HomeMy Public PortalAboutFiscal Year 2021 Preliminary Budget Overview r.
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'loe iE A Fiscal
2021
Town of W
Preliminary Overview
October 8, 2019
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Table of C
w Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...............pgs. 3-7
w Expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....pgs. 8-11
w Unreserved Fund Balance. . . . . . . . ... . . . . . ....pg. 12
wDebt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . .pgs. 15-16
w Enterprise Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . ....pgs. 17-18
w Fund Balances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pgs. 19-24
w FY2021 Forecast. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..pgs. 29-52
w Comparisons FY2020/FY2021 . . . . . . . . . ... . . .pgs. 53-54
w Budget Issues. . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . .pgs. 55
Revenue and O Sources
General
Revenue and Other Sources FY2018 FY2018 FY2019 FY2019 FY2020
Budget Actual Budget Actual Budget
Real & Personal Property Tax $ 100,290,991 $ 100,557,814 $ 108,548,765 $ 108,648,032 $ 116,043,512
State Aid $ 12,738,266 $ 12,731,651 $ 12,321,277 $ 12,335,662 $ 13,205,612
Total $ 113,029,257 $ 113,289,465 $ 120,870,042 $ 120,983,694 $ 129,249,124
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of $2,091 ,194.
Local Receipts - Detail
Budget Actual Budget Actual Budget
Motor Vehicle $ 4,100,000 $ 4,552,085 $ 4,200,000 $ 4,715,595 $ 4,350,000
Meals Excise $ 520,000 $ 550,186 $ 535,000 $ 596,709 $ 550,000
Hotel and Other Excise $ 545,000 $ 707,424 $ 600,000 $ 728,787 $ 700,000
Penalties & Interest $ 250,000 $ 248,848 $ 250,000 $ 242,614 $ 250,000
PILOT $ 968,405 $ 920,788 $ 994,240 $ 982,989 $ 977,236
COMM. Trash $ 15,000 $ 24,724 $ 15,000 $ 23,631 $ 15,000
Fees $ 3,644,000 $ 4,180,785 $ 3,808,000 $ 5,146,266 $ 4,100,000
Rentals $ 1271202 $ 119,761 $ 129,860 $ 159,169 $ 129,358
Cemetery $ 95,000 $ 115,550 $ 95,000 $ 104,854 $ 95,000
Recreation $ 445,000 $ 445,314 $ 420,000 $ 427,831 $ 420,000
License & Permits $ 205,000 $ 203,379 $ 205,000 $ 221,680 $ 192,000
Fines & Forfeits $ 755,000 $ 583,593 $ 705,000 $ 626,412 $ 705,000
Investment Income $ 225,000 $ 527,793 $ 350,000 $ 1,162,618 $ 500,000
Sale of Town Prop. $ 5,000 $ - $ 5,000 $ 15,813 $ 5,000
Belmont Reimb. $ 71,000 $ 104,094 $ 71,543 $ 62,091 $ 73,090
Grant/Employee Reimb. $ 25,000 $ 114,573 $ 25,000 $ 21,405 $ 25,000
Medicaid $ 440,000 $ 413,032 $ 420,000 $ 148,160 $ 320,000
Miscellaneous' $ 181,223 $ 136,693
Total $ 121435,607 $ 13,993,152 $ 12,828,643 $ 15,523,317 $ 13,406,684
Revenue and O Sources
Source Transfer from: Budget Actual Budget Actual Budget
Sale of Lots $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 25,000
Parking Meter $ 536,000 $ 536,000 $ 350,000 $ 350,000 $ 350,000
Cemetery Perpetual Care $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000
Capital Proj. Stab. Fund $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000
Unfunded Pension Liab. Stab. Fund $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ -
ESCO Capital Project Stab. Fund $ 522,738 $ 522,738 $ 517,238 $ 517,238 $ 515,688
Utilization Of Overlay Surplus $ 500,000 $ 500,000
Free Cash $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000
Collective Bargaining Stabilization $ 98,503 $ 98,503 $ 621,500
Sale of Property Fund $ 1,200,000 $ 1,200,000 1
Water Fund $ 1,689,103 $ 1,689,103 $ 1,648,500 $ 1,648,500 $ 1,631,808 '
Sewer Fund $ 1,458,212 $ 1,458,212 $ 1,524,642 $ 1,524,642 $ 1,534,390
Total $ 7,089,556 $ 7,089,556 $ 8,525,380 $ 8,525,380 $ 7,193,386
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of $2,091 ,194.
Revenue Summary
(Page of
Budget Actual Budget Actual Budget
Property Tax $ 100,290,991 $ 100,557,814 $ 108,548,765 $ 108,648,032 $ 116,043,512
State Aid $ 12,738,266 $ 12,731,651 $ 12,321,277 $ 12,335,662 $ 13,205,612
Local Receipts $ 12,435,607 $ 13,993,152 $ 12,828,643 $ 15,523,317 $ 13,406,684
Other Sources $ 7,089,556 $ 7,089,556 $ 8,525,380 $ 8,525,380 $ 7,193,386
Total Revenue $ 132,554,420 $ 134,372,173 $ 142,2241065 $145,032,391 $ 149,849,194
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of $2,091 ,194.
Revenue Summary
(Page of
BudgetBudget
Property Tax
$ 108,548,765 $ 108,648,032 $ 99,267 $ 116,043,512
State Aid
$ 12,321,277 $ 12,335,662 $ 14,385 $ 13,205,612
Local Receipts
$ 12,828,643 $ 15,523,317 $ 2,694,674 $ 13,406,684
Other Sources
$ 8,525,380 $ 8,525,380 $ - $ 7,193,386
Total Revenue
$ 142/224,065 $145,032,391 $ 2,808,326 $ 149/849,194
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of $2,091 ,194.
