fy13 financial trends and budget projections power point
TRANSCRIPT
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Fiscal Trends and Budget Projectionsfor the
Fiscal Year 2013 BudgetMayor David J. Narkewicz March 1, 2012
City of Northampton, MA
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CITY OF NORTHAMPTON, MASSACHUSETTS
FISCAL YEAR 2012
CONSOLIDATED RESOURCES / APPROPRIATION SUMMARY
AS VOTED BY CITY COUNCIL and AMENDED BY COUNCIL ON 12/1 AND 12/15/2011
SOLID COMBINED
GENERAL SEWER WATER WASTE FUNDS
FUND FUND FUND FUND TOTAL
BUDGET BUDGET BUDGET BUDGET BUDGET(Memo Only)
REVENUE SUMMARY:
Taxes 46,399,761 - - - 46,399,761
Charges for Services 7,031,775 5,268,904 6,205,951 3,292,000 21,798,630
Licenses & Permits 1,006,170 - - - 1,006,170
Fines & Forfeits 1,063,400 - - - 1,063,400
State Revenue - Cherry Sheet 15,971,789 - - - 15,971,789
Federal Revenue 277,504 - - - 277,504
Inter-fund Operating Transfers 4,865,504 - - - 4,865,504
Capital Reserve - 280,465 875,425 (53,452) 1,102,438
Miscellaneous 330,213 31,009 30,000 245,000 636,222TOTAL REVENUES 76,946,116 5,580,378 7,111,376 3,483,548 93,121,418
EXPENDITURE SUMMARY:
Appropriations:
General Government 3,791,830 - - - 3,791,830
Public Safety 11,631,512 - - - 11,631,512
Education 29,701,701 - - - 29,701,701
Public Works 3,156,588 - - - 3,156,588
Human Services 1,019,027 - - - 1,019,027
Culture & Recreation 1,560,779 - - - 1,560,779
Debt Service 5,515,417 949,143 2,678,202 281,700 9,424,462
Employee Benefits 14,959,705 - - - 14,959,705
Insurance and Reserves 726,648 - - - 726,648
Capital Program 175,000 60,000 60,000 752,146 1,047,146
Enterprise Funds - 2,815,075 3,692,614 2,086,268 8,593,957
Reserve Abatements & Exemptions 400,000 - - - 400,000
State & County Assessments 3,024,170 - - - 3,024,170
Cherry Sheet Offsets 1,251,821 - - - 1,251,821
Other Amounts to be Raised 31,918 - - - 31,918
Interfund Transfers - 1,756,160 680,560 363,434 2,800,154Subtotal Appropriations 76,946,116 5,580,378 7,111,376 3,483,548 93,121,4183/1/2012 2
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REVENUE SOURCES for General and Enterprise Funds
Total for FY12 = $93,121,418
Taxes
49.8%
Charges for Services
23.4%
Licenses & Permits
1.1%
Fines &
Forfeits
1.1%
State Revenue -
Cherry Sheet
17.2%
FederalRevenue
0.3%
Interfund Operating
Transfers
5.2%
Capital Reserve
1.2%
Miscellaneous
0.7%
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EXPENDITURES for General and Enterprise Funds
Total for FY12 = $93,121,418General
Government
4.1%
Public Safety
12.5%
Education
31.9%
Public Works
3.4%Human Services
1.1%
Culture & Recreation
1.7%
Debt Service
10.1%
Employee Benefits
16.1%
Insurance and Reserves
0.8%
Capital Program
1.1%
Enterprise Funds
9.2%
Reserve Abatements &
Exemptions
0.4%
State &
County
Assessments
3.2%
Cherry Sheet Offsets
1.3%
Other Amounts to
be Raised
0.0%
Interfund Transfers
3.0%
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Overview of revenue sources for the
General Fund.
