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HomeMy Public PortalAboutFiscal Year 2022 Budget Presentation Town of Watertown Annual Budget 2021 -2022 JA- To download this presentation visit our website: www.watertown-ma.gov AGENDA • FY2021 Budget Update • FY2022 Budget Overview - Revenue and Expenditure Budgets • Revenue and Expenditure Forecast 2 FY 2021 BUDGET UPDATE ORIGINAL REVISED BUDGET BUDGET FY 2021 FY 2021 VARIANCE REVENUE: TAXES $ 122,210,655 $ 122,391,323 $ 180,668 STATE AID $ 10,565,000 $ 11,955,612 $ 1,390,612 LOCAL RECEIPTS $ 12,042,635 $ 12,042,635 $ - OTHER FINANCING SOURCES $ 7,623,710 $ 17,063,710 $ 9,440,000 TOTAL REVENUE $ 152,442,000 $ 163,453,280 $ 11,011,280 EXPENDITURES: EDUCATION APPROPRIATION $ 51,937,315 $ 51,937,315 $ - TOWN DEPTS. APPROPRIATIONS $ 39,402,806 $ 40,443,991 $ 1,041,185 WASTE DISPOSAL $ 3,388,265 $ 3,398,265 $ 10,000 SNOW & ICE $ 1,500,000 $ 1,500,000 $ - STATE ASSESSMENTS $ 2,816,632 $ 2,816,632 $ - PENSION COSTS $ 16,967,196 $ 16,967,196 $ - INSURANCE & EMPLY. BENEFITS $ 16,996,300 $ 16,996,300 $ - DEBT AND INTEREST $ 15,497,818 $ 10,028,650 $ (5,469,168) CAPITAL PROJECTS $ 1,809,600 $ 7,278,768 $ 5,469,168 OTHER FINANCING USES $ 331,068 $ 9,688,925 $ 9,357,857 TOWN COUNCIL RESERVE $ 1,795,000 $ 2,397,238 $ 602,238 TOTAL EXPENDITURES $ 152,442,000 $ 163,453,280 $ 11,011,280 PROJECTED SURPLUS/(DEFICIT) $ - $ (0) $ (0) 3 BUDGET HIGHLIGHTS (Fiscal Year 2022 Budget Message— April 27,2021 — Page 26) The following are new positions included in the Fiscal Year 2022 Budget • Deputy Town Manager • Finance & Accounting Reporting Coordinator • Information Technology Munis Database Administrator • Planner • 1/2 Clerk Community Development & Planning • 1/2 Clerk Personnel • Public Buildings Custodian • Recycling/Solid Waste Coordinator • Public Works Construction Permit Inspector • Community Outreach Librarian • Sewer Supervisor 4 BUDGET HIGHLIGHTS (Fiscal Year 2022 Budget Message—April 27,2021 — Page 27&28) The following are the highlights of the Fiscal Year 2022 Budget: • Fully Funded Retirement System as of July 1, 2021 As a result of aggressive funding of the Retirement System, whereby the Pension appropriation increased by$11,159,992 from Fiscal Year 2009 through Fiscal Year 2019, which is a 152.34% increase or an annual average increase of 15.23% over those ten fiscal years, the Town's Unfunded Pension Liability will be fully funded as of July 1, 2021. The Fiscal Year 2022 Budget includes $7,509,084 for the Pension appropriation; and that appropriation is projected to be $1,140,525 in Fiscal Year 2023. Funding Plan to Address the Unfunded (OPEB) Liability As a result of aggressive funding of the Retirement System, the Unfunded Other Post- Employment Benefits (OPEB) Liability of $115,370,918 is being addressed with the continued implementation of a Funding Plan that began in Fiscal Year 2020. The Fiscal Year 2022 Budget includes $6,698,124 for the OPEB appropriation. The Town will be having an actuarial valuation of the Post Retirement Benefit Program as of June 30, 2021. Subsequent to that valuation, the OPEB Funding Plan may be adjusted. q Funding of the Three Elementary Schools Project As a result of aggressive funding of the Retirement System, financing of the $170,000,000 for the Three Elementary Schools Project continues in Fiscal Year 2022 and all of this project is being done within the confines of Proposition 2 '/2. The Fiscal Year 2022 Budget includes $9,808,364 for debt