,142,271 $ 1,186,659 $ 13,481,781 Local Receipts $ 12,042,635 $ 14,801,007 $ 2,758,372 $ 11,123,387 Other Sources $ 17,063,710 $ 17,063,710 $ - $ 13,549,947 Total Revenue $ 163,453,280 $ 175,790,594 $ 121337,314 $ 169,631,221 Expenditures Budget Actual Budget Actual Budget General Government $ 6,948,903 $ 5,707,923 $ 6,815,945 $ 6,239,181 $ 8,824,540 Public Safety $ 21,573,329 $ 20,892,105 $ 21,899,910 $ 21,633,482 $ 22,305,829 Public Works $ 5,683,873 $ 5,320,739 $ 5,802,548 $ 5,495,649 $ 6,387,861 Snow & Ice $ 1,415,000 $ 1,067,252 $ 1,500,000 $ 1,317,325 $ 1,500,000 Waste Disposal $ 3,187,237 $ 3,183,015 $ 3,422,265 $ 3,420,148 $ 3,692,300 Health & Human Services $ 1,489,217 $ 1,291,614 $ 1,558,265 $ 1,316,660 $ 1,550,386 Library $ 3,125,222 $ 3,009,487 $ 3,197,791 $ 3,062,203 $ 3,433,498 Recreation Department $ 363,369 $ 356,147 $ 388,035 $ 382,834 $ 400,922 Skating Arena $ 3911967 $ 348,927 $ 402,497 $ 350,734 $ 492,718 Education $ 50,441,424 $ 50,441,424 $ 51,937,315 $ 51,937,315 $ 531755,121 Total Departmental $ 94,619,541 $ 91,618,633 $ 96,924,571 $ 95,155,531 $ 102,343,175 General Government FY2022 budget amount includes Town Council Reserve of $1,157,451. Expenditures Budget Actual Budget Actual Budget Debt Retirement $ 6,951,511 $ 6,950,371 $ 7,573,650 $ 7,511,369 $ 19,912,519 School Capital Projects $ 1,221,500 $ 1,221,500 $ 5,754,000 $ 5,754,000 $ 5,362,221 Town Capital Projects $ 5,017,969 $ 5,017,969 $ 3,509,768 $ 3,509,768 $ 1,640,400 Total Debt Svc. & Cap. Proj. $ 13,190,980 $ 13,189,840 $ 16,837,418 $ 16,775,137 $ 26,915,140 Expenditures (Page of Budget Actual Budget Actual Budget Total Departmental $ 94,619,541 $ 91,618,633 $ 96,924,571 $ 95,155,531 $ 102,343,175 Total Debt Svc. & Cap. Proj. $ 13,190,980 $ 13,189,840 $ 16,837,418 $ 16,775,137 $ 26,915,140 State & County Charges $ 2,717,478 $ 2,730,589 $ 2,816,632 $ 2,958,371 $ 2,978,693 Pension & OPEB $ 211196,816 $ 21,186,452 $ 16,967,196 $ 16,966,689 $ 14,207,208 Insurance & Employee Benefits $ 16,077,026 $ 15,485,389 $ 16,863,538 $ 16,445,285 $ 18,316,330 Other Financing Uses $ 2,109,968 $ 2,101,933 $ 13,043,925 $ 13,027,011 $ 4,870,675 Grand Total $ 149,911,809 $ 146,312,836 $ 163,453,280 $ 161,328,025 $ 169,631,221 Expenditures (Page of Budget ActualBudget General Government $ 6,815,945 $ 6,239,181 $ 576,764 $ 8,824,540 Public Safety $ 21,899,910 $ 21,633,482 $ 266,428 $ 22,305,829 Public Works $ 5,802,548 $ 5,495,649 $ 306,899 $ 6,387,861 Snow & Ice $ 1,500,000 $ 1,317,325 $ 182,675 $ 1,500,000 Waste Disposal $ 3,422,265 $ 3,420,148 $ 2,117 $ 3,692,300 Health & Human Services $ 1,558,265 $ 1,316,660 $ 241,605 $ 1,550,386 Library $ 3,197,791 $ 3,062,203 $ 135,588 $ 3,433,498 Recreation Department $ 388,035 $ 382,834 $ 5,201 $ 400,922 Skating Arena $ 402,497 $ 350,734 $ 51,763 $ 492,718 Education $ 51,937,315 $ 51,937,315 $ - $ 53,755,121 Total Departmental $ 96,924,571 $ 95,155,531 $ 1,769,040 $ 102,343,175 Total Debt Svc. & Cap. Proj. $ 16,837,418 $ 16,775,137 $ ] 62,281 $ 26,915,140 State & County Charges $ 2,816,632 $ 2,958,371 $ (141,739) $ 2,978,693 Pension & OPEB $ 16,967,196 $ 16,966,689 $ 507 $ 14,207,208 Insurance & Employee Benefits $ 16,863,538 $ 16,445,285 $ 418,253 $ 18,316,330 Other Financing Uses $ 13,043,925 $ 13,027,011 $ 16,914 $ 4,870,675 Grand Total $ 163,453,280 $ 161,328,025 $ 2,125,255 $ 169,631,221 General Government FY2022 budget amount includes Town Council Reserve of $1,157,451. Unreserved Certified Free Cash Analysis Unreserved Fund Balance Beginning of Fiscal Year $ 15,481,000 $ 15,383,922 $ 16,374,245 $ 20,183,763 $ 22,212,609 Revenues Over/(Under) Budget $ 1,447,042 $ 1,817,753 $ 2,808,326 $ 1,420,636 $ 12,337,314 Expenditures (Over)/Under Budget $ 1,452,225 $ 1,496,600 $ 2,497,923 $ 3,598,973 $ 2,125,255 Use of Free Cash $ (3,438,894) $ (2,000,000) $ (2,000,000) $ (3,250,000) $ (11,000,000) GAAP Adjustments $ 442,549 $ (324,030) $ 503,269 $ 259,237 $ (823,731) Unreserved Fund Balance End of Fiscal Year $ 15,383,922 $ 16,374,245 $ 20,183,763 $ 22,212,609 $ 24,851,447 Certified Free Cash $ 11,451,127 $ 12,978,697 $ 17,019,246 $ 18,365,067 $ 20,000,000 FY2021 amounts are subject to classification changes via audit. FY2021 Certified Free Cash is an estimated amount. Financial Goal To fund and maintain Financial Reserves of 8 - 15% of the Town's annual budget, we must: 1. Preserve the Town's AAA 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. • Capital Program Fiscal Year 2022 Budget Message The five-year Capital Improvement Program (CIP) is included within the FY2022 Budget. The Fiscal Year 2022-2026 General Fund CIP totals $428,332,200, which represents a decrease of $95,818,300 from the Fiscal Year 2021-2025 CIP. Potential renovation/reconstruction of school facilities totaling $250,023,100 is included as a subcategory in the Fiscal Year 2022-2026 Capital Improvement Program. Projects included in the potential renovation/reconstruction of school facilities are further outlined in the 'Building for the Future" section of this correspondence and are as follows: • Three Elementary Schools Project $ 50,023,100 • High School Project $200,000,000 TOTAL: $250,023,100 The bonding requirement for the Fiscal Year 2022-2026 CIP is $112,707,900 and the Street and Sidewalk bonds of $53,235,800 listed in Fiscal Year 2026 are not included in the bonding requirement. The funding source of$6,400,000 of the CIP has not been determined. The following are the projects/items with the funding source to be determined (TBD). • Former Police Facility Renovation/Reuse $ 4,800,000 • Former North Branch Renovation/Reuse $ 1,100,000 • Multi-Service Center Renovation $ 500,000 TOTAL: $ 6,400,000 The Fiscal Year 2022-2026 Water and Sewer Enterprise Funds CIP totals $22,670,000. Stormwater Infrastructure Improvements of $36,100,000 with a funding source to be determined (TBD) are included within the 2022-2026 Water/Sewer Enterprise Funds CIP. The CIP includes all known capital needs, regardless of the sources of funding. 