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Home My WebLink AboutFY16 Recommended Budget and Financing Plan (Town Manager Report) Town of Lexington FY 2016 Recommended Budget & Financing Plan Report of the Town Manager March 25, 2015 1 Town of Lexington FY 2016 Recommended Budget & Financing Plan Key Aspects of FY16 Budget • Capital: ➢ School Facilities ➢ Center Streetscape ➢ Hartwell Avenue Infrastructure ➢ Roads/Intersections/Sidewalks/Traffic Calming ➢ Capital Reserves • Community Center ➢ Recreation And Community Programs • Staffing ➢ Fire —Add 4 FF/Medics-Medic 2, 24/5, Crossing Staffing-Weekends ➢ Tourism/Visitor's Services ➢ Technology ➢ Add Assistant Town Manager for Development March 25, 2015 2 Town of Lexington FY 2016 Recommended Budget & Financing Plan The Fiscal Year 2016 Recommended Budget and Financing Plan March 25, 2015 3 OUS:MOR tiC Town of Lexington FY 2016 Recommended Budget & Financing Plan ***BUDGET IS BALANCED*** IFY 2 urs.'1 5 IFY 2 us.,.oar AIpIpiir Re .urn rneurmi e II Bum 11..eit BUI(.et $ „ l Education $ 87,868,313 $ 93,233,052 $ 5,364,739 6.1% Shared Expenses (Public Facilities, employee/retiree benefits,pension, debt, liability insurance, Reserve Fund) $ 47,352,943 $ 49,955,907 $ 2,602,964 5.5% Municipal Departments $ 31,957,312 $ 33,578,271 $ 1,620,959 5.1% Subtotal Operating Budget $ 167,178,568 $ 176,767,230 $ 9,588,662 5.7% Cash Capital $ 5,958,117 $ 4,871,905 $ (1,086,212) -18.2% Other (Appro. to reserves, misc.) $ 7,049,726 $ 11,084,668 $ 4,034,942 57.2% Total General Fund $ 180,186,411 $ 192,723,802 $ 12,537,393 7.0 /0 Projected Revenue $ 181,102,361 $ 193,549,110 $ 12,446,749 6.9% Surplus/(Deficit) $ 915,951 $ 825,308 $ (90,644) March 25, 2015 4 Town of Lexington FY 2016 Recommended Budget & Financing Plan FY2016 REVENUE PROJECTIONS March 25, 2015 5 MOR Town of Lexington FY 2016 Recommended Budget & Financing Plan Revenue Summary IF'Y2IIF'Y21 t Ch E 113c % of°ro9L E 111 IT Ex Ill ec Ep Projected $ Chg. % Illtevellque Property Tax Revenue $ 148,212,539 $ 154,493,901 $ 6,281,362 4.2% 79.8% State Aid $ 11,193,462 $ 11,430,692 $ 237,230 2.1% 5.9% Local Receipts(Recap) $ 9,853,431 $ 11,769,694 $ 1,916,263 Local Receipts not shown on Recap $ 915,952 $ - $ (915,952) Total Local Receipts $ 10,769,383 $ 11,769,694 $ 1,000,311 9.3% 6.1% Available Funds $ 11,012,293 $ 15,604,229 $ 4,591,936 41.7% 8.1% Other Available Funds: Use of Capital Stabilization Fund 1 $ 919,000 $ 620,567 $ (298,433) -32.5% 0.3% Revenue Offsets $ (2,492,221) $ (1,987,549) $ 504,672 -20.2% -1.0% Enterprise Receipts $ 1,487,905 $ 1,617,576 $ 129,671 8.7% 0.8% Gross General Fund Revenues $ 181,102,361 $193,549,110 $12,446,749 69% FY2016 Projected excludes$215,000 applied to exempt debt service FY2015 Budgeted Revenue Increase 3.6% FY2014 Budgeted Revenue Increase 6.0% FY2013 Budgeted Revenue Increase 4.7% FY2012 Budgeted Revenue Increase 4.0% March 25, 2015 6 Town of Lexington FY 2016 Recommended Budget & Financing Plan FY2016 RECOMMENDED MUNICIPAL BUDGET March 25, 2015 7 Town of Lexington FY 2016 Recommended Budget & Financing Plan Selectmen's Budget Principles and Priorities 2. Recurring Revenues, not Reserves or One-time Revenues, to Support the Operating Budget 3. Use One-Time Revenues for One-Time Expenses 4. Budget Adequate Reserves & Contingency Funds 5. Sufficient Building Maintenance Budget 6. Maintain Core Services 7. Property Tax Relief for Bridge/Bowman/Estabrook Debt Exclusion March 25, 2015 8 Town of Lexington FY 2016 Recommended Budget & Financing Plan FY2016 Budget Summary FY2015 FY2016 $ Change %Change School Department $ 86,623,929 $ 92,060,316 $ 5,436,387 6.3% Minuteman High School $ 1,244,384 $ 1,172,736 $ (71,648) -5.8% Shared Expenses $ 47,352,943 $ 49,955,907 $ 2,602,964 5.5% Municipal Budget $ 31,957,312 $ 33,578,271 $ 1,620,959 5.1% Subtotal - Departmental Budgets $ 167,178,568 $ 176,767,230 $ 9,588,662 5.7% OPEB Trust Fund $ 1,119,000 $ 1,200,000 $ 81,000 7.2% Cash Capital $ 5,958,117 $ 4,871,905 $ (1,086,212) -18.2% Capital