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REVENUES for the General Fund
Total FY12 = $76,946,116
Taxes
60.3%
Charges for Services
9.1%
Licenses &Permits
1.3%
Fines &
Forfeits
1.4%
State Revenue - CherrySheet
20.8%
Federal Revenue
0.4% Interfund
Operating
Transfers
6.3%
Miscellaneous
0.4%
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Revenue sources and trends that are most affected by economic conditions and/or
have the largest dollar impact on the General Fund Budget:
Property Taxes approx $43.2 m
State Aid (not including MSBA and offsets) approx $11.7 m
Inter-fund Operating Transfers approx $2.8 m
Motor Vehicle Excise approx $2.1 mParking Meter/Garage approx $1.3 m
Hotel/Motel & Meals Taxes approx. $1.0 m
Parking Ticket Fines approx $680 k
New Growth approx $650 k
Inspection Fees approx $520 kInterest on Investments approx $120 k
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Property Tax Revenue Trend FY03 to FY12Source: Mass Department of Revenue Municipal Data Bank
Formula Property Tax Revenues (Constant Dollars)
Fisca l Year 2003 2004 2005 2006 2007 2008 2009 2010* 2011 2012
Residential Proper ty Tax Levy $ 22,234,474 $ 23,858,305 $ 25,258,916 $ 26,561,687 $ 27,789,052 $ 28,942,969 $ 29,856,224 $ 32,494,563 $ 33,469,556 $ 34,667,579
Commercia l Propert y Tax Levy $ 4,635,353 $ 4,886,676 $ 4,792,902 $ 4,466,692 $ 4,976,264 $ 4,984,671 $ 5,253,743 $ 5,707,666 $ 5,850,598 $ 5,999,515
Industr ial Property Tax Levy $ 1,109,428 $ 1,033,609 $ 1,003,082 $ 925,551 $ 954,198 $ 977,913 $ 1,020,745 $ 1,061,927 $ 1,137,507 $ 1,313,405
Personal Property Tax Levy $ 1,039,024 $ 735,286 $ 721,871 $ 689,579 $ 693,850 $ 862,616 $ 1,066,659 $ 1,102,381 $ 1,179,342 $ 1,245,463
Propert y Tax Total $ 29,018,279 $ 30,513,876 $ 31,776,771 $ 32,643,509 $ 34,413,364 $ 35,768,169 $ 37,197,371 $ 40,366,537 $ 41,637,003 $ 43,225,962
Less - Excluded Debt $ 2,224,367 $ 2,251,168 $ 2,031,985 $ 1,380,541 $ 1,569,870 $ 1,457,740 $ 1,342,770 $ 1,220,649 $ 1,104,422 $ 1,008,478
Net Property Tax Revenue $ 26,793,912 $ 28,262,708 $ 29,744,786 $ 31,262,968 $ 32,843,494 $ 34,310,429 $ 35,854,601 $ 39,145,888 $ 40,532,581 $ 42,217,484
CPI - U, Base Period = 1982-1984 203.9 209.5 216.4 223.1 227.4 235.4 233.5 237.3
CPI - U, Adjustment for constant
dollars (2003 dollars)100.0% 97.3% 94.2% 91.4% 89.7% 86.6% 87.3% 85.9%
Property Tax Revenue (constant
dollars)$ 26,793,912 $ 27,507,237 $ 28,026,626 $ 28,572,475 $ 29,449,377 $ 29,719,186 $ 31,309,435 $ 33,636,100
Percent Change - Property Tax
Revenue (constant dollars)100.0% 2.7% 1.9% 1.9% 3.1% 0.9% 5.4% 7.4%
* A $2,000,000 override was approved by voters in June 2009 that was added to the tax levy for FY2010
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2003 2004 2005 2006 2007 2008 2009 2010* 2011 2012
Actual Constant
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Uncollected Property Taxes Trend FY03 to FY11Source: City of Northampton End of Year Budget Data
Formula Uncollected Taxes as a Percentage of Net Proper ty Tax Levy
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Residential Propert y Tax Levy $ 22,234,474 $ 23,858,305 $ 25,258,916 $ 26,561,687 $ 27,789,052 $ 28,942,969 $ 29,856,224 $ 32,494,563 $ 33,469,556 $ 34,667,579
Commercial Property Tax Levy $ 4,635,353 $ 4,886,676 $ 4,792,902 $ 4,466,692 $ 4,976,264 $ 4,984,671 $ 5,253,743 $ 5,707,666 $ 5,850,598 $ 5,999,515
Industr ial Proper ty Tax Levy $ 1,109,428 $ 1,033,609 $ 1,003,082 $ 925,551 $ 954,198 $ 977,913 $ 1,020,745 $ 1,061,927 $ 1,137,507 $ 1,313,405
Persona l Property Tax Levy $ 1,039,024 $ 735,286 $ 721,871 $ 689,579 $ 693,850 $ 862,616 $ 1,066,659 $ 1,102,381 $ 1,179,342 $ 1,245,463
Propert y Tax Total $ 29,018,279 $ 30,513,876 $ 31,776,771 $ 32,643,509 $ 34,413,364 $ 35,768,169 $ 37,197,371 $ 40,366,537 $ 41,637,003 $ 43,225,962
