HomeMy Public PortalAboutCity Council Fiscal Year 2024 Budget Policy Guidelines Watertown's FY2024 Budget Policy Guidelines
As Approved and Ranked by the City Council
November 22, 2022
The City Council is adopting these budget policy guidelines pursuant to Section 5-1 of the Watertown
Home Rule Charter. Based on these guidelines, the City Manager will develop budgetary goals and the
City budget for Fiscal Year 2024. Watertown's Ongoing Budget Policy Guidelines Resolution 2012-72,
Amending Watertown's Ongoing Budget Policy Guidelines Resolution 2017-84 and Watertown's
Ongoing Capital Project Budget Guidelines Resolution 2013-76 are hereby incorporated by reference.
L COST-SAVINGS/REVENUES
Note: The items in this section were ranked in order of priorityby the City Council on November 29,2022
The City Council believes that identification of cost savings and/or new revenues should be a
precondition to additional expenditures. To this end, in developing the FY24 budget, the City Manager
should:
A. 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.
B. Continue pursuing mitigation monies, linkage fees, and/or other measures from larger scale
proj ects.
C. Require all Departments to actively pursue filing applications for all relevant state, federal, and
private foundation grant programs.
D. Actively seek Payment In Lieu Of Taxes (PILOT) agreements, or other in-kind services, with
each non-profit organization owning or purchasing property in Watertown.
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Watertown's FY2024 Budget Policy Guidelines as Approved and Ranked
IL PROGRAM ENHANCEMENTS/EXPENDITURES
Note: The items in this section were ranked in order of priorityby the City Council on November 29,2022
To the extent that resources allow, in light of the financial policies stated above, and adhering to the
principle of first identifying cost-savings and/or new revenue,the following program enhancements and,
if necessary, new expenditures should receive priority in the FY24 budget. Education program
enhancements and expenditures should be considered subsequently in light of the recommendations of
the School Committee.
A. Beginning with FY24, all departments should prepare their budgets to address the strategies and
action items in the Climate and Energy Plan adopted August 9, 2022.
B. Continue to work collaboratively with the Watertown Public Schools on the comprehensive
multi-year educational budget that assures sustainable funding for our schools and the successful
education of our children, and seek to accommodate a 3.5% annual increase for FY24 for the
Education appropriation that will provide level-service funding for our schools.
C. 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,without debt exclusion funding.
D. With the ongoing update to the Comprehensive Plan, which will include new goals and strategies
for development in Watertown, continue to enhance the capabilities of the Department of
Community Development and Planning by adding resources and/or redeploying existing
resources.
E. Improve the operational efficiency, flexibility, and capacity of the Public Works Department to
meet the City'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. Review improvements for
snow and ice removal. Consider what technology platforms are needed to support the
Department.
F. Provide funding for a study of Watertown Square that will incorporate goals of the updated
Comprehensive Plan, and include Intersection Design, Development&Zoning changes, Small
Business strategies, and better use of City owned land, parking lots, and former police station.
G. Update the five year plan and funding schedule for the integrated improvements of the City'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, identify sources of stormwater and sewage outflow to the Charles River, and
coordination with water-sewer-stormwater projects and underground utility projects.
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Watertown's FY2024 Budget Policy Guidelines as Approved and Ranked
H. Provide increased funding and resources for City-wide rodent control in the FY24 budget.
I. Provide funding and resources for launch of the 311 system in the FY24 budget.
J. Consider funding for the recommendations of the Personnel Department Assessment Review and
the Salary Study in the FY24 budget.
K. Continue to 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 City's overall tree canopy by: (1) Developing a robust data
collection process for public shade trees in Watertown, (2)Analyzing the data to determine an
action plan and(3)to seek collaboration and partnership opportunities with community groups
such as Trees for Watertown.
L. Continue working to identify additional acquisition of land for open space and recreation, using
the Acquisition of Land/Open Space Stabilization Fund, and including proposals submitted to the
Community Preservation Committee.
M. Carry out the remaining recommendations of the City-wide Information Technology
Assessment.
N. Consider funding for the recommendations of the Health & Human Services Study in the FY24
budget.
O. Continue to work with the Watertown Transportation Management Association to identify
sustainable sources of funding for the shuttle bus program in Watertown. Use data from the pilot
program to explore strategies to increase ridership in a permanent program.
P. Based on final City Council policy direction, develop a budgetary plan to meet the identified
need for DPW staging space.