14 Permanent General Fund Debt Summary Permanent Debt Budgeted Permanent D• . Balances FY 2022 Balances 6/30/21 Bond Payments 6/30/22 FY 2008 Bond Issue $ 4,000,000 $ 500,000 $ 3,500,000 FY 2010 Bond Issue $ 2,105,000 $ 270,000 $ 1,835,000 FY 2012 Bond Issue $ 820,000 $ 195,000 $ 625,000 FY 2013 Bond Issue $ 3,850,000 $ 275,000 $ 3,575,000 FY 2014 Bond Issue $ 1,495,000 $ 215,000 $ 1,280,000 FY 2014 Refunding Bond Issue $ 2,710,000 $ 680,000 $ 2,030,000 FY 2016 Bond Issue $ 580,000 $ 155,000 $ 425,000 FY 2018 Bond Issue $ 3,015,000 $ 915,000 $ 2,100,000 FY 2019 Bond Issue $ 3,110,000 $ 655,000 $ 2,455,000 FY 2020 Bond Issue $ 14,265,000 $ 1,340,000 $ 12,925,000 FY 2021 Bond Issue $ 52,145,000 $ 2,610,000 $ 49,535,000 FY 2021 Bond Issue $ 39,090,000 $ 2,405,000 $ 36,685,000 TOTAL $ 127,185,000 $ 10,215,000 $ 116,970,000 Reflects existing bonds issued for general fund purposes as of June 30, 2021. 0% interest MWRA Loans and bonds issued for water and sewer projects are not included. General Summary Date of • DescriptionANs Loan ' Maturing Order 6/24/22 Vote Total Permanent General Fund Debt $ 116,970,000 Authorized General Fund Debt (not yet issued ): 11/13/2018 Feasibility Study and Schematic Design for High School $ 1,600,000 $ 1,600,000 6/25/2019 3 Elementary School Projects Plan Design $ 3,488,461 $ 3,488,461 M19/10/20193 Elementary School Projects OPM Services $ 1,144,277 $ 1,144,277 7/13/2021 Reconstruction Upper Waverley Avenue $ 1,500,000 9/28/2021 Replacement of Town Hall Chiller $ 423,826 9/28/2021 Underground Duct/DPW Building Sidewalks/Parking Lots $ 410,000 9/28/2021 DPW Equipment $ 1,628,000 10/12/2021 Replacement of Fire Ladder Truck $ 11,250,000 Subtotal Authorized Unissued Debt: $ 11/444,564 Total Permanent & Short Term And Authorized Un-issued Debt $ 128,414,564 Previously authorized projects, which have been permanently financed, are not included in the above list as any remaining portions are expected to be rescinded. Sewer Enterprise Fund BUDGET ACTUAL BUDGET REVENUE & OTHER SOURCES: USAGE CHARGES $ 10,554,119 $ 10,304,173 $ 10,886,108 MUNICIPAL CHARGES $ 86,068 $ 86,068 $ 85,000 INTEREST AND PENALTY CHARGES $ 50,000 $ 80,888 $ 50,000 SEWER LIENS $ 348,176 OTHER UTILITY CHARGES $ - $ 630 $ - INTEREST INCOME $ 15,000 $ 14,855 $ 15,000 TOTAL REVENUE $ 10,705,187 $ 10,834,789 $ 11,036,108 EXPENDITURE & OTHER USES: PERSONNEL SERVICES $ 569,425 $ 498,991 $ 677,878 SUPPLIES AND SERVICES $ 481,000 $ 460,569 $ 481,000 MWRA ASSESSMENT $ 6,648,177 $ 6,648,177 $ 6,859,624 CAPTIAL OUTLAY $ 1,055,000 $ 1,053,285 $ 1,055,000 TRANSFER TO GENERAL FUND $ 1,491,802 $ 1,491,802 $ 1,507,448 DEBT SERVICE $ 459,783 $ 411,052 $ 455,158 TOTAL EXPENDITURES $ 10,705,187 $ 10,563,875 $ 111036,108 Water Enterprise Fund FY 2022 BUDGET . BUDGET REVENUE & OTHER SOURCES: USAGE CHARGES $ 7,803,063 $ 7,148,519 $ 8,202,530 MUNICIPAL CHARGES $ 160,000 $ 160,000 $ 185,675 INTEREST AND PENALTY CHARGES $ 42,000 $ 49,699 $ 50,000 WATER LIENS $ 203,096 OTHER UTILITY CHARGES $ 50,000 $ 408,882 $ 125,000 TEST CHARGES $ 50,000 $ 74,458 $ 75,000 USE OF RETAINED EARNINGS $ 250,000 $ 250,000 $ - SALE OF PROPERTY $ 3,890 $ 5,000 INTEREST INCOME $ 10,000 $ 9,349 $ 10,000 TOTAL REVENUE $ 8,365,063 $ 8,307,893 $ 8,653,205 EXPENDITURE & OTHER USES: PERSONNEL SERVICES $ 1,089,648 $ 861,865 $ 1,107,857 SUPPLIES AND SERVICES $ 395,100 $ 361,066 $ 1395,100 MWRA ASSESSMENT $ 3,935,832 $ 3,935,832 $ 4,184,354 CAPITAL OUTLAY $ 236,000 $ 235,199 $ 236,000 TRANSFER TO GENERAL FUND $ 1,588,520 $ 1,588,520 $ 1,553,006 TRANSFER TO CAP. PROJECT/WATER $ 250,000 $ 250,000 $ - DEST SERVICE $ 869,963 $ 542,013 $ 1,176,888 TOTAL EXPENDITURES $ 8,365,063 $ 7,774,495 $ 8,653,205 18 Water & Sewer Prior Year Funds Balances as of July 1, 2021 DescriptionAccount - Carryover Water: A Improvements $ 159,199 Water Materials & Supplies $ 158,179 Street Repair Services $ 72,166 Sidewalk Repair Services $ 48,974 Replacement Of Equipment $ 5,000 Tools $ 1,000 Total Water Prior Year $ 444,518 Sewer: Improvements $ 1,804,970 Additional Equipment $ 824,314 Street Repair Services $ 112,980 Sidewalk Repair Services $ 75,470 Sewer Materials & Supplies $ 74,515 Replacement Of Equipment $ 71,218 Rental of Equipment $ 61,690 Contracted Services $ 19,029 Total Sewer Prior Year $ 3,044,186 Overlay Accounts Balances as of June 30, 2021 Fiscal Year � 2017 $ 89,677 2018 $ 404,491 2019 $ 309,882 2020 $ 589,609 $ 656,330 $ 21049,988 Special Accounts Balances as of June 30, 2021 Fund Description Fund Balance FY 21 Circuit Breaker $ 2,101,401 O'Neill Property Charitable $ 1/218,195 Cares Grant $ 695,410 School Lunch Program $ 610,215 School Extended Day Program $ 558,056 Athletics Revolving Fund $ 517,102 Sale Of Cemetery Lots* $ 332,690 Parking Meter Fund* $ 295,058 Affordable Housing Dev $ 269,269 Pre-school $ 261/120 Food Pantry $ 236,166 Library LIG/MEG $ 199,913 Top Twelve Total $ 71294 592 All Others (107) $ 21187,336 