HomeMy WebLinkAbout2013-12-18 BOS Packet - Released
Budget Collaboration-Financial Summit 3
December 18, 2013
7:00 p.m.
Public Services Building Cafeteria
Agenda
1.Revised FY15 Revenue Projections
2.Discussion of Use of FY15 Unallocated Revenue
3.Proposed FY15 Revenue Allocation Model
4.Establish Date: Budget Collaboration-Summit 4
Town of Lexington
Revenue Projections (as revised for Summit III, 12/18/13)
Revenue Excecutive Summary
This revenue projection is being submitted to the Board of Selectmen as required under Section 13 of Chapter 753 of the Acts of 1968, as amended, An Act
Establishing the Selectmen-Town Manager Form of Government in the Town of Lexington. The projection is based on the most current data available. As
new information becomes available, the projections may be revised. The summary below presents gross and net general fund revenues. Gross General Fund
Revenues include all revenues projected as available for use in FY2015. Net General Fund Revenues are gross revenues less revenues recommended to be
set-aside to fund designated expenses. In FY2015, Gross Revenues are projected to increase by approximately $5.2 million, or 3%, while Net Revenues are
projected to increase by approximately $9.1 million, or 5.7%.
FY 14-15 Change
FY10 ActualFY11 ActualFY12 ActualFY13 ActualFY14 RevisedFY15 Projected$%
General Fund Revenue Summary
Property Tax Levy (Table 1)$ 122,259,637115,979,750$ 128,615,715$ 135,386,783$ 141,821,519$ 147,667,057$ 5,845,538$ 4.12%
State Aid (Table 2)$ 8,506,6919,101,556$ 8,401,617$ 9,410,134$ 10,201,794$ 10,405,830$ 204,036$ 2.00%
Local Receipts (Table 3)$ 11,991,00110,728,657$ 12,340,331$ 12,549,845$ 10,524,399$ 10,769,383$ 244,984$ 2.33%
Available Funds (Table 4)$ 6,819,8926,253,619$ 7,975,216$ 7,249,652$ 12,473,510$ 11,831,125$ (642,385)$ -5.15%
Revenue Offsets (Table 5)$ (1,687,257)(1,713,630)$ (2,474,521)$ (1,645,350)$ (1,617,683)$ (2,097,751)$ (480,068)$ 29.68%
Enterprise Receipts (Table 6)$ 1,615,9731,662,522$ 1,564,441$ 1,512,892$ 1,497,405$ 1,542,327$ 44,922$ 3.00%
Gross General Fund Revenues142,012,474$ 149,505,937$ 156,422,799$ 164,463,955$ 174,900,943$ 180,117,971$ 5,217,028$ 2.98%
Less - Revenues Set-Aside for $ 3,722,5113,023,702$ 3,554,059$ 6,339,044$ 14,772,442$ 10,856,352$ (3,916,091)$ -26.51%
Designated Purposes
s$ 145,783,426138,988,772$ 152,868,740$ 158,124,911$ 160,128,501$ 169,261,619$ 9,133,118$ 5.70%
Net General Fund Revenue
Detailed Description:
Property Tax Levy: The FY2015 property tax levy is projected to increase approximately $5.8 million, or 4.1%. The projected levy is a function of the FY2014
levy limit increased by 2.5% per Proposition 2 1/2, plus an increment for new growth. FY2015 new growth will be a function of construction activity for the
period July 1, 2013 to June 30, 2014. FY2015 new growth is estimated at $2,300,000 based on a review of historical data on new growth. FY14 new growth
was certified by the Department of Revenue at $3,017,335.
State Aid: FY2015 state aid is projected to increase 2% from its FY2014 level. Final FY2015 state aid numbers are likely to be known in June 2014 when the
Legislature adopts, and the Governor signs, the FY2015 State budget.
Local Receipts: FY2015 projections for each category of receipt are based on the history of actual collections and projections of 3 and 5 year historical
averages, unless otherwise specified in the supplemental tables of this document. FY2015 local receipts are estimated to increase by approximately $245,000
or 2.3% over FY14 estimates. The major contributor to this growth is an increase in the estimate for Motor Vehicle Excise of $100,000.
Available Funds: Available Funds are projected to decrease by approximately $0.64 million or 5.1%. This decrease is a net change driven predominantly by
two factors. The first factor is an approximate $1.5 million decrease in free cash. The FY14 free cash certification was $12.6 million. The figure of $11.65
million shown represents free cash appropriated to support FY14 operating and capital spending including $1.5 million appropriated at the November 2012
special town meeting to fund Estabrook School access improvements and $2.47 million voted last spring to finance the acquisition of 33 Marrett Road. The
FY15 figure of $10.3 million represents the 7/1/13 certification of $10.3 million. The second factor is the proposed use of $1 million from the Town's Health
Claims Trust Fund which is a portion of the balance in the fund that was the repository of employer and employee contributions when the Town's employee
health insurance program was self-insured. It is proposed that this amount be used to underwrite the Town's share of FY15 GIC premiums thus freeing up $1
million in the tax levy to continue progress in funding the Town's OPEB liability.
Other components of Available Funds include the proposed use of parking meter receipts, cemetery funds and the Transportation Demand Management
Stabilization Fund to support FY15 operating costs.
Revenue Offsets: Revenue Offsets are projected to increase by approximately $480,000 or 29.7%. Revenue Offsets represent the set-aside of a portion of
projected revenues needed for particular purposes including:
(1) components of state aid (Public Library aid and School Lunch reimbursements) that are distributed as Cherry Sheet aid, but, in fact, are categorical grants
that are not available to support general fund operations;
(2) cherry sheet assessments - estimated charges to be levied by the Commonwealth to cover the costs of state and regional services provided to the Town.
