FY13 Financial Trends and Budget Projections Power Point

8/2/2019 FY13 Financial Trends and Budget Projections Power Point

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Fiscal Trends and Budget Projectionsfor the

Fiscal Year 2013 BudgetMayor David J. Narkewicz March 1, 2012

City of Northampton, MA


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CITY OF NORTHAMPTON, MASSACHUSETTS

FISCAL YEAR 2012

CONSOLIDATED RESOURCES / APPROPRIATION SUMMARY

AS VOTED BY CITY COUNCIL and AMENDED BY COUNCIL ON 12/1 AND 12/15/2011

SOLID COMBINED

GENERAL SEWER WATER WASTE FUNDS

FUND FUND FUND FUND TOTAL

BUDGET BUDGET BUDGET BUDGET BUDGET(Memo Only)

REVENUE SUMMARY:

Taxes 46,399,761 - - - 46,399,761

Charges for Services 7,031,775 5,268,904 6,205,951 3,292,000 21,798,630

Licenses & Permits 1,006,170 - - - 1,006,170

Fines & Forfeits 1,063,400 - - - 1,063,400

State Revenue - Cherry Sheet 15,971,789 - - - 15,971,789

Federal Revenue 277,504 - - - 277,504

Inter-fund Operating Transfers 4,865,504 - - - 4,865,504

Capital Reserve - 280,465 875,425 (53,452) 1,102,438

Miscellaneous 330,213 31,009 30,000 245,000 636,222TOTAL REVENUES 76,946,116 5,580,378 7,111,376 3,483,548 93,121,418

EXPENDITURE SUMMARY:

Appropriations:

General Government 3,791,830 - - - 3,791,830

Public Safety 11,631,512 - - - 11,631,512

Education 29,701,701 - - - 29,701,701

Public Works 3,156,588 - - - 3,156,588

Human Services 1,019,027 - - - 1,019,027

Culture & Recreation 1,560,779 - - - 1,560,779

Debt Service 5,515,417 949,143 2,678,202 281,700 9,424,462

Employee Benefits 14,959,705 - - - 14,959,705

Insurance and Reserves 726,648 - - - 726,648

Capital Program 175,000 60,000 60,000 752,146 1,047,146

Enterprise Funds - 2,815,075 3,692,614 2,086,268 8,593,957

Reserve Abatements & Exemptions 400,000 - - - 400,000

State & County Assessments 3,024,170 - - - 3,024,170

Cherry Sheet Offsets 1,251,821 - - - 1,251,821

Other Amounts to be Raised 31,918 - - - 31,918

Interfund Transfers - 1,756,160 680,560 363,434 2,800,154Subtotal Appropriations 76,946,116 5,580,378 7,111,376 3,483,548 93,121,4183/1/2012 2


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REVENUE SOURCES for General and Enterprise Funds

Total for FY12 = $93,121,418

Taxes

49.8%

Charges for Services

23.4%

Licenses & Permits

1.1%

Fines &

Forfeits

1.1%

State Revenue -

Cherry Sheet

17.2%

FederalRevenue

0.3%

Interfund Operating

Transfers

5.2%

Capital Reserve

1.2%

Miscellaneous

0.7%

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EXPENDITURES for General and Enterprise Funds

Total for FY12 = $93,121,418General

Government

4.1%

Public Safety

12.5%

Education

31.9%

Public Works

3.4%Human Services

1.1%

Culture & Recreation

1.7%

Debt Service

10.1%

Employee Benefits

16.1%

Insurance and Reserves

0.8%

Capital Program

1.1%

Enterprise Funds

9.2%

Reserve Abatements &

Exemptions

0.4%

State &

County

Assessments

3.2%

Cherry Sheet Offsets

1.3%

Other Amounts to

be Raised

0.0%

Interfund Transfers

3.0%

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Overview of revenue sources for the

General Fund.