service related to this project. Borrowing for this project is being done in phases and the remaining $50,023,109 will be borrowed in Fiscal Year 2022. (;. Acquisition of Land/Open Space Stabilization Fund As indicated earlier, one of the items included in tonight's First Reading on a Proposed Amendment to the Fiscal Year 2021 Budget is the establishment of an Acquisition of Land/Open Space Stabilization Fund; and an initial appropriation of$6,500,000 thereto. Additionally, a Transfer to this Stabilization Fund is projected at$1,500,000 annually from Fiscal Year 2022 through Fiscal Year 2025 Budgets. 5 BUDGET HIGHLIGHTS (Fiscal Year 2022 Budget Message—April 27,2021 — Page 27&28) The following are the highlights of the Fiscal Year 2022 Budget: • New High School Stabilization Fund As indicated earlier, one of the items included in tonight's First Reading on a Proposed Amendment to the Fiscal Year 2021 Budget is the establishment of a New High School Stabilization Fund; and an initial appropriation of$2,500,000 thereto. Additionally, a Transfer to this Stabilization Fund is projected at$3,000,000 annually from Fiscal Year 2022 through Fiscal Year 2025 Budgets. 0 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. On March 17, 2021, the School Building Committee (SBC) unanimously voted to support Option 1 H, a 4-story new building constructed on the existing high school site only in a single phase with the use of temporary modular high school on another site. The project team is currently continuing to review locations for this temporary modular high school and meeting with the Community. Options for both the high school and swing space have been presented since January over (6) virtual SBC meetings, and (2) virtual Community Meetings. The Project Team and the SBC plan to submit the new Preferred Schematic Report (PSR) to the MSBA on July 7, 2021 in anticipation of approval at the August 2021 Board Meeting. The PSR submission will complete the Feasibility Study Phase for the Watertown High School project, after which the project will proceed into Schematic Design. After completion of Schematic Design in December of 2021, the Town will seek approval from the MSBA at their first Board Meeting in 2022. 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 2'/2; and all of this to be done without the need to request debt exclusion financing from the taxpayers of Watertown. 6 OTHER BUDGET ISSUES • COVID-19 Pandemic & Related Budget Issues • Unfunded Pension Liability & OPEB • Three Elementary Schools Project • High School Project • Collective Bargaining • Uncertainty of Future Local Aid • Capital Improvement Program • Insurance and Employee Benefits 7 FY2022 BUDGET; 1 of 2 CURRENT PROPOSED VARIANCE FY 2021 FY 2022 FY 2022 BUDGET BUDGET TO FY2021 REVENUE: TAXES $ 122,391,323 74.88% $ 131,476,106 79.96% $ 9,084,783 STATE AID $ 11,955,612 7.31% $ 13,481,781 8.20% $ 1,526,169 LOCAL RECEIPTS $ 12,042,635 7.37% $ 11,123,387 6.76% $ (919,248) OTHER FINANCING SOURCES $ 17,063,710 10.44% $ 8,348,726 5.08% $ (8,714,984) TOTAL REVENUE $ 163,453,280 100% $ 164,430,000 100% $ 976,720 0.60% EXPENDITURES: EDUCATION APPROPRIATION $ 51,937,315 31.78% $ 53,755,121 32.69% $ 1,817,806 TOWN DEPTS. APPROPRIATIONS $ 40,443,991 24.74% $ 42,165,754 25.64% $ 1,721,763 WASTE DISPOSAL $ 3,398,265 2.08% $ 3,692,300 2.25% $ 294,035 SNOW& ICE $ 1,500,000 0.92% $ 1,500,000 0.91% $ - STATE ASSESSMENTS $ 2,816,632 1.72% $ 2,978,693 1.81% $ 162,061 PENSION COSTS $ 