1 Joint Budget Meeting of the Board of Selectmen and the Finance Committee February 3, 2009.

1

Joint Budget Meetingof the

Board of Selectmenand the

Finance Committee

February 3, 2009

2

Introduction

• Goal• FY10 Current Condition• Revenue Change• Revenue & Expenses• Summary & Options• Departmental Budgets• Other Cost Savings• Budget Review Committee Recommendations• Revenue Raising Actions• Vote of the Board

3

Goal

Why are we here?

We are here to address any outstanding questions on the current budget crisis to enable the Board

to make an informed decision and vote on a specific plan of action.

An agreement on a plan of action is necessary at this time.

4

FY10 Current Condition

• Current Budget Gap is $1.5 million (gap = difference between level service & revenue)

− Revenue is down $1.0 million − First Pass Expenses up $1.5 million − Tax Levy Increase $1.0 million

In FY09, revenue was estimated with a $235,000 increase.

5

Revenue Change

We have a cumulative $1.25 million revenue shortfall that can’t be

bridged with additional Departmental budget cuts

− FY10 Revenue Shortfall – $1 million− FY09 Revenue Increase - $250,000

6

Revenues

Growth Reduction• New Growth Down $203,000

Local Receipts• Excise Tax Down $142,000• Permits and Fees Down $100,000• Free Cash Offset Down $400,000

Cherry Sheets• FY09 Lottery Aid Down $113,000• FY10 Lottery Aid Down $331,000• Other State Aid Down $47,000

7

Expenses

Fixed Expenses• Retirement Up $104,000• Health Insurance Up $193,000• Unemployment Up $50,000• Solid Waste Up $39,000

Variable Expenses• King Philip Schools Up $388,500• Elementary Schools Up $418,000• Municipal Government Up $343,000

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Summary

Revenue Decrease $1 million

Expense Increase $1.5 million

Net $2.5 million

Tax Levy Increase $1 million

Approximate Budget Gap $1.5 million

9

Three Options

(A) (B) (C)

Each Option incorporates the previous Option

BudgetCuts

BudgetCuts

BudgetCuts

TrashFund

Revenue Increases

Revenue Increases

10

Budget Cuts (A)

Cut all FY09 Operating Budgets by 1.5%

• King Philip Assessment $471,799

• Tri County Assessment $ 26,714 • Elementary Schools $539,562• Municipal Salaries $368,453• Municipal Expenses $110,437

Total $1,516,965

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Budget Cuts and Revenue Increases (B)

Half Level Service Budgets

Budget Cuts• Budget Cuts $715,000• Reducing Additional Services $160,000

Revenues• Roads & Drainage $275,000• Health Insurance Buyback $100,000 • Tax Title Properties $150,000• 775 South Street $ 50,000• Other Programs $ 50,000

Total $1,500,000

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Budget Cuts and Trash Fees (C)Three Quarter Level Service Budgets

Budget Cuts• Budget Cuts $350,000

Trash Fees• Trash Fees $800,000

Revenue• Health Insurance Buyback $100,000 • Tax Title Properties $150,000• 775 South Street $ 50,000• Other Programs $ 50,000

Total $1,500,000

Recommended Budget

13

Departmental Budgets

• Public Schools• King Philip Regional School District• DPW • Finance Department• Assessors• Police Department• Fire Department

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Wrentham Public SchoolsFY10 Level Service

• In addition to State and Local funding we will be utilizing a projected $950,000 in grants, tuitions, and private sources.

• Level Service is $8,529,628 down from $8,658,420• This represents an increase of $417,886 or 5.15%• A Level Service budget:

– Maintains current staff levels– Provides for increased Special Education costs– Maintains instructional materials– Continues targeted professional development

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Wrentham Public SchoolsFY10 Level Funding

• Level funding is $8,111,742

• Budget Reductions for FY10:– Elimination of 22 positions

• 4 Classroom teachers• 3 Specialists• 15 aides (Special education, early childhood,

recess/cafeteria)– Expenses were reduced to arrive at the 5.15% level

16

Wrentham Public SchoolsFY10 Level Funding Implications

• Class size will increase in grades K-6» Current range is 19-23» Range would increase to 21-26

• Loss of at least three “specials”» Students will no longer have the additional learning

experiences outside the classroom» At this point, all specials are on the table

• Reduction in student assistance/instruction» Less small group instruction» Less individual attention to students

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Wrentham Public SchoolsFY10 Level Service minus 25%

• Level Service with a ¼ reduction is $8,425,157 or a reduction of $104,471

Budget Reduction:– Elimination of 4 positions– 2 teachers– 2 aides

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King Philip Regional School District

• KPRSD level services budget = maintain current staff

• KPRSD budget level funded = reduction of approximately 20 teaching positions

• KPRSD budget to meet Wrentham assessment level funded = reduction of 26 to 30 teaching positions

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Public Works

A level service budget:

• 11% increase or $163,214

• Fill vacant position in Central Motors

• Aging equipment requires more repairs

• Increase building maintenance accounts to preserve assets

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Public Works (Cont.)