Total Special Revenue (119) $ 91481,928 * Includes amounts to be transferred for FY2022 Budget. CommunityPreservation Act (CPA Balances as of June 30, 2021 Account Description Account Balance FY 2018 Reserve for Open Space/Recreation $150,000 FY 2019 Reserve for Open Space/Recreation $236,739 FY 2020 Reserve for Open Space/Recreation $248,140 FY 2021 Reserve for Open Space/Recreation $260,000 Total Reserve Open Space/Recreation $894,879 FY 2018 Reserve for Historic Preservation $150,000 FY 2019 Reserve for Historic Preservation $236,739 FY 2020 Reserve for Historic Preservation $248,140 FY 2021 Reserve for Historic Preservation $260,000 Total Reserve for Historic Preservation $894,879 FY 2018 Reserve for Community Housing $150,000 FY 2019 Reserve for Community Housing $236,739 FY 2020 Reserve for Community Housing $248,140 FY 2021 Reserve for Community Housing $260,000 Total Reserve for Community Housing $894,879 Reserve for Encumbrances $23,120 Undesignated Fund Balance $7,407,100 Total: $10,114,857 NOTE: During Fiscal Year 2022, it is estimated that the CPA fund will grow another $31051,210. Capital ProJects Accounts Balances as of June 30, 2021 . . - Three Elementary School Project $ 2,716,253 Greystar Capital Mitigation $ 1,450,000 MWRA I And I Grant/Loan Order FY 21 $ 1,050,000 Public Safety Radio Infrastructure $ 961,971 FY 21 Street And Sidewalk $ 945,555 Information Technology Cap. Projects $ 589,100 Police Building $ 4361570 DPW Equipment $ 355,973 Arsenal Mitigation $ 298,024 MWRA I And I Grant/Loan Order FY 20 $ 267,800 FY 21 Water Improvements $ 250,000 Top Eleven Total $ 9,321,246 All Others (58) $ 3,730,037 Total Capital Projects (69) $ 13,051,283 Stabilizations, Trusts and Y enc Ag Accounts Balances as of June 30, 2021 DescriptionFund - OPEB Trust Fund $ 13,881,072 Acquisition of Land/Open Space Stabilization $ 8,500,000 New High School Stabilization $ 3,000,000 Capital Proj. Stabilization* $ 2,630,147 ESCO Stabilization* $ 1,497,729 Stabilization Fund $ 1,274,278 Sped Stabilization $ 1,020,914 Cemetery Perpetual Care (Non-expendable) $ 1,012,926 Federal Law Enforcement Trust $ 721,050 Albert Fleming Scholarship (Non-expendable) $ 300,000 Cemetery Perpetual Care (Expendable) $ 268,162 UPIT Scholarship Fund (Non-expendable) $ 228,630 Top Twelve Total $ 34,334,908 All Others (59) $ 1,011,447 Total Trusts & Agency (71) $ 35,346,355 Includes amounts to be transferred for FY2022 Budget FY2022 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. Town Council FY2022 Budget Policy Guidelines (Page 1 of 2) (adopted November 24, 2020) The following are the top two priorities of the ranked Cost-Savings/Revenues Guidelines and the top six priorities of the ranked Program Enhancements/Expenditures Guidelines: ® 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. ® Continue pursuing mitigation monies and/or other measures for larger scale projects. ® Continue support for Building for the Future Initiative funding in collaboration with the School Building Committee, for the Three Elementary Schools project, and for the MSBA High School project with proposed debt exclusion funding in conjunction with outreach efforts to the community by the School Committee. m Enhance the capabilities of the Town Manager's office with consideration given to creating a Deputy Town Manager position as previously recommended in the Division of Local Services' Financial Management Review, with responsibilities to include managing communication content and enhancing public engagement, and other duties as assigned. Town Council FY2022 Budget Policy Guidelines (Page 2 of 2) (adopted November 24, 2020) W Continue to work collaboratively with the Watertown Public Schools to develop a comprehensive multi- year educational budget that assures sustainable funding for our schools and the successful education of our children. In consideration of the ongoing impacts of COVID-19 on the Town's budget, seek to accommodate a FY22 Education appropriations that wili provide ie°vei-service funding for our schools. W Improve the operational efficiency, flexibility, and capacity of the Public Works Department to meet the Town's growing needs to manage contractors, respond to work order requests, oversee development projects, plan and implement infrastructure improvements, improve communications to residents about road construction, comply with the MassDEP 2030 Solid Waste Management Plan, and maintain complete streets infrastructure. Consider what technology platforms are needed to support the Department. W Based on final policy direction to be developed by the Town Council, develop a budgetary plan to meet the identified need for acquisition of land for open space and /or recreational use, including proposals submitted to the Community Preservation Committee. W Continue to work with the Watertown Transportation Management Association to identify sustainable sources of funding, including tax revenue if needed, for the pilot shuttle bus program. 