SPRING 2006 TOWN MEETING Bernard Lynch Town Manager April 24, 2006

Reports I move that the Town hear reports of the Town Officers and Committees Board of Selectmen

I move that the Town authorize the payment of a prior year bill in the amount of $3,850 for professional services performed by Kaestle Boos Associates, Inc. Architects to design the As-Built Plans for the Chelmsford Police Station with said payments coming from FY2006 Department of Public Works Expenses. Late Bills Board of Selectmen

Supplemental Appropriation I move that the Town transfer $72,691 from overlay surplus to fund certain one-time costs associated with the collective bargaining award of the Massachusetts Joint Labor Management Committee for patrol officers of the Town working in the Police Department. Board of Selectmen

Highlights of Police Agreement 3 Year Contract 3 Year Contract Performance Review Process Performance Review Process Pay Increases: Pay Increases: – FY’04: 0% – FY’05: 2% – FY’06: 3% Signing Bonus $750 Signing Bonus $750 Total $178,307 Total $178,307

Supplemental Appropriation I move that the Town amend the Fiscal Year 2006 operating budget under Article 8 of the Annual Town Meeting held on April 25, 2005 and amended by Article 7 of the Annual Fall Town Meeting held on October 17, 2005 as follows: Continued…

Supplemental Appropriation Decrease Line Item #4 Nashoba Assessment by $71,295 Increase Line Item #5 Public Safety Personnel by $71,295 Continued…

Supplemental Appropriation … And that the Town transfer $67, from overlay surplus to defray Town charges for the fiscal period July 1, 2004 to June 30, 2005 to fund certain one-time costs associated with the collective bargaining award of the Massachusetts Joint Labor Management Committee for firefighters and fire captains of the Town working in the Fire Department. Board of Selectmen Board of Selectmen

Highlights of Fire Agreement 3 Year Contract 3 Year Contract 24 Hour Shifts 24 Hour Shifts Pay Increases Pay Increases – FY’04: 0% – FY’05: 2% – FY’06: 2% Signing Bonus $600 Signing Bonus $600 Total $208,650 Total $208,650

I move that the Town, in accordance with G.L. c.41, section 108, set an annual stipend for the salary and compensation of the following elected officials in the town: Stipends Continued…

Chairman of the Board of Selectmen: $ 2,000 Chairman of the Board of Selectmen: $ 2,000 Member of the Board of Selectmen: $ 1,500 Member of the Board of Selectmen: $ 1,500 Chairman of the Board of Health: $ 660 Chairman of the Board of Health: $ 660 Member of the Board of Health: $ 600 Member of the Board of Health: $ 600 Member of the Cemetery Commission: $ 100 Member of the Cemetery Commission: $ 100 Town Moderator: $ 300 Town Moderator: $ 300 Constable: $50 per posting Constable: $50 per posting Town Manager Town Manager Stipends, cont.

Selectman Stipends – Town Comparison

I move that the Town transfer $1,900,000 from the Stabilization Fund to be used to offset a portion of debt and interest in the Fiscal Year 2007 Budget. Town Manager Stabilization Funds

I move that the Town raise and appropriate the sum of $86,598,145 and transfer $7,500 from the Wetlands Protection Act Revolving Fund; $255,536 from Sewer User Revenues; and $25,511 from Overlay Surplus, to be combined with the $1,900,000… Budget Continued…

…transfer from the Stabilization Fund as authorized in Article 6, to defray charges for the fiscal period July 1, 2006 to June 30, 2007 according to the following items: Budget Budget, cont. Continued…

Municipal Administration Personnel Services Expenses $1,343,725 $786,799 Chelmsford School Department $41,844,579 Nashoba Technical High School $1,525,511 Public Safety Personnel Services Expenses $8,726,634 $870,453 Continued… Budget Budget, cont.

Public Works Personnel Services Expenses Snow and Ice $2,088,410 $3,713,824 $500,000 Sewer Commission $5,000 Cemetery Commission Personnel Services Expenses $232,118 $45,625 Community Services Personnel Services Expenses $446,347 $180,700 Continued… Budget Budget, cont.

Library Personnel Services Expenses $1,067,047 $379,869Undistributed$14,850,307 Debt Principal Interest $6,672,861 $3,473,283 Audit $33,600 Budget Budget, cont. Town Manager

Fiscal Year 2007 Budget Presentation Annual Town Meeting April 24, 2006

Joint Meeting on Town Finances - June 9, 2005 Analysis of Financial Trends Presentation of 5 Year Financial Forecast Budget Model- funding allocation Original Projected Deficit for FY2007 was $2.6M Budget Development Process

Series of Joint Meetings to update revenue/ expenditure projections: October 6, 2005 November 29, 2005 January 18, 2006 March 8, 2006 Budget Development Process

Budget Model

Revenue Highlights

State Aid increase of $1,256,143: $589K due to uncapping of Lottery 2 years ahead of schedule $464K increase in Chapter 70 $145K increase in Charter Tuition Reimbursement (offset by higher assessment) Other minor increases in Quinn Bill, Exemptions & Library Offset Revenue Highlights

Revenue Distribution

Local Taxes

State Aid History

State Aid

Available Funds

Local Receipts

Expenditure History

Total budgetary increase $2,086, % over FY2006 Largest increases in employee benefits +$1,378,971 Health Insurance +$798K Retirement Assessment +$497K Expenditure Highlights

Employee Benefits Utility & Gasoline cost increases Limited Revenue Growth – Chapter 70 Inequities – Lower than expected growth in Building Permit Fees Budget Busters

