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Home My WebLink About2007 Summit III Revenue Split and Process CalendarBudget Collaboration - Summit Meeting 3 January 18, 2007 7:30 p.m. Cary Hall Agenda 1. FY2008 Operating Budget Budget Overview: Projected Revenues v. Proposed Budget (Town Manager's and Superintendent of Schools) Agreement on FY2008 Revenue Projections. A consensus decision to appropriate $1,000,000 to the Stabilization Fund. 2. FY2008 Capital. • A consensus decision on the $1,330,000 cash capital budget. • Status of School Administration move (not currently in Capital budget). 3. Allocation of FY2008 Revenue between Municipal Departments and School Department. • A consensus decision on the proposal by the Town Manager and Superintendent to allocate FY2008 revenues. 4. Budget Schedule • Budget Reductions and /or At -Risk Budget List • Budget to Appropriations Committee • Mailing to Town Meeting • Tentative Dates for Future Budget Collaboration Meetings Summary of Revenues & Expenditures The summary provided below shows revenues & expenses for the Town of Lexington FY 2006 -2008. This summary reflects unaudited actual results from FY 2006, adjusted figures from FY 2007 and the recommendations of the Town Manager for FY 2008. GENERAL FUND ONLY. Revenue Summary FY 2006 FY 2007 FY 2008 FY 2007 -2008 FY 2007 -2008 Actual Recap Proms Chan W Chance (%) Tax Levy $ 89,868,589 $ 96,010,528 $ 100,010,791 $ 4,000,264 4.17% State Aid 8,603,524 8,304,953 8,117,257 - 187,696 -2.26% Local Receipts 13,321,875 10,448,000 10,519,000 71,000 0.68% Available Funds 2,188,182 4,923,000 4,410,347 - 512,653 - 10.41% Revenue Offsets - 3,145,438 - 1,530,137 - 1,945,321 - 415,184 27.13% Enterprise Funds (Indirect) 1,789,916 1,772,313 1,724,492 - 47,821 -2.70% Total General Fund $ 112,626,648 $ 119,928,656 $ 122,836,566 $ 2,907,910 2.42% Expense Summary FY 2006 FY 2007 FY 2008 FY 2007 -2008 FY 2007 -2008 Actual Adusted Recommended Chan W Chance Education s Lexington Public Schools 60,652,760 63,419,500 70,027,605 6,608,105 10.42% Minuteman Reg. School 830,234 1,024,817 1,000,000 - 24,817 -2.42% sub -total Education 61,482,994 64,444,317 71,027,605 6,583,288 10.22% Municipa1 22,624,947 24,895,327 26,187,036 1,291,709 5.19% Shared Expenses Benefits & Insurance 19,015,811 22,537,951 24,361,872 1,823,921 8.09% Debt (within-levy) 3,417,301 3,720,061 3,742,148 22,087 0.59% Reserve Fund 0 400,000 450,000 50,000 12.50% sub -total Shared Expenses 22,433,112 26,658,012 28,554,020 1,896,008 7.11% Capital Cash Capital 1,153,000 1,195,000 1,330,000 135,000 11.30% sub -total Capital 1,153,000 1,195,000 1,330,000 135,000 11.30% Other Stabilzation Fund 603,647 2,650,000 1,000,000 - 1,650,000 - 62.26% Other 86,000 40,000 - 46,000 - 53.49% sub -total Other 603,647 2,736,000 1,040,000 - 1,696,000 - 61.99% 2007 Operating Reserve 200,000 200,000 Total General Fund $ 108,297,700 $ 119,928,656 $ 128,338,661 $ 8,410,005 7.01% Surplus/ (Deficit) $ 4,328,948 $ (0) $ (5,502,095) Notes: 1 FY 2006 amounts are unaudited. Amounts shown represent initial reconciliations. 3 Assumes COLA for all municipal collective bargaining units. 3 Number as presented by Superintendent of Public Schools on January 16, 2007. Summit III rev. January 18, 2007 }fie Town of Lexington FY 2008 Budget Devlopment Option: Straight Expense Distribution Purpose: To divide revenues according to current expense allocation (Fall Town Meeting) Step 1: Reconciliation Total General Fund Revenue Less 2007 Municipal $ 24,895,327 Less 2007 Education $ 64,444,317 Less 2008 Shared $ 28,554,020 Less 2008 Capital $ 1,330,000 Less 2008 Other /Reserves $ 1,040,000 Less 2007 Operating Reserve (FC) $ 200,000 Incremental Revenue $ 2,372,902 Step 2: Split Incremental Revenue Municipal Split (28.1 %) $ 666,785 School Split (71.9 %) $ 1,706,116 Municipal Revenues for 2008 $ 666,785 School Revenues for 2008 $ 1,706,116 2,372,902 122, 836, 566 Step 3; Deficit Determination Municpal Request Increment Less Incremental Revenues Municipal Deficit (1,291,709) 666,785 (624,924) School Request Increment $ (6,608,105) Minuteman Request Decrement $ 24,817 Less Incremental Revenues $ 1,706,116 G.d......L:.... 