town budget...website) adopted by the board in march 2016. we are projecting that the proposed town...

Town Budget

Fiscal Year 2018Town of Danvers, Massachusetts

April 1, 2017

John J. Sweeney, Jr., Chairman

Finance Committee

Danvers, MA 01923

Dear John:

Please find enclosed the Board of Selectmen's proposed FY 2018 Budget. This document ad

heres to the comprehensive Budget Policy, as adopted by our Board on December 20, 2016,

and reflects the continuing efforts of the Board, Town Manager, and staff to maintain the high

quality and cost-effective services that the citizens of Danvers have come to expect. This year's

budget also focuses on several key areas, including: community and organizational engage

ment, information technology improvements, exploring regionalism, and building key reserves.

Despite continued challenges and uncertainty affecting both expenditures and revenue, includ

ing increasing pension, OPEB, and healthcare costs, diminished State Aid, and unfunded man

dates, e.g. new storm water management requirements, student transportation, etc., we be

lieve the Finance Committee will agree that the proposed operating budgets reflect modest and

essential increases. Operating budgets in Education, General Government, and Library are pro

jected to increase by 3.34%, 2.17%, and 3.32%, respectively, or 2.85%, collectively. Over the

past four fiscal years, operating budget increases across these three sectors of Town govern

ment have averaged 3.27%.

The Governor's proposed budget increased State Aid by 1.5%, or $148,000, but a scheduled re

duction in MSBA reimbursement results in a net decrease in the State Aid line of -$83,400. The

revenue category as a percent of total revenue is lower today than it was a decade ago. Com

bined with Prop 2X constraints and the growing list of unfunded mandates, the result is ever

increasing pressure on local tax levies across the Commonwealth. Since the Legislature has not

yet finalized its FY 2018 budget, this revenue projection may need to be adjusted.

Although we continue to be in a difficult fiscal period, and this budget reflects that economic

reality, the operating budgets for Education, Library and General Government Departments are

in line with our policy objectives. They also comply with the Financial Policies (on the Town's

website) adopted by the Board in March 2016. We are projecting that the proposed Town

budget will result in an overall tax levy which will be at or near our tax levy limit, but will not

contemplate the use of a Proposition 2Yi budget override or debt exclusion.

Town Hall, 1 Sylvan Street, Danvers, MAO 1923 - 978-777-0001

www.danversma.gov

Fiscal Year 2018 Finance Committee’s Budget Hearing Schedule

All Finance Committee Budget Hearings Begin at 6:30 P.M.* In the Daniel J. Toomey Hearing Room

Monday, April 10 Overview; Selectmen, Moderator; Finance

Committee Reserve Fund; Town Counsel; Human Resources/Benefits; Department

Heads; Planning & Human Services; Assessing; Debt; Administrative Services; Town Manager;

Accounting; Retirement Wednesday, April 12 Library; School; Vocational School; Public Works; (Water, Sewer, Electric) Thursday, April 13 Management and Informational Services;

Public Safety (Police, Fire, Code Administration); Public Works (tax supported); Budget Vote

Tuesday, April 25 Warrant Articles Thursday, April 27 Warrant Articles *@ 7:00 P.M. Saturday, April 29 Warrant Articles (if necessary) @8:30 A.M.

Transmittal Letter from Board of Selectmen

PAGE i Budget Overview by Town Manager

1 Budget Summary2 Revenue and Expenditure - History and Forecast4 Table of Appropriations6 Education Cost Breakout

PAGE PAGE 7 Moderator / Selectmen / FinComm / Legal 27 Fire Department9 Town Manager 29 Code Administration

11 Management and Informational Services 31 Public Works13 Department Heads 35 Sewer Division15 Town Accountant 37 Water Division17 Assessing 39 Electric Division19 Administrative Services 46 Planning and Human Services21 Human Resources 51 Peabody Institute Library23 Retirement 53 Debt Service25 Police Department 55 Employee Benefits

PAGE 57 Budget Policy58 Budget Conference Committee59 Support Services Charges to Revenue Departments60 Issued Debt Schedule61 Capital Improvement Plan (5-Year)65 Glossary of Municipal Finance Terms

SECTION B

SECTION A

FISCAL YEAR 2018 BUDGET

TABLE OF CONTENTS

SUPPLEMENTAL INFORMATION

SECTION A

Tax Rate Recap ACTUAL ACTUAL TAX RECAP BUDGET2015 2016 2017 2018

REVENUES

PROPERTY TAX 67,349,955$ 70,286,547$ 72,654,228$ 75,040,583$ STATE AID (INCL. MSBA) 10,013,551$ 10,220,626$ 10,587,904$ 10,504,509$ LOCAL RECEIPTS 11,992,959$ 12,648,685$ 11,353,000$ 11,563,000$ OTHER AVAILABLE FUNDS 2,285,453$ 2,139,085$ 1,298,591$ 1,703,807$

SUBTOTAL 91,641,918$ 95,294,943$ 95,893,723$ 98,811,899$

ENTERPRISE FUNDS 15,057,998$ 15,919,016$ 16,281,776$ 13,854,472$

TOTAL REVENUES 106,699,916$ 111,213,959$ 112,175,499$ 112,666,372$

EXPENDITURESEDUCATION 36,092,219$ 37,325,786$ 38,632,834$ 39,921,552$ LIBRARY 1,249,027$ 1,281,331$ 1,330,316$ 1,374,543$ GENERAL GOVERNMENT 26,821,229$ 25,798,409$ 28,629,679$ 29,249,744$ RETIREMENT 4,633,839$ 4,979,656$ 5,365,013$ 5,767,865$ UNAPPROPRIATED CHARGES 1,845,440$ 1,866,367$ 1,888,415$ 1,828,571$ GENERAL GOVERNMENT DEBT 5,415,417$ 5,505,054$ 5,639,623$ 5,296,436$ EMPLOYEE BENEFITS & INSURANCE 11,258,517$ 11,577,433$ 12,079,876$ 12,842,056$ WARRANT ARTICLES (TAX SUPPORTED) 2,136,282$ 2,231,510$ 2,327,967$ 2,531,133$

SUBTOTAL 89,451,970$ 90,565,546$ 95,893,723$ 98,811,900$

ENTERPRISE FUNDS 14,652,968$ 16,591,177$ 16,281,776$ 13,854,472$

TOTAL EXPENDITURES 104,104,938$ 107,156,723$ 112,175,499$ 112,666,372$

BUDGET SUMMARY FISCAL YEAR 2018

EDUCATION42.3%

LIBRARY1.5%

GENERAL GOVERNMENT

31.0%

RETIREMENT CONTRIBUTION

6.1%

DEBT SERVICE(GENERAL FUND)

5.6%

EMPLOYEE BENEFITS& INSURANCE

13.6%

EXPENDITURES BY CATEGORY FISCAL YEAR 2018*

*Does not include enterprise funds,or unappropriated charges

1

REVENUE ACTUAL ACTUAL TAX RECAP BUDGET2015 2016 2017 2018

PROPERTY TAX LEVY 67,349,955$ 70,286,547$ 72,654,228$ 75,040,583$

STATE AID (INCL. MSBA) 10,013,551$ 10,220,626$ 10,587,904$ 10,504,509$

LOCAL RECEIPTSMotor Vehicle Excise (MVE) 4,374,021$ 4,713,955$ 4,200,000$ 4,300,000$ Other Excise (Incl. Meals) 864,354$ 936,665$ 845,000$ 870,000$ Penalities & Interest 387,935$ 319,025$ 325,000$ 325,000$ Hotel/Motel Tax 1,407,818$ 1,628,647$ 1,450,000$ 1,500,000$ In Lieu of Taxes 1,321,463$ 1,322,257$ 1,310,000$ 1,320,000$ Other Charges for Services 1,020,654$ 953,992$ 975,000$ 975,000$ Fees 664,353$ 723,528$ 660,000$ 675,000$ Departmental 102,974$ 58,844$ 90,000$ 90,000$ Licenses & Permits 1,152,092$ 1,188,548$ 1,000,000$ 1,000,000$ Fines & Forfeits 103,996$ 74,183$ 95,000$ 95,000$ Investment Income 110,644$ 151,014$ 100,000$ 110,000$ Medicaid Reimbursement 360,460$ 356,057$ 300,000$ 300,000$ Misc recurring 13,799$ 3,390$ 3,000$ 3,000$ Misc non recurring 108,396$ 218,580$ -$ -$

subtotal 11,992,959$ 12,648,685$ 11,353,000$ 11,563,000$ Enterprise Funds 15,057,998$ 15,919,016$ 16,281,776$ 13,854,472$

Local Receipt TOTAL 27,050,957$ 28,567,701$ 27,634,776$ 25,417,472$

OTHER AVAILABLE FUNDS* Free Cash -$ -$ 662,591$ 786,300$ * Stabilization Fund 610,537$ 593,808$ -$ -$

Revenue Stabilization -$ -$ -$ -$ School Constr. Stabilization 1,115,403$ 1,037,277$ 500,000$ 423,507$ Lat./Part. Sewers 200,000$ 100,000$ 80,000$ 40,000$ Parking Receipts 24,000$ -$ -$ -$ Slip Fees 60,513$ 58,000$ 56,000$ 54,000$ Other - 53rd Week -$ 350,000$ -$ -$ Overlay Reserve 275,000$ -$ -$ 400,000$

subtotal 2,285,453$ 2,139,085$ 1,298,591$ 1,703,807$

TOTAL REVENUE 106,699,916$ 111,213,959$ 112,175,499$ 112,666,372$

REVENUE & EXPENDITURE HISTORY & FORECAST

*Prior to FY17, Capital Outlay was paid for through the General Stabilization Fund, with Free Cash being used to reimburse the General Stabilization Fund. Moving forward, Free Cash will be directly used to fund Capital Outlay.

2

EXPENDITURES ACTUAL ACTUAL TAX RECAP BUDGET2015 2016 2017 2018

General Government 3,046,580$ 3,206,806$ 3,669,484$ 3,778,520$ Police 5,903,304$ 5,837,344$ 6,469,360$ 6,566,913$ Fire 4,612,585$ 4,638,912$ 4,824,723$ 5,017,252$ Other Public Safety 342,048$ 360,900$ 385,962$ 423,341$ Education 36,092,219$ 37,325,786$ 38,632,834$ 39,921,552$ Public Works (tax) 11,301,534$ 9,911,456$ 11,512,408$ 11,605,159$ Planning & Human Services 1,615,178$ 1,842,991$ 1,767,742$ 1,858,559$ Library 1,249,027$ 1,281,331$ 1,330,316$ 1,374,543$ Debt Service - General Govt 5,415,417$ 5,505,054$ 5,639,623$ 5,296,436$ Retirement 4,633,839$ 4,979,656$ 5,365,013$ 5,767,865$ Employee Benefits/Insurance 11,258,517$ 11,577,433$ 12,079,876$ 12,842,056$ Warrant Articles 2,136,282$ 2,231,510$ 2,327,967$ 2,531,133$

subtotal 87,606,530$ 88,699,179$ 94,005,308$ 96,983,329$ Enterprise Funds 14,652,968$ 16,591,177$ 16,281,776$ 13,854,472$

Expenditure TOTAL 102,259,498$ 105,290,356$ 110,287,084$ 110,837,801$

OTHER AMOUNTS TO BE RAISEDOffsets 47,963$ 33,909$ 34,090$ 35,113$ State & Country 931,675$ 981,903$ 1,061,610$ 1,093,458$ Overlay Reserves 865,802$ 850,555$ 792,715$ 700,000$

subtotal 1,845,440$ 1,866,367$ 1,888,415$ 1,828,571$

TOTAL TO BE RAISED 104,104,938$ 107,156,723$ 112,175,499$ 112,666,372$

3

FY18 Approp. Tax Levy Enterprise Free Cash Other Avail.Education Total 39,921,552$ 39,921,552$

1140 Moderator Personnel 400$ Operating 1,150$

Total 1,550$ 1,550$

1220 Selectmen Personnel 15,500$ Operating 8,100$

Total 23,600$ 23,600$

1230 Town Manager Personnel 71,392$ Operating 39,650$

Total 111,042$ 111,042$

1250 MIS Personnel 381,859$ Operating 300,461$

Total 682,320$ 682,320$

1290 Dept Heads Personnel 1,326,685$ Operating 16,130$

Total 1,342,815$ 1,342,815$

1320 FinComm Reserve Total 150,000$ 150,000$

1350 Accounting Personnel 326,825$ Operating 62,730$

Total 389,555$ 389,555$

1410 Assessing Personnel 181,637$ Operating 90,230$

Total 271,867$ 271,867$

1430 Admin Services Personnel 426,669$ Operating 82,350$

Total 509,019$ 509,019$

1510 Legal Total 141,423$ 141,423$

1520 Human Resources Personnel 128,854$ Operating 26,475$

Total 155,329$ 155,329$

2110 Police Personnel 5,928,516$ Operating 420,607$ Capital Outlay 217,790$

Total 6,566,913$ 6,349,123$ 217,790$

2210 Fire Personnel 4,660,956$ Operating 306,296$ Capital Outlay 50,000$

Total 5,017,252$ 4,967,252$ 50,000$

2410 Code Personnel 342,766$ Operating 58,175$ Capital Outlay 22,400$

Total 423,341$ 400,941$ 22,400$

4110-4910 DPW Tax Personnel 4,497,054$ Operating 6,670,605$ Capital Outlay 437,500$

Total 11,605,159$ 11,127,659$ 437,500$ 40,000$

5110-5410 Planning HS Personnel 1,487,446$ Operating 312,503$ Capital Outlay 58,610$

Total 1,858,559$ 1,799,949$ 58,610$

TABLE OF APPROPRIATIONS

4

FY18 Approp. Tax Levy Enterprise Free Cash Other Avail.

6110 Library Personnel 1,103,480$ Operating 271,063$

Total 1,374,543$ 1,374,543$

7100-7510 Debt Principal 3,220,000$ Interest 2,076,436$ 423,507$

Total 5,296,436$ 4,818,929$ 54,000$

9100 Benefits Total 12,842,056$ 12,842,056$

Retirement Contribution Total 5,767,865$ 5,767,865$ 94,452,196$ 93,148,389$ -$ 786,300$ 517,507$

Sewer Personnel 274,187$ Operating 4,689,795$ Capital Outlay 135,500$ Transfers 506,038$ Debt 174,149$

Total 5,779,669$ -$ 5,779,669$ -$ -$

Water Personnel 1,924,057$ Operating 3,643,148$ Capital Outlay 112,500$ Transfers 2,092,252$ Debt 302,846$

Total 8,074,803$ 8,074,803$ 13,854,472$ -$ 13,854,472$ -$ -$

108,306,668$ 93,148,389$ 13,854,472$ 786,300$ 517,507$

General Government Operating Subtotal

Enterprise Fund Subtotal

Total Operating Budget

5

FY15 FY16 FY17 FY18Budget Proposed

36,092,219 37,325,786 38,632,834 39,921,552

Essex North Shore Agricultural and Technical High School (1)

1,923,622 1,992,716 1,912,967 2,166,133

Municipal Contribution (2)

17,250,306 17,725,148 18,183,015

TOTAL EDUCATION COST 55,266,147 57,043,650 58,728,816

EDUCATION COSTS

School Committee Controlled

* After the Fiscal Year ends, the Town and School department calculate the total costs of running the Danvers school system. The municipal contribution is reflected separately from the committee controlled budget.

6

SECTION B

FISCAL YEAR 2018

OPERATING BUDGET

MODERATOR, SELECTMEN, FINANCE COMMITTEE RESERVE, LEGAL COUNSEL

The Town Moderator is elected annually to a one-year term, is paid a modest stipend, and is the presiding officer of the Town Meeting, ensuring that the Town’s business is conducted in an orderly manner. The Moderator has complete authority over all matters of rules, procedures, regulations and the preservation of decorum. The Town Moderator also appoints members of the Finance Committee and the Town’s representative to the Essex Tech regional vocational school.

The Board of Selectmen is comprised of five members, serving staggered three-year terms, and is the chief legislative body in Danvers, setting broad policy, acting in the best interest of its citizens, and responsible for hiring the Town Manager. Selectmen receive modest compensation, and their budget allows for payment of conference fees and the like. The Board sets the time and place of Town Meeting and issues the Warrant, including the Annual Town Budget. In addition to these duties, Board members serve as the Licensing Authority for the Town and review and vote to establish Traffic Rules & Orders.

The Finance Committee Reserve Fund exists in accordance with M.G.L. Chapter 40, §6 to allow for an appropriate sum of money to be transferred (by vote of the Finance Committee) to a General Government department, if a need arises. At the request of the Board of Selectmen, the proposed FY 2018 budget includes a $50,000 increase (for a total of $150,000) for this Fund. Although infrequently used, this is an important funding source that had been reduced steadily over the past decade ($144,000 in FY 2007). Unexpended funds are returned to the General Fund at year’s end.

The Finance Committee is a nine-member advisory body appointed by the Town Moderator to staggered three-year terms. They review all departmental budgets and proposed warrant articles to be placed before the Town Meeting body. Members do not vote at Town Meeting or engage in debate; however, their recommendation on any Warrant article is treated as the main motion under that article.

Town Counsel services are provided in Danvers by a private law firm on a contractual basis. The Town also uses special counsel when appropriate. Legal costs for this firm are budgeted in the revenue divisions and in the Town Counsel budget of the General Government. The proposed budget reflects a flat budget across all divisions except tax supported, which will increase by $20,000 for the cost of renewing the cable license contract.

Legal Services FY 2017 FY 2018 General Government $121,423 $141,423 DPW – Water Division $31,713 $31,713 DPW – Sewer Division $9,851 $9,851 DPW – Electric Division $69,257 $69,257

Total $232,244 $252,244

7

MODERATOR 2015 2016 2017 2018Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)MISCELLANEOUS SUPPLIES 55820 264 206 1,150 1,150 - 0.0%_Total_Operating 264 206 1,150 1,150 - 0.0%

S&W - ELECTED POSITIONS 51230 400 400 400 400 - 0.0%_Total_Personal Services 400 400 400 400 - 0.0%

_Total_1140 MODERATOR 664 606 1,550 1,550 - 0.0%

SELECTMEN 2015 2016 2017 2018Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)ADVERTISING 53404 554 601 650 650 - 0.0%MISCELLANEOUS SUPPLIES 55820 126 120 400 400 - 0.0%MEALS 57103 75 0 100 100 - 0.0%CONFERENCE FEES 57104 339 423 900 900 - 0.0%PARKING, TOLLS, ETC. 57107 0 0 50 50 - 0.0%DUES AND MEMBERSHIPS 57301 6,464 6,299 6,000 6,000 - 0.0%_Total_Operating 7,558 7,443 8,100 8,100 - 0.0%

S&W - ELECTED POSITIONS 51230 15,500 15,500 15,500 15,500 - 0.0%_Total_Personal Services 15,500 15,500 15,500 15,500 - 0.0%

_Total_1220 SELECTMEN 23,058 22,943 23,600 23,600 - 0.0%

FINANCE COMMITTEE RESERVE FUND 2015 2016 2017 2018Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)RESERVE FUND TRANSFER 56912 0 0 100,000 150,000 50,000 50.0%_Total_Operating 0 0 100,000 150,000 50,000 50.0%

_Total_1320 FINANCE COMMITTEE RESERVE 0 0 100,000 150,000 50,000 50.0%

TOWN COUNSEL 2015 2016 2017 2018Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)LEGAL SERVICES 53011 87,711 119,376 121,423 121,423 - 0.0%CABLE CONTRACT RENEWAL 55823 0 0 0 20,000 20,000 0.0%_Total_Operating 87,711 119,376 121,423 141,423 20,000 16.5%

_Total_1510 TOWN COUNSEL 87,711 119,376 121,423 141,423 20,000 16.5%

FY17-18

MODERATOR

FY17-18

SELECTMEN

FY17-18

FINANCE COMMITTEE RESERVE FUND

LEGAL COUNSEL

FY17-18

8

TOWN MANAGER’S OFFICE

DEPARTMENT PERSONNEL

FTE FTE FTETown Manager's Office FY16 FY17 FY18

Town Manager 1.00 1.00 1.00 Executive Secretary 1.00 1.00 1.00

subtotal 2.00 2.00 2.00

DEPARTMENT DESCRIPTION

• Plans, organizes, directs, and evaluates all activities of the Town, including the developmentof broad objectives for Town operations

• Administers all Town by-laws and regulations of the Board of Selectmen and implementsBoard policy objectives

• Identifies community challenges and proposes short-term and long-term solutions• Supervises Department Heads• Accounts for all funds and develops broad fiscal policy• Represents the Town to other municipal, regional, state, and business groups;• Presents recommendations to the Board of Selectmen, Finance Committee and Town

Meeting on use of funds, adoption of by-laws, purchase of land, and sale of bonds

BUDGET COMMENTARY

The most significant change to the Town Manager’s Office budget in FY 2018 is a $2,500 increase in Out of State Travel to encourage new members of the Leadership Team to participate fully in professional development opportunities.

GOALS AND HIGHLIGHTS FOR FISCAL YEAR 2018

As in FY 2016, succession planning and recruitment of key members of the Leadership Team highlighted FY 2017, but should be less of a focus in FY 2018. Implementation of the IT Study (completed in FY 2016) remains a priority, as does facilitating the successful completion of several high-profile capital projects, including DHS Athletic Fields and the Police Dispatch Center, and the completion (and possible implementation) of the regional dispatch study to determine whether it is both economically and programmatically feasible for Danvers to host a regional center. Planning for the Smith School project (approved for MSBA funding in FY 2017) is also an FY 2018 priority.

9

2015 2016 2017 2018Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 60,507 65,064 68,329 70,042 1,713 2.5%LONGEVITY 51415 675 700 775 775 0 0.0%SICK LEAVE INCENTIVE 51907 525 550 575 575 0 0.0%_Total_Personal Services 61,707 66,314 69,679 71,392 1,713 2.5%

CONSULTING SERVICES 53009 0 0 10,000 10,000 0 0.0%GENERAL OFFICE SUPPLIES 54201 2,222 1,776 2,000 2,000 0 0.0%MISCELLANEOUS SUPPLIES 55820 315 501 200 200 0 0.0%MEALS 57103 291 383 250 250 0 0.0%CONFERENCE FEES 57104 767 738 1,400 1,400 0 0.0%PARKING, TOLLS, ETC. 57107 0 155 300 300 0 0.0%DUES AND MEMBERSHIPS 57301 2,611 1,898 2,000 2,000 0 0.0%SUBSCRIPTIONS: GENERAL FUND 57302 0 0 1,000 1,000 0 0.0%OUT OF STATE TRAVEL EXPENSES 57901 16,481 22,082 20,000 22,500 2,500 12.5%_Total_Operating 22,687 27,533 37,150 39,650 2,500 6.7%

_Total_1230 TOWN MANAGER 84,394 93,847 106,829 111,042 4,213 3.9%

TOWN MANAGER'S OFFICE

FY17-18

10

MANAGEMENT & INFORMATION SERVICES


DEPARTMENT RESPONSIBILITIES

• Maintains Town-wide technology infrastructure and provides staff support and training;• Plans and implements software and hardware upgrades;• Oversees Legal and Property and Casualty Insurance functions;• Facilitates Town Manager programs and initiatives;• Coordinates Town-wide Procurement efforts; and• Provides constituent services.

BUDGET COMMENTARY

The FY 2018 budget includes a 5.04% increase over FY 2017. On the operations side, the MIS budget is experiencing ordinary increases in the cost of our software maintenance agreements and hardware.

On the personnel side, the Town hired an IS project manager as recommended by the FY 2016 IT study to focus, in large part, on Smart Grid technology. That position was previously budgeted, but not filled, as an Electric Division position and expense. After further evaluation and in coordination with the Elec-tric Division, the MIS Department recommended that it is more appropriate for the IS Project Manager position to be under the supervision of the IT Director. We anticipate that 25% of the responsibilities of that position have been allocated to support General Government IT functions. As such, 25% of the cost of the IS Project Manager position is included in the MIS budget and 75% of that expense is borne by the Electric Division.


In FY 2018, the MIS Department plans to continue implementing the recommendations of the FY 2016 IT study, including finalizing a living five-year technology plan and working with the Human Resources and Accounting Departments to update the Town’s time and attendance and payroll functions. We also plan to continue advancing the Smith School project and investigating potential regional technology pro-jects.

