2023-02-13 SB Packet - Released - Laserfiche WebLink

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ii ii2 iii i hill iii iii dlllii iii ii i ii mmmmmm Resident income and property wealth are very strong. Resident income,calculated as median household income adjusted for the regional price parity of the Boston metro area, is 253.7%of the US resident income.Additionally, full value per capita has been increasing, reflecting tax base valuation growth against a fairly stable population. Full value per capita,calculated with 2023 full value and 2021 population (most recent year data is available) is $459,915. Exhibit 2 Resident Income Median household income O °°°°°»»»»»»»»»»r Resident income ratio(%) —Aaa median resident income ratio(%) 200,000 mummtmnuirwruwa'>mu'iuniaaoiiaovmiiaoiiaiiai mummmnuirwru+iwiwimmrmimimn/m'u' rmmiiaoiiaomu iiw'mlunutmw;'+Horn,mmnomm»»iimm»»iimm»»iimm»»iimm»i 260 rc r» rc, n�»r »»»r»r r r» »»» r�r,�nn, ,�,n�»»rrr��u»»r rm Y,mm� m m 150000 Y �m ��N r� m r r uuu mwm+ r 240 100 000 220 50 000 200 f w d, 180 0 2014 2015 2016 2017 2018 2019 2020 Source:Moody's Investors Service iiiilwc hill s f o Ilp e ra t iii1 ii-is-, IIIE iii iii r iii it CIII iiIiii iiiii iiii, iiiir-e irves sbill a t,w Lexington's financial position is expected to remain exceptionally strong given preliminary estimates for fiscal 2022 and revenue growth projections through 2024.At the close of fiscal 2021 the town held $115.6 million in available fund balance across all funds, equal to a strong 36.8%of total revenues(see exhibit).The town's governmental funds account for 72%of total revenues;the town's business type activities (which includes water,sewer and housing) comprises 28%.The town's governmental funds derived 73.7%of revenues from property taxes with 17.8%and 4.3%from intergovernmental revenues(primarily funding education)and charges for services respectively. Management is committed to increasing the tax levy to the 2.5%cap annually which, in conjunction with new development,will sustain revenue growth over the medium term. Unaudited results for fiscal 2022 estimate an $11.6 million surplus in the general fund. Management estimates that general fund revenues will increase by 3.9% and 3.4% in fiscal years 2023 and 2024, per the town's 2024 recommended budget.As revenues have increased, management has opted to maintain current levels of service while utilizing dedicated tax levies to increase the capital stabilization and retirement funds.Additionally,operating turnbacks from departments are put towards capital projects instead of operating expense. Management's efforts towards harnessing growth to aggressively fund reserves and capital needs allows for a significant contingency should market conditions change and/or revenues fall short of projections. In both the water and sewer funds, management is moving towards cash financing of capital improvements to save on interest costs in the long term. Management is also considering creating a stormwater fund to cover capital expenses (typically about $2.5 million annually)to improve and maintain proper drainage;the fund would be financed by the additional fee on utilities. Estimated average bill would be $89 annually for residents. �i °oirt of �ii!niii�iuii„m �ouu°i .I��il s��suwS 6 iuu.