HomeMy Public PortalAboutFinancial Forecast Presentation to Finance Committee 01022018Town of Brewster
Financial Forecast
Fiscal Year 2019 - 2023
Presented to the Finance Committee
January 2018
Presented to the Finance Committee
January 2018
Photo Courtesy of Ann Christen
Municipal Budget Overview
Municipal
Budget
General Fund
Town
Operations
School
Operations
Capital Project
Funds
Community
Preservation
Fund
Special Revenue
Funds
Revolving Funds
Reserve Funds
Municipal Funds
USE OF FUNDS BY DEPARTMENT
DEPARTMENT
GENERAL
FUND
REVOLVING
FUNDS
RESERVE
FUNDS
CAPITAL
PROJECT
FUNDS
COMMUNITY
PRESERVATION
FUNDS
Administration, Finance, Planning √√√
Public Safety √√√
Maintenance √√
Human Services √√√
Culture & Recreation √√√
Education √√√
Ambulatory Services √
Golf Department √
Water Department √
Community Preservation Committee √
Municipal Forecast
45.5 45.6 47.6 50.0 50.2 49.1 50.9 51.9 53.0
39.0 40.8 41.7 43.4
47.9 49.2 50.7 52.0 53.5
5.0 4.4 5.0
2.2 2.81.0 1.0 1.0 1.2 0.9 0.9 0.9 0.9 0.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Revenue Operating Expense Capital & Articles AssessmentsIn Millions ($)Note: FY2014 – FY2017 Actuals; FY2018 Budget; FY2019 – FY2023 Projections
Municipal Forecast - Debt Service Summary
Note: FY2014 – FY2017 Actuals; FY2018 Budget; FY2019 – FY2023 Projections
2.2 2.7
3.4 3.3 3.3
2.1 1.9 1.8 1.8 1.7
0
0
0.41 0.37 0.36
0.35 0.34 0.33 0.32 0.31
0
0
0
1
2.3
2.8
4 4
4.8 4.7
0
1
2
3
4
5
6
7
8
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Long Term Debt Short Term Debt Forecasted DebtIn Millions ($)
Debt Service Summary - % of Municipal Budget
As a Percentage (%)Note: % of Municipal Budget shown in yellow includes existing debt; short term debt; and assumptions for authorized / unissued debt as of
September 20, 2017. Does not include Library Project Es.t $7,000,000. GFOA stands for the Government Finance Officers Association.
General Fund
Long Term Focus
Local Economic Factors
INDICATOR 2014 2015 2016 2017 2018
Tax Collection Rate 99.10%99.20%99.90%99.90%TBD
Tax Rate $ 7.92 $ 8.18 $ 8.26 $ 8.43 $ 8.26
Standard & Poors Bond Rating AAA AAA AAA AAA AAA
Current Debt Service as % of General Fund
Operating Budget 4.59%4.75%4.97%7.05%8.03%
Note: Government Finance Officers Association (GFOA) benchmark for Debt Service % to Operating Budget is 12.0%
Increase in FY2017 and FY2018 Debt Service is attributed to Road Improvements and the Fire Station Project
General Fund - Projected Tax Rate
$7.98
$8.22
$7.90 $7.90 $7.90 $7.90 $7.90 $7.90
$0.28
$0.21
$0.36 $0.35 $0.34 $0.28 $0.27 $0.26
$0.06 $0.26 $0.30 $0.29 $0.28
$0.14 $0.48 $0.78 $0.83
7
7.5
8
8.5
9
9.5
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Cape Tech / Regional High School Debt Exclusion Authorized / Unissued Debt Exclusion
Existing Debt Exclusion Projected Base Tax Rate
Note: Figures for FY2019 – FY2025 are for illustrative purposes only. Figures are projections and are subject to change; especially as values
change on an annual basis. Does not include Library Project Es.t $7,000,000. Dollars ($)
General Fund – Undesignated Fund Balance
Note: Undesignated Fund Balance is the amount of funds available after reductions for reserves and designated balances have been made.
Undesignated Fund Balance is similar to Retained Earnings in the private sector.
The reduction in Undesignated Fund Balance in FY2017 was due to a change in reporting reserve and special revenue funds (Ex. Water)
General Fund – New Growth
In Thousands ($)Note: New Growth is typically two years in arrears. New Growth in FY 2009 is based upon completed construction in FY2007. New Growth in
FY 2010- FY2011 declined due to the recession in mid – 2008 and 2009.
General Fund Abatements
In Thousands ($)391
418
366 376
336
382 394 412
436
196 191
147 139 131 141 140
295 295
0
50
100
150
200
250
300
350
400
450
500
2009 2010 2011 2012 2013 2014 2015 2016 2017
Budget Actual
Note: Abatement information is important to review as it demonstrates our stable property valuations. In addition, in FY2018 the town
reduced the amount of the Overlay & Abatement budget to correspond with the actual prior year abatement trends.
General Fund - Free Cash
1.7
1.239
1.077
1.654 1.652 1.639 1.753 1.894
2.358
2.6
2.05 1.86
2.20 2.30 2.20 2.36
2.50
3
0
0.5
1
1.5
2
2.5
3
3.5
2009 2010 2011 2012 2013 2014 2015 2016 2017In Million(s)Fiscal Year
Note: Free Cash is certified each year by the Massachusetts Department of Revenue. Free Cash is a one time source of funds as the amount of
certified free cash varies by Fiscal Year. The Selectboard also have a policy to ensure $600,000 each year remains in the Free Cash Reserve(s).
