1. TOWN OF MONTREAT FISCAL YEAR 2013-2014 Annual Budget Public Hearing and Presentation to the Board of Commissioners June 13, 2013

2. 2013-2014 Budget Overview Total Budget: $2,866,305 General Fund Budget: $2,469,955 $241,765 decrease from last year Water Fund Budget: $396,350 $96,700 decrease from last year Proposed Tax Rate Increase to 0.41 (Four Cents) One Cent on the Tax Rate Generates $23,463 Proposed Water Rate Increase ($4.49 to $4.83 per 1,000 gallons)

3. Introduction – Contains the budget message and information about the Town’s organization Policy Document – Gives a coherent statement of the organization-wide financial and programmatic policies and goals that address long-term concerns and issues Financial Plan – Describes all funds that are subject to appropriation as well as a summary of revenue sources and expenditures The Budget is Divided into Six Sections:

4. Operational Guide – Describes the activities, services and functions carried out by each department of the Town Capital Improvements Plan – A flexible financial planning tool that forecasts the Town’s equipment, building and infrastructure needs Glossary and Miscellaneous Statistics The Budget is Divided into Six Sections:

5. Significant Impacts Shaping the Budget Capital Projects – Texas Road Paving, Texas Road Bridge, Construction of a New Town Hall and Public Works Facility, Water Storage Tank and a Vehicle Personnel Costs including cost of living adjustments and insurance increases Economic slowdown and its affect on revenues Proposed Tax Rate Increase Proposed Water Rate Increase

6. General Fund Revenue Highlights

8. General Fund Revenues Buncombe County Revaluation – Revenue Neutral Tax Rate equals a one penny increase on tax rate. Board proposes an additional three penny tax rate increase to help fund much needed capital improvement projects. Estimated revaluation rates and real and personal property tax base growth for 2013-2014 will be just under a half percent (1/2%) There is a no projected growth in sales tax ($320,000) and State Shared Revenues. An appropriation of $202,955 from the Fund Balance will be required

9. General Fund Expenditure Highlights

11. Personnel Cost of Living Adjustment Two and a half (2 1/2%) percent increase effective 7/1/13 except for the town administrator. Health Insurance Health Insurance deductible and Coinsurance increased just over 8%. 401(K) Contribution Continues 5 percent contribution effective 7/1/13. Staffing Maintains current staffing level.

12. Legal and Audit Services ($48,500) Department supplies increased to complete Election Expense ($2,500) Allocates $50,000 for the Interfund Transfer to the Water Fund Governing Board Administration Tax Collection Fee ($14,000) Under M&R Equipment, $4,000 has been budgeted for the ICS Payroll Module and $2,900 for the conversion of the Town’s email system to Microsoft 365.

13. Public Buildings Utilities, Insurance and Maintenance/Repair ($55,900) Allocates funding for the first payment of the construction of a new town hall and public works facility ($47,805) Police Dispatching Services ($17,850)

14. Planning and Zoning UDO Form Based Code development ($35,000) Allocates funding for operating and maintaining the new Geographic Information System. Public Works Phase II Stormwater Program and Tree Replacement Program Powell Bill Small paving project costs ($24,000)

15. Streets Street Lighting ($23,500) Tree removal services ($12,000) and Contract Labor for road maintenance ($4,000) Texas Road Paving and Stormwater Drainage Project ($194,000) Texas Road Bridge Project ($825,000) Replacement of the 1994 Truck ($45,000)

16. Sanitation Continuation of in-house sanitation services including garbage collection and disposal, recycling, yard waste and white goods pick-up and disposal ($103,600) Environment and Recreation Landcare Committee ($1,000) Native Plant Garden Construction Open Space Conservation Fund

18. Water Fund Revenue Highlights

20. Water Fund Revenues Operating revenues are budgeted at $396,350 This amount represents a $96,700 or a 19.6% decrease in revenues budgeted last year Assessment loan proceeds of $119,000 is budgeted for upper Kentucky $12,450 is appropriated from Retained Earnings A Water Rate increase is proposed

21. Water Fund Revenues Proposed Water Rate Increase –Water rate per 1,000 gallons increases from $4.49 to $4.83 –Residential water access fee remains unchanged at $14.00 –Institutional water access fee for 1” lines remains unchanged at $95.00 –Institutional water access fee for 2” lines remains unchanged at $220.00

22. Water Fund Revenues Town of Montreat Sample Residential Bill - Present vs. Proposed Rates Present Rates Usage (gallons)0 1,000 5,000 10,000 Water4.49/1000 $ - $ 4.49 $ 22.45 $ 44.90 Water14.00/mo $ 14.00 Sewer5.32/1000 $ - $ 5.32 $ 26.60 $ 53.20 Sewer11.14/mo $ 11.14 Billing fee0.35/mo $ 0.35 Total bill $ 25.49 $ 35.30 $ 74.54 $ 123.59 Proposed Rates (MSD tentative) Usage (gallons)0 1,000 5,000 10,000 Water4.83/1000 $ - $ 4.83 $ 24.15 $ 48.30 Water14.00/mo $ 14.00 Sewer5.45/1000 $ - $ 5.45 $ 27.25 $ 54.50 Sewer11.42/mo $ 11.42 Billing fee0.35/mo $ 0.35 Total bill $ 25.77 $ 36.05 $ 77.17 $ 128.57 Total Bill Difference $ 0.28 $ 0.75 $ 2.63 $ 4.98 Water Rate Difference $ - $ 0.34 $ 1.70 $ 3.40

23. Water Fund Expenditure Highlights

24. Water Fund Water Line Replacement – Texas Road ($39,500) and Upper Kentucky ($119,000) Water storage facility on Greybeard – first payment - $89,150 Debt Service Payment ($119,600) – Water Bond Payment ($37,500), ARRA Debt Service ($32,100) and Greybeard property purchase ($50,000) Contribution to General Fund - $73,800

26. Budget Calendar May 9 – June 13 Budget Review by Board of Commissioners June 13 Public Budget Hearing of Proposed Budget June 13 – June 27 Additional Time for Review and Amendments June 27 Adoption of Final Budget

27. Budget Document Availability Filed with Town Clerk at the Town Services Building Regular Meetings of the Board of Commissioners Budget Document is available on our website at: www.townofmontreat.org

28. Town of Montreat Fiscal Year 2013-2014 Annual Budget Questions?