Expenditures
Budget Actual Budget Actual Budget
General Government $ 5,440,828 $ 5,056,879 $ 6,449,638 $ 5,399,633 $ 9,384,791
Public Safety $ 19,331,384 $ 18,931,033 $ 20,523,360 $ 20,234,770 $ 21,204,729
Public Works $ 5,281,335 $ 5,025,005 $ 5,494,265 $ 5,126,617 $ 5,719,616
Snow & Ice $ 1,874,736 $ 1,868,425 $ 1,564,810 $ 1,561,351 $ 1,500,000
Waste Disposal $ 3,013,658 $ 3,000,615 $ 3,099,162 $ 3,063,162 $ 3,187,237
Health & Human Services $ 1,381,824 $ 1,324,809 $ 1,465,182 $ 1,383,573 $ 1,484,716
Library $ 2,910,222 $ 2,854,293 $ 3,015,639 $ 2,965,566 $ 3,151,808
Recreation Department $ 3511437 $ 327,927 $ 356,746 $ 355,684 $ 3611274
Skating Arena $ 3981094 $ 373,629 $ 407,153 $ 347,732 $ 458,214
Education $ 45,551,858 $ 45,502,111 $ 48,039,451 $ 48,039,451 $ 50,441,424
Total Departmental $ 85,535,376 $ 84,264,726 $ 90f415f4O6 $ 88,477,540 $ 96,893,809
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of $2,091 ,194.
General Government FY2020 budget amount includes Town Council Reserve of $3,251 ,203.
Expenditures
Budget Actual Budget Actual Budget
Debt Retirement $ 8,464,158 $ 8,411,769 $ 6,175,796 $ 6,172,142 $ 9,844,794
School Capital Projects $ 667,296 $ 667,296 $ 720,000 $ 720,000 $ 488,500
Town Capital Projects $ 1,621,458 $ 1,621,458 $ 5,039,059 $ 5,039,059 $ 1,750,803
Total Debt Svc. & Cap. Proj. $ 10,752,912 $ 10,700,523 $ 11f934f855 $ 11f931f201 $ 12f084,097
Expenditures
(Page of
Budget Budget . . .
Total Departmental $ 85,535,376 $ 84,264,726 $ 90,415,406 $ 88,477,540 $ 96,893,809
Total Debt Svc. & Cap. Proj. $ 10,752,912 $ 10,700,523 $ 11,934,855 $ 11,931,201 $ 12,084,097
State & County Charges
$ 2,650,379 $ 2,650,171 $ 2,613,656 $ 2,661,170 $ 2,717,478
Retirement
$ 16,939,961 $ 16,935,674 $ 18,485,572 $ 18,479,199 $ 21,196,816
Insurance & Employee Benefits
$ 14,771,601 $ 14,622,561 $ 15,254,735 $ 14,672,867 $ 16,072,026
Other Financing Uses
$ 1,904,191 $ 1,884,166 $ 3,519,841 $ 3,504,166 $ 884,968
Grand Total
$132,554,420 $131,057,820 $142,224,065 $139,726,142 $149,849,194
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of $2,091 ,194.
Expenditures
(Page of
Budget ActualBudget
General Government $ 6,449,638 $ 5,399,633 $ 1,050,005 $ 9,384,791
Public Safety $ 20,523,360 $ 20,234,770 $ 288,590 $ 21,204,729
Public Works $ 5,494,265 $ 5,126,617 $ 367,648 $ 5,719,616
Snow & Ice $ 1,564,810 $ 1,561,351 $ 3,459 $ 1,500,000
Waste Disposal $ 3,099,162 $ 3,063,162 $ 36,000 $ 3,187,237
Health & Human Services $ 1,465,182 $ 1,383,573 $ 81,609 $ 1,484,716
Library $ 3,015,639 $ 2,965,566 $ 50,073 $ 3,151,808
Recreation Department $ 356,746 $ 355,684 $ 1,062 $ 361,274
Skating Arena $ 407,153 $ 347,732 $ 59,421 $ 458,214
Education $ 48,039,451 $ 48,039,451 $ - $ 50,441,424
Total Departmental $ 90,415,406 $ 88,477,540 $ 1,937,866 $ 96,893,809
Total Debt Svc. & Cap. Proj. $ 11,934,855 $ 11,931,201 $ 3,654 $ 12,084,097
State & County Charges $ 2,613,656 $ 2,661,170 $ (47,514) $ 2,717,478
Retirement $ 18,485,572 $ 18,479,199 $ 6,373 $ 21,196,816
Insurance & Employee Benefits $ 15,254,735 $ 14,672,867 $ 581,868 $ 16,072,026
Other Financing Uses $ 3,519,841 $ 3,504,166 $ 15,675 $ 884,968
Grand Total $ 142,224,065 $ 139,726,142 $ 2,497,923 $ 149,849,194
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of $2,091 ,194. 1 1
General Government FY2020 budget amount includes Town Council Reserve of
$3,251 ,203.
Unreserved
Certified Free Cash Analysis
Unreserved Fund
Balance
Beginning of Fiscal Year $ 12,377,000 $ 13,026,000 $ 15,481,000 $ 15,383,922 $ 16,374,245
Revenues Over/(Under)
Budget $ 2,281,000 $ 2,847,000 $ 1,447,042 $ 1,817,753 $ 2,808,326
Expenditures
(Over)/Under Budget $ 763,000 $ 1,782,000 $ 1,452,225 $ 1,496,600 $ 2,497,923
Use of Free Cash
$ (3,000,000) $ (2,000,000) $ (3,438,894) $ (2,000,000) $ (2,000,000)
GAAP Adjustments
$ 605,000 $ (174,000) $ 442,549 $ (324,030) $ (500,000)
Unreserved Fund
Balance
End of Fiscal Year $ 13,026,000 $ 15,481,000 $ 15,383,922 $ 16,374,245 $ 19,180,494
Certified Free Cash
$ 8,366,733 $ 12,326,092 $ 11,451,127 $ 12,978,697 $ 17,000,000
FY2019 amounts are subject to classification changes via audit.
FY2019 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 2020 Budget Message
The five year Capital Improvement Program (CIP) is included within the FY2020 Budget.