14,588,179 8.92% $ 7,509,084 4.57% $ (7,079,095) OPEB $ 2,379,017 1.46% $ 6,698,124 4.07% $ 4,319,107 INSURANCE & EMPLY. BENEFITS $ 16,996,300 10.40% $ 18,316,330 11.14% $ 1,320,030 DEBTAND INTEREST $ 10,028,650 6.14% $ 19,912,519 12.11% $ 9,883,869 CAPITAL PROJECTS $ 7,278,768 4.45% $ 1,801,400 1.10% $ (5,477,368) OTHER FINANCING USES $ 9,688,925 5.93% $ 4,870,675 2.96% $ (4,818,250) TOWN COUNCIL RESERVE $ 2,397,238 1.47% $ 1,230,000 0.75% $ (1,167,238) TOTAL EXPENDITURES $ 163,453,280 100% $ 164,430,000 100% $ 976,720 0.60% PROJECTED SURPLUS/(DEFICIT) $ (0) $ (0) $ (0) 8 FY2022 BUDGET; 2 of 2 PRE-OVERVIEW OCT. 2020 MANAGERS VARIANCE PROJECTED PROPOSED PROPOSED FY 2022 FY 2022 TO PROJECTED REVENUE: TAXES $ 131,476,106 82.22% $ 131,476,106 79.96% $ (0) STATE AID $ 10,565,000 6.61% $ 13,481,781 8.20% $ 2,916,781 LOCAL RECEIPTS $ 11,518,320 7.20% $ 11,123,387 6.76% $ (394,933) OTHER FINANCING SOURCES $ 6,348,268 3.97% $ 8,348,726 5.08% $ 2,000,458 TOTAL REVENUE $ 159,907,694 100% $ 164,430,000 100% $ 4,522,306 2.83% EXPENDITURES: EDUCATION APPROPRIATION $ 53,755,121 33.67% $ 53,755,121 32.69% $ - TOWN DEPTS. APPROPRIATIONS $ 40,874,752 25.60% $ 42,165,754 25.64% $ 1,291,002 WASTE DISPOSAL $ 3,557,678 2.23% $ 3,692,300 2.25% $ 134,622 SNOW & ICE $ 1,500,000 0.94% $ 1,500,000 0.91% $ - STATE ASSESSMENTS $ 2,875,427 1.80% $ 2,978,693 1.81% $ 103,266 PENSION COSTS $ 7,509,084 4.70% $ 7,509,084 4.57% $ - OPEB $ 7,752,188 4.86% $ 6,698,124 4.07% $ (1,054,064) INSURANCE & EMPLY. BENEFITS $ 18,195,153 11.40% $ 18,316,330 11.14% $ 121,177 DEBTAND INTEREST $ 19,511,601 12.22% $ 19,912,519 12.11% $ 400,918 CAPITAL PROJECTS $ 1,901,360 1.19% $ 1,801,400 1.10% $ (99,960) OTHER FINANCING USES $ 588,450 0.37% $ 4,870,675 2.96% $ 4,282,225 TOWN COUNCIL RESERVE $ 1,625,000 1.02% $ 1,230,000 0.75% $ (395,000) TOTAL EXPENDITURES $ 159,645,814 100% $ 164,430,000 100% $ 4,784,186 3.00% PROJECTED SURPLUS/(DEFICIT) $ 261,880 $ (0) $ (261,880) 9 Projected Comparison FINAL MANAGER'S VARIANCE VARIANCE AVERAGE FY 2009 PROPOSED FY22 %FY22 ANNUAL % BUDGET FY 2022 TO FY09 TO FY09 INC. OR DEC. REVENUE: TAXES $ 66,633,934 69.63% $ 131,476,106 79.96% $ 64,842,172 97.31% 7.49% STATE AID $ 12,929,784 13.51% $ 13,481,781 8.20% $ 551,997 4.27% 0.33% LOCAL RECEIPTS $ 10,728,827 11.21% $ 11,123,387 6.76% $ 394,560 3.68% 0.28% OTHER FINANCING SOURCES $ 5,400,486 5.64% $ 8,348,726 5.08% $ 2,948,240 54.59% 4.20% TOTAL REVENUE $ 95,693,031 100% $ 164,430,000 100% $ 68,736,969 71.83% EXPENDITURES: EDUCATION APPROPRIATION $ 31,846,000 33.28% $ 53,755,121 32.69% $ 21,909,121 68.80% 5.29% TOWN DEPTS.APPROPRIATIONS $ 27,526,586 28.77% $ 42,165,754 25.64% $ 14,639,168 53.18% 4.09% WASTE DISPOSAL $ 3,117,793 3.26% $ 3,692,300 2.25% $ 574,507 18.43% 1.42% SNOW& ICE $ 1,756,001 1.84% $ 1,500,000 0.91% $ (256,001) -14.58% -1.12% STATE ASSESSMENTS $ 2,087,290 2.18% $ 2,978,693 1.81% $ 891,403 42.71% 3.29% PENSION COSTS $ 7,325,580 7.66% $ 7,509,084 4.57% $ 183,504 2.50% 0.19% OPEB $ - 0.00% $ 6,698,124 4.07% $ 6,698,124 INSURANCE & EMPLY. BENEFITS $ 13,353,713 13.95% $ 18,316,330 11.14% $ 4,962,617 37.16% 2.86% DEBTAND INTEREST $ 6,345,007 6.63% $ 19,912,519 12.11% $ 13,567,512 213.83% 16.45% CAPITAL PROJECTS $ 1,220,638 1.28% $ 1,801,400 1.10% $ 580,762 47.58% 3.66% OTHER FINANCING USES $ 316,500 0.33% $ 4,870,675 2.96% $ 4,554,175 1438.92% 110.69% TOWN COUNCIL RESERVE $ 23,362 0.02% $ 1,230,000 0.75% $ 1,206,638 5164.96% 397.30% GOVERNOR'S MID YEAR 9C CUT $ 774,561 0.81% $ - 0.00% $ (774,561) -100.00% -7.69% TOTAL EXPENDITURES $ 95,693,031 100% $ 164,430,000 100% $ 68,736,969 71.83% PROJECTED SURPLUS/(DEFICIT) $ - $ (0) $ (0) 10 Fiscal Year 2022 Revenues 5.08% Real&Personal Property Taxes 6.76% State Aid 8.20% Local Receipts Other Financing Sources 79.96% 11 Revenue & Other Sources - General Fund REVISED BUDGET PROPOSED BUDGET BUDGET ITEM FY2021 FY2022 REAL & PERSONAL PROPERTY TAX $ 122,391 ,323 $ 131,476,106 $ 9,084,783 PRIOR LEVY $ 117,181 ,127 $ 123,391,323 $ 6,210,196 771 PRIOR YEAR AMENDED GROWTH $ (118,907) $9 - $ 118,907 ADD 2.5% $ 2,926,556 $ 3,084,783 $ 158,227 m NEW GROWTH $ 3,402,547 $ 6,000,000 $ 2,597,453 ADJ. LEVY LIMIT $ 123,391,323 $ 132,476,106 $ 9,084,783 OVERLAY $ (1 ,000,000) $ (1 ,000,000) $ - NET LEVY LIMIT $ 122,391,323 $ 131,476,106 $ 9,084,783 12 Revenue & Other Sources - General Fund PROPOSEDREVISED BUDGET BUDGET ITEM FY2021 FY2022 REAL & PERSONAL PROPERTY TAX $ 122,391 ,323 $ 131 ,476,106 $ 9,084,783 STATE AID $ 11 ,955,612 $ 13,481 ,781 $ 1 ,526,169 13 Revenue & Other Sources - General Fund REVISED PROPOSED BUDGET . - . REAL & PERSONAL PROPERTY TAX $ 122,391 ,323 $ 131,476,106 $ 9,084,783 STATE AID $ 11 ,955,612 $ 13,481 ,781 $ 1 ,526,169 LOCAL RECEIPTS $ 12,042,635 $ 11 ,123,387 $ (919,248) MOTOR VEHICLE EXCISE $ 3,915,000 $ 4,100,000 $ 185,000 MEALS EXCISE $ 412,500 $ 550,000 $ 137,500 HOTEL EXCISE $ 525,000 $ 525,000 $ - PENALTIES & INTEREST $ 250,000 $ 250,000 $PILOT $ 1 ,024,699 $ 81 ,948 $ (942,751) COMMERCIAL TRASH $ 15,000 $ 15,000 $ - FEES $ 3,850,000 $ 3,850,000 $ - RENTALS $ 128,841 $ 178,312 $ 49,471 DR-CEMETERY $ 95,000 $ 95,000 $ - DR-RECREATION $ 420,000 $ 420,000 $ - LICENSES & PERMITS $ 192,000 $ 192,000 $ - FINES & FORFEITS $ 610,000 $ 510,000 $ (100,000) INVESTMENT INCOME $ 500,000 $ 250,000 $ (250,000) SALE OF TOWN PROPERTY $ 5,000 $ 5,000 $ - BELMONT REIMBURSEMENT $ 74,595 $ 76,127 $ 1 ,532 GRANT/EMPLOYEE REIMBURSEMENTS $ 25,000 $ 25,000 $ - TOTAL LOCAL RECEIPTS $ 12,042,635 $ 11,123,387 $ (919,248) 14 Revenue & Other Sources - General Fund REVISED BUDGET REVISED BUDGET DPW FEES/WHITE GOODS $ 15,000 $ 15,000 TREASURER'S OTHER RECEIPTS $ 5,000 $ 5,000 COSTS _ $ 65,000 $ 65,000 POLICE INSURANCE REPORTS $ 4,000 $ 4,000 POLICE OTHER FEES $ 4,000 $ 4,000 FIRE OTHER FEES $ 60,000 $ 60,000 AMBULANCE FEES $ 1 ,150,000 $ 1 ,150,000 OTHER LICENSING BOARD FEES $ 40,000 $ 40,000 DPW OTHER FEES $ 5,000 $ 5,000 INSPECTION FEES $ 2,200,000 $ 2,200,000 TOWN CLERK FEES $ 55,000 $ 55,000 WETLANDS ORDINANCE $ 3,000 $ 3,000 LIEN CERTIFICATE FEES $ 50,000 $ 50,000 POLICE EXTRA DETAIL SURCHARGE $ 100,000 $ 100,000 REGISTRY CLEARING FEES $ 72,000 $ 72,000 ADVERTISING BUS SHELTERS $ 5,000 $ 5,000 COUNCIL ON AGING DONATIONS $ 17,000 $ 17,000 TOTAL $ 3,850,000 $ 3,850,000 15 Revenue & Other Sources - General Fund LICENSES . . . MITS REVISED BUDGET PROPOSED BUDGET LIQUOR LICENSES $ 118,000 $ 118,000 HEALTH LICENSES $ 60,000 $ 60,000 POLICE FIREARMS LICENSES $ 2,000 $ 2,000 DPW PERMITS $ 10,000 $ 10,000 CEMETERY BURIAL PERMITS $ 2,000 $ 2,000 TOTAL LICENSES & PERMITS $ 192,000 $ 192,000 16 Revenue & Other Sources - General Fund PROPOSED FORFEITSFINES & PARKING $ 450,000 $ 400,000 POLICE $ 150,000 $ 100,000 CODE ENFORCEMENT FINES $ 10,000 $ 10,000 TOTAL FINES & FORFEITS $ 610,000 $ 510,000 17 Revenue & Other Sources - General Fund REVISED PROPOSED BUDGETBUDGET BUDGET ITEM FY2021 FY2022 REAL & PERSONAL PROPERTY TAX $ 122,391,323 $ 131,476,106 $ 9,084,783 STATE AID $ 11,955,612 $ 13,481,781 $ 1,526,169 LOCAL RECEIPTS $ 12,042,635 $ 11,123,387 $ (919,248) OTHER FINANCING SOURCES $ 17,063,710 $ 8,348,726 $ (8,714,984) TRANSFER FROM SALE OF LOTS FUND $ 25,000 $ 25,000 $ - TRANSFER FROM PARKING METER FUND $ 250,000 $ 150,000 $ (100,000) TRANSFER FROM CEMETARY PERPETUAL CARE FUND $ 10,000 $ 10,000 $ - TRANSFER FROM CAPITAL PROJECT STABILIZATION FUND $ 500,000 $ 500,000 $ - TRANSFER FROM ESCO CAPITAL PROJ. STAB. FUND $ 508,388 $ 505,938 $ (2,450) TRANSFER FROM COLLECTIVE BARG. STAB. FUND $ 440,000 $ - $ (440,000) TRANSFER FROM NEW HIGH SCHOOL STAB. FUND $ - $ 597,334 $ 597,334 TRANSFER FROM WATER FUND $ 1,588,520 $ 1,553,006 $ (35,514) TRANSFER FROM SEWER FUND $ 1,491,802 $ 1,507,448 $ 15,646 UTILIZATION OF FREE CASH $ 12,250,000 $ 2,000,000 $ (10,250,000) UTILIZATION OF OVERLAY SURPLUS $ - $ 1,500,000 $ 1,500,000 TOTAL OTHER FINANCING SOURCES $ 17,063,710 $ 8,348,726 $ (8,714,984) 18 Revenue & Other Sources-General Fund-Summary PROPOSED REVISED BUDGET BUDGET BUDGET ITEM FY2021 FY2022 - . REAL & PERSONAL PROPERTY TAX $ 122,391,323 $ 131,476,106 $ 9,084,783 STATE AID $ 11 ,955,612 $ 13,481 ,781 $ 1 ,526,169 LOCAL RECEIPTS $ 12,042,635 $ 11 ,123,387 $ (919,248) OTHER FINANCING SOURCES $ 17,063,710 $ 8,348,726 $ (8,714,984) TOTAL $ 163,453,280 $ 164,430,000 $ 976,720 19 Fiscal Year 2022 Expenditures 0.91% 0.54% 1.81% 0.94 %� EDUCATION 2.09% 71a/ PUBLIC SAFETY 2.25% INSURANCE & BENEFITS PENSION &OPEB COSTS 4.6 32.6 DEBT& CAP. PROJECTS Q PUBLIC WORKS GEN.GOVERNMENT WASTE DISPOSAL LIBRARY STATE ASSESSM ENTS OTHER FINANCING USES 5 HEALTH & HUMAN SERVICES SNOW& ICE REMOVAL RECREATION 20 Fiscal Year 2022 Expenditures Public Safety FIRE EMERGENCY MANAGEMENT POLICE $11,596,756 $56,755 $10,607,923 7.05% 0.04% 6.45% EXCLUDING PUBLIC SAFETY, $142,168,566 : . 21 FY 2022 Expenditure Budget REVISED PROPOSED BUDGET ITEM BUDGET BUDGET • FY2021 FY2022 STATE & COUNTY CHARGES $ 2,816,632 $ 2,978,693 $ 162,061 OTHER FINANCING & MISC. $ 12,086,163 $ 6,100,675 $ (5,985,488) PENSION COSTS $ 14,588,179 $ 7,509,084 $ (7,079,095) OPEB $ 2,379,017 $ 6,698,124 $ 4,319,107 DEBT RETIREMENT $ 10,028,650 $ 19,912,519 $ 9,883,869 CAPITAL PROJECTS $ 7,278,768 $ 1 ,801 ,400 $ (5,477,368) INSURANCE & EMPLOYEE BENEFITS $ 16,996,300 $ 18,316,330 $ 1 ,320,030 GENERAL GOVERNMENT $ 6,846,945 $ 7,638,935 $ 791 ,990 PUBLIC SAFETY-L. $ 21 ,978,910 $ 22,261,434 $ 282,524 PUBLIC WORKS $ 5,933,548 $ 6,387,861 $ 454,313 SNOW & ICE REMOVAL $ 1 ,500,000 $ 1 ,500,000 $ - WASTE DISPOSAL $ 3,398,265 $ 3,692,300 $ 294,035 HEALTH & HUMAN SERVICES $ 1 ,565,765 $ 1 ,550,386 $ (15,379) RECREATION $ 858,532 $ 893,640 $ 35,108 LIBRARY $ 3,260,291 $ 3,433,498 $ 173,207 EDUCATION $ 51 ,937,315 $ 53,755,121 $ 1 ,817,806 TOTAL $ 163,453,280 $ 164,430,000 $ 976,720 22 Revenue Forecast — Assumptions • Real Estate and Personal Property taxes • State Aid • Local Receipts • Other Financing Sources • Utilization of Free Cash • Capital Projects Stabilization Fund • ESCO Capital Project Stabilization Fund • New High School Stabilization Fund 23 Revenue Forecast BUDGET ITEM REAL & PERSONAL PROPERTY TAX $ 122,391,323 $ 131,476,106 $ 138,238,009 $ 145,220,209 $ 152,326,964 PRIOR LEVY $ 117,181,127 $ 123,391,323 $ 132,476,106 $ 139,288,009 $ 146,270,209 PRIOR AMENDED GROWTH $ (118,907) ADD 2.5% $ 2,926,556 $ 3,084,783 $ 3,311,903 $ 3,482,200 $ 3,656,755 NEW GROWTH $ 3,402,547 $ 6,000,000 $ 3,500,000 $ 3,500,000 $ 3,500,000 ADJ. LEVY LIMIT $ 123,391,323 $ 132,476,106 $ 139,288,009 $ 146,270,209 $ 