Q. Finalize re-use of the former north branch library.
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Watertown Town Council
f t Administration Building
149 Main Street
` CE C,)R r Watertown, MA 02472
Phone: 617-972-6470
ELECTED OFFICIALS:
Mark S.Sideris,
Council President
Resolution# 2012-
Stephen P.Corbett,
Vice President
Resolution: Watertown's Ongoing Budget Policy Guidelines
John A. Donohue,
Councilor Al Large
WHEREAS the Town Council adopts budget policy guidelines each year pursuant to
Susan G. ,
CaunciIorAt Section 5-1 of the Watertown Home Rule Charter, so that the Town Manager can
loAl Large
Anthony Palomtaa, develop budgetary goals and the Town budget for the next fiscal year, and
Councilor At Large
K argelis, WHEREAS for the past several years, annual budget policy guidelines have included
Angeline B.
District A Councilor three sections of ongoing budget practices, namely Section I. FINANCIAL POLICIES,
Cecilia Lenk, Section 11. ONGOING BUDGET PRACTICES, and Section V. BUDGET AND
District B Councilor FINANCIAL MONITORING, and
Vincent J.Piccirilli,Jr.,
District C Councilor WHEREAS the budget policy guidelines in these three sections have reached a point of
Kenneth M.Woodland maturity whereby they have become standard operating procedure, and do not need to be
District D Councilor revised each year.
NOW THEREFORE BE IT RESOLVED that the Town Council of the City known
as the Town of Watertown hereby establishes the following budget policy guidelines as
permanent policy guidance,to be followed annually:
I. FINANCIAL POLICIES
A. Unreserved fund balance: In order to respond to emergencies and other
unanticipated needs, preserve financial flexibility, and maintain favorable bond ratings,
the Town should seek to maintain an unreserved find balance (including stabilization
finds) equal to 7-10% of the annual operating budget. The Council and the Town
Manager will work to develop a formal multi-year policy on the unreserved fund
balance, including the use of free cash if the unreserved find balance is above the 7-10%
target.
B. Capital Expenditures: In order to maintain and improve its infrastructure,
facilities, and equipment,the Town should seek to make annual capital expenditures
(including debt and exclusive of enterprise funds) equal to at least 7.5-8% of the
operating budget.
C. Pension Liability and Other Post Employment Benefits: In order to achieve long
term financial stability, meet the Town's obligations to its employees and retirees, and
maintain favorable bond ratings, the Council,the Retirement Board and Town Manager
will work to address the Town's unfunded pension liability and other post-employment
benefits (OPEB). As was done with the unfunded Pension Liability, create a long-range
financial plan for addressing the unfunded OPEB liabilities, including the converting the
OPEB stabilization fiend to an OPEB Trust Fund. Continue dialog with Retirement
Board and State representatives to consider options for pension reforms for new hires.
II. ONGOING BUDGET PRACTICES
A. Continue the Town's efforts within all departments to obtain grant funding from
federal, state, and other sources, including the use college interns.
B. Continue to analyze the Town's charges for licenses,permits, penalties, and fees
to determine whether they should be increased or new ones instituted, while adhering to
the principal that fees should not exceed the cost of services provided.
C. Review the possibilities and cost implications of contracted services vs. staffing in
various departments.
D. Support the possibilities of providing more services on a regional or inter-
municipal basis in accordance with the council resolution.
E. All department heads should seek to identify line items within their existing
budgets where costs can be controlled and not increased. Look at other possible
scenarios including spending freezes, level dollar and reduction budgets. Review the use
of overtime in each department and monitor consistent Town-wide practices and related
utilization.
F. Continue to enhance the Town's website and use other technologies as cost
effective means of delivering information and services, increasing public awareness, and
encouraging public feedback.
G. Explore cost savings by sharing persomiel across Town departments. Work
towards merging or combining the following functions to better serve both Town and
School Departments: facilities management,human resources, finance, and information
technology.
H. Meet annually in Executive Session(s) to discuss strategies on pending collective
bargaining agreements and the potential impact on upcoming and future budgets.
III. BUDGET AND FINANCIAL MONITORING
A. In order to improve its ability to monitor the implementation of the Town budget,
the Town Council will receive quarterly reports on the revenues and expenditures during
the fiscal year.
B. The Town Council will receive a report on the use and balance of monies in the
Council reserve upon each transfer, and a report each month when there is a change in
Town Councilors' expense line items.
C. An early-warning system will be used to alert the Town Council if revenues fall
below projections.