FTE FTE FTEMgmt & Info Systems FY16 FY17 FY18

Assistant Town Manager 1.00 1.00 1.00 IT Director (50% Electric) - 0.50 0.50 Info Systems Project Manager - 0.25 0.25 Administrative Assistant 1.00 1.00 1.00 Network Engineer 1.00 1.00 1.00 Network Administrator 1.00 1.00 1.00 Technical Support Specialist 1.00 1.00 1.00

subtotal 5.00 5.75 5.75

11

2015 2016 2017 2018Account_and_Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 243,780 282,914 357,446 378,659 21,213 5.9%S&W - TEMPORARY POSITIONS 51210 0 0 0 0 0 0.0%LONGEVITY 51415 1,050 1,150 1,200 1,525 325 27.1%SICK LEAVE INCENTIVE 51907 875 1,275 1,675 1,675 0 0.0%CLEANING ALLOWANCES 51925 0 0 0 0 0 0.0%_Total_Personal Services 245,705 285,339 360,321 381,859 21,538 6.0%

OFFICE EQUIPMENT MAINTENANCE 52401 495 295 500 500 0 0.0%COMPUTER MAINTENANCE 52402 41,814 39,506 50,200 52,500 2,300 4.6%TELEPHONE SYSTEM MAINTENANCE 52419 7,570 8,292 9,000 10,500 1,500 16.7%SOFTWARE MAINTENANCE 52421 51,796 47,523 71,209 78,000 6,791 9.5%POSTAGE METER/SCALE RENTAL 52707 0 0 1,000 1,000 0 0.0%CONSULTING SERVICES 53009 2,840 14,000 3,000 3,000 0 0.0%TRAINING SERVICES 53019 3,635 7,660 10,250 10,250 0 0.0%TELEPHONE 53401 16,098 16,900 9,586 9,586 0 0.0%POSTAGE 53402 70,645 78,295 83,540 83,540 0 0.0%ADVERTISING 53404 2,500 3,610 2,000 2,000 0 0.0%PRINTING (NON-FORMS) 53405 2,245 2,068 2,400 7,400 5,000 208.3%FITNESS CLUB MEMBERSHIPS 53801 250 0 500 500 0 0.0%GENERAL OFFICE SUPPLIES 54201 1,469 1,310 1,000 1,000 0 0.0%PHOTOCOPY SUPPLIES 54202 8,906 8,121 14,000 14,500 500 3.6%COMPUTER SUPPLIES 54204 3,905 2,781 6,000 12,000 6,000 100.0%SOFTWARE 54205 0 0 2,000 2,000 0 0.0%MISCELLANEOUS SUPPLIES 55820 25 0 0 0 0 0.0%PERMITS AND LICENSES 56911 400 400 700 900 200 28.6%MILEAGE REIMBURSEMENT 57102 680 724 1,200 1,200 0 0.0%MEALS 57103 31 39 0 0 0 0.0%CONFERENCE FEES 57104 2,563 1,474 1,700 2,000 300 17.6%DUES AND MEMBERSHIPS 57301 1,500 1,861 1,585 2,035 450 28.4%SUBSCRIPTIONS 57302 51 0 50 50 0 0.0%TUITION REIMBURSEMENT 57801 2,121 0 5,832 6,000 168 2.9%_Total_Operating 221,539 234,859 277,252 300,461 23,209 8.4%

CAPITAL OUTLAY - REPLACE. EQ. 58701 0 0 12,000 0 -12,000 -100.0%_Total_Capital Outlay 0 0 12,000 0 -12,000 -100.0%

_Total_1250 MGMT & INFO SERVICES 467,244 520,198 649,573 682,320 32,747 5.0%

MANAGEMENT & INFORMATION SERVICES

FY17-18

12

DEPARTMENT HEADS


FTE FTE FTEDepartment Heads FY16 FY17 FY18

Town Manager 1.00 1.00 1.00 Assistant Town Manager 1.00 1.00 1.00 Finance Director * - 1.00 1.00 Town Accountant * 1.00 - - Director of Administrative Services 1.00 1.00 1.00 Director of Human Resources 1.00 1.00 1.00 Police Chief 1.00 1.00 1.00 Fire Chief 1.00 1.00 1.00 Director of Code Administration 1.00 1.00 1.00 Director of Public Works 1.00 1.00 1.00 Chief Assessor 1.00 1.00 1.00 Director of Planning & HS 1.00 1.00 1.00

subtotal 11.00 11.00 11.00 Between FY 2016 and FY 2017 the Town Accountant/DPW Business Manager retired. At that point a Finance Director was hired and the newly hired Town Accountant position was kept in the Accounting Department budget. See Accounting Department budget for further FTE detail.


The following departmental budgets indicate which Department Head belongs with each department, however, the compensation of the above Department Heads are budgeted in this account.

BUDGET COMMENTARY

Over the past several years, a number of Department Heads retired after many years of service. The FY 2018 budget reflects a reduction of roughly 2% due to the fact that the salaries of the new Department Heads tend to be lower on the Management Compensation Plan scale.

In addition to general wage increases for Department Heads, the proposed budget includes $9,000 to cover the cost of tuition reimbursement for a member of the Leadership Team who began pursuing a Master of Public Administration degree in FY 2017.

13

2015 2016 2017 2018Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 1,253,440 1,251,071 1,352,927 1,295,675 -57,252 -4.2%EDUCATIONAL INCENTIVE 51905 28,304 10,852 0 31,010 31,010 100.0%_Total_Personal Services 1,281,744 1,261,923 1,352,927 1,326,685 -26,242 -1.9%

UNIFORMS 55805 0 0 650 650 0 0.0%TRAVEL ALLOWANCE 57101 4,280 6,480 6,480 6,480 0 0.0%SUBSCRIPTONS 57302 0 0 0 0 0 0.0%TUITION REIMBURSEMENT 57801 0 0 9,000 9,000 0 0.0%_Total_Operating 4,280 6,480 16,130 16,130 0 0.0%

_Total_1290 DEPARTMENT HEAD SALARIES 1,286,024 1,268,403 1,369,057 1,342,815 -26,242 -1.9%

DEPARTMENT HEADS

FY17-18

14

ACCOUNTING

DEPARTMENT PERSONNEL FTE FTE FTE

Accounting/Finance FY16 FY17 FY18Finance Director - 1.00 1.00 Town Accountant 1.00 1.00 1.00 Assistant Town Accountant 1.00 - - Staff Accountant 1.00 1.00 1.00 Payroll Specialist 1.00 1.00 1.00 Accouting Clerk 2.00 2.00 2.00

subtotal 6.00 6.00 6.00


• Maintains financial records for the Town• Maintains and processes Town and School payrolls and employee databases• Maintains and processes accounts payable for Town and School• Maintains budgetary accounting systems for Town and School• Oversees Town audits

BUDGET COMMENTARY

The increase in operating expenses is driven by changes to conference fees and training services in an effort to cross train staff and have the Town Accountant attend the annual conference of the Govern-ment Finance Officers Association. Operating expenses increase are partially offset by a decrease in au-diting services, a line item that covers the Town’s costs of hiring an independent auditor to audit its books annually and the cost of hiring an actuary to calculate its Other Post Employment Benefits liability as required by GASB.


Continue tradition of receiving the Certificate of Achievement for Excellence in Financial Reporting from the GFOA, while receiving no audit findings. Continue transition to new Town Accountant through the ongoing trainings offered by various municipal services. Implement new National Accounting Require-ments.

15

2015 2016 2017 2018Account_and_Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 256,569 297,340 310,330 320,000 9,670 3.1%OVERTIME - SCHEDULED 51310 2,920 590 2,500 2,500 0 0.0%LONGEVITY 51415 2,525 1,975 2,050 1,725 -325 -15.9%SICK LEAVE INCENTIVE 51907 2,650 1,025 2,025 2,600 575 28.4%_Total_Personal Services 264,664 300,930 316,905 326,825 9,920 3.1%

SOFTWARE MAINTENANCE 52421 1,882 290 5,400 5,400 0 0.0%AUDITING SERVICES 53010 24,340 26,980 37,747 36,500 -1,247 -3.3%TRAINING SERVICES 53019 2,402 1,706 3,300 4,000 700 21.2%FITNESS CLUB MEMBERSHIPS 53801 375 375 500 750 250 50.0%GENERAL OFFICE SUPPLIES 54201 2,619 4,509 6,000 6,000 0 0.0%MILEAGE REIMBURSEMENT 57102 470 1,157 750 1,000 250 33.3%CONFERENCE FEES 57104 0 584 975 3,000 2,025 207.7%DUES AND MEMBERSHIPS 57301 520 630 550 680 130 23.6%TUITION REIMBURSEMENT 57801 2,099 2,417 5,216 5,400 184 3.5%_Total_Operating 34,707 38,648 60,438 62,730 2,292 3.8%

CAPITAL OUTLAY - REPLACE. EQ. 58701 0 0 5,000 0 -5,000 -100.0%_Total_Capital Outlay 0 0 5,000 0 -5,000 -100.0%

_Total_1350 TOWN ACCOUNTANT 299,371 339,578 382,343 389,555 7,212 1.9%

ACCOUNTING

FY17-18

16

ASSESSING

DEPARTMENT PERSONNEL FTE FTE FTE

Assessing FY16 FY17 FY18Chief Assessor 1.00 1.00 1.00 Assistant Assessor 1.00 1.00 1.00 Senior Account Clerk 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00

subtotal 4.00 4.00 4.00


• Establish all property values for over 9,600 parcels of real estate and 1,400 personalproperty accounts. Total valuation for real and personal property for Fiscal Year 2017 isclose to $5.2 billion.

• Issue warrants to the Tax Collector for collection of all real estate and personal propertytaxes as well as motor vehicle and boat excise taxes.

• Administer individual property tax exemptions as defined by State law (MGL c. 59, § 5).• Track all changes to real estate parcels and personal property accounts, including

ownership, improvements, new construction, condo conversions and subdivisions.• Conduct a Triennial Update every third year and Interim Updates the two years in between

to adjust real estate property values to reflect market value.• Update the 67 assessors’ maps annually to reflect all subdivisions and lot changes that have

occurred in the prior calendar year.• Process all abatements due to sale, overvaluation or incorrect billing information for

approximately 30,000 motor vehicle and 1,000 boat excise bills that are issued annually.• Add unpaid water, sewer and electric bill amounts to tax bills as liens; set up/track

apportionments for sewer betterment assessments.

BUDGET COMMENTARY

• Software maintenance line item increase due to vendor inflation increase in serviceagreement


• Conduct an Interim Year Motor Vehicle analysis and update of all real estate and personalproperty values to reflect market value as of January 1, 2017, as mandated by theDepartment of Revenue.

• Conduct preliminary field work in preparation for FY 2019 Triennial Revaluation• Testing of LiDAR imaging to be used in cyclical inspection program starting in FY 2018.• Implement and maintain technology initiatives to streamline the flow of information to the

residents of Danvers and across departments.

17

2015 2016 2017 2018Account_and_Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 152,647 158,644 165,864 172,712 6,848 4.1%S&W - APPOINTED POSITIONS 51220 2,188 2,500 2,500 2,500 0 0.0%OVERTIME - SCHEDULED 51310 0 0 0 0 0 0.0%LONGEVITY 51415 1,025 1,075 1,200 1,675 475 39.6%SICK LEAVE INCENTIVE 51907 525 0 1,150 1,150 0 0.0%_Total_Personal Services 156,385 162,219 170,714 178,037 7,323 4.3%

SOFTWARE MAINTENANCE 52421 11,300 11,765 12,115 12,560 445 3.7%CONSULTING SERVICES 53009 53,000 47,374 62,950 62,950 0 0.0%LAND APPRAISALS 53014 1,825 571 2,000 2,000 0 0.0%TRAINING SERVICES 53019 1,600 1,410 2,500 2,500 0 0.0%FITNESS CLUB MEMBERSHIPS 53801 750 625 750 750 0 0.0%MAP REVISIONS 53807 2,400 1,354 2,400 2,400 0 0.0%GENERAL OFFICE SUPPLIES 54201 2,400 3,234 3,000 3,000 0 0.0%APPELLATE TAX BOARD 56903 325 82 325 325 0 0.0%DEED TRANSFERS 56905 100 75 100 100 0 0.0%TRAVEL ALLOWANCE 57101 2,448 3,600 3,600 3,600 0 0.0%MILEAGE REIMBURSEMENT 57102 100 0 100 100 0 0.0%CONFERENCE FEES 57104 0 0 2,500 2,500 0 0.0%PARKING, TOLLS, ETC. 57107 150 59 150 150 0 0.0%DUES AND MEMBERSHIPS 57301 382 360 360 360 0 0.0%SUBSCRIPTIONS 57302 533 217 535 535 0 0.0%_Total_Operating 77,313 70,726 93,385 93,830 445 0.5%

_Total_1410 ASSESSING 233,698 232,945 264,099 271,867 7,768 2.9%

FY17-18

ASSESSING

18

ADMINSTRATIVE SERVICES



• Maintains the vital statistics for the Town, the annual census, including dog licenses,and processes all licenses and permits authorized by the Board of Selectmen

• Compiles the Town Meeting minutes and certifications• Maintains Board of Appeals and Planning Board filings and certifications• Processes real estate tax payments, motor vehicle excise payments, personal property,

boat excise tax payments, parking tickets, and municipal lien certificates• Manages all Short & Long Term Debt Authorizations• Invests a portfolio valued in excess of $60.0 million, as well as performing monthly

reconciliations and the filing of State and Federal reports• Oversees all local, state, and federal elections held in the Town• Functions as Public Records Access Officer• Assists with Open Meeting Law Compliance

BUDGET COMMENTARY

The FY 2018 Budget continues to reflect "market adjustments" for certain employees and one election. No additional staffing is planned. A continued emphasis on attempting to limit "Other Expense" increases by outsourcing when savings can be achieved.


During FY 2018, we expect to continue expanding our online offerings. Staff will continue to work with delinquent taxpayers to enter into payment plans, which ultimately reflects positively on the financial health of the Town. Act as Local Liaison for the initial planning stages of the 2010 Federal Census. Begin planning for replacement/upgrading of Voting Tabulation equipment

FTE FTE FTEAdministrative Services FY16 FY17 FY18

Director of Administraive Services 1.00 1.00 1.00 Assistant Treasurer/Collector 1.00 1.00 1.00 Assistant Clerk 1.00 1.00 1.00 Sr. Accounting Clerk 2.00 2.00 2.00 Accounting Clerk 2.50 2.50 2.50 Switchboard/Receptionist (2) 1.00 1.00 1.00

subtotal 8.50 8.50 8.50

19

2015 2016 2017 2018Account_and_Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 287,456 315,310 345,364 336,429 -8,935 -2.6%S&W PERMANENT - PART TIME 51120 59,606 66,155 48,309 73,150 24,841 51.4%S&W - TEMPORARY POSITIONS 51210 0 0 0 0 0 0.0%S&W - APPOINTED POSITIONS 51220 600 500 600 400 -200 -33.3%S&W - ELECTION WORKERS 51222 15,600 8,803 19,395 6,465 -12,930 -66.7%OVERTIME - SCHEDULED 51310 1,551 422 1,500 1,500 0 0.0%LONGEVITY 51415 4,575 5,100 5,725 5,225 -500 -8.7%SICK LEAVE INCENTIVE 51907 3,151 2,971 3,500 3,500 0 0.0%_Total_Personal Services 372,539 399,261 424,393 426,669 2,276 0.5%

OFFICE EQUIPMENT MAINTENANCE 52401 2,759 2,585 3,000 3,000 0 0.0%SOFTWARE MAINTENANCE 52421 34,191 33,879 40,517 40,000 -517 -1.3%BANKING SERVICES 53016 0 140 1,500 1,500 0 0.0%BOOK BINDING 53017 675 360 500 500 0 0.0%TRAINING SERVICES 53019 0 0 0 0 0 0.0%PRINTING (NON-FORMS) 53405 18,438 15,843 13,500 13,500 0 0.0%GENERAL OFFICE SUPPLIES 54201 5,391 6,607 5,000 6,000 1,000 20.0%FORMS PRINTING 54206 6,831 9,232 9,500 9,500 0 0.0%OFFICE EQUIPMENT 54207 172 262 500 500 0 0.0%TAX TITLE COSTS 56907 2,586 3,279 4,000 4,000 0 0.0%MILEAGE REIMBURSEMENT 57102 247 124 250 250 0 0.0%CONFERENCE FEES 57104 1,426 1,397 1,500 2,000 500 33.3%PARKING, TOLLS, ETC. 57107 0 80 75 100 25 33.3%DUES AND MEMBERSHIPS 57301 1,230 1,384 1,600 1,500 -100 -6.3%TUITION REIMBURSEMENT 57801 0 0 0 0 0 0.0%_Total_Operating 73,946 75,172 81,442 82,350 908 1.1%

CAPITAL OUTLAY - REPLACE. EQ. 58701 0 0 0 0 0 0.0%_Total_Capital Outlay 0 0 0 0 0 0.0%

_Total_1430 ADMINISTRATIVE SERVICES 446,485 474,433 505,835 509,019 3,184 0.6%

ADMINISTRATIVE SERVICES

FY17-18

20

HUMAN RESOURCES



• Direct and oversee all employee and personnel management, including employee relations,conflict management and resolution, performance management, recruitment, compliance,compensation and benefit programs, progressive discipline and labor relations

• Negotiate with all bargaining units in general government• Facilitate and manage training and development programs for all employees• Oversee all talent acquisition programs, including recruiting, sourcing and selection for all

full-time vacancies; pre-screening, onboarding and new hire administration• Develop and administer all employee recognition and rewards programs• Manage and administer all benefit programs including, health, dental, life insurance;

worker’s compensation and unemployment compensation programs; employee assistanceprograms and Flex Spending (125 plan) for all eligible employees

• Coordinate the safety program in all municipal departments• Manage and oversee the parking ticket enforcement program in the downtown area and

at all shopping malls in town.

BUDGET COMMENTARY

There are no significant operational changes for the upcoming year.


The Human Resources Department has undergone a leadership change with the addition of the new Director. The Human Resources Department is committed to implementing new processes to better streamline and automate productivity and accountability among Town employees, including time and attendance systems and procedures, recruiting and onboarding, formal town policy production and procedures, benefit administration and compliance. The implementation of an employee engagement survey in late FY 2017 will provide additional resources and opportunities for positive future change, and additional training and development for all Town employees.

FTE FTE FTEHuman Resources FY16 FY17 FY18

Director of Human Resources 1.00 1.00 1.00 Human Resources Assistant 0.87 0.87 0.87 Benefits Coordinator 1.00 1.00 1.00 Parking Clerk Officer 0.50 0.50 0.50

subtotal 3.37 3.37 3.37

21

2015 2016 2017 2018Account_and_Description Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 43,149 48,338 51,419 54,022 2,603 5.1%S&W PERMANENT - PART TIME 51120 43,037 46,556 49,834 53,404 3,570 7.2%S&W - TEMPORARY POSITIONS 51210 14,935 15,435 18,348 18,853 505 2.8%LONGEVITY 51415 675 750 1,250 1,425 175 14.0%SICK LEAVE INCENTIVE 51907 0 0 1,150 1,150 0 0.0%_Total_Personal Services 101,796 111,079 122,001 128,854 6,853 5.6%

ARBITRATION FEES 53018 1,000 0 2,000 2,000 0 0.0%TRAINING SERVICES 53019 3,294 4,200 5,000 5,000 0 0.0%EMPLOYEE ASSISTANCE PROGRAM 53021 0 0 1,000 1,000 0 0.0%ADVERTISING 53404 4,895 2,528 2,200 2,200 0 0.0%FITNESS CLUB MEMBERSHIPS 53801 310 224 400 400 0 0.0%PERSONNEL ADMINISTRATION 53808 3,827 11,327 8,000 11,300 3,300 41.3%GENERAL OFFICE SUPPLIES 54201 1,735 951 1,500 1,500 0 0.0%GASOLINE - REGULAR 54801 0 0 0 0 0 0.0%PARKING CLERK SUPPLIES 55826 136 3,216 2,000 2,000 0 0.0%MILEAGE REIMBURSEMENT 57102 0 79 200 200 0 0.0%CONFERENCE FEES 57104 581 486 500 500 0 0.0%DUES AND MEMBERSHIPS 57301 357 357 375 375 0 0.0%TUITION REIMBURSEMENT 57801 0 0 0 0 0 0.0%_Total_Operating 16,135 23,368 23,175 26,475 3,300 14.2%

_Total_1520 HUMAN RESOURCES 117,931 134,447 145,176 155,329 10,153 7.0%

HUMAN RESOURCES

FY17-18

22

RETIREMENT SYSTEM



The Danvers Retirement System is independently governed by a five-member Board and is administered by the Finance Director. Retirement System staff maintain member and retiree databases, process retire-ment and disability applications; counsel employees regarding retirement options and future benefits; process and maintain retiree payroll; maintain system accounting and investment activity; and implement legislative changes.

BUDGET COMMENTARY

The major component of this budget is the retirement assessment that is determined by an actuarial val-uation and approved by the Public Employee Retirement Administration Commission (PERAC). This year’s assessment increased $485,642. Smaller increases are a result of contractual changes, and the costs as-sociated with the increase in system assets.


The Danvers Retirement Board, having reviewed the performance and contracts of all money managers in FY 2017, will perform a Request for Proposals and issue a contract for an Actuary in FY 2018. The Re-tirement System staff will continue to serve the retirees and members in the most efficient manner.

FTE FTE FTERetirement System FY16 FY17 FY18

Retirement Assistant 1.00 1.00 1.00 Retirement Clerk 0.50 0.50 0.50

subtotal 1.50 1.50 1.50

23

Town of DanversContributory Retirement SystemBudget Analysis

FY2017 Total Budget

FY2018 Total Budget

FY17-18 Increase ($)

FY17-18 Increase (%) General Gov't

Water Division

Sewer Division

Electric Division

Housing Authority

Salaries 101,397 104,439 3,042 3.00% 84,585 3,614 37,598 14,246 1,629

Custodial Services 65,000 55,000 (10,000) -15.38% 44,545 1,903 19,800 7,502 858 Legal Services 5,000 10,000 5,000 100.00% 8,099 346 3,600 1,364 156 Office Expenses 7,500 7,500 - 0.00% 6,074 260 2,700 1,023 117 Software/Comp. Maint. 22,100 23,200 1,100 4.98% 18,790 803 8,352 3,164 362 Fiduciary Insurance 7,000 7,280 280 4.00% 5,896 252 2,621 993 114 Investment Consultant 75,000 80,000 5,000 6.67% 64,792 2,768 28,800 10,912 1,248 Actuarial Study 9,575 8,000 (1,575) -16.45% 6,479 277 2,880 1,091 125 Training, Meetings, etc. 4,500 4,500 - 0.00% 3,645 156 1,620 614 70

Total Other Expense 195,675 195,480 (195) -0.10% 158,319 6,764 70,373 26,663 3,049

Contributory Retirement 6,259,936 6,760,731 500,795 8.00% 5,487,960 220,385 25,808 922,195 104,385

Veterans Retirement 55,000 37,000 (18,000) -32.73% 37,000 - - - -

Total Budget 6,612,008 7,097,650 485,642 7.34% 5,767,865 230,762 133,779 963,104 109,064

POLICE DEPARTMENT



The Danvers Police Department is a community service law enforcement organization striving to maintain the safety of its citizens and focused on quality of life issues and the resolution of conflict within our com-munity. The core values that the department relies on to deliver quality police services include:

• Maintaining high standards of integrity and ethics;• Protecting constitutional rights;• Problem solving and order maintenance;• Collaborating and partnering with citizens;• Reducing crime and fear of crime;• Protecting vulnerable populations.

BUDGET COMMENTARY

The proposed budget will allow the Department to continue to provide exceptional law enforcement ser-vices to our residents and businesses, while maintaining current community outreach and crime prevention programs within the community and our schools.


The construction of the new Public Safety Communication facility is approximately half way complete, with an anticipated opening in July 2017. This state of the art facility will enhance the abilities of our Communi-cation Personnel in providing the highest quality Police, Fire and EMS services for our community. As part of our future planning, we will be seeking additional communities interested in joining our communication center in an effort to bring about a regionalized approach to our services.

During FY 2017, seven (7) new police officers were hired and completed both their Police Academy and field training. With these new hires, the Police Department has reached its full staffing level of 46 sworn officers for the first time since the Department suffered layoffs in 2007. Increased work force has allowed us to not only fill vacancies in Patrol, but specialty assignments, including Detectives, as well. The full complement of officers allows us to provide increased police coverage and community outreach.

FTE FTE FTEPolice Department FY16 FY17 FY18

Police Chief 1.00 1.00 1.00 Captain 2.00 2.00 2.00 Lieutenants 2.00 2.00 2.00 Sergeants 8.00 8.00 8.00 Patrol Officers 33.00 33.00 33.00 Civilian Dispatchers 8.00 8.00 8.00 Civilian Crime Anaylst 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 Confidential Secretaries 2.00 2.00 2.00

subtotal 58.00 58.00 58.00

25

2015 2016 2017 2018Account_and_Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 3,301,536 3,271,038 3,712,676 3,816,652 103,976 2.8%S&W PERMANENT - PART TIME 51120 22,198 20,448 21,803 22,529 726 3.3%S&W - TEMPORARY POSITIONS 51210 8,798 5,980 19,890 12,376 -7,514 -37.8%OVERTIME - SCHEDULED 51310 1,036,282 1,052,354 999,885 930,945 -68,940 -6.9%OVERTIME - HOLIDAY 51330 210,919 215,075 231,624 239,272 7,648 3.3%FLSA OVERTIME PREMIUM 51350 770 939 0 0 0 0.0%NIGHT DIFFERENTIAL 51405 135,651 136,031 162,907 174,789 11,882 7.3%WEEKEND DIFFERENTIAL 51410 5,205 4,967 6,270 6,042 -228 -3.6%LONGEVITY 51415 38,367 34,423 35,630 38,436 2,806 7.9%OUT OF RANGE 51420 0 0 0 0 0 0.0%EDUCATIONAL INCENTIVE 51905 489,545 499,808 594,569 571,589 -22,980 -3.9%SICK LEAVE INCENTIVE 51907 31,250 31,000 35,900 35,900 0 0.0%SPECIALIST PAY 51910 0 35,144 58,042 57,560 -482 -0.8%EMT INCENTIVE 51915 12,800 14,600 16,200 15,600 -600 -3.7%CLEANING ALLOWANCES 51925 5,976 5,929 6,505 6,826 321 4.9%_Total_Personal Services 5,299,297 5,327,736 5,901,901 5,928,516 26,615 0.5%

OFFICE EQUIPMENT MAINTENANCE 52401 1,428 793 0 0 0 0.0%COMPUTER MAINTENANCE 52402 5,682 3,236 0 0 0 0.0%VEHICLE MAINTENANCE 52404 12,814 11,665 20,000 20,000 0 0.0%RADIO MAINTENANCE 52405 12,587 7,205 18,000 18,000 0 0.0%TELETYPE MAINTENANCE 52406 2,145 1,888 0 0 0 0.0%PHOTOCOPIER MAINTENANCE 52407 2,180 2,268 2,300 2,300 0 0.0%SOFTWARE MAINTENANCE 52421 17,865 20,056 23,000 23,000 0 0.0%CONSULTING SERVICES 53009 0 0 10,000 0 -10,000 -100.0%TRAINING SERVICES 53019 37,633 12,320 25,000 25,000 0 0.0%RECRUITMENT & SELECTION 53036 13,133 35,874 9,000 9,000 0 0.0%TELEPHONE 53401 41,311 41,717 43,000 43,000 0 0.0%ACCREDITATION 53809 22,239 9,770 14,000 19,270 5,270 37.6%GENERAL OFFICE SUPPLIES 54201 17,601 16,309 15,000 15,000 0 0.0%COMPUTER SUPPLIES 54204 3,305 3,765 12,800 14,800 2,000 15.6%FORMS PRINTING 54206 2,857 2,676 2,800 2,800 0 0.0%OFFICE EQUIPMENT 54207 6,071 2,349 8,450 8,450 0 0.0%GASOLINE - UNLEADED 54802 70,845 53,144 77,978 77,978 0 0.0%TIRES AND TUBES 54804 7,583 4,999 9,000 9,000 0 0.0%AMMUNITION 55802 16,283 9,418 14,000 17,095 3,095 22.1%CROSSING GUARD UNIFORMS 55803 0 1,000 1,000 1,000 0 0.0%PROTECTIVE CLOTHING 55804 1,108 41,076 4,600 4,600 0 0.0%UNIFORMS 55805 40,788 40,612 41,300 41,300 0 0.0%PHOTOGRAPHY SUPPLIES 55806 7,604 5,412 7,500 7,500 0 0.0%POLICE/CP SUPPLIES 55808 28,115 22,699 23,896 25,000 1,104 4.6%MISCELLANEOUS SUPPLIES 55820 7,318 3,512 4,000 4,000 0 0.0%MILEAGE REIMBURSEMENT 57102 2,080 1,046 3,000 3,000 0 0.0%MEALS 57103 1,527 1,195 1,800 1,600 -200 -11.1%CONFERENCE FEES 57104 9,950 5,635 4,600 4,600 0 0.0%PARKING, TOLLS, ETC. 57107 151 294 250 250 0 0.0%DUES AND MEMBERSHIPS 57301 11,875 11,352 15,064 16,064 1,000 6.6%TUITION REIMBURSEMENT 57801 2,573 5,399 7,000 7,000 0 0.0%_Total_Operating 406,651 378,684 418,338 420,607 2,269 0.5%

CAPITAL OUTLAY- ADD. EQUIP. 58501 23,000 0 0 0 0 0.0%CAPITAL OUTLAY - REPLACE. EQ. 58701 174,356 130,924 149,121 217,790 68,669 46.0%_Total_Capital Outlay 197,356 130,924 149,121 217,790 68,669 46.0%

_Total_2110 POLICE DEPARTMENT 5,903,304 5,837,344 6,469,360 6,566,913 97,553 1.5%

POLICE DEPARTMENT

FY17-18

26

FIRE DEPARTMENT


DEPARTMENT RESPONSIBILITIES

The mission of the Danvers Fire Department is to protect the lives and property of its citizens and visitors from the adverse effects of fire, medical emergencies and exposure to dangerous conditions stemming from manmade or natural disasters. In addition, the Department:

• Responds to a variety of emergency and non-emergency calls for assistance;• Conducts quarterly and annual building inspections;• Conducts building plan reviews for construction and renovation projects;• Enforces 527 CMR 1, the Massachusetts Comprehensive Fire Safety Code;• Conducts public fire safety education in our schools and Senior Center;• Assists other town departments with fire safety and code issues.