General Fund
Long Term Focus - Revenue
General Fund – Revenue Forecast
27.1 27.9 29.2 30.3 31.5 33.3 34.9 35.8 36.7 37.7
4.6 4.7 4.8 5 4.8
4.8
4.9 5 5.1 5.1
2.3 2.2 1.7 1.7 1.8
1.8
1.8 1.8 1.8 1.8
1.7 1.7 1.9
3 2.6 0
0 0 0 0
0
5
10
15
20
25
30
35
40
45
50
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Tax Levy Local Receipts State Aid Free Cash
Note: FY2014 – FY2017 Actuals; FY2018 Budget; FY2019 – FY2023 ProjectionsIn Million(s)
General Fund - Local Revenue Forecast
Note: FY2014 – FY2017 Actuals; FY2018 Budget; FY2019 – FY2023 Projections
0
0.5
1
1.5
2
2.5
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
State Local Aid Motor Vehicle
Hotel / Meals Tax Penalties & Int on Taxes
Transfer Station License & Permits
Miscellaneous Non Recurring Other Local RevenueIn Millions ($)
General Fund
Long Term Focus – Operating Expenses
General Fund – Financial Forecast
35.8 36.5 37.7
40.1 40.8 39.9
41.7 42.7 43.7 44.6
35.1 35.7
38.5 38.1
40.8 39.9
42.2 43.6 45
46.6
0
5
10
15
20
25
30
35
40
45
50
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Revenue Operating Expense
Note: FY2014 – FY2017 Actuals; FY2018 Budget; FY2019 – FY2023 ProjectionsIn Millions ($)
General Fund – Potential Budget Pressures
•Revolving Fund Concerns
•Transfer Station
•Golf Department
•Recreation Department
•Other Long Term Budgetary Constraints
•Debt Service
•Health Insurance Premium Cost increases
•From 3.0% increase in FY2014 to estimated 15.0% in FY2019
•Retirement Cost Increases
•From 8.7% increase in FY2014 to estimated 10.0 increase in FY2019
Note: As per MGL, the General Fund is responsible to cover any deficits that occur throughout the municipal budget.
General Fund – Expenditure Forecast
14.8 15.6 15.2 14.7 15.1 16.3 17.1 18.0 19.0 20.0
16.0 16.3 18.1 19.3 20.2 20.8 21.3 21.8 22.4 22.90.3 0.3 0.5 1.3
2.1
1.9
2.8 2.7 2.7 2.6
2.9 2.4
2.5 1.6
2.3 0.1
0.1 0.1 0.1 0.1
1.0 1.0
1.2 1.3
0.9 0.9
0.9 0.9 0.9 0.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Town School Debt Articles Other Assessments
Note: FY2014 – FY2017 Actuals; FY2018 Budget; FY2019 – FY2023 ProjectionsIn Millions ($)
General Fund
Fiscal Year 2019 Budget Projection
General Fund - Fiscal Year (FY) 2019
Selectboard Goals
•Maintain Current Level of Services
•Maximum Cap of 2.5% Increase over Fiscal Year 2018
•Nauset Regional School District and Cape Cod Technical High School
budgets adjusted per proportionate enrollment share
General Fund – FY 2019 Projection
$39,980,269
Revenue Expense
General Fund – Operating Forecast
8.5 8.8 9 9.3 8.3 8.4 8.6 8.8 9 9.1
3.7 3.9 2.7 3.1 2.5 3.1 3.1 3.2 3.3 3.3
16.8 17.7 17.5 17.1 20.2 20.8 21.3 21.8 22.4 22.9
2.7 2.7 2.6 3 2.1 1.8 2.7 2.7 2.6 2.55.5 5.9 6.3 7.3 7.4 5.6 6.2 6.9 7.7 8.4
0
5
10
15
20
25
30
35
40
45
50
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Salaries Operations Education Debt Service Insurance / Other Expenses
Note: FY2014 – FY2017 Actuals; FY2018 Budget; FY2019 – FY2023 Projections; Significant changes in FY2018 pertain to establishing
revolving funds for Water, Golf, and Ambulance as well as reporting School related Insurance & Retirement in the Educational Budget.In Millions ($)
General Fund – Town Personnel Costs
Note: FY2014 – FY2017 Actuals; FY2018 Budget; FY2019 – FY2023 Projections; Significant changes in FY2018 pertain to establishing
revolving funds for Water, Golf, and Ambulance as well as reporting School related Insurance & Retirement in the Educational Budget.In Millions ($)8.5 8.8 9 9.3 8.3 8.4 8.6 8.8 9 9.1
1.6 1.7 1.8 1.9
2 2.2 2.5 2.9 3.4 3.91.1 1.2 1.3 1.4
1.5 1.7 1.8 2
2.2 2.5
0
2
4
6
8
10
12
14
16
18
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Salaries Health Insurance Retirement
FY2019 Budget Cycle Next Steps
•October 2017
•Capital Planning Committee Began to Review Capital Requests
•Further Refined Five Year Financial Forecast
•November 2017
•Town Administration & Finance Review Options to Deliver a Balanced Budget
•December 2017
•Town Administration & Finance present budget forecast to the Selectboard
•Issuance of Budget Instructions to Department Heads
•January 2018
•Refinement of Projections based upon Departmental Submittals to Town
Administration
•Town Administration, Selectmen, and Finance Committee begin review of FY
2019 Budget Forecast
Questions