153,426,964 OVERLAY $ (1,000,000) $ (1,000,000) $ (1,050,000) $ (1,050,000) $ (1,100,000) NET LEVY LIMIT $ 122,391,323 $ 131,476,106 $ 138,238,009 $ 145,220,209 $ 152,326,964 24 Revenue Forecast BUDGET ITEM IREAL & PERSONAL PROPERTY TAX $ 122,391,323 $ 131,476,106 $ 138,238,009 $ 145,220,209 $ 152,326,964 STATE AID $ 11,955,612 $ 13,481,781 $ 13,481,781 $ 13,481,781 $ 13,481,781 25 Revenue Forecast BUDGET ITEM REAL & PERSONAL PROPERTY TAX $ 122,391,323 $ 131,476,106 $ 138,238,009 $ 145,220,209 $ 152,326,964 STATE AID $ 11,955,612 $ 13,481,781 $ 13,481,781 $ 13,481,781 $ 13,481,781 LOCAL RECEIPTS $ 12,042,635 $ 11,123,387 $ 11,629,887 $ 11,956,824 $ 12,283,792 MOTOR VEHICLE EXCISE $ 3,915,000 $ 4,100,000 $ 4,350,000 $ 4,475,000 $ 4,600,000 MEALS EXCISE $ 412,500 $ 550,000 $ 600,000 $ 650,000 $ 700,000 HOTEL EXCISE $ 525,000 $ 525,000 $ 675,000 $ 825,000 $ 975,000 PENALTIES & INTEREST $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 PILOT $ 1,024,699 $ 81,948 $ 87,088 $ 87,628 $ 88,168 COMMERCIAL TRASH $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 FEES $ 3,850,000 $ 3,850,000 $ 3,850,000 $ 3,850,000 $ 3,850,000 RENTALS $ 128,841 $ 178,312 $ 227,769 $ 227,215 $ 226,644 DR-CEMETERY $ 95,000 $ 95,000 $ 95,000 $ 95,000 $ 95,000 DR-RECREATION $ 420,000 $ 420,000 $ 420,000 $ 420,000 $ 420,000 LICENSES & PERMITS $ 192,000 $ 192,000 $ 192,000 $ 192,000 $ 192,000 FINES & FORFEITS $ 610,000 $ 510,000 $ 510,000 $ 510,000 $ 510,000 INVESTMENT INCOME $ 500,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 SALE OF TOWN PROPERTY $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 BELMONT REIMBURSEMENT $ 74,595 $ 76,127 $ 78,030 $ 79,981 $ 81,980 GRANT/EMPLOYEE REIMBURSEMENTS $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 TOTAL LOCAL RECEIPTS $ 12,042,635 $ 11,123,387 $ 11,629,887 $ 11,956,824 $ 12,283,792 26 ll Revenue Forecast BUDGET ITEM REAL & PERSONAL PROPERTY TAX $ 122,391,323 $ 131,476,106 $ 138,238,009 $ 145,220,209 $ 152,326,964 STATE AID $ 11,955,612 $ 13,481,781 $ 13,481,781 $ 13,481,781 $ 13,481,781 LOCAL RECEIPTS $ 12,042,635 $ 11,123,387 $ 11,629,887 $ 11,956,824 $ 12,283,792 OTHER FINANCING SOURCES $ 17,063,710 $ 8,348,726 $ 6,822,392 $ 6,894,559 $ 6,338,679 TRANSFERS FROM FOLLOWING FUNDS: TRANSFER FROM SALE OF LOTS FUND $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 TRANSFER FROM PARKING METER FUND $ 250,000 $ 150,000 $ 150,000 $ 250,000 $ 250,000 TRANSFER FROM CEMETERY PERPETUAL CARE FUND $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 TRANSFER FROM CAPITAL PROJECTS STAB. FUND $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 TRANSFER FROM COLLECTIVE BARGAINING STAB. FUND $ 440,000 $ - $ - $ - $ - TRANSFER FROM ESCO CAPITAL PROJECT STAB. FUND $ 508,388 $ 505,938 $ 500,938 $ 494,438 $ 493,225 TRANSFER FROM NEW HIGH SCHOOL STAB. FUND $ - $ 597,334 $ 576,000 $ 554,667 $ - TRANSFER FROM WATER FUND $ 1,588,520 $ 1,553,006 $ 1,553,006 $ 1,553,006 $ 1,553,006 TRANSFER FROM SEWER FUND $ 1,491,802 $ 1,507,448 $ 1,507,448 $ 1,507,448 $ 1,507,448 UTILIZATION OF FREE CASH $ 12,250,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 UTILIZATION OF OVERLAY SURPLUS $ - $ 1,500,000 $ - $ - $ - TOTAL OTHER FINANCING SOURCES $ 17,063,710 $ 8,348,726 $ 6,822,392 $ 6,894,559 $ 6,338,679 27 DETAIL OF UTILIZATION OF FREE CASH & OVERLAY SURPLUS UTILIZATION OF FREE CASH -ANNUAL $ 2,000,000 $ 2,000,000 $2,000,000 $1,750,000 $ 1,750,000 $ 1,750,000 UTILIZATION OF FREE CASH - COVID 19 - LOSS REVENUE $ 