BUDGET COMMENTARY

Salaries and wages comprise 93% of the Fire Department budget. Contractual adjustments and an increase in the overtime line item account for the majority of the budget increase for FY 2018. Line items in the operating budget have been researched and adjusted to reflect the anticipated needs of the Department. A $50,000 capital outlay is requested to replace personal protective equipment (turnout gear).


Total call volume for FY 2016 was 7,259, a 3% decrease from FY 2015, primarily due to a decrease in false alarms/calls. The Department continues to stress fire prevention activities, and the number of in-service inspections of commercial and industrial occupancies continues to trend upward. The changes in several leadership positions are moving the Department in a positive direction. We are expecting delivery of the new Tower Ladder in early spring, and it should be in service before the start of FY 2018.

FTE FTE FTEFire Department FY16 FY17 FY18

Fire Chief 1.00 1.00 1.00 Deputy Fire Chief 1.00 1.00 1.00 Fire Prevention Officer (Captain) 1.00 1.00 1.00 Captains 4.00 4.00 4.00 Lieutenants 8.00 8.00 8.00 Firefighters 34.00 34.00 34.00 Confidential Secretary 0.87 0.87 0.87

subtotal 49.87 49.87 49.87

27

2015 2016 2017 2018Account_and_Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 3,033,031 3,149,599 3,290,201 3,370,069 79,868 2.4%OVERTIME - SCHEDULED 51310 605,641 524,051 448,326 498,326 50,000 11.2%OVERTIME - HOLIDAY 51330 190,913 201,035 203,911 207,630 3,719 1.8%NIGHT DIFFERENTIAL 51405 223,384 239,490 251,074 251,074 0 0.0%WEEKEND DIFFERENTIAL 51410 411 0 0 0 0 0.0%LONGEVITY 51415 22,493 24,162 27,377 24,470 -2,907 -10.6%OUT OF RANGE 51420 8,398 8,568 11,000 10,000 -1,000 -9.1%EDUCATIONAL INCENTIVE 51905 63,134 69,057 78,763 79,390 627 0.8%SICK LEAVE BUY-BACK (FIRE DEPT) 51906 16,039 0 74,000 74,600 600 0.8%SICK LEAVE INCENTIVE 51907 6,794 6,317 7,300 7,050 -250 -3.4%EMT INCENTIVE 51915 105,617 120,803 137,898 132,747 -5,151 -3.7%CLEANING ALLOWANCES 51925 600 300 600 600 0 0.0%TRAFFIC CONTROL 51930 0 0 0 5,000 5,000 100.0%_Total_Personal Services 4,276,455 4,343,382 4,530,450 4,660,956 130,506 2.9%

OFFICE EQUIPMENT MAINTENANCE 52401 295 1,515 800 800 0 0.0%TERMINAL/PRINTER MAINTENANCE 52403 48 329 1,500 1,500 0 0.0%VEHICLE MAINTENANCE 52404 44,896 40,319 45,000 45,000 0 0.0%RADIO MAINTENANCE 52405 14,612 6,657 10,514 13,514 3,000 28.5%SOFTWARE MAINTENANCE 52421 9,883 10,091 13,359 13,839 480 3.6%TOOL & EQUIP MAINTENANCE 52428 23,159 19,152 18,330 18,330 0 0.0%MEDICAL EXPENSES 53002 3,500 5,878 3,840 4,000 160 4.2%TRAINING SERVICES 53019 11,398 7,439 18,500 15,000 -3,500 -18.9%TELEPHONE 53401 11,838 8,336 7,070 9,270 2,200 31.1%FITNESS CLUB MEMBERSHIPS 53801 4,239 3,989 4,250 4,250 0 0.0%SAFETY SERVICES 53803 2,001 8,702 2,500 2,500 0 0.0%GENERAL OFFICE SUPPLIES 54201 2,887 3,603 3,500 3,500 0 0.0%SOFTWARE 54205 1,237 6,172 560 500 -60 -10.7%FORMS PRINTING 54206 56 1,110 1,200 1,000 -200 -16.7%FURNITURE & OFFICE EQUIP. 54207 242 5,597 3,346 3,346 0 0.0%MEDICAL SUPPLIES 54210 6,711 10,884 9,350 10,000 650 7.0%TOOLS AND EQUIPMENT 54610 18,310 20,705 22,612 22,612 0 0.0%GASOLINE - UNLEADED 54802 3,391 1,938 3,200 3,200 0 0.0%GASOLINE - DIESEL 54803 23,182 14,091 25,000 25,000 0 0.0%PROTECTIVE CLOTHING 55804 17,311 6,161 5,000 9,000 4,000 80.0%UNIFORMS 55805 23,149 28,709 28,225 31,225 3,000 10.6%FIRE ALARM SUPPLIES 55809 4,206 5,974 7,000 7,000 0 0.0%HOSE 55810 3,000 3,937 5,000 5,000 0 0.0%FIRE SUPPLIES 55811 3,000 5,500 4,000 4,000 0 0.0%PROVISIONS 55812 197 0 800 800 0 0.0%MISCELLANEOUS SUPPLIES 55820 1,205 1,742 2,750 2,750 0 0.0%MILEAGE REIMBURSEMENT 57102 45 183 1,000 1,000 0 0.0%CONFERENCE FEES 57104 3,321 2,333 5,080 5,000 -80 -1.6%DUES AND MEMBERSHIPS 57301 4,329 3,970 6,105 6,510 405 6.6%SUBSCRIPTIONS 57302 1,875 326 2,182 1,800 -382 -17.5%TUITION REIMBURSEMENT 57801 23,201 23,765 32,700 35,050 2,350 7.2%_Total_Operating 266,724 259,107 294,273 306,296 12,023 4.1%

CAPITAL OUTLAY- ADD. EQUIP. 58501 0 0 0 0 0 100.0%CAPITAL OUTLAY - REPLACE. EQ. 58701 69,406 36,423 0 50,000 50,000 100.0%_Total_Capital 69,406 36,423 0 50,000 50,000 100.0%

_Total_2210 FIRE DEPARTMENT 4,612,585 4,638,912 4,824,723 5,017,252 192,529 4.0%

FIRE DEPARTMENT

FY17-18

28

CODE ADMINISTRATION



Administer the codes and regulations of 780 CMR the State Building Code, 248 CMR the State Plumbing and Gas Code, 527 CMR the State Electrical Code, and 521 CMR the Handicap Access Code. Our goal in admin-istering the building and mechanical codes is public safety. Through the permitting, plan review, and in-spection process, Code Administration ensures that buildings are safe for occupancy. To that end, the de-partment averages 1,000 building permits, 450 plumbing permits, 450 gas permits, and 600 electrical per-mits per year. In conjunction with those permits, Code Administration has and will perform thousands of inspections.

Zoning administration duties include: interpretation and enforcement of the Zoning Bylaw, as well as ad-ministrative and technical staff to the Zoning Board of Appeals. The goal of the zoning administration is to ensure that the growth and development of the Town is in accordance with the Zoning Bylaw, as approved by Town Meeting. We assist residents and businesses that seek ZBA relief through that process to make it user friendly. To that end, Code Administration processes approximately 62 ZBA applications and holds 21 public hearings per year and assists the Planning Department Site Plan applications process and the Tech-nical Review Committee.

Sealer of Weights and Measures duties include annual testing of all weighing and measuring devices and processing consumer complaints regarding these issues. The goal of the Sealer of Weights and Measures is to ensure that consumers are guaranteed accurate weighing, measuring, and pricing in their purchases. To that end, this office performs 850 inspections of scales, liquid measure devices (gas stations, oil trucks), and price verifications (scanner test) per year.

BUDGET COMMENTARY

In 2009, the Department purchased software and started online permitting; in the current fiscal year, we are acquiring our first upgrade to that system through the tech warrant. The FY 2018 Software Maintenance (52421) line item has an increase of $5,900 to cover a onetime increase of $4,700 for in-field tablet software (tablets are in the tech warrant) and a $1,200 increase that is an annual hosting fee for the permit tracking program.

In the Capital Outlay (58501) line item we are carrying $22,400 amount for a new Ford Escape. We have been directed by the Fleet Supervisor-Equipment Division that the current Code vehicle (2003 Ford Ex-plorer, 130K mi.) is going to be taken out of service, and that there is no replacement vehicle available in the coming fiscal year.


To provide friendly and professional service to all customers who do business with the Department.

FTE FTE FTECode Administration FY16 FY17 FY18

Code Administration Manager 1.00 1.00 1.00 Assistant Building Inspector 1.00 1.00 1.00 Plumbing & Gas Inspector 1.00 1.00 1.00 Wiring Inspector 1.00 1.00 1.00 Senior Secretary 1.00 1.00 1.00 Part-Time ZBA Secretary 0.68 0.68 0.68

subtotal 5.68 5.68 5.68

29

2015 2016 2017 2018Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 239,789 254,788 258,229 266,141 7,912 3.1%S&W PERMANENT - PART TIME 51120 27,167 29,086 27,474 31,551 4,077 14.8%S&W - TEMPORARY POSITIONS 51210 21,682 22,231 30,309 31,841 1,532 5.1%OVERTIME - SCHEDULED 51310 3,844 5,622 5,650 5,683 33 0.6%OVERTIME - UNSCHEDULED 51320 0 0 0 0 0 0.0%LONGEVITY 51415 2,775 3,100 3,300 3,825 525 15.9%SICK LEAVE INCENTIVE 51907 3,281 1,750 3,725 3,725 0 0.0%_Total_Personal Services 298,538 316,577 328,687 342,766 14,079 4.3%

OFFICE EQUIPMENT MAINTENANCE 52401 295 0 400 400 0 0.0%VEHICLE MAINTENANCE 52404 0 0 1,000 1,000 0 0.0%SOFTWARE MAINTENANCE 52421 2,025 1,985 2,500 8,400 5,900 236.0%TRAINING SERVICES 53019 1,569 1,390 1,900 1,900 0 0.0%TELEPHONE 53401 957 978 1,500 1,500 0 0.0%GENERAL OFFICE SUPPLIES 54201 1,885 2,136 2,000 2,000 0 0.0%COMPUTER SUPPLIES 54204 0 0 250 250 0 0.0%FORMS PRINTING 54206 1,291 336 2,500 2,500 0 0.0%OFFICE EQUIPMENT 54207 1,398 1,520 200 200 0 0.0%GASOLINE - UNLEADED 54802 2,458 1,687 3,000 3,000 0 0.0%UNIFORMS 55805 1,350 1,350 1,350 1,350 0 0.0%SEALER'S SUPPLIES 55813 7,647 8,589 10,000 10,000 0 0.0%TOOLS AND EQUIPMENT 55814 13 462 300 300 0 0.0%ZONING EXPENSES 55825 1,112 1,906 2,000 2,000 0 0.0%PERMITS/LICENSES 56911 700 700 700 700 0 0.0%TRAVEL ALLOWANCE 57101 19,800 20,700 20,700 20,700 0 0.0%MILEAGE REIMBURSEMENT 57102 127 79 250 250 0 0.0%CONFERENCE FEES 57104 0 0 0 0 0 0.0%DUES AND MEMBERSHIPS 57301 567 460 725 725 0 0.0%SUBSCRIPTIONS 57302 316 45 1,000 1,000 0 0.0%_Total_Operating 43,510 44,323 52,275 58,175 5,900 11.3%

CAPITAL OUTLAY- ADD. EQUIP. 58501 0 0 5,000 22,400 17,400 348.0%_Total_Capital Outlay 0 0 5,000 22,400 17,400 348.0%

_Total_2410 CODE ADMINISTRATION DEPT. 342,048 360,900 385,962 423,341 37,379 9.7%

CODE ADMINISTRATION

FY17-18

30

PUBLIC WORKS DEPARTMENT

(Tax Supported)



• Maintain and provide a safe, clean environment to 24 occupied Town ownedbuildings and schools.

• Maintain and improve 150 acres of grounds and playing fields including trash removal,lawn mowing, technical turf care and pest control, fence maintenance, equipment andfacility maintenance, general landscaping, and playground safety.

• Maintain and repair over 240 pieces of equipment used in Public Works, Recreation, CodeAdministration, Human Resources, Planning, Senior Center, School Department, andPolice Department.

• Maintain 120 miles of roadway including sweeping, resurfacing, regulatory signage, snowand ice control, refuse collection, disposal and recycling.

• Provide engineering support and oversight to various utility projects, maintainGIS databases and mapping, provide technical review and assistance to variousTown departments and committees.

BUDGET COMMENTARY

The FY 2018 tax supported budget reflects a 0.80% increase due to contractual salary negotiations, reductions in the utilities and snow removal equipment budgets. An administrative position was increased 5 ½ hours.


• Maintain the quality of roads and fields• Provide long-term maintenance of Town and School Buildings• Ensure that Town projects, e.g. Police Dispatch projects, are completed on time and

under budget

FTE FTE FTEPublic Works (Tax Supported) FY16 FY17 FY18Engineering 4.00 4.00 4.00 Street 15.00 15.00 15.00 Equipment 5.00 6.00 6.00 Buildings 26.70 26.70 26.70 Grounds & Forestry 10.00 10.00 10.00 Public Works Administration 4.00 4.00 4.00

Public Works (Tax) Subtotal 64.70 65.70 65.70

31

2015 2016 2017 2018Account_and_Description Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT-FULL TIME 51110 3,242,270 3,293,693 3,510,786 3,562,318 51,532 1.5%S&W PERMANENT - PART TIME 51120 42,715 46,273 48,065 55,229 7,164 14.9%S&W - TEMPORARY POSITIONS 51210 109,853 116,695 141,005 168,469 27,464 19.5%OVERTIME 51310 302,974 300,124 332,056 332,590 534 0.2%OVERTIME - UNSCHEDULED 51320 15 0 0 0 0 0.0%OVERTIME - ICE AND SNOW 51340 434,881 141,796 180,925 229,218 48,293 26.7%FLSA OVERTIME PREMIUM 51350 3,717 3,450 4,550 3,950 -600 -13.2%NIGHT DIFFERENTIAL 51405 21,183 21,717 21,880 21,880 0 0.0%LONGEVITY 51415 27,404 24,965 27,675 28,100 425 1.5%OUT OF RANGE 51420 7,496 5,706 5,500 4,900 -600 -10.9%MEALS ALLOWANCE 51425 10,522 5,047 8,140 7,200 -940 -11.5%ON CALL - PUBLIC WORKS 51433 15,630 16,468 15,600 15,600 0 0.0%SICK LEAVE INCENTIVE 51907 6,308 7,060 12,600 12,600 0 0.0%WATER OPERATORS INCENTIVE 51908 0 2,400 0 1,000 1,000 100.0%TRAFFIC CONTROL 51930 62,563 34,279 54,000 54,000 0 0.0%_Total_Personal Services 4,287,531 4,019,673 4,362,782 4,497,054 134,272 3.1%

ELECTRICITY 52211 1,034,901 967,848 1,164,120 1,123,252 -40,868 -3.5%ELECTRICITY - STREET LIGHTS 52212 205,946 159,435 184,353 128,408 -55,945 -30.3%ELECTRICITY - TRAFFIC SIGNALS 52213 25,435 23,600 23,588 21,672 -1,916 -8.1%OIL - HEATING 52215 144,219 63,842 148,880 124,892 -23,988 -16.1%GAS - HEATING 52220 317,033 227,379 370,479 403,965 33,486 9.0%PROPANE 52225 5,325 3,928 6,000 6,000 0 0.0%EMERGENCY GENERATOR 52230 4,125 9,647 5,000 10,000 5,000 100.0%WATER 52301 89,650 110,618 116,604 131,983 15,379 13.2%OFFICE EQUIPMENT MAINTENANCE 52401 0 84 1,000 1,000 0 0.0%VEHICLE MAINTENANCE 52404 32,551 18,348 30,000 30,000 0 0.0%PLUMBING MAINT. - CONTRACTUAL 52408 24,819 26,482 30,000 30,000 0 0.0%HEATING MAINT. - CONTRACTUAL 52409 63,835 103,416 70,000 70,000 0 0.0%ELECTRICAL MAINT.-CONTRACTUAL 52410 3,111 44,275 15,000 15,000 0 0.0%GLASS - CONTRACTUAL 52411 0 0 4,500 0 -4,500 -100.0%ELEVATOR MAINTENANCE 52412 23,808 32,942 42,000 50,000 8,000 19.0%LANDFILL MAINTENANCE 52414 0 0 0 0 0 0.0%PAINTING - CONTRACTUAL 52415 880 0 12,000 12,000 0 0.0%SECURITY SYSTEM MAINTENANCE 52420 15,764 15,923 14,000 14,000 0 0.0%SOFTWARE MAINTENANCE 52421 3,000 6,842 10,000 10,000 0 0.0%H.V.A.C. MAINTENANCE 52422 348,990 227,133 238,680 270,340 31,660 13.3%CARPENTRY MAINT. - CONTRACTUAL 52427 3,610 2,400 25,000 20,000 -5,000 -20.0%EQUIPMENT RENTAL 52701 40,431 11,635 11,000 11,000 0 0.0%REFUSE COLLECTION 52901 597,708 615,715 615,715 634,261 18,546 3.0%REFUSE DISPOSAL 52902 454,899 439,239 485,729 485,095 -634 -0.1%SNOW REMOVAL EQUIPMENT 52903 901,106 218,740 442,800 357,195 -85,605 -19.3%CONTRACT CLEANING 52904 747,280 757,736 716,774 744,901 28,127 3.9%FERTILIZATION PROGRAM 52907 27,025 33,244 30,000 30,000 0 0.0%GASOLINE PUMP TESTING 52916 6,785 2,755 5,000 5,000 0 0.0%FENCES - CONTRACTUAL 52917 10,358 13,495 15,500 15,000 -500 -3.2%CONTRACT TRIMMING 52918 3,528 0 15,000 12,000 -3,000 -20.0%HAZARDOUS WASTE REMOVAL 52920 27,855 29,609 44,000 35,000 -9,000 -20.5%PAVEMENT STRIPING 52921 58,963 58,781 55,000 59,000 4,000 7.3%CONTRACT MOWING 52923 55,827 57,436 65,200 63,000 -2,200 -3.4%RECYCLING 52927 190,783 188,476 188,571 194,753 6,182 3.3%CONTRACT SWEEPING 52928 23,782 8,312 23,000 23,000 0 0.0%CONTRACT TREE REMOVAL 52929 8,900 9,092 20,000 20,000 0 0.0%YARD WASTE REMOVAL 52930 22,000 38,048 24,000 24,000 0 0.0%AERATION 52932 6,800 13,450 14,053 16,000 1,947 13.9%MEDICAL EXAMS (EMPLOYEE) 53003 615 1,148 1,085 1,085 0 0.0%LABRATORY TESTING 53005 203 0 2,000 2,000 0 0.0%CONSULTING SERVICES 53009 0 1,493 5,000 5,000 0 0.0%LANDFILL CONSULTANT 53012 26,000 33,287 45,000 60,000 15,000 33.3%ENGINEERING CONSULTANTS 53013 0 0 2,000 2,000 0 0.0%TRAINING SERVICES 53019 8,821 9,400 15,150 18,850 3,700 24.4%INSPECTIONAL SERVICES 53033 13,991 18,924 24,000 25,000 1,000 4.2%TELEPHONE 53401 25,835 21,561 25,550 26,250 700 2.7%PRINTING (NON-FORMS) 53405 450 0 2,000 2,000 0 0.0%FITNESS CLUB MEMBERSHIPS 53801 1,549 720 1,550 1,550 0 0.0%WEATHER SERVICES 53802 1,495 1,495 1,600 1,600 0 0.0%SAFETY SERVICES 53803 1,331 2,094 2,000 1,500 -500 -25.0%FEDERALLY REQUIRED TESTING 53804 1,457 2,859 2,000 3,450 1,450 72.5%VEHICLE INSPECTIONS 53814 4,960 6,025 7,500 7,500 0 0.0%

FY17-18

PUBLIC WORKS (TAX SUPPORTED)

32

2015 2016 2017 2018Account_and_Description Actual Actual Budget Proposed Bud Chg ($) Chg (%)

FY17-18

GENERAL OFFICE SUPPLIES 54201 10,489 7,438 9,150 9,650 500 5.5%PHOTOCOPY SUPPLIES 54202 0 0 300 300 0 0.0%GRAPHIC SUPPLIES 54203 0 0 100 100 0 0.0%COMPUTER SUPPLIES 54204 0 0 400 400 0 0.0%SOFTWARE 54205 1,995 7,988 15,055 21,085 6,030 40.1%FURNITURE & OFFICE EQUIP. 54207 58 4,947 6,100 6,000 -100 -1.6%COMPUTER HARDWARE, ETC 54208 3,212 5,405 7,000 8,000 1,000 14.3%LUMBER AND HARDWARE 54301 36,165 26,395 43,500 43,500 0 0.0%PLUMBING SUPPLIES 54302 1,256 2,152 5,500 5,500 0 0.0%ELECTRICAL SUPPLIES 54303 6,099 13,932 10,000 10,000 0 0.0%GLASS 54304 3,701 3,712 6,500 6,500 0 0.0%HEATING SUPPLIES 54305 798 1,275 4,000 4,000 0 0.0%LAMPS 54306 10,097 11,788 12,500 12,500 0 0.0%PAINT 54307 2,643 5,381 7,000 7,000 0 0.0%ROOF REPAIR 54308 9,336 4,359 24,000 24,000 0 0.0%TOOLS AND EQUIPMENT 54310 548 0 1,000 1,000 0 0.0%CUSTODIAL SUPPLIES 54501 113,825 126,558 114,000 114,000 0 0.0%PARK SUPPLIES 54601 8,150 22,584 25,000 25,000 0 0.0%SCHOOL GROUND SUPPLIES 54602 19,905 19,299 27,000 27,000 0 0.0%WEED MATERIAL 54603 453 0 1,000 1,000 0 0.0%BEACH SAND 54604 0 1,800 1,800 1,800 0 0.0%IRRIGATION SUPPLIES 54605 12,807 7,465 10,000 10,000 0 0.0%TREES AND SHRUBS 54607 368 360 2,000 2,000 0 0.0%CHEMICALS/INSECTICIDES 54608 2,245 0 500 500 0 0.0%PLANTING MATERIALS 54609 390 1,480 4,000 3,500 -500 -12.5%TOOLS AND EQUIPMENT 54610 6,878 9,598 11,500 13,500 2,000 17.4%ENDICOTT ESTATE 54611 21,333 24,683 28,044 31,214 3,170 11.3%NEW TREES 54614 4,699 7,739 11,000 11,000 0 0.0%ATHLETIC FIELDS SODDING 54615 0 20,535 25,000 25,000 0 0.0%PLAYGROUND EQUIPMENT REPAIRS 54616 1,479 3,957 8,000 8,000 0 0.0%GASOLINE - UNLEADED 54802 59,729 29,600 58,603 54,593 -4,010 -6.8%GASOLINE - DIESEL 54803 64,932 32,366 52,631 47,892 -4,739 -9.0%TIRES AND TUBES 54804 22,033 8,398 24,000 24,000 0 0.0%BATTERIES 54805 0 500 0 0 0 0.0%OTHER AUTO SUPPLIES 54806 93,070 75,282 106,700 106,700 0 0.0%OIL 54808 26,017 19,296 20,000 20,000 0 0.0%BODY REPAIRS 54812 6,486 24,037 10,000 10,000 0 0.0%PLOW REPAIRS 54813 32,133 32,665 35,000 35,000 0 0.0%MECHANICS TOOLS 54814 1,800 1,800 1,800 2,250 450 25.0%BITUMINOUS CONCRETE 55301 70,750 94,549 107,300 107,278 -22 0.0%DRAINAGE SUPPLIES 55302 13,055 17,791 25,000 25,000 0 0.0%TRAFFIC SUPPLIES 55303 15,267 25,676 35,000 35,000 0 0.0%GRAVEL 55305 4,980 9,807 10,000 10,000 0 0.0%WINTER CHEMICALS 55306 324,968 185,468 194,400 223,135 28,735 14.8%SAND 55307 0 962 4,000 4,000 0 0.0%SAFETY EQUIPMENT 55504 5,895 8,163 17,500 8,000 -9,500 -54.3%PROTECTIVE CLOTHING 55804 563 1,570 2,000 2,000 0 0.0%UNIFORMS 55805 45,493 43,820 49,450 49,050 -400 -0.8%TOOLS AND EQUIPMENT 55814 19,800 12,640 14,700 14,700 0 0.0%MISCELLANEOUS SUPPLIES 55820 0 0 400 400 0 0.0%BOOKS 55822 0 0 100 100 0 0.0%PERMITS/LICENSES 56911 7,274 6,127 5,200 10,000 4,800 92.3%MILEAGE REIMBURSEMENT 57102 2,665 3,668 4,300 4,600 300 7.0%CONFERENCE FEES 57104 666 1,389 2,000 2,000 0 0.0%PARKING, TOLLS, ETC. 57107 0 124 50 50 0 0.0%DUES AND MEMBERSHIPS 57301 2,045 3,100 4,683 4,605 -78 -1.7%SUBSCRIPTIONS 57302 45 125 85 177 92 108.2%SUPPORT SERVICES 57803 50,121 68,306 68,306 70,014 1,708 2.5%MISC OTHER CHARGES & EXPENSES 57807 537 710 1,500 1,500 0 0.0%LICENSES-CDL,HOISTING,ETC. 57817 741 725 2,310 3,510 1,200 51.9%OUT OF STATE TRAVEL EXPENSES 57901 1,233 3,489 2,678 2,500 -178 -6.6%_Total_Operating 6,768,966 5,691,894 6,699,626 6,670,605 -29,021 -0.4%

58701 CAPITAL OUTLAY - REPLACE. EQ. 58701 245,037 199,889 450,000 437,500 -12,500 -2.8%_Total_Capital Outlay 245,037 199,889 450,000 437,500 -12,500 -2.8%

_Total_PUBLIC WORKS (TAX SUPPORTED) 11,301,534 9,911,456 11,512,408 11,605,159 92,751 0.8%

33

DEPARTMENT OF PUBLIC WORKS

WATER AND SEWER DIVISIONS

DIVISION PERSONNEL

DIVISION DESCRIPTION

• Maintain approximately 124 miles of gravity sewer, 15 pump stations, and 7,800 sewerconnections.

