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HomeMy WebLinkAboutFY 2006 Budget SummaryFY 2006 Budget Summary Town of Lexington Town of Lexington, Massachusetts 1625 Massachusetts Avenue Lexington, Massachusetts 02420 Where your dollar goes* Education 625E Budget Highlights The FY 2006 Budget totals $130,617,313, balanced by non- tax levy revenues totaling $36,554,737, an estimated (non- exempt) tax levy of $89,119,263 and exempt debt of $4,943,313. This is a 3.9% increase over FY 2005. This in- crease is attributable to the allowable 2% % increase under Proposition 2%, and growth due to new construction. Non -tax levy revenues such as state aid, local receipts and investment income continue to have nominal increases. As in previous years, increases in health care, and utilities are among the major drivers increasing expenses. The FY 2006 Budget provides for Maintenance of Basic Services Partial Municipal Government Restoration Increased Financial Flexibility Capital Asset Management & Planning For more information, please review pages 2, 3 and 4. Comparative Rates for Services So ere Public Shared Comm Culture& Safety Exp. Dev. Recreation 5E 8E tE 1.5E 0.5 20 25 5.5E 9E cial General Intgov't Comm Capital ices Gov't Charges Say. &Debt * Breakdown shown is for the FY 2006 general fond. The general fond includes the tax levy, local receipts, state aid and Free Cash. It does not include enterprise funds. Services Provided Education Primary and Secondary Schooling (K -12), Minuteman Science - Technology High School — Community Services Street Maintenance, Water & Sewer, LEXPRESS, Public Building Mainte- nance, Cemetery, Snow Removal, Parks & Forestry Maintenance, Recycling & Refuse Collection & Dis- posal V1 Public Safety Police Patrol & Enforce - ment, Traffic Control, Criminal Investigation, Fire Suppression, Investiga- tion, Prevention & Emer- gency Medical Services l u Culture & Recreation Cary Memorial Library - Main Branch & East Lex- ington Branch, Recreation services & programs, Pine Meadows Golf Course Social Services Council on Aging & Senior Center, Veterans Affairs, Youth & Human Services Community Development Building Inspection, Public Health, Conservation, His- toric Districts, Planning & Zoning Enforcement General Government Finance, Investments, Legal Services, Town Manager, Town Clerk, MIS, Web Ser- vices, Public Boards & Committees Town of Lexington - FY 2006 Budget Summary Revenues Funding for services provided to Lexington residents comes from a variety of sources. The Town strives to maintain a diversified and stable revenue system that will provide shelter from short-run fluctuations in any one revenue source and en- sure ongoing services. Total budgeted revenue, regardless of the source, is equal to $130,617,313. Those sources are • General Fund (Tax Levy, State Aid, Local Receipts & Debt Exclusion) • Enterprise Funds (Water, Sewer & Recreation) • Available Funds (Parking Meter Fund, Revolving Funds, Cash Reserves) — State Aid 2006 $8,059,161 2005 $8,059,161 1? Tax Levy 2006 $89,119,263 2005 $85,175,454 11 Local Revenue '?Available Funds $9,878,759 $1,459,883 $9,333,423 $375,000 Enterprise Funds b Debt Exclusion $17,156,934 $4,943,313 $17,580,847 $5,325,085 Revernmiees: FY2006 Available State Aid Funds Local 6% 1% Recei pts 7% Ent 13% Debt Tax Levy Excl. 69% 4% State aid is level funded in the FY 2006 Budget. Local receipts and available funds are higher this year, due to the budgeting of programs previously not included within the operating budget and one -time receipts. Property taxes will go up in FY 2006, due to the allowable increase under Prop. 2'h , and new residential growth. Unlike previous years, however, increases in the property tax will be far less due to a decrease in debt service payments and no property tax override. Enterprise revenues are forecast to decrease slightly as less money needs to be raised to pay down capital infrastructure projects in FY 2006. General Information Town of Lexington Statistics Population: 30,355 Land Area 16.64 sq. mi. Registered Voters: 20,286 Municipal Government Statistics* A # of Employees: Full -Time: 272 Seasonal/Part-Time: 54 A # Emergency (Fire/EMS/Police) Calls: 15,789 A # Miles Public Roads: 126 A # Miles of Water Mains: 158 Sewers: 154 A # Acres Conservation Land: 1320.7 A # Participants in Recreation Programs: 105,000 A # Building Permits Issued: 1124 A # of Library Materials in Circulation: 456,202 Lexington Public Schools Statistics* Q # of Employees: 846.19 Full -Time Equivalent L11 Over 500 staff members hold advanced degrees Q Per Pupil expenditures (less fees): • FY 2004 - $10,650 • FY 2005 - $10,654 Q Enrollment: • 2003 -04 - 6,120 • 2004 -05 - 6,133 L11 Average class size: • Elementary - 22 • Secondary - 24 to 26 L11 LHS Class of 2004 Statistics • Graduating Class - 410 students • 93.4% pursuing post- secondary education *Stafrsties Cover either FP 2005 or the year ending Dec. 31, 2004 What the Budget Accomplishes Municipal Restoration: The FY 2006 Budget contin- ues an effort to restore essential government infrastruc- ture reduced in previous years. In FY 2006, municipal government received a partial restoration which in the long -run will make service delivery faster, more efficient and more affordable. These positions included: Operational Support Staff (Town Clerk, Fire Administration, Library & DPW), Reve- nue