Reserved for Abatements &
Exemptions$ 440,648 $ 457,710 $ 449,983 $ 421,286 $ 450,330 $ 384,577 $ 540,444 $ 412,448 $ 388,923 $ 393,978
Net Proper ty Tax Levy $ 28,577,631 $ 30,056,166 $ 31,326,788 $ 32,222,223 $ 33,963,034 $ 35,383,592 $ 36,656,927 $ 39,954,089 $ 41,248,080 $ 42,831,984
Uncollec ted Taxes as of June 30 $ 634,150 $ 647,021 $ 520,095 $ 724,017 $ 877,863 $ 873,123 $ 605,336 $ 706,531
Uncollected Taxes as a Percentage
of Net Property Tax Levy0.00% 2.11% 2.07% 1.61% 2.13% 2.48% 2.38% 1.52% 1.71% 0.00%
2.98%
2.11% 2.07%
1.61%
2.13%
2.48%2.38%
1.52%
1.71%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
2003 2004 2005 2006 2007 2008 2009 2010* 2011
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FY12 Selected Tax Rates in Neighboring Communitiesper $1,000 of valuation
Source: Mass Department of Revenue Municipal Data Bank
19.68 19.7419.01 18.85
17.25 16.98
13.35 13.27
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
LONGMEADOW AMHERST GREENFIELD EAST
LONGMEADOW
WEST
SPRINGFIELD
LUDLOW NORTHAMPTON EASTHAMPTON
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FY12 Excess Levy Capacity in Neighboring CommunitiesSource: Mass Department of Revenue Municipal Data Bank
2,515,620
593,884
140,52379,861
15,758 10,260 7,347 6,938$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
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FY12 Average Property ValuationSource: Mass Department of Revenue Municipal Data Bank
352,613
318,789304,422
253,656
228,772214,267 212,778
184,865
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000State Average = $358,586
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FY12 Average Single Family Property Tax Bill in Neighboring CommunitiesSource: Mass Department of Revenue Municipal Data Bank
$6,939
$6,293
$4,781
$4,064$3,696 $3,613 $3,514
$3,036
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
StateAverage in FY11 = $4,537
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State Aid Trend FY03 to FY13Source: Mass Department of Revenue Municipal Data Bank
10000000
11000000
12000000
13000000
14000000
15000000
16000000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
State Aid (actual) Adjusted State Aid (constant dollars)
Formula Net State Aid / Cherry Sheet Receipts minus Cherry Sheet Charges (not including offsets)
Fiscal Year 2003 2004 2005 2006 2007 2008 2009* 2010 2011 2012** 2013***
State Aid (actua l) $ 15,477,606 $ 12,955,067 $ 12,850,984 $ 13,472,634 $ 14,833,599 $ 15,219,591 $ 13,872,891 $ 13,513,223 $ 12,047,764 $ 11,698,895 $ 11,520,757
CPI - U, Base Period = 1982-1984 203.9 209.5 216.4 223.1 227.4 235.4 233.5 234.5 235.5
CPI - U, Adjustment for constant dollars (2002 dollars ) 100% 97% 94% 91% 90% 87% 87% 87% 87%
Adjusted State Aid (const ant dollar s) $ 15,477,606 $ 12,608,774 $ 12,108,667 $ 12,313,178 $ 13,300,663 $ 13,182,985 $ 12,114,272 $ 11,749,877 $ 10,431,164 $ - $ -
* FY09 state aid reflects mid-year "9C Cuts" of $533,060
**FY12 state aid does not include the supplemental appropriation released in October 2011 of $268,800***FY13 state aid is an estimate based on the Governor's Budget Proposal3/1/2012 14
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State Aid as a Percentage of Operating Revenues Trend FY03 to FY12Source: Mass Department of Revenue Municipal Data Bank
Formula State Aid / Operating Revenues
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Gross Operating
Revenue $ 66,712,201 $ 71,340,504 $ 70,633,201 $ 76,365,337 $ 83,664,117 $ 87,286,459 $ 90,065,639 $ 91,303,543 $ 91,673,464 $ 93,121,418
Less - Excluded
Debt$ 2,224,367 $ 2,251,168 $ 2,031,985 $ 1,380,541 $ 1,569,870 $ 1,457,740 $ 1,342,770 $ 1,220,649 $ 1,104,422 $ 1,008,478
Net Operating
Revenue$ 64,487,834 $ 69,089,336 $ 68,601,216 $ 74,984,796 $ 82,094,247 $ 85,828,719 $ 88,722,869 $ 90,082,894 $ 90,569,042 $ 92,112,940
