BUDGET WORKSHOP II

For FY2019-2020

Town of LandisMay 29, 2019

Property tax$298,100,000 tax base after revaluation (per Rowan Co.)

$1,544,382 revenue at current rate ($0.53) at 97.75% collection

Revaluation = increase of ~ $181,500 to General Fund

Each 1¢ = $29,139 in revenue at new valuation

Revenue neutral rate = 46.8¢

Staff recommendation: maintain existing rate of 53¢ per $100

Property tax

FY19 FY20 Note

Landis 53¢ 53¢ Maintain Rate

Rowan Co. 66.25¢ 66.25¢ Maintain Rate

Kannapolis 63¢ 63¢ Maintain Rate

Salisbury 71.96¢ 71.27¢ Slight Decrease

China Grove 58¢ 54¢ Revenue Neutral

Landis has & will continue to have the lowest tax rate in the area

Property taxThe need to maintain our existing rate:

Recover and rebuild our fund balance

Electric fund has traditionally subsidized low tax rate

FY20 Budget shifts significant expenses from Electric to General Fund

Increase in solid waste disposal costs / decrease in fee

Mandated increases for retirement funding

Landis growing - demand for services is increasing

Landis’ tax rate will still be lowest in Southern Rowan Co.

Avoid rate Yo-Yo

Debt service

$139,000

$170,750

$79,500

$274,000 General FundElectric FundWater FundSewer Fund

General FUND

7%9%

6%

19%

18%

25%

6%11%

Administration: $431,750Savings: $250,000Police: $1,013,000Fire: $705,550Streets: $747,950Sanitation: $238,250Recreation: $362,600Debt Service: $274,000

OVERALL

Year General LEO Landis

2019 7.75% 8.5% $143,500

2020 8.95% 9.7% $165,000

2021 10.15% 10.9% $187,000

2022 11.35% 12.10% $209,000

2023 12.45% 14.17% $233,000

Projected Employer Retirement Contribution Cost Increases

$89,500 over next 4 years, based on FY20 salaries

OVERALLHealth Insurance Costs Down

Revisited employee health plan

Same carrier (United Healthcare), new agent

Employee choice between high and low plan, with employee contribution

$73,500+ Annual savings to Town

ADMINISTRATION$250,000 General Fund balance / contingencies

$81,250 finance officer expenses (formerly in electric)

$80,000 for professional service fees (formerly in electric)

$19,000 for building maintenance & repairs

$10,000 New payroll provider contract (up from $7K)

$6,000 EMS expenses (formerly in fire)

$4,000 GIS software for planning / zoning

$2,500 Purchase of new staff chairs & filing cabinets

POLICE$1,013,000 Budget - $160,000 in pass-through funding =

$853,000 Actual town appropriation

Restores one full-time officer position / total net increase of $30,365

Provides $15,000 for holding cell, bathroom renovations, new flooring

1%18%

17% 63%

Salaries: $643,250Benefits: $173,250Operating Expenses: $181,500Capital Expenses: $15,000

POLICE

# Po

lice

Pers

onne

l

# C

alls

for S

ervi

ce

0

400

800

1200

1600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

11

9 9

11 11 11 1112 12

10 10 10 10

1,045 1,0701,150

1,086

1,2541,335 1,269

1,3681,456 1,476

1,347 1,3881,504

Calls for service up 44% since 2007; staffing 10% below 2007 levels

Fire$705,505 Budget

$128,750 Capital Expenses: $80,000 - Replacement protective gear $28,000 - Extrication tools $20,750 - Repair concrete at ladder truck bay

Provides three additional iPads with mobile data access

Salary increases for 3 lieutenants (from $41,621 to $42,500 each)

18%

25%

13%

44%Salaries: $310,750Benefits: $92,550Operating Expenses: $173,500Capital Expenses: $128,750

PUBLIC WORKSRebid trash contract - our costs are increasing $24,000 / year

No recycling - costs would have increased about $119,000 / year

Residential garbage fee decrease from $17 to $15

$350,000 for additional street paving

$80,000 Leaf Machine

$18,000 Pay adjustments for street department

$12,500 Replacement tools & diagnostic computer

$11,000 Zero-turn mower

$3,000 Replacement trimmers / blowers

$3,000 Traffic cones & barricades

PARKS & RECFunds all special events: Fall Festival - $13,400 5 Cruise-ins - $1,250 Christmas Tree lighting downtown / Christmas at the Lake - $500 End of summer pool party - $730 5 Senior luncheons / Bingo - $1,500 Parade float - $500

Other Expenses: Parks vehicle - $30,000 Repair boat launches - $2,500 Playground benches - $1,500 Pool furniture - $4,500

Water

No increase to customer rates

Town will absorb 2.9% wholesale cost increase$125,000 to contingencies / fund balance$57,500 transfer to Sewer Fund for repairs$30,000 truck replacement

SewerNo increase to customer rates

Town will absorb 1.2% wholesale cost increase$152,500 to repairs & system improvements$7,500 for sewer tap machine & jet-vac radios

Electric

Currently billing = 16 different residential electrical rates / tiers

Prices range from 14.25¢ to 10.75¢ per kWh

?

Electric

=10.5

Electric

Residential facilities charge of $20

per kWh¢

Electric

10.5¢ rate - $969,000 Decrease in electrical profits = Increase in the citizens’ pockets

Electric$171,750 to fund balance / contingencies $150,000 transfer to General fund$79,500 debt service for AMI meter loan (erroneously omitted previously)$70,000+ in savings from new credit card system$35,000 Three (3) voltage regulators for substation$30,000 in savings from cancelling lease for unused bucket truck$30,000 pickup truck replacementSignificant costs shifted to General fund

Tax rate remains unchanged, lowest in area at 53¢ per $100Residential electrical rates slashed & simplified, 10.5¢ kWh, $969K in savingsNo increases to water or sewer rates$2/month decrease in residential trash fee; no recyclingTotal of $564,000 committed to savings (across all funds)$350,000 for additional street pavingProvides firemen with updated protective gear & extrication equipmentRestores one position and funds facility updates at police departmentReplaces leaf machine & mowing equipment in street departmentAllocates $152,500 for sewer repairsReplaces substation voltage regulators

BUDGET SUMMARY

Discussion