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Home My Public Portal About07-15-2014 Capital Projects Stabilization Fund 2014_201407110919305556Michael J. Driscoll Town Manager TowN OF WATERTOWN Office of the Town Manager Administration Building 149 Main Street Watertown, MA 02472 Phone: 617-972-6465 Fax: 617-972-6404 www.watertown-ma.gov townmgr�watertown-ma gov To: Honorable Town Council From: Michael J. Driscoll, Town Manage Date: July 10, 2014 RE: Agenda Item — Transfer of Funds Request As you are aware, as indicated in the attached excerpt from the Fiscal Year 2015 Budget Message and Revenue Forecast, transfers of $500,000 annually from the NESWC/Capital Projects Stabilization Fund began in Fiscal Year 2006 and will continue through Fiscal Year 2017. In order to continue the annual transfer of $500,000 beyond Fiscal Year 2017, we will look for opportunities to make transfers to this Stabilization Fund in an effort to support capital projects included in the five year General Fund Capital Improvement Program which totals $132,881,700 for Fiscal Year 2015- 2019. Monies are available to be transferred from Town Council Reserve; from various Full Time Salaries accounts as a result of positions being unfilled during Fiscal Year 2014; and from the Waste Disposal Budget as a result of fewer tons of municipal solid waste for disposal with the implementation of the single stream recycling and automated trash collection in August 2012. Therefore, in order to continue the annual transfer of $500,000 from the Capital Projects Stabilization Fund through Fiscal Year 2018 to support capital projects, I respectfully request the attached transfer be placed on the July 15, 2014 Town Council Agenda. Thank you for your consideration in this matter. cc: Honorable School Committee Honorable Library Board of Trustees All Department Heads TRANSFER AMOUNT $500,000 FROM: FY14 COUNCIL RESERVE $195,500 0111152-570782 FY14 WASTE DISPOSAL $ 75,000 0143352-520290 FY14 WASTE CONT. SERVICES $ 33,000 0143352-520303 FY14 TREASURER/COLLECTOR FULL TIME SALARIES $ 23,000 0114551-510111 FY14 HEALTH FULL TIME SALARIES $ 23,000 0151051-510111 FY14 DPW ADMIN. FULL TIME SALARIES $ 25,000 0140151-510111 FY14 DPW CENTRAL MOTORS FULL TIME SALARIES $ 26,500 0140551-510111 FY14 DPW HIGHWAY FULL TIME SALARIES $ 54,000 0142251-510111 FY14 DPW CEMETERY FULL TIME SALARIES $ 20,000 0149151-510111 FY14 DPW PARKS FULL TIME SALARIES $ 11,000 0149551-510111 $ 14,000 FY14 NON-CONTRIB. RETIREMENT 0191151-510172 TO: FY14 TRANSFER TO CAP.PROJ. STABILIZATION FUND $500,000 0194000-596802 I hereby certify to the availability, authority of funding source, mathematical accuracy and ppropriate fiscal year. ASSISTANT TOWN AUDIT Fiscal Year 2015 Budget Message April 29, 2014 Page 28 Capital Projects Stabilization Fund The original North East Solid Waste Committee Agreement (NESWC) expired in September 2005 and the Town has executed three Post 2005 Agreements through Fiscal Year 2020. As a result of these actions and the foresight the Town had in funding the significant costs of the NESWC Agreement, transfers of $500,000 annually from the NESWC/Capital Projects Stabilization Fund began in Fiscal Year 2006 and have continued through Fiscal Year 2014. In June 2011, the Honorable Town Council voted to change the name of this stabilization fund to "Capital Projects Stabilization Fund." On July 17, 2012, the Honorable Town Council appropriated $840,000 to this Stabilization Fund in order to continue the annual transfer of $500,000 through Fiscal Year 2015. On July 16, 2013, the Honorable Town Council appropriated $1,000,000 to this Stabilization Fund in order to continue the annual Transfer of $500,000 through Fiscal Year 2017. In order to continue the annual transfer of $500,000 beyond Fiscal Year 2017, we will look for opportunities to make transfers to this Stabilization Fund in an effort to support Capital Projects. REVENUE FORECAST APRIL 29, 2014 ASSUMPTIONS: Real Estate and Personal Property taxes are increased 2.5% per year. New growth is projected to be $2,000,000 annually from FY 2016 through FY 2018. Funding for the Optional Tax Exemption for homeowners at 100% over the statutory level is included in the overlay adjustment. Proposition 2 %2 debt exclusion override is based on bond costs and school construction reimbursements. FY 2018 is the last year for school construction reimbursements related to the 1995 Debt Exclusion Override. State Aid is based upon the recommendations contained in the House Ways and Means Committee Budget (HWM). In subsequent fiscal years, State Aid is level funded at the projected FY 2015 