27 Fiscal Year 2022 Budget Amendment INCREASE REVENUE (DECREASE) TO READ REAL ESTATE AND PROPERTY TAXES $ 1,892,192 $ 133,368,298 STATE AID $ 941 $ 13,482,722 INSYEC1ION FEES $ 5,000,000 $ 7,200,000 TOTAL REVENUE ADJUSTMENT $ 6,893,133 INCREASE EXPENDITURES (DECREASE) TO READ SCHOOL CHOICE ASSESSMENT $ 49,436 $ 243,318 0182056-560629 CHARTER SCHOOL ASSESSMENT $ 1 $ 261,782 0182056-560630 NEXUS STUDY-AFFORDABLE HOUSING LINKAGE FEES $ 50,000 $ 50,000 0194000-530327 TRANSFER TO UNFUNDED PENSION LIABILITY STABILIZATION $ 5,000,000 $ 5,000,000 0194000-596804 TOWN COUNCIL RESERVE $ 1,793,696 $ 2,951,147 0111152-570780 TOTAL EXPENDITURE ADJUSTMENT $ 6,893,133 FY2023 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. Revenue Forecast Assumptions: Real Estate and Personal Property taxes are increased 2.5% per year. New growth is projected to be $4,000,000 in FY 2023, $4,000,000 in FY 2024 and $4,000,000 in Fiscal Year 2025. Funding for the Optional Tax Exemption for homeowners at 100% over the statutory level is included in the overlay adjustment. State Aid is level funded at the FY2022 budget. The majority of Local Receipts are projected to remain constant or increase 2.5% annually. Inspection Fees are $7,200,000 in FY 2022 and remain at $2,200,000 thereafter. Investment Income is projected at $250,000 annually through FY 2025. Motor Vehicle Excise is increased by $185,000 in FY 2022 and is projected to increase $250,000 in FY 2023 and $125,000 in FY 2024 & FY 2025. Meals Excise is increased by $137,500 to $550,000 in FY 2022; and increase $50,000 annually from FY 2023 through FY 2025. Hotel Excise is projected at $525,000 in FY 2022, which is the FY 2021 amount; and is projected to increase $150,000 annually from FY 2023 through FY 2025. Payment in Lieu of Taxes (PILOT) was projected at $1,024,699 in FY 2021 and was reduced to $81,948 in FY 2022 as a result of the sale of Tufts Health Building to a taxable entity. Revenue Forecast Other Financing Sources reflect transfers from the following: ® Parking Meter Fund to offset the Parking Lots and Meters Budget. This fund was reduced by $100,000 in FY 2021 and was further reduced by another $100,000 in FY 2022, and is projected to increase by $100,000 in FY 2024. ® Cemetery Perpetual Care Expendable Trust Fund and the Sale of Lots Fund to partially offset the Department of Public Works Cemetery Budget. ® Water and Sewer Enterprise Funds to cover applicable indirect costs. Revenue Forecast Utilization of Free Cash was $12,250,000 in FY 2021 as a result of establishment of an Acquisition of Land/Open Space Stabilization Fund ($6,5000,000) and a l,�Zew High School Stabiiization Fund ($2,500,000). Utilization of Free Cash is recommended at a level of $2,000,000 annually through FY 2025 which includes $250,000 annually for the Special Education Stabilization Fund. Transfer from the Capital Projects Stabilization Fund is projected at $500,000 annually through FY 2026, which represents the current balance of the Fund Transfer from the ESCO Capital Project Stabilization Fund includes projected funds from departmental energy savings, rebates and grants. Revenue Forecast Taxes Prior Year Levy Limit $ 123,391,323 $ 134,368,298 $ 141,727,505 $ 149,270,693 Add 2.5% $ 3,084,783 $ 3,359,207 $ 3,543,188 $ 3,731,767 New Growth $ 7,892,192 $ 4,000,000 $ 4,000,000 $ 4,000,000 Adjusted Levy Limit $ 134,368,298 $ 141/727,505 $ 149,270,693 $ 157,002,460 Overlay $ (1,000,000) $ (1,050,000) $ (1,050,000) $ (1,100,000) Net Levy Limit $ 133,368,298 $ 140,677,505 $ 148,220,693 $ 155,902,460 Revenue Forecast State Aid Cherry Sheet Receipts $ 13,482,722 $ 13,482,722 $ 13,482,722 $ 13,482,722 Total State Aid $ 13,482,722 $ 13,482,722 $ 13,482,722 $ 131482,722 Revenue Forecast Local Receipts (1 of 2) Motor Vehicle Excise $ 4,100,000 $ 4,350,000 $ 4,475,000 $ 4,600,000 Meals Excise $ 550,000 $ 600,000 $ 650,000 $ 700,000 Hotel Excise $ 525,000 $ 675,000 $ 825,000 $ 975,000 Penalties & Interest $ 250,000 $ 250,000 $ 250,000 $ 250,000 PILOT $ 81,948 $ 87,088 $ 87,628 $ 88,168 Commercial Trash $ 15,000 $ 15,000 $ 15,000 $ 15,000 Fees "M $ 8,850,000 $ 3,850,000 $ 3,850,000w $ 3,850,000 Rentals my $ 178,312 $ 227,769 $ 227,215 $ 226,644 Cemetery $ 95,000 $ 95,000 $ 95,000 $ 95,000 Recreation $ 420,000 $ 420,000 $ 420,000 $ 420,000 Revenue Forecast Local Receipts (2 of 2) Licenses & Permits $ 192,000 $ 192,000 $ 192,000 $ 192,000 Fines & Forfeits $ 510,000 $ 510,000 $ 510,000 $ 510,000 Investment Income $ 250,000 $ 250,000 $ 250,000 $ 250,000 Sale of Town Property $ 5,000 $ 5,000 $ 5,000 $ 5,000 Belmont Reimbursement $ 76,127 $ 78,030 $ 79,981 $ 81,980 Grant/Employee Reimbursements $ 25,000 $ 25,000 $ 25,000 $ 25,000 Total Local Receipts $ 16,123,387 $ 11,629,887 $ 11,956,824 $ 12,2831792 Revenue Forecast Other Financing Sources Transfer Sale of Lots $ 25,000 $ 25,000 $ 25,000 $ 25,000 Parking Meter $ 150,000 $ 150,000 $ 250,000 $ 250,000 Cemetery Perpetual Care $ 10,000 $ 10,000 $ 10,000 $ 10,000 Capital Project Stabilization $ 500,000 $ 500,000 $ 500,000 $ 500,000 ESCO Capital Proj. Stabilization $ 505,938 $ 500,938 $ 494,438 $ 493,225 New High School Stabilization $ 5,798,555 $ 576,000 $ 554,667 $ - Water Fund $ 1,553,006 $ 1,553,006 $ 1,553,006 $ 1,553,006 Sewer Fund $ 1,507,448 $ 1,507,448 $ 1,507,448 $ 1,507,448 Free Cash $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 Utilization of Overlay Surplus $ 1,500,000 $ - $ - $ - Total Other Sources $ 13,549,947 $ 6,822,392 $ 6,894,559 $ 6,338,679 37 Utilization of Free Cash & Overlay Surplus Free Cash -Annual $ 2,000,000 $ 2,000,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 Free Cash— COVID 19— Loss Revenue $ 1,250,000 Free Cash—Acq. Land/Open Space Stab. $ 6,500,000 Free Cash— New High School Stab. $ 2,500,000 Overlay Surplus $ 1,500,000 Free Cash— SPED Stabilization $ 250,000 $ 250,000 $ 250,000 Total Revenue $ 12/250,000 $ 3,500,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 