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REVENUES for the General Fund

Total FY12 = $76,946,116

Taxes

60.3%

Charges for Services

9.1%

Licenses &Permits

1.3%

Fines &

Forfeits

1.4%

State Revenue - CherrySheet

20.8%

Federal Revenue

0.4% Interfund

Operating

Transfers

6.3%

Miscellaneous

0.4%

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Revenue sources and trends that are most affected by economic conditions and/or

have the largest dollar impact on the General Fund Budget:

Property Taxes approx $43.2 m

State Aid (not including MSBA and offsets) approx $11.7 m

Inter-fund Operating Transfers approx $2.8 m

Motor Vehicle Excise approx $2.1 mParking Meter/Garage approx $1.3 m

Hotel/Motel & Meals Taxes approx. $1.0 m

Parking Ticket Fines approx $680 k

New Growth approx $650 k

Inspection Fees approx $520 kInterest on Investments approx $120 k

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Property Tax Revenue Trend FY03 to FY12Source: Mass Department of Revenue Municipal Data Bank

Formula Property Tax Revenues (Constant Dollars)

Fisca l Year 2003 2004 2005 2006 2007 2008 2009 2010* 2011 2012

Residential Proper ty Tax Levy $ 22,234,474 $ 23,858,305 $ 25,258,916 $ 26,561,687 $ 27,789,052 $ 28,942,969 $ 29,856,224 $ 32,494,563 $ 33,469,556 $ 34,667,579

Commercia l Propert y Tax Levy $ 4,635,353 $ 4,886,676 $ 4,792,902 $ 4,466,692 $ 4,976,264 $ 4,984,671 $ 5,253,743 $ 5,707,666 $ 5,850,598 $ 5,999,515

Industr ial Property Tax Levy $ 1,109,428 $ 1,033,609 $ 1,003,082 $ 925,551 $ 954,198 $ 977,913 $ 1,020,745 $ 1,061,927 $ 1,137,507 $ 1,313,405

Personal Property Tax Levy $ 1,039,024 $ 735,286 $ 721,871 $ 689,579 $ 693,850 $ 862,616 $ 1,066,659 $ 1,102,381 $ 1,179,342 $ 1,245,463

Propert y Tax Total $ 29,018,279 $ 30,513,876 $ 31,776,771 $ 32,643,509 $ 34,413,364 $ 35,768,169 $ 37,197,371 $ 40,366,537 $ 41,637,003 $ 43,225,962

Less - Excluded Debt $ 2,224,367 $ 2,251,168 $ 2,031,985 $ 1,380,541 $ 1,569,870 $ 1,457,740 $ 1,342,770 $ 1,220,649 $ 1,104,422 $ 1,008,478

Net Property Tax Revenue $ 26,793,912 $ 28,262,708 $ 29,744,786 $ 31,262,968 $ 32,843,494 $ 34,310,429 $ 35,854,601 $ 39,145,888 $ 40,532,581 $ 42,217,484

CPI - U, Base Period = 1982-1984 203.9 209.5 216.4 223.1 227.4 235.4 233.5 237.3

CPI - U, Adjustment for constant

dollars (2003 dollars)100.0% 97.3% 94.2% 91.4% 89.7% 86.6% 87.3% 85.9%

Property Tax Revenue (constant

dollars)$ 26,793,912 $ 27,507,237 $ 28,026,626 $ 28,572,475 $ 29,449,377 $ 29,719,186 $ 31,309,435 $ 33,636,100

Percent Change - Property Tax

Revenue (constant dollars)100.0% 2.7% 1.9% 1.9% 3.1% 0.9% 5.4% 7.4%

* A $2,000,000 override was approved by voters in June 2009 that was added to the tax levy for FY2010

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

2003 2004 2005 2006 2007 2008 2009 2010* 2011 2012

Actual Constant

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Uncollected Property Taxes Trend FY03 to FY11Source: City of Northampton End of Year Budget Data

Formula Uncollected Taxes as a Percentage of Net Proper ty Tax Levy

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Residential Propert y Tax Levy $ 22,234,474 $ 23,858,305 $ 25,258,916 $ 26,561,687 $ 27,789,052 $ 28,942,969 $ 29,856,224 $ 32,494,563 $ 33,469,556 $ 34,667,579

Commercial Property Tax Levy $ 4,635,353 $ 4,886,676 $ 4,792,902 $ 4,466,692 $ 4,976,264 $ 4,984,671 $ 5,253,743 $ 5,707,666 $ 5,850,598 $ 5,999,515

Industr ial Proper ty Tax Levy $ 1,109,428 $ 1,033,609 $ 1,003,082 $ 925,551 $ 954,198 $ 977,913 $ 1,020,745 $ 1,061,927 $ 1,137,507 $ 1,313,405

Persona l Property Tax Levy $ 1,039,024 $ 735,286 $ 721,871 $ 689,579 $ 693,850 $ 862,616 $ 1,066,659 $ 1,102,381 $ 1,179,342 $ 1,245,463