State Aid $ 15,477,606 $ 12,955,067 $ 12,850,984 $ 13,472,634 $ 14,833,599 $ 15,219,591 $ 13,872,891 $ 13,513,223 $ 12,047,764 $ 11,698,895
State Aid as a %
of Operating
Revenue
24.0% 18.8% 18.7% 18.0% 18.1% 17.7% 15.6% 15.0% 13.3% 12.7%
S
24.0%
18.8% 18.7% 18.0% 18.1% 17.7%15.6% 15.0%
13.3% 12.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Fiscal Year
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Inter-fund Operating Transfers from Water, Sewer and Solid Waste Enterprise FundsFY03 to FY12
Source: Northampton End of Year Budget Data
Formula Interfund Operating Transfers
Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Interfund Operating Transfers 2,393,069 2,442,330 2,491,223 2,562,681 2,589,948 2,667,142 2,773,719 2,962,521 2,990,513 2,883,592 2,800,153
Change from previous year 49,261 48,893 71,458 27,267 77,194 106,577 188,802 27,992 (106,921) (83,439)
Perecentage change from previous year 2.06 2.00 2.87 1.06 2.98 4.00 6.81 0.94 (3.58) (2.89)
$2,000,000
$2,200,000
$2,400,000
$2,600,000
$2,800,000
$3,000,000
$3,200,000
$3,400,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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Motor Vehicle Excise Tax Trend 2003 to 2011Source: Northampton Year End Budget Data
Formula Motor Vehicle Excise
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010* 2011
Motor Vehicle Excise 2,214,602 2,154,231 2,230,637 2,276,569 2,077,680 2,204,379 2,091,330 2,063,029 2,173,355
Change from previous year 90,971 (60,371) 76,406 45,932 (198,889) 126,700 (113,049) (28,301) 110,326
Perecentage change from previous year 4.28 (2.73) 3.55 2.06 (8.74) 6.10 (5.13) (1.35) 5.35
$2,000,000
$2,050,000
$2,100,000
$2,150,000
$2,200,000
$2,250,000
$2,300,000
2003 2004 2005 2006 2007 2008 2009 2010* 2011
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Parking Meter and Garage Revenue Trends FY03 to FY11Source: Northampton End of Year Budget Data
Formula Parking Meter and Garage Revenues
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011
Parking Meter and Garage Revenues to General Fund 1,103,333 1,001,147 1,136,991 1,216,026 1,333,602 1,382,232 1,374,126 1,349,701 1,393,875
Change from previous year 20,699 (102,186) 135,843 79,036 117,576 48,630 (8,106) (24,426) 44,174
Perecentage change from previous year 1.91 (9.26) 13.57 6.95 9.67 3.65 (0.59) (1.78) 3.27
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2003 2004 2005 2006 2007 2008 2009 2010 2011
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Hotel, Motel and Meals Tax Revenue Trends FY03 to FY11Source: Northampton End of Year Budget Data
Formula Hotel, Motel and Meals Tax Revenues
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011
Hotel-Motel Taxes 313,224 336,309 329,332 359,388 368,770 352,264 334,406 407,727 481,230
Meals Taxes 389,700 549,624
Total 313,224 336,309 329,332 359,388 368,770 352,264 334,406 797,427 1,030,854
Change from Previous Year (52,567) 23,085 (6,977) 30,056 9,382 (16,506) (17,858) 463,021 233,427
Percentage Change from Previous Year -14.37 7.37 -2.07 9.13 2.61 -4.48 -5.07 138.46 29.27
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2003 2004 2005 2006 2007 2008 2009 2010 2011
Meals Taxes Hotel-Motel Taxes
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New Growth Revenue Trend FY03 to FY12Source: Mass Department of Revenue Municipal Data Bank
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Formula New Growth
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010* 2011 2012
New Growth 737,153 809,930 772,535 766,958 786,917 671,636 685,701 375,927 420,416 653,585
Total Change in New
Growth from Previous Year 384,494 72,777 (37,395) (5,577) 19,959 (115,281) 14,065 (309,774) 44,489 233,169
Percent Change in New
Growth from previous year 52.15 9.87 (4.62) (0.72) 2.60 (14.65) 2.09 (45.18) 11.83 55.46