D. The Town Council will receive quarterly updates on progress in addressing the
recommendations in the annual audit report.
BE IT FURTHER RESOLVED that this resolution shall be incorporated by reference
into the annual budget licy guidelines that are adopted each year.
�mber
I hereby certify that at a regular meeting of the Town Council for which a quorum was
present, the above Resolution was adopted by a vote of g? for, d against and b present
on Dece er 1, 2012.
Val ;pas Mark S. 5ideris
Council Clerk Council President
a
_z Watertown Town Council
. e~ Administration Building
149 Main Street
'SCE COHD ►- Watertown, MA 02472
ELECTED Phone: 617.972-6470
OFFICIALS:
Resolution 9 84 2017-R- 84
Mark S.Sideris,
Council President
RESOLUTION: AMENDING WATERTOWN'S ONGOING BUDGET POLICY
Conceit J.President
Piccirilli,Jr.,
Vice President GUIDELINES
Michael F.Dattoli, WHEREAS the Town Council adopted Resolution 2012-72 Watertown's Ongoing
Councilor At Large
Budget Policy Guidelines,to establish permanent financial policy guidance, and
Aaron P.Dushku,
Councilor At Large WHEREAS since 2014 the Town Council and the School Committee have been working
Susan G.Falkoff, on a plan for the renovation or reconstruction of Watertown's school buildings, including
Councilor At Large submitting Statements of Interest to the Massachusetts School Building Authority, and
Anthony Palomba,
Councilor At Large WHEREAS at the Fiscal Year 2019 Preliminary Budget Overview presented on October
10,2017,it was proposed to self-fund a project to renovate or reconstruct three elementary
Angeline B.Kounelis, schools entirely within the operating budget, with funds redirected from the retirement
District A Councilor
appropriation when the pension is fully funded, while also paying down the OPEB
Lisa J.Feltner, liability, and
District B Councilor
Kenneth M.Woodland, WHEREAS the value of the debt service required for such school capital expenditures
District D Councilor would exceed 8% of the operating budget as stipulated in Resolution 2012-72, and
WHEREAS the Town of Watertown wants a "strong" position for its financial
management policies to get the most favorable rates when going to the bond market for
such capital expenditures.
NOW THEREFORE BE IT RESOLVED that the Town Council of the City known as the Town of
Watertown hereby amends Resolution 2012-72 Watertown's Ongoing Budget Policy Guidelines, with
existing guidelines I.A and I.B to be deleted in their entirety and replaced with the following language:
I. A. Unreserved fund balance: In order to respond to emergencies and other unanticipated needs,
preserve financial flexibility, and maintain favorable bond ratings, the Town should seek to maintain an
unreserved fund balance (including stabilization funds) equal to 8-15% of the annual operating budget.
The Council and the Town Manager will work to develop a formal multi-year policy on the unreserved
fund balance, including the use of free cash, if the unreserved fund balance is above the 8-15%target.
I. B. Capital Expenditures: In order to maintain and improve its infrastructure, facilities, and
equipment, the Town should seek to make annual capital expenditures (including debt and exclusive of
the school Building for the Future Initiative funding and enterprise funds) equal to at least 7.5-8% of the
operating budget.
Page 1 of 2
BE IT FURTHER RESOLVED that this resolution shall be incorporated by reference into the annual
budget policy guidelines that are adopted each year.
-�
Council Member
I hereby certify that at a regular meeting of the Town Council for which a quorum was present,the above
Resolution was adopted by a vote of for,Q against, and 0 present on November 28, 2017.
L�
Marily . Pronovost, Council Clerk Mark S. Sideris, Council President
Page 2 of 2
Watortown Town Council
s , : Administration BUiiding
149 Main Street
Watertown, MA 02472
Phone: 617-972-6470
ELECTED OFFICIALS: Resolution#2013-
Mark S.Sideds,
Council President
Stephen P.Gerhart, Resolution: Watertown's Ongoing Capital Project Budget Guidelines
Vice President
WHEREAS the Town Council adopts budget policy guidelines each year pursuant to
John A. Donohue,Councilor At Largo Section 5-1 of the Watertown Home Rule Charter, so that the Town Manager can
develop budgetary goals and the Town budget for the next fiscal year, and
Susan G.Falkoff,
Councilor At Large
WHEREAS in the Fiscal Year 2014 budget policy guidelines, Attachment A
Anthony Palomba, "ADDITIONAL RECOMMENDATIONS ON CAPITAL PROJECTS"was included to
Councilor At Large
Angeline B. Kounetis, use the Town's capital project funds in the most efficient manner, and to improve the
District A Councilor efficiency and transparency of the Capital Improvement Program(CIP)process, and
Cecilia Lenk,
District B Councilor WHEREAS these recommendations have become standard operating procedure for the
Vincent J. Piccirilli,Jr., Town of Watertown, and do not need to be revised each year.