1,250,000 UTILIZATION OF FREE CASH -ACQ. LAND/OPEN SPACE STAB. $ 6,500,000 UTILIZATION OF FREE CASH - NEW HIGH SCHOOL STAB. $ 2,500,000 UTILIZATION OF FREE CASH - SPED STABILIZATION $ 250,000 $ 250,000 $ 250,000 UTILIZATION OF OVERLAY SURPLUS $1,500,000 TOTAL: $ 2,000,000 $ 12,250,000 $3,500,000 $2,000,000 $ 2,000,000 $ 2,000,000 28 Revenue Forecast - Summary BUDGET ITEM REAL & PERSONAL PROPERTY TAX $ 122,391,323 $ 131,476,106 $ 138,238,009 $ 145,220,209 $ 152,326,964 STATE AID $ 11,955,612 $ 13,481,781 $ 13,481,781 $ 13,481,781 $ 13,481,781 LOCAL RECEIPTS $ 12,042,635 $ 11,123,387 $ 11,629,887 $ 11,956,824 $ 12,283,792 OTHER FINANCING SOURCES $ 17,063,710 $ 8,348,726 $ 6,822,392 $ 6,894,559 $ 6,338,679 TOTAL $ 163,453,280 $ 164,430,000 $ 170,172,069 $ 177,553,373 $ 184,431,216 29 Expenditure Forecast - Assumptions Departmental Expenditures • Education Appropriation • Snow and Ice Removal Waste Disposal State Assessments Insurance and Employee Benefits Pension Costs Other Post-Employment Benefits (OPEB) Three Elementary Schools Building Project Debt Special Education Stabilization Fund • Acquisition of Land/Open Space Stabilization Fund New High School Stabilization Fund 30 Expenditure Forecast BUDGET ITEM DEPARTMENTAL EXPENDITURES $ 97,279,571 $ 101,113,175 $ 104,233,363 $ 107,454,985 $ 110,781,469 GENERAL GOVERNMENT $ 6,846,945 $ 7,638,935 $ 7,829,908 $ 8,025,656 $ 8,226,297 PUBLIC SAFETY $ 21,978,910 $ 22,261,434 $ 22,817,970 $ 23,388,419 $ 23,973,130 PUBLIC WORKS $ 5,933,548 $ 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 $ 1,500,000 WASTE DISPOSAL $ 3,398,265 $ 3,692,300 $ 3,876,915 $ 4,070,761 $ 4,274,299 HEALTH & HUMAN SERVICES $ 1,565,765 $ 1,550,386 $ 1,589,146 $ 1,628,874 $ 1,669,596 LIBRARY $ 3,260,291 $ 3,433,498 $ 3,519,335 $ 3,607,319 $ 3,697,502 RECREATION $ 858,532 $ 893,640 $ 915,981 $ 938,881 $ 962,353 EDUCATION $ 51,937,315 $ 53,755,121 $ 55,636,550 $ 57,583,829 $ 59,599,264 TOTALS $ 97,279,571 $ 101,113,175 $ 104,233,363 $ 107,454,985 $ 110,781,469 31 Expenditure Forecast DEPARTMENTAL EXPENDITURES $ 97,279,571 $ 101,113,175 $ 104,233,363 $ 107,454,985 $ 110,781,469 STATE ASSESSMENTS $ 2,816,632 $ 2,978,693 $ 3,059,214 $ 3,141,915 $ 3,226,854 PENSION & OPEB COSTS $ 16,967,196 $ 14,207,208 $ 10,729,078 $ 11,104,304 $ 11,704,529 PENSION COSTS $ 14,588,179 $ 7,509,084 $ 1,140,525 $ 892,649 $ 886,534 OTHER POST EMPLOYMENT BENEFITS $ 2,379,017 $ 6,698,124 $ 9,588,553 $ 10,211,655 $ 10,817,995 TOTAL PENSION & OPEB COSTS $ 16,967,196 $ 14,207,208 $ 10,729,078 $ 11,104,304 $ 11,704,529 DEBT & INTEREST $ 10,028,650 $ 19,912,519 $ 25,174,663 $ 26,685,662 $ 26,706,812 PERMANENT DEBT/INTEREST $ 5,763,312 $ 5,910,189 $ 5,060,687 $ 4,771,056 $ 4,355,327 ESCO - PERMANENT DEBT/INTEREST $ 508,388 $ 505,938 $ 500,938 $ 494,438 $ 493,225 THREE ELEM. SCHOOL PROJ. - PERMANENT DEBT/INTEREST $ 1,143,938 $ 8,370,221 $ 8,155,150 $ 7,902,900 $ 7,425,650 THREE ELEM. SCHOOL PROJ. -AUTH/UNISSUED & PLANNED $ 689,438 $ 1,438,143 $ 5,131,344 $ 5,008,368 $ 4,885,393 NEW HIGH SCHOOL PROJECT -AUTHORIZED/UNISSUED $ - $ 597,334 $ 576,000 $ 554,667 $ - STREET & SIDEWALK- AUTH/UNISSUED & PLANNED $ 1,350,227 $ 1,249,625 $ 2,186,200 $ 3,086,775 $ 3,951,350 OTHER DEBT- AUTHORIZED/UNISSUED & PLANNED $ 568,347 $ 1,836,069 $ 3,559,344 $ 4,862,458 $ 5,590,867 COST OF CERTIFYING BONDS $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 TOTAL DEBT & INTEREST $ 10,028,650 $ 19,912,519 $ 25,174,663 $ 26,685,662 $ 26,706,812 32 h Expenditure Forecast