Propert y Tax Total $ 29,018,279 $ 30,513,876 $ 31,776,771 $ 32,643,509 $ 34,413,364 $ 35,768,169 $ 37,197,371 $ 40,366,537 $ 41,637,003 $ 43,225,962

Reserved for Abatements &

Exemptions$ 440,648 $ 457,710 $ 449,983 $ 421,286 $ 450,330 $ 384,577 $ 540,444 $ 412,448 $ 388,923 $ 393,978

Net Proper ty Tax Levy $ 28,577,631 $ 30,056,166 $ 31,326,788 $ 32,222,223 $ 33,963,034 $ 35,383,592 $ 36,656,927 $ 39,954,089 $ 41,248,080 $ 42,831,984

Uncollec ted Taxes as of June 30 $ 634,150 $ 647,021 $ 520,095 $ 724,017 $ 877,863 $ 873,123 $ 605,336 $ 706,531

Uncollected Taxes as a Percentage

of Net Property Tax Levy0.00% 2.11% 2.07% 1.61% 2.13% 2.48% 2.38% 1.52% 1.71% 0.00%

2.98%

2.11% 2.07%

1.61%

2.13%

2.48%2.38%

1.52%

1.71%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2003 2004 2005 2006 2007 2008 2009 2010* 2011

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FY12 Selected Tax Rates in Neighboring Communitiesper $1,000 of valuation

Source: Mass Department of Revenue Municipal Data Bank

19.68 19.7419.01 18.85

17.25 16.98

13.35 13.27

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

LONGMEADOW AMHERST GREENFIELD EAST

LONGMEADOW

WEST

SPRINGFIELD

LUDLOW NORTHAMPTON EASTHAMPTON

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FY12 Excess Levy Capacity in Neighboring CommunitiesSource: Mass Department of Revenue Municipal Data Bank

2,515,620

593,884

140,52379,861

15,758 10,260 7,347 6,938$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

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FY12 Average Property ValuationSource: Mass Department of Revenue Municipal Data Bank

352,613

318,789304,422

253,656

228,772214,267 212,778

184,865

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000State Average = $358,586

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FY12 Average Single Family Property Tax Bill in Neighboring CommunitiesSource: Mass Department of Revenue Municipal Data Bank

$6,939

$6,293

$4,781

$4,064$3,696 $3,613 $3,514

$3,036

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

StateAverage in FY11 = $4,537

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State Aid Trend FY03 to FY13Source: Mass Department of Revenue Municipal Data Bank

10000000

11000000

12000000

13000000

14000000

15000000

16000000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

State Aid (actual) Adjusted State Aid (constant dollars)

Formula Net State Aid / Cherry Sheet Receipts minus Cherry Sheet Charges (not including offsets)

Fiscal Year 2003 2004 2005 2006 2007 2008 2009* 2010 2011 2012** 2013***

State Aid (actua l) $ 15,477,606 $ 12,955,067 $ 12,850,984 $ 13,472,634 $ 14,833,599 $ 15,219,591 $ 13,872,891 $ 13,513,223 $ 12,047,764 $ 11,698,895 $ 11,520,757

CPI - U, Base Period = 1982-1984 203.9 209.5 216.4 223.1 227.4 235.4 233.5 234.5 235.5

CPI - U, Adjustment for constant dollars (2002 dollars ) 100% 97% 94% 91% 90% 87% 87% 87% 87%

Adjusted State Aid (const ant dollar s) $ 15,477,606 $ 12,608,774 $ 12,108,667 $ 12,313,178 $ 13,300,663 $ 13,182,985 $ 12,114,272 $ 11,749,877 $ 10,431,164 $ - $ -

* FY09 state aid reflects mid-year "9C Cuts" of $533,060

**FY12 state aid does not include the supplemental appropriation released in October 2011 of $268,800***FY13 state aid is an estimate based on the Governor's Budget Proposal3/1/2012 14


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State Aid as a Percentage of Operating Revenues Trend FY03 to FY12Source: Mass Department of Revenue Municipal Data Bank

Formula State Aid / Operating Revenues

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Gross Operating

Revenue $ 66,712,201 $ 71,340,504 $ 70,633,201 $ 76,365,337 $ 83,664,117 $ 87,286,459 $ 90,065,639 $ 91,303,543 $ 91,673,464 $ 93,121,418

Less - Excluded

Debt$ 2,224,367 $ 2,251,168 $ 2,031,985 $ 1,380,541 $ 1,569,870 $ 1,457,740 $ 1,342,770 $ 1,220,649 $ 1,104,422 $ 1,008,478

