===OCR macOS Vision===
===PAGE 1===
Finance Committee:
Mark Erickson, Chairman
Terri Burchfield, Vice-Chairman
John Henshaw, Secretary
Karin Menard
Jay Simeone
17 Main Street, P.O. Box 135
Lunenburg, MA 01462-0135
978.582.4139
FAX 978.582.4148
RECEIVED & FILED
Lunenburg Finance Committee
Minutes February 11, 2016
FEB 18 2016
Location:
Town Hall
LUNENBURG TOWN
CLERK OFFICE
Present:
Mark Erickson, Terri Burchfield, Jay Simeone, Karin Menard, John Henshaw
Also Present:
Kerry Lafleur, Town Manager, Karen Brochu, Town Financial Manager/Director of Municipal
Finance
1) Mark E. called the Finance Committee meeting to order at 7:00 pm. He announced that this meeting is
broadcast on the Lunenburg Public Access Cable Channel. The video recording is posted on YouTube at
https://www.youtube.com/user/LunenburgAccess and select Finance Committee 02.11.16.
2) Comments:
a. Public: None
b. New Communications:
i) The Planning Board will meet at Town Hall on February 22 at 6:35 pm at Town Hall to hear and
discuss a modification to a site plan review concerning the facade and proposed signage of a pet
services facility at 339 Electric Avenue.
il) Mark stated that the Finance Committee currently has five members--two members short of a full
committee and only one member more than the quorum. It's a great opportunity to join the
committee at the beginning of the budget process and learn a lot about Town finances. He invited
anyone interested in joining to fill out a talent bank form at the Town Clerk's office.
iii) Mark circulated the February issue of The Beacon to the committee.
3) Town Manager's Preliminary FY17 Budget Recommendation presented by Kerry Lafleur
Note:
These minutes are an overview of the Town Manager's budget recommendations for FY2017
with a focus on her explanation and rationale. For specifics details a link this presentation, the
Capital Plan, and the Debt Service Schedule is EY2017 Budget Recommendation
A printed version of this presentation is attached to the copy of these minutes in the Town
Clerk's office.
i) The recommended budget shows what the Town can afford, not what we want or need; when
department heads make their budget presentations they will describe how these funding levels would
affect services.
b. This budget:
i) satisfies the Town's financial policies,
il) funds operating from recurring revenues,
ili) funds all contractual obligations,
iv) doesn't draw on free cash to fund operations, nor on stabilization funds.
v) includes everything in the Governor's budget except the proposed increase in Chapter 70 aid as Kerry
is concerned about push-back on this during the legislative process.
• Note: If the Governor's proposed increase came to pass, that would mean about $291,000 in
additional Chapter 70 aid. If the Town received any additional Chapter 70 aid, Kerry
recommends it go to the school department.
vi) includes $119,000 in 40S aid, which had been uncertain but has become more settled at least for
FY17.
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c. Figures not yet settled, upside potential, or challenges the Town faces:
i) Unsettled issues:
The level of state aid has not been finalized.
• Monty Tech assessment has not been formally received.
• It is difficult to support any additional personnel until the Town can quantify future costs in
particular of employees. Data on this has been hard to gather.
ii) Upside Potential in revenues:
• New growth may exceed budgeted amount.
• Motor Vehicle Excise tax, ambulance fees, and local option meals tax are growing fast.
ili) Challenges: (See point 4 below for more information and for other future challenges.
•
Health insurance renewal rates, the prospect of a high tax on the PPO health insurance plan
starting in 2020, and the annual increases of 8% to 10% in the retirement assessment.
4) Kerry's Recommendations of Issues to Address:
Discuss and/or decide the principle goal of the Town's budget process:
o arrive at a balanced budget and rund service levels from that, ol
to aim at a different level of service and work toward a balanced budget
Revisit the Debt Policy section of the Town's Financial Policies in light of the information needs and
perspective of the rating agencies. Karen Brochu is working on a draft of this policy for the consideration
of the committee.
L Develop a more comprehensive capital plan going forward, which would include establishing
guidelines linking the timing and amount of non-exempt borrowing available to fund large capital projects
indexed to perhaps FY16 non-exempt debt levels. Per Mark's observation, this is within the levels set by
the financial policy. See presentation pages 13-15.