The Fiscal Year 2020-2024 General Fund CIP totals $503,096,500, which represents an increase of$54,385,200 from the
Fiscal Year 2019-2023 CIP. Potential renovation/reconstruction of school facilities totaling $327,000,000 is included as a
subcategory in the Fiscal Year 2020-2024 Capital Improvement Program, which is an increase of $43,300,000 from the
Fiscal Year 2019-2023 CIP. 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 $170,000,000
• High School Project $157,000,000
TOTAL: $327,000,000
The bonding requirement for the Fiscal Year 2020-2024 CIP is $224,881,900 and the Street and Sidewalk bonds of
$58,235,800 listed in Fiscal Year 2024 are not included in the bonding requirement.
The funding source of$11,650,000 of the CIP has not been determined. The following are the projects/items with the
funding source to be determined (TBD).
• Watertown Square Structured Parking $ 5,000,000
• Former Police Facility Renovation/Reuse $ 4,800,000
• Former North Branch Renovation/Reuse $ 1,100,000
• Multi-Service Center Renovation $ 500,000
• Information Technology Improvements $ 250,000
TOTAL: $11,650,000
The Fiscal Year 2020-2024 Water /Sewer Enterprise Funds CIP totals $25,670,000. Stormwater Infrastructure
Improvements of $36,000,000 with a funding source to be determined (TBD) are included within the 2020-2024
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 Debt
Balances FY 020 Balances
6/30/19 Bond Payments 6/30/20
FY 2007 Bond Issue $ 200,000 $ 100,000 $ 100,000
FY 2008 Bond Issue $ 5,000,000 $ 500,000 $ 4,500,000
FY 2010 Bond Issue $ 2,645,000 $ 270,000 $ 2,375,000
FY 2012 Bond Issue $ 1,210,000 $ 195,000 $ 1,015,000
FY 2013 Bond Issue $ 4,375,000 $ 260,000 $ 41115,000
FY 2014 Bond Issue $ 1,925,000 $ 215,000 $ 1,710,000
FY 2014 Refunding Bond Issue $ 41,160,000 $ 770,000 $ 3,390,000
FY 2016 Bond Issue $ 1,895,000 $ 1,155,000 $ 740,000
FY 2018 Bond Issue $ 5,730,000 $ 1,360,000 $ 4,370,000
FY 2019 Bond Issue $ 4,514,500 $ 719,500 $ 3,795,000
TOTAL $ 31/654,500 $ 5,544,500 $ 26,110,000
Reflects existing bonds issued for general fund purposes as of June 30, 2019. 0% interest MWRA Loans and
bonds issued for water and sewer projects are not included.
General Summary
Date of BANs
DescriptionLoan '
Maturing
• d• 1
Vote
Total Permanent General Fund Debt $ 26,110,000
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 Plans Design $ 12,441,016 $ 10,400,000
9/10/2019 3 Elementary School Projects OPM Services $ 4,080,875
9/10/2019 Street and Sidewalk Work and Duct or Conduit Improvements $ 2,500,000
9/10/2019 Equipment - Ladder Truck $ 1,100,000
Subtotal Authorized Unissued Debt: $ 21,721,891 $ 12,000,000
Total Permanent & Short Term And Authorized Un-issued Debt $ 47,831,891
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 $ 10,297,121 $ 8,993,833 $ 10,792,020
MUNICIPAL CHARGES $ 95,434 $ 95,434 $ 98,604
INTEREST AND PENALTY CHARGES $ 40,000 $ 55,550 $ 40,000
SEWER LIENS $ 444,656
OTHER UTILITY CHARGES $ - $ 960 $ -
USE OF RETAINED EARNINGS $ 250,000 $ 250,000 $ -
INTEREST INCOME $ 15,000 $ 19,932 $ 15,000
TOTAL REVENUE $ 10,697,555 $ 9,860,365 $ 10,945,624
EXPENDITURE & OTHER USES:
PERSONNEL SERVICES $ 531,237 $ 458,509 $ 547,413
SUPPLIES AND SERVICES $ 481,000 $ 456,850 $ 481,000
MWRA ASSESSMENT $ 6,415,582 $ 6,357,733 $ 6,735,163
CAPTIAL OUTLAY $ 1,055,000 $ 1,052,916 $ 1,055,000
TRANSFER TO GENERAL FUND $ 1,524,642 $ 1,524,642 $ 1,534,390
TRANSFER TO CAP. PROJECT/SEWER $ 250,000 $ 250,000 $ -
DEBT SERVICE $ 440,094 $ 366,194 $ 592,658
TOTAL EXPENDITURES $ 10,697,555 $ 10,466,845 $ 10,945,624
17
Water Enterprise Fund
BUDGET ACTUAL BUDGET
REVENUE & OTHER SOURCES:
USAGE CHARGES $ 7,324,295 $ 6,448,702 $ 7,570,278
MUNICIPAL CHARGES $ 204,859 $ 204,859 $ 195,000
INTEREST AND PENALTY CHARGES $ 40,000 $ 48,088 $ 40,000
WATER LIENS $ 276,192
OTHER UTILITY CHARGES $ 30,000 $ 75,281 $ 30,000
TEST CHARGES $ 50,000 $ 68,884 $ 50,000
USE OF RETAINED EARNINGS $ 250,000 $ 250,000 $ 500,000
SALE OF PROPERTY $ 11,510
INTEREST INCOME $ 10,000 $ 13,626 $ 10,000
TOTAL REVENUE $ 7,909,154 $ 7,397,142 $ 8,395,278
EXPENDITURE & OTHER USES:
PERSONNEL SERVICES $ 984,391 $ 922,855 $ 996,419
SUPPLIES AND SERVICES $ 380,100 $ 316,766 $ 390,100
MWRA ASSESSMENT $ 3,723,198 $ 3,696,371 $ 3,899,172
CAPITAL OUTLAY $ 236,000 $ 235,417 $ 236,000
TRANSFER TO GENERAL FUND $ 1,648,500 $ 1,648,500 $ 1,631,808
TRANSFER TO CAP. PROJECT/WATER $ 250,000 $ 250,000 $ 500,000
DEBT SERVICE $ 686,965 $ 604,715 $ 741,779
TOTAL EXPENDITURES $ 7,909,154 $ 7,674,624 $ 8,395,278
18
Water & Sewer Prior Year Funds
Balances as of July 1, 2019
DescriptionAccount
Carryover
Water:
Improvements $ 407,449
Water Materials & Supplies $ 175,054
Street Repair Services $ 124,845
Sidewalk Repair Services $ 45,067
Replacement Of Equipment $ 40,356
Contracted Services $ 12,097
Printing & Forms $ 7,752
Total Water Prior Year $ 812,620
Sewer:
Improvements $ 2,137,884
Additional Equipment $ 628,675
Contracted Services $ 184,416
Replacement Of Equipment $ 154,000
