BudgetProposalFiscalYear2019
FiscalYear2019• BudgetandAnnualGoals• FiscalFY2019Overview• Revenue• PropertyValues• Expenses– GeneralFund• Expenses– EnterpriseFund
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Goals– Budget• DeliverCoreFunctions:
• Adequatelyprovidefordeliveryofcorefunctionsoftownandschool
• Advanceeffectivenessofoperations• Improveoperationalefficiency
• Structurallybalancedbudget• Expendituresfundedbyrecurringrevenue• Maintainadequateundesignatedfundbalances• Sensibleinvestmentinassets
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Goals– Budget• JustifiableandAppropriate
• Maintainstabletaxrate• Beadequatelyjustifiableincomparisontoappropriateeconomicindicatorsandcomparablecommunities
ThroughoutthepresentationitemsthatcorrespondtoBudgetGoalswillbeidentifiedwithanotationof(BG)
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Goals– Annual• SupportLong‐TermPlanningandGrowthManagementObjectives• Enhanceeconomicdevelopmentactivitiestoattract,supportandsustainappropriatelocaleconomicinvestment
• EnhanceFinancialStability• DevelopoptionstoresolveSewerEnterpriseFundchallenges• ResolvetheitemsassociatedwiththeLibrary,includingbecomingatowndepartment,andthelong‐termfacilityneeds
• ContinuetoImproveOrganizationalEfficiency• Prioritizeemployeesafetyandreductionofworkerscompensationcosts,takestepstobeginreducingthetown’sexperiencemodification
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Goals– Annual• IncreasePublicAwarenessandEngagement
• Continuetoimprovetowngeneratedcommunicationsandensuretheyareconcise,accurateandaccessibleforavarietyofaudiences
• AdvanceOn‐GoingInitiatives• Streamlineoperations,improveservicedelivery,increaseaccesstoonlineservices
ThroughoutthepresentationitemsthatcorrespondtoAnnualGoalswillbeidentifiedwithanotationof(AG)
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Long‐RangePictureBalancedeconomicgrowthwillbekeytostabilizingthetaxrateandretainingKittery’sstrongeconomicdiversityandidentity
Tax Levy Valuation (in thousands) Mil Rate
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ComparabilityFY19proposalisjustifiablecomparedtocomparablecommunities (BG)• KitteryexpensesareconsistentwithcommunitiesofsimilarpopulationinYorkCounty.
• Kitterypropertyvalueslagcomparatively,resultinginahighertaxperthousanddollarsofvaluation.
$5.00
$7.00
$9.00
$11.00
$13.00
$15.00
$17.00
$19.00
$0
$1,000
$2,000
$3,000
$4,000
Kennebunk Kittery OldOrchardBeach
Wells
TaxRate
Valuation
Millions
Valuation TaxRate
PropertyValues• $12MIncreaseinProjectedValue.Vacant,multi‐family,commercialincreased.Industrial,residentialportionofmixedusedecreased
• Valuationvs.Market~89%
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Property Type FY18 FY19 Variance%
VarianceVacant 21,927,100 24,037,700 $ 2,110,600 9.63%Condominium 91,078,200 97,693,100 $ 6,614,900 7.26%3‐Family 9,138,700 9,717,500 $ 578,800 6.33%Apartment 11,069,500 11,705,600 $ 636,100 5.75%Commercial $ 222,498,878 $ 226,444,578 $ 3,945,700 1.77%2‐Family 54,396,500 55,261,600 $ 865,100 1.59%Single Family 923,994,900 938,465,000 $ 14,470,100 1.57%Other 89,175,188 87,536,688 $ (1,638,500) ‐1.84%Exempt 72,464,900 72,162,200 $ (302,700) ‐0.42%Industrial 17,947,866 17,846,966 $ (100,900) ‐0.56%Mobile Home 46,134,000 45,027,100 $ (1,106,900) ‐2.40%Residential Mixed Use 4,883,122 4,466,822 $ (416,300) ‐8.53%
Property‐ Value
Median Home Listing May 20181# of
Homes for SaleKittery $400,000 71Kennebunk 299,000 130Wells 370,000 242Old Orchard Beach 255,000 110
• Valuegrowthiscriticaltothestabilizationofthetaxrate• Appropriateeconomicdevelopmentisneededtoreduceburdenonhomeowners• Commercial,manufacturingisdesirable
• Affordablehousingoptionswillbecriticalinthecomingyears
1. Source: Realtor.com 10