• To set the stage, the Town should not borrow to fund capital projects until that more
comprehensive plan is in place.
• Health Insurance:
• FY17 renewal increase is 12.8%
> Starting in FY20, the federal government will impose a 40% tax on high cost plans, and the
Town wants to avoid paying this tax. There is some risk with the Town's PPO plans
assuming inflation of around 8% per year.
• The retirement assessment is an 8.7% increase this year and the Town will see 8% to 10% increases
in this assessment until 2040 when the Town's unfunded liability will be paid off. See presentation pages
16 & 17. The Town will pay out pension costs of nearly $166,000 in FY17.
• The Town's total unfunded pension liability is $14,700,000; on an annual basis the payment will be
$900,000 in FY17. This will increase each year.
5) Chapter 70 Funding Resolution:
a. John moved that the Lunenburg Finance Committee call on the Massachusetts Legislature and the
Governor of Massachusetts to fully fund and adopt the recommendations of the Foundation Budget
Review Commission, Karin seconded.
Mark briefly listed the focus of the recommended changes was special education, English language
learners, and the impact of benefits in the formulas. The committee approved the motion 5-0.
6) Review of Minutes:
a. Minutes of January 28, 2016 Meeting: Terri made a motion to approve these minutes and Jay seconded
the motion. The committee approved the motion by a vote of 4-0. Karin abstained as she did not attend
the meeting.
b. Minutes of February 4, 2016 Meeting: Terri made a motion to approve these minutes, and Karin
seconded the motion. The committee approved the motion by a vote of 5-0.
7) Budget Goals and Opportunities: There was no discussion at this meeting.
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===PAGE 3===
8) Committee and Department Updates:
Committee/Department
DPW-John H.
Capital Planning-John H.
Public Access Cable-John H.
Library-Terri B.
Public Safety-Terri B.
Schools-Karin M.
Monty Tech-Karin M.
Council on Aging-Karin M.
Sewer Commission —Jay S.
Green Task Force-Jay S.
School Bldg. Comm.--Mark E.
Building Re-Use-Mark E.
Update
No report.
No report.
The PACC postponed its meeting of Monday, February 8 due to
the snow storm. The meeting was rescheduled to Monday,
February 22.
No report.
Chief Marino wanted to make sure it was clear how the vehicles
were being recycled and that there were no lingering questions
or issues.
No report.
No report.
No report.
No report.
No report.
At the 2/10 meeting there was a discussion on the comparison of
turf fields with sod fields in terms of cost and safety. There is
more work to be done on this. The committee voted to approve
change order #8 for electric work, revised door entry system,
and integrated walk-in freezers at a cost of $17,000, bringing the
total charges on the contingency account to a little over
$200,.000. Construction is 79% complete.
The committee recommended to the BOS that the Town to re-
purpose TC. Passios for municipal offices, either in whole or in
9) Next meeting: February 18, Police and Fire Departments present their budgets.
10) Adjournment: Terri made a motion to adjourn and Jay seconded the motion. The committee approved the
motion 5-0 and the meeting was adjourned at 8:50 pm.
Respectfully submitted by John Henshaw February 17, 2016
Attachment: Town Manager's Proposed Budget Recommendation FY2017
Mn-FY16-160211-Draft.xIsx (local and remote drives)
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===PAGE 4===
Town of Lunenburg
Proposed Budget Recommendation -
FY2017
February 11, 2016
Kerry A. Lafleur, Town Manager
FY2017 Recommendation
- Disclaimers
• Recommendation still contains a number of
assumptions, but fewer than the Financial
Forecast.
• Assumptions will firm up as we get closer
to Town Meeting- assessments insurance
renewals
• Uncertainty around State Aid
1
===PAGE 5===
FY2017 Recommendation
• Focus of the presentation is to talk more
about what we can afford versus what we
need or want - Target Budgets
• The department manager's focus when
presenting is to talk about what each
department needs or wants to best fulfill it's
mission
• Define terms: Municipal and School
Preparing the FY2017 Recommendation
• Going forward, more discussion on budgetary goals
would be helpful
• Is the main goal solely to produce a balanced budget?