Generating positions (Assessor's & Revenue Offices) and a further commitment to public safety, an additional Night Dis- patcher (Fire/Police Dispatch) Fiscal Flexibility: The FY 2006 budget was built with s an eye to the future - and to Lexington's continued fis cal stability. To that end, the FY 2006 Budget included over $600,000 for reserves in the Town's Stabilization Fund, bringing total forecast undesignated reserves to over $3.8 million by the beginning of FY 2006. This is a good start to re- build Lexington's reserves to the levels of peer communities. The Town is also undertaking a review of its fiscal policies to aid future year's decision - makers in their efforts on how to best util- ize the Town's limited resources. Capital Investment & Planning The Town of Lexington continues its programs to repair, re- f Tf'7�,. build and remodel its capital assets. The FY 2006 Budget raises revenues for debt service on several projects, including Cary Library, multiple school projects, ongo- ing road reconstruction, and Lincoln Field. Money for the design of new facilities, including the DPW Operations Facility and the School Administration Building is also included. Resources are also allocated for the purchase of public safety vehicles neces- sary for our employees to effectively serve citizens. (con't) y Online: ab Town: http: / /ci.lexington.ma.us M School: http: / /Ips.lexingtorLma.org 0 Town of Lexington - FY 2006 Budget Summary Expenditures Expenditures total $130,617,313 which amounts to a 3.9% increase over FY 2005. The dollar bill on the front cover details ex- penditures as cents of a dollar. The FY 2006 Budget acknowledges that certain drivers are increasing expenses. They include: • Health Care: Costs associated with benefits will in- crease between 9 -10% in FY 2006, a moderate increase compared with previous years and surrounding munici- palities. • Facilities & Utilities: Costs to maintain, operate and renovate all Town properties are increasing in FY 2006 Driving this increase is between 12 -20% increases in Lexington's debt comes in two formats: Exempt debt (debt which is not within the Proposition 2 %. tax -levy limit) and non - exempt (or within -levy) debt. Exempt debt is paid for with taxes raised over and above the property tax levy limit as identified by Proposition 2 %. Projects that are exempt require a public vote to allow increased taxes only for the period until the debt is retired. Within -levy debt must be raised and paid for within the tax levy. Each year the Town of Lexington sets aside money for servicing (paying down) the debt. the costs of vital utilities - natural gas, electricity and heating oil. New buildings (schools, Cary Library) are designed to be much more efficient than before. However, modern building codes have greater safety and environmental requirements that increase operating and maintenance costs. • School Enrollment: Mandated costs for transportation and special education have not decreased although state revenue has continued to decline, and now stands lower than where it was in FY 2003. • Debt Service: As Lexington citizens have committed to improving their capital infrastructure with new roads, schools, a li- brary and athletic facilities, many of these projects have been funded with debt Debt service in FY 2006 is lower than FY 2005, but still represents 6.5% of the total FY 2006 Appropriated Budget • Retirement: Costs associated with retirement are up this year over last year because of the FY 2004 decision to take a one- time pension holiday and the Early Retirement Initiative. Accomplishments (con't) Debt Educational Services: The Lexington Public Schools continue ensure that our schools are safe, nurturing and re- e- sponsive places where all students can thrive and excel. This effort is El based on educational practices which emanate from and support our long standing core values of • Individuality and Diversity • Continuous Improvement • Shared Responsibility In FY 2006, the Lexington Public Schools pri- orities include: Ensuring the Safety and Health ofAll Children, Emphasizing Curriculum and Instruction and Maintaining the Infrastructure within which Teaching and Leaming Take Place. To achieve these, the schools will work to repair and maintain our facilities and equip- ment, maintain class sizes, encourage profes- sional development, continually evaluate the effectiveness of curriculum areas and institu- tional practices, evaluate and improve our tech- nology infrastructure, promote equity between schools and programs throughout the system, and strive to contain costs wherever possible. We are grateful to the citizens of Lexington for their ongoing support of the public schools and we look forward to continue developing and nurturing our children together. Mafor Expense Categories Category Amount Operating Expenses $126,281,916 Intergovernmental Charges & Assessor's Overlay $2,498,750 Articles & Capital: $1,836,647 Total $130,617,313' Within -Levy Debt Service for FY 2006: $3,210,750 Exempt Debt Service for FY 2006: $4,943,313 After authorization from Town Meeting, debt is either temporarily or perma- nently issued. Temporary borrowing is utilized both for smaller -scale projects and large -scale projects when the Town attempts to secure a better interest rate, state reimbursement or other fiscal advantage. In recent years, cash capital