Revenue Forecast Summary Real Estate & Personal Prop. Tax $ 133,368,298 $ 140,677,505 $ 148,220,693 $ 155,902,460 State Aid $ 13,482,722 $ 13,482,722 $ 13,482,722 $ 13,482,722 Local Receipts $ 16,123,387 $ 11,629,887 $ 11,956,824 $ 12,283,792 Other Financing Sources $ 13,549,947 $ 6,822,392 $ 6,894,559 $ 6,338,679 Total Revenue $ 176,524,354 $ 172,612,506 $ 180,554,798 $ 188,007,653 FY2022 Budget amounts include Proposed FY2022 Budget Amendment of$6,893,133. • x en pure Forecast Assumptions: Departmental expenditures are projected to increase $1,055,958 (2.5%) in FY 2023, $1,082,355 (2.5%) in FY 2024 and $1,109,418 (2.5%) in FY 2025. The Education appropriation is projected to increase $1,881,429 (3.5%) in FY 2023, $1,947,279 (3.5%) in FY 2024 and $2,015,435 (3.5%) in FY 2025. Snow and Ice Removal is projected at $1,500,000 through FY 2025. The Waste Disposal appropriation is projected to increase 5% annually from FY 2023 through FY 2025. Funding of the Service Agreement with Wheelabrator North Andover beginning in FY 2021 through FY 2025 has been included. The current agreement with Republic Services for solid waste and recycling hauling ends June 30, 2022. • x en pure Forecast State assessments, exclusive of the MBTA assessment, are projected to increase 2.5% annually. The MBTA assessment is projected to increase 2.75% annually. The Watertown Contributory Retirement Board Funding Schedule approved by the Public Employee Retirement Administration Commission had the Retirement System fully funded on July 1, 2021. Pension costs are projected to decrease $7,079,095 in FY 2022, decrease $6,368,559 in FY 2023, decrease $247,876 in FY 2024, and decrease $6,115 in FY 2025. A long-range Financial Plan for the pay down of the Unfunded Other Post- Employment Benefits (OPEB) Liability had been created beginning in FY 2020. The revised Funding Plan is projected to have the OPEB Liability being fully funded in 2031. Funding of the OPEB Liability is projected at $6,698,124 in FY 2022, $11,372,981 in FY 2023, $11,877,750 in FY 2024, and $7,844,090 in FY 2025. • x en pure Forecast Health Insurance costs, included within Insurance & Employee Benefits, are projected to increase 7.5% annually. Funding of the Three Elementary Schools Project is projected at $9,808,364 in FY 2022, $13,286,494 in FY 2023, $12,911,268 in FY 2024, and $12,311,043 in FY 2025. Planned Debt Service for the New High School Project is projected at $783,333 in FY 2023, $3,118,333 in FY 2024, and $7,758,333 in FY 2025. Debt figures are from current and projected future debt as listed in the FY 2022-2026 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 FY 2022-2026 Capital Improvement Program. Street and Sidewalk Improvements are projected to increase 5% annually. Transfer to the Acquisition of Land/Open Space Stabilization Fund is projected at $1,500,000 annually from FY 2022 through FY 2025. Transfer to the New High School Stabilization Fund is $3,000,000 in FY 2022 and $2,216,667 in FY 2023. Transfer to the Special Education Stabilization Fund is projected at $250,000 annually from FY 2023 through FY 2025. • x en pure Forecast Departmental Expenditures General Government $ 7,667,089 $ 7,858,766 $ 8,055,235 $ 8,256,616 Public Safety $ 22,305,829 $ 22,863,475 $ 23,435,062 $ 24,020,938 Public Works $ 6,387,861 $ 6,547,558 $ 6,711,246 $ 6,879,028 Snow & Ice Removal $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Waste Disposal $ 3,692,300 $ 3,876,915 $ 4,070,761 $ 4,274,299 Health & Human Services $ 1,550,386 $ 1,589,146 $ 1,628,874 $ 1,669,596 Library $ 3,433,498 $ 3,519,335 $ 3,607,319 $ 3,697,502 Recreation $ 893,640 $ 915,981 $ 938,881 $ 962,353 Education $ 53,755,121 $ 55,636,550 $ 57,583,829 $ 59,599,264 Total Departmental $ 1011185,724 $ 104,307,726 $ 107,531,207 $ 110,859,596 Insurance & Employee Benefits $ 18,316,330 $ 19,610,247 $ 20,999,673 $ 22,491,723 r • x en pure Forecast FY 2022 Education Appropriation (Included for background informational purposes) Two of the top priorities of the Program Enhancements/Expenditures section of the Honorable Town Council's Fiscal Year 2022 Budget Policy Guidelines that were adopted on November 24, 2020 reads as follows: II. A. Continue support for Building for the Future Initiative funding in collaboration with the School Building Committee, for the Three Elementary Schools project, and for the MSBA High School project with proposed debt exclusion funding in conjunction with outreach efforts to the community by the School Committee. II. C. Continue to work collaboratively with the Watertown Public Schools to develop a comprehensive multi-year educational budget that assures sustainable funding for our schools and the successful education of our children. In consideration of the ongoing impacts of COVID-19 on the Town's budget, seek to accommodate a FY22 Education appropriation that will provide level-service funding for our schools. Expenditure Forecast FY 2022 Education Appropriation (Included for background informational purposes) Education's $ 53,755,121 $ 55,636,550 $ 57,583,829 $ 59,599,264 The Submitted Fiscal Year 2022 Budget continues the Town's very strong commitment to Education. The adopted funding level for the Fiscal Year 2022 Education appropriation is $53,755,121, which is an increase of $1,817,806 over the Fiscal Year 2021 Education appropriation. The Submitted Fiscal Year 2022 School Health Insurance appropriation is $6,091,608, an