Wakefields Financial Picture Finance Committee

April 2015

Agenda

Past Receipts Accounts Spending

Present Future

Past 20 year average annual increase is 4.0%; 10 year average is 2.8%

Excludes Enterprise Accounts and Chapter 90 (Roads)

10 year average increase: Health 3.9%, Ret 3.4%, NE Reg Voc 11.6% (Health budget now includes $1.8 million toward Post Retirement Health Trust)

Personal Services Budgets - $000

FYE10 FYE15 Annual Inc %

Schools 21,266 25,711 3.9% Fire 3,064 3,932 7.1% Library 863 1,070 4.4% Police 3,583 4,334 3.9% DPW 2,331 2,790 3.7% Other 1,639 2,072 4.8% Total 32,746 39,909 4.0%

Budgets - $000

FYE10 FYE15 Annual Inc %

Schools 26,183 31,288 3.6% Fire 3,205 4,130 5.2% Library 1,125 1,452 5.2% Police 3,850 4,693 4.0% DPW 3,485 4,269 4.1% Gen Govt 2,411 3,238 6.1% Total 40,259 49,070 4.0%

FYE16

Our reserves have recovered to an acceptable level 13% of Budget

Some services that had been recently been cut, will be partially restored, for example: Schools

Contemplated Capital projects total over $26 million for next 5 years

Meals and Hotel taxes have given us a lift Significant Snow and Ice Overdraft for FYE16

FYE16

Outstanding debt and interest payments for projects is about $55.8 million (Dolbeare, Woodville, Public Safety, Senior Center, Recreation, Galvin)

Retirement Unfunded Liability was $43.8 million as of 1/1/2014

OPEB Unfunded Liability was $65.0 million as of 6/30/ 2013

FYE16 Expected increase in Tax Levy: $2,253,000 Increase in State Aid of $81,000 Current increase in spending for:

Salaries: $2,441,000 Retirement: $193,000 Snow & Ice: $100,000 New Collective Bargaining Contracts: $683,000 Schools: $3,560,000

Reductions in other line items, including: State and County Assessments: $144,000 Stabilization: $250,000 Refuse: $78,000

Department Budgets increased $4,650,000, or 6.95%

FYE16 Total Budgeted Expenditures for FYE15

were $80,048,000 Total Proposed Expenditures for FYE16 are

$84,550,000 Total increase of $4,502,000 or 5.6%

Total Revenue for FYE16 is projected to be $82,991,000

Difference of $1,559,000 covered by Free Cash

Reduced Services Reduced services not fully restored have included:

Reduced building and field maintenance, including minimal effort to control energy costs through building improvements (some restoration occurring in FYE15 and FYE16)

Poor maintenance of most roads, sidewalks, and a few fields

Forecast

Q & A