Special Town Meeting Spring 2018 MILLVILLE Special Town Meeting Spring 2018 Where would you start?? In your personal life, you might look at your source(s) of income and your bank account.

Town is at Fiscal Crossroads How Did We Get Here & Why An Override Now ?

THERE IS REALLY NO NEW GROWTH

Total Assessed Value: A Decade Of Decline

ARE RESIDENTS OVERTAXED? Millville: $4,537.44

REGIONAL COMPARISON TAX RATES YEAR UPTON (2,100) SHERBORN (4,119) HOPEDALE (5,911) * MILLIS (7,891) MENDON (5,839) BLACKSTONE (9,026) HOLLISTON (13,547) UXBRIDGE (14,137) MILLVILLE (3,190) 2010 12.77 17.44 13.52 13.64 12.47 14.05 16.31 12.55 11.79 2011 14.64 17.72 14.39 15.41 13.67 15.51 17.94 13.72 12.61 2012 15.03 18.22 14.86 15.49 14.42 16.92 18.32 15.10 13.17 2013 16.72 19.72 16.34 15.22 17.99 18.62 16.28 15.11 2014 16.95 20.34 16.29 17.06 16.02 18.83 19.88 17.31 17.18 2015 20.32 16.58 17.00 16.01 19.48 19.38 17.40 17.24 2016 18.56 20.57 16.83 17.25 19.34 18.79 17.57 16.91 2017 18.16 20.46 17.29 18.42 17.75 19.26 18.52 16.96 16.11 2018 17.23 19.30 17.58 18.02 19.49 18.67 17.17 16.56 * Split Rate Town

This Is Not A Spending Problem Flat Revenues & Growth

Nominal Growth in Town Budget

Why? The State support of student transportation and Chapter 70 essentially remains flat as these expenses increase.

Contribution Trends to BMRSD Shows where some of our reserve goes Indicates year to year contribution Reflects Average Annual Increase ~4.58% Town is limited in raising its levy capacity to meet such increases by only 2.5% every year.

KEEPING AFLOAT WITH ONE TIME REVENUES Utilities Agreements $30,925 Tax Title & RE Demands $180,000 Capital Equipment $160,000 Renegotiate Agreements $50,000

Use of One Time Revenues *** It is recommended by the Massachusetts Municipal Association and the Government Finance Officers Association that budgets not be balanced with the use of one time revenue sources, including Stabilization, Free Cash & Overlay Surplus.

GOING AFTER GRANTS Grants FY2017/18 Amounts Total $1,543,834 MassWorks $1,000,000 Complete Streets $229,462 Demolition $20,000 Shared Planning $30,000 Financial Mgt Practices $40,000 Information Technology $57,000 OSRP $11,000 DPW Road Safety $2,987 META Green Community $12,500 Parks/Playgrounds $100,000 Public Safety/Emergency $40,885 Total $1,543,834 GOING AFTER GRANTS

3 YEAR BUDGET PROJECTION FY2018 % of Budget Projected FY2019 Projected FY2020 Projected FY2021 General Governement 7.88% 533,283 541,139 545,773 Public Safety 14.46% 967,082 1,007,254 1,050,606 Unclassified Education 0.79% 49,709 Regional Education 46.50% 3,264,052 3,551,615 3,708,674 Regional Vocational 9.13% 637,600 669,479 702,953 Public Works 4.50% 364,377 386,201 408,071 Health & Human Services 5.43% 351,633 362,112 370,840 Culture & Recreation 0.85% 54,369 55,307 56,280 Other Unclassified Shared Costs 6.97% 451,220 473,641 497,699 Total Operational 6,673,324 7,096,458 7,390,607 Total Special Articles 147,500 137,500 Net Operating Surplus (Loss) (687,738) (940,444) (1,075,299)

Why Can’t We Cut To Balance It? Library, Senior Center & Veterans $79,736 $207,698 Fire & EMT Services Library, Senior Center & Veterans $289,641 $71,197 Town Hall All Depts. $439,074 Highway Police & Dispatch

What Do We Have To Do To Fix The Problem And Avoid Receivership?

TOP PRIORITY: Must Right-Size Our Budget Set Priorities 3 Year Financial Forecast & Plan Improve Financial Practices Pursue Grants Collections & Delinquency Follow Capital Plan & Maintain Existing Infrastructure BMRSD: 3 Year Budget Plan

WE Need to couple A right-sized budget with a Reset Tax Rate SPECIAL TOWN MEETING WE Need to couple A right-sized budget with a Reset Tax Rate