TOWN OF BOURNE FINANCIAL REVIEW FISCAL YEAR 2014

Town of Bourne Fiscal Year 2014 Slides General Fund Highlights General Fund Revenues Budget vs. Actual State Aid & Local Receipts Local Receipts Budget vs. Actual by graph General Fund Appropriations & Expenditures General Fund Departmental Expenditures by percentage ISWM & Sewer Enterprise Highlights ISWM Revenues Budget vs. Actual ISWM Appropriations & Expenditures Sewer Revenues Budget vs. Actual Sewer Appropriations & Expenditures

Highlights to General Fund Revenues & Expenditures Budget to actual for local receipts tighter due to change in Cherry Sheet Charge increases. Revenues received were actually higher than budgeted resulting in a net surplus of $1,076,627. Of the excess revenues $528,041 were from one time sources. Departmental expenditure appropriations were less than budgeted resulting in a net turn back by departments of $608,379. The snow & ice account had a deficit of $398,560 which is being raised on the Tax Rate recap for FY2015. The expenditure appropriation turn back would be 209,819 without raising the deficit.

General Fund Revenues Budget vs. Actual - State and Local Receipts Town of Bourne General Fund Revenues Budget vs. Actual - State and Local Receipts Fiscal Year 2014 FROM THE COMMONWEALTH Budget Actual Over(Under) Veteran's Benefits 96,415.00 $93,101.00 ($3,314.00) Exemptions: Veterans, Blind, Surviving Spouse $107,711.00 $109,023.00 $1,312.00 State Owned Land $521,715.00 $0.00 Unrestricted Govt Aide $1,269,209.00 Chapter 70 $4,825,238.00 Charter School Reimbursement $421,455.00 $462,350.00 $40,895.00 Total from the Commonwealth $7,241,743.00 $7,280,636.00 $38,893.00 FROM LOCAL RECEIPTS Difference Motor Vehicle Excise $2,156,274.00 $2,475,978.61 $319,704.61 Other Excise (Hotel & Boat) $130,000.00 $142,949.66 $12,949.66 Penalties/Interest on Taxes $300,000.00 $282,175.80 ($17,824.20) Payment In Lieu of Taxes $25,000.00 $23,381.92 ($1,618.08) Departmental Revenue - Marinas & Other Marina Revenue $1,100,000.00 $1,186,279.69 $86,279.69 Other Departmental Revenue $265,000.00 $342,438.63 $77,438.63 Licenses and Permits $565,000.00 $665,561.71 $100,561.71 Fines and Forfeits $158,614.26 $28,614.26 Investment Income $45,000.00 $31,449.10 ($13,550.90) Other Federal Revenue $60,000.00 $16,487.00 ($43,513.00) Other Miscellaneous Income $45,896.00 $573,937.01 $528,041.01 Total Local Receipts $4,822,170.00 $5,899,253.39 $1,077,083.39 GRAND TOTAL ACTUAL STATE & LOCAL RECEIPTS $12,063,913.00 $13,179,889.39 $1,115,976.39

Local Receipts Budget vs. Actual FY2014

Miscellaneous Revenues Miscellaneous revenues are generally one time sources of reimbursements or unanticipated revenues. Miscellaneous Revenue Totals   McKinney Vento Transportation 126,235.00 Veterans Expenditure Reimburse 10,820.00 Hurricane Sandy 13,967.52 Steamship Park Lot Rental 7,790.00 Benefit reimb Grant position 6,492.78 Police Recruit Training 3,834.83 Falmouth Road Sale 175,000.00 Special Election Reimbursement 21,727.00 Blizzard Reimbursement 112,969.39 Sale of dirt 30,926.40 Barnstable County 57,103.83 Miscellaneous other 7,070.06 Summary Detail of large deposits 573,936.81

Revenues Over/Under Budget and Expenditure Turn back History State Revenue Over Under Budget Local Receipts Expenditure Turn backs 2010 -$9,526 $525,361 $612,968 2011 -$25,592 $453,640 $1,406,482 2012 $8,146 $882,013 $1,635,873 2013 -$217,165 $1,353,923 $831,020 2014 $38,893 $1,076,627 $608,379