Cherry Sheet Assessments assume a 3.5% increase in FY 2015;
(3) the Assessor's Overlay account which covers the cost of abatements and exemptions granted to property taxpayers; and,
(4) potential snow and ice deficits.
The FY15 increase in total revenue offsets is driven primarily by an increase in the set-aside for snow and ice deficits from $0 in FY14 -given that there was no
snow/ice deficit incurred in FY13 - to the traditional set-aside of $300,000 in FY15 to cover a potential FY14 deficit.
1 of 2
Revenue Executive Summary12/17/2013
Town of Lexington
Revenue Projections (as revised for Summit III, 12/18/13)
Revenue Excecutive Summary
Enterprise Receipts: This category represents transfers from the water, sewer and recreation enterprise funds to the general fund to cover general fund
expenditures that support the operations of the water, sewer and recreation departments. Water & Sewer Indirects were reduced by $61,549 annually from
FY07 through FY13 as per BOS vote on October 30, 2006 to bring historical levels of indirect costs in line with actual costs. FY14 estimates are based on the
results of indirect cost analyses conducted by the Finance Department. Projected FY15 is based on an assumed 3% increase in costs. These figures may be
modified based on an update of indirect costs that is currently in progress.
Revenues Set Aside for Designated Purposes: This represents components of Gross General Fund Revenues that are set aside for designated purposes.
The proposed purposes are shown below.
Revenues Set-Aside for Designated Purposes
Tax Levy
Free CashTotal
Notes
133 Marrett Road Improvements -
$ -322,816$ 322,816$ Approved at Nov. 2013 special town meeting.
Phase I
2
Set-Aside for Unanticipated
$ -200,000$ 200,000$ Reserved for appropriation at the 2014 annual town meeting to fund supplemental
Current Fiscal Year Needs
appropriations to the FY14 budget.
$1 million resulting from use of Health Insurance Claims Trust Fund to fund FY15 Health
3
OPEB
$ 1,000,000119,000$ 1,119,000$
4Cash Capital
$ 750,0002,000,000$ 2,750,000$ Includes $750,000 for potential general fund components of CPA eligible projects,
including but not limited to the Cary Hall and Community Center projects.
5
Capital Stabilization Fund
$ 550,0001,200,000$ 1,750,000$ To meet future capital/debt service needs, including $350,000 to offset FY16 exempt
debt service attibutable to Bridge/Bowman and Estabrook projects.
6Street Reconstruction
$ 2,154,924-$ 2,154,924$ Consistent with long-term street maintenance plan.
7
Reserve for Federal Budget
$ -400,000$ 400,000$ Set-aside to offset potentialfederal budget cuts that will impact School grant programs.
Reductions
8
Municipal Building Envelope $ 178,303-$ 178,303$
Initially funded in 2006 override; increases by 2.5% per year.
and Systems
9
Senior Tax Work-Off Program
$ 20,000-$ 20,000$
Set-aside for Board/Summit priorities.
10Unallocated
$ -1,961,309$ 1,961,309$
11Subtotal
$ 4,653,2276,203,125$ 10,856,352$
$4,100,000 of Free Cash to support FY15 budget
12Operating Budget
$ -4,100,000$ 4,100,000$
13Grand Total
$ 4,653,22710,303,125$ 14,956,352$
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Revenue Executive Summary12/17/2013
FY2015 Revenue Allocation
$ 180,117,971Projected FY2015 Revenues
FY2014 school budget ex Avalon Bay
(1)(81,150,507)$
FY2014 municipal budget
(2)(30,580,972)$
(3)(1,475,279)$ FY2015 Minuteman
FY2015 Contributory Retirement
(4)(5,005,573)$
(5)(12,400)$ FY2015 Non-Contributory Retirement
FY2015 Benefits
(6)(23,666,452)$
FY2014 Unemployment comp
(7)(200,000)$
(8)(610,000)$ FY2015 Workers' comp
FY2015 Property and Liability Insurance
(9)(776,455)$
FY2015 Uninsured Lossess
(10)(175,000)$
FY2015 Debt Service
(11)(5,946,641)$
FY2015 Reserve Fund
(12)(900,000)$
FY2015 Facilities Department Budget
(13)(9,932,675)$
$ (10,856,352)Set-Aside for Designated Uses: includes $322,816 for
Marrett Road Improvements approved at the Nov. 2013
STM; $200,000 for FY14 Unanticipated Needs;
$1,119,000 for OPEB; $2,750,000 for Cash Capital;
$1,750,000 for the BR/DSR/BR Stabilization Fund;
(14)
$2,154,924 for Street Improvements; $400,000 Set-Aside
to cover Federal Budget Reductions; $178,303 for
Municipal Building Envelope and Systems; $20,000 for
Senior Tax Work-Off Program; and, $1,961,309 of
Unallocated Revenue for uses yet to be determined.
$ Incremental Revenue8,829,666
(15)
72.6%FY14 School Spending as % of FY14 general fund budget
(16)
exclusive of Shared Expenses and Minuteman.
27.4%FY14 Municipal Spending as % of FY14 general fund
(17)
budget exclusive of Shared Expenses and Minuteman.
$ 6,412,981School Share of incremental FY2015 revenue Bay (7.9%
increase over FY14 School Budget ex. Avalon)
(18)
$ 2,416,685Municipal Share of incremental FY2015 revenue (7.9%
(19)
increase over FY14 Municipal Budget)
December 18. 2013
Summit III - FY15