City DepartmentsPresented by: City Manager Robert M. Belmore

School DepartmentPresented by: Superintendent Jeni Mosca

Fiscal Year 2015-2016Proposed Budget

Budget Presentation April 6, 2014

IntroductionMy Thanks to all City Departments: department heads and staff for their efforts during the

entire budget process, and to Finance Director Smith for his assistance in developing this proposed budget in accordance with the City Charter.

Presentation’s focus aimed at providing an overview to the proposed City Budget & School Department Budget

FY2015-2016 budget has been prepared in accordance with Section 7.4.1 of City Charter “Limitation on Budget Increase” (a.k.a Tax Cap):

Real Estate tax revenue is limited to a factor no more than the change in the National CPI – Urban which is 1.6% for the calendar year 2014

» Plus, when annual changes in real estate values occur, real estate taxes may be further increased by applying the prior year’s tax rate to the net increase in new construction.

Annual Budget - Article VII and Article X of the City Charter City Manager must present budget to Mayor and Council by March 15. City Manager reviewed budget requests with department heads and key staff, adjusted

departmental requests while maintaining the objective of keeping the budget efficiently funded to maintain core City services.

School Board’s adopted Budget from Superintendent’s proposal. 2

Tax Cap - Summary

» FY15 Amount raise by taxes $ 25,918,596

» Add: Amount of increase for CPI (1.6%) $ 414,697

» Amount of increase for Net Construction Value $ 249,120 » Amount allowed to be raised by taxes FY16 $ 26,582,413

» Estimated amount to be raised by taxes with proposed FY16 budget $

26,471,807

» Estimated Amount Under Tax Cap $ 110,6073

Analysis of Tax CapEstimated amount to be raised by property taxes

Estimated amount to be raised by Property Taxes City School Local School State County

  Portion Portion Portion Portion Total

FY 16 Proposed Gross Budget 16,811,095 23,007,141 2,003,328 2,434,955 44,256,519

Less: Estimated Revenues 8,334,421 9,758,691 18,093,112

Add: Overlay 42,000 42,000

War Service Credits 266,400       266,400

Estimated Amount to be Raised by Property Taxes 8,785,074 13,248,450 2,003,328 2,434,955 26,471,807

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Budget Notes City Departments-General Fund Budget

Gross G/F budget reflects a decrease of $1,065,696. However, this is due to a supplemental appropriation of $1,313,888 for infrastructure improvements. Excluding this one-time appropriation, the year over year operating change is and increase of $248,192 (2%).

Proposed budget includes one change in personnel and that is an increase from part-time to a full-time Code Compliance Officer.

In an effort to meet budget limitation, a number of capital items are not included in the proposed budget that may otherwise have been recommended:

Reduced amount for road resurfacing by $164,000 Reduced amount for sidewalk CRF by $5,000 Reduced amount for facilities maintenance reserve by $5,000 Eliminated a Police Cruiser (2 new cruisers were requested in CIP) Eliminated request for Thermal Imaging Camera for FD Eliminated request for a City Hall backup generator Eliminated request for a DPW facility backup generator Eliminated request for engineering for future downtown infrastructure improvements. Eliminated request for improvements to Constitutional Way, estimated at $445,000. 5

Budget NotesContinued

Salaries and Benefits increase of $253,334. Increase is broken down as follows: Salaries and wages increase = $57,768 Health/Dental increase = $123,854 NH State Retirement increase = $55,251 Other payroll benefits (FICA, W/C, etc) increase = $16,461

Non-Tax Revenues remain flat with little-to-no growth.

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2015-2016 Proposed BudgetRevenue Estimates

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Category 14-15 Budget 15-16 Proposed

Taxes & Penalties 25,902,196 26,485,407

Licenses, Permits, Fees 1,515,625 1,585,625

Intergovernmental 859,331 859,331

Education 10,890,082 10,074,831

Other Revenue 2,461,343 1,047,455

Total Revenue 41,628,577 40,052,649

City General Fund RevenueCity Revenue = $11,920,870

Property Tax73%

Non Property Tax27%

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Property Tax revenue continues to be the main source of support for City appropriations.

Non-tax revenues continue to remain level & show no increase.

