Article 14 Town Operating Budget (majority vote) Move that the Town raise and appropriate $30,049,062 to be expended by the Town Manager for the purpose of funding the fiscal year 2015 municipal budget, and that the Town authorize the Town Manager to lease on such terms and conditions as he may determine vehicles and equipment for a period not to exceed five years, and to sell, trade or otherwise dispose of vehicles and equipment being replaced and to expend any proceeds so received.

Overview of Presentation Highlights, Municipal Budget Formation Process Article 14 – Municipal Operating Budget Municipal Budget Overview

Highlights Solar Farm at Transfer Station Completed December 2013

Highlights NARA Picnic Pavilion to Be Completed May 2014

Highlights CrossTown Connect Program Launched

AAA Bond Rating When: 8/13/2013, by Standard & Poor’s Why: “Twin Schools” refinancing, $12.5M Town strengths: –good financial management practices with healthy reserves, low debt burden, efforts to manage OPEB obligation –strong household income and market values, comparatively low unemployment

SeptemberOctoberNovemberDecember Budget Formation Process (9 months) JanuaryFebruaryMarchAprilMay ALG Convenes Aims for consensus on revenue projections and expenditures Town Manager & Department Heads: 2-day budget summit Requests discussed & prioritized Town Manager’s Budget Team: Further budget analysis & refinement ALG preliminary allocations Town Manager finalizes budget recommendation Presentation to Selectmen Town Manager & Department Heads “Budget Saturday” with Selectmen and Finance Committee ALG Allocations complete Selectmen vote final budget Warrant finalized & delivered to residents Town Election Town Meeting Board of Selectmen, Finance Committee, School Committee choose their ALG representatives

Budget-Formation Process: Acton Leadership Group Representatives of - Board of Selectmen - School Committee - Finance Committee Town Manager Superintendent Municipal Finance Director Regional District Finance Director

Acton Leadership Group: Goals Aims for consensus on: Projected revenues (conservative) Proposed spending (level-service) Reserves use (prudent) 3-year plan

Acton Leadership Group: FY15 Consensus Accepted Finance Committee recommendations to: Fund OPEB at collective $1.1M for Town and schools Limit use of reserves to $2M Hold tax levy to ~1.5%

FY15 Budget : A Stable Foundation Culture and Community: Celebrations, Character Quality of Life: Historic Preservation, Library, Senior Center, Parks, Open Space Foundation of Local Government: Public Safety, Health, Education Maintain and improve services and efficiency Use reserves prudently Avoid override

FY15 Budget: Projected Revenues

FY15 Budget: Cost Assumptions (municipal) FY15 Expense by Type, Town Total $29,126 In Thousands Less Excluded Debt

Article 14: Operating Budget Noteworthy Items BudgetAmount%* 9-Year Revaluation$250,000.8% Four New Police Officers$124,404.4% Highway Equipment$120,000.4% Arborist$60,498.2% TOTAL$ 554,9021.8% * Of operating budget: $30,049,062

9-Year Revaluation FY15: $250,000 State-mandated every 9 years Full measurement, inside and outside, and “relisting” of all property in Assessor’s database Required to set the tax rate

4 New Police Officers FY15: $124,404 Cost for only 6 months. Hiring process can be slow due to civil service system and need to complete police academy. 2 nd year of 2-year plan to rectify shortage, alleviate reliance on overtime

Public Safety Demands Increases in: Domestic violence, child abuse Suicide attempts Robberies, breaking & entering, other crime Substance and alcohol abuse

Domestic Violence Police Department referrals to Domestic Violence Network, Inc., 7/2013 – 2/2014: Acton 13329%Lincoln/Hanscom51.1% Boxborough6313.8%Maynard9520.8% Carlisle163.5%Stow30.66% Concord4710.3%Wayland214.6% Lexington6614.4% TOTAL:457

Mental Illness Increasing demands involving individuals with mental illness In 2013, 80 involuntary commitments to hospital for mental health evaluations (“Section 12”) of individuals with mental illness at substantial risk of harming themselves or others. 3-day commitment followed by re-evaluation.

