Post on 21-May-2020
Town of
Salem, NH Presentation of Town Manager’s 2015 Proposed
Budget
August 25, 2014 Keith R. Hickey
Town Manager
Board of Selectmen Budget Instructions Information
• Develop a budget with a 1% tax rate
increase. The increase would change the
Town portion of the tax rate from the 2014
rate of $7.12 per thousand to $7.19 per
thousand. This tax rate increase allows for
an additional $273,224 to be expended.
• Budget should include a road program budget
of $4.75 million, a 3% increase over the 2014
road budget amount or an additional
$138,450.
Town Manager’s Budget…… Information
• Meets the Board of Selectmen’s instructions of
a Town tax rate of $7.19 per thousand.
• Includes the 3% increase ($138,450) in the
road program appropriation and the first year
payment of the 2014 bridge bond ($180,450).
• Includes a 6.9% increase in health insurance.
• More adequately funds winter weather
operations.
• Maintains the water and sewer rates at $3.45
and $3.25 per hundred cubic feet respectively.
Town Manager’s Budget Includes Information
• Reductions in staffing in Recreation, Fire and Community Development impacting the level of services currently provided.
• Funds several capital purchases needed to address infrastructure and rolling stock needs.
• Funds the fifth and final year of the water meter replacement program.
• An additional $100,000 budgeted for winter maintenance. A total of $750,000 is proposed.
Known Impacts to 2015 Budget Projected Projected
Description Increase/(Decrease) Description Increase/(Decrease)
Assumed Increases/Decreases 2014 One Time Expenditures
Gas/Diesel 5,000$ Engineering- MS4 Permit (206,250)$
Electricity 174,814$ Finance- Contract OPEB (4,350)$
Telephone (5,000)$ Elections- Postage Redistricting (10,852)$
Heath Insurance 322,455$ New Debt Impact 105,810$
Retirement 23,488$ Lease Savings (29,348)$
Property Liability Insurance 130,370$ Fire- (2) Cardiac Monitors (68,405)$
Workers Comp. Insurance (62,341)$ Fire - WIFI (3,000)$
Townwide Valuation Update 209,000$ Fire - Voice Recorder (9,500)$
2015 Road Program 138,450$ Fire- Oil Separator System (9,500)$
2014 Bridge Bond Payment 180,450$
New Building Software 20,000$ Capital Project Cost Tax Rate Impact only
Munismart Module Savings (6,302)$ Dam Repair (27,700)$
PC Tech Upgrades 240,569$ (110,000)$
Sub-total 1,130,384$ Fire Vehicles 1,925,000$ -$
Underground Tank 677,865$ (266,565)$
DPW Trackless (57,000)$
Total (717,335)$
Net Impact 413,049$
Assumptions Used to Develop 2015 Budget
% Over % Change
Budget Rate Amount In Budget
Gasoline 3.02$ /unit 3.05$ /unit 0.99% * 3.02$ 0.00%
Diesel 3.12$ /unit 3.13$ /unit 0.32% * 3.12$ 0.00%
Oil 3.07$ /unit 3.27$ /unit* 6.51% * 3.27$ 6.51%
Propane 2.50$ /unit 2.88$ /unit 15.20% 2.88$ 15.20%
Nat Gas 1.20$ /unit 1.27$ /unit 5.83% 1.27$ 5.83%
Health 6.90% 7.10%
Dental 3.00% 3.00%
Workers' Comp -10.00% 0.00%
Unemployment 112.00$ /person 110.00$ /person 1.82% 110.00$ -1.79%
Until 7/15 % Inc (7/1/2015)
Retirement-Employees 10.77% 11.17% 3.71%
Retirement-Fire 27.74% 29.16% 5.12%
Retirement-Police 25.30% 26.38% 4.27%
* Fixed price 2014-2015
2015 Proposed
2014 Budgeted 2014 Actual/Ave
Breakdown of General Fund Personnel, Operating and Capital Budget
Proposed $ %
2014 2015 Change Change
Total Salaries Including Overtime $17,497,213 $17,126,065 ($371,148) -2.12%
Retirement 3,305,135 3,328,623 $23,488 0.71%
Health Care 4,714,644 5,037,210 $322,566 6.84%
Dental 185,044 191,084 $6,040 3.26%
Workers Compensation 647,112 584,771 ($62,341) -9.63%
Total Personnel Benefits $26,349,148 $26,267,753 ($81,395) -0.31%
Utilities 1,028,781 1,134,012 $105,231 10.23%
Other Operating 5,954,965 6,545,826 $590,861 9.92%
Total Operating Other 6,983,746 7,679,838 $696,092 9.97%
Capital 1,215,761 1,043,525 (172,236) -14.17%
Total General Fund Budget $34,548,655 $34,991,116 $442,461 1.28%
Changes to Town Personnel from 2012 to 2014
2012 ACTION TAKEN POLICE
Prosecutor Position Eliminated Records Clerk Position Eliminated ASSESSING
Full time Clerk II Reduction in hours to 25 COMMUNITY DEVELOPMENT
Full time Clerk III Reduction in hours to 25 IT SYSTEMS
Director Position Eliminated /Department Outsourced Programmer/Analyst Position Eliminated /Department Outsourced Programmer/Analyst Position Eliminated /Department Outsourced Programmer/Analyst Position Eliminated /Department Outsourced FINANCE
Purchasing Agent Reduction in hours to 25 DPW Custodian-Town Hall Position Eliminated/Position Outsourced Fleet Mechanic Position Eliminated Notes: The cost of three School Resource Officers were shifted to the Salem School District. Police Department Community eliminated based on staffing cuts.