• Maintain 135 miles of water distribution main, 1,500 hydrants, and 5 booster stations.• Convey our product to 10,966 meters in the distribution system.• Treat and distribute quality drinking water to our customers

BUDGET COMMENTARY

The FY2018 Water and Sewer Division budgets increased by $99,966 from FY2017, due primarily to an expected increase in the South Essex sewerage assessment of $95,696 and the addition of Stormwater Services in the amount of $40,000.


• Continue to execute the valve exercising and replacement program• Maintaining stable water and sewer rates• Continuing to :

o Replace water mainso Reduce inflow and infiltrationo Extend and line sewer mains

FTE FTE FTEPublic Works (Rate Supported) FY16 FY17 FY18

Sewer 4.00 4.00 4.00

Water Distribution 13.00 13.00 13.00 Water Treatment 8.00 8.00 8.00

Public Works (Rate) Subtotal 25.00 25.00 25.00

34

2015 2016 2017 2018Account_and_Description Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT-FULL TIME 51110 154,282 103,374 225,490 218,834 -6,656 -3.0%OVERTIME 51310 47,253 36,975 57,699 44,558 -13,141 -22.8%FLSA OVERTIME PREMIUM 51350 149 196 400 200 -200 -50.0%LONGEVITY 51415 1,675 425 1,550 975 -575 -37.1%OUT OF RANGE 51420 170 502 600 1,200 600 100.0%MEALS ALLOWANCE 51425 674 78 150 250 100 66.7%SICK LEAVE INCENTIVE 51907 0 0 1,469 1,470 1 0.1%WATER OPERATORS INCENTIVE 51908 1,850 1,850 2,950 3,700 750 25.4%TRAFFIC CONTROL 51930 2,015 1,777 2,001 3,000 999 49.9%_Total_SALARIES & WAGES 208,068 145,177 292,309 274,187 -18,122 -6.2%

ELECTRICITY 52211 31,416 26,212 39,600 35,000 -4,600 -11.6%GAS - HEATING 52220 1,500 1,500 1,595 1,595 0 0.0%WATER 52301 0 0 500 0 -500 -100.0%VEHICLE MAINTENANCE 52404 6,659 19,070 15,000 17,000 2,000 13.3%ELECTRICAL MAINT.-CONTRACTUAL 52410 0 0 10,000 10,000 0 0.0%PUMP MAINTENANCE 52418 23,275 46,319 30,000 30,000 0 0.0%SOFTWARE MAINTENANCE 52421 1,100 57,827 24,000 25,000 1,000 4.2%H.V.A.C. MAINTENANCE 52422 0 0 8,840 9,017 177 2.0%TELEMETRY 52423 10,100 11,386 15,000 15,000 0 0.0%EQUIPMENT RENTAL 52701 3,524 11,824 12,000 12,000 0 0.0%CONTRACT CLEANING 52904 0 0 26,547 27,144 597 2.2%EASEMENT MAINTENANCE 52905 2,615 2,275 8,200 8,200 0 0.0%STORMWATER SERVICES 52926 0 0 0 40,000 40,000 100.0%CATCH BASIN CLEANING 52931 29,856 29,856 30,000 30,000 0 0.0%MEDICAL EXPENSES 53002 0 0 400 0 -400 -100.0%CONSULTING SERVICES 53009 0 0 0 0 0 0.0%AUDITING SERVICES 53010 3,240 3,600 3,400 3,600 200 5.9%LEGAL SERVICES 53011 8,799 11,937 9,851 9,851 0 0.0%ENGINEERING CONSULTANTS 53013 60,000 1,250 67,300 65,000 -2,300 -3.4%TRAINING SERVICES 53019 2,698 2,779 3,810 6,250 2,440 64.0%PRINTING (NON-FORMS) 53405 0 0 0 0 0 0.0%FITNESS CLUB MEMBERSHIPS 53801 0 0 250 250 0 0.0%FEDERALLY REQUIRED TESTING 53804 300 345 250 250 0 0.0%GENERAL OFFICE SUPPLIES 54201 14,440 0 1,000 1,000 0 0.0%SOFTWARE 54205 10,164 30,705 10,000 10,000 0 0.0%COMPUTER HARDWARE, ETC 54208 442 0 2,500 2,500 0 0.0%PUMP REPAIR 54309 1,652 0 3,000 3,000 0 0.0%MISC. GROUNDS MAINTENANCE 54613 3,769 127 3,000 6,000 3,000 100.0%GASOLINE - UNLEADED 54802 6,194 4,381 6,498 6,498 0 0.0%GASOLINE - DIESEL 54803 5,274 1,304 3,609 2,947 -662 -18.3%CHEMICALS - OTHER 55313 0 0 1,000 1,000 0 0.0%SEWER LATERAL MATERIALS 55316 4,365 12,422 9,000 9,000 0 0.0%SAFETY EQUIPMENT 55504 1,935 1,311 4,000 3,000 -1,000 -25.0%UNIFORMS 55805 1,650 1,650 2,650 1,650 -1,000 -37.7%TOOLS AND EQUIPMENT 55814 3,735 2,593 2,500 2,500 0 0.0%MISCELLANEOUS SUPPLIES 55820 292 106 500 500 0 0.0%SOUTH ESSEX SEWERAGE DISTRICT 56902 4,706,386 4,162,609 3,827,826 3,897,652 69,826 1.8%PERMITS/LICENSES 56911 600 1,004 1,000 1,000 0 0.0%DUES AND MEMBERSHIPS 57301 449 224 731 865 134 18.3%HEALTH & DENTAL COSTS 57505 43,661 33,690 69,937 70,077 140 0.2%LIFE INSURANCE 57509 70 93 140 140 0 0.0%MEDICARE/FICA INSURANCE 57511 3,428 2,517 2,391 2,391 0 0.0%PENSION REIMBURSEMENTS 57802 21,592 21,830 23,533 23,533 0 0.0%SUPPORT SERVICES 57803 244,215 182,280 182,280 187,385 5,105 2.8%PAYMENTS IN LIEU OF TAXES 57804 112,000 112,000 112,000 112,000 0 0.0%MISC OTHER CHARGES & EXPENSES 57807 1,875 1,800 0 0 0 0.0%OUT OF STATE TRAVEL EXPENSES 57901 1,224 2,327 4,605 0 -4,605 -100.0%_Total_OPERATING EXPENSES 5,374,494 4,801,153 4,580,243 4,689,795 109,552 2.4%

TRANSFER TO ENTERPRISE FUNDS 59651 150,000 150,000 150,000 150,000 0 0.0%TRANSFER TO UNEMPLOYMENT FUND 59661 200 200 200 200 0 0.0%TRANSFER TO OPEB STABILIZATION 59668 23,949 23,949 23,949 23,949 0 0.0%_Total_INTERFUND TRANSFERS 174,149 174,149 174,149 174,149 0 0.0%

SEWER ENTERPRISE FUND (250)

FY17-18

35


FY17-18

ANDOVER ST SEWER 11/03 5,000 5,000 5,000 5,000 0 0.0%SEWER BOND 3/05 85,000 85,000 85,000 80,000 -5,000 -5.9%SEWER DRAINAGE 7/1/06 17,500 5,000 5,000 0 -5,000 -100.0%WASTEWATER 7/1/06 5,000 17,500 17,500 19,000 1,500 8.6%SEWER BONDS 7/15/97 28,800 23,500 20,000 0 -20,000 -100.0%DRAINAGE 20,000 20,000 20,000 20,000 0 0.0%SEWER BONDS 7/15/99 63,600 62,000 65,000 60,000 -5,000 -7.7%INT-DANVERSPORT PARK 12/14/00 0 0 0 0 0 0.0%SEWER DRAINAGE 7/08 35,000 35,000 35,000 35,000 0 0.0%WASTEWATER FAC. 07/08 10,000 10,000 10,000 10,000 0 0.0%SEWER 4/09 (rfdg) 20,000 20,000 20,000 0 -20,000 -100.0%SEWER DRAINAGE 07/10 180,000 180,000 170,000 170,000 0 0.0%SEWER DRAINAGE 07/11 25,000 25,000 25,000 25,000 0 0.0%INT-ANDOVER ST SEWER 11/03 950 850 750 650 -100 -13.3%INT - SEWER BONDS 3/05 18,700 14,750 13,050 11,400 -1,650 -12.6%INT SEWER DRAINAGE 7/1/06 5,278 5,140 129 0 -129 -100.0%INT - WASTEWATER 7/1/06 584 366 4,182 3,544 -638 -15.3%INT - SEWER BONDS 7/15/97 2,258 1,238 390 0 -390 -100.0%INT - SEWER BONDS 2,000 1,600 1,200 800 -400 -33.3%INT - SEWER BONDS 7/15/99 13,164 10,715 8,239 5,802 -2,437 -29.6%INT - SEWER BONDS 12/14/00 0 255 255 0 -255 -100.0%INT - SEWER BONDS 12/1/01 0 0 366 0 -366 -100.0%INT - SEWER DRAINAGE 7/08 17,419 15,888 14,357 11,580 -2,777 -19.3%INT-WASTEWATER FAC 7/08 5,125 4,433 4,250 3,440 -810 -19.1%INT - SEWER 4/09 (rfdg) 765 255 0 0 0 0.0%INT - SEWER DRAINAGE 7/10 31,875 28,163 24,125 17,750 -6,375 -26.4%INT - SEWER DRAINAGE 07/11 13,894 13,331 12,769 12,113 -656 -5.1%59301 INTEREST ON TEMPORARY LOANS 0 0 0 14,959 14,959 100.0%_Total_DEBT 606,912 584,984 561,562 506,038 -55,524 -9.9%

CAPITAL OUTLAY- ADD. EQUIP. 58501 9,334 0 0 0 0 0.0%CAPITAL OUTLAY - REPLACE. EQ. 58701 29,984 10,998 63,000 135,500 72,500 115.1%_Total_CAPITAL OUTLAY 39,318 10,998 63,000 135,500 72,500 115.1%

_Total_250 SEWER SPECIAL REVENUE FUND 6,402,941 5,716,461 5,671,263 5,779,669 108,406 1.9%

36

2015 2016 2017 2018Account_and_Description Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT-FULL TIME 51110 1,049,931 1,245,286 1,456,546 1,505,844 49,298 3.4%S&W - TEMPORARY POSITIONS 51210 31,472 26,308 46,480 46,400 -80 -0.2%OVERTIME 51310 278,198 232,662 235,974 266,338 30,364 12.9%FLSA OVERTIME PREMIUM 51350 2,934 3,194 4,500 4,000 -500 -11.1%NIGHT DIFFERENTIAL 51405 11,073 12,485 12,000 12,000 0 0.0%LONGEVITY 51415 9,100 10,150 11,200 10,450 -750 -6.7%OUT OF RANGE 51420 2,984 3,228 2,470 3,470 1,000 40.5%MEALS ALLOWANCE 51425 5,898 3,805 4,000 4,100 100 2.5%ON CALL - WATER DIVISION 51431 15,178 15,347 15,500 15,500 0 0.0%SICK LEAVE INCENTIVE 51907 1,250 1,475 8,920 8,920 0 0.0%WATER OPERATORS INCENTIVE 51908 14,350 18,975 26,550 27,725 1,175 4.4%TRAFFIC CONTROL 51930 16,681 21,841 16,010 16,010 0 0.0%_Total_SALARIES & WAGES 1,439,049 1,594,756 1,840,150 1,920,757 80,607 4.4%

ELECTRICITY 52211 400,903 368,683 428,850 428,270 -580 -0.1%GAS - HEATING 52220 41,002 28,973 36,635 38,745 2,110 5.8%PROPANE 52225 15,303 6,432 14,000 14,000 0 0.0%WATER 52301 0 0 400 0 -400 -100.0%VEHICLE MAINTENANCE 52404 23,087 26,508 50,000 50,000 0 0.0%WELL MAINTENANCE CONTRACT 52417 0 17,400 20,000 20,000 0 0.0%PUMP MAINTENANCE 52418 14,611 24,541 40,000 40,000 0 0.0%SECURITY SYSTEM MAINTENANCE 52420 150 150 2,000 2,000 0 0.0%SOFTWARE MAINTENANCE 52421 20,607 78,396 43,000 45,000 2,000 4.7%H.V.A.C. MAINTENANCE 52422 0 0 8,840 9,017 177 2.0%OTHER CONTRACT MAINTENANCE 52424 13,306 30,447 30,000 30,000 0 0.0%EQUIPMENT RENTAL 52701 -682 627 15,000 15,000 0 0.0%BUILDING RENTAL 52705 1,800 1,800 1,800 1,800 0 0.0%SLUDGE REMOVAL 52706 58,725 59,520 60,000 60,000 0 0.0%CONTRACT CLEANING 52904 0 0 26,547 27,144 597 2.2%EASEMENT MAINTENANCE 52905 2,200 2,475 5,000 5,000 0 0.0%WATER MAIN REPAIR CONTRACT 52909 16,185 42,210 40,000 40,000 0 0.0%METER TESTING CONTRACT 52910 5,596 4,891 8,000 8,000 0 0.0%LEAKAGE SURVEY 52911 15,690 17,010 16,000 0 -16,000 -100.0%WATERSHED CONTRACTAUL SERVICES 52912 4,300 4,900 5,000 5,000 0 0.0%HAZARDOUS WASTE REMOVAL 52920 0 0 2,500 0 -2,500 -100.0%WATER CONSERVATION PROGRAM 52933 115 522 20,110 0 -20,110 -100.0%CROSS CONNECT SURVEY & TESTING 52934 32,544 35,850 40,000 40,000 0 0.0%CONSULTING SERVICES 53009 85,950 99,525 88,000 88,000 0 0.0%AUDITING SERVICES 53010 3,240 3,600 3,600 3,600 0 0.0%LEGAL SERVICES 53011 8,799 13,629 31,713 31,713 0 0.0%BANKING SERVICES 53016 20,337 25,210 23,500 33,000 9,500 40.4%TRAINING SERVICES 53019 10,981 12,220 13,985 21,325 7,340 52.5%TELEPHONE 53401 24,617 22,857 20,900 23,000 2,100 10.0%POSTAGE 53402 23,967 24,376 25,000 25,000 0 0.0%PRINTING (NON-FORMS) 53405 0 1,050 0 0 0 0.0%FITNESS CLUB MEMBERSHIPS 53801 1,125 1,125 300 1,125 825 275.0%FEDERALLY REQUIRED TESTING 53804 20,234 28,578 29,712 31,112 1,400 4.7%GENERAL OFFICE SUPPLIES 54201 2,614 4,575 4,500 5,000 500 11.1%SOFTWARE 54205 29,073 34,976 50,000 25,000 -25,000 -50.0%FORMS PRINTING 54206 10,816 8,784 12,000 11,000 -1,000 -8.3%COMPUTER HARDWARE, ETC 54208 528 0 4,000 4,000 0 0.0%MISC. GROUNDS MAINTENANCE 54613 38,853 15,627 32,000 32,000 0 0.0%GASOLINE - UNLEADED 54802 19,287 28,391 17,328 17,775 447 2.6%GASOLINE - DIESEL 54803 19,735 13,191 19,045 18,192 -853 -4.5%BITUMINOUS CONCRETE 55301 31,198 32,919 50,000 40,000 -10,000 -20.0%GRAVEL 55305 12,998 19,027 10,000 30,000 20,000 200.0%DIST. PIPE AND FITTINGS 55308 62,883 77,841 60,000 80,000 20,000 33.3%LAB EQUIPMENT & SUPPLIES 55309 38,585 23,499 28,000 28,000 0 0.0%METERS 55310 17,352 27,875 24,500 25,000 500 2.0%CHEMICALS - TREATMENT 55312 237,304 157,473 250,000 200,000 -50,000 -20.0%CHEMICALS - OTHER 55313 232 0 500 500 0 0.0%GRANULAR ACTIVATED CARBON 55315 149,500 454,619 310,000 310,000 0 0.0%SAFETY EQUIPMENT 55504 2,238 2,322 4,500 5,000 500 11.1%UNIFORMS 55805 14,125 14,756 17,025 17,025 0 0.0%TOOLS AND EQUIPMENT 55814 49,479 48,709 49,200 49,200 0 0.0%MISCELLANEOUS SUPPLIES 55820 2,890 6,497 3,000 5,000 2,000 66.7%MIDDLETON REFUND 56901 300,000 300,000 300,000 300,000 0 0.0%

WATER ENTERPRISE FUND (260)

FY17-18

37


FY17-18

TAXES - REAL ESTATE 56906 104,513 100,310 110,000 110,000 0 0.0%PERMITS/LICENSES 56911 2,434 2,769 3,500 3,750 250 7.1%DEP SDWA ASSESSMENT 56913 9,721 23,042 10,000 10,100 100 1.0%57101 TRAVEL ALLOWANCE 2,750 3,300 2,700 3,300 600 22.2%MILEAGE REIMBURSEMENT 57102 891 608 2,200 900 -1,300 -59.1%CONFERENCE FEES 57104 0 107 500 0 -500 -100.0%DUES AND MEMBERSHIPS 57301 753 3,111 3,202 2,775 -427 -13.3%SUBSCRIPTIONS 57302 96 96 100 100 0 0.0%CASUALTY/LIABILITY INSURANCE 57401 96,600 94,567 97,000 100,395 3,395 3.5%HEALTH & DENTAL COSTS 57505 173,042 192,608 193,452 194,008 556 0.3%LIFE INSURANCE 57509 567 557 556 556 0 0.0%MEDICARE/FICA INSURANCE 57511 13,052 13,841 13,241 13,241 0 0.0%PENSION REIMBURSEMENTS 57802 173,797 209,157 225,559 225,559 0 0.0%SUPPORT SERVICES 57803 492,044 474,919 492,044 505,821 13,777 2.8%PAYMENTS IN LIEU OF TAXES 57804 120,000 120,000 120,000 133,000 13,000 10.8%MISC OTHER CHARGES & EXPENSES 57807 100 100 0 100 100 100.0%LICENSES-CDL,HOISTING,ETC. 57817 477 980 600 600 0 0.0%OUT OF STATE TRAVEL EXPENSES 57901 2,322 2,457 3,782 2,700 -1,082 -28.6%_Total_OPERATING EXPENSES 3,097,541 3,497,115 3,674,426 3,646,448 -27,978 -0.8%

TRANSFER TO ENTERPRISE FUNDS 59651 100,000 100,000 100,000 100,000 0 0.0%TRANSFER TO UNEMPLOYMENT FUND 59661 25,000 25,000 25,000 25,000 0 0.0%TRANSFER TO WORKERS COMP FUND 59665 67,000 67,000 67,000 67,000 0 0.0%TRANSFER TO OPEB STABILIZATION 59668 110,846 110,846 110,846 110,846 0 0.0%_Total_INTERFUND TRANSFERS 302,846 302,846 302,846 302,846 0 0.0%

GREENSAND FILTRATION 11/03 130,000 130,000 125,000 125,000 0 0.0%WATER BONDS 3/15/05 75,000 75,000 70,000 70,000 0 0.0%WATER 7/1/06 27,500 27,500 27,500 27,500 0 0.0%WATER MAINS 07/08 40,000 40,000 40,000 35,000 -5,000 -12.5%MWPAT 876,665 894,957 918,648 937,744 19,096 2.1%WATER TREATMENT PLANT 7/10 85,000 85,000 85,000 85,000 0 0.0%WATER TREATMENT PLANT 07/11 40,000 40,000 40,000 35,000 -5,000 -12.5%STATE HOSP RESERVOIR 07/11 35,000 35,000 35,000 35,000 0 0.0%FOLLY HILL RESERVOIR 07/11 60,000 60,000 60,000 60,000 0 0.0%WATER TREATMENT PLANT 07/11 55,000 55,000 55,000 55,000 0 0.0%WATER MAINS 7/15/96 10,000 0 0 0 0 0.0%WATER BONDS 7/15/97 5,000 5,030 5,030 0 -5,030 -100.0%WATER BONDS 7/15/99 123,100 120,900 115,000 115,000 0 0.0%INT-GREENSAND FILTRATION 11/03 22,700 20,100 17,550 15,050 -2,500 -14.2%INT - WATER BONDS 3/15/05 16,200 12,750 11,300 9,900 -1,400 -12.4%INT - WATER BONDS 7/1/06 8,532 8,324 6,812 5,797 -1,015 -14.9%INT - WATER MAINS 7/08 19,288 17,538 15,788 12,700 -3,088 -19.6%INT - MWPAT 416,605 397,022 376,637 355,457 -21,180 -5.6%INT-WATER TREATMENT PLANT 7/10 49,550 47,797 45,832 42,644 -3,188 -7.0%INT-WATER TRTMNT PLANT 07/11 22,994 21,794 20,594 19,294 -1,300 -6.3%INT-STATE HOSP RES. 07/11 7,000 5,950 4,900 3,675 -1,225 -25.0%INT-FOLLY HILL RESER. 07/11 12,000 10,200 8,400 6,300 -2,100 -25.0%INT-WATER TRTMNT PLANT 07/11 35,544 33,894 32,244 30,319 -1,925 -6.0%INT-WATER MAINS 7/17/96 188 0 0 0 0 0.0%INT-WATER BONDS 7/15/97 294 98 99 0 -99 -100.0%INT - WATER BONDS 7/15/99 24,714 19,956 15,357 10,872 -4,485 -29.2%_Total_DEBT 2,197,874 2,163,810 2,131,691 2,092,252 -39,439 -1.9%

CAPITAL OUTLAY- ADD. EQUIP. 58501 9,334 0 0 0 0 0.0%CAPITAL OUTLAY - REPLACE. EQ. 58701 193,985 32,813 160,000 112,500 -47,500 -29.7%_Total_CAPITAL OUTLAY 203,319 32,813 160,000 112,500 -47,500 -29.7%

_Total_260 WATER SPECIAL REVENUE FUND 7,240,629 7,591,340 8,109,113 8,074,803 -34,310 -0.4%

38

DEPARTMENT OF PUBLIC WORKS

Electric & Business Divisions

DIVISION PERSONNEL


• Electric Division maintains 141 miles of overhead lines and 37 miles of underground lineswithin a 13.6 mile service area.

• Maintains 9 substations & 1 switching station.• Maintains approximately 13,000 meters.• Purchases and distributes power and maintains power supply portfolio.• Business Division responsible for electric, water, and sewer billing process, maintaining

Electric Division accounting and financial systems, and maintenance of AMI systems.

BUDGET COMMENTARY

The average rate per kWh for Danvers ratepayers declined just under 2.0% in 2016 and is expected to decline an additional 3.5% in 2017.

Revenues from retail rates declined almost 4% in 2016 and are anticipated to decrease an additional 2.5% in 2017.