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Total FY12 New Growth Applied to the Levy Limit in Neighboring CommunitiesSource: Mass Department of Revenue Municipal Data Bank
1,493,132
654,501
516,715473,730
393,785352,207
197,525
115,613
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
WEST
SPRINGFIELD
NORTHAMPTON GREENFIELD AMHERST LUDLOW EAST
LONGMEADOW
LONGMEADOW EASTHAMPTON
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Inspection Permit Revenue Trends FY03 to FY11Source: Northampton End of Year Budget Data
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2003 2004 2005 2006 2007 2008 2009 2010 2011
Permits - Weights & Measures Permits - Wire Inspector Permits - Plumbing Inspector Permits - Building Inspector
Formula Permits Revenues - Building, Plumbing, Wiring and Weights and Measures
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011
Permits - Building Inspector 244,548 266,239 350,306 247,814 357,892 242,533 200,964 348,789 289,164
Permits - Plumbing Inspector 54,702 63,770 70,202 77,485 68,553 95,057 83,584 82,820 97,330
Permits - Wire Inspector 85,320 100,752 93,878 142,996 98,768 123,050 100,624 132,439 104,376
Permits - Weights & Measures 16,294 37,478 30,700 31,711 29,035 29,444 25,427 26,417 29,352
Total Permit Revenues 400,864 468,239 545,086 500,005 554,248 490,083 410,599 590,465 520,222
Change from Previous Year 108,848 67,375 76,847 (45,081) 54,243 (64,165) (79,484) 179,866 (70,243)
Percentage Change from Previous Year 37.27 16.81 16.41 (8.27) 10.85 (11.58) (16.22) 43.81 (11.90)3/1/2012 23
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Interest on Investments Revenue Trends FY03 to FY11Source: Northampton End of Year Budget Data
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2003 2004 2005 2006 2007 2008 2009 2010 2011
Formula Investment Income
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011
Investment Income 240,203 200,166 341,974 556,430 623,188 458,686 210,258 119,975 123,556
Change from previous year (160,624) (40,037) 141,808 214,456 66,758 (164,502) (248,428) (90,283) 3,581
Perecentage change from previous year (40.07) (16.67) 70.84 62.71 12.00 (26.40) (54.16) (42.94) 2.98
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Overview of expenditures in the
General fund..
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Expense areas and trends that we will look at either because they are variable,
affected by economic/market conditions, and/or have the largest dollar impact on
the General Fund Budget include:
Education largest functional area of the budget
Personnel Costs/Wages - largest part of the GF budget - $40 m
Public Safety second largest functional area of budget
Employee Health Insurance
Other Employee Benefits
Retirement Assessment
Debt Service
Insurance WC, Prop, GL, Auto
Snow and Ice and Veterans Benefits
School Choice & Charter Sending Tuition
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EXPENDITURES for the General Fund
Total FY12 = $76,946,116
General Government
4.9%
Public Safety
15.1%
Education
38.6%
Public
Works
4.1%Human Services
1.3%
Culture & Recreation
2.0%
Debt Service
7.2%
Employee Benefits
19.4%
Insurance and
Reserves
0.9%
Capital
Program0.2%
Reserve Abatements &
Exemptions
0.5%
State & County
Assessments
3.9%
Cherry Sheet Offsets
1.6%
Other
Amounts to be
Raised
0.0%
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The largest programmatic expenditure in the general fund is education for
Northampton Public Schools and Smith Vocational and Agricultural School
Education was 53% of
the General Fund
Budget in FY11.
Included in that total is
the appropriation, as
well as debt service andcapital costs for school
department equipment
and buildings, and
employee benefits, such
as health insurance andretirement for school
staff .