Sewer Materials & Supplies $ 96,346
Rental Of Equipment $ 70,000
Street Repair Services $ 59,800
Sidewalk Repair Services $ 35,000
Total Sewer Prior Year $ 3,3661121
Overlay Accounts
Balances as of June 30, 2019
Fiscal Year
2005 — 2012 $ 257,371
2013 $ 84,949
2014 $ 215,348
2015 $ 499,621
2016 $ 329,312
2017 $ 245,519
2018 $ 455,632
2019 $ 441,032
$ 21528,784
Special Accounts
Balances as of June 30, 2019
Fund Description Fund Balance
FY 19 CIRCUIT BREAKER $ 1,504,905
O'NEILL PROPERTY CHARITABLE $ 11203,648
PRE-KINDERGARTEN REVOLVING $ 438,510
INTERGRATED PRE-SCHOOL REVOLVING $ 399,555
ATHLETICS REVOLVING FUND $ 396,978
PARKING METER FUND ** $ 393,763
COMMUNITY DEV, BLOCK GRANT $ 388,418
SALE OF CEMETERY LOTS ** $ 287,000
LOWELL SCHOOL EXTENDED DAY $ 2741752
AFFORDABLE HOUSING DEV $ 269,269
HOSMER SCHOOL EXTENDED DAY $ 223,369
SCHOOL LUNCH PROGRAM $ 217,000
Top Twelve Total $ 5/997167
All Others (112) $ 2 174 195
Total Special Revenue (124) $ 8/171,362
* Includes amounts to be transferred for FY2020 Budget.
CommunityPreservation Act (CPA
Balances as of June 30, 2019
Account Description Account Balance
FY 2018 Reserve for Open Space/Recreation $150,000
FY 2019 Reserve for Open Space/Recreation $236,739
Total Reserve Open Space/Recreation $386,739
FY 2018 Reserve for Historic Preservation $150,000
FY 2019 Reserve for Historic Preservation $236,739
Total Reserve for Historic Preservation $386,739
FY 2018 Reserve for Community Housing $150,000
FY 2019 Reserve for Community Housing $236,739
Total Reserve for Community Housing $386,739
Undesignated Fund Balance $3,201,838
Total: $4,362,055
Capital ProJects Accounts
Balances as of June 30, 2019
Fund Description . Balance
Three Elementary Schools Project $ 1,700,000
Greystar Capital Mitigation $ 1,450,000
WHS Project $ 1/256,074
MWRA I And I Grant/Loan Order FY 20 $ 1,050,000
MWRA I And I Grant/Loan Order FY 19 $ 1,050,000
FY 19 Street And Sidewalk $ 1,011,000
DPW Equipment $ 965,423
FY 18 Street And Sidewalk $ 962,856
DPW Equipment $ 858,012
FY 18 Street And Sidewalk Loan Order $ 531,570
MWRA I And I Grant/Loan Order FY 18 $ 524,000
MWRA LWSAP FY 20 $ 500,000
Chapter 90 Mt Auburn St Design $ 4871706
DPW Equipment $ 486,586
FY 15 Sewer Improvements $ 469,907
Top Fifteen Total $ 11 603134
All Others (50) $ 6,837,264
Total Capital Projects (68) $ 18,440,398
Stabilizations, Trusts and Y
enc Ag Accounts
Balances as of June 30, 2019
Fund Description Project Stabilization $ 2,091,570
OPEB Trust Fund $ 1,380,886
ESCO Stabilization $ 1,335,100
Stabilization Fund $ 11267,296
Sped Stabilization $ 1,008,722
Cemetery Perpetual Care (Non-expendable) $ 989,176
Federal Law Enforcement Trust $ 945,537
Collective Bargaining Stabilization $ 621,185
Albert Fleming Scholarship (Non-expendable) $ 300,000
UPIT Scholarship Fund (Non-expendable) $ 228,630
Top Ten Total $ 10168102
All Others (62) $ 927,411
Total Trusts & Agency (72) $ 11,095/513
Includes amounts to be transferred for FY2020 Budget
FY2020 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 possinle witrl 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 FY2020
Budget Policy Guidelines (Page 1 of 2)
(adopted December 11, 2018)
The following are the top two priorities of the ranked Cost-Savings/Revenues Guidelines and the top seven priorities of
the ranked Program Enhancements/Expenditures Guidelines:
M 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.
M Continue pursuing mitigation monies and/or other measures for larger scale projects.
M Continue to develop Building for the Future Initiative funding in collaboration with the School Building
Committee; for the Three Elementary Schools project by formalizing the proposal to use funds redirected from the
retirement appropriation when the pension fund is fully funded while also paying down the OPEB liability; and
for the MSBA High School project with the proposed debt exclusion funding.
M Develop a five year plan and funding schedule for the integrated improvements of the Town's streets and
sidewalks, water-sewer-stormwater infrastructure, and underground utilities. The plan should show status of
ongoing projects, identify future projects including those with no funding source, and include upgrade of all
water meters, identify sources of stormwater and sewage outflow to the Charles River, and coordination with
water-sewer-stormwater projects and underground utility projects.
26
Town Council FY2020
Budget Policy Guidelines (Page 2 of 2)
(adopted December 11, 2018)
W Continue to work collaboratively with the Watertown Public Schools to develop a comprehensive 5-year educational
budget that assures sustainable funding for our schools and the successful education of our children. Seek to
accommodate the Manager's forecast 5% school operating budget increase for FY20, subject to preparation of budget
requests by the School Committee, and subject to the validation of revenue and expenditure assumptions in the
October 9, 2018 Preliminary Budget Overview.