Changes to Town Personnel from 2012 to 2014
2013 ACTION TAKEN COMMUNITY DEVELOPMENT Chief Building Official Position Eliminated Part Time Plumbing Inspector Added Part Time Clerk III Position Increased from Part to Full Time DPW Fleet Mechanic Position Eliminated 2014 SENIOR CENTER Increase PT Support from 24 to 29 hours Added by Budget Committee COLLECTIONS
Increase PT hours by 5.5 hours Added WATER/SEWER
Meter Reader Position Eliminated
Proposed Staffing Changes in the 2015 Budget
Recreation
• Elimination of the Entire Recreation Department
Fire
• Elimination of 4 Firefighters, one from each of the four
groups
• Replace Firefighter/Mechanic position with a Civilian
Mechanic
Community Development
• Reduce Administrative Secretary to 21.5 hours per week
• Increase Plumbing Inspector to 28 hours per week
Senior Center
• Eliminate the Custodian position and replace with cleaning service
Why Weren’t There Any Reductions in Sworn Police
Officers
The top 4 agencies compared below are most similar in size and demographics such as
population, staffing, etc. The following is a breakdown:
Agency Sworn Full Time Civilian (excluding Dispatchers, Prosecutors, ACO)
Salem 62 5
Portsmouth 61 8 FT/ 4 PT
Derry 56 6 FT / 3 PT
Londonderry 70 7
0
500
1,000
1,500
2,000
2,500
SALEM DERRY HAMPTON PORTSMOUTH LONDONDERRY SEABROOK
NU
MB
ER O
F C
RIM
ES
COMMUNITIES
2013 Rockingham County FBI-UCR Arrest Stats
Park A &CrimesDrugs
Assaults
DWI
Shoplifting
Comparison of the Funds Appropriated for Reconstruction/
Mill and Overlay Annual
Total Road Appropriation
2010 2011 2012 2013 2014 Miles Per Road Mile
Bow 350,000 350,000 509,000 500,000 350,000 81.964 4,270.17$
Hanover 575,208 501,220 643,634 563,294 581,115 94.107 6,175.05$
Hooksett 353,202 321,531 326,112 215,719 333,535 74.064 4,503.34$
Hudson 400,000 340,000 290,000 790,000 790,000 147.909 5,341.12$
Merrimack 825,000 825,000 825,000 825,000 825,000 170.311 4,844.08$
Salem 2,910,000 5,939,314 5,157,000 4,615,000 4,615,000 184.235 25,049.53$
Derry 1,557,983 1,222,443 1,446,837 1,452,266 1,574,733 163.559 9,627.92$
Windham 397,067 886,711 633,000 635,964 759,200 95.902 7,916.41$
Conway 741,000 675,000 741,000 719,000 741,000 82.541 8,977.36$
Durham 129,472 493,917 530,487 309,733 283,431 59.764 4,742.50$
Newington 282,554 265,000 265,000 275,000 200,000 19.006 10,522.99$
Atkinson 168,000 253,400 194,000 278,000 318,700 47.833 6,662.76$
Goffstown 2,224,414 2,009,067 851,450 1,361,994 823,940 130.164 6,330.01$
Barrington 425,000 600,000 857,000 925,000 925,000 68.326 13,538.04$
Laconia 1,075,000 850,000 1,350,000 1,300,000 1,300,000 87.881 14,792.73$
Weare 400,000 400,000 400,000 400,000 450,000 111.456 4,037.47$
Belmont 750,000 600,000 600,000 650,000 750,000 67.038 11,187.68$
Gilford 650,000 575,000 575,000 575,000 750,000 88.515 8,473.14$
Auburn 950,000 950,000 950,000 950,000 950,000 61.435 15,463.50$
Allenstown 74,000 74,000 74,000 74,000 74,000 22.750 3,252.75$
Average cost per Road Mile Excluding Salem 7,929.42$
Appropriation for Salem Using Average Cost Per Mile and Salem's Total Road Mile 1,460,877.16$
Budget Savings (3,154,122.84)$
Tax Rate Impact (0.82)$
History of Road Reconstruction/Mill and Overlay Appropriation
