City Departments Presented by: City Manager Robert M. Belmore School Department Presented by: Superintendent Jeni Mosca Fiscal Year Proposed Budget Budget Presentation April 6, 2014

My Thanks to all City Departments: department heads and staff for their efforts during the entire budget process, and to Finance Director Smith for his assistance in developing this proposed budget in accordance with the City Charter. Presentation’s focus aimed at providing an overview to the proposed City Budget & School Department Budget FY budget has been prepared in accordance with Section of City Charter “Limitation on Budget Increase” (a.k.a Tax Cap):  Real Estate tax revenue is limited to a factor no more than the change in the National CPI – Urban which is 1.6% for the calendar year 2014 » Plus, when annual changes in real estate values occur, real estate taxes may be further increased by applying the prior year’s tax rate to the net increase in new construction.  Annual Budget - Article VII and Article X of the City Charter  City Manager must present budget to Mayor and Council by March 15.  City Manager reviewed budget requests with department heads and key staff, adjusted departmental requests while maintaining the objective of keeping the budget efficiently funded to maintain core City services.  School Board’s adopted Budget from Superintendent’s proposal. 2

» FY15 Amount raise by taxes$ 25,918,596 » Add: Amount of increase for CPI (1.6%)$ 414,697 » Amount of increase for Net Construction Value$ 249,120 » Amount allowed to be raised by taxes FY16$ 26,582,413 » Estimated amount to be raised by taxes with proposed FY16 budget$ 26,471,807 » Estimated Amount Under Tax Cap$ 110,607 3

Estimated amount to be raised by Property TaxesCitySchool LocalSchool StateCounty Portion Total FY 16 Proposed Gross Budget16,811,09523,007,1412,003,3282,434,95544,256,519 Less: Estimated Revenues8,334,4219,758,69118,093,112 Add: Overlay42,000 War Service Credits266,400 Estimated Amount to be Raised by Property Taxes8,785,07413,248,4502,003,3282,434,95526,471,807 4

 City Departments-General Fund Budget  Gross G/F budget reflects a decrease of $1,065,696. However, this is due to a supplemental appropriation of $1,313,888 for infrastructure improvements. Excluding this one-time appropriation, the year over year operating change is and increase of $248,192 (2%).  Proposed budget includes one change in personnel and that is an increase from part-time to a full-time Code Compliance Officer.  In an effort to meet budget limitation, a number of capital items are not included in the proposed budget that may otherwise have been recommended:  Reduced amount for road resurfacing by $164,000  Reduced amount for sidewalk CRF by $5,000  Reduced amount for facilities maintenance reserve by $5,000  Eliminated a Police Cruiser (2 new cruisers were requested in CIP)  Eliminated request for Thermal Imaging Camera for FD  Eliminated request for a City Hall backup generator  Eliminated request for a DPW facility backup generator  Eliminated request for engineering for future downtown infrastructure improvements.  Eliminated request for improvements to Constitutional Way, estimated at $445,000. 5

 Salaries and Benefits increase of $253,334. Increase is broken down as follows:  Salaries and wages increase = $57,768  Health/Dental increase = $123,854  NH State Retirement increase = $55,251  Other payroll benefits (FICA, W/C, etc) increase = $16,461  Non-Tax Revenues remain flat with little-to-no growth. 6

7 Category14-15 Budget15-16 Proposed Taxes & Penalties25,902,19626,485,407 Licenses, Permits, Fees1,515,6251,585,625 Intergovernmental859,331 Education10,890,08210,074,831 Other Revenue2,461,3431,047,455 Total Revenue41,628,57740,052,649

8  Property Tax revenue continues to be the main source of support for City appropriations.  Non-tax revenues continue to remain level & show no increase.

