TOWN OF HAMPDEN

2011/2012

PROPOSED BUDGET

INFORMATION

BUDGET PRIORITIES

• STABLE TAX RATE – NO MIL RATE INCREASE

• RETAIN SERVICES

• MAINTAIN INFRASTRUCTURE

• FIND EFFICIENCIES

• NO LAYOFFS

BUDGET PRESSURES

• STATE CUTBACKS IN REVENUE SHARING AND OTHER PROGRAMS

• DECLINE IN INVESTMENT INTEREST RATES

• GROWING POPULATION AND INFRASTRUCTURE NEEDS

BUDGET PRESSURES

• FUEL PRICE INCREASES• WATER DISTRICT RATE INCREASE• COUNTY TAX INCREASE• SCHOOL BUDGET INCREASE• WORKER’S COMP INCREASES• INCREASED LEGAL FEES• INCREASED COST FOR ANIMAL

SHELTER CONTRACT

BUDGET STABILIZERS

• REDUCTION IN DEBT SERVICE• FUNDING PUBLIC SAFETY RESERVES

FROM CURRENT YEAR OPERATING FUNDS

• BUS SERVICE EXPANSION FROM RESERVE FUNDING

• FUEL SAVINGS FROM NEW BOILERS AT THE MUNICIPAL BUILDING

• LEASE/PURCHASE ON EQUIPMENT

FUTURE PRESSURES

• ADDITION OF LOCAL DEBT SERVICE FOR NEW HIGH SCHOOL IN 2012

• IMPACT OF HAMPDEN ACADEMY RE-USE DECISIONS ON LOCAL PROPERTY TAXES

COMMUNITY STATISTICS

Mil Rate Information

• The following slide shows the mil rate history since 2001/2002. During that time, the mil rate dropped from a high of $21.20/thousand to a low of $15.70 in 2006. This budget should maintain the mil rate at $15.90 for the fourth consecutive year.

Mil Rate History - Hampden

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2001 2003 2005 2007 2009 2011

Mil Rate

Valuation Growth

• Despite the economic recession, Hampden’s valuation is stable as indicated by sales data compiled by the Assessor.

• This budget uses only value created from new construction as available for an offset to the budget.

• From 2001 to 2011, local valuation has grown by 87.76%. The valuation mix is 86% residential and 14% business.

Hampden Valuation History

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2001 2003 2005 2007 2009 2011

Valuations inHundreds ofMillions ofdollars

POPULATION

• THE FOLLOWING CHART SHOWS THE POPULATION GROWTH IN HAMPDEN FROM 1960 TO 2010. IT IS ONE OF THE FASTEST GROWING COMMUNITIES IN CENTRAL MAINE. IT HAS GROWN 58.3% SINCE 1960.

POPULATION 1960-2010

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1960 1980 2000

POPULATION

WHERE DOES YOUR MONEY GO?

Town Tax Dollar Breakdown

7.20%

56.98%

35.70%

County TaxSchool TaxMunicipal Tax

PROPOSED BUDGET SAVINGS

AND REVENUE INCREASES

BUDGET SAVINGS

• RESERVE AMOUNT APPROPRIATIONS REDUCED THROUGH USE OF YEAR END OPERATING FUND BALANCES FOR AMBULANCE AND FIRE EQUIPMENT.

• DEBT SERVICE REDUCED BY $66,000 THROUGH PAYOFF OF BUSINESS PARK NOTES, DESPITE ADDITION OF MAYO ROAD BOND.

BUDGET SAVINGS (CONT.)

• NEW BOILERS AT MUNICIPAL BUILDING – PAID FOR BY AN $84,000 GRANT ARE SAVING OVER 3000 GALLONS OF FUEL ANNUALLY.

• VOTING MACHINE APPROPRIATION OF $6000 NO LONGER NECESSARY SINCE THE $24,000 NEEDED HAS BEEN BUDGETED OVER THE PAST 4 YEARS

• SUCCESSFUL GRANT APPLICATION FOR NEW FIRE BRUSH TRUCK.