Drug-Related Deaths

Highway Vehicles: Replacement Via Leasing FY15: $120,000 Funds allocated to operating budget will enable regular replacement via leasing of Dump trucks, snow plows Loaders, backhoes Town vehicles

Highway Vehicles: Current Replacement Process 11-year old vehicle with over 110,000 miles Used 24/7 for DPW emergencies in all weather conditions Major rot and cracks on frame, beyond repair Failed last State Inspection Replaced last summer

Arborist FY15: $60,498 Currently only 1 Town arborist Significant increase in roads (10%) and sidewalks (100%) over last 20 years Increased state requirements for road maintenance Adding arborist would allow improved road and sidewalk maintenance, mowing, improve response to storm damage

FY15 Municipal Budget: By Articles FY15 Municipal Budget: By Articles Article(s)SubjectAmount% 14Operating Budget$ 30,049, % 15OPEB Funding (Town Only)674,8452.2% 16Capital Requests311,0001.0% 7,9,11,12Enterprise Funds – Support306,3931.0% Total Town Spending$ 31,341,300100%

FY15 Municipal Budget: Budget-Drivers FY14FY15 % Change Operating without Regionalization$28,472,335$29,655,8164.2% Regionalization Additional Cost$393,246 Sub-Total:$28,472,335$30,049,0625.5% OPEB$432,000$674, % Capital$760,000$311, % Subsidies$507,845$306, % TOTAL:$30,172,180$31,341,3003.9%

FY15 Municipal Spending: Impact of OPEB, Regionalization FY Operating Budget (Article 14)$30,049,062 Subtract: Net Regionalization Cost(393,246) 29,655,816 Add: OPEB Trust – initial contribution332,845 Subsidies to Enterprise Funds306,393 Capital311,000 Hypothetical FY15 Operating Budget$30,606,054

FY15 Municipal Spending: Impact of OPEB, Regionalization FY14FY15 % Change Cum. % Change Hypothetical FY15 Operating Budget $30,172,180$30,606, % Net Increased Cost, Regionalization $393, % Sub-Total:$30,999, % OPEB Trust Extra Contribution $342, % TOTAL:$30,172,180$31,341,3003.9%

In Memory of Luna

Thank you.

Article 14 Town Operating Budget (majority vote) Move that the Town raise and appropriate $30,049,062 to be expended by the Town Manager for the purpose of funding the fiscal year 2015 municipal budget, and that the Town authorize the Town Manager to lease on such terms and conditions as he may determine vehicles and equipment for a period not to exceed five years, and to sell, trade or otherwise dispose of vehicles and equipment being replaced and to expend any proceeds so received.

AAA Bond Rated Communities Under 5% of MA Communities (as of FY2012): Acton Hingham BelmontLexington BostonNewton BrooklineWayland CambridgeWellesley ConcordWeston DoverWinchester

Property Tax Impact: Scenario 1 Tax Levy increased 3.5%, Town Valuation declined 3% and SFR Value declined 2%. BaseAdjusted Base% Change Tax Levy$70,000,000$72,275,0003.5% Total Valuation$3,700,000,000$3,589,000, % Tax Rate$18.92$ % SFR Value$500,000$490, % SFR Tax Bill$9,459$9,8914.6%

Property Tax Impact: Scenario 2 Tax Levy increased 3.25%, Town valuation increased 1.7% and SFR Value increased 2% BaseAdjusted Base% Change Tax Levy$70,000,000$72,275, % Total Valuation$3,700,000,000$3,762,900,0001.7% Tax Rate$18.92$ % SFR Value$500,000$510,0002.0% SFR Tax Bill$9,459$9, %

Property Taxes: Acton Statewide Ranking Average Single Family Tax Bill, Acton: 1997: 15th 2013: 15th

Proposition 2.5: Effect of Reduced Tax Levy FY12 (July 2011-June 2012): – Town did not tax full amount of levy allowable under Proposition. Tax levy reduced by $520,000 FY 13 (July 2012-June 2013): – 3.9% increase in average single family tax bill

Changes in Property Tax Rate Due to: Debt exclusions New growth Overlay reserves Prior year deficits Changes in property valuations

Proposition 2.5: Acton Town Meeting Overrides 12/8/1998: “Twin Schools.” $21.3 M debt exclusion. (Vote: 54% - 46%) 11/5/2002: Public Safety Facility. $6.4 M debt exclusion. (Vote 53% - 36%) 4/1/2003: Permanent operating override. $3.0 M (Vote 53% - 46%) 3/29/2005: Permanent operating override $3.8 M (Vote 56% - 43%)

AAA Bond Rating Communities: Level of Reserves

Public Safety: 911 Calls, 3-Year Average

Public Safety: Police Spending per Capita