Comparability– EconIndicators
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
FY16 FY17 FY18 FY19
Budget vs. CPI & ECI
Municipal Budget CPI ECI
FY19proposalisjustifiablecomparedtoeconomicindicators(BG)
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FY19– GoalsReflectedinBudget• Recalibrate(BG)
• Removenon‐sewercostsfromthefund,applysewer‐relatedcoststothesewerfund• FixrevenueoffsetforTIFDistricts• Removenon‐capitalcostsfrompublicsafetyimpactfund• Continuetoaddressitemsthathistoricallyexceedthebudgettoreducetheneedforspendingfreezes
• Enhanceeconomicdevelopmentactivitiestoattract,supportandsustainappropriatelocaleconomicinvestment (AG)
• ReorganizationofPlanningDepartmentandinvestmentinplanningexpertise• Investmentinroadsthroughcapitalforinfrastructureneededtosupportdevelopment• AdvanceaFireDepartmenton‐callprogramtomakesurefireresponsecanmeettheneedsofthecommunity
• DevelopoptionstoresolveSewerEnterpriseFundchallenges(BG,AG)
• Showbudgetwithfulldebtserviceprincipalandannualcapitalneeds• AddressfutureLibraryfacilityneeds (BG,AG)
• Begindesignprocessforrenovationandexpansionproject• Streamlineoperations,improveservicedelivery,increaseaccesstoonlineservices(AG)
• Fundnewonlinepermittingsystem
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Revenue‐ Sources
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
ACTUALFY15
ACTUALFY16
ACTUALFY17
BUDGETEDFY18
PROPOSEDFY19
Property Tax Excise Tax Other Revenue
65%ofmunicipalrevenueisfromPropertyTax
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Revenue– PropertyTaxAllocation
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KITTERYSCHOOLDISTRICT~$0.62
MUNICIPAL&SCHOOLCAPITAL~$0.07
OTHER
COUNTYTAXES~$0.04MUNICIPALOPERATIONS&TIF~$0.27
Revenue‐ Summary• Overallgrowthinmunicipalnon‐propertytaxrevenue~$496,611~9.58%
• Recreationprogramsareindemand‐ $107,645 (BG)
• InterestIncomeduetonewinvestmentpolicy‐ $19,000(BG)
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REVENUE PROJECTIONS
Budget
FY18
Projected
FY19Variance
Recreation $874,355 $982,000 $107,645SW Fees & Fines $188,000 $180,000 ($8,000)Fort Foster Fees $183,000 $195,000 $12,000Harbormaster Fees & Fines $121,450 $135,140 $13,690Dispatch Income $91,350 $93,360 $2,010
Revenue– Non‐RecurringUsenon‐recurringrevenuejudiciouslyandfornon‐recurringexpenditures(BG)• FY19Revenueincludesproposed$243,978transferfromChannel22PEGFunds.Channel22PEGrevenueisrecurringinexcessofexpenditureshoweverproposedtransferisnotrecurring
• TransferwillbeusedtooffsetincreaseincapitalreservesandTIFreserveaccounts
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CHANNEL 22 PEG FY15 FY16 FY17Projected
FY18
Beginning Fund Balance $231,553 $297,866 $367,821 $432,002
Revenue $106,130 $110,333 $113,719 $109,357
Expense ($39,817) ($40,378) ($49,538) ($60,000)
NET $297,866 $367,821 $432,002 $481,359
Held for Capital Reserve ($200,000)Available for Transfer $281,359
Expenses– Capital• RightofWay– Increased$200,000(BG,AG)
• Fundedtocontinuetomeetannualpavementmanagementplanestimateswithouthavingtoseekbonding
• LibraryBuildingDesign‐ $100,000(AG)• Advancedesignintotheschematicphase
• KPAFacility– ($50,000)• SeekingfundingthroughJunewarrantarticle
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Expenses‐ Capital
$‐
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Vehicles & Equip Infrastructure Buildings Technology Open Space Regulatory Other
Capital by Category
ACTUAL FY16 ACTUAL FY17 ACTUAL FY18 PROPOSED FY1918
WagesTownwasstillinnegotiationsatthetimetheFY18budgetwasadopted.AsaresulttheFY18comparativewagesdonotreflectthecostoflivingormeritincreasesawarded.FY19reflectstwoyearsworthofcostoflivingandmeritincreases,resultinginanoverstatedannualprojectionofwageincreases.