Stabilization Fund $ 5,910,726 $ 9,447,832 $ 3,537,106 59.8% Set-Aside for Unanticipate FY15 Needs $ - $ 200,000 $ 200,000 Warrants Articles/Comm. Ctr. Support $ 20,000 $ 236,836 $ 216,836 1084.2% Total-General Fund Budget $ 180,186,411 $ 192,723,803 $ 12,537,392 7.0% Unallocated $ 915,951 $ 825,308 $ (90,643) -9.9% March 25, 2015 9 Town of Lexington 2016 Recommended Budget & Financing Plan Other Budget Recommendations 1 . Community Center: 5.5 Employees (4 new, 1 .5 transferred from Human Services; $217,000 from tax levy and $435,000 from program fees. 2. Fire: Add 4 Firefighter/Paramedics — Fee Supported 3. Information Technology: Add 3 Technology Positions 4. New - Assistant Town Manager for Development 5. Appropriate $621,000 from Capital Stab. Fund to Manage Debt Service from High School Modular Building Project 6. Appropriate $215,000 from Capital Stab. Fund to Provide Tax Relief for Bridge/Bowman & Estabrook Projects March 25, 2015 10 Town of Lexington FY 2016 Recommended Budget & Financing Plan Capital Budget March 25, 2015 11 Town ofLexington , FY 2016 Recommended Budget & Financing Plan Capital Budget — ATM & STM Free Other Cash/Tax Financing Levy Sources 1 Debt 2 Total General Fund $ 4,871,905 $ 18,687,025 $ 23,558,929 Chapter 90/Other Funding $ - $ 1,135,605 $ - $ 1,135,605 Water Enterprise $ - $ 1,015,500 $ - $ 1,015,500 Sewer Enterprise $ - $ 1,390,500 $ 1,200,000 $ 2,590,500 Recreation Enterprise $ - $ 261,500 $ - $ 261,500 Compost Revolving Fund $ - $ 690,000 $ 690,000 Community Preservation Act 3 $ - $ 2,540,601 $ - $ 2,540,601 Total (all Funds) $ 4,871,905 $ 6,343,706 $20,577,025 $31,792,635 1 Other Funding includes $961,105 in Chapter 90 Aid for street improvements, $57,000 in PEG Access Revolving Fund monies for Cary Memorial WiFi, $82,500 from the School Lunch Program revolving fund for kitchen equipment and $35,000 from the Cemetary Trust Fund for a feasibility study of the Westview Cemetary building. 2 General Fund includes a $350,000 supplemental appropriation for LHS Modular Classroom construction, to be considered at the Special Town Meeitng, but originally approved at the November 2013 special town meeting. 3 Includes both Town and non-Town CPA funded projects. March 25, 2015 12 Town of Lexington FY 2016 Recommended Budget & Financing Plan Reserves March 25, 2015 13 (C;:ii,t Town of Lexington \ •PA % FY 2016 Recommended Budget & Financing Plan kIT GZO Recommendations to Increase Reserves • Article 21 : Other Post Employment Benefits Trust (Retiree Health Ins.) $1 ,200,000 • Article 26: Capital Proj.Stab. Fund $9,448,000 March 25, 2015 14 P`OJS,�rr�ry�A� \y :(1 a ) Town of Lexington �3. 2016 Recommended Budget & Financing Plan Reserve Summary Uu" IIrUP' IIr (1) (2) (3) (4) Special Other Post Debt Education Employment Service/Capital Stabilization Stabilization Benefits Trust Projects/Building Fund Fund Fund (1) Renewal Fund Balance as of January 31, 2015 $ 8,988,998 $ 1,072,679 $ 5,778,635 $ 8,041,281 Proposed Appropriation From $ - $ - $ - $ (835,567) Proposed Appropriation To $ - $ - $ 1,200,000 $ 9,447,832 Projected Balance, July 1, 2015 $ 8,988,998 $ 1,070,526 $ 6,978,635 $ 16,653,546 (1) Reflects 12/31/2014 Balance March 25, 2015 15 oVS;MORNj,:, =;al Town of Lexington �'PAFY 2016 Recommended Budget & Financing Plan 4X1T GZO Outstanding Budget Issues • School Facility Capital Projects Likely Considered at a Fall STM • Unallocated : $825,308 March 25, 2015 16 oVS MORN�j�,:, a) Town of Lexington y•A�� FY 2016 Recommended Budget & Financing Plan �LkIT GZO FY16 Budget Highlights • Build Reserves and a Financing Plan for Future Capital Projects • Manage Timing of Capital Projects • Provide Funding for Community Center Programs • Continue Investment in Information Technology March 25, 2015 17 oVS MORN�j�,:, wa) Town of Lexington �'•PA� FY 2016 Recommended Budget & Financing Plan �LkIT GZO Thank You Educational Excellence. Protecting Public Safety, Public Health, Public Assets and Lexington's Special Quality of Life. March 25, 2015 18