Net Operating

Revenue$ 64,487,834 $ 69,089,336 $ 68,601,216 $ 74,984,796 $ 82,094,247 $ 85,828,719 $ 88,722,869 $ 90,082,894 $ 90,569,042 $ 92,112,940

State Aid $ 15,477,606 $ 12,955,067 $ 12,850,984 $ 13,472,634 $ 14,833,599 $ 15,219,591 $ 13,872,891 $ 13,513,223 $ 12,047,764 $ 11,698,895

State Aid as a %

of Operating

Revenue

24.0% 18.8% 18.7% 18.0% 18.1% 17.7% 15.6% 15.0% 13.3% 12.7%

S

24.0%

18.8% 18.7% 18.0% 18.1% 17.7%15.6% 15.0%

13.3% 12.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Fiscal Year

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Inter-fund Operating Transfers from Water, Sewer and Solid Waste Enterprise FundsFY03 to FY12

Source: Northampton End of Year Budget Data

Formula Interfund Operating Transfers

Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Interfund Operating Transfers 2,393,069 2,442,330 2,491,223 2,562,681 2,589,948 2,667,142 2,773,719 2,962,521 2,990,513 2,883,592 2,800,153

Change from previous year 49,261 48,893 71,458 27,267 77,194 106,577 188,802 27,992 (106,921) (83,439)

Perecentage change from previous year 2.06 2.00 2.87 1.06 2.98 4.00 6.81 0.94 (3.58) (2.89)

$2,000,000

$2,200,000

$2,400,000

$2,600,000

$2,800,000

$3,000,000

$3,200,000

$3,400,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Motor Vehicle Excise Tax Trend 2003 to 2011Source: Northampton Year End Budget Data

Formula Motor Vehicle Excise

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010* 2011

Motor Vehicle Excise 2,214,602 2,154,231 2,230,637 2,276,569 2,077,680 2,204,379 2,091,330 2,063,029 2,173,355

Change from previous year 90,971 (60,371) 76,406 45,932 (198,889) 126,700 (113,049) (28,301) 110,326

Perecentage change from previous year 4.28 (2.73) 3.55 2.06 (8.74) 6.10 (5.13) (1.35) 5.35

$2,000,000

$2,050,000

$2,100,000

$2,150,000

$2,200,000

$2,250,000

$2,300,000

2003 2004 2005 2006 2007 2008 2009 2010* 2011

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Parking Meter and Garage Revenue Trends FY03 to FY11Source: Northampton End of Year Budget Data

Formula Parking Meter and Garage Revenues

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

Parking Meter and Garage Revenues to General Fund 1,103,333 1,001,147 1,136,991 1,216,026 1,333,602 1,382,232 1,374,126 1,349,701 1,393,875

Change from previous year 20,699 (102,186) 135,843 79,036 117,576 48,630 (8,106) (24,426) 44,174

Perecentage change from previous year 1.91 (9.26) 13.57 6.95 9.67 3.65 (0.59) (1.78) 3.27

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

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Hotel, Motel and Meals Tax Revenue Trends FY03 to FY11Source: Northampton End of Year Budget Data

Formula Hotel, Motel and Meals Tax Revenues

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

Hotel-Motel Taxes 313,224 336,309 329,332 359,388 368,770 352,264 334,406 407,727 481,230

Meals Taxes 389,700 549,624

Total 313,224 336,309 329,332 359,388 368,770 352,264 334,406 797,427 1,030,854

Change from Previous Year (52,567) 23,085 (6,977) 30,056 9,382 (16,506) (17,858) 463,021 233,427

Percentage Change from Previous Year -14.37 7.37 -2.07 9.13 2.61 -4.48 -5.07 138.46 29.27

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

Meals Taxes Hotel-Motel Taxes

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New Growth Revenue Trend FY03 to FY12Source: Mass Department of Revenue Municipal Data Bank

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Formula New Growth

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010* 2011 2012

New Growth 737,153 809,930 772,535 766,958 786,917 671,636 685,701 375,927 420,416 653,585

Total Change in New

Growth from Previous Year 384,494 72,777 (37,395) (5,577) 19,959 (115,281) 14,065 (309,774) 44,489 233,169

Percent Change in New

Growth from previous year 52.15 9.87 (4.62) (0.72) 2.60 (14.65) 2.09 (45.18) 11.83 55.46

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Total FY12 New Growth Applied to the Levy Limit in Neighboring CommunitiesSource: Mass Department of Revenue Municipal Data Bank