General
Government
5%
Public Safety
15%
Education
53%
Public Works
6%
Human Services
2%
Culture and
Recreation
2%
Debt
2%
Employee
Benefits
6%
Unclassified
1%
Intergovernmenta
l Assessments
4%
Retirement
4%
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General Fund Salaries and Wages FY06 FY11Source: Northampton Schedule A Fiscal Years 2006 - 2011
Salaries and Wages 2006 2007 2008 2009 2010 2011
General Government 2,041,370 2,132,080 2,314,803 2,315,450 2,182,887 2,319,367
Public Safety 7,544,331 7,981,919 8,522,881 8,742,575 8,985,841 9,720,673
Education 21,088,908 22,491,976 23,189,131 22,973,759 23,137,287 23,415,088
Public Works 2,105,249 2,155,034 2,278,222 2,344,008 2,219,730 2,372,790
Human Services 306,092 321,980 335,503 352,392 391,492 439,459
Culture and Recreation 1,124,903 1,180,579 1,451,734 1,503,124 1,475,360 1,526,717
Total 34,210,853 36,263,568 38,092,274 38,231,308 38,392,597 39,794,094
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2006 2007 2008 2009 2010 2011
Culture and Recreation
Human Services
Public Works
General Government
Public Safety
Education
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Salaries and Wages by Major Functional Area FY06 FY11Source: Northampton Schedule A Fiscal Years 2006-2011
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2006 2007 2008 2009 2010 2011
Education
Public Safety
Public Works
General Government
Culture and Recreation
Human Services
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Retirement Assessment FY03 to FY13Source: Northampton End of Year Budget Data
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Pensions and Annuities Non Contributory Contributory Retirement System
Formula Retirement Assessment
Retirement Assessment FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Contributory Retirement System 2,541,628 2,668,462 2,992,234 3,294,187 3,409,475 3,535,959 3,665,262 3,842,388 3,989,570 4,198,899 4,359,384
Pensions and Annuities Non Contributory 76,393 77,075 83,874 83,855 70,896 63,331 36,731 35,624 36,617 37,690 40,000
Total Employee Health Insurance 2,618,021 2,745,537 3,076,108 3,378,042 3,480,371 3,599,290 3,701,993 3,878,012 4,026,187 4,236,589 4,399,384
Change from previous year 105,817 127,517 330,571 301,934 102,328 118,920 102,702 176,019 148,175 210,402 162,795
Perecentage change from previous year 4.21% 4.87% 12.04% 9.82% 3.03% 3.42% 2.85% 4.75% 3.82% 5.23% 3.84%
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Other Employee Benefits FY03 to FY11Source: Northampton End of Year Budget Data
Formula Other Employee Benefits
Fiscal Year FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011
Employee Medicare and SS 352,669 340,544 371,670 408,308 455,905 490,599 517,948 522,517 550,514
Unused Earned Leave 193,394 436,689 160,487 219,325 236,772 196,808 167,774 174,351 162,279
Life Insurance 42,839 47,397 45,206 46,456 44,881 40,982 41,476 41,610 38,533
588,902 824,630 577,364 674,089 737,557 728,390 727,198 738,478 751,326
Change from previous year (65,146) 235,727 (247,266) 96,725 63,469 (9,168) (1,192) 11,279 12,848
Perecentage change from previous year -9.96 40.03 -29.99 16.75 9.42 -1.24 -0.16 1.55 1.74
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011
Employee
Medicare and
SS
Unused Earned
Leave
Life Insurance
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Debt Service FY03 to FY15Source: Northampton Debt Schedule
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Debt Excluded 1,819,615 2,363,253 1,703,420 1,929,605 1,659,870 1,507,740 1,392,696 1,220,649 1,104,423 962,960 1,640,306 1,429,386 1,278,331
MSBA Reimbursement 3,011,981 3,011,981 3,011,981 3,011,981 3,132,884 3,132,884 3,132,884 3,132,884 2,237,230 2,237,230 2,237,230 2,237,230 2,237,230
Other Sources 105,350 96,961 95,878 126,807 527,081 573,668 431,871 774,879 812,525 1,218,274 1,463,550 1,288,848 1,110,039
Levy Supported in Budget 13,148 516,607 462,008 721,186 428,340 1,104,619 1,249,780 1,384,647 1,499,228 1,555,053 1,831,042 1,838,960 1,580,274
Total Debt Service 4,950,094 5,988,802 5,273,287 5,789,579 5,748,175 6,318,911 6,207,231 6,513,059 5,653,406 5,973,517 7,172,128 6,794,423 6,205,874
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Other Sources MSBA Reimbursement Debt Excluded Levy Supported in Budget
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School Choice and Charter Sending Tuition FY03 to FY13Source: Northampton End of Year Budget Data
Formula School Choice and Charter School Sending Tuition
FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