GOALS AND HIGHLIGHTS FOR CALENDAR YEAR 2018

• Review power supply contracts to ensure long-term supply from various sources• Stabilize electric rates• Continue aggressive capital improvement plan• Facilitate the 6th feeder project• Continuation and expansion of the Peak Savings Program• LED streetlight conversion program, with help from the Massachusetts Department of

Energy Resources grant.

FTE FTE FTEElectric/Business Divisions FY16 FY17 FY18

Electric Division 31.00 32.25 32.25 Business Division 17.50 17.50 17.50 Electric & Business Divisions Subtotal 48.50 49.75 49.75

39

TOWN OF DANVERSELECTRIC DIVISIONPROFIT AND LOSS STATEMENT

FERC CY14 CY15 CY16 CY16 CY17NUMBER ACTUAL ACTUAL BUDGET YTD (Nov) REQUEST

SALES (KWH) ENERGY SALES 308,876,009 308,300,286 318,140,833 277,964,734 305,832,352 STREET LIGHT SALES 1,132,727 1,130,316 1,077,510 995,357 917,193TOTAL 310,008,736 309,430,602 319,218,343 278,960,091 306,749,545

REVENUES

SMALL GENERAL SERVICE 440 3,878,180 3,957,185 3,891,716 3,368,666 3,795,975MEDIUM GENERAL SERVICE 440 18,247,991 17,936,237 18,014,251 15,605,309 17,184,305LARGE GENERAL SERVICE 440 6,212,804 6,586,963 6,379,485 5,212,033 5,577,369DOMESTIC SALES 440 14,612,609 15,194,676 15,363,027 12,692,274 14,266,301MUNICIPAL SALES 444 1,386,735 1,402,553 1,383,929 1,174,129 1,323,345SENTINEL LIGHTS FLAT 415 166,258 161,303 167,833 160,829 175,456

REVENUE SUBTOTAL 44,504,577 45,238,917 45,200,241 38,213,240 42,322,752

JOBBING & CONTRACT WORK 415 420,904 620,179 65,000 897,078 120,000FLOODLIGHTS SPORTS FIELDS 415 2,004 2,004 2,004 1,837 2,004COLLECTION CHARGES 415 6,650 13,050 12,000 11,925 10,525NSF CHARGES 415 1,248 1,333 0 1,460 1,225OTHER INCOME 418 10,084 6,011 8,000 0 8,000INTEREST INCOME 419 39,308 43,582 40,000 93,543 65,940MISC NON-OPERATING INCOME 421 680,910 619,487 1,052,274 520,983 3,374,433UNUSED CUSTOMER DISCOUNTS 450 (1,176,191) (1,157,522) (1,250,363) (1,060,831) (1,142,318)MISC SERVICE REVENUES 451 289,723 289,683 287,340 261,434 284,300RENT 454 1,800 1,800 1,800 1,650 1,800OTHER ELECTRIC REVENUES 456 5,698,020 1,102,576 0 187,302 0

TOTAL OTHER INCOME 5,974,459 1,542,182 218,055 916,382 2,725,909

TOTAL REVENUE 50,479,036 46,781,099 45,418,296 39,129,622 45,048,662

EXPENSES

DEPRECIATION EXP 403 3,634,842 3,038,322 2,354,225 2,162,085 2,429,288TAXES 408 46,773 20,215 45,000 28,854 29,000PURCHASED POWER 555 26,136,706 26,628,846 24,716,447 20,135,895 21,496,161SYSTEM CONTROL - LOAD DISPATCH 556 316,872 104,458 (34,294) 193,608 226,710OTHER PURCHASED POWER 557 140,668 98,989 100,878 88,500 100,898TRANSMISSION - BY OTHERS 565 5,314,081 4,696,847 6,703,791 4,071,088 6,953,739OPERATION - SUPERVISION OF DISTRIBUTION 580 1,340,203 1,448,912 1,460,700 1,322,454 1,475,570OPERATION - LABOR EXPENSE 581 63,465 129,701 64,734 60,206 65,680OPERATION - SUPPLIES AND EXPENSES 582 445,542 493,251 452,093 485,186 540,084OPERATION - OVERHEAD LINE EXPENSES 583 295,731 407,379 382,779 225,437 251,304OPERATION - UNDERGROUND LINE EXPENSES 584 74,276 64,766 61,203 38,058 42,494OPERATION - STREET LIGHTING AND SIGNAL 585 93,698 81,910 61,000 36,482 40,255OPERATION - METER EXPENSES 586 2,775 15,497 3,000 6,960 7,593

PROPOSED CALENDAR YEAR 2017 BUDGET

40

TOWN OF DANVERSELECTRIC DIVISIONPROFIT AND LOSS STATEMENT

FERC CY14 CY15 CY16 CY16 CY17NUMBER ACTUAL ACTUAL BUDGET YTD (Nov) REQUEST

PROPOSED CALENDAR YEAR 2017 BUDGET

OPERATION - CUST INSTALLATION EXPENSES 587 164,678 197,400 160,000 177,023 197,783OPERATION - MISC DISTRIBUTION EXPENSES 588 50,930 39,202 55,000 33,105 37,017OPERATION - RENTS (DISTRIBUTION) 589 0 0 0 36 39MAINT - SUPERVISION & ENGINEERING 590 84,759 105,840 68,360 86,483 96,367MAINTENANCE OF STRUCTURES 591 0 3,387 3,455 0 0MAINTENANCE OF STATION EQUIPMENT 592 103,186 99,052 92,934 131,823 210,679MAINTENANCE OF OVERHEAD LINES 593 529,962 647,990 500,000 295,069 453,071MAINTENANCE OF UNDERGROUND LINES 594 4,089 8,534 8,458 6,463 7,057MAINTENANCE OF LINE TRANSFORMERS 595 6,485 1,163 1,186 1,753 4,000MAINTENANCE OF STREET LIGHTING 596 12,788 0 22,256 2,522 2,790MAINTENANCE OF METERS 597 1,870 7,745 2,500 3,738 4,077MAINTENANCE OF MISC DISTRIBUTION PLANT 598 0 0 0 0 0CUST ACCTS - SUPERVISION 901 0 0 0 45 0METER MONITORING LABOR & EXPENSES 902 138,337 158,674 218,467 170,874 214,180BILLING & COLLECTIONS EXPENSES 903 699,174 754,070 704,500 725,622 883,078UNCOLLECTIBLE ACCOUNTS 904 104,396 (21,227) 60,000 0 50,000CUSTOMER - EFFICIENCY INCENTIVES 908 0 50,000 300,000 300,000 50,000ENERGY/RCS CONSERVATION 909 110,870 139,888 295,000 194,792 366,601ADMIN & GENERAL SALARIES 920 686,800 775,583 945,711 842,186 890,018OFFICE SUPPLIES & EXPENSES 921 373,357 519,520 460,316 408,637 479,964OUTSIDE SERVICES 923 261,112 249,468 503,852 166,787 479,945PROPERTY INSURANCE 924 238,931 208,250 204,795 18,297 200,000EMPLOYEE PENSIONS & BENEFITS 926 7,305,445 1,716,219 2,131,044 1,350,324 2,382,225MISC GENERAL EXPENSES 930 116,349 140,511 165,845 115,415 147,572RENTAL EXPENSE - ADMIN & GENERAL 931 3,895 0 0 0 0TRANSPORTATION 933 79,707 68,621 60,051 37,130 65,915MAINTENANCE OF GENERAL PLANT 935 177,323 382,612 249,565 178,331 181,700PAYROLL LABOR DISTRIBUTION 997 247 0 0 420 0PAYROLL CLEARING 998 0 0 0 (2,199) 0STORES EXPENSE 163 201,181 22,616 207,122 262,528 211,000INTEREST ON BOND & NOTES 427 306,317 291,120 275,000 123,470 219,431AMORTIZATION OF DEBT DISCOUNT 428 (22,340) 0 0 (1,414) 0OTHER INTEREST EXPENSE 431 1,524 (4,199) 0 1,971 1,800

TOTAL EXPENSES 49,647,002 43,791,133 44,066,974 34,486,043 41,495,085

TOTAL REVENUE 50,479,036 46,781,099 45,418,296 39,129,622 45,048,662 TOTAL EXPENSES 49,647,002 43,791,133 44,066,974 34,486,043 41,495,085

PROFIT/(LOSS) 832,034 2,989,966 1,351,322 4,643,579 3,553,576

PILOT (809,135) (800,616) (798,046) (798,046) (766,874)

ADJUSTED NET INCOME 22,899 2,189,350 553,276 3,845,533 2,786,703

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TOWN OF DANVERSELECTRIC DIVISIONCALENDAR YEAR 2017 BUDGET

SUMMARY OF OPERATING EXPENSES AND CAPITAL IMPROVEMENTS

FERC CY14 CY15 CY16 CY16 CY17 NUMBER ACTUAL ACTUAL BUDGET YTD (Nov) REQUEST

OPERATING EXPENSES

DEPRECIATION EXP 3-5% 403 3,634,842 3,038,322 2,354,225 2,162,085 2,429,288PROPERTY TAXES 408 46,773 20,215 45,000 28,854 29,000POWER SUPPLY 555-557 26,594,245 26,832,293 24,783,031 20,418,003 21,823,769 PURCHASED POWER 555 26,136,706 26,628,846 24,716,447 20,135,895 21,496,161 SYSTEM CONTROL - LOAD DISPATCH 556 316,872 104,458 (34,294) 193,608 226,710 OTHER PURCHASED POWER 557 140,668 98,989 100,878 88,500 100,898TRANSMISSION - BY OTHERS 565 5,314,081 4,696,847 6,703,791 4,071,088 6,953,739DISTRIBUTION OPERATIONS 580-589 2,531,298 2,878,018 2,700,509 2,384,949 2,657,819 OPERATION - SUPERVISION OF DISTRIBUTION 580 1,340,203 1,448,912 1,460,700 1,322,454 1,475,570 OPERATION - LABOR EXPENSE 581 63,465 129,701 64,734 60,206 65,680 OPERATION - SUPPLIES AND EXPENSES 582 445,542 493,251 452,093 485,186 540,084 OPERATION - OVERHEAD LINE EXPENSES 583 295,731 407,379 382,779 225,437 251,304 OPERATION - UNDERGROUND LINE EXPENSES 584 74,276 64,766 61,203 38,058 42,494 OPERATION - STREET LIGHTING AND SIGNAL 585 93,698 81,910 61,000 36,482 40,255 STREET LIGHTS 585.1 45,036 44,364 48,000 22,141 24,610 TRAFFIC SIGNALS 585.2 48,662 37,546 13,000 14,341 15,645 OPERATION - METER EXPENSES 586 2,775 15,497 3,000 6,960 7,593 OPERATION - CUST INSTALLATION EXPENSES 587 164,678 197,400 160,000 177,023 197,783 OPERATION - MISC DISTRIBUTION EXPENSES 588 50,930 39,202 55,000 33,105 37,017 OPERATION - RENTS (DISTRIBUTION) 589 0 0 0 36 39DISTRIBUTION MAINTENANCE 590-598 743,138 873,711 699,149 527,850 778,042 MAINT - SUPERVISION & ENGINEERING 590 84,759 105,840 68,360 86,483 96,367 MAINTENANCE OF STRUCTURES 591 0 3,387 3,455 0 0 MAINTENANCE OF STATION EQUIPMENT 592 103,186 99,052 92,934 131,823 210,679 MAINTENANCE OF OVERHEAD LINES 593 529,962 647,990 500,000 295,069 453,071 MAINTENANCE OF UNDERGROUND LINES 594 4,089 8,534 8,458 6,463 7,057 MAINTENANCE OF LINE TRANSFORMERS 595 6,485 1,163 1,186 1,753 4,000 MAINTENANCE OF STREET LIGHTING 596 12,788 0 22,256 2,522 2,790 STREET LIGHTING 596 772 0 0 2,066 2,293 TRAFFIC SIGNALS 596 12,016 0 22,256 456 497 MAINTENANCE OF METERS 597 1,870 7,745 2,500 3,738 4,077 MAINTENANCE OF MISC DISTRIBUTION PLANT 598 0 0 0 0 0CUSTOMER ACCOUNTS 901-909 1,052,778 1,081,405 1,577,967 1,391,333 1,563,859 CUST ACCTS - SUPERVISION 901 0 0 0 45 0 METER MONITORING LABOR & EXPENSES 902 138,337 158,674 218,467 170,874 214,180 BILLING & COLLECTIONS EXPENSES 903 699,174 754,070 704,500 725,622 883,078 MISCELLANEOUS COLLECTIONS EXPENSE 903 4,547 0 0 0 0 CLERICAL EXPENSE 903 520,370 551,544 534,500 546,387 686,778 DATA PROCESSING 903 56,503 68,346 55,000 73,212 81,400 LOCK BOX PAYMENT PROCESSING 903 21,935 21,535 20,000 14,942 19,900 POSTAGE 903 95,819 112,646 95,000 91,081 95,000 UNCOLLECTIBLE ACCOUNTS 904 104,396 (21,227) 60,000 0 50,000 CUSTOMER - EFFICIENCY INCENTIVES 908 0 50,000 300,000 300,000 50,000 ENERGY/RCS CONSERVATION 909 110,870 139,888 295,000 194,792 366,601ADMINISTRATIVE & GENERAL EXPENSE 920-935 9,444,347 4,083,400 4,928,301 3,377,855 5,038,339 ADMIN & GENERAL SALARIES 920 686,800 775,583 945,711 842,186 890,018 ADMIN & GENERAL SALARIES 920 225,717 294,624 459,780 354,503 387,343 SUPPORT SERVICES 920 457,582 480,242 485,931 487,391 502,375 GIS 920 3,500 716 0 85 100 OFFICE SUPPLIES & EXPENSES 921 373,357 519,520 460,316 408,637 479,964 PRINTING 921 0 115 0 0 0 ELECTRIC SUPPLIES 921 33,939 36,235 85,000 23,693 34,000 TELEPHONE 921 66,790 64,553 60,000 42,967 66,000 NATURAL GAS 921 0 0 0 0 0 COMPUTER HARDWARE 921 44,061 74,468 45,000 17,605 45,000 COMPUTER SOFTWARE 921 190,721 297,372 267,816 287,162 300,260 FORMS 921 16,301 9,722 0 9,447 10,000 OFFICE EQUIPMENT 921 21,546 37,055 0 27,624 22,000 OUTSIDE SERVICES EMPLOYED 923 261,112 249,468 503,852 166,787 479,945 ENGINEERING SERVICES 923 27,065 53,705 105,000 56,953 190,000 AUDIT 923 45,585 38,550 35,000 24,000 40,000 LEGAL 923 59,442 81,542 94,257 43,550 50,000 CONSULTING/GENERAL SERVICES 923 0 0 90,000 0 0

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SAFETY & TRAINING 923 74,672 12,631 138,318 5,272 61,600 CONSTRUCTION SERVICES 923 13,359 12,605 0 5,063 98,500 TRAINING 923 40,990 50,434 41,277 31,949 39,845 PROPERTY INSURANCE 924 238,931 208,250 204,795 18,297 200,000 EMPLOYEE PENSIONS & BENEFITS 926 7,305,445 1,716,219 2,131,044 1,350,324 2,382,225 EMPLOYEE PENSIONS 926 5,783,305 814,895 831,096 282,363 832,000 HEALTH, LIFE INSURANCE, & MEDICARE 926 471,580 421,433 586,174 367,223 826,205 WORKMAN'S COMPENSATION 926 120,000 120,000 120,000 120,000 120,000 UNEMPLOYMENT INSURANCE 926 91,200 91,200 91,200 91,200 91,200 LIFE INSURANCE 926 2,015 1,668 2,088 1,343 12,820 FICA - MEDICARE 926 52,501 58,429 60,486 48,290 60,000 OPEB 926 784,844 208,595 440,000 439,905 440,000 STORES EXPENSE 163 201,181 22,616 207,122 262,528 211,000 MISC GENERAL EXPENSES 930 116,349 140,511 165,845 115,415 147,572 LICENSES 930 310 150 0 793 793 CLOTHING ALLOWANCE 930 825 16,290 825 13,147 13,147 SUBSCRIPTIONS 930 1,002 307 275 1,034 1,034 GENERAL DUES/MEMBERSHIPS 930 1,945 2,771 1,945 2,045 2,045 MEAM DUES 930 4,630 5,127 6,500 4,464 5,500 APPA DUES 930 16,517 16,446 17,000 17,005 18,000 NEPPA DUES 930 17,070 17,415 18,000 17,415 19,000 MISCELLANEOUS 930 8,348 7,204 3,000 8,157 8,157 OUT OF STATE TRAVEL 930 5,740 957 0 0 5,436 TRAVEL ALLOWANCE 930 4,240 3,436 0 2,569 2,500 MILEAGE REIMBURSEMENT 930 3,297 866 0 189 206 PERSONAL 930 40,470 40,409 0 40,289 40,500 JURY DUTY 930 0 1,002 0 398 500 OTHER TOWN ACTIVITIES 930 8,212 24,143 0 5,047 5,000 MISC GENERAL - PARKING/TOLLS 930 41 29 0 114 150 MISC GENERAL - FLSA 930 3,702 3,958 0 2,750 3,000 RENTAL EXPENSE 931 3,895 0 0 0 0 TRANSPORTATION 933 79,707 68,621 60,051 37,130 65,915 MAINTENANCE EXPENSE 933 1,932 3,721 2,000 144 2,000 GASOLINE 933 22,366 16,172 17,191 8,014 17,154 DIESEL 933 29,734 18,614 19,152 7,929 18,761 OTHER 933 25,676 30,115 21,708 21,043 28,000 MAINTENANCE OF GENERAL PLANT 935 177,323 382,612 249,565 178,331 181,700 WATER 935 2,797 2,691 0 1,956 2,700 GENERAL MAINTENANCE 935 95,718 180,127 176,428 87,377 100,000 SECURITY 935 7,897 20,029 6,500 17,148 5,000 CONTRACT CLEANING 935 34,032 24,203 26,800 22,461 25,500 RUBBISH REMOVAL 935 7,205 5,908 5,267 3,769 5,800 HAZARDOUS WASTE REMOVAL 935 24,921 139,440 25,000 38,535 32,500 NATURAL GAS 935 4,754 10,214 9,570 7,085 10,200 PAYROLL LABOR DISTRIBUTION 997 247 0 0 420 0 OPERATIONS 997 (74) 0 0 0 0 CUSTOMER SERVICE 997 (214) 0 0 0 0 ADMIN/GENERAL 997 535 0 0 0 0 TRUCKS 997 0 0 0 420 0 PAYROLL CLEARING 998 0 0 0 (2,199) 0INTEREST EXPENSE 427-431 285,500 286,921 275,000 124,027 221,231 INTEREST ON BOND & NOTES 427 306,317 291,120 275,000 123,470 219,431 AMORTIZATION OF DEBT DISCOUNT 428 (22,340) 0 0 (1,414) 0 OTHER INTEREST EXPENSES 431 1,524 (4,199) 0 1,971 1,800

TOTAL OPERATING EXPENSE 49,647,002 43,791,133 44,066,974 34,486,043 41,495,085

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DISTRIBUTION PLANT 924,285 1,795,538 3,001,000 1,376,811 3,556,697 LAND & LAND RIGHTS 360.0 0 0 0 0 0 STRUCTURES & IMPROVEMENTS 361.0 0 9,975 0 0 0 STATION EQUIPMENT 362.0 47,984 249,731 52,000 32,017 968,000 STORAGE BATTERIES 363.0 0 0 0 0 0 POLES & FIXTURES 364.0 135,184 112,950 426,140 129,727 186,000 OVERHEAD CONDUCTORS & DEVICES 365.0 296,953 521,143 1,212,860 750,101 1,478,288 UNDERGROUND CONDUIT 366.0 0 0 0 38,390 0 UNDERGROUND CONDUCTORS & DEVICES 367.0 64,237 71,259 0 50,375 186,000 LINE TRANSFORMERS 368.0 95,526 112,175 75,000 147,970 60,000 SERVICES 369.0 27,559 112,836 0 63,247 0 METERS 370.0 106,702 536,411 0 41,529 0 INSTALLATIONS ON CUSTOMER PREMISES 371.0 118,499 8,662 420,000 29,213 0 STREET LIGHTS & SIGNALS 0 STREET LIGHTING 373.1 3,434 60,396 265,000 43,184 150,000 TRAFFIC SIGNALS 373.2 28,207 550,000 51,056 178,409 MISCELLANEOUS OTHER 350,000

GENERAL PLANT 2,403,051 3,251,201 1,782,156 1,164,860 941,000 SMART-GRID DISTRIBUTION AUTOMATION (HARDWARE) 382.0 593,549 2,304,771 0 123,201 0 SMART-GRID DISTRBUTION AUTOMATION (SOFTWARE) 383.0 26,507 0 169,095 0 STRUCTURES & IMPROVEMENTS 390.0 1,063,418 152,000 342,200 176,268 415,000 OFFICE FURNITURE & EQUIPMENT 391.0 1,460 0 102,333 0 TOOLS & EQUIPMENT 394.0 0 0 0 0 LABORATORY EQUIPMENT 395.0 0 0 0 0 POWER OPERATED EQUIPMENT 396.0 0 0 34,420 0 COMMUNICATION EQUIPMENT 397.0 448,229 683,304 0 211,419 157,000 MISCELLANEOUS EQUIPMENT 398.0 0 300,000 0 0 OTHER TANGIBLE ASSETS 399.0 71,168 125,510 763,656 35,023 0

TRANSPORTATION EQUIPMENT 392.0 198,720 (14,384) 376,300 313,101 369,000 Vehicle - (Unit 150) Loader - 1/4 of $170,000 42,500 Vehicle - (Unit 32) Bucket Truck 0 0 0 240,000 Vehicle - (Unit 41) Astro Van 0 0 0 41,500 Vehicle - (Unit 34) Pick-up w/plow 0 0 0 45,000

TOTAL CAPITAL EXPENDITURES 3,327,337 5,046,739 4,783,156 2,541,671 4,497,697

TOTAL FERC LINE ITEMS 52,974,339 48,837,872 51,628,637 46,098,879 48,927,929

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PROJECT NAME CY-2016 CY-2016-EST CY-2017 CY-2018 CY-2019 CY-2020 CY-2021 FERC NOTES

Sub 42 Control House Upgrade 0 0 50,000 400,000 400,000 0 0 362 New Control House @ STA 42 (Design & Build)

Station 42 T1 Transformer 0 148,361 675,000 0 0 0 0 362 Re-wind Transformer Core

Station 42 Upgrades 25,000 22,000 198,000 94,000 94,000 0 200,000 362 Upgrade Breakers, Disconnects, Airbreaks; TransGard; Cameras

Fiberoptic Installation 0 0 67,000 0 0 0 0 397 Express Fiber run from STA 42 to 1 Burroughs Street

Communication Equip Upgrade 0 0 90,000 0 0 0 0 397 Assessment & Upgrade on Exisitng WiMax Communication Tower

Pond St Sub upgrade 0 0 0 0 0 450,000 0 362 Substation Upgrades

Danversport Sub Upgrades 0 0 0 0 0 200,000 300,000 362 Substation Upgrades

Hyland Sub Upgrade 0 0 0 0 450,000 50,000 0 362 Substation Upgrades

Conant Street Substation Modification/Upgrade 20,000 0 0 450,000 550,000 0 0 362 Substation Upgrades

Northland Substation Upgrades 0 0 0 450,000 550,000 0 0 362 Substation Upgrades

Hathorne Switching Station 0 0 35,000 0 0 0 0 362 Upgrade Breaker to Hogan Center

5kV Substation Circuit Breaker Upgrade Program 0 0 0 0 0 0 0 362 Refurbish 5kV Breakers

6th Feeder - 23kV System Upgrade 900,000 1,030,000 400,000 50,000 0 0 0 364/365/366/367 6th feeder - Liberty Tree Mall section slated for 2017

5kV Upgrades/Feeder Hardening Projects (OH/UG) 100,000 54,500 530,000 250,000 250,000 250,000 250,000 364/365/366/367Various OH/UG Feeder Upgrades: Hyland Sub Getaways, Centre St Bundle Cable; 5kV sustainability

Animal Guard Initiative 0 0 150,000 0 0 0 0 365 Animal protection - 23kV System wide

Cherry Hill Industrial Park - Automation 20,000 12,000 11,000 0 0 0 0 365 Auto Transfer scheme - Reclosers at Cherry Hill Drive

23kV/5kV Cutout/Switch Replacement Program 10,000 10,000 10,000 10,000 15,000 15,000 15,000 365 Polymer replacements - 500 cutouts- porcelein degradation

23 kV Padmount Switchgear Replacement Program 90,000 52,000 104,000 52,000 52,000 52,000 52,000 365 23kv padmount switchgear replacements - Electronics Ave, etc.