amount. The majority of Local Receipts are projected to remain constant or increase 2.5% annually. Motor Vehicle Excise is projected at $3,300,000 annually through FY 2018. Other Excise (Hotel) is projected to increase $50,000 in FY 2016 and $300,000 in FY 2017. Investment income is projected at $65,000 annually through FY 2018. Other Financing Sources reflect transfers from the Parking Meter Fund to partially offset the Parking Lots and Meters Budget, from the Cemetery Perpetual Care Expendable Trust Fund and the Sale of Lots Fund to partially offset the Department of Public Works Cemetery Budget, and from the Water and Sewer Enterprise Funds to cover applicable indirect costs. Utilization of Free Cash is recommended at a level of $2,000,000 annually through FY 2018, 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 2017, which represents the balance of the Fund. Transfer from the Unfunded Pension Liability Stabilization Fund is projected at $250,000 annually through FY 2018. Transfer from the ESCO Capital Project Stabilization Fund includes projected funds from departmental energy savings, rebates and grants. REVENUE FORECAST FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 TAXES: Prior Y ear Adjust ed Le vy Limit $ 78,070,918 $ 82,314,931 $ 86,372,804 $ 90,532,124 $ 94,795,427 Add 2.5% $ 1,951,773 $ 2,057,873 . $ 2,159,320 $ 2,263,303 $ 2,369,886 New Growth $ 2,292,240 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 Adjusted Levy Limit $ 82,314,931 $ 86,372,804 $ 90,532,124 $ 94,795,427 $ 99,165,313 Overlay $ (950,000) $ (950,000) $ (1,050,000) $ (950,000) $ (950,000) Debt Exclusion (FY 2018 Last Year) $ 278,050 $ 226,620 $ 176,600 $ 125,204 $ 72,480 NET LEVY LIMIT $ 81,642,981 $ 85,649,424 $ 89,658,724 $ 93,970,631 $ 98,287,793 STATE AID: Cherry Sheet Receipts $ 9,921,563 $ 10,528,071 $ 10,528,071 $ 10,528,071 $ 10,528,071 Sch. Constr. Reimb. (Lowell, Cuniff & MS) $ 913,208 $ 913,208 $ 913,208 $ 913,208 $ 913,208 TOTAL ST ATE AID ' $ 10,834,771 $ 11,441,279 $ 11,441,279 $ 11,441,279 $ 11,441,279 LOCAL RECEIPTS: Motor Vehicle Excise $ 3,250,000 $ 3,300,000 $ 3,300,000 $ 3,300,000 $ 3,300,000 Other Excise $ 540,000 $ 545,000 $ 595,000 $ 895,000 $ 895,000 Penalties & Interest $ 195,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 PILO T $ 872,374 $ 895,328 $ 918,970 $ 943,322 $ 968,404 Commercial Trash $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Fee s $ 1,831,000 $ 1,956,000 $ 2,004,900 $ 2,055,023 $ 2,106,398 Rentals $ 156,676 $ 156,218 $ 130,748 $ 130,266 $ 131,908 DR -Cemetery $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 DR -Re creation $ 390,000 $ 425,000 $ 425,000 $ 425,000 $ 425,000 Licenses & Permits $ 205,000 $ 205,000 $ 205,000 $ 205,000 $ 205,000 Fines & Forfeits $ 885,000 $ 885,000 $ 885,000 $ 885,000 $ 885,000 Inve stme nt lncome $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 Sa le of Town Property $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 Belmont Reimbursement $ 67,473 $ 69,124 $ 70,124 $ 71,124 $ 72,124 Gra nt Employee Reimbursements $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 Advertis ing Bus Shelters - $ 10,000 $ 10,000 $ 10,000 $. 10,000 $ 10,000 M edicaid Reimbursements $ 365,000 $ 326,000 $ 326,000 $ 326,000 $ 326,000 Wheela bra tor Service Agreement Incentive $ 112,800 TOTAL LOCAL RECEIPTS $ 8, 967,523 $ 9,335,470 $ 9,320,743 $ 9,695,735 $ 9,774,834 OTHER FINA NC ING SOURCES: Transfer from Sale of Lots Fund $ 15,000 $ 15,000 $ 15,000 $ 15,000 $. 15,000 Transfer from Parking Meter Fund $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 Trans fe r from Cemetery Pe rpetual Care Fund $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 Transfer from Capital Projects Stabilization Fund $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ - Transfer from Unfunded Pe nsion Liab. Stab. Fd. $ 250,000 $ 250, 000 $ 250,000 $ 250,000 $ 250,000 Trans fer from ESCO Ca pital Project Stab. Fd. $ 473,215 $ 528,651 $ 525,738 $ 522,038 $ 522,738 Utilization of Free Cash $ 1,500,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 Utilization of Free Cash - SPED $ 790,000 $ - $ 250,000 $ 250,000 $ 250,000 Utiliz ation of Free C ash - 1 Time Curriculum $ 210,000 $ 250,000 $ - $ - $ Utilization of Overlay Surplus - 1 Time Curriculum $ $ 500,000 $ - $ - $ Transfer from Water Fund $ 1,430,435 $ 1,491,355 $ 1,528,639 $ 1,566,855 $ 1,606,026 Transfer from Sewer Fund $ 1,232,446 $ 1,278,821 $ 1,310,792 $ 1,343,561 $ 1,377,150 TOTAL O THER FINANCING SOURCES $ 6,761,096 $ 6,923,827 $ 6,490,168 $ 6,557,454 $ 6,13Q915 TOTA L REV ENUES $ 108,206,371 $ 113,350,000 $ 116,910,914 $ 121,665,099 $ 125,634,821