A level funded budget:• Reduced building asset maintenance and

custodial services.

• Reduced services; such as brush dump, waste oil recycling, tree topping and removal, Town Common fertilization and seeding, winter damage asphalt repairs, and other contractual services such as line painting and catch basin repairs.

• The possibility that some equipment may be placed out of service for lack of repair funding.

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Public Works (Cont.)

• ~$40,803 reduction (25%)

• Maintenance mechanic position remains vacant.

• Reduced building asset maintenance and custodial services.

• Reduced services; such as brush dump, waste oil recycling, tree topping and removal, Town Common fertilization and seeding, winter damage asphalt repairs, and other contractual services such as line painting and catch basin repairs.

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Public WorksSolid Waste Facts

• Current Situation– $775,610 divided by approximately 3,200 households yields

a per household trash & recycling cost of ~$20 per month

• Town Billed Trash Collection– Billing, collection, and non-collection would require 1

additional staff plus surplus for non-collected services for total ~$65,000 per year

• Individual Subscription Trash– Monthly cost would be $30-$40 per household, in other

words 50-100% increase– Municipal & school trash removal = ~$60,000 per year

23

Finance Department

The level service budget consists of:

• Salaries of $298,801 and Expenses of $163,120

The level funded budget consists of:

• Salaries of $290,431 and Expenses of $145,085

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Finance Department (Cont.)

• The level service budget includes a 20% increase in the hours for the town accountant (25 hours per week) due to the analysis and reporting functions which have been steadily increasing.

• The level funded budget reflects contractual salary increases obligations while reducing some of the expense lines required and mandated by the MGL.

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• The personnel budget for the Treasurer/ Collector’s department consists of two principal clerks and one senior clerk.

• The senior clerk handles:− payments at the counter, payroll processing, and is

cross trained to function as both the Assistant Collector and the Assistant Treasurer in their absence.

• In essence, the Treasurer/Collector’s office can be viewed as staffed with only 1.5 clerks per office.

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• The difference between a level funded budget and a level service budget is $26,405

Budget Reduction:

Elimination of 1 Senior Clerk position (cross-trained)

• The Treasurer/Collector’s office would close to the general public during lunch hours

• The Treasurer/Collector’s office would close during the weekly payroll processing.

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• It would be impossible to process the weekly payroll for town departments without the current staffing levels.

• It will cause a delay in payments being deposited which results in a loss of investment income and negatively affects the town’s cash flow.

• It may force a situation which would require short-term borrowing to meet the obligations of the town.

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Assessing Department

A Level Service budget for FY10 consists of:

Salaries $139,620

Expenses $ 56,141

A Level Funded budget for FY10 consists of:

Salaries $139,620

Expenses $ 50,991

The difference between a level funded budget and a level service budget is $5,150.

NOTE: Such a small number can have a large impact.

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Assessing Department (Cont.)

The Assessing Office consists of three full-time employees:

• A Full-Time Assessor• An Administrative Assistant/Data Collector • Principal Clerk• Senior Clerk (Vacant since 2003)

The two current positions have two distinct job descriptions, one does field inspections and the other does not, and they are not interchangeable.

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Assessing Department (Cont.)

Impact of a Level Funded Budget:

• To offset any contractual increases, small expense lines have been trimmed over the several years and cannot afford to be trimmed again.

• Reducing the number of employees or the number of hours of one of the current employees would:

– Force the office to close during certain time periods. – Puts at risk a timely FY10 Certification with the Department of

Revenue.

• Without a Data Collector in the field there is a potential loss of an important sources of revenue – New Growth.

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Police Department

• In 2003-2004, the Department had 20 officers.

• In 2008, the Department is authorized for 16 officers and are currently staffed at 14 officers.

• Vacant shifts are filled at time and one half and will continue until staffing levels increase.

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Police DepartmentIn a level funded budget:

• the Personnel budget is $1,480,270 and the expenses are $204,750 for a total budget of $1,685,120.

• the FY10 Budget represents negotiated pay raises.

• It would reduce our work force by one officer

• It put three shifts at minimum staffing levels

• time off for vacation, holiday, personal, training, sick and injury would all have to be replaced.

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Police Department

In a level service budget:• the Personnel budget is $1,534,568 and the expenses

are $214,850 for a level service budget of $1,749,418. This also includes pay increases from negotiations.

• we keep our current force of 16 authorized officers.