1,493,132

654,501

516,715473,730

393,785352,207

197,525

115,613

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

WEST

SPRINGFIELD

NORTHAMPTON GREENFIELD AMHERST LUDLOW EAST

LONGMEADOW

LONGMEADOW EASTHAMPTON

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Inspection Permit Revenue Trends FY03 to FY11Source: Northampton End of Year Budget Data

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

Permits - Weights & Measures Permits - Wire Inspector Permits - Plumbing Inspector Permits - Building Inspector

Formula Permits Revenues - Building, Plumbing, Wiring and Weights and Measures

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

Permits - Building Inspector 244,548 266,239 350,306 247,814 357,892 242,533 200,964 348,789 289,164

Permits - Plumbing Inspector 54,702 63,770 70,202 77,485 68,553 95,057 83,584 82,820 97,330

Permits - Wire Inspector 85,320 100,752 93,878 142,996 98,768 123,050 100,624 132,439 104,376

Permits - Weights & Measures 16,294 37,478 30,700 31,711 29,035 29,444 25,427 26,417 29,352

Total Permit Revenues 400,864 468,239 545,086 500,005 554,248 490,083 410,599 590,465 520,222

Change from Previous Year 108,848 67,375 76,847 (45,081) 54,243 (64,165) (79,484) 179,866 (70,243)

Percentage Change from Previous Year 37.27 16.81 16.41 (8.27) 10.85 (11.58) (16.22) 43.81 (11.90)3/1/2012 23


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Interest on Investments Revenue Trends FY03 to FY11Source: Northampton End of Year Budget Data

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

Formula Investment Income

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

Investment Income 240,203 200,166 341,974 556,430 623,188 458,686 210,258 119,975 123,556

Change from previous year (160,624) (40,037) 141,808 214,456 66,758 (164,502) (248,428) (90,283) 3,581

Perecentage change from previous year (40.07) (16.67) 70.84 62.71 12.00 (26.40) (54.16) (42.94) 2.98

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Overview of expenditures in the

General fund..

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Expense areas and trends that we will look at either because they are variable,

affected by economic/market conditions, and/or have the largest dollar impact on

the General Fund Budget include:

Education largest functional area of the budget

Personnel Costs/Wages - largest part of the GF budget - $40 m

Public Safety second largest functional area of budget

Employee Health Insurance

Other Employee Benefits

Retirement Assessment

Debt Service

Insurance WC, Prop, GL, Auto

Snow and Ice and Veterans Benefits

School Choice & Charter Sending Tuition

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EXPENDITURES for the General Fund

Total FY12 = $76,946,116

General Government

4.9%

Public Safety

15.1%

Education

38.6%

Public

Works

4.1%Human Services

1.3%

Culture & Recreation

2.0%

Debt Service

7.2%

Employee Benefits

19.4%

Insurance and

Reserves

0.9%

Capital

Program0.2%

Reserve Abatements &

Exemptions

0.5%

State & County

Assessments

3.9%

Cherry Sheet Offsets

1.6%

Other

Amounts to be

Raised

0.0%

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The largest programmatic expenditure in the general fund is education for

Northampton Public Schools and Smith Vocational and Agricultural School

Education was 53% of

the General Fund

Budget in FY11.

Included in that total is

the appropriation, as

well as debt service andcapital costs for school

department equipment

and buildings, and

employee benefits, such

as health insurance andretirement for school

staff .

General

Government

5%

Public Safety

15%

Education

53%

Public Works

6%

Human Services

2%

Culture and

Recreation

2%

Debt

2%

Employee

Benefits

6%

Unclassified

1%

Intergovernmenta

l Assessments

4%

Retirement

4%

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General Fund Salaries and Wages FY06 FY11Source: Northampton Schedule A Fiscal Years 2006 - 2011

Salaries and Wages 2006 2007 2008 2009 2010 2011

General Government 2,041,370 2,132,080 2,314,803 2,315,450 2,182,887 2,319,367

Public Safety 7,544,331 7,981,919 8,522,881 8,742,575 8,985,841 9,720,673

Education 21,088,908 22,491,976 23,189,131 22,973,759 23,137,287 23,415,088

Public Works 2,105,249 2,155,034 2,278,222 2,344,008 2,219,730 2,372,790

Human Services 306,092 321,980 335,503 352,392 391,492 439,459

Culture and Recreation 1,124,903 1,180,579 1,451,734 1,503,124 1,475,360 1,526,717