Transformer Upgrades/Replacements/ TLM Program 60,000 41,900 60,000 60,000 60,000 60,000 60,000 368 Upgrade Old vintage/overloaded transformers system wide

Relay/Recloser/Fuse Coordination Project 10,000 0 10,000 10,000 10,000 10,000 0 362 Installing New Digital Meters/Relays - Substation

ABB Recloser Retrofit 0 0 0 35,000 35,000 35,000 35,000 362 Upgrade Recloser Controls - RER620 to Schweitzer

Power Factor Correction 0 0 32,000 0 0 0 0 365 Upgrade Vacuum Bottles on Cap Banks At STA42, Swingaway & Devcon

MGH Partners 44,000 46,000 0 0 0 0 0 365 Construct new Danvers/PeabodayAuto Transfer Schem

Recreation Lighting 90,000 94,000 0 0 0 0 0 371 High School field lighting / Plains Park Lighting

Traffic Signal Improvements 1,000,000 626,095 594,697 1,130,000 0 0 0 365/373 Poplar-Locust 2015-2016 -2017/ Summer- Maple 2017-2018

Town-wide LED Street Light Conversion 200,000 94,210 135,000 135,000 135,000 0 0 373 LED SL Conversion

Water Rivers Bridge/Lighting Project 15,000 0 15,000 0 0 0 0 373 Upgrade of Water River Bridge lights not covered by Mass HWY

1 Burroughs Street HVAC 900,000 0 500,000 500,000 0 0 390 HVAC replacement

1 Burroughs Street Improvements 200,000 16,300 380,000 200,000 0 0 0 390

2017 - Bldg Addition External Storage; Upgrade Phone System; Building Inetrnal Design/ 2018- Bldg internal Revamp; Handicapp Ramp - Reconstruction

2 Burroughs Street Improvements 0 0 35,000 0 0 0 0 390 Front steps - rebuild, Fire Alarm System

ROW Revital/ Upgrade 197,000 0 197,000 200,000 0 0 0 365Upgrade Bridges so we may continue to access the ROW to maintain overhead Lines

Doty Ave Water/Sewer Generator Project 0 0 0 0 0 0 0 371 SESD Requirement Est - Initial Early Est. 380K

Mass HWY-Liberty St Reconstruction 20,000 0 0 0 0 0 0 364/365 OH Line relocation to due to Reconstruction of Bridge

Mass HWY-Water Rivers Bridge Reconstruction 0 0 0 0 0 0 0 364/365/367 OH Line relocation due to Reconstruction of bridge

Rolling Stock 305,000 208,840 369,000 70,000 355,000 40,000 0 392 Transportation Equipment

Other Distribution Plant (FERC 360 - 373) 350,000 154,230 350,000 350,000 350,000 350,000 350,000 360 - 373 New Business Installations/Asset Replacement(Poles, Transformer, etc)

Other General Plant (FERC 382-399) 0 0 0 0 0 0 0 382 - 399 Facility & Equipment Upgrades

TOTAL 4,556,000 2,610,436 4,497,697 4,446,000 3,806,000 1,512,000 1,262,000

DANVERS ELECTRIC DIVISIONPLANNED PROGRAM CAPITAL IMPROVEMENTS

DEPARTMENT OF PLANNING & HUMAN SERVICES

Planning Division



• Provide staff support to 4 regulatory boards: Planning, Conservation, Preservation and HistoricDistrict Commission. These boards are responsible for project permitting, such as the WetlandsProtection Act and local By-law, Municipal Planning and Subdivision, Demolition Delay, HistoricDistrict Zoning, and the Zoning Act.

• Staff provides zoning research and analysis.• Assist in land use planning initiatives and projects.• Provide seasonal staffing to maintain and improve open space.• Process customer inquiries and provide guidance as necessary.

BUDGET COMMENTARY

No changes in staffing. The budget includes a request for the purchase of signage for open space wayfinding.


Planning & Human Services continues to pursue the overall goal of supporting the Danvers community in ways that provide healthy, safe places to live and work, recreation and cultural opportunities for all ages, social and economic diversity, quality housing with affordable choices, preservation of our environmental and historic assets, and promotion/development of a choice of transportation modes.

Priorities include downtown rezoning analysis, with a FY 2017 focus on the Maple Street I-1 design guidelines and zoning code development, maintenance and improvement of the Rail Trail network, and development of the Lebel’s Grove Management Plan. Permitting process and review through the Planning Board and Conservation Commission. The Open Space and Recreation Advisory Committee is completing their draft 2017 plan, which is a needed component for many State and Federal grant applications. Open Space interns have updated and formalized their website, which now features new maps, narratives and pictures of the Open Space areas. Goals for the program include updating signage to be uniform among all sites to help residents identify Open Space areas.

FTE FTE FTEPlanning FY16 FY17 FY18

Director of Planning & HS 1.00 1.00 1.00 Assistant Director Planning 1.00 1.00 1.00 Principal Planner 1.00 1.00 1.00 Staff Planner 1.00 1.00 1.00 Senior Secretary 1.00 1.00 1.00 Secretary 0.67 0.67 0.67

subtotal 5.67 5.67 5.67

46

DEPARTMENT OF PLANNING AND HUMAN SERVICES

Public Health Division & Veterans’ Affairs DIVISION PERSONNEL


• The Danvers Environmental Health Program inspects and permits food establishments, publicswimming pools, tanning salons, motels, mobile home parks, garbage and septage haulers, funeraldirectors; responds to nuisance complaints and acts to assure compliance; tests the waters at SandyBeach during bathing season on a weekly basis; manages pest elimination activities in all publicbuildings; provides 24/7 emergency response services; educates on matters of public andenvironmental health through partnerships with other Departments and Community outreach; andprovides technical support on matters of environmental public health.

• Public Health Services protects the health of people and the communities where they live, learn,work and play. The Danvers Public Health Nurse works to track disease outbreaks; provides oversightof flu vaccine services for residents; conducts weekly wellness clinics for all residents at the SeniorCenter; and provides outreach through the schools, media, recreation programs and othercommunity-based organizations on public health issues. She also provides supportive services toAdult Supportive Social Day Program offered at the Senior Center.

• Animal Health Services Investigates all exposures to suspected rabid animals; investigates complaintsof unsanitary conditions caused by animals; conducts an annual livestock census; acts as liaison toStrays-in-Need; assists in educating pet owners; enforces the Danvers Leash Law and other applicableState Laws as necessary.

• Veterans’ Services: With assistance from a Social Services outreach worker and a part-timeadministrative clerk, a broad scope of Federal and State benefits services are available to all veteransliving in Danvers. These services include: providing monetary resources through the authority ofChapter 115 of the General Laws, filing claims directly with Department of Veterans’ Affairs,coordinating ceremonial and gravesite honors; assures that all flags are properly flown always, inaccordance with applicable law and Town policy; and, conducts other duties as necessary.

BUDGET COMMENTARY In FY 2017, Chapter 115 Veterans’ Aid line item was removed from the Health budget and placed in to the Benefits budget. Tuition reimbursement is for Environmental Health Inspector’s educational advancement. GOALS AND HIGHLIGHTS FOR FISCAL YEAR 2018 • Meet the newly established requirements for certification as a Veterans’ Service Officer by attending

required trainings and passing the required exam.• Improve skills of our technology tools, such as Full Circle Software, MAVEN (epidemiology network),

VSMIS (veterans’ services), and VIP (vital information partnership for burial permits as applicable).• Improve the Town’s website in regards to public health issues and on-going veterans’ benefits.• Develop outreach strategies to Danvers veterans attending local schools by improving relationships

with the veterans’ councilors at North Shore Community College and Salem State University

FTE FTE FTEHealth FY16 FY17 FY18

Public Health Director 1.00 1.00 1.00 Public Health Inspector 1.00 1.00 1.00 Social Service/Outreach Coordinator 1.00 1.00 1.00 Health Nurse 0.75 0.75 0.75

subtotal 3.75 3.75 3.75

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Recreation Division

DIVISION PERSONNEL


• Plans, organizes and implements year round recreational programs and services to thecommunity.

• Oversees the operations of the Danvers waterfront, Endicott Park, and the State-licensed “FunClub” after-school childcare program.

BUDGET COMMENTARY

No changes in staffing. Budget increases include capital requests to replace motors in Harbormaster boats, and purchase of trail maintenance vehicle.


• Maintain current level of programs and services.• Provide a free summer playground program for 11 locations.• Permit and schedule all Town Ball fields in a fair and equitable manner.• Work with Town leagues & organizations regarding field improvement efforts.• Provide park services at Endicott Park to over 160,000 park visitors annually.• Oversee all waterfront activities, operations, and permitting to over 800 boats.• Work closely with the Recreation Committee, River Committee and Cultural Council.• Increase Division revenue.

FTE FTE FTERecreation (Tax Supported) FY16 FY17 FY18

Recreation Director 1.00 1.00 1.00 Assistant Recreation Director 1.00 1.00 1.00 Director of Natural Resources 1.00 1.00 1.00 Endicott Park Ranger Supervisor 1.00 1.00 1.00 Endicott Park Ranger Foreman 1.00 1.00 1.00 Endicott Park Ranger 3.75 3.75 3.75

subtotal 8.75 8.75 8.75

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Senior & Social Services Division

DIVISION PERSONNEL


• Nutrition: Daily on-site meals, Monday through Friday, and Friday Café. Delivery of meals tohomebound, frail and at risk elders.

• Transportation: Services Danvers elders and/or those disabled under 60 with the fixed routeschedule, individual medical appointments and Adult Day Programs.

• Social Services: Referrals provided to Danvers residents of all ages. Assistance for both seniors and families in need for application to Food Stamp and fuel assistance benefits, housing, healthinsurance needs and counseling with assistance from Danvers Community Council and otherHuman Service agencies on the North Shore.

• Volunteers: Encouragement for elders and others including students to participate not only at theSenior Center but also in the community at large.

• Adult Supportive Day Care: Provides a supervised, supportive environment to seniors who benefitfrom individualized attention for caregivers who benefit from respite with peace of mind.

• Education/Social: Programs are offered to seniors who can pursue new interests and develop skillsthrough a variety of educational and recreational offerings.

BUDGET COMMENTARY

Currently, 69% of the Senior & Social Services Division is funded through Non-Tax Appropriated dollars consisting of State and Federal grants, Transportation and Program Revolving Accounts and assistance from the Friends of the Danvers Council on Aging and other private grants. Salary and wages temporary positions is reimbursed $54,962 through Title III B & C Grants.


• The Social Seniors Adult Supportive Day program continues to grow and meet the increasing needsof the older adult community. Since its inception in October 2013, we have served 65 unduplicatedindividuals for a total of 5,551 units of service. Program capacity is now at 12 participants per daywith a staffing ratio of 1:4, resulting in a fully self-supporting, revenue generating program.

• A new initiative undertaken this year is our Volunteer Driven Transportation Program. This has beendeveloped due to the rising need for transportation services, increasing costs associated with vehiclereplacement and repairs. In FY16, 15,531 rides were provided to seniors and those under 60 withdisabilities.

FTE FTE FTESenior FY16 FY17 FY18

Director of Social Services 1.00 1.00 1.00 Program Coordinator 1.00 1.00 1.00 Volunteer Coordinator 0.75 0.75 0.75 Senior Secretary 1.00 1.00 1.00

subtotal 3.75 3.75 3.75

49

2015 2016 2017 2018Account_and_Description Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT-FULL TIME 51110 967,796 1,052,459 1,065,543 1,124,409 58,866 5.5%S&W PERMANENT - PART TIME 51120 95,140 88,442 127,324 112,893 -14,431 -11.3%S&W - TEMPORARY POSITIONS 51210 172,961 231,615 222,331 229,093 6,762 3.0%OVERTIME 51310 8,835 11,890 7,569 7,651 82 1.1%OVERTIME - UNSCHEDULED 51320 0 0 2,265 2,311 46 2.0%LONGEVITY 51415 5,650 5,800 5,688 5,588 -100 -1.8%SICK LEAVE INCENTIVE 51907 4,494 4,700 5,376 5,376 0 0.0%CLEANING ALLOWANCES 51925 125 125 0 125 125 100.0%TRAVEL ALLOWANCE 57101 3,600 3,600 3,600 3,600 0 0.0%_Total_Personal Services 1,258,601 1,398,631 1,439,696 1,491,046 51,350 3.6%

ELECTRICITY 52211 2,969 2,883 4,300 3,500 -800 -18.6%OFFICE EQUIPMENT MAINTENANCE 52401 380 1,090 1,500 2,000 500 33.3%VEHICLE MAINTENANCE 52404 1,264 1,000 2,000 1,750 -250 -12.5%SOFTWARE MAINTENANCE 52421 8,777 9,054 9,800 11,722 1,922 19.6%ENDICOTT PARK SUPERVISION 52919 0 235 0 0 0 0.0%MEDICAL EXAMS (EMPLOYEE) 53003 85 170 200 200 0 0.0%CONSULTING SERVICES 53009 3,500 10,980 15,000 15,000 0 0.0%ENGINEERING CONSULTANTS 53013 4,195 6,024 8,500 8,500 0 0.0%TRANSCRIBING SERVICES 53015 0 0 150 0 -150 -100.0%TRAINING SERVICES 53019 1,535 921 5,380 5,512 132 2.5%SENIOR HEALTH SERVICES 53022 22 0 750 750 0 0.0%PUBLIC HEALTH SERVICES 53023 19,613 16,367 20,000 20,000 0 0.0%YOUTH HEALTH SERVICES 53024 1,092 213 3,000 3,000 0 0.0%ENVIRONMENTAL HEALTH ENFORCE. 53025 1,901 5,239 10,000 13,800 3,800 38.0%COMMUNITY HEALTH EDUCATION 53026 0 0 1,500 1,500 0 0.0%COMMUNITY SERVICE ORGANIZATION 53028 5,000 5,000 5,000 5,000 0 0.0%TELEPHONE 53401 2,832 3,549 3,990 4,190 200 5.0%ADVERTISING 53404 930 150 500 200 -300 -60.0%FITNESS CLUB MEMBERSHIPS 53801 0 325 500 500 0 0.0%ANIMAL CONTROL 53806 22,297 12,655 21,018 21,018 0 0.0%PEST CONTROL 53811 14,610 24,135 40,000 36,000 -4,000 -10.0%GENERAL OFFICE SUPPLIES 54201 11,060 12,889 11,000 11,000 0 0.0%FORMS PRINTING 54206 4,310 4,959 6,500 6,820 320 4.9%LUMBER AND HARDWARE 54301 1,831 1,873 4,100 2,000 -2,100 -51.2%GASOLINE - UNLEADED 54802 25,841 18,095 21,046 19,300 -1,746 -8.3%UNIFORMS 55805 1,790 1,600 1,800 1,350 -450 -25.0%PHOTOGRAPHY SUPPLIES 55806 0 0 0 0 0 0.0%TOOLS AND EQUIPMENT 55814 3,501 4,504 14,380 16,332 1,952 13.6%FIELD HOUSE SUPPLIES 55815 934 592 600 600 0 0.0%VETERAN'S CEREMONIES 55816 5,824 3,792 6,000 8,500 2,500 41.7%RECREATION - PROGRAM EXPENSES 55817 24,060 26,689 24,018 24,018 0 0.0%RECREATION - HARBOR EXPENSES 55818 11,373 11,779 11,500 11,500 0 0.0%MISCELLANEOUS SUPPLIES 55820 0 0 0 0 0 0.0%HISTORIC DISTRICT COMMISSION 55828 334 706 400 400 0 0.0%PRESERVATION COMMISSION 55829 395 78 1,200 1,200 0 0.0%MILEAGE REIMBURSEMENT 57102 11,128 13,871 11,050 16,050 5,000 45.2%CONFERENCE FEES 57104 6,380 4,412 7,600 7,600 0 0.0%PARKING, TOLLS, ETC. 57107 365 280 100 100 0 0.0%DUES AND MEMBERSHIPS 57301 6,690 5,397 7,741 9,546 1,805 23.3%SUBSCRIPTIONS 57302 238 285 253 253 0 0.0%TUITION REIMBURSEMENT 57801 1,500 8,414 3,900 17,892 13,992 358.8%MISC OTHER CHARGES & EXPENSES 57807 119 166 300 300 0 0.0%VETERANS BENEFITS 57815 112,062 174,382 0 0 0 0.0%_Total_Operating 320,737 394,753 286,576 308,903 22,327 7.8%

CAPITAL OUTLAY - REPLACE. EQ. 58501 35,840 49,607 41,470 58,610 17,140 41.3%_Total_Capital Outlay 35,840 49,607 41,470 58,610 17,140 41.3%

_Total_PLANNING & HUMAN SERVICES 1,615,178 1,842,991 1,767,742 1,858,559 90,817 5.1%

PLANNING & HUMAN SERVICES

FY17-18

50

PEABODY INSTITUTE LIBRARY


• Library Director • Youth Services Librarian• Assistant Director • Assistant Librarians (12)• Department Heads (5) • Archival Assistant (1)• Assistant Department Heads (4) • Senior Pages (4)• Reference Librarian • Pages (3)• Information Technology Coordinator • Bookkeeper


The Peabody Institute Library of Danvers is a center of life-long learning for everyone in the community. Mirroring the sentiments of our chief benefactor, George Peabody, “Education ~ a debt due from present to future generations,” it is the objective of the Peabody Institute Library to be a multi-purpose organization which serves the whole person for the public good. To achieve this goal, the library:

• Provides residents access to a rich, varied collection of print, multimedia and electronic resources.• Administers informational and recreational programs for public participation and enrichment.• Facilitates resource sharing with neighboring cities and towns through an automated network and

cooperative arrangements.• Maintains open hours and provides remote means which will allow substantial and convenient

access to the Library and its collections, while maintaining a professional and dedicated staff.• Maintains an archival center which collects, preserves and makes available all types of paper

material relating to the history and development of Danvers and Essex County.• Collects and disseminates information about local programs and services.• Supports the Town’s schools in their educational missions.

BUDGET COMMENTARY The Library’s FY 2018 operating budget will provide sufficient operational funding to allow us to achieve our goals. In addition to the requested municipal appropriation, we will also allocate $50,000 of money from the Peabody Trust and our State Aid to Public Libraries account to supplement the requested municipal operating budget. These funds will be used to supplement municipal funds for purchasing materials (books, CDs, DVDs, databases etc.) and are the sole source of funding for programming among other uses. We will continue to work closely with the Friends of the Peabody Library who provide indispensible support to us by funding our museum/attraction passes and providing other material and volunteer support at fundraisers and events. The George Peabody Society, the Library’s 501(c) (3) public charity, continues to be a valuable source of capital funds for furnishings and minor building improvements.


• Develop, maintain and make available the proper mix of services to the community.• Develop and maintain Library collections, making available a mix of print, multimedia and electronic

resources that meet the needs of the community.• Seek and acquire funding that allows the Library to provide needed services/collections and retain

eligibility for State certification IAW Chapter 78, MGLA and (605) CMR.• Train, maintain and cultivate a staff which meets and/or exceeds the needs of our community.• With community input, develop a strategic five-year plan of service for the years 2019-2023

51

2015 2016 2017 2018Account_and_Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)S&W PERMANENT - FULL TIME 51110 679,673 705,470 747,632 828,768 81,136 10.9%S&W PERMANENT - PART TIME 51120 104,147 96,756 82,750 30,025 -52,725 -63.7%S&W - TEMPORARY POSITIONS 51210 218,275 220,678 222,685 229,487 6,802 3.1%LONGEVITY 51415 11,400 10,100 10,000 10,000 0 0.0%SICK LEAVE INCENTIVE 51907 3,486 5,105 8,350 5,200 -3,150 -37.7%_Total_Personal Services 1,016,981 1,038,109 1,071,417 1,103,480 32,063 3.0%

OFFICE EQUIPMENT MAINTENANCE 52401 8,399 8,665 9,004 7,608 -1,396 -15.5%DOCUMENT RESTORATION 53001 1,000 0 0 0 0 0.0%TELEPHONE 53401 2,210 1,655 2,000 2,000 0 0.0%POSTAGE 53402 1,575 1,993 1,800 1,800 0 0.0%LIBRARY - NOBLE 53406 42,627 40,948 41,402 44,082 2,680 6.5%GENERAL OFFICE SUPPLIES 54201 8,658 8,906 9,128 9,356 228 2.5%AUDIO VISUAL MATERIAL 54209 13,055 16,542 15,315 15,698 383 2.5%LIBRARY BOOKS 55801 141,463 152,057 165,319 175,588 10,269 6.2%PERIODICALS 55827 13,059 12,456 14,931 14,931 0 0.0%_Total_Operating 232,046 243,222 258,899 271,063 12,164 4.7%

_Total_6110 PEABODY INSTITUTE LIBRARY 1,249,027 1,281,331 1,330,316 1,374,543 44,227 3.3%

PEABODY INSTITUTE LIBRARY

FY17-18

52

DEBT SERVICE

OVERVIEW

The use of long-term debt is an effective way to finance major infrastructure and equipment needs. Properly managed debt can help maintain a solid credit rating, enhance flexibility in current and future operating budgets, and provide the Town with long-term assets that maintain or improve the quality of life of Danvers residents.

Conversely, long-term debt establishes a fixed obligation for many years, impacting not only current residents, but also future residents. Accumulation of these fixed obligations can put a burden on the Town’s ability to pay future operating costs or debt service. It is, therefore, vital that the Town put great care into the planning and use of long-term borrowing.

The Town adopted a Debt Policy on March 3, 2016. The purpose of the policy is to formalize the guidelines governing the use of long-term debt and to demonstrate the Town of Danvers’ commitment to full and timely repayment of all debt issued. To view the Debt Policy and all other financial policies, please visit the Town of Danvers’ website.

53

Maturing Debt and Interest Principal Interest Budget

Smith School HVAC 1,033,000 Nov. 2003 FY2020 77,421 75,758 76,900 70,550 69,250 65,000 2,950 67,950 HS/MS HVAC (rfdg) 300,800 Nov. 2003 FY2022 18,696 18,471 17,250 16,950 16,650 15,000 1,350 16,350 School Remodeling 1,057,000 March 2005 FY2022 77,515 75,620 76,150 73,050 71,750 65,000 5,450 70,450 Middle School 11,251,000 July 2006 FY2026 925,945 901,005 761,887 758,275 726,273 655,000 124,860 779,860 Middle School 1,937,841 July 2008 FY2026 185,106 180,606 175,356 170,106 164,857 120,000 36,008 156,008 School Roof 528,000 July 2008 FY2026 52,419 51,106 44,700 43,387 42,075 30,000 9,800 39,800 Great Oak Roof 626,074 July 2014 FY2035 29,335 27,950 27,500 44,847 43,675 25,000 18,000 43,000 School Planning 5,448,000 July 1996 FY2037 151,619 142,791 101,875 150,000 341,022 160,000 180,497 340,497 School Construction 4,799,270 July 1997 FY2018 290,596 276,512 262,508 253,561 228,191 100,000 1,950 101,950 School Construction 6,355,000 July 1997 FY2018 - - - 349,890 321,730 305,000 3,889 308,889 School Remodeling 2,213,000 July 1999 FY2018 146,735 141,271 135,341 129,355 122,535 5,000 98 5,098 Thorpe Athletic Fields 280,000 July 2010 FY2024 33,813 32,938 32,188 31,672 31,094 25,000 5,157 30,157 Thorpe School Roof 637,000 July 2010 FY2028 60,881 59,481 58,281 57,456 56,532 40,000 15,032 55,032 DHS Remodeling 4,600,000 July 2014 FY2035 - - 72,925 309,275 310,725 185,000 128,000 313,000 HS Remodeling 23,525,000 July 2011 FY2037 1,900,339 1,899,965 1,901,459 1,752,465 1,561,963 685,000 874,150 1,559,150 Dredging 615,320 July 2008 FY2023 64,169 62,481 60,513 58,543 56,575 45,000 9,100 54,100 Land Acquisition (Liberty St) 566,000 Nov. 2003 FY2022 37,389 36,335 34,500 33,900 33,300 30,000 2,700 32,700 Landfill Gas Extract. 1,981,344 July 2014 FY2035 - - - 134,132 136,225 80,000 55,025 135,025 Library Remodel 1,334,000 Dec. 2001 FY2020 84,607 83,350 76,900 75,500 74,100 70,000 2,700 72,700 Land Acquisition 1,223,869 July 2014 FY2035 - - 19,355 84,483 84,625 50,000 33,875 83,875 Land Acquisition (Choate) 1,319,000 Dec. 2001 FY2020 90,878 88,090 82,550 76,100 74,700 70,000 3,300 73,300 Town Hall 5,845,100 June 2009 FY2029 479,700 473,600 466,738 459,112 450,725 305,000 136,404 441,404 Landfill Closure 1,798,000 July 2010 FY2031 156,050 152,725 149,875 143,168 140,889 90,000 47,513 137,513 Debt Retired Prior to FY2018 711,179 592,829 582,086 142,430 156,551 - - -

- Cost of Bonds 81,937 28,261 81,137 75,000 75,000 - 75,000 75,000 Interest of Temp. Loans 13,496 53,624 117,443 11,847 248,611 - 303,628 303,628

- 5,669,825 5,454,769 5,415,417 5,505,054 5,639,623 3,220,000 2,076,436 5,296,436

Amount Issued

DEBT SERVICE (GENERAL FUND)

FY15 Actual FY16 Actual

Total Debt Service (General Fund)

FY17 BudgetFY18Issue

Date Maturity Date FY13 Actual FY14 Actual

Health, Life and Dental Insurance

Worker's Compensation

Casualty and Liability

Medicare and Social Security Unemployment

Total by Department

($) ($) ($) ($) ($) ($)

Tax Supported * 11,030,255 400,000 360,180 801,621 50,000 12,642,056

Water 194,564 67,000 100,395 13,241 25,000 400,200

Sewer 70,217 - - 2,391 200 72,808

Electric 779,030 120,000 219,420 47,175 91,200 1,256,825

Total byType Insurance 12,074,066 587,000 679,995 864,428 166,400 14,371,889 * Figure in Employee Benefits budget includes $200,000 for Veterans' Benefits

NOTES:

Fiscal Year 2018 Insurance Costs

The costs associated with the tax supported share of the Town's health, dental and life insurance, worker's compensation, Medicare match, casualty and liability insurance and unemployment contributions are appropriated in the Employee Benefits and Insurance budget. The utility divisions of Public Works include costs in the Water, Sewer and Electric budgets.

The Town pays 70% of employee health care and 50% of dental premiums and of basic life insurance premiums. Worker's Compensation and Unemployment are self-insured programs. All employees hired after April 1986 are required by Federal Law to pay, and the Town to match, 1.45% of salary to Medicare. The Town does not have a Social Security match, since employees are not eligible, through their work with the Town, for Social Security benefits. Casualty and Liability Insurance is funded through a combination of self insurance and premium based programs.