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Expenses‐ Shared
• SHAREDEXPENSEShavebeencombinedintoonebudgetandincludeshealth,dental,FICA,retirement,workerscompandotherinsurances,andunemployment
• SharedExpensesincrease‐ $319,813• StateRetirementincrease$101,330.MainePERScontributionrequirementincreased0.6%forpublicsafetyand0.4%fornon‐publicsafety
• MedicalInsuranceincrease$115,130.Ratesincreased2%forunionand7%fornon‐union;includeschangesinbenefitplansandFTSecretaryinTMofficeandanticipatedFTinDPW
• RetiredEmployeeBenefitsincrease$77,459.Includesnewlyretiredandanticipatedretirements
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Expenses– Departments• Administration‐ $57,191increase
• Movedpart‐timeutilitybillingclerktoSewerFund– ($26,032)(BG,AG)
• Movedfull‐timeclerkfromSewerFund‐ $47,982• Triosoftwareupgradeandsupport‐ $4,000(AG)• MaintenanceofBldg/Groundsrecalibration‐ $4,500(AG)
• Debt&Interest‐ $21,127decrease
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Expenses– Departments• MiscellaneousExpenses‐ $47,008decrease
• ReducedSalaryandPositionAdjustment– ($70,000)• Anticipatesomeadjustmentsfornewhires,reclassifications,andaddressingparityamongpositions
• Electricitysavingsfromnewsupplycontracts– ($10,000)• Countytaxfinalpaymentforfiscalyearadj.endedresultinginanoveralldecrease– ($64,567)
• TIFFinancingPlancalculationcorrectedresultinginsignificantincrease‐ $64,099
• ComputerRepairincludesnewpermittingsoftwareandrecalibration– $17,000
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Expenses– Departments• Planning&CodeEnforcement‐ $42,487increase
• Reorganizeddepartment,broughtonDirectorofPlanning,fillingTownPlanner,leavingvacantAsstTownPlanner‐ $30,604(AG)
• Assessing‐ $1,671increase• PersonalPropertyrevaluationphasetwoinbudget(BG)
PlanningandCodewillbefocusedoninthecomingyear: RecodificationofTitle16 RezoningandpromotionofdevelopmentofformerBusinessPark
AffordableHousingInitiatives StateRoadredevelopmentMallCorridorredevelopment Achievingfair,consistent,predictableservicethroughstreamliningandtechnology
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Expenses– Departments• Fire‐ $28,004increase
• Includesanewon‐callprogramtopayfirefighterstobeinKitteryandreadytorespondduringtimesofyear,andonsuchdaysasismostchallengingtogetsufficientresponse‐ $18,144(AG)
• Machine&EquipmentMaintenanceincreaseforbuildingneeds‐$4,500
• Tires&Tubesincreaseforanticipatedreplacementneeds‐ $2,600
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Firefighters Per Call by Month
2016 2017
Minimumresponse staff
needed
Expenses– Departments• Police‐ $110,513increase
• Negotiatedphysicalfitnessstipendestimate‐ $5,400• Overtimeincreasecontinuingtoadjusttoreflectactualspendingtrends‐ $15,000 (BG)
• DEAOvertimedecreasingastownphasesoutofarrangement–($16,297)
• Outsidedetailsreconfiguredtoreflectonlythoseeventsorneedsrequestedbytownentities.“Paiddetails”orderedandpaidforbyprivateentitiesmovedtootherfundsaccount– ($1,220)(BG)
• Telephone&InternetincludescostspreviouslychargedtoPublicSafetyImpactforMitchellSchoolRadioTower‐ $1,800(BG)