School Choice Sending Tuition 0 0 0 371,002 363,405 333,531 418,667 506,906 445,791 516,906 467,464
Charter School Sending Tuition 815,171 1,017,486 1,203,393 1,262,463 1,310,509 1,413,309 1,432,011 1,467,450 1,718,969 1,808,773 2,170,255
Total 815,171 1,017,486 1,203,393 1,633,465 1,673,914 1,746,840 1,850,678 1,974,356 2,164,760 2,325,679 2,637,719
Change from previous year (56,652) 202,315 185,907 430,072 40,449 72,926 103,838 123,678 190,404 160,919 312,040
Perecentage change from previous
year -6.50 24.82 18.27 35.74 2.48 4.36 5.94 6.68 9.64 7.43 13.42
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Charter School Sending Tuition School Choice Sending Tuition
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Insurance Workers Compensation, Police and Fire Accident, General Liability,
Property and Auto and Public Officials Liability Insurance FY03 to FY11Source: Northampton End of Year Budget Data
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011
Workers Compensation
Police and Fire Accident
General Liability
Property and Auto Insurance
Public Officials Liability
Formula Insurances
Fiscal Year FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011
Workers Compensation 235,418 239,297 203,543 220,990 269,798 316,060 356,033 190,647 186,560
Police and Fire Accident 64,820 61,191 27,691 30,460 33,506 44,563 49,019 107,097 93,492
General Liability 44,000 51,347 29,425 32,752 30,000 44,849 48,581 40,700 43,500
Property and Auto Insurance 100,381 118,301 127,850 145,224 152,044 174,776 172,116 187,994 184,619
Public Officials Liability 75,000 53,848 86,000 82,393 86,470 73,832 84,888 64,473 51,291
Total 519,619 523,984 474,509 511,819 571,818 654,081 710,637 590,912 559,462
Change from previous year 131,563 4,365 (49,475) 37,310 59,999 82,263 56,557 (119,726) (31,450)
Perecentage change from previous year 33.90 0.84 -9.44 7.86 11.72 14.39 8.65 -16.85 -5.32
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Snow and Ice and Veterans Benefits FY03 to FY11Source: Northampton End of Year Budget Data
Formula Other Employee Benefits
Fiscal Year FY2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011
Snow and Ice 586,903 566,550 629,233 542,135 452,894 691,017 667,077 486,403 811,540
Veterans Benefits 40,226 58,261 150,446 247,682 323,133 398,486 545,359 624,156
Total 586,903 606,776 687,494 692,581 700,576 1,014,150 1,065,563 1,031,762 1,435,696
Change from previous year 251,422 19,873 80,718 5,087 7,995 313,574 51,413 (33,801) 403,934
Perecentage change from previous year 74.9 3.39 13.30 0.74 1.15 44.76 5.07 -3.17 39.15
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
FY2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011
Snow and Ice Veterans Benefits
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Reserves Free Cash, Stabilization and Capital Stabilization FY03 FY12Source: Mass Department of Revenue Municipal Data Bank
-$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
FY12FY11FY10FY09FY08FY07FY06FY05FY04FY03
GENERAL FUND
FREE CASH
GENERAL FUND STABILIZATION
CAPITAL
STABILIZATION
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Financial Flexibility for Northampton Comparison with Neighboring Communities
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Financial Flexibility for Northampton Comparison with Neighboring CommunitiesSource: Mass Department of Revenue Municipal Data Bank
Financial Flexibility Compared with Neighboring Communities
DOR Code MunicipalityPopulation 2010
Estimate FY11 Total Budget
FY11
Excess LevyCapacity
7/1/10 FreeCash
6/30/10
StabilizationFund
FY11 AvailableResources
Available
Resources as a
percent ofBudget
Moody's
Bond Rating
as of July2011
$ Change in
Free CashFY06-FY11
LT Debt Long-
term Debt
Outstanding as
Percent ofEQV
325 West Springfield 28,391 94,514,810 1,243,443 3,722,671 7,567,469 12,533,583 13.00% Aa3 2,012,379 1.12%
085 East Longmeadow 15,720 51,721,145 1,024,154 3,118,484 1,753,163 5,895,801 11.00% Aa2 1,242,695 1.76%
008 Amherst 37,819 72,456,981 426,947 3,300,986 1,421,401 5,149,334 7.00% Aa2 1,084,051 0.31%
161 Ludlow 21,103 56,182,229 823,546 984,493 2,142,993 3,951,032 7.00% Aa3 -1,967,093 1.14%
159 Longmeadow 15,784 56,130,477 19,312 1,455,225 2,016,344 3,490,881 6.00% Aa2 186,424 0.56%
114 Greenfield 17,456 49,863,768 8,942 824,693 1,343,925 2,177,560 4.00% A1 240,714 1.64%
214 Northampton 28,549 91,673,464 23,439 1,052,466 848,444 1,924,349 2.00% Aa2 -1,487,124 1.89%
087 Easthampton 16,053 37,683,764 13,138 565,039 1,124,311 1,702,488 5.00% A1 -586,367 0.50%