1990-2015
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Annual Appro
priation
Calendar Year
Salem's Annual Cost Appropriation for Road Reconstruction/Mill and Overlay 1990-2015
2006
$4.0 million bond issued
Unassigned Fund Balance Usage and
Year End Balance Estimate Unassigned Fund Balance1/1/14 8,862,234 9.00%
Excess Revenues over Estimates 300,000
Primex Premium Holiday Credit 147,933
2014 Bridge Reimbursements 1,830,000
Fire Vehicles (1,925,000)
Fund 1st year 2013 Bridge Bond (149,689)
Employee Separation (350,000)
Tax Stabilization (800,000)
PC Replacement Program (130,569)
Unexpended Appropriations 75,000
Estimated Unassigned Fund Balance 12/31/14 7,859,909 8.50%
Excess Revenues over Estimates 300,000
Employee Separation (350,000)
Tax Stabilization (800,000)
Fund 2nd year 2013 Bridge Bond (145,855) (1,295,855)
Unexpended Appropriations 75,000
Estimated Unassigned Fund Balance 12/31/15 6,939,054 7.50%
Board of Selectmen Unassigned Fund Balance Goal
6% 5,358,540
Town of Salem, NH – Proposed Use of Fund Balance
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Use of Unassigned Fund Balance
Information
REVIEW OF PROPOSED
APPROPRIATIONS
Town of Salem, NH – Town Manager Recommendation
2015 Proposed Warrant Articles
2014 2015 Town Manager Increase %
All Funds Budget Recommended (Decrease)
General Fund 31,942,735$ 32,557,432$ 614,697$ 1.92%
Capital 1,215,761 1,043,525 (172,236) -14.17%
Sewer Fund 2,558,628 2,616,940 58,312 2.28%
Water Fund 3,255,114 3,521,962 266,848 8.20%
Sub - Total 38,972,238$ 39,739,859$ 767,621$ 1.97%
Potential Warrant Articles 11,201,666$ 7,001,450$ (4,200,216)$ -37.50%
Library 1,390,159$ 1,390,159$ -$ 0.00%
Total 51,564,063$ 48,131,468$ (3,432,595)$ -6.66%
Note: For budgetary purposes the Library Budget has been level funded. The Library Trustees will submit their
budget request to the Budget Committee at a later date.
Article 1
Water Imp-No Policy, Old Rockingham & Main St
Article 1 includes water improvements on North Policy
and Old Rockingham and Main Street. The estimated
cost breakdown is:
WTP-North Policy $ 1,300,000
Old Rockingham Rd $ 661,000
Main St – No Policy to Sullivan $ 37,000
Warrant Article Total $ 1,998,000
The projects above are recommended to be bonded. Work on Old Rockingham Road
and Main Street are associated with the 2016 road program. The project costs
are proposed to be partially offset by Water DBA of $400,000
Article 2
2015 Town Operating Budget
Article 2 requests the funding of the General, Water and Sewer
operating budgets. Those budget requests are shown below:
2014 2015 Town Manager Increase %
All Funds Budget Recommended (Decrease)
General Fund 31,942,735$ 32,557,432$ 614,697$ 1.92%
Capital 1,215,761 1,043,525 (172,236) -14.17%
Sewer Fund 2,558,628 2,616,940 58,312 2.28%
Water Fund 3,255,114 3,521,962 266,848 8.20%
Sub - Total 38,972,238$ 39,739,859$ 767,621$ 1.97%
Potential Warrant Articles 11,201,666$ 7,001,450$ (4,200,216)$ -37.50%
Library 1,390,159$ 1,390,159$ -$ 0.00%
Total 51,564,063$ 48,131,468$ (3,432,595)$ -6.66%
Note: For budgetary purposes the Library Budget has been level funded. The Library Trustees will submit their
budget request to the Budget Committee at a later date.