pro- jects, including minor building renovations, equipment purchases and other fa- cilities maintenance have been financed through short-term (three to five year) borrowing. The Town has recently issued temporary bond anticipation notes (BAN'S). The most recent issuance was in April 2005 where $2,620,000 was issued for vari- ous municipal and school projects. The Town continues to take advantage of historically low interest rates and our long - standing "Ann" rating* to leverage the lowest possible debt service. Accounting for existing authorized and issued permanent debt, the total outstanding debt for the Town of Lexington as of Feb- ruary 1, 2004 comes to approximately $83,917,000. The Town of Lexington generally issues both temporary and permanent debt annually in late winter. Outstanding bond authorizations are reviewed annually, and any unneeded amounts are brought to Town Meeting to be rescinded. *The negative outlook placed upon Lexington's" Asa" bond rating was lifted in April 2005. Phone: ab Town: (781) 862 -0500 Q Schools: (781) 861 -2580 M_ Town of Lexington - FY 2006 -2010 Budget Summary FY 2006 -2010 Capital Improvements Plan Capital Planning is important to the long term viability of the Town. In order to meet the continuing service demands of the community, maintaining Town assets is just as important as providing the op- erations themselves. Shown at right is the list of capital pro- jects approved for FY 2006. This list is the current year of the FY 2006 -2010 Capital Improvements Plan. The Town of Lexington uses five -year planning to ade- quately predict what capital needs will require attention in the near term. Both large scale projects (Street Improve- ments) and smaller projects (Playground Improvements) are included in this plan. FY 2006 Capital Projects Cost Cost SCHOOLS = I COMMUNITY SERMCES(DPW(con't) Doorfonts - Bndge, Bowman &LHS 75 000 DPW Facility Design &Planning ]20,000 Extenor Lighting - Systemwide 100,000 Street Improvements' r 960,000 Bridge & Bowman Intercom & Phone Replace. 125000 PUBLIC SAFETY i Elec. Generators (Diamond M . & Portable) 140,000 Replace Rescue Vehicle 165,000 System -Wide Equipment 143500 Public Safety Communications Study 50,000 Central Office Design, Planning & Repairs 300000 .RECREATION Clarke M . Heating &Cooling Controls 456500 Playgrounds & Rec Facility Imp . 65,000 COMMUNITY SERVICES(DPYO Pine Meadows Golf Improvements 3 50,000 Sidewalk Improvements 50000 1 SUPPLEMENTAL CAPITAL Traffic Signal Improvements 100,000 Supplemental School Capital 125,000 Building Envelope 150,000 Supplemental Municipal Capital 248,000 DPW Equipment 485 000 Supplemental Fske Elementary 1 575,000 TOTAL $6,363,000> All projects funded through general fund borrowing unless specified otherwise. 1- State Aid 2 -2001 Werrme 3- RecEnt The Town of Lexington's major capital policies are intended to ensure adequate funding for capital investment. Enterprise fund capital projects are funded through Water, Sewer, and Recreation enterprise funds. Large capital projects for which long -term borrowing is appropriate are generally proposed for debt exclusion. In the immediate future, this may include projects such as a new Public Works Facility, a new School Administration Building and the continued replacement of elementary schools. Finally, the Selectmen set a goal of allocating five percent of general fund revenues annually to debt service and cash funding of smaller capital replacement or renewal projects. A number of needs have constrained the amount of funds available for capital needs in recent years. Long -run capital policies are being reconsidered in the context of other financial policies and the overall fiscal health of the Town. Budget Process The FY 2006 Budget is the product of hundreds of hours of service from the Board of Selectmen, the School Committee, the Ap- propriations Committee, the Capital Expenditures Committee, and staff. The budget process began in late September 2004 and the respective boards held a series of 7 collaborative policy guidance sessions from November through the end of April. During these meetings, broad topics such as what level of service the Town should provide its citizens, what level of fiscal reserves is prudent to maintain, and how the Town can increase efficiency were discussed. Goal Setting - Staff Development- Board of Selectmen Deliberation Q Goal Setting - Staff Development - School Committee Deliberation Budget Collaboration - Town Meeting FY 2006 Budget July 1 January 1 June 30 2007 & Beyond Future years budgets will continue to present significant challenges for policymakers, elected officials, Town staff and the com- munity. Lexington made significant strides with the FY 2006 budget, restoring positions previously eliminated and helping to improve its reserves and overall financial flexibility. To continue this progress, everyone will have to keep in mind serious issues going forward: • Operating Override (s): Although FY 2006 was balanced without an operating override, future budgets may require them. • Reserves: Fiscal prudence and good management dictate maintaining cash reserves. • CPA: Town Meeting approved sending the CPA (Community Preservation Act) to the voters in March 2006 • Debt Exclusion (s): Town Meeting approved studies of a new DPW Facility and School Administration Building - possibly to be paid through a Debt Exclusion.