increase of $493,315 above the Fiscal Year 2021 Level. Included within the School Health Insurance appropriation are monies related to projected staffing in Fiscal Year 2022. As indicated earlier in this presentation, the Expenditure Forecast included within the Submitted Fiscal Year 2022 Budget document has Departmental Expenditures projected to increase 2.5% annually from Fiscal Year 2023 through Fiscal Year 2025. The Education appropriation is projected to increase 3.5% annually from Fiscal Year 2023 through Fiscal Year 2025. We look forward to continue working collaboratively with the Watertown Public Schools to develop a comprehensive multi-year Education Budget that assures sustainable funding for our schools and the successful education of our children. * The Education appropriation is projected to increase $1,881,429 (3.5%) in FY 2023, $1,947,279 (3.5%) in FY 45 2024 and $2,015,435 (3.5%) in FY 2025. Building for the Future Initiative Three ElementarySchools Project The Honorable Town Council's Fiscal Year 2022-2026 Capital Improvement Program conceptual recommendation #21 reads as follows: For the "Building for the Future" Three Elementary Schools Project: endorse the revised borrowing plan, within the confines of Proposition 21/2, to reflect the accelerated schedule as voted by the School Building Committee on February 16, 2021, will change from this: • Planned FY22 loan order of$46,000,000 • Planned FY23 loan order of$43,478,109 To this: • Second proposed FY21 loan order of$39,455,000 • Proposed FY22 loan order of$50,023,109 As a follow-up to that conceptual recommendation and Policy Guideline II.A., two borrowings occurred to date in calendar year 2021 as follows: • On January 26th, $64,000,000 was permanently borrowed which included a receipt of a Net Premium of$7,215,000 and a transfer of funds of$4,640,000 thereby lowering the Bond Issue to $52,145,000. The winning bid on the bonds was an average interest rate of 1.343% for the 20-year General Obligation Bond Issue. • On April 141h, $39,455,000 was permanently borrowed which included a receipt of a Net Premium of$4,693,800 and a transfer of funds of$655,000 thereby lowering the Bond Issue to $34,106,200. The winning bid on the bonds was an average interest rate of$1.466% for the 20-year General Obligation Bond Issue. As stated many times in the past couple of years, as a result of the aggressive funding of the Retirement System, financing of the $170,000,000 for the Three Elementary Schools Project will be done within the confines of Proposition 21/. 46 Building for the Future Initiative New Hi h School Projectg The following is an excerpt from page 28 of the Fiscal Year 2022 Budget Message dated April 27, 2021: New High School Project The School Building Committee has been working tirelessly to review conceptual design options for the new High School in an effort to ultimately select a preferred design option that is in the best interests of the Town, the taxpayers and the successful education of our children. During all of the School Building Committee's tireless efforts, we have been working on how best to proceed with the financing of the new High School. I am pleased to inform that a plan will be finalized and presented in advance of October's Fiscal Year 2023 Preliminary Budget Overview whereby financing of the new High School Project with MSBA funding included will be done within the confines of Proposition 21/2; and all of this to be done without the need to request debt exclusion financing from the taxpayers of Watertown. As you are aware, on August 25, 2021 the Board of the Massachusetts School Building Authority (the "MSBA") voted to approve the Town, as part of its invitation for Feasibility Study, to proceed into Schematic Design to replace the existing Watertown High School with a new facility serving grades 9-12 on the existing site (the "proposed project"). After completion of Schematic Design, the Town will seek approval from the MSBA in early 2022 to participate in the funding of a new High School. Given all of the above, tonight you will see the plan on pages 49 & 50 whereby financing of the New High School Project with MSBA funding included will be done within the confines of Proposition 21/2; and all of this to be done without the need to request debt exclusion financing from the taxpayers of Watertown. UNFUNDED PENSION LIABILITY & OTHER POST-EMPLOYMENT BENEFITS (OPEB) The Honorable Town Council's Fiscal Year 2019 Budget Policy Guideline II.A. reads in part as follows: " use funds redirected from the retirement aYri-opriation when the pension is fully funded, to reconstruct 3 elementary schools while also paying down the OPEB liability." In accordance with that Budget Policy Guideline, the projected funding for the Retirement Appropriation is as follows: Projected Ap pr t1�,d ation ariance Fiscal Year 2022 $ 7,509,084 ($7,079,095) Fiscal Year 2023 $ 1,140,525 ($6,368,559) Fiscal Year 2024 $ 892,649 ($ 247,876) Fiscal Year 2025 $ 886,534 ($ 6,115) As indicated earlier, the Retirement System was fully funded on July 1, 2021. A long-range financial plan for addressing the Unfunded OPEB Liabilities had been created; and subsequently formalized in the Honorable Town Council's Fiscal Year 2019 Budget Policy Guidelines II.A.; and commenced in Fiscal Year 2020. The OPEB Funding Plan was projected to result in the OPEB Liability being fully funded in Fiscal Year 2029. As indicated in the Fiscal Year 2022 Budget Message, the Town is having an actuarial valuation of the Post Retirement Benefit Program as of June 30, 2021. Subsequent to that valuation being completed, the OPEB Funding Plan may be adjusted. Although the actuarial valuation has not been completed and in order to finance the new High School within the confines of Proposition 21/2, the OPEB Funding Plan will be extended by two fiscal years. The revised Funding Plan is projected to have the OPEB Liability being fully funded in Fiscal Year 2031. 