Town Property Tax Calculation
2014 2015
Town Operating Budget ( Less Warrant Articles) $38,972,238 $39,739,859
GF Warrant Articles $11,201,666 $7,001,450
Library $1,390,159 $1,390,159
Estimated Revenues (24,798,368) (20,827,258)
Sub-Total $26,765,695 $27,304,210
War Credits/Overlay $813,500 $801,500
Total to be raised by taxes 27,579,195 28,105,710
Assessed Valuation Estimate $3,867,825,879 $3,903,206,367
Total Estimated Tax Rate $7.12 $7.19
Current Rate $7.02 $7.12
Tax Rate Increase $0.10 $0.07
Proposed Tax Rate % Decrease 1.00%
Capital Items Considered for Inclusion in the
Proposed 2015 Budget
Description Fund Amount Requested Amount Funded Recomm. Defer
Town Wide Valuation General 245,000 209,000 36,000
Sidewalk Maintenance - 2015 Road Program General 462,195 - 462,195
Roadway Stabilization Program General 1,030,000 1,030,000
Ford F350 4x4 Pickup-P80 Replacement General 43,169 - 43,169
Ford F450 Dump - 1 ton-D83 Replacement General 50,710 50,710
Freightliner FL80 Dump D12 General 181,325 181,325
Freightliner M2 dump-D21 General 181,325 181,325
Road Reconstruction & Engineering General 3,723,450 3,723,450
Depot Intersection Design General 196,154 196,154
SFD Ambulance General 260,000 260,000
SFD Engine General 646,180 - 646,180
SFD Forestry 1 Utility/Plow Truck General 45,850 45,850
SFD Operations Vehicle General 43,054 43,054
SFD Shift Commander Vehicle General 43,054 - 43,054
Technology Replacement and Improvements General 97,982 97,982
Master Plan Update General 50,000 - 50,000
Howard Street Water Tank Painting Water 450,000 450,000
Arlington Pond Transmission Pipe Chemistry Water 65,000 65,000
Water Imp - No Policy, Old Rockingham Rd & Main St Water 698,000 698,000
Water Improvements- New 16" Line WTP to Old Rockingham Rd Water 1,300,000 1,300,000
Water MP 2-5 South Broadway- S B-Way to Lawrence Rd Water 34,000 34,000
Manor Pkway – Water System Eng & Bid Docs Water 118,450 118,450
Total 9,964,898 8,684,300 1,280,598
Budget Cuts to Achieve
1% Property Tax Rate Increase
Department Description Amt
Community Development CART 47,000
Community Development Admin Sec reduced hours 34,393
Planning Master Plan 50,000
Police Replacement Pay 198,804 level funded
Police Overtime 81,700 level funded
Fire Eliminate 4 firefighters 309,200
Fire Fiber Run 65,000
Fire Replacement Pay 59,128
Fire Carpet 11,308
Fire Eliminate Firefighter Mechanic 95,783
Fire Civilian Mechanic Hire -80,511
DPW Bituminous Concrete 20,000 level funded
DPW Solid Waste 31,231
Recreation Elimination 259,937
Senior Services Eliminate Custodian 73,294
Senior Services Contract/ Cleaning Services -36,000
Capital Pierce Engine 141,750 1st year Lease Payment
Capital Replace 2009 Fire Tahoe 43,054
Capital P80 Replacement F450 43,169
Total 1,448,240
REVIEW OF PROPOSED REVENUES
Town of Salem, NH – 2014/2015 Revenue Comparison
2015
2014 Town Manager Increase
Budget Recomm. (Decrease)
Taxes (not incl property taxes) 291,500$ 255,500$ (36,000)$
Intergovernmental Revenues 3,385,120$ 2,361,215$ (1,023,905)$
Licenses and Permits 5,641,925$ 5,688,450$ 46,525$
Charges for Services 2,818,585$ 2,728,458$ (90,127)$
Miscellaneous Revenues 35,215$ 88,000$ 52,785$
Other Financing Sources 4,939,282$ 1,566,198$ (3,373,084)$
Total General Fund 17,111,627$ 12,687,821$ (4,423,806)$
Income from Sewer Fund 2,558,628$ 2,616,940$ 58,312$
Income from Water Fund 5,155,114$ 5,519,962$ 364,848$
Total Revenue 24,825,369$ 20,824,723$ (4,000,646)$
Intergovernmental Estimated Revenue difference is due to the 2014 fuel tank
replacement and bike/ped project.