Total 34,210,853 36,263,568 38,092,274 38,231,308 38,392,597 39,794,094

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

2006 2007 2008 2009 2010 2011

Culture and Recreation

Human Services

Public Works

General Government

Public Safety

Education

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Salaries and Wages by Major Functional Area FY06 FY11Source: Northampton Schedule A Fiscal Years 2006-2011

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2006 2007 2008 2009 2010 2011

Education

Public Safety

Public Works

General Government

Culture and Recreation

Human Services

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Retirement Assessment FY03 to FY13Source: Northampton End of Year Budget Data

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Pensions and Annuities Non Contributory Contributory Retirement System

Formula Retirement Assessment

Retirement Assessment FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Contributory Retirement System 2,541,628 2,668,462 2,992,234 3,294,187 3,409,475 3,535,959 3,665,262 3,842,388 3,989,570 4,198,899 4,359,384

Pensions and Annuities Non Contributory 76,393 77,075 83,874 83,855 70,896 63,331 36,731 35,624 36,617 37,690 40,000

Total Employee Health Insurance 2,618,021 2,745,537 3,076,108 3,378,042 3,480,371 3,599,290 3,701,993 3,878,012 4,026,187 4,236,589 4,399,384

Change from previous year 105,817 127,517 330,571 301,934 102,328 118,920 102,702 176,019 148,175 210,402 162,795

Perecentage change from previous year 4.21% 4.87% 12.04% 9.82% 3.03% 3.42% 2.85% 4.75% 3.82% 5.23% 3.84%

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Other Employee Benefits FY03 to FY11Source: Northampton End of Year Budget Data

Formula Other Employee Benefits

Fiscal Year FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011

Employee Medicare and SS 352,669 340,544 371,670 408,308 455,905 490,599 517,948 522,517 550,514

Unused Earned Leave 193,394 436,689 160,487 219,325 236,772 196,808 167,774 174,351 162,279

Life Insurance 42,839 47,397 45,206 46,456 44,881 40,982 41,476 41,610 38,533

588,902 824,630 577,364 674,089 737,557 728,390 727,198 738,478 751,326

Change from previous year (65,146) 235,727 (247,266) 96,725 63,469 (9,168) (1,192) 11,279 12,848

Perecentage change from previous year -9.96 40.03 -29.99 16.75 9.42 -1.24 -0.16 1.55 1.74

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011

Employee

Medicare and

SS

Unused Earned

Leave

Life Insurance

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Debt Service FY03 to FY15Source: Northampton Debt Schedule

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Debt Excluded 1,819,615 2,363,253 1,703,420 1,929,605 1,659,870 1,507,740 1,392,696 1,220,649 1,104,423 962,960 1,640,306 1,429,386 1,278,331

MSBA Reimbursement 3,011,981 3,011,981 3,011,981 3,011,981 3,132,884 3,132,884 3,132,884 3,132,884 2,237,230 2,237,230 2,237,230 2,237,230 2,237,230

Other Sources 105,350 96,961 95,878 126,807 527,081 573,668 431,871 774,879 812,525 1,218,274 1,463,550 1,288,848 1,110,039

Levy Supported in Budget 13,148 516,607 462,008 721,186 428,340 1,104,619 1,249,780 1,384,647 1,499,228 1,555,053 1,831,042 1,838,960 1,580,274

Total Debt Service 4,950,094 5,988,802 5,273,287 5,789,579 5,748,175 6,318,911 6,207,231 6,513,059 5,653,406 5,973,517 7,172,128 6,794,423 6,205,874

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Other Sources MSBA Reimbursement Debt Excluded Levy Supported in Budget

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School Choice and Charter Sending Tuition FY03 to FY13Source: Northampton End of Year Budget Data

Formula School Choice and Charter School Sending Tuition


School Choice Sending Tuition 0 0 0 371,002 363,405 333,531 418,667 506,906 445,791 516,906 467,464

Charter School Sending Tuition 815,171 1,017,486 1,203,393 1,262,463 1,310,509 1,413,309 1,432,011 1,467,450 1,718,969 1,808,773 2,170,255

Total 815,171 1,017,486 1,203,393 1,633,465 1,673,914 1,746,840 1,850,678 1,974,356 2,164,760 2,325,679 2,637,719

Change from previous year (56,652) 202,315 185,907 430,072 40,449 72,926 103,838 123,678 190,404 160,919 312,040