9 RevenueAmount$ Change% Change Other Taxes (late fees, penalties & interest) 280,00030,00012% Licenses, Permits, Fees 1,585,62570,0004.6% Intergovernmental 859,33100% Income – from Departments 402,70500% Other 259,750(100,000)(28%) Transfers In - Use of Fund Balance 385,000(1,313,888)(77%) Total3,772,411(1,313,888)(26%)

 Fund  General Fund  Major Program Areas/Departments  School  County  Proprietary Funds  Water  Sewer  Solid Waste (pay-per-bag program) 10

11

12 Elected Leadership Mayor/Council, Civic Promotions, Community Support-Outside Agencies City Management City Manager’s Office, Legal services for all City Departments Finance and Administration Finance, MIS, City Clerk, Tax Collector, Library, Human Services (Welfare) Development Services Planning, Assessing, Building & Codes Economic Development, Recreation Public Safety Police & Fire Public Works & Utilities PW Administration, Street Maintenance, Solid Waste, Cemetery, Engineering Other Expenses Debt Service, Capital Leases, Superfund Monitoring, Contingency School County Capital Outlay CIP and other one-time appropriations Enterprise Funds Water, Wastewater, Pay-Per-Bag

13 DepartmentFY2016 ProposedIncrease/(Decrease) Elected Leadership$ 124,311 $ 1,300 City Management $ 469,446 $ 19,147 Finance & Admin$1,164,492 $ 26,900 Development Serv.$ 976,255 $ 76,356 Public Safety (Police & Fire) $5,597,951 $ 164,374 Public Works$2,088,565 $ (156,962) Debt Service/Leases$1,304,852 $ 71,826 Capital$ 336,054 $ 80,297 Other/Contingency$ 186,159 $(1,348,934) Enterprise Funds $4,562,010 $ (16,590)

14 Other appropriations are Contingency, transfer to capital reserve fund, transfer to debt service fund, and superfund landfill monitoring cost. For the purpose of this slide, Police and Fire are represented separately, however in the City budget they make up the Public Safety department and total 45% of the total budget.

15 Utilities are Telephone, Heat, Electric Capital is the Capital outlay budget plus $150,000 for road resurfacing projects.

16 Statistics do not include elected officials, call firefighters or seasonal employees. Seasonal employees are budgeted for recreation, snow removal, crossing guard, and call firefighters. Figures above are only G/F, and do not included 6 F/T employees recommended in water department, and 5 F/T employees at the wastewater treatment facility, and 1 F/T employee split between water and wastewater. Full Time G/F Employees = 83 Part Time G/F Employees = 7

17 City Hall Network Server Upgrade$ 19,868 Fire SCBA Replacement (Breathing apparatus 3 rd year of 4 year program)$ 39,630 Dept. of Public Works Plow Truck (308) down-payment on lease$ 20,820 Maple Street Culvert Replacement$155,000 Replace Portable Radios – Fire (1st year of 4 year program)$ 30,640 Buffumsville Road Drainage Improvements$ 30,000 Snow Equipment – DPW (sander)$ 5,125 Salmon Falls Road Bridge Engineering $ 5,000 (City Council has approved 1-new Police Cruiser NTE $30,000)

18 14/15 Actual 15/16 EstimatedChange City School - Local School - State County Total Property Tax Rate based on estimated assessed valuation of $833,500,000 Approximately $833,500 in expenditures represents $1 on the tax rate, ($83,500 =.10cents)

19

20 Average Residential Assessment = $191,000 Actual FY15 Tax Estimate FY16 Tax $ Change City$ 1,977$ 2,013$ 36 School$ 3,427$ 3,503$ 76 County$ 544$ 558$ 14 Total Property Tax Bill$ 5,948$ 6,074$ 126

» Recommendation is no change to utility rates effective July :  Anticipated revenues for FY 2016 are $2,557,000  Estimated FY 2016 operating surplus is approx. $420,000.  Current rates are $5.50 per 100 cubic feet of use.  An average bill, using 9,000 cubic feet per year – State DES avg. home, is $535. » Budget highlights  Decrease in overall budget is.3%. (three tenths of one percent)  Budget includes treatment facility with 5 full time staff and one shared staff (utility billing clerk).  CIP Projects – Sewer line replacement with the Maple Street culvert project and a tractor replacement at the Wastewater Treatment Facility. 21