Appropriations & Expenditures Year Ended June 30, 2014 TOWN OF BOURNE GENERAL FUND Appropriations & Expenditures Year Ended June 30, 2014   Balance 7/1/2013 Appropriation Expenditures Transfers & Budget Amendments Closed to Fund Balance Encumbered Balance 6/30/2014 General Government $665.43 $2,964,648.00 $2,796,094.58 $55,365.36 $176,588.14 $47,996.07 Public Safety $1,146.10 $8,778,362.00 $8,507,194.95 ($74,326.59) $196,519.00 $1,467.56 Education $140,319.23 $22,912,131.00 $22,945,255.69 $20,842.26 $86,352.28 Public Works $104.00 $2,240,885.00 $2,492,431.52 ($27,656.98) ($279,456.34) $356.84 Human Services $183.56 $1,046,628.00 $1,079,695.42 $53,827.73 $20,943.87 Culture & Recreation $1.34 $823,659.00 $799,639.46 $4,000.00 $27,946.87 $74.01 Debt Services $0.00 $3,655,314.00 $3,608,392.80 ($45,841.95) $1,079.25 Shared Costs $248.00 $11,138,459.00 $11,463,326.83 $378,297.43 $45,355.45 $8,322.15 General Fund Total $142,667.66 $53,560,086.00 $53,692,031.25 $343,665.00 $209,818.50 $144,568.91

ISWM & Sewer Revenue & Expenditure Highlights FY2014. ISWM Budgeted Revenues were reduced at fall STM by 2.3 million due to revenue shortfall in FY2009. Actual revenues received were higher by just over 1 million dollars. ISWM’s budget was increased by 450,000 at the STM in May to cover additional costs. ISWM ended FY2014 with Free Cash approval of $5,326,025 down 120,717 from FY2013. ISWM set aside additional funds in the amount of $887,981 to Post Closure accounts. Sewer budgeted revenues were short by $43,866. Sewer departmental expenditures were less than budgeted by $81,483. The budget was amended by a $50,000 transfer from Retained Earnings at the Oct 2013 STM to for operation expenses Sewer Enterprise Fund ended with a Free Cash approval of $677,255 slightly higher than FY2013 of 633,476.

INTEGRATED SOLID WASTE MANAGEMENT Revenues - Budget vs. Actual TOWN OF BOURNE INTEGRATED SOLID WASTE MANAGEMENT Revenues - Budget vs. Actual Year Ended June 30, 2014 Fiscal 2014 Budget Fiscal 2014 Actual Revenue Over (Under) % User Charges: $ 10,481,757.00 $ 10,658,637.78 $ 176,880.78 101.69% Other Departmental revenue Recycling Revenue $ 250,000.00 $ 259,414.52 Miscellaneous $ - $ 12,458.38 Total Other Departmental $ 271,872.90 $ 21,872.90 108.75% Investment Income Total Investment Income $ 15,000.00 $ 13,917.12 ($ 1,082.88) 92.78% Total $ 10,746,757.00 $ 10,944,427.80 $ 197,670.80 $101.84%

INTEGRATED SOLID WASTE MANAGEMENT Appropriations & Expenditures TOWN OF BOURNE INTEGRATED SOLID WASTE MANAGEMENT Appropriations & Expenditures Year Ended June 30, 2014 Balance 7/1/2013 Appropriation Expenditures Transfers In (Transfer Out) Closed to Fund Balance Encumbered Balance 6/30/2014 Operating Budget: Salaries $ 1,922,662.00 $ 1,760,966.25 $ 161,695.75 Expenses $ 21,375.95 4,027,150.00 3,842,930.53 57,225.96 148,369.46 Debt Service 2,109,500.00 Reserve Fund 200,000.00 $200,000.00 - Host Community Fee 600,000.00 631,307,91 (31,307.91) Sub-Total $ 8,859,312.00 $ 8,344,704.69 $ 387,613.80 $ 148,369.46 Indirect Costs Total $ 1,887,445.00 $ 1,887,445.00 $ -

Revenues - Budget vs. Actual Year Ended June 30, 2014 SEWER ENTERPRISE FUND Revenues - Budget vs. Actual Year Ended June 30, 2014 Fiscal 2014 Budget Fiscal 2014 Actual Revenue Over(Under) Budget % User Charges: Sewer User Fees: $ 806,740.56 Sewer User Charges Added to Taxes $ 83,643.24 Total User Charges $ 805,000.00 $ 890,383.80 $ 85,383.80 110.61% Sewer Betterment Receipts: Sewer Assessment Paid in Advance $ 1,380.42 Apportioned Sewer Betterment: $ 32,983.95 Committed Interest: $ 2,907.18 $ 25,000.00 $ 37,271.55 $ 12,271.55 149.09% Other Departmental Revenue: $ 21,086.00 $ 35,030.41 $ 13,944.41 166.13% Investment Income $ 1,000.00 $ 1,696.64 $ 696.64 169.66% Retained Earnings $ 150,000.00 $ 150,000.00 Total $ 1,002,086.00 $ 1,114,382.40 $ 112,296,40 111.21%