1'1..L:..:L C /A 097 172) , Summit III s January 18, 2007 }fie Town of Lexington FY 2008 Budget Devlopment Spring 2006 (Annual Town Meeting) Municipal School Total 23,908,651 27.9% 61,649,492 72.1% 85, 558,143 100.0% Summer 2006 (Override) Municipal $ 24,816,886 28.5% School $ 62,346,492 71.5% Total $ 87,163,378 100.0% Fall 2006 (Special Town Meeting) Municipal $ 24,816,886 28.1% School $ 63,419,500 71.9% Total $ 88,236,386 100.0% Summit III q January 18, 2007 FY2008 Revenue Allocation Model: Proposed Guidelines for allocating revenue between the General Government and Education components. 1. The allocation model will generally follow the model used for FY2007, as endorsed by the Board of Selectmen, School Committee, Appropriation Committee and Capital Expenditures Committee at Budget Summit 4 on February 9, 2006. 2. The allocation model will allow the General Government and Education components to "retain" the addition revenue from the June 2006 override votes and fee increases made after the override vote. 3. The allocation model is based on the total general fund revenues as projected by the Town Manager in his budget presentation to the Board of Selectmen on January 8, 2007. 4. The allocation model is based on the FY2007 General Government and Education budgets as adopted at the November 2006 Special Town Meeting. 5. The allocation of revenues is calculated as follows: • Total FY2008 General Fund Revenue • Less: a) FY2008 Shared Expenses b) FY2007 School budget as approved by the November STM c) FY2007 General Government budget as approved by the November STM d) FY2008 proposed budget for cash capital ($1,330,000) e) FY2008 proposed budget for reserves /other townwide Articles ($1,040,000). I) FY2007 free cash operating reserve ($200,000) • Balance allocated to the General Government and Education components based on FY2007 budget. 6. If there are budget reductions made to the Shared Expense budget, these "savings" will be shared equally between the General Government and Education components except under the following situation: • Any personnel reductions that result in benefit savings will accrue in total to either the general government or education component making the reduction. 7. For any new positions added in FY2008, the cost of benefits (health insurance, dental, Medicare, workers compensation) is the responsibility of the proposing agency. 8. Any reductions in cash capital or reserves will be shared on the same prorated basis that revenues are shared. 9. If the Board of Selectmen or School Committee increases a specific fee -for- service in FY2008 that is greater than the fee or charge in FY2007, those revenues will remain with the General Government or Education budget and reduce any budget shortfall on a dollar- for - dollar basis. 1/17/2007 g Town of Lexington - FY 2008 Budget Schedule & Process Budget Schedule July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April May June Torn Mazray*eti � 2105 Fi Tfernnie; a 2006!2007 Significant Dates September 2006 r w" Summit Financial Indicators & Projections September 2Sh February 2007 - Discuss Budget Guidelines & Drivers ¢$ Summit IV- Gap Closing Early February Budget Decisions & Deliberations concluded Februrary 16th November 2006 Budget Printing &Distribution Mid Late February Summit 11- Revenue Model November 19th March 2007 December 2006 * FY POSH Recommended Budget Submitted to Town Meeting March 1st Municipal Budget Workshops with Selectmen December 1d 11 th Municipal Election March NIL Summit V- RevenuteExpendiWre Revisions &TM Planning 3rd Week of March January 2007 Town Meeting Commences March 2eth Submittal of FY DOW Manager's Recommended Budget to BOS January 8th Submittal of FY i17SH Superintendenfs Recommended Budget to SC January 16th April 2007 Summit III Revenue Split, Expense Review &Gap Defining January lah Town Meeting April BOS- Public Hearings on Budget Late January School Committee- Public Hearings on Budget Late January July 200 Start of FY 2578 July 1, 2170/ Note: Al tines & deadlines subject to change and revision. 0