48 Expenditure Forecast 4/27/2021 — Submission of the Fiscal Year 2022 Budget Pension $ 7,509,084 $ 1,140,525 $ 892,649 $ 886,534 Other Post Employment Benefits (OPEB) $ 6,698,124 $ 9,588,553 $ 10,211,655 $ 10,817,995 3 Elementary School Project $ 9,808,364 $ 13,286,494 $ 12,911,268 $ 12,311,043 Transfer To New High School Stabilization $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 TOTAL $ 27,015,572 $ 27,015,572 $ 27,015,572 $ 27,015,572 Expenditure Forecast 10/12/2021 — Fiscal Year 2023 Preliminary Budget Overview Pension $ 7,509,084 $ 1,140,525 $ 892,649 $ 886,534 Other Post Employment Benefits (OPEB) $ 6,698,124 $ 11,372,981 $ 11,877,750 $ 7,844,090 3 Elementary School Project $ 9,808,364 $ 13,286,494 $ 12,911,268 $ 12,311,043 Transfer To New High School Stabilization $ 3,000,000 $ 2,216,667 $ - $ - New High School Debt Service $ 783,333 $ 3,118,333 $ 7,758,333 TOTAL $ 27,015,572 $ 28,800,000 $ 28,800,000 $ 28,800,000 Variance Between the Expenditure Forecasts Pension $ - $ MINEW, $ - $ Other Post Employment Benefits (OPEB) $ - $ 1,784,428 $ 1,666,095 $ (2,973,905) 3 Elementary School Project $ - $ - $ - $ - Transfer To New High School Stabilization $ - $ (783,333) $ (3,000,000) $ (3,000,000) New High School Debt Service $ - $ 783,333 $ 3,118,333 $ 7,758,333 TOTAL $ - $ 1,784,428 $ 1,784,428 $ 1,784,428 • As of January 1, 2021, the Unfunded Pension Liability is estimated to be $2,853,875. • As of July 1, 2021, the Unfunded OPEB Liability is estimated to be $70,824,000 which is projected to be fully funded in FY 2031. Building the uture Initiative Pension & OPEB 3 Elementary Schools Debt Service $ 9,808,364 $ 13,286,494 $ 12,911,268 $ 12,311,043 $ 11,942,066 $ 11,578,100 New High School Debt Service $ 783,333 $ 3,118,333 $ 7,758,333 $ 11,525,000 $ 11,300,000 Transfer To New High School Stabilization $ 3,000,000 $ 2,216,667 Pension & OPEB $ 14,207,208 $ 12,513,506 $ 12,770,399 $ 8,730,624 $ 5,332,934 $ 5,921,900 Total $ 27,015,572 $ 28,800,000 $ 28,800,000 $ 28,800,000 $ 28,800,000 $ 28,800,000 1) Fiscal Year 2023 is the projected high point for the 3 elementary schools debt service. 2) New High School Project estimated at $200,000,000 ($150,000,000 Town & $50,000,000 MSBA). 3) New High School debt service will be financed over 30 years. 4) Fiscal Year 2026 is the projected high point for the New High School debt service. • x en pure Forecast Debt and Interest Permanent Debt/Interest $ 5,910,189 $ 5,060,687 $ 4,771,056 $ 4,355,327 ESCO - Permanent Debt/Interest $ 505,938 $ 500,938 $ 494,438 $ 493,225 Three Elem. School Proj. - Permanent Debt/Interest $ 8,370,221 $ 8,155,150 $ 7,902,900 $ 7,425,65 Three Elem. School Proj. - Auth/Unissued & Planned $ 1,438,143 $ 5,131,344 $ 5,008,368 $ 4,885,393 i New High School Project - Authorized/Unissued $ 597,334 $ 576,000 $ 554,667 $ - New High School Project - Planned $ 783,333 $ 3,118,333 $ 7,758,333 Street & Sidewalk -Auth/Unissued & Planned $ 1,249,625 $ 2,186,200 $ 3,086,775 $ 3,951,350 Other Debt -Authorized/Unissued & Planned $ 1,836,069 $ 3,559,344 $ 4,862,458 $ 5,590,867 Cost of Certifying Bonds $ 5,000 $ 5,000 $ 5,000 $ 5,000 Total Expenditure $ 19,912,519 $ 25,957,996 $ 29,803,995 $ 34,465,145 Debt & Interest related to the Three Elementary Schools Project is as follows: $9,808,364 in FY2022, $13,286,494 in FY2023, $12,911,268 in FY2024 and $12,311,043 in FY2025. Planned Debt & Interest related to the New High School Project is as follows: $783,333 in FY2023, $3,118,333 in FY2024 and $7,758,333 in FY2025. • x en pure Forecast Capital Projects Town Capital $ 470,000 $ 470,000 $ 470,000 $ 470,000 School Capital Projects $ 5,362,221 $ 230,000 $ 295,000 $ 380,000 Street & Sidewalk Improvements $ 1,170,400 $ 1,228,920 $ 1,290,366 $ 1,354,884 Total Expenditure $ 7,002,621 $ 1,928,920 $ 2,055,366 $ 2,204,884 • x en pure Forecast Departmental $ 1011185,724 $ 104,307,726 $ 107,531,207 $ 110,859,596 Insurance & Employee Benefits $ 18,316,330 $ 19,610,247 $ 20,999,673 $ 22/491/723 Pension Costs $ 7,509,084 $ 1,140,525 $ 892,649 $ 886,534 OPEB $ 6,698,124 $ 11,372,981 $ 11,877,750 $ 7,844,090 Debt & Interest $ 19,912,519 $ 25,957,996 $ 29,803,995 $ 341,465,145 Capital Projects $ 7,002,621 $ 1,928,920 $ 2,055,366 $ 21204,884 State Assessments $ 3,028,130 $ 3,109,887 $ 3,193,854 $ 3,280,092 Town Council Reserve $ 2,951,147 $ 1,850,000 $ 1,850,000 $ 1,850,000 Other Financing Uses & Misc. $ 9,920,675 $ 4,345,462 $ 2,137,159 $ 2,145,774 Total Expenditure $ 176,524,354 $ 173,623,744 $ 180/341,653 $ 186/027,838 FY2022 Budget amounts include Proposed FY2022 Budget Amendment of$6,893,133. Debt & Interest related to the Three Elementary Schools Project is as follows: $9,808,364 in FY2022, $13,286,494 in FY2023, $12,911,268 in FY2024 and $12,311,043 in FY2025. Planned Debt & Interest related to the New High School Project is as follows: $783,333 in FY2023, $3,118,333 in FY2024 and $7,758,333 in FY2025 Forecast Summary Total