Perecentage change from previous

year -6.50 24.82 18.27 35.74 2.48 4.36 5.94 6.68 9.64 7.43 13.42

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000


Charter School Sending Tuition School Choice Sending Tuition

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Insurance Workers Compensation, Police and Fire Accident, General Liability,

Property and Auto and Public Officials Liability Insurance FY03 to FY11Source: Northampton End of Year Budget Data

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011

Workers Compensation

Police and Fire Accident

General Liability

Property and Auto Insurance

Public Officials Liability

Formula Insurances

Fiscal Year FY 2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011

Workers Compensation 235,418 239,297 203,543 220,990 269,798 316,060 356,033 190,647 186,560

Police and Fire Accident 64,820 61,191 27,691 30,460 33,506 44,563 49,019 107,097 93,492

General Liability 44,000 51,347 29,425 32,752 30,000 44,849 48,581 40,700 43,500

Property and Auto Insurance 100,381 118,301 127,850 145,224 152,044 174,776 172,116 187,994 184,619

Public Officials Liability 75,000 53,848 86,000 82,393 86,470 73,832 84,888 64,473 51,291

Total 519,619 523,984 474,509 511,819 571,818 654,081 710,637 590,912 559,462

Change from previous year 131,563 4,365 (49,475) 37,310 59,999 82,263 56,557 (119,726) (31,450)

Perecentage change from previous year 33.90 0.84 -9.44 7.86 11.72 14.39 8.65 -16.85 -5.32

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Snow and Ice and Veterans Benefits FY03 to FY11Source: Northampton End of Year Budget Data

Formula Other Employee Benefits

Fiscal Year FY2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011

Snow and Ice 586,903 566,550 629,233 542,135 452,894 691,017 667,077 486,403 811,540

Veterans Benefits 40,226 58,261 150,446 247,682 323,133 398,486 545,359 624,156

Total 586,903 606,776 687,494 692,581 700,576 1,014,150 1,065,563 1,031,762 1,435,696

Change from previous year 251,422 19,873 80,718 5,087 7,995 313,574 51,413 (33,801) 403,934

Perecentage change from previous year 74.9 3.39 13.30 0.74 1.15 44.76 5.07 -3.17 39.15

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

FY2003 FY 2004 FY 2005 FY 2006 FY2007 FY2008 FY2009 FY2010 FY2011

Snow and Ice Veterans Benefits

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Reserves Free Cash, Stabilization and Capital Stabilization FY03 FY12Source: Mass Department of Revenue Municipal Data Bank

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

FY12FY11FY10FY09FY08FY07FY06FY05FY04FY03

GENERAL FUND

FREE CASH

GENERAL FUND STABILIZATION

CAPITAL

STABILIZATION

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Financial Flexibility for Northampton Comparison with Neighboring Communities


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Financial Flexibility for Northampton Comparison with Neighboring CommunitiesSource: Mass Department of Revenue Municipal Data Bank

Financial Flexibility Compared with Neighboring Communities

DOR Code MunicipalityPopulation 2010

Estimate FY11 Total Budget

FY11

Excess LevyCapacity

7/1/10 FreeCash

6/30/10

StabilizationFund

FY11 AvailableResources

Available

Resources as a

percent ofBudget

Moody's

Bond Rating

as of July2011

$ Change in

Free CashFY06-FY11

LT Debt Long-

term Debt

Outstanding as

Percent ofEQV

325 West Springfield 28,391 94,514,810 1,243,443 3,722,671 7,567,469 12,533,583 13.00% Aa3 2,012,379 1.12%

085 East Longmeadow 15,720 51,721,145 1,024,154 3,118,484 1,753,163 5,895,801 11.00% Aa2 1,242,695 1.76%

008 Amherst 37,819 72,456,981 426,947 3,300,986 1,421,401 5,149,334 7.00% Aa2 1,084,051 0.31%

161 Ludlow 21,103 56,182,229 823,546 984,493 2,142,993 3,951,032 7.00% Aa3 -1,967,093 1.14%

159 Longmeadow 15,784 56,130,477 19,312 1,455,225 2,016,344 3,490,881 6.00% Aa2 186,424 0.56%

114 Greenfield 17,456 49,863,768 8,942 824,693 1,343,925 2,177,560 4.00% A1 240,714 1.64%

214 Northampton 28,549 91,673,464 23,439 1,052,466 848,444 1,924,349 2.00% Aa2 -1,487,124 1.89%

087 Easthampton 16,053 37,683,764 13,138 565,039 1,124,311 1,702,488 5.00% A1 -586,367 0.50%

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

West Springfield East

Longmeadow

Amherst Ludlow Longmeadow Greenfield Northampton Easthampton

6/30/10 Stabilization Fund 7/1/10 Free Cash

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So what does all this information say about the financial trends affecting

