HomeMy Public PortalAboutFiscal Year 2023 Preliminary Budget Overview } �1 30
4 ti
Fiscal
2023
Town of W
Preliminary Overview
October 12, 2021
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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)
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