Appropriations & Expenditures Year Ended June 30, 2014 TOWN OF BOURNE SEWER ENTERPRISE Appropriations & Expenditures Year Ended June 30, 2014 Balance 7/1/2013 Appropriation Expenditures Transfers In (Transfer Out) Closed to Fund Balance Encumbered Balance 6/30/2014 Operating Budget: Salaries $ $ 166,225.00 $ 163,438.42 $ 2,786.58 Expenses $ 133,575.00 $ 78,045.31 $ 55,529.69 Wareham - Operation Expense $ 273,000.00 $ 315,326.51 $ 50,000.00 $ 7,673.49 Wareham - Capital Assessment $ 188,478.00 $ 188,477.53 $ 0.47 Debt Service $ 53,281.00 $ 52,788.20 $ 492.80 Reserve Fund $ 15,000.00 15,000.00 Sub-Total $ 829,559.00 $ 798,075.97 $ 81,483.03 Indirect Costs Total $ 122,527.00 $ (122,527.00) -

A Review of the Town’s Financial Reserves & Policies Town of Bourne A Review of the Town’s Financial Reserves & Policies

Town of Bourne Financial Policies & Reserve Slides Financial Reserve Highlights Free Cash History Free Cash History by Graph Stabilization Fund History Stabilization Fund History by Graph Unreserved Fund Balance & Stabilization Reserves to Policies Unreserved Fund Balance & Stabilization Reserves by Graph Town Financial Policies

Financial Reserve Highlights The Town changed its policies in April 2012 from the requirement of maintaining a Unreserved Fund Balance of 5% of the General Fund Operating Budget to maintain a Free Cash Balance of 5% of the GFOB. Also changed was striving to maintain a debt service budget of at least 5% of the GFOB to striving to maintain a debt service budget of 3% of the GFOB. This was a result of the Middle School debt being refunded. Certified Free Cash as of July 1, 2014 is $4,897,346. Compared to previous year of $5,700,480 . Down $803,134 after using $2,004,000 towards FY2015 budget an increase of $604,000 from previous two years. Free Cash is $2,129,840 over minimum policy. With town meeting approval of transfers totaling $950,000 back to the Stabilization fund it brought the fund to $3,517,265 still under the minimum policy amount by $357,244. Net difference in Free Cash & Stabilization policy amounts excess over minimum is $1,772,596 for both. The Unreserved Fund/Free Cash Balance has been above the town’s policy of 5% of the GFOB for the past five years. The Debt Service budget has been within the policy for past 3 years. The Employer Health Insurance Trust Fund continues to fall within the financial policy.

Free Cash History Fiscal Year Certified Free Cash at Beg of FY   Total Voted During Fiscal Year Used for Following Fiscal Years Budget Used for Current Fiscal Years Budget Used for Capital Transfer to Stabilization Used for Articles 2003 $2,580,217.00 $ 1,881,770.53 $771,877.00 $614,177.00 $492,575.00 $3,141.53 2004 $1,613,903.00 $ 1,439,111.00 $562,736.00 $201,900.00 $624,475.00 $50,000.00 2005 $1,890,990.00 $ 1,890,990.00 $700,829.00 $933,079.65 $248,853.00 $8,128.35 2006 $1,107,031.00 ($667,967.36)  ($700,829.00) $32,761.64 2007 $3,911,948.00 $ 1,459,656.57 $553,850.00 $30,749.72 $205,270.00 $587,684.85 $82,102.00 2008 $4,262,471.00 $ 1,662,338.00 $650,478.00 $181,981.00 $700,000.00 $129,879.00 2009 $5,252,603.00 $ 2,034,697.39 $859,245.00  $22,500.00 $244,000.00 $887,462.00 $21,490.39 2010 $4,897,336.00 $ 1,854,907.32 $1,780,737.00 $74,170.32 2011 $4,347,334.00 $1,340,687.00 $800,000.00 $429,375.00 $8,000.00 $88,312.00 $15,000.00 2012 $5,099,679.00 $1,908,922.00 $1,400,000.00 $144,395.00 $169,527.00 $195,000.00 2013 $6,510,383.00 $3,241,255.99 $464,500.00 $594,391.37 $782,364.62 2014 $5,700,480.00 $2,879,446.00 $2,004,000.00 $107,800.00 $450,000.00 $317,646.00 2015  $4,897,346.00