BUDGET SAVINGS (CONT.)

• TRANSFER STATION BUDGET IS $100,000 LOWER THAN 2008/2009 BUDGET DUE TO REDUCTION IN C&D AND WOOD DISPOSAL. .

PROPOSED BUDGET INCREASES AND

REVENUE REDUCTIONS

PROPOSED INCREASES

• COMMUNICATIONS BUDGET FOR THE FUNDING OF A VIDEO STREAMING OPTION FOR NON-CABLE SUBSCRIBERS TO BE ABLE TO WATCH MEETINGS/PROGRAMS ON HOME COMPUTERS VIA THE INTERNET.

• WORKERS COMPENSATION IS UP DUE TO SEVERAL SERIOUS ACCIDENTS OVER THE PAST SEVERAL YEARS AND THE GENERAL HIGH RATES FOR WC IN MAINE.

OTHER INCREASES

• 3% COST OF LIVING PER UNION CONTRACT

• $7,000 INCREASE IN ANIMAL CONTROL BUDGET DUE TO CLOSURE OF LOCAL SHELTER

• THIS BUDGET INCLUDES SATURDAY BUS SERVICE FOR HAMPDEN

REVENUE REDUCTIONS

• REVENUE SHARING CONTINUES TO BE REDUCED AT THE STATE LEVEL

• EXCISE TAX IS STABLE BUT SUBJECT TO CHANGE IF THE LEGISLATURE MAKES CHANGES TO THE FUNDING FORMULA

REVENUE REDUCTIONS (CONT.)

• INVESTMENT INCOME CONTINUES TO BE DEPRESSED DUE TO LOW INTEREST RATES ON INVESTMENTS THAT HAVE NO RISK. THE TOWN IS LIMITED IN ITS INVESTMENT POLICY TO THOSE THAT ARE TOTALLY PROTECTED FROM LOSS OF PRINCIPAL.

BUDGET IMPACT –THE BOTTOM LINE

• THE PROPOSED 2011/2012 GROSS BUDGET INCLUDING SCHOOL, TOWN AND COUNTY EXPENSES IS $200,901.12 HIGHER THAN THE 2010/2011 BUDGET. THAT EQUALS A 1.6% INCREASE.

OUTSIDE PRESSURE

• SCHOOL BUDGET INCREASE OF $38,782.12 TO $5,184,588 (63% OF TOTAL BUDGET FOR TOWN)

• COUNTY TAX INCREASE OF $28,928

• FULL IMPLEMENTATION OF WATER DISTRICT RATE INCREASE IS $42,954 FOR HYDRANT RENTAL

• TOTAL OUTSIDE IMPACT: $110,664.12

ADDED VALUE

• NEW CONSTRUCTION VALUATION ESTIMATED AT $9.2M WOULD RESULT IN $146,280 IN ADDED TAX DOLLARS TO OFFSET INCREASE AND REVENUE INCREASES OF $59,382 RESULT IN A BOTTOM LINE AS FOLLOWS:

• $200,901.12 – $146,280 - $59,382 = ($4,760.88). THE AMOUNT TO BE COLLECTED FROM TAXATION WOULD BE LESS THAN FOR 2010/2011.

SUGGESTIONS DURING BUDGET PROCESS

• NOT FUNDING SOME OUTSIDE AGENCY REQUESTS FOR ASSISTANCE• REDUCING MARKETING FUNDS FOR ECONOMIC DEVELOPMENT BUDGET.• REVIEW OF POOL OPERATIONS DURING COMING YEAR• REDUCTIONS IN COMING YEARS MAY BE NEEDED TO OFFSET INCREASE IN BUDGET DUE TO NEW SCHOOL DEBT SERVICE AND HAMPDEN ACADEMY RE-USE PLANS