55

2015 2016 2017 2018Description OBJ Actual Actual Budget Proposed Bud Chg ($) Chg (%)CASUALTY/LIABILITY INSURANCE 57401 229,832 236,231 348,000 360,180 12,180 3.5%EMPLOYEE INSURANCE 57403 9,895,580 10,174,837 10,288,802 10,988,802 700,000 6.8%LIFE INSURANCE 57509 34,793 33,557 41,453 41,453 0 0.0%MEDICARE/FICA INSURANCE 57511 669,754 701,537 697,621 697,621 0 0.0%MEDICARE SURCHARGE PREMIUM 57512 110,348 117,031 104,000 104,000 0 0.0%HOSPITAL ADMISSION DEDUCTABLE 57602 18,210 14,240 0 0 0 0.0%VETERANS BENEFITS * 57815 0 0 200,000 200,000 0 0.0%TRANSFER TO UNEMPLOYMENT FUND 59661 50,000 50,000 50,000 50,000 0 0.0%TRANSFER TO WORKERS COMP FUND 59665 250,000 250,000 350,000 400,000 50,000 14.3%_Total_Operating 11,258,517 11,577,433 12,079,876 12,842,056 762,180 6.3%

_Total_9100 EMPLOYEE BENEFITS 11,258,517 11,577,433 12,079,876 12,842,056 762,180 6.3%*Veterans Benefits moved to 9100 in FY17

FY17-18

EMPLOYEE BENEFITS

56

SUPPLEMENTAL INFORMATION

Approved by Board of Selectmen December 20, 2016

TOWN OF DANVERS FISCAL YEAR 2018 BUDGET POLICY

MISSION

To provide services, at the level desired by citizens and taxpayers, that ensure the health, safety, educa-tion, welfare, and quality of life of the community.

LONG-TERM GOALS

1. Strive to be a customer-driven organization committed to superior customer service.

2. Provide high quality and affordable education, recreation, and cultural services and programs, for res-idents of all ages, in a caring and supportive learning environment with rigorous staff and facultystandards, sufficient resources, and well maintained facilities.

3. Maintain and enhance community infrastructure, capital equipment, and public facilities throughlong-range capital planning and the prioritizing of projects, all within allowable fiscal constraints.

4. Ensure long-term fiscal stability through professional management, appropriate policies, and imple-mentation of plans and strategies aimed to maintain a stable tax base, control costs, maintain ade-quate reserves, and strengthen the Town’s financial position.

5. Provide continuity in planning and development and cost-effective public safety services to create asafe, secure, and pleasing environment where people can live, work, and play in harmony with theirsurroundings.

SHORT-TERM STRATEGIES

• Coordinate: Town, Schools & Library – Collaborate with the School Department, School Committee,Library, and Library Trustees to develop plans to (a) effectively manage budgets controlled by thoseindependently-elected bodies and those cost drivers that affect the entire organization, (b) identifyand mitigate increased costs associated with contractual obligations and state mandates, and (c) planfor high priority capital projects, e.g. Dispatch Center, Smith School, etc. Deliver responsive and re-sponsible budgets to the Finance Committee and Town Meeting.

• Balance Competing Needs – Provide affordable, quality services in education, library, public safety,public works, planning, and health and human services without allowing any one service area to uti-lize a disproportionate amount of available resources. Continue to monitor and review all expensesassociated with Town government to affirm that the most cost-efficient and effective systems are inplace. Match recurring costs with recurring revenues.

• Personnel – Develop innovative approaches to controlling future personnel costs in the operatingbudget, including employee compensation, benefits, and pension / retiree healthcare costs. Recog-nize the need to maintain an equitable approach to compensation for non-union and unionized em-ployees.

57

TOWN OF DANVERS FISCAL YEAR 2018 BUDGET POLICY December 20, 2016 Page 2

• Reserves & Debt – Maintain the Town’s reserve accounts, debt service, and capital programs in com-

pliance with adopted financial policies. Continue to fund and use the School Stabilization Account to offset school related debt costs.

• Capital Improvement Program – Develop and maintain a comprehensive, five-year Capital Improve-

ment Program (CIP). Give special consideration to the long-term impacts that capital projects may have on the operating budget or future CIP needs.

• Revenue – Revenue diversification should be explored and expanded, including the creative use of

PILOTs, to broaden the revenue base, to strengthen the Town’s tax levy capacity, and to mitigate an-ticipated and/or unforeseen reductions in anticipated revenue sources. Work with State/Federal rep-resentatives and municipal organizations to protect and enhance Local Aid. Where possible, offer property tax abatement programs within fiscally responsible guidelines.

BUDGET CONFERENCE COMMITTEE Nature & Scope: The Budget Conference Committee (or “BCC”) is a forum designed to assist the Select-men, School Committee, and Library Trustees resolve budget-related issues through negotiation and compromise prior to passage of each body’s final budget when preliminary budgets exceed the budget targets set forth by the Selectmen. The budgets can then be put before respective, elective bodies for a final vote reflecting the consensus of the BCC. Ground Rules: The BCC may be convened at the request of the Chair of the School Committee or Library Trustees by notifying the Chair of the Board of Selectmen (who may also call for the BCC), at which time a tentative meeting schedule will be established within required time frames, i.e. Warrant posting, Finance Committee hearings, etc. The Finance Committee Chair, or designee, will be notified of any meetings of the BCC. The BCC will meet in posted, public session at an appropriate time mutually convenient to the public and BCC members, as often as needed and as long as there is substantive progress toward resolution of budg-et issues. The BCC shall consist of nine members: the three Chairs, one additional member from each of the three legislative bodies, and their respective chief executives. The Chairs, or their designees, will agree on the time/place for the first meeting and notify their respective attendees. The BCC will not vote on action taken, as consensus agreement is the objective. Outcomes: If issue(s) resolved, agreement reached: ACTION: Chairs bring agreement to their respective Board/Committee for discussion and final budget vote. If approved, budget is sent to the Selectmen. If issue(s) not resolved: ACTION: The Board/Committee whose preliminary budget exceeds budget tar-gets may choose to vote their final budget and refer it to the Selectmen. The Board of Selectmen will vote the final budget and, if necessary, make adjustments to preliminary budgets in keeping with budget targets and policy.

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Charges to Charges to Charges to TotalService Provider Electric Water Sewer Charges

($) ($) ($) ($)

Administrative Services 39,289 34,659 26,459 100,407

Town Accountant 119,558 39,340 29,795 188,692

Town Manager 46,233 24,810 18,940 89,983

Mgmt & Info Services 117,872 63,629 48,287 229,788

Human Resources 65,174 47,689 15,458 128,321

Public Works - Tax 91,399 72,727 48,447 212,573

TOTAL 479,526 282,853 187,385 949,764

Fiscal Year 2018 Support Services

59

FY2018 FY2019 FY2020-FY2037Debt Cost Applied to Tax Rate

Education 3,857,035 3,386,446 46,026,951 Library 72,700 66,350 35,350 Recreation 84,256 81,206 263,228 Planning 189,875 182,175 1,476,063 Town Hall 441,404 429,204 3,339,102 Public Works 272,538 266,838 3,431,081 Subtotal 4,917,808 4,412,219 54,571,775

Debt Cost Supported by Revenue Division

Public Works - Water Enterprise Fund 2,092,249 2,060,712 21,865,058 Public Works - Sewer Enterprise Fund 491,077 435,303 1,540,417 Public Works - Electric Division 880,331 794,156 6,064,633 Subtotal 3,463,657 3,290,171 29,470,108

TOTAL 8,381,465 7,702,390 84,041,883

Debt Cost Applied to Tax Rate

Fire Department Aerial Platform 1,260,000 Library HVAC 2,100,000 School Athletic Fields 6,450,000 Public Safety Communications 5,700,000

Land Acquisition 1,750,000 Subtotal 17,260,000

Debt Cost Supported by Revenue Division

Drainage Improvements 271,331 Frost Fish Brook 1,000,000 Water Main Replacement 1,510,000 Subtotal 2,781,331

TOTAL 20,041,331

Authorized Issued Debt Schedule

Authorized Unissued Debt

First long-term debt payments are projected for FY2019

First long-term debt payments are projected for FY2019

60

5 Year Capital Improvement Plan (CIP) for the FY 2018 Budget What is a Capital Improvement Plan? A Capital Improvement Plan (CIP) is a five-year summary of all the known capital project and equipment needs for Danvers, including anticipated timelines and funding sources.

A well-crafted CIP: allows for capital investments to be made in a strategic, systematic and sus-tainable way; to inform the public about the Town’s capital investment plans; and guides financial decision making to ensure that funding sources (cash, grants, borrowing, etc.) align with pro-jected needs. A CIP serves as a roadmap for staff, officials, and community members to better understand how projects, resources, and capacity – both financial and personnel – fit together.

The first year of a CIP is known as the capital budget, which includes the upcoming year’s pro-posed spending on capital items. The out years (years two to five) detail the capital items that Danvers hopes to accomplish, subject to available funding, staffing, and unforeseen events that may reprioritize certain projects and/or timelines.

Capital Requests: 5 Year CIP, FY2018 – FY2022 The following tables show the FY 2018 Capital Outlay request and the current five year plan for capital expenditures.

Capital expenditures are expenditures that create future benefits for the Town. A capital expendi-ture is incurred when the Town either purchases a fixed asset or adds value to an existing fixed asset with a useful life extending beyond the fiscal year.

Projects with an amount appearing in the FY2018 column are recommended in the FY2018 Op-erating Budget (also known as “Capital Outlay”) and in various proposed Warrant Articles which will be provided with greater detail in the Town Meeting Warrant & Explanation Report booklet.

The Town of Danvers generally pays for capital improvements in three ways:

1. The Operating Budget – Capital Outlay in the Operating Budget represents costs that are annual in nature, but provide fixed assets to the Town that have useful life beyond the fiscal year which the Operating Budget generally represents.

2. Cash (Free Cash) – The Division of Local Services certifies “Free Cash” on an annual basis. Free Cash is generated when expenditures in the prior year are less than budgeted, or when revenues are greater than projected.

3. Debt (Long-Term Borrowing) – The greatest portion of debt service for the Town is schools, as capital improvements to school buildings are generally very costly. The Town of Danvers has made a con-certed effort to use cash for capital projects to maintain borrowing capacity for its largest capital needs and also for unpredictable or extraordinary needs.

Projects shown with amounts in FY2019 – FY2022 columns are for planning purposes only and do not represent the Town Manager’s recommendation for funding in future years.

61

General FundSUMMARY 5 YEAR CIP - Recommended, Deferred & Future

Department Project Title FY2015 Approp.

FY2016 Approp.

FY2017 Approp. Funding Source

FY2018 Budget

FY2019 Projected

FY2020 Projected

FY2021 Projected

FY2022 Projected

Mgmt & Info Systems Technology Plan 225,600 288,000 274,000 Cash 342,136 300,000 300,000 300,000 300,000 Telephone System 62,500 28,738 78,837 Cash - - - - - Fiber Rollout - - - Cash 280,000 420,000 - - - Network Printers - - 17,000 Operating Budget - - 14,000 - -

Accounting & HR Time & Attendance Software - - - Cash 195,840 - - - -

Administrative Services Voting Machines - - - Operating Budget - 65,000 - - -

Code Administration Map & Plot Printer - - 9,750 Operating Budget - - - - - Vehicle Operating Budget 22,400 - - - -

Planning & HHS Planning Equipment 37,900 49,728 7,200 Operating Budget 6,150 7,500 7,500 7,500 7,500 Recreation Equipment (non-revolving) 25,920 Operating Budget 45,460 25,000 25,000 25,000 25,000 Senior Services - Van Replacement Grant Program - - - Operating Budget 7,000 7,000 7,000 7,000 7,000 Senior Services - Building 3,600 Operating BudgetCrane River Shoreline Stabilization - - - Cash 65,300 - - - - Dredging 25,000 25,000 25,000 Cash 20,000 25,000 25,000 25,000 25,000

Fire Fire Department Aerial Platform - 1,260,000 - Debt - - - - - Fire Pumper - - 300,000 Cash 280,000 - - - - Fire Roof & Building Improvements - - - Debt 260,000 - - - - Fire HVAC (Engine 2) - Debt - 800,000 - - - Rescue 1 & Fire Prevention Ford Trucks 69,408 38,664 - Operating Budget - - - 150,000 150,000 Gear Washer & Dryer - - - Operating Budget - 33,000 - - - Protective Clothing - - - Operating Budget 50,000 51,500 53,000 - -

Police Cruiser Replacement (5% escalator) (4-5 Alt.) 192,299 161,416 149,121 Operating Budget 217,790 182,943 240,113 201,695 264,724 Public Safety Dispatch Center 5,500,000 - 200,000 Debt - - - - - Radio Tower - - - Cash - 120,000 - - - Portable Radio - - - Operating Budget - - 69,000 69,000 - Taser Replacements - - - Operating Budget - - 12,250 - - Hand Held Radar Units - - - Operating Budget - - 3,580 - - Protective Clothing (Second Change Body Armor) - - - Operating Budget - - - 40,020 -

School School Transportation Vehicles 90,000 92,000 65,000 Cash 70,000 120,000 90,000 90,000 90,000 High School Athletic Fields 6,450,000 - - Debt - - - - - Smith School (design, no MSBA incl.) - - 1,800,000 Debt - - - - - Smith School (net of MSBA @ 50%) - - - Debt 25,000,000 - - -

DPW (Tax Supported) Pavement Mgmt & Sidewalk Replacement 125,000 125,000 150,000 Cash 295,500 200,000 225,000 225,000 225,000 Roadway Acceptance Plans 15,000 15,000 15,000 Cash 15,000 15,000 15,000 15,000 15,000 Building Improvements 208,800 362,880 408,325 Cash 361,300 400,000 400,000 400,000 400,000 Ground Improvements 38,800 - 56,000 Cash 243,000 75,000 75,000 75,000 75,000 Bridge Repair - - 225,000 Cash - - - - - DPW Salt Shed Repair 120,000 - - Cash - - - - - Vehicle Maintenance (2% escalator) 307,000 344,000 450,000 Operating Budget 437,500 446,250 455,175 464,279 473,564

Library Building Improvements 2,100,000 - - Debt - - - - - 910,700 936,618 1,597,162 Cash Total 2,168,076 1,675,000 1,130,000 1,130,000 1,130,000 606,607 593,808 662,591 Operating Budget Total 786,300 818,193 886,618 964,494 927,788

14,050,000 1,260,000 2,000,000 Debt Total 260,000 25,800,000 - - - 15,567,307 2,790,426 4,259,753 TOTAL CAPITAL PLAN 3,214,376 28,293,193 2,016,618 2,094,494 2,057,788

Debt authorizations are projections shown in year voted at Town Meeting

TOTALS

Water & Sewer Enterprise FundSUMMARY 5 YEAR CIP - Recommended, Deferred & Future

Department Project Title FY2015 Approp. FY2016 Approp. FY2017 Approp. Funding Source FY2018 Budget

FY2019 Projected

FY2020 Projected

FY2021 Projected

FY2022 Projected

Wastewater Facility Improvements 270,000 1,200,000 400,000 Sewer Retained Earnings - 800,000 200,000 75,000 265,000 Wastewater Improvements 452,097 247,000 600,000 Sewer Retained Earnings - - - - - Sewer Division Vehicles (Capital Outlay - Budget) 30,000 11,000 63,000 Sewer Receipts 135,500 90,000 90,000 60,000 60,000 Water & Sewer Facility (1a) 960,000 - - Sewer Retained Earnings - - - - - Wastewater CCTV Inspections & Cleanings - - - Sewer Receipts 200,000 - - - - SCADA Software & Hardware - - - Sewer Receipts 80,000 - 150,000 75,000 75,000 Endicott Street (New Asia) PS Replacement - - - Sewer Receipts - 800,000 - - - Szypko Bridge PS Replacement - - - Sewer Receipts - - 850,000 Drainage Maintance 25,000 25,000 25,000 Sewer Receipts 20,000 25,000 25,000 25,000 25,000 Frost Fish Brook Drainage - - 1,000,000 Sewer Debt - - 1,300,000 1,200,000 900,000 I/I Lining Projects - 5-Year Capital - - - Sewer Debt 4,000,000 - - - - Coolidge Road Culvert - - - Sewer Receipts - 800,000 Building Improvement Article (Sewer Contrib.) - 2,667 13,200 Sewer Receipts 7,000 7,000 7,000 7,000 7,000 Fiber Rollout Article (Sewer Contrib.) - - - Sewer Receipts - 25,000 - - -

325,000 1,236,000 501,200 Receipts Total 442,500 1,722,000 1,122,000 167,000 167,000 1,412,097 249,667 613,200 Retained Earnings Total - 800,000 200,000 75,000 265,000

- - 1,000,000 Debt Total 4,000,000 - 1,300,000 1,200,000 900,000 1,737,097 1,485,667 2,114,400 TOTAL CAPITAL PLAN 4,442,500 2,522,000 2,622,000 1,442,000 1,332,000

Debt authorizations or projections shown in year voted at Town MeetingSewer Enterprise Fund CIP contains projections from CDM Smith recommendations (October 2014); also contains projected MS4-related capital costs (culverts, etc.)

Department Project Title FY2015 Approp. FY2016 Approp. FY2017 Approp. Funding Source

FY2018 Projected

FY2019 Projected

FY2020 Projected

FY2021 Projected

FY2022 Projected

Pump Station Repairs - 100,000 250,000 Water Retained Earnings 800,000 - 500,000 - - Chlorine Booster Station - - 300,000 Water Retained Earnings - - - - - Water & Sewer Facility (2a) 1,440,000 - - Water Retained Earnings - - - - - Water & Sewer Facility (2b) - - - Water Retained Earnings 300,000 - - - -

Water Main Replacement (1) 100,000 800,000 800,000 Water Retained Earnings - 1,300,000 - 500,000 - Water Main Replacement (2) - - - Water Debt - 1,586,000 4,200,000 2,250,000 4,050,000 Water Main - Long Range Plan Development - - - Water Retained Earnings 150,000

Valve Exercising Program 130,000 200,000 100,000 Water Retained Earnings - - - - - Water Division Vehicles (Capital Outlay - Budget) 200,000 91,000 160,000 Water Receipts 112,500 100,000 100,000 100,000 100,000

Well 1&2 Equipment - - - Water Retained Earnings - - - 500,000 - SCADA Software & Hardware - - - Water Retained Earnings - - - 500,000 Dam Rehabiliation & Improvements - - - Water Retained Earnings 40,000 - - - - Buildings Improvement Article (Water Contrib.) 15,000 2,667 13,200 Water Retained Earnings 7,000 15,000 15,000 15,000 15,000 Fiber Rollout Article (Water Contrib.) - - - Water Retained Earnings 25,000 25,000 - - -

200,000 91,000 160,000 Receipts Total 112,500 100,000 100,000 100,000 100,000 1,685,000 1,102,667 1,463,200 Retained Earnings Total 1,322,000 1,340,000 515,000 1,515,000 15,000

- - - Debt Total - 1,586,000 4,200,000 2,250,000 4,050,000 1,885,000 1,193,667 1,623,200 TOTAL CAPITAL PLAN 1,434,500 3,026,000 4,815,000 3,865,000 4,165,000

Debt authorizations or projections shown in year voted at Town Meeting

Sewer Enterprise & Drainage Maintenance

TOTALS

Water Enterprise

TOTALS

DEPARTMENT DESCRIPTIONPolice Cruisers (5) 217,790$ 217,790$ Fire Protective Clothing (Phase 1) 50,000$ 50,000$ Code Admin Replacement SUV 22,400$ 22,400$ Public Works - Tax

Grounds 4x4 Pick Up Truck with plow 45,000$ 437,500$ Grounds 4WD Offroad Utility Vehicle 20,000$ Buildings 4x4 Pick Up Truck with plow 52,000$ Street Sidewalk Tractor with Blower & Brush 195,000$ Street Street Sweeper Lease (50%) 32,000$ Street Loader (25%) 48,500$ Street 4x4 Pick Up Truck with plow 45,000$

Planning & Human ServicesRecreation Outboard Motors (x2) 32,960$ 58,610$ Recreation 4WD Offroad Utility Vehicle (Endicott) 12,500$ Senior Van Replacement (10%) 7,000$ Planning Signage (5 locations) 6,150$

786,300$

Public Works - UtilitiesWater Loader (25%) 48,500$ 112,500$

Bobcat Skid Steer (50%) 55,000$ Trench Compactor 9,000$

Sewer Loader (25%) 48,500$ 135,500$ Bobcat Skid Steer (50%) 55,000$ Street Sweeper Lease (50%) 32,000$

Electric Loader (25%) 48,500$ 375,000$ 4x4 Van 41,500$ 4x4 Pick Up Truck with plow 45,000$ Bucket Truck 36200 GVW 46ft. 240,000$

623,000$

TOTAL 1,409,300$

Tax Supported - Total

Rate Supported - Total

PROPOSED

Capital OutlayFY2018

64

Glossary of Financial Terms

Abatement – A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Agency Fund – This is one of four types of fiduciary funds. It is used to report resources in a purely custodial capacity by a governmental unit. Agency funds generally involve only the receipt, temporary investment, and periodic transfer of money to fulfill legal obligations to individuals, private organizations, or other governments. For example, certain employee payroll withholdings typically accumulate in an agency fund until due and forwarded to the federal government, health care provider, and so forth. Amortization – The gradual repayment of an obligation over time and in accordance with a pre- determined payment schedule. Appellate Tax Board (ATB) – Appointed by the governor, the ATB has jurisdiction to decide appeals from local decisions relating to property taxes, motor vehicle excises, state owned land (SOL) valuations, exemption eligibility, property classification, and equalized valuations. Appropriation – An authorization granted by a town meeting, city council or other legislative body to expend money and incur obligations for specific public purposes. An appropriation is usually limited in amount and as to the time period within which it may be expended. (See Encumbrance, Line-Item Transfer, Free Cash) Assessed Valuation – A value assigned to real estate or other property by a government as the basis for levying taxes. Audit – An examination of a community's financial systems, procedures, and data by a certified public accountant (independent auditor), and a report on the fairness of financial statements and on local compliance with statutes and regulations. The audit serves as a valuable management tool for evaluating the fiscal performance of a community. Audit Report – Prepared by an independent auditor, an audit report includes: (a) a statement of the scope of the audit; (b) explanatory comments as to application of auditing procedures; (c) findings and opinions; (d) financial statements and schedules; and (e) statistical tables, supplementary comments, and

recommendations. It is almost always accompanied by a management letter. Balance Sheet – A statement that discloses the assets, liabilities, reserves, and equities of a fund or governmental unit at a specified date. Boat Excise – In accordance with MGL Chapter 60B, this is an amount levied on boats and ships in lieu of a personal property tax for the privilege of using the Commonwealth’s waterways. Assessed annually as of July 1, the excise is paid to the community where the boat or ship is usually moored or docked. Bond – A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year. (See Note) Bond Anticipation Note (BAN) – Short-term debt instrument used to generate cash for initial project costs and with the expectation that the debt will be replaced later by permanent bonding. Typically issued for a term of less than one year, BANs may be re-issued for up to five years, provided principal repayment begins after two years (MGL Ch. 44 §17). Principal payments on school related BANs may be deferred up to seven years (increased in 2002 from five years) if the community has an approved project on the Massachusetts School Building Authority (MSBA) priority list. BANs are full faith and credit obligations. Bond Authorization – The action of town meeting or a city council authorizing the executive branch to raise money through the sale of bonds in a specific amount and for a specific purpose. Once authorized, issuance is by the treasurer upon the signature of the mayor, or selectmen. (See Bond Issue) Bond Premium – The difference between the market price of a bond and its face value (when the market price is higher). A premium will occur when the bond’s stated interest rate is set higher than the true interest cost (the market rate). Additions to the levy limit for a Proposition 2 ½ debt exclusion are restricted to the true interest cost incurred to finance the excluded project. Premiums received at the time of sale must be offset against the stated interest cost in computing the debt exclusion. If receipt of the premium and the payment of

65 Glossary of Financial Terms

interest at maturity of an excluded debt occur in different fiscal years, reservation of the premium for future year’s debt service is required at the end of the fiscal year when the premium was received. (See DOR Bulletin 2003-20B) Muni Mod Act Bond Rating (Municipal) – A credit rating assigned to a municipality to help investors assess the future ability, legal obligation, and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps prospective investors determine the level of risk associated with a given fixed-income investment. Rating agencies, such as Moody's and Standard and Poors, use rating systems, which designate a letter or a combination of letters and numerals where AAA is the highest rating and C1 is a very low rating. Bonds Authorized and Unissued – Balance of a bond authorization not yet sold. Upon completion or abandonment of a project, any remaining balance of authorized and unissued bonds may not be used for other purposes, but must be rescinded by town meeting or the city council to be removed from community's books. Budget – A plan for allocating resources to support particular services, purposes and functions over a specified period of time. (See Level Funded Budget, Performance Budget, Program Budget, Zero Based Budget) Bureau of Accounts (BOA) – A bureau within the State Division of Local Services charged with overseeing municipal execution of financial management laws, rules and regulations. Bureau of Local Assessment (BLA) – A bureau within the State Division of Local Services charged with overseeing municipal execution of state laws, rules and regulations involving real and personal property assessments. Business-Type Activities – One of two classes of activities reported in the GASB 34 government-wide financial statements. These activities are financed in whole or in part by fees charged to users for goods or services. Some examples are enterprise (MGL Chapter 44 §53F½), special revenue (MGL Ch. 44 §69B) water, and municipal electric fund.