W Enhance the capabilities of the Department of Public Works Forestry Department by adding resources and/or
redeploying additional resources for improving Watertown's public shade trees and increasing the Towri s overall
tree canopy by: (1) Developing a robust data collection process for public shade trees in Watertown, and (2)
Analyzing the data to determine an action plan and to seek collaboration and partnership opportunities with
community groups such as Trees for Watertown.
W Work with the Watertown Transportation Management Association to identify sustainable sources of funding for the
pilot shuttle bus program.
W Based on final Town Council policy direction, develop a budgetary plan to meet the identified need for DPW staging
space.
W Move forward with a Town-wide Information Technology Assessment to review the acquisition, distribution, and
management of IT resources,including staffing levels and positions required to support the Town's IT environment,
improve the functionality of the Towri s website, and improve communications with residents.
27
FY2021 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 Per bul tal Property taxes are inu eased 2.5% per year. New growth is
projected to be $3,600,000 in FY 2021, $3,800,000 in FY 2022 and $3,000,000 in Fiscal
Year 2023.
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 FY2020 amount.
The majority of Local Receipts are projected to remain constant or increase 2.5% annually.
Motor Vehicle Excise is projected at $4,350,000 annually and investment income is
projected at $500,000 annually through FY 2023. Hotel Excise is projected to increase
$250,000 in FY 2021 and $150,000 in FY 2022. Inspection Fees remain at $2,200,000 in
FY 2021 and decrease by $1,050,000 in FY 2022.
Revenue Forecast
Other Financing Sources reflect transfers from the following:
s Parking Meter Fund to offset the Parking Lots and Meters Budget.
® 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 is recommended at a level of $2,000,000
annually through FY 2023, 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 2024, 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 $ 109,523,765 $ 117,118,512 $ 123,646,475 $ 130,537,637
Add 2.5% $ 2,738,094 $ 2,927,963 $ 3,091,162 $ 3,263,441
New Growth $ 4,856,653 $ 3,600,000 $ 3,800,000 $ 3,000,000
Adjusted Levy Limit $ 117,118,512 $ 123,646,475 $ 130,537,637 $ 136,801,077
Overlay $ (1,075,000) $ (1,000,000) $ (1,000,000) $ (1,100,000)
Debt Exclusion $ - $ - $ - $ -
Net Levy Limit $ 116,043,512 $ 122,646,475 $ 129,537,637 $ 135,701,077
Revenue Forecast
State Aid
Cherry Sheet Receipts $ 13,205,612 $ 13,205,612 $ 13,205,612 $ 13,205,612
Total State Aid $ 13,205,612 $ 13,205,612 $ 13,205,612 $ 13,205,612
Revenue Forecast
Local Receipts (1 of 2)
Motor Vehicle Excise $ 4,350,000 $ 4,350,000 $ 4,350,000 $ 4,350,000
Meals Excise $ 550,000 $ 563,750 $ 577,844 $ 592,290
Hotel Excise $ 700,000 $ 950,000 $ 1,100,000 $ 1,100,000
Penalties & Interest $ 250,000 $ 250,000 $ 250,000 $ 250,000
PILOT $ 977,236 $ 1,032,479 $ 1,061,343 A $ 1,091,068
Commercial Trash $ 15,000 $ 15,000 $ 15,000 $ 15,000
Fees $ 41100,000 $ 4,202,500 $ 3,231,313 3,312,095
Rentals $ 129,358 $ 128,841 $ 178,312 $ 227,769
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 $ 705,000 $ 705,000 $ 705,000 $ 705,000
Investment Income $ 500,000 $ 500,000 $ 500,000 $ 500,000
Sale of Town Property $ 5,000 $ 5,000 $ 5,000 $ 5,000
Belmont
Reimbursement $ 73,090 $ 74,917 $ 76,790 $ 78,710
Grant/Employee
Reimbursements $ 25,000 $ 25,000 $ 25,000 $ 25,000
Medicaid
Reimbursements $ 320,000 $ 320,000 $ 320,000 $ 320,000
Total Local Receipts $ 13,406,684 $ 13,829,488 $ 13,102,602 $ 13,278,932
Revenue
Forecast
Other Financing Sources
Transfer
Sale of Lots $ 25,000 $ 25,000 $ 25,000 $ 25,000
Parking Meter $ 350,000 $ 350,000 $ 350,000 $ 350,000
Cemetery Perpetual Care $ 15,000 $ 15,000 $ 15,000 $ 151000
Capital Project Stabilization $ 500,000 $ 500,000 $ 500,000 $ 500,000
Collective Bargaining Stabilization $ 621,500 $ - $ - $ -
ESCO Capital Proj. Stabilization $ 515,688 $ 508,388 $ 505,938 $ 500,938
Water Fund $ 1,631,808 $ 1,672,603 $ 1,714,418 $ 1,757,279
Sewer Fund $ 1,534,390 $ 1,572,750 $ 1,612,068 $ 1,652,370
Free Cash $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000
Total Other Sources $ 7,193,386 $ 6,643,742 $ 6,722,426 $ 6,800,588
36
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— SPED Stabilization $ 250,000 $ 250,000 $ 250,000
Overlay Surplus $ 500,000
Total Revenue $ 2,500,000 $ 2,000,000 $ 2,000,000 $2,000,000 $2,000,000
Revenue Forecast Summary
Real Estate & Personal Prop. Tax $ 116,043,512 $ 122,646,475 $ 129,537,637 $ 135,701,077
State Aid
$ 13,205,612 $ 13,205,612 $ 13,205,612 $ 13,205,612
Local Receipts
$ 13,406,684 $ 13,829,488 $ 13,102,602 $ 13,278,932
Other Financing Sources
$ 7,193,386 $ 6,643,742 $ 6,722,426 $ 6,800,588
Total Revenue
$ 149,849,194 $ 156,325,317 $ 162,568,277 $ 168,986,211
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of$2,091,194.
•
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Assumptions:
Departmental expenditures are projected to increase $962,849 (2.5%) in FY 2021 ,
$986,919 (2.5%) in FY 2022 and $1,011,594 (2.5%) in FY 2023.
The Education appropriation is projected to increase $2,522,071 (5%) in FY 2021,
$2,648,175 (5%) in FY 2022 and $2,780,583 (5%) in FY 2023.