• savings would be seen in vacation, holiday, and training accounts in FY2011 after completion of police academy for the two vacant positions.

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Police Department

In a level service budget:• our Community Policing initiatives would continue as

planned and proactive neighborhood patrols would be maintained.

• traffic enforcement will be increased with the addition of a motorcycle patrol that was funded by a grant.

• our ability to follow up on property crime investigations is minimal at best.

• would result in laying off a patrolman in February 2010.

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Police Department

• Working off a level service budget with a $64,298 increase from a level funded budget and reduce that by 25% reduces my level service budget by $ 16,075.

• Essentially, this would result in laying off a patrolman in February 2010.

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Police – Current StaffingMidnight - 8:AM

January 18 January 19 January 20 January 21 January 22 January 23 January 24

SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

SGT 3 SGT 3 PTL 7 PTL 7 SGT 3 SGT 3 SGT 3

PTL 8 PTL 8 PTL 8 PTL 8 PTL 7 PTL 7 PTL 8

8:AM - 4:PM


SGT 2 SGT 2 SGT 2 SGT 2 SGT 1 SGT 1 SGT 2



4:PM - Midnight


SGT 1 SGT 1



Police Officer

Sergeant

Vacant shift

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Police Department Conclusion

• Based on our population level of 10,822 residents our staffing level is 1.5 officers per thousand well under the national standard of 2 officers per thousand.

• I would strongly suggest that public safety is essential to every community and I would recommend that staffing levels in the Police Department not be cut any further and in fact be brought back to staffing levels in 2003-2004 of twenty police officers.

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Fire Department

• The most common service that is provided is EMS – which is provided at the highest level – Advanced Life Support

• Department is authorized for 18 members

• The department is fully staffed at this time.

39

Fire Department

In a level funded budget:

• The Personnel budget is $1,436,610 (does not include IOD) the expenses are $161,450 for a total budget of $1,598,060

• FY10 budget has negotiated pay raises.

• Time off for vacation, personal, sick and IOD needs to be replaced.

40

Fire Department

• In a level service budget:

• The Personnel budget is $1,503,769 and the expenses are $165,050 for a total budget of $1,668,819

• This includes pay increases from contract negotiations.

• This leaves the IOD line item in the budget unfunded

41

Fire Dept. EMS Service

• Working off a level service budget with a $70,760 increase from a level funded budget, and reduce that by 25%, the level service budget is reduced $17,690

• To achieve this savings the department will have to reduce current staffing levels.

42

Fire Department

• Current Staffing is 1 Officer and 3 Firefighters

• In order to provide ALS service– Rescue must be staffed with 2 paramedics– Currently 7 firefighters are Paramedics– If we reduce staffing we will still need to call

back a paramedic to provide ALS service.

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Fire Department Conclusion

• Cost of reducing service – In some EMS service, there would be a 25%

reduction in the charges.– There is no $ that can be assigned to arriving

with 3 people as opposed to 4 people.

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Other Cost Savings

• Vacation Buyback (Public Safety)• Holiday Buyback (Public Safety)• EMT Stipend – Deferred Payments ($66,000)• Sick Leave Buyback (Last 100 days)• 15th Day Sick Leave Buyback• Departmental Service Reductions• Reduce Street Lighting• Reduce Custodial Services• Old Fiske Library Shutdown• Bi Weekly Paychecks• Brush Dump / Oil Recycling• Four Day Work Schedule • Negotiate Work Reductions• Negotiate Furloughs• Wage Freeze vs. Workforce Reduction• License Fee for Yard Sales• Sidewalk Plowing Bylaw (with an age limit?)• Employee Input

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Three Options

(A) (B) (C)

Each Option incorporates the previous Option

BudgetCuts

BudgetCuts

BudgetCuts

TrashFund

Revenue Increases

Revenue Increases

46

Budget Review Committee Recommendation (Option C)

Budget Cuts• Budget Cuts $350,000

Trash Fees• Trash Fees $800,000

Revenue• Health Insurance Buyback $100,000 • Tax Title Properties $150,000• 775 South Street $ 50,000• Other Programs $ 50,000

Total $1,500,000

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Revenue Raising Actions

Place an override question on the April 6, 2009 Election Ballot for trash collection (deadline for submission to Town Clerk – February 20, 2009)

Approve the sale of gravel excavated from property at 775 South Street

Offer a Health Insurance Buyback Incentive to the Town’s employees

Auction Town-owned foreclosed property (exclusive of 18 acres at 775 South Street)

1 Joint Budget Meeting of the Board of Selectmen and the Finance Committee February 3, 2009.

Documents

Transcript of 1 Joint Budget Meeting of the Board of Selectmen and the Finance Committee February 3, 2009.