Free Cash History

Stabilization Fund History Fiscal Year Stabilization fund Beginning of FY Year Used for Budgets during fiscal year Voted to Stabilization fund during fiscal year Interest earned in fiscal year 2003 $2,413,671.00 ($600,000.00) $50,000.00 $43,234.00 2004 $1,906,905.00 ($400,000.00) $26,295.00 2005 $1,583,200.00 ($200,000.00) $183,603.00 $36,024.00 2006 $1,602,827.00 $400,000.00 $62,736.00 2007 $1,665,563.00 ($769,898.00) $282,213.00 $70,348.00 2008 $1,248,226.00   $1,287,684.00 $76,628.00 2009 $2,612,538.00 $887,462.00 $51,847.00 2010 $3,551,847.00 ($88,312.00) $39,671.00 2011 $3,503,206.00 $88,312.00 $13,320.00 2012 $3,604,838.00 ($152,013) $22,652.00 2013 $3,475,477.00 ($950,000.00) $21,525.00 2014 $2,547,002.00 $950,000.00 $20,263.00 2015 $3,517,265.00

Stabilization Fund History

Capital Stabilization Fund History Fiscal Year Stabilization fund Beginning of FY Year Transfers out during fiscal year Transferred to Stabilization fund during fiscal year Interest earned in fiscal year 2008 $28,842.33 $.00 2009   $16,130.52 $312.53 2010 $45,285.38  $404,366.57 $212.01 2011 $449,863.96 $1,471.14 2012 $451,335.10 234,223.44 $955.79 2013 $686,514.33 ($500,000.00) 166,154.35 $1,337.09 2014 $354,005.77 ($350,000.00) $31,307.91 $320.57 2015 $35,634.25

Unreserved Fund Balance/Free Cash & Stabilization Fund to Policy Fiscal Year GFOB 5% of GFOB UFB/Free Cash Over/Under 2004 $ 39,530,776 1,976,539 2,607,956 631,417 2005 $ 42,508,734 2,125,437 2,649,273 523,836 2006 $ 44,747,188 2,237,359 1,635,351 (602,008) 2007 $ 46,322,892 2,316,145 4,345,409 2,029,264 2008 $ 49,078,376 2,453,919 4,920,356 2,466,437 2009 $ 49,986,882 2,499,344 6,499,553 4,000,209 2010 $ 50,165,988 2,508,299 6,246,746 3,738,447 2011 $ 50,930,917 2,546,546 5,373,266 2,826,720 2012 $ 49,875,934 2,493,797 6,067,772 3,573,975 2013 $ 51,928,453 2,596,423 6,510,383 3,913,960 2014 $ 53,560,086 2,678,004 5,700,480 3,022,476 2015 $ 55,350,130 2,767,507 4,897,346 2,129,840 Fiscal Year GFOB 7% of GFOB Stabilization Over/Under 2004 $ 39,530,776 2,767,154 1,906,905 (860,249) 2005 $ 42,508,734 2,975,611 1,583,200 (1,392,411) 2006 $ 44,747,188 3,132,303 1,602,827 (1,529,476) 2007 $ 46,322,892 3,242,602 1,665,563 (1,577,039) 2008 $ 49,078,376 3,435,486 1,248,226 (2,187,260) 2009 $ 49,986,882 3,499,082 2,612,538 (886,544) 2010 $ 50,165,988 3,511,619 3,551,847 40,228 2011 $ 50,930,917 3,565,164 3,503,206 (61,958) 2012 $ 49,875,934 3,491,315 3,604,838 113,523 2013 $ 51,928,453 3,634,992 3,475,477 (159,515) 2014 $ 53,560,086 3,749,206 2,547,002 (1,202,204) 2015 $ 55,350,130 3,874,509 3,517,265 (357,244)

UFB/Free Cash & Stabilization to Financial Policy

Town of Bourne Financial Policies Free Cash: To maintain an annual Free Cash Balance of at least 5% of the General Fund Operating Budget. Stabilization Fund: To maintain a Stabilization Fund balance of at least 7% of the General Fund Operating Budget Employer Health Insurance Trust Fund: To hold a reserve in the Health & Dental dedicated fund an amount to be not less than four(4) months of average costs of Health & Dental assessments including all administrative fees. Additionally at no time shall the fund hold less than one million six hundred thousand dollars(1,600,000) in reserves at the close of any fiscal year. Debt Service: The Town will strive to budget at least 3% of the general fund annual operating budget (excluding debt service) on debt service for capital maintenance and equipment costs. This amount does not include the debt for Community Preservation, Enterprise Funds, debt exclusions or self supported debt.