City Non-Property Tax Revenue

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Revenue Amount $ Change % Change

Other Taxes (late fees, penalties & interest)

280,000 30,000 12%

Licenses, Permits, Fees 1,585,625 70,000 4.6%

Intergovernmental 859,331 0 0%

Income – from Departments402,705 0 0%

Other 259,750 (100,000) (28%)

Transfers In - Use of Fund Balance

385,000 (1,313,888) (77%)

Total 3,772,411 (1,313,888) (26%)

2015-2016 Proposed BudgetBudget StructureAppropriations

Fund General Fund

Major Program Areas/Departments School County

Proprietary Funds Water Sewer Solid Waste (pay-per-bag program)

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Summary of Proposed Expenditures General Fund

City31%

School63%

County6%

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City Appropriations Departments – Major Program Areas

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Elected LeadershipMayor/Council, Civic Promotions, Community Support-Outside Agencies

City ManagementCity Manager’s Office, Legal services for all City Departments

Finance and AdministrationFinance, MIS, City Clerk, Tax Collector,Library, Human Services (Welfare)

Development ServicesPlanning, Assessing, Building & CodesEconomic Development, Recreation

Public SafetyPolice & Fire

Public Works & UtilitiesPW Administration, Street Maintenance,Solid Waste, Cemetery, Engineering

Other ExpensesDebt Service, Capital Leases,Superfund Monitoring, Contingency

School

County

Capital OutlayCIP and other one-time appropriations

Enterprise FundsWater, Wastewater, Pay-Per-Bag

City AppropriationsDepartments – Major Program Areas

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Department FY2016 Proposed Increase/(Decrease)

Elected Leadership $ 124,311 $ 1,300

City Management $ 469,446 $ 19,147

Finance & Admin $1,164,492 $ 26,900

Development Serv. $ 976,255 $ 76,356

Public Safety (Police & Fire) $5,597,951 $ 164,374

Public Works $2,088,565 $ (156,962)

Debt Service/Leases $1,304,852 $ 71,826

Capital $ 336,054 $ 80,297

Other/Contingency $ 186,159 $(1,348,934)

Enterprise Funds $4,562,010 $ (16,590)

General Fund Appropriations

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Elected Leadership

1%City Management

4%

Finance & Admin9%

Development Serv8%

Police28%Fire

17%

Public Works17%

Debt Service/Leases11%

Capital3%

Other/Contin2%

Other appropriations are Contingency, transfer to capital reserve fund, transfer to debt service fund, and superfund landfill monitoring cost.

For the purpose of this slide, Police and Fire are represented separately, however in the City budget they make up the Public Safety department and total 45% of the total budget.

General Fund AppropriationsBy Category

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Salaries & Benefits67%Utilities

1%

Contracted Services

4%

Other Operating12%

Debt Service11%

Capital4% Transfers Out

1%

Utilities are Telephone, Heat, Electric

Capital is the Capital outlay budget plus $150,000 for road resurfacing projects.

General Fund Personnel

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City Management 3 employees

3% Finance & Admin, 13 employees, 14%

Development Serv8 employees

9%

Police, 35 employees, 39%

Fire, 18 employees, 20%

Public Works13 employees

14%

Statistics do not include elected officials, call firefighters or seasonal employees. Seasonal employees are budgeted for recreation, snow removal, crossing guard , and call firefighters.

Figures above are only G/F, and do not included 6 F/T employees recommended in water department, and 5 F/T employees at the wastewater treatment facility, and 1 F/T employee split between water and wastewater.

Full Time G/F Employees = 83Part Time G/F Employees = 7

2015-2016 Proposed BudgetProposed Capital Improvements Capital OutlayNot yet acted on by Council

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City Hall Network Server Upgrade $ 19,868

Fire SCBA Replacement (Breathing apparatus 3rd year of 4 year program) $ 39,630

Dept. of Public Works Plow Truck (308) down-payment on lease $ 20,820

Maple Street Culvert Replacement $155,000

Replace Portable Radios – Fire (1st year of 4 year program) $ 30,640

Buffumsville Road Drainage Improvements $ 30,000

Snow Equipment – DPW (sander) $ 5,125

Salmon Falls Road Bridge Engineering$ 5,000

(City Council has approved 1-new Police Cruiser NTE $30,000)

2015-2016 Proposed BudgetEstimated Tax RateSet by State Department of Revenue Administration in Fall

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14/15 Actual

15/16 Estimated Change

City 10.35 10.54 .19

School - Local 15.54 15.89 .35

School - State 2.40 2.45 .05

County 2.85 2.92 .07

Total 31.14 31.80 .66

Property Tax Rate based on estimated assessed valuation of $833,500,000

Approximately $833,500 in expenditures represents $1 on the tax rate, ($83,500 = .10cents)

2015-2016 Proposed BudgetEstimated Tax Rate$31.80 per $1,000

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City33%

School59%

County8%

2015-2016 Proposed BudgetEstimated Property Tax Bill

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Average Residential Assessment = $191,000

Actual FY15 Tax

EstimateFY16 Tax $ Change

City $ 1,977 $ 2,013 $ 36

School $ 3,427 $ 3,503 $ 76

County $ 544 $ 558 $ 14

Total Property Tax Bill $ 5,948 $ 6,074 $ 126

2015-2016 Enterprise FundsWastewater FundProposed FY 2016 Budget = $2,137,499

» Recommendation is no change to utility rates effective July 1 2015: Anticipated revenues for FY 2016 are $2,557,000 Estimated FY 2016 operating surplus is approx. $420,000. Current rates are $5.50 per 100 cubic feet of use. An average bill, using 9,000 cubic feet per year – State DES avg. home, is

$535.