• Are we attempting to get to some other service level?
• Matching dollars with service level needs, i.e. no "flat" increases
• Minimal Strategic Investment for Maximum Impact-
Administration (additional hours in Assesso's Office & combined position in Conservation) &
Transportation
• Recommendation is roughly equivalent to FY17 Target Budgets
with notable exceptions:
• Debt Service
• Unclassified & Retirement Assessment
2
===PAGE 6===
FY2017 Recommendation
• Funding to cover all contractual salary increases
• Budget Targets are roughly equivalent to level
services
• Meets Town's financial policies
• Deposit back to Stabilization Fund to get to 5%
• Balanced budget proposal is based upon use of
recurring revenues for operating costs, meaning
there is NO request for a draw on either Free Cash
or the Stabilization Fund
FY2017 Recommendation - Challenges
• Revenue:
- State Aid
• Expenditure:
• No Health Insurance Renewal
• No Monty Tech Assessment
- Retirement Assessment, received but big
increase
3
===PAGE 7===
FY2017- Revenue Estimates
• Sources of Revenue
• Property Tax
• State Aid/ Cherry Sheet
• Local Receipts
• Available Funds
FY2017- Revenue Estimates
Local Receipts,
$2,858,802;_
7.75%
Available
Funds,
1,804,186;
votery a
245.9511
===PAGE 8===
FY2017 Revenue Estimates
Resense
State Hid
Local Kecelpta
Available Funds
F7201
FY1015
Appropriated Aerecap After Recap
FY2017
FY2017
FY:017
Forecast
Targel
IN Dolarincrease
Recommend. ever Prick Year
S.20245,882 6 22105028 5.23.524,025 6 24315,73P 6 26315,739 S 24,579842 6
1,053,616
$ 635510157194530S 7513192 6 2323,091 S 7,699091 S
5,546,233. 6
127,542
1: 2920 1 4032) 3002 8 20097 5 120811 104008 16791
LS 31,511,361 $ 30,203066 5 35,433425. 536285,363 5 36,613,305 - 5 36,868,863 5
1435,435
FY2017- Property Tax
• Property Tax -
• Prior Year base plus 2 ½% increase ($525,979)
• Estimate for New Growth ($300,000) - next slide
• Overrides & Exclusions- capital, debt
• No Override proposed
• Debt Exclusion - increase to cover MS/HS Construction Project
Debt Service, total = $2,714,483
• MS/HS Project = $1,893,018 (est. impact on Avg AV = $405.51)
• Other = $821,465
Overall Increase Is 4.49%; 0.93% of which is to support new exempt debt.
State Law requires you to assume 100% collection rate
Estimate for FY2017 = $24,579,642
5
===PAGE 9===
FY2017- New Growth
20.000
- 140000 3
...... _27.49
eative Cocatrudio
.......5:5000
OH Gronth
Emeras Prese
..Antage Lod Value
.33,500
Valen
2000.000
e 171,00
21:,400
_ 12000 s.
Poteesial Grants Vaive
PostarTAx
.2027.000 3.
... 43.300
5 Completo
100 5
potentia coits Vain
* Posental Tax
80003.
212.000 $
130200 3.
Urt Me sorten
172000
2500,500
100 3
1,521
alasses servisa 1
18,220,700
FY2017- State Aid
• Governor's Budget, House 2, was released on 01.27.16
• During his tenure, Gov. Baker has shown himself to be an advocate
for cities & towns
• Budget Proposal provides targeted funding to meet key goals which
directly impact cities & towns
Investing lu Great Communitles:
increases restricted local aid by 4.3% equal to 100% of the consensus revenue grossh rate for state lax revenue.
Continues the Commialty Compact program to proside technical assistanco to over 100 commusities in financial planning.
economic derelopment, resionalizaion and antes program to crea a domestic violence prevention training toolkit for
conmumties.
Maldug Massacbusetts Schools Great:
Increaser Chapter 70 educaion funding by 572,1 million.
Supports $13.6 million for a redesigned quality kinder forten grant program to assist commusinies iz achieving tuition-free.