District C Councilor
Kenneth M.Woodland NOW THEREFORE BE IT RESOLVED that the Town Council of the City-known as
District D Councilor the Town of Watertown hereby establishes the following recommendations on capital
projects as permanent budget policy guidance, to be followed annually:
1. Status of existing capital finds andprojects: As part of the January CIP submission by the
Town Manager,include from each department, a listing of all existing unspent capital
funds (including Chapter 90, developer mitigation, grant funds, etc.) and a status on each
project or acquisition, including how and when remaining fiends will be spent, effective
November 30th.
a. Include project Rinds appropriated by the Town Council to the School Department.
b. Include Water/Sewer Enterprise Fund reporting of capital projects &funds as a new
section of the CIP separate from the General Fund.
2. Details on new projects: As part of the January CIP submission by the Town Manager,
provide details for all items in the CIP that have been previously shown as annual hump
sums in a single line.
a. Include the School Department's"various school improvements".
b. Include"highway reconstruction"and "sidewalk reconstruction", with a forecast of
streets to be done each year.
c. Include Water/Sewer Enterprise Fund capital projects as a new section of the CIP
separate from the General Fund, with a forecast of streets to be done each year.
d. hiclude transportation or water/sewer and storrnwater projects which have or will be
proposed in the fixture, with no funding source yet identified.
3. Coordination Issues Related to Public Works projects: The increasing volume and
complexity of public works projects requires a rethinking of how the Town does its
planning to maximize the use of capital fiends and departmental resources, as well as
providing information to the public in a timely,readily accessible fashion.
a. To this end,the CIP needs to have a five-year forecast of what water•/sewer/stormwater•,
road reconstruction, and sidewalk reconstruction are planned, by specific street,which
will:
i. Insure that work is sequenced to obtain the maximum life from road and sidewalk
reconstruction without major water/sewer work compromising their integrity.
ii. Allow utility companies adequate time to plan underground service replacements prior to
road and sidewalk reconstruction, to avoid compromising their integrity.
iii. Allow time for the Zoning Enforcement Office to notify property owners of non-
conforming driveways, while giving the owners adequate time to seek a variance.
iv. Allow developers time to plan their projects in coordination with the Town, and avoid
digging up newly installed roads and sidewalks.
v. Allow abutting homeowners,who may want to pay for granite curbs on streets scheduled
for asphalt curbs,time to arrange contracting and payment.
vi. Allow time for the Tree Warden to notify abutters who may want a street tree in front of
their property, to allow for the placement of a tree pit prior to the installation of a new
sidewalk.
vii. Provide more transparency to citizens on public works projects and spending.
viii. Allow the Public Works Conunittce or other appropriate committee adequate time to
review the proposed work and provide policy guidance on the above as it relates to
Watertown's goals.
b. Issues of coordination and timing need to be improved to insure the most efficient use of
funds, and bonding of annual street construction projects should be coordinated-with
bidding such-that contractors can begin by April and be completed by November.
c. The Public Works Department should address; on an ongoing basis:
i. Assure adequate supervisory capacity to eliminate decision bottlenecks and improve
timeliness of responses for construction work.
ii. Notification to the public of what construction is happening and where and when it will
occur must be improved, and should be available on the website and updated regularly.
iii. Improve completion of punch list items on projects needs to be improved, including
painting of roadway markings, installation of traffic signs,removal of temporary
construction signs, cleanup of construction debris, etc.
4 Protection 1 t coon of investments: With millions of dollars being spent each year in Watertown own
- on street and sidewalk construction, the administration should take a more aggressive
role to protect the value of these investments to insure that maximum life is obtained
from the new surfaces.
BE IT FURTHER RESOLVED that this resolution shall be incorporated by reference
into the annual budget policy uidelines that are adopted each year.
Council Member
I hereby certify that at a regular meeting of the Town Council for which a quorum was
present,the above Resolution was adopted by unanimous voice vote on December 9,
2013,
Valer'e Papas, Council Clerk Mark S. Sideris, Council President