» Budget highlights Decrease in overall budget is .3%. (three tenths of one percent) Budget includes treatment facility with 5 full time staff and one shared staff

(utility billing clerk). CIP Projects – Sewer line replacement with the Maple Street culvert project

and a tractor replacement at the Wastewater Treatment Facility.

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2015-2016 Enterprise FundsWater FundProposed FY 2016 Budget = $2,039,211

» Recommendation is no change to utility rates effective July 1 2015: Anticipated revenues for FY 2016 are $2,345,000. Estimated operating surplus in FY2016 is $306,000. Current rates are $4.11 per 100 cubic feet of use. An average bill, using 9,000 cubic feet per year – State DES avg. home, is

$400.

» Budget highlights Proposed budget decrease of .7% (seven tenths of one percent) CIP Projects – Replace the raw water pumps at the Water Treatment

Facility and purchase a new vehicle for Water Distribution Budget includes treatment facility with 3 full time staff, distribution with 3

full time staff, and one shared staff (utility billing clerk).

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Somersworth School Department FY 2015-2016

Budget Information

CPI Index 1.6% for 2015-2016 school year. We can increase our current budget by about $331,628

(estimate)

CPI Index

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DESCRIPTION FY 2015 FY 2016 CHANGE

SALARIES 11,123,795 11,271,105 147,310

HEALTH INSURANCE 3,241,579 3,893,231 651,652

FICA 851,249 862,396 11,147

NH RETIREMENT 1,430,561 1,582,325 151,764

OTHER (DENTAL, LIFE, DISABILITY 276,904 279,895 2,991

SAU 56 ASSESSMENT 925,735 925,056 (679)

TECHNOLOGY 587,726 578,870 (8,856)

RESOURCE OFFICER 69,667 72,259 2,592

PT/OT CONTRACTED SERVICES 249,169 344,169 95,000

TRANSPORTATION - REGULAR 479,322 484,256 4,934

SPED ED OUT-OF-DISTRICT SERVICES 1,626,876 1,615,505 (11,371)

DEBT SERVICE 2,012,549 2,040,044 27,495

TOTAL PROJECTED APPROPRIATION INCREASE 1,073,979

TOTAL APPROPRIATION 25,810,232 26,884,211 1,073,979

ESTIMATED DECREASE IN ROLLINSFORD TUITION REVENUE 808,987

ESTIMATED DECREASE IN CASTASTROPHIC AID REVENUE 6,264

ESTIMATED DECREASE IN REVENUE 815,251

NET SCHOOL DEPARTMENT OPERATING BUDGET INCREASE 1,889,230

FY 2015-2016 BUDGET CHANGES

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OBLIGATED FY 2015-2016 APPROPORIATIONS TO MEET TAX CAP:

1. SALARIES - based on bargaining agreements $ 147,310

2. RETIREMENT BENEFIT - based on bargaining agreements & rate increase $ 151,764

3. FICA BENEFIT - based on bargaining agreements $ 11,147

4. DEBT SERVICES – bond principal and interest $ 27,495

SCHOOL DEPARTMENT FY 2015-2016 OPERATING BUDGET – to meet tax cap $ 337,716

ALLOWABLE BUDGET INCREASE BASED ON TAX CAP $ 331, 628

CONTRACTUAL OBLIGATIONS AND REVENUE REDUCTIONS BEYOND TAX CAP LIMITATIONS

1. HEALTH INSURANCE $ 651,652

2. OTHER BENEFITS (Dental, Life, Disability) $ 2,991

3. RESOURCE OFFICER $ 2,592

4. PT/OT CONTRACTED SERVICES $ 95,000

5. TRANSPORTATION – REGULAR $ 4,934

6. ESTIMATED DECREASE IN REVENUE $ 815,251

TOTAL REDUCTIONS NEEDED TO MEET TAX CAP BUDGET $ 1,572,420

APPROPRIATIONS RECAP

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PROJECTED ACTUAL NEEDED APPROPORIATIONS:

SCHOOL DEPARTMENT FY 2014-2015 OPERATING BUDGET $25,810,232

Add: FY 2015-2016 PROJECTED APPROPRIATION INCREASE $ 1,073,979

SCHOOL DEPARTMENT FY 2015-2016 OPERATING BUDGET $ 26,884,211

ALLOWABLE BUDGET BASED ON TAX CAP

SCHOOL DEPARTMENT FY 2014-2015 OPERATING BUDGET $25,810,232

Less: Estimated Decrease in Revenue ($ 815,251)

Add: Tax Cap Allowance (estimate) $ 331, 628

SCHOOL DEPARTMENT FY 2015-2016 OPERATING BUDGET (Based on Tax Cap) $25,326,609

SCHOOL DEPARTMENT FY 2015-2016 OPERATING BUDGET CHANGE ($ 483,623)

REQUIRED REDUCTIONS TO MEET TAX CAP BUDGET

SCHOOL DEPARTMENT ACTUAL FY 2015-2016 OPERATING BUDGET $ 26,884,211

SCHOOL DEPARTMENT FY 2015-2016 OPERATING BUDGET (Based on Tax Cap) $25,326,609

SCHOOL DEPARTMENT FY 2015-2016 OPERATING BUDGET

TOTAL REDUCTIONS NEEDED TO MEET TAX CAP BUDGET $ 1,557,602

SUMMARY RECAP

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PROPOSED REDUCTIONS: CIP $ 80,000 Technology $ 80,000 SPED ESL $ 71,000 Transportation –Regular $ 62,000 Maintenance - Building $ 40,000 Maintenance Contingency $ 20,000 NWEA Testing $ 20,000 SHS Contracted Services $ 15,000 Elementary Head Teacher Stipends $ 12,151

Sub-Total Proposed Reductions $ 400,151

WHAT NEXT????

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REDUCTIONS CONTINUED $ 400,151

PROPOSED REDUCTIONS: Substitutes $ 55,274 SPED - Contracted Services $ 43,500 Maple Wood - Supplies, Print Media, Postage $ 10,000 Idlehurst - Supplies, Print Media, computer repair , etc.$ 10,000 SMS - Supplies, Print Media $ 20,000 SHS – Supplies, Print Media $ 20,000

$ 158,774

Sub-Total Proposed Reductions $ 558,925

WHAT NEXT????

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REDUCTIONS CONTINUED $ 558,925

PROPOSED REDUCTIONS: Teacher Retirees (5) $ 353,133 SAU Assessment $ 24,000 Substitutes – Elementary School $ 20,000 School Board Supplies – Finger Printing $ 5,000

$ 402,133

Sub-Total Proposed Reductions $ 961, 058

WHAT NEXT????

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REDUCTIONS - CONTINUED $ 961,058

PROPOSED REDUCTIONS: Copiers $ 10,000 Welding $ 60,000 Business $ 92,000 1.0 Custodian $ 66,000 5.0 Para’s – Not replacing those left $ 145,044 Para’s – 7.5 to 7 Hours $ 18,000 Sec. 40 to 37.5 Hours a Week $ 25,500 MS Reading Specialist $ 97,000 Elementary Reading Specialist $ 83,000

$ 596,544

TOTAL PROPOSED REDUCTIONS $ 1,557,602

WHAT NEXT????

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1.0 ESL5.0 TEACHER RETIREES1.0 Welding1.0 Business1.0 Custodian5.0 PARAPROFESSIONALS1.0 MS Reading Specialist1.0 Elementary Reading Specialist

16.0 Total Proposed Staff Reductions

TOTAL STAFF REDUCTIONS

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OBLIGATED FY 2015-2016 APPROPORIATIONS TO MEET TAX CAP:

1. SALARIES - based on bargaining agreements $ 147,310

2. RETIREMENT BENEFIT - based on bargaining agreements & rate increase $ 151,764

3. FICA BENEFIT - based on bargaining agreements $ 11,147

4. DEBT SERVICES – bond principal and interest $ 27,495

SCHOOL DEPARTMENT FY 2015-2016 OPERATING BUDGET – to meet tax cap $ 337,716

ALLOWABLE BUDGET INCREASE BASED ON TAX CAP $ 331, 628

CONTRACTUAL OBLIGATIONS AND REVENUE REDUCTIONS BEYOND TAX CAP LIMITATIONS

1. HEALTH INSURANCE $ 651,652

2. OTHER BENEFITS (Dental, Life, Disability) $ 2,991

3. RESOURCE OFFICER $ 2,592

4. PT/OT CONTRACTED SERVICES $ 95,000

5. TRANSPORTATION – REGULAR $ 4,934

6. ESTIMATED DECREASE IN REVENUE $ 815,251

TOTAL REDUCTIONS NEEDED TO MEET TAX CAP BUDGET $ 1,572,420

APPROPRIATIONS RECAP

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