Transcript City of Chelsea

Andrew Maylor
Town Administrator
October 19, 2010
•
$2Billion State Structural Deficit in FY2011 Will Likely
Lead to Additional Local Aid Cuts in FY2012 if State
Revenues Don’t Increase Significantly.
•
Significant Service Rollbacks Have Been Required
During the Last Several Years.
•
Regionalization Initiatives, Participation in the State’s
GIC health Insurance Program and the Reduction of
Debt Service Should Prevent Additional Service Cuts
and Staff Reductions in FY 2012.
•
The Future Focus Will Be on Enhancing Non Tax
Revenue and Reducing our Energy Costs.
•
We Must Continue the Commitment to Increase our
Reserves to “Best Practice” Levels while Eliminating
our Reliance on One-Time Revenues or We will
Jeopardize the Town’s Bond Rating and Cost of
Capital.
• State Aid is Projected to be Cut 5% in FY12 and Remain
Level in FY2013 with Slight Increases Through FY16;
• Tax Levy and Levy Limit will Grow Approximately by 3%
Through FY2016;
• Charges, Licenses, Fees and Miscellaneous Revenue
Projected to be Decline in FY2012 and in FY2013 with
Minimal Increases Through FY2016;
• The Use of Free Cash in the amount of $200,000 for
FY2012 Through FY2016 will be Used to Fund the Town’s
Rainy Day Fund.
• Nahant Tuition is Expected to be $1,231,000 for the Next
Five Years.
• Other Sources of Revenue Include: Enterprise Fund
Indirects ($760,000).
• Salaries and Operating Expenses (Including Schools) Projected
to Increase 2.5% for FY12 and 2.5% Annually Thereafter;
• Health Insurance Costs Projected to Increase by 10% in
FY2012 and Increase By 10% Annually through FY2016 Based
on the Presumed Cost to Implement the Affordable Health
Care Bill Adopted by Congress in 2010;
• Due to the Current State of the Economy and Loss on
Investments, the Retirement Appropriation is Expected to
Increase by 10% in FY2013 and 5% Each Year Thereafter;
• State and County Charges and Cherry Sheet Offsets are
Expected to Increase 5% Each Fiscal Year;
• Debt Service Based Upon Current and Future Capital
Improvement Programs;
• Includes Sewer Debt Exclusion through FY 2014. FY2014 Will
be Last Year of Payment;
FY11-TM Adopt
FY12-EST
FY13-EST
FY14-EST
FY15-EST
FY16-EST
36,892,755
38,096,949
39,254,373
40,440,732
41,656,750
42,903,169
275,000
200,000
200,000
200,000
200,000
200,000
3,979,720
3,969,245
3,879,639
3,132,136
2,574,752
2,350,725
REVENUES
Property Taxes
New Growth
Debt Exclusion
Total Tax Revenue
$
41,147,475 $
42,266,194 $
43,334,012 $
43,772,868 $
44,431,502 $
45,453,894
Local Receipts-
3,981,783
3,731,783
3,756,783
3,781,783
3,806,783
3,831,783
State Aid
3,828,844
3,637,402
3,637,402
3,710,150
3,784,353
3,860,040
Free Cash
200,000
200,000
200,000
200,000
200,000
200,000
Other Available Funds
760,000
760,000
760,000
760,000
760,000
760,000
$
49,918,102 $
50,595,379 $
51,688,196 $
52,224,801 $
52,982,638 $
54,105,717
Base Operating Expense $
34,512,499 $
35,375,311 $
36,259,694 $
37,166,187 $
38,095,341 $
39,047,725
TOTAL REVENUE
EXPENSES
Group Health
4,201,000
4,621,100
5,083,210
5,591,531
6,150,684
6,765,753
Other Personnel Benefits
3,809,512
4,190,463
4,399,986
4,619,986
4,850,985
5,093,534
Debt Service - CIP
5,095,345
4,905,905
4,738,632
4,687,148
4,388,165
4,084,271
Sewer Debt
1,154,884
1,170,986
1,188,358
498,902
Non- Appropriated Exp.
1,040,441
1,060,243
1,113,255
1,168,918
TOTAL EXPENSES
SURPLUS (DEFICIT)-
1,227,363.51
1,288,732
$
49,813,681 $
51,324,008 $
52,783,136 $
53,732,671 $
54,712,539 $
56,280,014
$
104,421 $
(728,630) $
(1,094,939) $
(1,507,870) $
(1,729,901) $
(2,174,297)
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
Net State Aid
Assuming 2.5% Inflation
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
FY05
Nahant Tuition
FY06
FY07
FY08
Regional School Cost
FY09
FY10
FY11
Charter School Cost
FY 2002 – FY 2010
Tax Levy
4.4
6.2
3.8
State Aid
18.1
18.1
18.3
8.2
8.0
8.2
8.5
8.9
66.6
67.6
69.9
71.7
71.8
18.3
20.3
11.6
10.6
8.7
68.6
FY02
FY03
FY04
1.0
1.7
18.8
15.9
67.3
Other
3.2
6.4
4.9
16.6
68.0
Local Recipts
FY05
FY06
FY07
FY08
FY09
1.9
8.0
7.8
82.3
FY10