Capital Assets – All tangible property used in the operation of government, which is not easily converted into cash, and has an initial useful live extending beyond a single financial reporting period. Capital assets include land and land improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements; vehicles, machinery and equipment. Communities typically define capital assets in terms of a minimum useful life and a minimum initial cost. (See Fixed Asset) Capital Budget – An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements. Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Asset, Fixed Asset) Capital Improvements Program – A blueprint for planning a community's capital expenditures that comprises an annual capital budget and a five-year capital program. It coordinates community planning, fiscal capacity and physical development. While all of the community’s needs should be identified in the program, there is a set of criteria that prioritizes the expenditures. Capital Outlay – The exchange of one asset (cash) for another (capital asset), with no ultimate effect on net assets. Also known as "pay as you go," it is the appropriation and use of available cash to fund a capital improvement, as opposed to incurring debt to cover the cost. Capital Projects Fund – Fund type used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). Certification – Verification of authenticity. Can refer to the action of a bank, trust company, or DOR’s Bureau of Accounts (BOA) in the issuance of State House Notes, to confirm the genuineness of the municipal signatures and seal on bond issues. The certifying agency may also supervise the printing of bonds and otherwise safeguard their preparation against fraud, counterfeiting, or over- issue. Also refers to the certification by the Bureau of Local Assessment (BLA)


that a community’s assessed values represent full and fair cash value (FFCV). (See Triennial Revaluation) Chapter 70 School Aid – Chapter 70 refers to the school funding formula created under the Education Reform Act of 1993 by which state aid is distributed through the Cherry Sheet to help establish educational equity among municipal and regional school districts. Chapter 90 Highway Funds – State funds derived from periodic transportation bond authorizations and apportioned to communities for highway projects based on a formula under the provisions of MGL Ch. 90 §34. The Chapter 90 formula comprises three variables: local road mileage (58.33 percent) as certified by the Massachusetts Highway Department (MHD), local employment level (20.83 percent) derived the Department of Employment and Training (DET), and population estimates (20.83 percent) from the US Census Bureau. Local highway projects are approved in advance. Later, on the submission of certified expenditure reports to MHD, communities receive cost reimbursements to the limit of the grant. Chapter Land – Forest, agricultural/horticultural, and recreational lands classified, valued and taxed according to MGL Chapters 61, 61A, and 61B. Cherry Sheet – Named for the cherry colored paper on which they were originally printed, the Cherry Sheet is the official notification to cities, towns and regional school districts of the next fiscal year’s state aid and assessments. The aid is in the form of distributions, which provide funds based on formulas and reimbursements that provide funds for costs incurred during a prior period for certain programs or services. Links to the Cherry Sheets are located on the DLS website at www.mass.gov/dls. (See Cherry Sheet Assessments, Estimated Receipts) Cherry Sheet Assessments – Estimates of annual charges to cover the cost of certain state and county programs. Cherry Sheet Offset Items – Local aid that may be spent without appropriation in the budget, but which must be spent for specific municipal and regional school district programs. Current offset items include racial equality grants, school lunch grants, and public libraries grants. (See Offset Receipts)

CIP – Can refer to an abbreviation for Commercial, Industrial, and Personal properties by the Bureau of Local Assessment (BLA). It also can refer to Capital Improvements Program. COLA – Cost of Living Adjustment Collective Bargaining – The process of negotiating workers' wages, hours, benefits, working conditions, etc., between an employer and some or all of its employees, who are represented by a recognized labor union. Commitment – This establishes the liability for individual taxpayers. For example, the assessors' commitment of real estate taxes fixes the amount that the collector will bill and collect from property owners. Consumer Price Index (CPI) – The statistical measure of changes, if any, in the overall price level of consumer goods and services. The index is often called the "cost-of-living index." Cost of Living Adjustment (COLA) – It is often used in municipal contracts that provide for annual or periodic increases in salaries and wages for employees over the course of the contract. The amount of an increase is most often negotiated based on a community's ability to pay, but is sometimes tied to the annual change in a specified index, i.e., consumer price index (CPI). In Massachusetts, it is also used in the Optional Cost of Living Adjustment for Property Exemptions. Debt Authorization – Formal approval by a two- thirds vote of town meeting or city council to incur debt, in accordance with procedures stated in MGL Ch. 44 §§1, 2, 3, 4a, 6-15. Debt Exclusion – An action taken by a community through a referendum vote to raise the funds necessary to pay debt service costs for a particular project from the property tax levy, but outside the limits under Proposition 2½. By approving a debt exclusion, a community calculates its annual levy limit under Proposition 2½, then adds the excluded debt service cost. The amount is added to the levy limit for the life of the debt only and may increase the levy above the levy ceiling.


http://www.mass.gov/dls

Debt Limit – The maximum amount of debt that a municipality may authorize for qualified purposes under state law. Under MGL Ch. 44 §10, debt limits are set at 5 percent of EQV. By petition to the Municipal Finance Oversight Board, cities and towns can receive approval to increase their debt limit to 10 percent of EQV. Debt Policy – Part of an overall capital financing policy that provides evidence of a commitment to meet infrastructure needs through a planned program of future financing. Debt policies should be submitted to elected officials for consideration and approval. Debt Service – The repayment cost, usually stated in annual terms and based on an amortization schedule, of the principal and interest on any particular bond issue. Demand Letter – Notice to a delinquent taxpayer of overdue taxes or charges typically mailed soon after payment period has ended. While it is a courtesy, there is no requirement to issue correspondence of this type. DLS – Division of Local Service DOR – Department of Revenue ESE – Department of Elementary & Secondary Education (formerly Department of Education, DOE) Eminent Domain – The power of a government to take property for public purposes. Frequently used to obtain real property that cannot be purchased from owners in a voluntary transaction. Encumbrance – A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that is chargeable to, but not yet paid from, a specific appropriation account. Enterprise Fund – An enterprise fund, authorized by MGL Ch. 44 §53F½, is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery--direct, indirect, and capital costs--are identified. This allows the community

to recover total service costs through user fees if it chooses. Enterprise accounting also enables communities to reserve the "surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport services. See DOR IGR 08-101 Estimated Receipts – A term that typically refers to anticipated local revenues listed on page three of the Tax Recapitulation Sheet. Projections of local revenues are often based on the previous year's receipts and represent funding sources necessary to support a community's annual budget. Excess Levy Capacity – The difference between the levy limit and the amount of real and personal property taxes actually levied in a given year. Exemption – A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is available to particular categories of property or persons upon the timely submission and approval of an application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors. Expenditure – An outlay of money made by municipalities to provide the programs and services within their approved budget. Fair Market Value – (See Full and Fair Cash Value) Fiduciary Funds – Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust funds, and agency funds. Financial Statement – A presentation of the assets and liabilities of a community as of a particular date and most often prepared after the close of the fiscal year. Fiscal Year (FY) – Since 1974, the Commonwealth and municipalities have operated on a budget cycle


that begins July 1 and ends June 30. The designation of the fiscal year is that of the calendar year in which the fiscal year ends. Since 1976, the federal government fiscal year has begun on October 1 and ended September 30. Fixed Assets – Long-lived, tangible assets such as buildings, equipment and land obtained or controlled as a result of past transactions or circumstances. Fixed Costs – Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service costs or interest on loans. Free Cash– Remaining, unrestricted funds from operations of the previous fiscal year including unexpended free cash from the previous year, actual receipts in excess of revenue estimates shown on the tax recapitulation sheet, and unspent amounts in budget line-items. Unpaid property taxes and certain deficits reduce the amount that can be certified as free cash. The calculation of free cash is based on the balance sheet as of June 30, which is submitted by the community's auditor, accountant, or comptroller. Important: free cash is not available for appropriation until certified by the Director of Accounts. (See Available Funds) Full and Fair Cash Value (FFCV) – Fair cash value has been defined by the Massachusetts Supreme Judicial Court as "fair market value, which is the price an owner willing but not under compulsion to sell ought to receive from one willing but not under compulsion to buy. Fund Balance – The difference between assets and liabilities reported in a governmental fund. Also known as fund equity. (See Unreserved Fund Balance) General Fund – The fund used to account for most financial resources and activities governed by the normal town meeting/city council appropriation process. General Ledger – The accountant's record of original entry, which is instrumental in forming a paper trail of all government financial activity. General Obligation Bonds – Bonds issued by a municipality for purposes allowed by statute that are

backed by the full faith and credit of its taxing authority. Generally Accepted Accounting Principles (GAAP) – Uniform minimum standards and guidelines for financial accounting and reporting that serve to achieve some level of standardization. Government Finance Officers Association (GFOA) – A nationwide association of public finance professionals. Governmental Accounting Standards Board (GASB) – The ultimate authoritative accounting and financial reporting standard-setting body for state and local governments. Governmental Funds – Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. Hotel/Motel Excise – A local option since 1985 that allows a community to assess a tax on short-term room occupancy. The community may levy up to 4 percent of the charge for stays of less than 90 days at hotels, motels and lodging houses. The convention center legislation imposed an additional 2.75 percent charge in Boston, Cambridge, Springfield and Worcester. Indirect Cost – Costs of a service not reflected in the operating budget of the entity providing the service. An example of an indirect cost of providing water service would be the value of time spent by non-water department employees processing water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs arises most often in the context of enterprise funds. (Support Services) Informational Guideline Release (IGR) – A DLS publication that outlines a policy, administrative procedure, or provides a law update related to municipal finance. Refer to online listing of IGRs. Inside Debt – Municipal debt incurred for purposes enumerated in MGL Ch. 44, §7, and measured against the community's debt limit as set under Ch. 10. Consequently, the borrowing is inside the debt limit


and referred to as inside debt. (See Outside Debt) Interest – Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every six months. Interest Rate – The interest payable, expressed as a percentage of the principal available, for use during a specified period of time. It is always expressed in annual terms. Interim Year Valuation Adjustment – State law requires that local assessed values reflect market value every year. In between triennial revaluations, a community must complete an annual analysis to determine whether an interim year value adjustment is warranted and report the results to BLA. Depending on market conditions and property value trends, adjustments may increase, decrease or leave values unchanged. (See IGR No. 05-401) Levy – The amount a community raises through the property tax. The levy can be any amount up to the levy limit, which is re-established every year in accordance with Proposition 2½ provisions. Levy Ceiling – A levy ceiling is one of two types of levy (tax) restrictions imposed by MGL Ch. 59 §21C (Proposition 2½). It states that, in any year, the real and personal property taxes imposed may not exceed 2½ percent of the total full and fair cash value of all taxable property. Property taxes levied may exceed this limit only if the community passes a capital exclusion, a debt exclusion, or a special exclusion. (See Levy Limit) Levy Limit – A levy limit is one of two types of levy (tax) restrictions imposed by MGL Ch. 59 §21C (Proposition 2½). It states that the real and personal property taxes imposed by a city or town may only grow each year by 2½ percent of the prior year's levy limit, plus new growth and any overrides or exclusions. The levy limit can exceed the levy ceiling only if the community passes a capital expenditure exclusion, debt exclusion, or special exclusion. (See Levy Ceiling) Lien – A legal claim against real or personal property to protect the interest of a party (i.e., a city or town) to

whom a debt is owed (i.e., taxes). In the case of real property, the lien in favor of a municipality automatically arises each January 1, but must be secured through other action. (See Lien Date) Line-Item Transfer – The reallocation of a budget appropriation between two line-items within an expenditure category (e.g., salaries, expenses). Employed as a management tool, line-item transfer authority allows department heads to move money to where a need arises for a similar purpose and without altering the bottom line. Whether or not line- item transfers are permitted depends on how the budget is presented (i.e., format) and what level of budget detail town meeting approves. Local Aid – Revenue allocated by the Commonwealth to cities, towns, and regional school districts. Estimates of local aid are transmitted to cities, towns, and districts annually by the "Cherry Sheets." Most Cherry Sheet aid programs are considered general fund revenues and may be spent for any purpose, subject to appropriation. Local Receipts – Locally generated revenues, other than real and personal property taxes. Examples include motor vehicle excise, investment income, hotel/motel tax, fees, rentals, and charges. Annual estimates of local receipts are shown on the tax rate recapitulation sheet. (See Estimated Receipts) Long-Term Debt – Community borrowing, or outstanding balance at any given time, involving loans with a maturity date of 12 months or more. (Also known as Permanent Debt) Market Value – (See Full and Fair Cash Value) Maturity Date – The date that the principal of a bond becomes due and payable in full. Massachusetts Association of Assessing Officers (MAAO) – A professional organization for individuals who are assessors in Massachusetts. Massachusetts Certified Public Purchasing Official (MCPPO) – A certification and designation program for public officials responsible for municipal procurements in Massachusetts. (See Uniform Procurement Act)


Massachusetts Collectors and Treasurers Association (MCTA) – A professional organization for individuals who are municipal tax collectors or treasurers in Massachusetts. Massachusetts Government Finance Officers Association (MGFOA) – A professional organization promoting the advancement of the profession of Public Finance in Massachusetts. Massachusetts Municipal Association (MMA) – A statewide organization for bringing together municipal officials to develop and advocate uniform policies and share information about providing municipal services. Massachusetts Municipal Auditors and Accountants Association (MMAAA) – A professional organization for individuals who are municipal auditors or accountants and others with an interest in these activities in Massachusetts. Massachusetts Municipal Depository Trust (MMDT) – An investment program, founded in 1977 under the supervision of the State Treasurer, in which municipalities may pool excess cash for investment. Massachusetts School Building Authority (MSBA) – Administers the state program that reimburses cities, towns, and regional school districts varying percentages of their school construction costs depending on the wealth of the community or district and the category of reimbursement. Projects that received their first reimbursement payment prior to July 26, 2004 will continue to get annual state payments to offset the related annual debt service. Thereafter, cities, towns, and regional school districts will receive a lump sum amount representing the state’s share of the eligible project costs.. (See DOR IGR 06-101) MGL – Massachusetts General Laws Motor Vehicle Excise (MVE) – A locally imposed annual tax assessed to owners of motor vehicles registered to an address within the community, in accordance with MGL Chapter 60A. The excise tax rate is set by statute at $25.00 per $1000 of vehicle value. Net School Spending (NSS) – School budget and municipal budget amounts attributable to education,

excluding long-term debt service, student transportation, school lunches and certain other specified school expenditures. A community’s NSS funding must equal or exceed the NSS Requirement established annually by the Department of Education (DOE). (See Education Reform Act of 1993) New Growth – The additional tax revenue generated by new construction, renovations and other increases in the property tax base during a calendar year. It does not include value increases caused by normal market forces or by revaluations.. Offset Receipts – A local option that allows estimated receipts of a particular department to be earmarked for use of the department and appropriated to offset its annual operating budget. If accepted, MGL Ch. 44 §53E limits the amount of offset receipts appropriated to no more than the actual receipts collected for the prior fiscal year. The Director of Accounts must approve use of a higher amount before appropriation. Actual collections greater than the amount appropriated close to the general fund at year-end. If actual collections are less, the deficit must be raised in the next year’s tax rate. OPEB (Other Postemployment Benefits) – Employees of state and local governments may be compensated in a variety of forms in exchange for their services. In addition to a salary, many employees earn benefits over their years of service that will not be received until after their employment with the government ends. The most common type of these postemployment benefits is a pension. Postemployment benefits other than pensions generally take the form of health insurance and dental, vision, prescription, or other healthcare benefits provided to eligible retirees, including in some cases their beneficiaries. They may also include some type of life insurance. As a group, these are referred to as OPEB. (See GASB 45) Operating Budget – A plan of proposed expenditures for personnel, supplies, and other expenses for the coming fiscal year. Other Amounts to be Raised (Tax Recapitulation Sheet) – Amounts not appropriated but raised through taxation. Generally, these are locally generated expenditures (e.g., overlay, teacher pay deferral,


deficits) as well as state, county and other special district charges. Because they must be funded in the annual budget, special consideration should be given to them when finalizing the budget recommendations to the city council or town meeting. Outside Debt – Municipal borrowing for purposes enumerated in MGL Ch. 44, §8. Debt incurred that is not measured against the community's debt limit per Ch. 10. Consequently, the borrowing is outside the debt limit and referred to as outside debt. (See Inside Debt) Overlay (Overlay Reserve or Allowance for Abatements and Exemptions) – An account established annually to fund anticipated property tax abatements, exemptions and uncollected taxes in that year. Overlay Deficit – A deficit that occurs when the amount of overlay raised in a given year is insufficient to cover abatements, statutory exemptions, and uncollected taxes for that year. Overlay deficits must be provided for in the next fiscal year. Overlay Surplus – Any balance in the overlay account of a given year in excess of the amount remaining to be collected or abated can be transferred into this account. Override – A vote by a community at an election to permanently increase the levy limit. An override vote may increase the levy limit no higher than the levy ceiling. The override question on the election ballot must state a purpose for the override and the dollar amount. (See Underride) Payments in Lieu of Taxes – An agreement between a municipality and an entity not subject to taxation, such as charitable or educational organizations, in which the payer agrees to make a voluntary payment to the municipality. By law, a city or town must make such a payment to any other community in which it owns land used for public purposes. Pension (and other employee benefit) Trust Funds – A fiduciary fund type used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit

(OPEB) plans, or other employee benefit plans. PERAC – The Public Employee Retirement Administration oversees and directs the state retirement system and administers benefits for members. Personal Property – Movable items not permanently affixed to, or part of the real estate. It is assessed separately from real estate to certain businesses, public utilities, and owners of homes that are not their primary residences. Preliminary Tax – The tax bill for the first two quarters of the fiscal year sent, no later than July 1, by communities on a quarterly tax billing cycle. The tax due on a preliminary tax bill can be no greater than the amount due in the last two quarters of the previous fiscal year. Procurement Officer – An individual defined under MGL Ch. 30B, §2 and authorized to procure supplies or services for a governmental body. (Also known as Purchasing Agent) Proposition 2½ – A state law enacted in 1980, Proposition 2½ regulates local property tax administration and limits the amount of revenue a city or town may raise from local property taxes each year to fund municipal operations. Proprietary Funds – Funds that account for government’s business-type activities (e.g., activities that receive a significant portion of their funding through user charges). The fund types included in proprietary funds are the enterprise fund and the internal service fund. Purchase Order – An official document or form authorizing the purchase of products and services. Recap Sheet – (See Tax Rate Recapitulation Sheet) Receipts – Money collected by and within the control of a community from any source and for any purpose. Receivables – An expectation of payment of an amount certain accruing to the benefit of a city or town. Refunding of Debt – Transaction where one bond


issue is redeemed and replaced by a new bond issue under conditions generally more favorable to the issuer. (See Current and Advance Refunding of Debt) Reserve for Abatements and Exemptions – (See Overlay) Reserve Fund – An amount set aside annually within the budget of a city (not to exceed 3 percent of the tax levy for the preceding year) or town (not to exceed 5 percent of the tax levy for the preceding year) to provide a funding source for extraordinary or unforeseen expenditures. In a town, the finance committee can authorize transfers from this fund for "extraordinary or unforeseen" expenditures. Other uses of the fund require budgetary transfers by town meeting. In a city, transfers from this fund may be voted by the city council upon recommendation of the mayor. Residential Exemption – A municipality can grant a residential exemption of a dollar amount that cannot exceed 20 percent of the average assessed value of all residential class properties. The exemption reduces, by the adopted percentage, the taxable valuation of each residential parcel that is a taxpayer's principal residence. Granting the exemption raises the residential tax rate and shifts the residential tax burden from moderately valued homes to apartments, summer homes and higher valued homes. Residential Factor – Adopted by a community annually, this governs the percentage of the tax levy to be paid by property owners. A residential factor of “1” will result in the taxation of all property at the same rate (single tax rate). Choosing a factor of less than one results in increasing the share of the levy raised by commercial, industrial and personal property. Residential property owners will therefore pay a proportionately lower share of the total levy. (See Minimum Residential Factor) Retained Earnings – (See Net Assets Unrestricted) Revaluation – The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with constitutional and statutory requirements. Revenue Deficit – The amount by which actual revenues at year-end fall short of projected revenues

and are insufficient to fund the amount appropriated. In such a case and unless otherwise funded, the revenue deficit must be raised in the following year's tax rate. Revenues – All monies received by a governmental unit from any source. Revolving Fund – Allows a community to raise revenues from a specific service and use those revenues without appropriation to support the service. For departmental revolving funds, MGL Ch. 44 §53E½ stipulates that each fund must be re- authorized each year at annual town meeting or by city council action, and that a limit on the total amount that may be spent from each fund must be established at that time. The aggregate of all revolving funds may not exceed ten percent of the amount raised by taxation by the city or town in the most recent fiscal year, and no more than one percent of the amount raised by taxation may be administered by a single fund. Wages or salaries for full-time employees may be paid from the revolving fund only if the fund is also charged for all associated fringe benefits. Schedule A – A statement of revenues, expenditures and other financing sources, uses, changes in fund balance and certain balance sheet account information prepared annually by the accountant or auditor at the end of the fiscal year. This report is based on the fund account numbers and classifications contained in the UMAS manual. Short-Term Debt – Outstanding balance, at any given time, on amounts borrowed with a maturity date of 12 months or less. (See Note) Sick Leave Buyback – A community's obligation, under collective bargaining agreements or personnel board policies, to compensate retiring employees for the value of all, or a percentage of, sick time earned, but not used. Single Audit Act – For any community that expends $500,000 or more per year in federal grant awards, the Single Audit Act establishes audit guidelines that reduce to only one the number of annual audits to be completed to satisfy the requirements of the various federal agencies from which grants have been received. SOL – State Owned Land


Special Assessment – A betterment. Special Revenue Fund – Funds, established by statute only, containing revenues that are earmarked for and restricted to expenditures for specific purposes. Special revenue funds include receipts reserved for appropriation, revolving funds, grants from governmental entities, and gifts from private individuals or organizations. Stabilization Fund – A fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose (MGL Ch. 40 §5B). Communities may establish one or more stabilization funds for different purposes and may appropriate into them in any year an amount not to exceed ten percent of the prior year’s tax levy. The total of all stabilization fund balances shall not exceed ten percent of the community’s equalized value, and any interest shall be added to and become a part of the funds. A two-thirds vote of town meeting or city council is required to establish, amend the purpose of, or appropriate money into or from the stabilization fund. (See DOR IGR 04-201) Surplus Revenue – The amount by which cash, accounts receivable, and other assets exceed liabilities and reserves. Tailings – Unclaimed municipal funds, or a repository, referred to as a "tailings account," for the retention, until eventual disposition, of unclaimed funds in the custody of a municipality. Tailings might include unclaimed tax refunds, vendor payments yet to clear, overages on the community's commitment, etc. (MGL Ch. 200A) (Also known as Unclaimed Checks) Tax Increment Financing Exemption (TIF) – In accordance with MGL Chapter 59 §5(51), a property tax exemption negotiated between a community and a private developer, typically implemented over a period up to 20 years, and intended to encourage industrial/commercial development. (See DOR IGR 94-201) Tax Maps – Used to determine the location of the property, indicate the size and shape of each parcel, and show its relation to features that affect value. Maps also provide a complete inventory of all land parcels, helping to minimize the problems of omitted parcels

and duplication of listing. Also referred to as assessors' maps. Tax Rate – The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property. Tax Rate Recapitulation Sheet (Recap Sheet) – A document submitted by a city or town to the DOR in order to set a property tax rate. The recap sheet shows all estimated revenues and actual appropriations that affect the property tax rate. The recap sheet should be submitted to the DOR by September 1 (in order to issue the first-half semiannual property tax bills before October 1) or by December 1 (in order to issue the third quarterly property tax bills before January 1). Tax Title (or Tax Taking) – A collection procedure that secures a city or town's lien on real property and protects the municipality's right to payment of overdue property taxes. Otherwise, the lien expires if five years elapse from the January 1 assessment date and the property has been transferred to another owner. If amounts remain outstanding on the property after issuing a demand for overdue property taxes and after publishing a notice of tax taking, the collector may take the property for the city or town. After properly recording the instrument of taking, the collector transfers responsibility for collecting the overdue amounts to the treasurer. After six months, the treasurer may initiate foreclosure proceedings. Temporary Debt – Borrowing by a community in the form of notes and for a term of one year or less. (See Short-Term Debt) Triennial Certification – The Commissioner of Revenue, through the Bureau of Local Assessment, is required to review local assessed values every three years and to certify that they represent full and fair cash value (FFCV). Refer to MGL Ch. 40 §56 and Ch. 59 §2A(c). Will change through the Municipal Modernization Act. Trust Fund – In general, a fund for money donated or transferred to a municipality with specific instructions on its use. As custodian of trust funds, the treasurer invests and expends such funds as stipulated by trust


agreements, as directed by the commissioners of trust funds or by town meeting. Both principal and interest may be used if the trust is established as an expendable trust. For non- expendable trust funds, only interest (not principal) may be expended as directed.

Undesignated Fund Balance – Monies in the various government funds as of June 30 that are neither encumbered nor reserved, and are therefore available for expenditure once certified as part of free cash. (See Designated Fund Balance)

Unfunded Mandate – A requirement imposed by law, regulation or order without underlying financial support, thereby resulting in direct or indirect costs to the body made responsible for its implementation.

Unfunded OPEB Liability – This is the difference between the value assigned to the benefits (other than retirement) already earned by a municipality’s employees and the assets the local government will have on hand to meet these obligations. While there is no requirement in Massachusetts to fund this liability, GASB 45 requires that the dollar value of the unfunded OBEB liability is determined every two years. (See GASB 45; OPEB)

Unfunded Pension Liability – Unfunded pension liability is the difference between the value assigned to the retirement benefits already earned by a municipality’s employees and the assets the local retirement system will have on hand to meet these obligations. The dollar value of the unfunded pension liability is redetermined every three years and is driven by assumptions about interest rates at which a retirement system's assets will grow and the rate of future costs of living increases to pensioners. (See Pension Plan)

Uniform Municipal Accounting System (UMAS) – UMAS succeeds the so-called Statutory System (STAT) and is regarded as the professional standard for municipal accounting in Massachusetts. As a uniform system for local governments, it conforms to Generally Accepted Accounting Principles (GAAP), offers increased consistency in reporting and record keeping, as well as enhanced comparability of data among cities and towns.

User Charges/Fees – A municipal funding source where payment is collected from the user of a service to help defray the cost of providing the service. Note that any increases in the fees must satisfy the three tests set forth in the so called Emerson case. (See Emerson College v. Boston, 391 Mass. 415 (1984))

Valuation (100 percent) – The legal requirement that a community’s assessed value on property must reflect its market, or full and fair cash value.

Warrant – An authorization for an action. For example, a town meeting warrant establishes the matters that may be acted on by that town meeting. A treasury warrant authorizes the treasurer to pay specific bills. The assessors’ warrant authorizes the tax collector to collect taxes in the amount and from the persons listed, respectively.


town budget...website) adopted by the board in march 2016. we are projecting that the proposed town...

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