PENSION COSTS $ 14,588,179 $ 7,509,084 $ 1,140,525 $ 892,649 $ 886,534 OTHER POST EMPLOYMENT BENEFITS $ 2,379,017 $ 6,698,124 $ 9,588,553 $ 10,211,655 $ 10,817,995 THREE ELEM. SCHOOL PROJ. - PERMANENT DEBT/INTEREST $ 1,143,938 $ 8,370,221 $ 8,155,150 $ 7,902,900 $ 7,425,650 THREE ELEM. SCHOOL PROJ. -AUTH/UNISSUED & PLANNED $ 689,438 $ 1,438,143 $ 5,131,344 $ 5,008,368 $ 4,885,393 NEW HIGH SCHOOL PROJECT -AUTHORIZED/UNISSUED $ - $ 597,334 $ 576,000 $ 554,667 $ - TOTAL DEBT & INTEREST $ 18,800,572 $ 24,612,906 $ 24,591,572 $ 24,570,239 $ 24,015,572 33 Expenditure Forecast BUDGET ITEM DEPARTMENTAL EXPENDITURES $ 97,279,571 $ 101,113,175 $ 104,233,363 $ 107,454,985 $ 110,781,469 STATE ASSESSMENTS $ 2,816,632 $ 2,978,693 $ 3,059,214 $ 3,141,915 $ 3,226,854 PENSION & OPEB COSTS $ 16,967,196 $ 14,207,208 $ 10,729,078 $ 11,104,304 $ 11,704,529 INSURANCE & EMPLOYEE BENEFITS $ 16,996,300 $ 18,316,330 $ 19,610,247 $ 20,999,673 $ 22,491,723 DEBT & INTEREST $ 10,028,650 $ 19,912,519 $ 25,174,663 $ 26,685,662 $ 26,706,812 CAPITAL PROJECTS $ 7,278,768 $ 1,801,400 $ 1,928,920 $ 2,055,366 $ 2,204,884 TOWN CAPITAL PROJECTS $ 1,065,168 $ 470,000 $ 470,000 $ 470,000 $ 470,000 SCHOOL CAPITAL PROJECTS $ 5,099,000 $ 161,000 $ 230,000 $ 295,000 $ 380,000 STREET & SIDEWALK IMPROVEMENTS $ 1,114,600 $ 1,170,400 $ 1,228,920 $ 1,290,366 $ 1,354,884 TOTAL CAPITAL PROJECTS $ 7,278,768 $ 1,801,400 $ 1,928,920 $ 2,055,366 $ 2,204,884 34 Expenditure Forecast BUDGET ITEM DEPARTMENTAL EXPENDITURES $ 97,279,571 $ 101,113,175 $ 104,233,363 $ 107,454,985 $ 110,781,469 STATE ASSESSMENTS $ 2,816,632 $ 2,978,693 $ 3,059,214 $ 3,141,915 $ 3,226,854 PENSION COSTS I m $ 16,967,196 $ 14,207,208 $ 10,729,078 $ 11,104,304 $ 11,704,529 INSURANCE & EMPLOYEE BENEFITS $ 16,996,300 $ 18,316,330 $ 19,610,247 $ 20,999,673 $ 22,491,723 DEBT & INTEREST $ 10,028,650 $ 19,912,519 $ 25,174,663 $ 26,685,662 $ 26,706,812 CAPITAL PROJECTS $ 7,278,768 $ 1,801,400 $ 1,928,920 $ 2,055,366 $ 2,204,884 OTHER FINANCING USES $ 12,086,163 $ 6,100,675 $ 6,978,795 $ 6,987,159 $ 6,995,774 TOWN COUNCIL RESERVE $ 2,397,238 $ 1,230,000 $ 1,850,000 $ 1,850,000 $ 1,850,000 TRANSFERS TO ENTERPRISE FUNDS $ 246,068 $ 270,675 $ 278,795 $ 287,159 $ 295,774 TRANSFER TO ACQUISITION LAND/OPEN SP. STABILIZATION $ 6,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 TRANSFER TO NEW HIGH SCHOOL STABILIZATION FUND $ 2,500,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 TRANSFER TO SPED STABILIZATION FUND $ - $ - $ 250,000 $ 250,000 $ 250,000 MISCELLANEOUS $ 442,857 $ 100,000 $ 100,000 $ 100,000 $ 100,000 TOTAL OTHER FINANCING USES $ 12,086,163 $ 6,100,675 $ 6,978,795 $ 6,987,159 $ 6,995,774 TOTAL EXPENDITURES • 35 Expenditure Forecast Summary EXPENDITURES $ 163,453,280 $ 164,430,000 $ 171,714,280 $ 178,429,064 $ 184,112,045 REVENUES $ 163,453,280 $ 164,430,000 $ 170,172,069 $ 177,553,373 $ 184,431,216 SURPLUS/DEFICIT $ (0) $ (0) $ (1,542,211) $ (875,691) $ 319,171 PRIOR YEAR BALANCED BUDGET ASSUMPTION $ 0 $ 0 $ 1,542,211 $ 875,691 REMAINING SURPLUS/DEFICIT $ (0) $ (0) $ (1,542,211) $ 666,520 $ 1,194,862 36 The Town of Watertown The Town Seal designed by Charles Brigham, architect The origin of the Town seal: In 1919, architect Charles Brigham designed the town seal from an account from the 1630 diary of early American explorer Roger Clap. Fred Milmore, local heraldic artist, gave the seal its official heraldic colors in 1965 and designed the official town flag which hangs in the Town Hall. 1 oM_'p— CE GO 37