» Recommendation is no change to utility rates effective July :  Anticipated revenues for FY 2016 are $2,345,000.  Estimated operating surplus in FY2016 is $306,000.  Current rates are $4.11 per 100 cubic feet of use.  An average bill, using 9,000 cubic feet per year – State DES avg. home, is $400. » Budget highlights  Proposed budget decrease of.7% (seven tenths of one percent)  CIP Projects – Replace the raw water pumps at the Water Treatment Facility and purchase a new vehicle for Water Distribution  Budget includes treatment facility with 3 full time staff, distribution with 3 full time staff, and one shared staff (utility billing clerk). 22

Somersworth School Department FY Budget Information

 CPI Index 1.6% for school year.  We can increase our current budget by about $331,628 (estimate) CPI Index 24

DESCRIPTIONFY 2015FY 2016CHANGE SALARIES11,123,79511,271,105147,310 HEALTH INSURANCE3,241,5793,893,231651,652 FICA851,249862,39611,147 NH RETIREMENT1,430,5611,582,325151,764 OTHER (DENTAL, LIFE, DISABILITY276,904279,8952,991 SAU 56 ASSESSMENT925,735925,056(679) TECHNOLOGY587,726578,870(8,856) RESOURCE OFFICER69,66772,2592,592 PT/OT CONTRACTED SERVICES249,169344,16995,000 TRANSPORTATION - REGULAR479,322484,2564,934 SPED ED OUT-OF-DISTRICT SERVICES1,626,8761,615,505(11,371) DEBT SERVICE2,012,5492,040,04427,495 TOTAL PROJECTED APPROPRIATION INCREASE1,073,979 TOTAL APPROPRIATION25,810,23226,884,2111,073,979 ESTIMATED DECREASE IN ROLLINSFORD TUITION REVENUE808,987 ESTIMATED DECREASE IN CASTASTROPHIC AID REVENUE6,264 ESTIMATED DECREASE IN REVENUE815,251 NET SCHOOL DEPARTMENT OPERATING BUDGET INCREASE1,889,230 FY BUDGET CHANGES 25

OBLIGATED FY APPROPORIATIONS TO MEET TAX CAP: 1. SALARIES - based on bargaining agreements $ 147, RETIREMENT BENEFIT - based on bargaining agreements & rate increase $ 151, FICA BENEFIT - based on bargaining agreements $ 11, DEBT SERVICES – bond principal and interest $ 27,495 SCHOOL DEPARTMENT FY OPERATING BUDGET – to meet tax cap $ 337,716 ALLOWABLE BUDGET INCREASE BASED ON TAX CAP $ 331, 628 CONTRACTUAL OBLIGATIONS AND REVENUE REDUCTIONS BEYOND TAX CAP LIMITATIONS 1. HEALTH INSURANCE $ 651, OTHER BENEFITS (Dental, Life, Disability) $ 2, RESOURCE OFFICER $ 2, PT/OT CONTRACTED SERVICES $ 95, TRANSPORTATION – REGULAR $ 4, ESTIMATED DECREASE IN REVENUE $ 815,251 TOTAL REDUCTIONS NEEDED TO MEET TAX CAP BUDGET $ 1,572,420 APPROPRIATIONS RECAP 26

PROJECTED ACTUAL NEEDED APPROPORIATIONS: SCHOOL DEPARTMENT FY OPERATING BUDGET $25,810,232 Add: FY PROJECTED APPROPRIATION INCREASE $ 1,073,979 SCHOOL DEPARTMENT FY OPERATING BUDGET $ 26,884,211 ALLOWABLE BUDGET BASED ON TAX CAP SCHOOL DEPARTMENT FY OPERATING BUDGET $25,810,232 Less: Estimated Decrease in Revenue ($ 815,251) Add: Tax Cap Allowance (estimate) $ 331, 628 SCHOOL DEPARTMENT FY OPERATING BUDGET (Based on Tax Cap) $25,326,609 SCHOOL DEPARTMENT FY OPERATING BUDGET CHANGE ($ 483,623) REQUIRED REDUCTIONS TO MEET TAX CAP BUDGET SCHOOL DEPARTMENT ACTUAL FY OPERATING BUDGET $ 26,884,211 SCHOOL DEPARTMENT FY OPERATING BUDGET (Based on Tax Cap) $25,326,609 SCHOOL DEPARTMENT FY OPERATING BUDGET TOTAL REDUCTIONS NEEDED TO MEET TAX CAP BUDGET $ 1,557,602 SUMMARY RECAP 27