Adds over $20 million for a revised charter school reimbursement formula to reimturse touns.
Supports the development of a next generation MCAS mith S5.6 million.
Directs frads to support children and families who are mos a risk in anumber of ways, including
SS.3 million for over 1,500 rouchers for the Department of Transitional Assistance's (DT A) Stabilizing the Working Poor
initiative:
$4.3 million to fund 600 childcare touchers for chuldren in DCE care;
St million for qualiy improvements at Early Education and Care for bener assessmens, accrediacion assistance, and
professional development.
6
===PAGE 10===
FY2017- State Aid
• Included Governor's Proposal for all lines except Chapter 70
• TM Recommendation: 2.1% increase in Chapter 70 = $122,524
• Governor's Proposal includes 70% reduction in "Over Effort."
Current is 50%
• Most communities will only see minimum aid of $20/ student
• MMA is lobbying for minimum aid of $100/ student
* If Governor's Proposal holds, that means an additional $291,593
• 4.3% UGGA ($41,919) ; 23% lower than FY2009, $300k
• About $560k lower if aid had been increased 2.5%/ year
• 40S Smart Growth appears to be 50% of FY2016 eligibility
• Total estimate for FY17 = $7,646,233 an increase of 1.7%
FY2017 - State Aid
$9,000,000
$8,000,000
57,00,000
$6,000,000
$5,000,000
$1,000,000
$3,000,000
$2,000,000
$1,000,000
a Chapter 70
a All Olber
EUGGA
FY
2007 $
2006: $
2009 $
2010: S
2011 S
2012 $
2013, $
2014 $
2015 $
2016: S
2017 S
Foundationi
AllOter Chaper70 Dollar Increase Enrollment)
1,295,240 S
696,354 $
3.921,700
16-17
1,316,140 $
- 665773: 3 431.29 S
382550.
1865
1,316,140: $
701,456
4,620,790
303.531
1641
831,318: S 555416S 4,528,374 ....
(92,416)
094,449 $
589,474
4,498,396 $
(29,978)
1N22
828,T77 : $
584,063
4522,645 $
24,149
1505
1576
894,449 $
604.373 $
.5218.007: S.
894,449 $
806,258
897.392....
16:30
5354,696: 5
134,759
1607
915,E02 $
673.166. $
5,606,672: $
251,176
1627
940.983 $
743,026 $
5834,483 $
226,611
1,016,717: $
872449 $
6,243,530! $
414,047.
7
===PAGE 11===
FY2017- Local Receipts
• Local Receipts = increased $167,032, or
6.21%
• Motor Vehicle Excise Tax, licenses, permits, fees,
fines, investment income
• Elastic Revenues- very dependent upon the
economy
• MVX is the largest component; first indication of
what is happening is through Commitment #1,
issued in February
• Commitment was up $165,040, or 14.5% (prior year was
+5.6%)
• Estimate for FY2017, 5.0% increase (each 0.5% = $7,350)
FY2017 Revenue Estimates
• Local Receipts
• 2% increase, except where noted
• $47k increase in Dept Revenue (Ambulance)
• Local Options Meals Tax, collections strong, 20%;
$19,680
• Solar Net Metering Credits - $120k
• Department Revenue- Schools, decreased to eliminate
FFLAC Rental Income. If lease is extended, fee will offset
operational costs, currently not included in budget recommendation
8
===PAGE 12===
FY2017- Revenue Estimates
• Available Funds
• Catch All Category
Some one-time revenues, causing a wide variance from year t
rear; difficult to make comparisons between vear
• SBA Reimbursement - $534,198
• Water & Sewer Betterments
• Fully fund associated debt service & related costs
• Sewer Enterprise Fund to fund Indirect Costs
• Prior Year Unexpended Articles for Capital, $0
• Free Cash Appropriation to partially offset Capital, $250k
• School Transportation Fee Offset, $31,623
FY2016-
Revenue Estimates Summary
Property Tax
State Add
Local Receipts
Avalable Funds
total;
Revenue Source
PY Unused Lery
Property Tar
Nety Growth
State Aid
Local Receipti
Available Funda
total for Operations S
Exempt Debt Seccice S.