Snow and Ice Removal is projected at $1,500,000 through FY 2023.
The Waste Disposal appropriation is projected to increase 5% annually from FY 2021
through FY 2023. Projected funding of a new Service Agreement with
Wheelabrator North Andover beginning in FY 2021 has been included.
•
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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 as of January 1, 2018
that was approved by the Public Employee Retirement Administration Commission
(PERAC) had the Retirement System fully funded on July 1, 2019 (FY 2020). As a
result of adopting a new mortality table assumption along with lowering the rate of
return (ROR) investment assumption, the WCRB will be submitting a Funding
Schedule as of January 1, 2019 for approval by PERAC. Subsequent to a $14,625,789
payment on July 1, 2020 (FY 2021), the Retirement System will be fully funded.
Pension costs are projected to increase $1,445,176 in FY 2021, decrease $13,529,513 in
FY 2022 and increase $10,451 in FY 2023.
A long-range financial plan for the pay down of the Unfunded Other Post-Employment
Benefits (OPEB) Liability was created beginning in FY 2020 through FY 2029.
Funding of the OPEB Liability is projected at $8,016,203 in FY 2020, $4,213,487 in FY
2021, $13,610,276 in FY 2022, and $9,566,376 in FY 2023.
•
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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 $4,601,296 in FY 2021,
$8,734,020 in FY 2022 and $12,767,469 in FY 2023.
Debt figures are from current and projected future debt as listed in the FY 2020-2024
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 2020-2024 Capital Improvement Program.
Street and Sidewalk Improvements are projected to increase 5% annually.
Transfer to the Special Education Stabilization Fund is projected at $250,000 annually
through FY 2023.
•
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Departmental Expenditures
General Government $ 6,133,588 $ 6,286,928 $ 6,444,101 $ 6,605,203
Public Safety $ 21,204,729 $ 21,734,847 $ 22,278,218 $ 22,835,174
Public Works $ 5,719,616 $ 5,862,606 $ 6,009,172 $ 6,159,401
Snow & Ice Removal $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000
Waste Disposal $ 3,187,237 $ 3,346,599 $ 3,513,929 $ 3,689,625
Health & Human Services $ 1,484,716 $ 1,521,834 $ 1,559,880 $ 1,598,877
Library $ 3,151,808 $ 3,230,603 $ 3,311,368 $ 3,394,152
Recreation $ 819,488 $ 839,975 $ 860,975 $ 882,499
Education $ 50,441,424 $ 52,963,495 $ 55,611,670 $ 58,392,253
Total Departmental $ 93,642,606 $ 97,286,888 $ 101,089,312 $ 105,057,185
Insurance & Employee Benefits
$ 16,072,026 $ 17,190,498 $ 18,405,251 $ 19,709,733
•
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FY 2020 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 2020 Budget Policy Guidelines reads as follows:
II. A. Continue to develop Building for the Future Initiative funding in collaboration
with the School Building Committee; for the Three Elementary Schools Project by
formalizing the proposal to use funds redirected from the retirement appropriation
when the pension fund is fully funded while also paying down the OPEB liability;
and for the MSBA High School project with the proposed debt exclusion funding.
II. C. Continue to work collaboratively with the Watertown Public Schools to develop a
comprehensive 5-year educational budget that assures sustainable funding for our
schools and the successful education of our children. Seek to accommodate the
Manager's forecast 5% school operating budget increase for FY20, subject to
preparation of budget requests by the School Committee, and subject to the validation of
revenue and expenditure assumptions in the October 9, 2018 Preliminary Budget
Overview.
Expenditure Forecast
FY 2020 Education Appropriation
(Included for background informational purposes)
Education's $ 50,441,424 $ 52,963,495 $ 55,611,670 $ 58,392,253
The Submitted Fiscal Year 2020 Budget continues the Town's very strong commitment to
Education. The adopted funding level for the Fiscal Year 2020 Education appropriation is
$50,441,424, which is an increase of $2,401,973 over the Fiscal Year 2019 Education
appropriation.
The Submitted Fiscal Year 2020 School Health Insurance appropriation is $5,202,813, an
increase of $305,063 above the revised Fiscal Year 2019 Level. Included within the School
Health Insurance appropriation are monies related to projected staffing in Fiscal Year 2020.
As indicated earlier in this presentation, the Expenditure Forecast included within the
Submitted Fiscal Year 2020 Budget document has Departmental Expenditures projected to
increase 2.5% annually from Fiscal Year 2021 through Fiscal Year 2023. The Education
appropriation is projected to increase 5.0% annually from Fiscal Year 2021 through Fiscal Year
2023.
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 $2,522,071 (5%) in FY 2021, $2,648,175 (5%) in FY 2022
and $2,780,583 (5%) in FY 2023.
Building for the Future Initiative
The Honorable Town Council's Fiscal Year 2020-2024 Capital Improvement Program conceptual recommendation
#18 reads as follows: Concur with the decision to proceed with the "Building for the Future" initiative of
$170,000,000 for the Three Elementary Schools Project funding within the confines of Proposition 21/2, and not
proceed with the $5,304,000 for renovation projects for the Cunniff, Hosmer, and Lowell schools shown in the
FY2020-2024 CIP as NB (included in New Building) or RB (included in Renovated Building).
As a follow-up to that conceptual recommendation and in accordance with the Honorable Town Council's Budget
Policy Guideline II.A., the potential renovation/reconstruction of school facilities included as a subcategory in the
Fiscal Year 2020-2024 Capital Improvement Program includes the following projects.
3 Elementary Schools Project $170,000,000
High School Project $157,000,000
$327,000,000
The following are the projected funding levels for the three Elementary Schools Building Project:
Fiscal Year 2020 $ 981,193
Fiscal Year 2021 $ 4,601,296
Fiscal Year 2022 $ 8,734,020
Fiscal Year 2023 $12,767,469
A School Building Committee was established with thirteen (13) appointments to the Committee. The Committee
is the representative of the Town in all dealings with the architect. The Committee's first meeting was held on
March 14, 2018 and they have held forty (40) meetings since then including three (3) Community Forums at each of
the three elementary schools. The Committee has worked tirelessly with the architect and the proposed Three
Elementary Schools Project creates modern, forward-thinking facilities and associated site amenities that meet the
educational, neighborhood, energy efficiency, and recreational goals established through a public process of
meetings and forums. The Committee is also working with AD Architects on the High School Project that 45
will be done with MSBA assistance and a Debt Exclusion vote.