PROPOSED REDUCTIONS:  CIP$ 80,000  Technology$ 80,000  SPED ESL $ 71,000  Transportation –Regular$ 62,000  Maintenance - Building$ 40,000  Maintenance Contingency$ 20,000  NWEA Testing$ 20,000  SHS Contracted Services$ 15,000  Elementary Head Teacher Stipends$ 12,151 Sub-Total Proposed Reductions$ 400,151 WHAT NEXT???? 28

REDUCTIONS CONTINUED$ 400,151 PROPOSED REDUCTIONS:  Substitutes$ 55,274  SPED - Contracted Services $ 43,500  Maple Wood - Supplies, Print Media, Postage $ 10,000  Idlehurst - Supplies, Print Media, computer repair, etc. $ 10,000  SMS - Supplies, Print Media $ 20,000  SHS – Supplies, Print Media$ 20,000 $ 158,774 Sub-Total Proposed Reductions $ 558,925 WHAT NEXT???? 29

REDUCTIONS CONTINUED$ 558,925 PROPOSED REDUCTIONS:  Teacher Retirees (5)$ 353,133  SAU Assessment$ 24,000  Substitutes – Elementary School$ 20,000  School Board Supplies – Finger Printing$ 5,000 $ 402,133 Sub-Total Proposed Reductions$ 961, 058 WHAT NEXT???? 30

REDUCTIONS - CONTINUED$ 961,058 PROPOSED REDUCTIONS:  Copiers$ 10,000  Welding$ 60,000  Business$ 92,000  1.0 Custodian$ 66,000  5.0 Para’s – Not replacing those left$ 145,044  Para’s – 7.5 to 7 Hours$ 18,000  Sec. 40 to 37.5 Hours a Week$ 25,500  MS Reading Specialist$ 97,000  Elementary Reading Specialist$ 83,000 $ 596,544 TOTAL PROPOSED REDUCTIONS$ 1,557,602 WHAT NEXT???? 31

 1.0 ESL  5.0 TEACHER RETIREES  1.0 Welding  1.0 Business  1.0 Custodian  5.0 PARAPROFESSIONALS  1.0 MS Reading Specialist  1.0 Elementary Reading Specialist 16.0 Total Proposed Staff Reductions TOTAL STAFF REDUCTIONS 32

OBLIGATED FY APPROPORIATIONS TO MEET TAX CAP: 1. SALARIES - based on bargaining agreements $ 147, RETIREMENT BENEFIT - based on bargaining agreements & rate increase $ 151, FICA BENEFIT - based on bargaining agreements $ 11, DEBT SERVICES – bond principal and interest $ 27,495 SCHOOL DEPARTMENT FY OPERATING BUDGET – to meet tax cap $ 337,716 ALLOWABLE BUDGET INCREASE BASED ON TAX CAP $ 331, 628 CONTRACTUAL OBLIGATIONS AND REVENUE REDUCTIONS BEYOND TAX CAP LIMITATIONS 1. HEALTH INSURANCE $ 651, OTHER BENEFITS (Dental, Life, Disability) $ 2, RESOURCE OFFICER $ 2, PT/OT CONTRACTED SERVICES $ 95, TRANSPORTATION – REGULAR $ 4, ESTIMATED DECREASE IN REVENUE $ 815,251 TOTAL REDUCTIONS NEEDED TO MEET TAX CAP BUDGET $ 1,572,420 APPROPRIATIONS RECAP 33