Annual Total: S
S 33703066 $ 35.03125 |S 36295,315|S 36119315 5 36859862:9 2485138
Dollar Aurount.
10,000
$25.979
300,000
127,41
167032|
105449
1,235802
219.636
1,455,438
•Opportunities:
•Uncertainty around State Aid
•Potential for slightly higher New Growth
•Potential to increase MVX estimate
===PAGE 13===
Expenditures — what & who?
• Service Provider Organization
• Demand for services doesn't decrease due to lack
of funding
• Town provides services
• Services to students
• Services to seniors
• Services to residents
• Focus on service levels, not employees
• Allocating resources to services
Expenditures - how?
•• Expenditures are divided into:
• Functional Categories (Departments)
- Non-Appropriated Costs
• Sewer Enterprise Fund
• Water Enterprise Fund
• Solid Waste Disposal Enterprise Fund
• Other Warrant Articles with a Financial Impact
10
===PAGE 14===
Forecast- Projected Deficits
•Forecast:
Expenditures
FY2017
Forecast
2018 72019192020
FY2020
5 33,003056 $ 35433423 $ 36295345 $ 35,154S65 5 33102334 | $ 39,071,691 | 5 39999,70
53507536S 33483423/S 36705275 5.37366952 5 13661262 9 39916004 5 41.19319
Differess: 5 201211 5
•Target:
Revenue
Expenditures
Dillitence: S.
5 20120 5 434235(70313 5 3614345 8 36,9563
201,211 : $
(N10,133) S
»Each department was given a Target based upon Forecast
Vo additional deficit created between Target & Recommendation because I was able to make a couple of revenue
adjustments + $143,518 (net is $107,472 if you back out exempt debt & sewer debt
Above Target Requests total $766,359, none of which have been funded.
21
Forecast vs Target
Revenne
Property Tax
State Aid
Local Receipts
Available Funds
total:
260,903
(26,821)
67,878
S 141,559:
143,518
«Property Tax: $235,902, exempt tax & $25,000, additional New Growth
•State Aid: everything but Chapter 70
•Local Receipts: Adjustments in MVX, Ambulance Receipts, Meals Tax
•Available Funds: Sewer Betterments & Sewer Indirects
11
===PAGE 15===
Expenditures
• Above Target Requests:
• Police Department - $207k for 3 Patrol Officers & additional
funding
• Fire Department - $210k for 24/7 ambulance coverage in Target,
but not included in Recommended Budget
• Dispatch- $35k for weekend coverage of Desk
• Lunenburg Public Schools - $313k to fund Superintendent/ School
Committee Recommended Budget
FY2017 All Expenditures
Non Appropriated, —
4.39%
Human Services, 1.78%
Capital, 1.68%.
General Govt, 3.68%
_ Other, 0.23%
Employee Benefits, 10.03%_.
Debt Service, 13.17%J
Public Safety, 7.35%
L Public Works, 6.21%
12
===PAGE 16===
FY2017 Expenditures-
Non-Discretionary
Debt
Unclassified
Retirement Assessment
Cherry Sheet Charges
Less-Discretionary
Education
Public Safety
DPW
Discretionary
Solid Waste
Library & Senior Center
Administration & Land L: $
4,856,831
2,648,151
1,051,795
1,620,392 $
18,991,679
2,711,010
2,115,147 S
174,150
482,685
1,531,684
$
10,177,169
28.13%
23,817,836
65.83%
2,188,518
36,183,523
6.05%
100.00%
FY2017 Capital
Priority 1.
Order:
CP.
Trackar
PD18-12
PD16-07
LPS16-21
LP$16-20
DPW17-01
DPW16-11
DPW17-04
DPW16.07
TECH16-25
FD16-13
LP $16-19
PD 16-16
11
12
• Stam:
Police Veticle, Units 207 & 210
Bureprod Vests. 29 Oftcers
THMS. Phone System Replacement
THMS. Intercom Replacement
i Townsend Harbor Road Bridge
Cach Basin Cleaner Attachment
Mack Dump 6-Wheel, flow & sand
GiC Cump 350(1-on play)
Torn Departments (Techanciogy)
Pickup. 4x 4(11) Replacentent (2009)
THIS. Astesios Abatemerd/ Celling Replac entent
4Wheal Drive, All Terrain Off Road Enforcement Vehicle
Total: $
07.000:
7,500, S
22.000 S
22,000 | S
15,000 $
87.125 S
194,750; S
63,300 $
30,800
70,000 S
145.000: S
16,500 S
780,975
Cumulative:
Cost
107.000
124,500
146,500
165.500
183.500
270.625
455,378
618.675
549.475
819.476:
764,475
780,975
«Recommendation only includes funding of items 1 - 10.