Reduction in Other Financing Sources Estimated Revenue reflects that no
Bond proceeds for bridge reconstruction and no capital is proposed for
purchases using Unassigned Fund Balance.
2015 Breakdown of Estimated Revenues Excluding Property Taxes
Revenue
Taxes (not incl property taxes)
2%
Government Revenues 20%
Licenses and Permits 46%
Charges for Services 23%
Miscellaneous Revenues 1%
Other Financing Sources 4%
REVIEW OF WATER & SEWER BUDGETS
Water Fund Budget Comparison – 2014 vs. 2015
• Based upon the proposed Water Fund Budget the current water rate of $3.45
per 100 cf. would not support the proposed budget. I am recommending the use
of Unassigned Fund Balance to fund the revenue shortfall of $154,726.
• Water Capital includes $450,000 to paint of the Howard Street tank. AWWA
recommends the tank be painted every ten years. The last time the tank was
painted was in 2001.
Increase
2014 2015 (Decrease) %
Administration 1,417,223$ 1,311,396$ (105,827)$ -7.47%
Operations 1,012,986 840,559 (172,427) -17.02%
Building 97,556 107,054 9,498 9.74%
Debt Services 610,672 660,503 49,831 8.16%
Water Capital 116,677 602,450 485,773 416.34%
Water Warrant Articles 1,900,000$ 1,998,000$ 98,000 5.16%
Total - Water Fund 5,155,114$ 5,519,962$ 364,848$ 7.08%
Water Fund –Unassigned Fund Balance – 2014-2015
Balance as of 12/31/13 1,454,599$
2014 Revenues 80,000$
2014 Expenditures 20,000$
Balance as of December 2014 1,554,599$
Balance as of 12/31/14 1,554,599$
2015 Revenues -$
2015 Expenditures 20,000$
2015 Use of Unassigned Fund Balance (154,726)$
Balance as of December 2015 1,419,873$
Sewer Fund Budget Comparison – 2014 vs. 2015
Based upon the Board of Selectmen’s 2011 vote to supplement revenues
with surplus Unassigned Fund Balance, the current sewer rate of $3.25 per
100 cf. would not need to be increased .
Increase
2014 2015 (Decrease) %
Administration 2,145,077$ 2,213,289$ 68,212$ 3.18%
Debt Services 412,572 403,651 (8,921) -2.16%
Sewer Capital 979 - (979) -100.00%
Total - Sewer Fund 2,558,628$ 2,616,940$ 58,312$ 2.28%
Sewer Fund –Unassigned Fund Balance – 2014-2015
Summaries above include a GLSD reimbursement that has averaged $240,000 over
the past three years.
Balance as of 12/31/2013 2,341,699
2014 Revenues (153,438)
2014 Expenditures 15,000
Balance as of December 2014 2,203,262$
Balance as of 12/31/2014
2015 Revenues (222,808)
2015 Expenditures 15,000
Balance as of December 2015 1,995,454$
Article 3 – 2015 Road Program
Article 3 requests $4.753 million in funding for the 2015 road program. The 10 Year Road Program was adopted by the Selectmen on July 28, 2014.
Article 4 – Winter Weather Operations
Article 4 requests $250,000 in additional funding for winter operations. There is a $500,000 appropriation in the 2015 proposed Operating Budget.
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2009 2010 2011 2012 2013 2014
Winter Weather Operations Cost Budget History
Cost Budget
Town Manager’s Recommended
• Restore the Four Firefighter Positions
and Corresponding Replacement Pay $367,328
• Restore the Recreation Department $259,937
Total $627,265
Including the funding requests above will impact the tax rate an additional .16¢ or an additional 2.2%
Town of Salem, NH – Town Manager Recommendation
Questions/Comments