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
West Springfield East
Longmeadow
Amherst Ludlow Longmeadow Greenfield Northampton Easthampton
6/30/10 Stabilization Fund 7/1/10 Free Cash
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So what does all this information say about the financial trends affecting
Northampton? Favorable trends include
Consistently strong property tax collections
Relatively low tax rate compared with comparable, neighboring
communities
Property values remain high, even during the economic downturn
Average single family property tax bill, at $4,064 is below the state
average of $4,537
Certain revenue streams on the upswing including: Motor Vehicle Excise
Parking meter and Garage Revenues
Hotel/Motel and Meals Taxes
Excellent bond rating and favorable interest rates resulting from that
rating
Insurance Costs (Workers Comp, Police and Fire Accident, General andPublic Officials Liability, Property and Auto Insurance) are either stable or
declining
Excellent health insurance cost containment, consistently below industry
averages
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So what does all this information say about the financial trends affecting
Northampton? Unfavorable trends include
State aid reductions have sharply limited the citys ability to fund budgets and build
reserves in the last four fiscal years, FY08 to FY12, the city has seen a reduction in
state aid of $3.5 million and FY13 will see another reduction
State aid, as a percentage of operating revenues, declined from 24% to 12.7% of
operating revenues
No excess levy capacity taxing to the maximum allowed under Prop 2
The Inter-fund operating transfers declining with closure of landfill
New growth is expected to decline in FY13 Interest on investments has declined markedly since 2007, and has been flat for three
fiscal years
Employee health insurance, which has been relatively stable for the last four years due
to plan design changes, may increase by 12% or $1.1 million
Increases in fixed costs such as debt service, retirement system assessment and
medicare Charges for tuition for school choice and charter school students continue to rise
Veterans benefits, which are reimbursed by the state at 75%, continue to increase
Low reserves free cash, stabilization and capital stabilization have been depleted to
offset losses in state aid.
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What are the Budget Assumptions for FY13?
On the revenue sideMarch 1, 2012
Revenue Estimate
Estimated
Additional Revenue
Prop 2 1/2 increase 1,055,588
Estimated New Growth 475,000
Total Real Estate and Personal Property Increase 1,530,588
State Aid (178,138)
Preliminary Increases to Local Receipts:
Motor Vehicle Excise 35,000
Hotel/Motel Tax 10,000
Meals Tax 75,000
Interest on Tax titles 10,000
Parking Meter Revenues 150,000
Collector Fees 20,000
Municipal Liens 10,000
Total Preliminary Local Receipt Increases: 310,000
Revenue Estimate
Estimated
Additional Revenue
Preliminary Decreases to Local Receipts:
Cemetery Income (5,000)
City Clerk Misc (10,000)
Dept. Rev. - BOH (5,000)
Liquor Licenses (5,000)
Building Permits (100,000)
Plumbing Permits (20,000)
Wiring Permits (2,000)
Fines and Forfeits (13,000)
Parking Tickets (100,000)
Medicaid Receipts (40,000)
PVTA Reimbursement (20,000)
Solid Waste Enterprise Indirect (175,000)
Total Preliminary Local Receipt Decreases: (495,000)
PRELIMINARY ESTIMATE OF NEW REVENUES 1,167,450
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What are the Budget Assumptions for FY13?
On the expenditure sideMarch 1, 2012
Expenditure Estimate
Estimated Increases
in Expenditures Additional Information
Retirement Assessment 160,485 know number from Retirement Board
Employee Health Insurance 1,128,800 12% renewal quote
Levy Supported Debt 275,988 additional debt service
Additional Custodial Staff for Police Station 37,000 1.5 fte
Historically Underfunded Accounts:
Fire OT 130,000 brings us to 100% of 3 year average actual costs
Veterans 180,000 brings us to 100% of 3 year average actual costs
Snow and Ice 100,000 brings us to 30% of 3 year average actual costs
Legal 33,000 brings us to 30% of 3 year average actual costs
Unemployment 25,000 brings us to 30% of 3 year average actual costs
PRELIMINARY ESTIMATE OF NEW EXPENDITURES 2,070,273
PRELIMINARY ESTIMATE OF NEW REVENUES 1,167,450
PRELIMINARY SHORTFALL: 902,823
Expenses still to calculate:
collective bargaining settlements including step increases
department OM increases
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