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Municipal Budget Proposal Town Meeting, March 6, 2018
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Today’s AgendaSummary of FY 2019 budget
Describing the budget increase and review of
significant cost changes
Discussion of the municipal operations
Review of Reserve Funds & Unassigned Fund
Balance
What the public pays for; debt service
Questions, Concerns, Anything more to discuss
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Town Budget Overview• Spending increases from FY 2017-2018
$208,101 (5.88%)• By section:
-General Fund (overall) up $199,020 (10.04%) -Highway Fund up $9,082 (0.58%)
• Non-tax revenues INCREASE by $122,711, offsetting an additional 2.7¢ of the tax rate
• Municipal tax rate increase 1.83¢ to $.6941• Total increase of $85,390 in tax revenue
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Factors Driving FY 2019 IncreaseThe most significant factors in the budget increase are:• General Insurance costs up $18,000 • Fire Protection Fees to Water Resources up
$12,941 • Police Vehicle Costs increase by $15,260• Employee Health Coverage increases by
$45,957, largely due to increased participation
• General Cost-of-Living of 3% for employees
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Aging Fire Station• Firefighters withdrew department from
the Public Safety Building concept• Existing station built in 1970 and
expanded over time• Station requires safety and other
improvements which are in the process of being evaluated
• Utilizing $90,000 of our own savings towards this in the next fiscal year
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Municipal Tax Rate Increase• Prior year projected tax rate of $0.6858 reduced
to $0.6758 (1¢) through added Grand List value• This year, the proposed tax increase is
$0.0183 (1.83¢) over the current rate to $0.6941
• Impact based on home value: »$150,000 = $27.45 per year ($2.29/month)»$200,000 = $36.60 per year ($3.05/month)»$300,000 = $54.90 per year ($4.58/month)»$400,000 = $73.20 per year ($6.10/month)
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Municipal OperationsHere is an overview of the various Richmond Town departments, staffing, primary functions• Clerk/Administration/Finance – these three areas operate
very closely to manage revenue, payments, payroll, policies and projects
• Police – Chief + 5 FT officers; Community Policing• Fire – All-volunteer department, are paid for response• Planning/Zoning – FT Planner, PT Zoning – Town Plan
and Permits• Highway/Recreation = Foreman + 4 drivers/operators• Library – Governed by the Board of Trustees• Water Resources – Governed by the Water Commission
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What Do You Get For Your Dollar?
• This budget preserves existing programs, services and capital planning
• Major capital purchases in Highway Department of a Tandem Dump Truck and Replacement Grader, although some debt comes off the books this year
• Personnel related costs, insurance and capital equipment are driving the bulk of the spending increase in FY2019
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Projected Town & School Tax Rates 2019
0.6941, 31%
1.5520, 69%
Town Rate
Homestead Education
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Sources of Town Tax Revenue
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Tax Rates Over The Years(adjusted municipal rate only)
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Richmond Town Budgets
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Budget Allocations by Department FY2019
Administration,
$750,566
Assessors, $29,950
Planning/Zoning, $101,671
Police, $690,033 Library,
$222,725
Fire, $307,068
Recreation, $61,050
Charitable, $17,818
Highway, $1,567,105
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Reserve Funding• Reserve Funding functions like savings
accounts• We put money into the reserve through
the budget every year• We can spend money from the reserves
outside of the budget at any time• Largely functions as a safety net for
large capital purchases
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Reserve Funding• The amount we save and the intended
uses of those reserves is decided by the voters
• Town departments list priorities on saving and capital purchases, which may be spent now or at some point in the future
• Reserve spending fluctuates based on current year goals
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Current Reserve Balances
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
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Total Reserve growth over the years
$750,263
$818,687
$1,000,938
$1,075,416
$1,206,516
$1,362,688
600000
700000
800000
900000
1000000
1100000
1200000
1300000
1400000
1500000
2012 2013 2014 2015 2016 2017
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Are we spending or saving?• The Reserve accounts with the highest
balances are:• Bridge and Culvert ($314,475)• Conservation Reserve ($308,719)• Town Center Maintenance ($251,683)• Highway Reserve ($122,463)• Reappraisal Reserve ($122,231)
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Planned Spending of Reserves• The Bridge and Culvert Reserve will be
used for storm water replacements on East Main and Bridge Street, as well as accomplishing deferred maintenance on our bridges
• The Conservation Reserve Fund will spend $235,000; more applications are pending
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Planned Spending of Reserves
• The Town Center Reserve is used for maintenance and repairs of Town Center, the Post Office and can be used for the Library as well
• Recently, the parking lot and roof have been redone, costing $200,000
• The Facilities Review will determine how to spend more of this fund; deferred maintenance on the Post Office is due
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Other Reserve Plans• The Highway Reserve can be used to
place a larger down payment on the Highway Dump Truck and Road Grader than what is allocated in the proposed budget
• There is no planned revaluation of the Town, so no planned use of the Reappraisal Fund
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Minor Reserve Funds
• Most other funds have modest balances
• Used for facility repairs• May be restricted for specific
purposes such as the Adam Mueller Flag Fund, the Recreation Funds etc.
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Unassigned Savings• Positive results of our annual
operations – ie, “Surplus,” reverts to what is known as Unassigned Fund Balance
• Our auditor reports that having an Unassigned Fund Balance equivalent to 25% of the annual budget is “healthy”
• Having this savings greatly helps during unanticipated crisis and need for cash flow
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Use of Savings• Reinvesting our savings into Capital
Expenses is the wisest use• Using these savings should be seen as
“one time revenues” not to be repeated• Subsidizing operational expenses for
the sake of a lower tax rate defers those decisions to a future time, a time where those expenses grow and savings shrink
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What is Richmond Doing?• In recent years we have reinvested
some savings into Highway Equipment• In the current proposal, the $90,000 in
Fire Station repairs is offset by Fire Department Revenue, which is actually using our Unassigned Fund Balance –this capital outlay does not impact the tax rate
• Could more be done? Should more be done? What do you think?
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Change in Unassigned Fund Balance
$417,858
$392,963 $391,489
$565,493
$768,457
$911,121
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
2012 2013 2014 2015 2016 2017
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General Town DebtDoes not include Water System Debt
• 2005 Fire Truck = 2026; $15,000/yr• 2015 Fire Truck = 2021; $56,000/yr• 2015 Dump Truck = 2020; $20,325/yr• 2016 Dump Truck = 2021; $22,000/yr• 2017 Fire Truck = 2025; est. $58,000/yr• 2019 Dump Truck (Proposed) = 2024; $25,000/yr• 2019 Road Grader (Proposed = 2024; $35,000/yr• Jericho Road = 2032; $66,500/yr• Stormwater ARRA = 2032; $8,000/yr• East Main Street = TBD; est. $35,000/yr
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Impacts of Budget Proposal
Home ValueCurrent Tax Rate/Bill
FY2019 base increase over FY2018
Total New Town Tax Bill
$0.6758 $0.0183$0.6758+$0.0183
$150,000 $1,014 $28 $1,042
$200,000 $1,352 $37 $1,389
$300,000 $2,027 $55 $2,082
$400,000 $2,703 $73 $2,776
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Additional Discussions?
Future Capital Needs?Growth Concerns?
Goals?
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