2018-03-26-AC-ATM-rpt - Laserfiche WebLink

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APPROPRIATION COMMITTEE-ATM 2018 • Expenses for cash capital are assumed to include amounts for road and building envelope mainte- nance (following from prior operating overrides) that increase annually by 2.5%, as well as the amount of$1,700,000 from Free Cash for other capital expenses. • No new funds will be appropriated into the general Stabilization Fund or to the Capital Stabilization Fund after the current fiscal year. • Other expenses are assumed to include $30,000 annually for the senior tax work-off program; $200,000 set aside for unanticipated current fiscal year needs, and annual $1,050,000 contributions to the trust fund for future costs of health insurance for retired employees (OPEB) in FY2020 and FY2021, dropping to $300,000 in FY2022. • The offsetting revenues and expenses for revolving funds, grants, and enterprise fund operations, ex- cept the Recreation Enterprise Fund, are projected using the 5-year trend from FY2012-2016. Enter- prise capital is projected using the five averages for FY2012-2016. • The projection contains no set-asides for unidentified new programs. The projection for FY2020 shows an increase of approximately $1,413,000 in total General Fund reve- nue. This increase is significantly lower than the projected $8,578,000 increase in the FY2019 General Fund revenue because the available Free Cash was at almost its highest point in the last 10 years. We can only expect there will be a large decrease in Free Cash (the largest component of Available Funds) com- pared to the FY2019 budget. Free Cash results from an excess of actual revenues over actual expendi- tures. Traditionally, when additional Free Cash becomes available it is not used to fund operating expens- es,but is applied to one-time expenses such as capital projects or stabilization funds. School budgets will be greatly affected by enrollment growth. This model is based on School Department enrollment projections that offer predictions with a great deal of uncertainty. Recent history has shown that enrollments matched or exceeded the projections, and annual growth could hit 4%. COLAs of 1%in FY2020 for the schools,municipal departments, and Public Facilities Department would increase their respective budgets by$938,000, $253,000 and$55,000. Our table illustrates the cumulative effect that COLAs of varying percentages would have on reducing any surpluses for FY2020-2022. 58