Northampton? Favorable trends include

Consistently strong property tax collections

Relatively low tax rate compared with comparable, neighboring

communities

Property values remain high, even during the economic downturn

Average single family property tax bill, at $4,064 is below the state

average of $4,537

Certain revenue streams on the upswing including: Motor Vehicle Excise

Parking meter and Garage Revenues

Hotel/Motel and Meals Taxes

Excellent bond rating and favorable interest rates resulting from that

rating

Insurance Costs (Workers Comp, Police and Fire Accident, General andPublic Officials Liability, Property and Auto Insurance) are either stable or

declining

Excellent health insurance cost containment, consistently below industry

averages

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So what does all this information say about the financial trends affecting

Northampton? Unfavorable trends include

State aid reductions have sharply limited the citys ability to fund budgets and build

reserves in the last four fiscal years, FY08 to FY12, the city has seen a reduction in

state aid of $3.5 million and FY13 will see another reduction

State aid, as a percentage of operating revenues, declined from 24% to 12.7% of

operating revenues

No excess levy capacity taxing to the maximum allowed under Prop 2

The Inter-fund operating transfers declining with closure of landfill

New growth is expected to decline in FY13 Interest on investments has declined markedly since 2007, and has been flat for three

fiscal years

Employee health insurance, which has been relatively stable for the last four years due

to plan design changes, may increase by 12% or $1.1 million

Increases in fixed costs such as debt service, retirement system assessment and

medicare Charges for tuition for school choice and charter school students continue to rise

Veterans benefits, which are reimbursed by the state at 75%, continue to increase

Low reserves free cash, stabilization and capital stabilization have been depleted to

offset losses in state aid.

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What are the Budget Assumptions for FY13?

On the revenue sideMarch 1, 2012

Revenue Estimate

Estimated

Additional Revenue

Prop 2 1/2 increase 1,055,588

Estimated New Growth 475,000

Total Real Estate and Personal Property Increase 1,530,588

State Aid (178,138)

Preliminary Increases to Local Receipts:

Motor Vehicle Excise 35,000

Hotel/Motel Tax 10,000

Meals Tax 75,000

Interest on Tax titles 10,000

Parking Meter Revenues 150,000

Collector Fees 20,000

Municipal Liens 10,000

Total Preliminary Local Receipt Increases: 310,000

Revenue Estimate

Estimated

Additional Revenue

Preliminary Decreases to Local Receipts:

Cemetery Income (5,000)

City Clerk Misc (10,000)

Dept. Rev. - BOH (5,000)

Liquor Licenses (5,000)

Building Permits (100,000)

Plumbing Permits (20,000)

Wiring Permits (2,000)

Fines and Forfeits (13,000)

Parking Tickets (100,000)

Medicaid Receipts (40,000)

PVTA Reimbursement (20,000)

Solid Waste Enterprise Indirect (175,000)

Total Preliminary Local Receipt Decreases: (495,000)

PRELIMINARY ESTIMATE OF NEW REVENUES 1,167,450

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What are the Budget Assumptions for FY13?

On the expenditure sideMarch 1, 2012

Expenditure Estimate

Estimated Increases

in Expenditures Additional Information

Retirement Assessment 160,485 know number from Retirement Board

Employee Health Insurance 1,128,800 12% renewal quote

Levy Supported Debt 275,988 additional debt service

Additional Custodial Staff for Police Station 37,000 1.5 fte

Historically Underfunded Accounts:

Fire OT 130,000 brings us to 100% of 3 year average actual costs

Veterans 180,000 brings us to 100% of 3 year average actual costs

Snow and Ice 100,000 brings us to 30% of 3 year average actual costs

Legal 33,000 brings us to 30% of 3 year average actual costs

Unemployment 25,000 brings us to 30% of 3 year average actual costs

PRELIMINARY ESTIMATE OF NEW EXPENDITURES 2,070,273

PRELIMINARY ESTIMATE OF NEW REVENUES 1,167,450

PRELIMINARY SHORTFALL: 902,823

Expenses still to calculate:

collective bargaining settlements including step increases

department OM increases

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Documents

FY13 Financial Trends and Budget Projections Power Point