wIf additional funding becomes available, other than Chapter 70, I recommend that it go toward
funding items 11 & 12
I recommend agalnst borrowing for capital as was done in FY15 & 16.
13
===PAGE 17===
FY2017 Expenditures-
Non-Discretionary- Debt Service
• Total appropriation = $4,856,831
• Increase of $219,636
• Includes annual payments for FY15 & 16 Capital - $258,047
• Includes annual payments on $33.625M for School Construction
- $1,893,018
FY2015!
Total: Debt Service
FY2017 ;,
After Recap
FY2017
Target
TM Reccom.
52975,055 5 4557920|5 4523519 5 4.523,519 S
4.556,531
offsets:
Tax, Outside Prop 21/2
Sewer Betterment
Water Betterment
Septic Receipts.
Bond Prentium
MSBA
Net Impact General Fund
51031,125 8 2491847 5. 2478581 S 2478551 S . 271/53
770,439
5756,575 S
745,411: 5
7aS,411| s
S+S,585
62,751|$
62,781 S
10,565 5
108S10,863S
62231 5. 103661g
62,781
63251 S.. 10,369
3,278 | S
- S
2424: 5
2,42+|s
2.*24
334799 S 334199 5.
33199553299 S
53-1,198
565,465 5
698,317 |S.
686.227 5.
696,227 S
653,491
Debt Service, All Outstanding
Issues
Exempt vs. Non-Exempt Comparison (Net of Other Funding Sources)
Non Exempt * (xenal
$1,000,000.00
$9,500,000.00
$3,000,000.(0
$2,500,000.00
$2,000,000.00
$1,500,000 0)
51,000,000.00
$500, 000.00
s.
Notes:
1. All existing Non-Exempt Debt with Impact to the Cuerating Budget/s pald oft as of june 30, 2029.
2. Signtlicant drop In Non-Exempt Debt with Impactto the Operating Budget in FY2018 ($144,644); FY2019 (5129,801); FY2020
($163,079); and FY2024 ($118,304)
14
===PAGE 18===
Non-Exempt Debt
Redy: Deal-itere
Secretanet
O281 13: NO SEN
16,2300 S
1e625 (0:3
%B00'5
Non-Exempt Debt
AllOuistanding
Coersing Fussel
Gronerusina
6055a47er0
BFERO2E20E
BEE
FEE
Ca0300 313020303 860222122 S530000,03
15
===PAGE 19===
FY2017 Expenditures,
Unclassified
• Insurances-
• 3.5% increase in General Liability & 3.5% Worker's Compensation
• 2 years of 0%; in FY15, locked in no greater than 2.5% for FY2016
- 5% increase Police/ Fire IOD
• Health Insurance Renewal at the cap of 12.8%, due to poor 24-month
loss ratio
* Net Impact to Municipal is about $178k which is about 10%. Retirees renewal is on a
calendar year basis, and has generally been more favorable.
• Net Impact to School is about $158k (in recommendation, based on 8%) + $96k for
additional 4.8% (not in recommendation)
Public Employee Committee Agreement expires June 30, 2016.
New Agreement must contemplate plan design change to reduce the FY17 renewal and
in preparation for implementation of Cadillac Tax
- Other Post Employment Benefits Unfunded Liability
-Biennial Valuation + funding to work with Actuary to draft a funding strategy
FY2017 Expenditures,
Retirement Assessment
Summary of Member Dala
Active Members
Vauation Sabry
Avarage Sals;
Retired Mombers & Beneúciaries
Total Annust PanalonS.
Average Annual Pension
.is.