UNFUNDED PENSION LIABILITY & OTHER POST-EMPLOYMENT BENEFITS (OPEB)
The Honorable Town Council's Budget Policy Guideline II.A. reads in part as follows: " use funds
redirected from the retirement appropriation 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:
Fiscal Year 2020 $13,180,613
Fiscal Year 2021 $14,625,789
Fiscal Year 2022 $ 1,096,276
Fiscal Year 2023 $ 11106,727
As indicated earlier, the Retirement System will be fully funded on July 1, 2020. A long-range
financial plan for addressing the Unfunded OPEB Liabilities has 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 with the projected funding of the OPEB Liability as follows:
Fiscal Year 2020 $ 8,016,203
Fiscal Year 2021 $ 4,213,487
Fiscal Year 2022 $13,610,276
Fiscal Year 2023 $ 9,566,376
Expenditure Forecast 4/23/2019 — Submission of the Fiscal Year 2020 Budget
Pension Costs $ 18,485,572 $ 13,088,176 $ 827,670 $ 823,238 $ 817,209
Other Post Employment Benefits (OPEB) $ 8,016,203 $ 16,772,287 $ 12,637,298 $ 8,605,156
3 Elementary School Project $ 981,193 $ 4,485,615 $ 8,625,036 $ 12,663,207
TOTAL $ 18,485,572 $ 22,085,572 $ 22,085,572 $ 22,085,572 $ 22,085,572
Expenditure Forecast 10/08/2019 — Fiscal Year 2021 Preliminary Budget Overview
Pension Costs $ 18,485,572 $ 13,180,613 $ 14,625,789 $ 1,096,276 $ 1,106,727
Other Post Employment Benefits (OPEB) $ 8,016,203 $ 4,213,487 $ 13,610,276 $ 9,566,376
3 Elementary School Project $ 981,193 $ 4,601,296 $ 8,734,020 $ 12,767,469
TOTAL $ 18,485,572 $ 22,178,009 $ 23,440,572 $ 23,440,572 $ 23,440,572
Variance Between the Expenditure Forecasts
Pension Costs $ - $ 92,437 $ 13,798,119 $ 273,038 $ 289,518
Other Post Employment Benefits (OPEB) $ - $ - $ (12,558,800) $ 972,978 $ 961,220
3 Elementary School Project $ _ $ - $ 115,681 $ 108,984 $ 104,262
TOTAL $ - $ 92,437 $ 1,355,000 $ 1,355,000 $ 1,355,000
• As of January 1, 2019, the Unfunded Pension Liability is estimated to be $24,573,231. 47
• As of July 1, 2019, the Unfunded OPEB Liability is estimated to be $115,370,918.
•
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Debt and Interest
Permanent Debt/Interest $ 5,337,364 $ 4,666,689 $ 3,932,378 $ 3,164,587
ESCO - Permanent Debt/Interest $ 515,688 $ 508,388 $ 505,938 $ 500,938
Three Elem. Schools Proj. - Permanent Debt/Interest $ 258,000 $ 247,250 $ 236,500
Three Elem. Schools Proj. - Authorized/Unissued & Planned $ 981,193 $ 4,343,296 $ 8,486,770 $ 12,530,969
Street & Sidewalk -Authorized/Unissued & Planned $ 1,279,200 $ 2,081,700 $ 2,986,775 $ 3,855,850
Other Debt -Authorized/Unissued & Planned $ 1,726,349 $ 2,573,261 $ 3,569,680 $ 4,593,316
Cost of Certifying Bonds $ 5,000 $ 5,000 $ 5,000 $ 5,000
Total Expenditure $ 9,844,794 $ 14,436,334 $ 19,733,791 $ 24,887,160
Debt & Interest related to the Three Elementary Schools Project is as follows:
$981,193 in FY2020, $4,601,296 in FY2021, $8,734,020 in FY2022 and $12,767,469 in FY2023
•
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Capital Projects
Town Capital $ 689,203 $ 440,000 $ 440,000 $ 440,000
School Capital Projects $ 488,500 $ 474,000 $ 280,000 $ 335,000
Street & Sidewalk Improvements $ 1,061,600 $ 1,114,630 $ 1,170,360 $ 1,228,880
Total Expenditure $ 2,239,303 $ 2,028,630 $ 1,890f360 $ 2,003,880
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Departmental $ 93,642,606 $ 97,286,888 $ 101,089,312 $ 105,057,185
Insurance & Employee Benefits $ 16,072,026 $ 17,190,498 $ 18,405,251 $ 19,709,733
Pension Costs $ 13,180,613 $ 14,625,789 $ 1,096,276 $ 1/106,727
OPEB $ 8,016,203 $ 4,213,487 $ 13,610,276 $ 9,566,376
Debt & Interest $ 9,844,794 $ 14,436,334 $ 19,733,791 $ 24,887,160
Capital Projects $ 21239,303 $ 2,028,630 $ 1,890,360 $ 2,003,880
State Assessments $ 2/717/478 $ 2/799,450 $ 2,875,427 $ 2,953,467
Town Council Reserve $ 3,251,203 $ 2,550,000 $ 2,550,000 $ 2,550,000
Other Financing Uses & Misc. $ 884,968 $ 637,412 $ 646,484 $ 655,829
Total Expenditure $ 149,849,194 $ 155/768/488 $ 161/897/177 $ 168,490,357
FY2020 Budget amounts include Proposed FY2020 Budget Amendment of$2,091,194.