Revenue $ 176,5241354 $ 172,612,506 $ 180,554,798 $ 188,007,653 Total Expenditures $ 176,524,354 $ 173,623,744 $ 180,341,653 $ 186,027,838 Projected Surplus/(Deficits) $ - $ (1,011,238) $ 213,145 $ 1,979,815 Prior Year Balance Budget $ - $ - $ 1,011,238 $ (213,145) Remaining Surplus/(Deficit) $ - $ (1,011,238) $ 1,224,383 $ 1,766,670 Forecast Summary 190,000,000 185,000,000 180,000,000 ■ Total Revenue 175,000,000 Total 170,000,000 Expenditures 165,000,000 160,000,000 FY2022 FY2023 FY2024 FY2025 Forecast Comparison Projected Projected FY2023 Budget FY2023 Budget Revenue: Taxes $ 138,238,009 $ 140,677,505 _1 $ 2,439,496 State Aid $ 13,481,781 $ 13,482,722 '% $ 941 Local Receipts $ 11,629,887 $ 11,629,887 $ - Other Financing Sources $ 6,822,392 $ 6,822,392 $ - Total Revenue $ 170,172,069 $ 172,612,506 $ 2,440,437 Expenditures: on Education App,upt iation $ 55,636,550 $ 55,636,550 JM - Town Depts. Approp. $ 43,219,898 $ 43,294,261 MIM 74,363 Waste Disposal $ 3,876,915 $ 3,876,915 IN - Snow & Ice Removal $ 1,500,000 $ 1,500,000 - State Assessments $ 3,059,214 $ 3,109,887 $ 50,673 Pension Costs $ 11,140,525 $ 11140,525 $ - OPEB $ 9,588,553 $ 11,372,981 $ 1,784,428 Insurance & Employee Benefits $ 19,610,247 $ 19,610,247 $ - Debt and Interest $ 25,174,663 $ 25,957,996 $ 783,333 Capital Projects $ 1,928,920 $ 1,928,920 Vs - Other Financing Uses $ 5,128,795 $ 4,345,462 $ (783,333) Town Council Reserve $ 1,850,000 $ 1,850,000 $ - Total Expenditures $ 171,714,280 $ 173,623,744 $ 1,909,464 56 Projected SurplusADeficit) $ (1,542,211) $ (1,011,238) $ 530,973 Projected Revenue: Taxes $ 133,368,298 $ 140,677,505 $ 7,309,207 State Aid $ 13,482,722 $ 13,482,722 $ - Local Receipts $ 16,123,387 $ 11,629,887 $ (4,493,500) Other Financing Sources $ 13,549,947 $ 6,822,392 $ (6,727,555) Total Revenue $ 176,524,354 $ 172,612,506 $ (3,911,848) Expenditures: Education Appropriation $ 53,755,121 $ 55,636,550 $ 1,881,429 Town Depts. Approp. $ 42,238,303 $ 43,294,261 $ 1,055,958 Waste Disposal $ 3,692,300 $ 3,876,915 $ 184,615 Snow & Ice Removal $ 1,500,000 $ 1,500,000 $ - State Assessments $ 3,028,130 $ 3,109,887 $ 81,757 Pension Costs $ 7,509,084 $ 1,140,525 $ (6,368,559) OPEB $ 6,698,124 $ 11,372,981 $ 4,674,857 Insurance & Employee Benefits $ 18,316,330 $ 19,610,247 $ 1,293,917 Debt and Interest $ 19,912,519 $ 25,957,996 $ 6,045,477 Capital Projects $ 7,002,621 $ 1,928,920 $ (5,073,701) Other Financing Uses $ 9,920,675 $ 4,345,462 $ (5,575,213) Town Council Reserve $ 2,951,147 $ 1,850,000 $ (1,106,772) Total Expenditures $ 176,524,354 $ 173,623,744 $ (2,900,610) 57 Projected Surplus/(Deficit) $ - $ (1,011,238) $ (1,011,238) FY2022 & FY2023 Budget Issues & Beyond • Building for the Future Initiative, information Technology (3) Elementary Schools' Project(within Prop 2 1/z) Fully Staffed IT Department from a Team of Two to a Team of Six. • New Cunniff Reopened October 12, 2021! Migrated Microsoft 365 &Launched Helpdesk Ticketing System. • Hosmer Students Move in Early 2022 New ADA Compliant Website Launching in November • Lowell Construction Start Early 2022 New 311 Mobile App Launching in November • Town Hall Phone Upgrade&Document Management System&Plan • High School Project(MSBA Path) Underway • Funding Within Prop 2 1/z • Schematic Design Completion -Late 2021 Capital Improvement Plan • MSBA Approval of Funding—February 2022 DPW Staging Space • Moxley—Temporary High School Nov/Dec 2022 Phillips School/Senior Center Master Plan/Feasibility Study • Construction Start June 2023 Various Building Improvements • New High School Opening 2026 Departmental Equipment • Unfunded Pension Liability&OPEB Park Improvements • Retirement System—Fully Funded July 1, 2021 Arsenal Park Phase B • OPEB Liability Funding—FY2020—FY2031 Moxley Courts Renovations&Lighting • Victory Field Phase 2 • American Rescue Plan (ARPA) Saltonstall Park Improvements • Referral to Committee on Budget&Fiscal Oversight Casey Park • Acquisition of Land for Open Space/Recreational Use Street&Sidewalk Improvements • Additional Transfers to Stabilization Fund FY2022 Loan Orders at$4.3M • Four (4) Loan Orders of$16.6M (FY2023-2026) • Community Preservation Act(CPA) Related Water-Sewer Improvements • Received Applications/Initial Funding Recommendations Mount Auburn Street Project-Design • Community Development&Planning Bond Market • Additional Funding of Inspectional Services • Upcoming Bond Sales &Maintain AAA Bond Rating • Climate and Energy Master Plan Town Council Budget Guidelines/Conceptual Recommendations • NEXUS Study for Affordable Housing Linkage Fees • New Town Manager Search Consultant • Comprehensive Plan Implementation/Update • Watertown Affordable Housing Trust Ordinance • Transportation Management Association—Shuttle Bus • Re-use of Town Buildings(Former Police Station&Former North Program Branch Library) • Community Path (Taylor—Linear) • Improve Public Shade Trees/Increase Overall Tree Canopy • Public Arts Plan—Identify Additional Funding Sources • Funding Options for Stormwater Infrastructure Improvements • Insurance and Employee Benefits/Collective Bargaining • Shared/Regionalized Services • Group Insurance Commission Renewal—June 2023 58 • Six (6) Town Unions (FY2023-2025) • Six (6) School Unions (FY2023-2025) Cunniff Elementary 'Iklll� - -- ft w. -4 IMP IF 59 1 • .ar Hosmer Elementary School twit ti. 60 Lowell E 1 61 Watertown H School ,tl Of t 0 w fi v o T �I 'r. ,�� ... ,try,-• r .. .+..ter - � -r �3 1� - M � .. <r+