Expenditure Summary

Expenditure Distribution

Municipal Administration

Highlights: Legal Services have been increased by $55K to reflect actual need Revaluation +$25K New Tax Collection Software +$36.5K Legal Services for delinquent tax collection +$13K Offset by functional consolidation of Assessor & Tax Collector’s Offices Municipal Administration

Public Education

Highlights: Nashoba Assessment +$328K Increase of 9 students (increases minimum contribution) Increase in minimum contribution of $45K Capital equipment $26K Student transportation $91K Public Education

Highlights: FTE reduction of 2 patrol officers Large increase in personnel costs due to contract settlement (FY04 – 06) Gasoline +$41K (59% increase) Utilities +$23K (32% increase) Police Department/Dog Officer

Highlights: Total increase in utilities & gasoline +$11,570 (28%) FTE reduction of 1 firefighter Large increase in personnel costs due to contract settlement (FY04 – 06) Fire Department

Highlights: Minor increases in expenses to reflect inflation Inspections

Public Works

Highlights: 1 FTE reduction in Highway will result in a layoff Street lighting +$25K 5% increases in solid waste disposal & hauling contracts elimination of leaf pick up program Snow & Ice budget increased $40K to more closely reflect expenditure trends Public Works

Highlights: Change in fee split to have department fully fund expense budget. Minor increases in expenses to reflect inflation Cemetery Commission

Highlights: No funding for 3 new positions (2 HVAC & 1 Groundskeeper) as called for in plan HVAC maintenance continues via contract HVAC budget for FY’07 is $115,120 Funds to purchase 3 used vans Municipal Facilities

Highlights: Veteran’s Benefits increased by $13.5K to more accurately reflect current costs Human Services

Highlights: No changes Programs continue to be generally supported by user fees Community Enrichment

Highlights: No changes Board of Health

Highlights: Proposal includes: 12.2% increase in health insurance 13% increase in retirement assessment $19K increase in Unemployment Benefits to cover increased costs as a result of layoffs Undistributed

Highlights: Proposal includes minimum funding to qualify for state funding Library

Health Insurance

Highlights: Funds all existing long-term debt services Funds 2005 Capital Improvement Plan Temporary funding for school construction & renovation projects per project manager’s cash flow projections Debt Service

Debt Service - Overview

Debt Projection

Highlights: 35% increase in charter school tuition, 50% offset by increase in Cherry Sheet Non-Appropriated

– Collective Bargaining – Employee Benefits Rising costs Increased enrollment/change in enrollment during the Fiscal Year – Ability to sustain service levels – State Aid – FY2006 Close Out Effect on Free Cash Effect on Revenue Projections for Tax Recap Issues of Concern

School FTE’s

Non-School FTE’s

School FTE’s

Non-School FTE’s

Sewer Enterprise I move that the Town appropriate the following sums to operate the Sewer Enterprise: Continued…

Sewer Enterprise Direct: Personnel Expenses Expenses $550,570 $1,531,279 Sub-Total:$2,081,849 Indirect Indirect: Administrative Costs Employee Benefits $181,082 $74,454 Sub-Total:$255,536 Total:$2,337,385 Continued…

Sewer Enterprise $2,081,849 to come from enterprise revenues and $255,536 to be appropriated in the General Fund and funded from sewer enterprise revenues. Town Manager

Highlights: Fees cover the full cost of providing the service plus the indirect costs such as employee benefits & administrative overhead. Sewer Enterprise

Land Purchase - Sand I move that the Town raise and appropriate $25,000 to fund the sand purchase approved by the Town under Article 4 of the 1998 Special Town Meeting held on April 27, Town Manager

Land Purchase - Sand

Reserve Fund I move that the Town raise and appropriate $150,000 to be used as a Reserve Fund at the discretion of the Finance Committee, as provided in General Laws Chapter 40, Section 6. Town Manager

Council on Aging Trip Fund I move that the Town authorize a revolving fund under Massachusetts General Laws C. 44, S. 53E ½ for the Council on Aging for Fiscal Year The receipts to be credited to the fund shall be from the collection of fees from the implementation of a Senior Trip Program. Continued…

Council on Aging Trip Fund The Council on Aging shall be authorized to spend money from the fund for the purpose of providing transportation necessary for implementing a Senior Trip Program. Expenditures from the Senior Trip Program Revolving Fund shall be limited to $300,000 during Fiscal Year Town Manager Town Manager Council on Aging Council on Aging

Police Cruiser Fund I move that the Town authorize a revolving fund under Massachusetts General Laws C. 44, S. 53E ½ for the Police Department for Fiscal Year The receipts to be credited to the fund shall be from the collection of fees from the sale of used police cruisers. Continued…

Police Cruiser Fund The Police Department shall be authorized to spend money from the fund for the purpose of purchasing communication equipment for newly acquired police cruisers. Expenditures from the Police Cruiser Revolving Fund shall be limited to $10,000 during Fiscal Year Town Manager Police Department

Weights and Measures Fund I move that the Town authorize a revolving fund under Massachusetts General Laws C. 44, S. 53E ½ for the Inspection Department for Fiscal Year The receipts to be credited to the fund shall be from the Sealer of Weights and Measures.

Weights and Measures Fund The Inspection Department shall be authorized to spend money from the fund for the purpose of administering the services of the Sealer of Weights and Measures. Expenditures from the Weights and Measures revolving fund shall be limited to $9,000 during Fiscal Year Town Manager Town Manager

Spring 2006 TOWN MEETING April 24, 2006