Debt & Interest related to the Three Elementary Schools Project is as follows:
$981,193 in FY2020, $4,601,296 in FY2021, $8,734,020 in FY2022 and $12,767,469 in FY2023
Forecast Summary
Total Revenue $ 149,849,194 $ 156,325,317 $ 162,568,277 $ 168,986,211
Total Expenditures $ 149,849,194 $ 155,768,488 $ 161,897,177 $ 168,490,357
Projected Surplus/(Deficits) $ - $ 556,829 $ 671,100 $ 495,854
Prior Year Balance Budget $ - $ - $ (556,829) $ (671,100)
Remaining Surplus/(Deficit) $ - $ 556,829 $ 114,271 $ (175,246)
Forecast Summary
$175,000,000
$170,000,000
$165,000,000
$160,000,000 ■ Total Revenue
$155,000,000
$150,000,000 Total
$145,000,000 Expenditures
$140,000,000 —
O`10 O`l•� 01•�' O`l•�
Forecast Comparison
ProjectedProjected
4/23/19 , ,: . Variance
Budget
Revenue:
Taxes $ 121,405,905 $ 122,646,475 $ 1,240,570
State Aid $ 13,092,571 $ 13,205,612 $ 113,041
Local Receipts $ 13,829,488 $ 13,829,488 $ -
Other Financing Sources $ 6,643,742 $ 6,643,742 $ -
Total Revenue $ 154,971,706 $ 156,325,317 $ 1,353,611
Expenditures:
Education Appropriation $ 52,963,495 $ 52,963,495 $ -
Town Depts. Approp. $ 39,149,470 $ 39,476,794 $ 327,324
Waste Disposal $ 3,346,599 $ 3,346,599 $ -
Snow & Ice Removal $ 1,500,000 $ 1,500,000 $ -
State Assessments $ 2,799,450 $ 2,799,450 $ -
Pension Costs $ 827,670 $ 14,625,789 $ 13,798,119
OPEB $ 16,772,287 $ 4,213,487 $ (12,558,800)
Insurance & Employee Benefits $ 17,442,086 $ 17,190,498 $ (251,588)
Debt and Interest $ 15,082,044 $ 14,436,334 $ (645,710)
Capital Projects $ 2,028,630 $ 2,028,630 $ -
Other Financing Uses $ 637,412 $ 637,412 $ -
Town Council Reserve $ 2,065,000 $ 2,550,000 $ 485,000
Total Expenditures $ 154,614,144 $ 155,768,488 $ 1,154,344
53
Projected Surplus/(Deficit) $ 357,562 $ 556,829 $ 199,267
Projected
Revenue:
Taxes $ 116,043,512 $ 122,646,475 $ 6,602,963
State Aid $ 13,205,612 $ 13,205,612 $ -
Local Receipts $ 13,406,684 $ 13,829,488 $ 422,804
Other Financing Sources $ 7,193,386 $ 6,643,742 $ (549,644)
Total Revenue $ 149,849,194 $ 156,325,317 $ 6,476,123
Expenditures:
Education Appropriation $ 50,441,424 $ 52,963,495 $ 2,522,071
Town Depts. Approp. $ 38,513,945 $ 39,476,794 $ 962,849
Waste Disposal $ 3,187,237 $ 3,346,599 $ 159,362
Snow & Ice Removal $ 1,500,000 $ 1,500,000 $ -
State Assessments $ 2,717,478 $ 2,799,450 $ 81,972
Pension Costs $ 13,180,613 $ 14,625,789 $ 1,445,176
OPEB $ 8,016,203 $ 4,213,487 $ (3,802,716)
Insurance & Employee Benefits $ 16,072,026 $ 17,190,498 $ 1,118,472
Debt and Interest $ 9,844,794 $ 14,436,334 $ 4,591,540
Capital Projects $ 2,239,303 $ 2,028,630 $ (210,673)
Other Financing Uses $ 884,968 $ 637,412 $ (247,556)
Town Council Reserve $ 3,251,203 $ 2,550,000 $ (701,203)
Total Expenditures $ 149,849,194 $ 155,768,488 $ 5,919,294
54
Projected Surplus/(Deficit) $ - $ 556,829 $ 556,829
FY2020 & FY2021 Budget Issues & Beyond
• Unfunded Pension Liability&OPEB Park Improvements
• Retirement System—Fully Funded July 1, 2020 0 Filippello Park Lights&Scoreboard
• OPEB Liability Funding—FY2020—FY2029 a Arsenal Park
• Buildin-a for the Future Initiative Victory Field Phase 2
(3) Elementary Schools' Project (within Prop 2 1/2) Saltonstall Park Improvements
• Construction Document Phase Moxley Courts Renovations&Lighting
• Construction Contractor Bidding Casey Park
High School Project(MSBA Path) Street&Sidewalk Improvements
• FY2020 Loan Orders at$4.OM
Feasibility and Schematic Process
• Four (4) Loan Orders of$16.0 (FY2021-2024)
Preliminary Design Program
• Related Water-Sewer Improvements
Preferred Schematic Study and Report
• Mount Auburn Street Project-Design
Schematic Design
• Debt Exclusion Vote—Calendar Year 2021 Bond Market
• Collective Bar-ainin-, • Upcoming Bond Sales
• Five (5) Town Unions (FY2020-2022) Maintain AAA Bond Rating
• Six (6) School Unions (FY2020-2022) a Future Local Aid/Economv Driven Revenues
• Acquisition of Land for Open Space/Recreational Use 0 Insurance and Emplovee Benefits
• Community Preservation Act(CPA) 0Snow &Ice Removal
• Development of CPA Plan • Town Council Budizet Guidelines/Conceptual Recommendations
Town-wide Information Technology Community Development&Planning Assessment
• Comprehensive Plan Implementation • Improve Public Shade Trees/Increase Overall Tree Canopy
• Transportation Management Association/Pilot Shuttle Bus . Re-use of Town Buildings(Former Police Station&Former
Program North Branch Library)
• Parking Management Plan Implementation • Replacement of Residential Water Meters
• Bicycle&Pedestrian Plan • Funding Options for Stormwater Infrastructure Improvements
• Community Path (Taylor—Linear) • Shared/Regionalized Services
• I-Cubed Review of Recommendations and/or Implementation
Capital Improvement Plan Public Safety Study
• Epp DPW Staffing Operational Assessment&
• DPW Staging Space
• Various Building Improvements DLS Financial Management Review
• Departmental Equipment Munis Payroll Project
55
4� I
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56