Disabled Members. Accidental
Total Annuat Pansion
....Aserace Annual Pansion.....S
Disabled Atembers. Ordinary
Average Age
Total Annual Pension
Average Annual Pansan
hacive Members
Annuity Saings Fund
Momber Unit
190.59
5030
12.10
4.438.576.00 $
37,413003
78.00
73.50
1.291.336.00 S
1450200 S
7.00
68.50
179.65200/$
25.050.00 S
1.00
571800 S
5.718.00.5
43.00
329.061.00 S
6411.00
... 43.20
10.50
252222491,00
39,437.00
.....2040.00
74.10
$9.133.380.00
....17.318.00
242.00
63.50
6,540,337.00
...30.951.00
25.00
63.40
593,903.00
16,969.00
16
===PAGE 20===
Retirement Assessment
Unfunded Actuarial Accrued Liability as of January 1, 2014.
Actuarial Accrued Liability
Actino Members
Disabled Meniters, Accidental
Disabled Members. Crunary
inactice Members
coral AAL-
Unfunded Actuarial Accrred Liablity
FY2017 Aspassment
Employer Mermal Gos: (Beneft - Employee Contrib + Admin Costs)
Payment on UNL
Paymeni on 2002 ERI
Payment on 2003 ERI......
Payment on 2010 ERI
Total Assessmert:
early payment discount
11.404.611: $
12.670.335 S
1.699.243 i S
97.167: 8
329.061 | S
26,200,417. 5
,200,417
191,900
1.708.617 $
165.797 5
906.232 s
• S
1,072,029 : $
1.051.795 s
610 651,639
454076903
73.406.173
6 516.349.
12 940975
1,087,592,039
.067.692.03
183.31617
699.245.668
9.253.061
35.970.079
1,321,551
259.106
5.810
46,814,607
45.930.992
Retirement Assessment
Bployer formal Cos
..Paymerson UAL"
Totel Asesament
tests
165,797 S
906.232. s
sally payment count
1,04
1012009
s0su9s
•FY2017 Assessment is $87,761, or 8.7% higher than FY16
17
===PAGE 21===
FY2017 Expenditures-
Less Discretionary & Discretionary
All municipal depts generally funded at Target, which generally means "status quo,"
but losing ground each year due to increasing service demands
* No increases in Police or Fire personnel
• Fully analysis of current & future costs needs to be conducted before any
proposal for increased staffing levels could be presented
Pavement Management is underfunded; BOS will unveil a plan next month
Stormwater Management will become an increasingly urgent
School at Target, but $312k below S/ SC recommend. + additional health insurance
expense +$96k
• Above target requests are to meet the needs of the district
Grade 3 teacher; Office Clerk at MS/HS; Technology Support; Custodian
Jnanticipated Placements; Technology Teacher
Departments will provide an in-depth review of service level needs versus Target
Budget during individual presentations
Highlights- Minimal Strategic
Investment
Transportation
* Conservation administrator
• Increased hours in Assessor's Office
• On the horizon... "light at the end of the tunnel"
• Pavement Management Plan
• Funding proposal for existing turf field
• Energy Efficiency Projects
• Solution for Municipal Offices which may create new opportunity
for consolidation
• Payoff of Non-Exempt Debt creates opportunity to create a
comprehensive CIP funding plan
• Data to make informed decisions
18
===PAGE 22===
FY2017 Expenditures-
Conclusions
• Fully funds all contractual obligations
- Balanced based upon use of recurring revenues for operating
costs; no draw on Stabilization Fund or Free Cash
• Maintaining Level Services (at FY16 Level) to the greatest
extent possible
• Service levels are not what Department Heads recommend &
they don't always meet the service demands, but the services
we offer are good!
• Educational offerings; Class size; Public Safety; Road Maintenance
• Additional Chapter 70 funding should go to Education
Other additional funding should go to fund Capital Items 11 & 1:
Conclusion- Next Steps
- Finance Committee will begin a detailed
review of the FY17 Budget- Feb 18
• House Ways & Means Budget, end of April
• Senate Budget, end of May
• Town Meeting: May 7
• Town Election: May 21
19
===PAGE 23===
Proposed FinCom Schedule
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