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Expenses– Departments• PublicWorks‐ $93,323combinedincreaseHighway‐ $57,564increase
• IncludingFY18saltspending,theaverageannualcostis$139,500‐ $30,000(BG)
Parks&Beaches‐ $9,916increase• AdditionalseasonalemployeeatFortFostercontinuing,providesadditionalmaintenancesupport,monitoringandenforcementofrules
ResourceRecovery‐ $25,843increase• Transitionyear‐round“seasonal”positiontofull‐timeoperatorposition‐ $16,239(BG)
• Changesinrecyclingmarketarehavingrippleeffectsonwastedisposalservices‐ $11,000
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Expenses‐ Departments
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$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
FY15 FY16 FY17 FY18 FY19
Resource Recovery Revenue v. Expenses
Revenue Expense
*Includesbenefitcostsforpurposeofcomparison.
Expenses– Departments• KitteryCommunityCenter/Recreation‐ $28,966increase
• SavingsanticipatedfromretirementofDirector• IncludesFacilityMaintenanceSupervisoraddedinprioryear‐$3,320
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$0
$200
$400
$600
$800
$1,000
$1,200
FY15 Actual FY16 Actual FY17 Actual FY18 Budget FY19 Projected
Thou
sand
s
Recreation/KCC Revenue v. Expenses
Revenue Expense
*Includesbenefitcostsforpurposeofcomparison.
Expenses– Departments• Harbormaster– KitteryPortAuthority‐ $725decrease
• Reversedonpart‐timeapproach,addingbacktohelpprovidethecoverageneededatfacilitiesduringseason– $4,000
• Riggingincreasedtoreflectcostsoffloat‐in/float‐outandseasonalplacementofbuoys‐ $3,100.(AG)
• Seekingauthorizationfromvotersfor$450,000inunencumberedfundstoreplaceGovStpier.
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$100,000
$110,000
$120,000
$130,000
$140,000
FY15 Actual FY16 Actual FY17 Actual FY18 Budget FY19 Projected
Revenue Expense
*Includesbenefitcostsforpurposeofcomparison.
Expenses‐ Departments
• Library‐ $11,521increaseintownsubsidy• TownandLibrarycommitteetonegotiatetransitiontoatowndepartment
• CommunityAgencies‐ $2,600decrease• FundingthoseorganizationsthatmostdirectlyserveKitteryresidents
• AdultEducation‐ $6,175increase• Town’sportionofhealthinsurancecostincreases
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Expenses– EnterpriseFund• Revenueestimatedoncurrentrates;resultsinanunbalancedbudget.Varianceis($448,998)
• Sewer‐ $165,912increase• Debtreducedforamortizationofolderbonds‐ ($80,191)• Shiftingfromrelyingonone‐timefundsforcapitalexpenditures‐$200,000(BG,AG)
• Swappedtaxcollectorpositionandutilitybillingclerkpositionstoreflectactualfunctions– ($19,666)(AG)
• OtherProfessionalServicesincreasedforcracksealingandpavementmgmt ‐ $6,300
• SludgeRemovalcontractualexpensesincreasing‐ $9,355
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WrapUp• Totaltownportionofpropertytaxlevyincrease$351,662
• Budgetis$142,975below LD‐1limit• Projectedmilrateis$16.99• Projectedannualincreaseis$161basedontheaveragehome,orapproximatelya2.9%increase.• Averagetaxincreaseisconsistentwith3.1%ECI
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Questions
ThankyoutotheTownDepartmentHeadsandstafffortheireffortsindevelopingtheFY2019
budget.
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