Proposed FY Budget Town of Denmark Presentation to Board of Selectmen February 11, 2015

Direction of Selectboard Maintain service levels Prepare accurate budget Allowance for 3% Cost of Living Adjustment (COLA)

Factors Influencing Overall Budget Increase in Health Insurance of 7% Increase in Workers Compensation of 96% Increase in Property and Casualty of 20% Upgrading 1 PT position in DPW to FT, Benefitted Shifting Volunteer FD wage scale from $15/call to $11/hour 3% Cost of Living Adjustment for all Town Employees State Revenue Sharing at FY ‘14-’15 levels County Tax up 3.3% to $216,049 School Tax not yet set, but SAD 72 est. at $1.9 Million, up 2%

How is the Budget Set? Total expenses from Town, School and County added together. Revenues from Town, State, Grants, etc. reduces Town side. County and School figures are already including these revenue sources. Total Budget amount divided by Taxable Valuation of the Town, multiplied by 1,000 equals the Total Tax Rate:

Formula Total Budget (Town, County, SAD 72) - Revenues Total Town Assessed Valuation X 1,000 (.000) = Mill Rate $3,061, $299,134, = X 1,000 = $10.23

Summary of Budget as Proposed Overall Town Budget of $1.32 Million County Budget of $216k SAD 72 Budget of $1.9 Million Total Combined Budget of $3.4 Million Townwide Taxable Valuation of $299 Million Estimated tax rate of $10.23 (up from $8.98, or $1.25 from previous year)

Proposed FY Town Budget Est. Tax Rate Summary Total Operating Budget:$1,004, Total Capital Budget:$ 318, Total Municipal Budget:$1,323, ( +1.43%) Est. Municipal Revenues:$ 378, ( +0.18%) Total Proposed FY Town Budget (Minus revs.):$ 945, Total Proposed FY Town Budget (Minus revs.):$ 945, Total FY County Commitment:$ Total Estimated FY MSAD Commitment:$1,900, Total Projected FY Commitment:$3,061, Estimated Tax Rate FY Total Municipal Valuation:$299,134, Total Projected FY Commitment:$ 3,061, Total Est. Tax Rate (Comm./Valuation x 1,000):$ Tax Rate Breakdown Town Portion of Est. Tax Rate:$ 3.16 County Portion of Est. Tax Rate:$ 0.72 School Portion of Est. Tax Rate:$ 6.35 Total Est. Tax Rate FY $ 10.23

Tax Rate by Allocation – Governments

Town Budget: By Category

Administration:$ 290, ( -3.53%) Assessing:$ 20, ( 0.00%) Transfer Station:$ 113, ( +4.45%) Public Works:$ 407, (+10.40%) Fire Department:$ 46, (+26.49%) Recreation:$ 5, (+24.22%) Street Lights:$ 4, ( 0.00%) Vehicle Fuel:$ 52, ( 0.00%) Ambulance Service:$ 8, ( 0.00%) General Assistance:$ 5, ( %) Legal Services:$ 10, ( 0.00%) Animal Control:$ 3, ( 0.00%) Property and Vehicle Insurance:$ 19, (+19.64%) Building Repair and Maintenance:$ 6, ( %) Fireworks:$ 4, ( 0.00%) Planning Board:$ 3, ( 0.00%) Board of Appeals:$ 2, (+33.33%) Conservation Commission:$ 1, ( %) Total Operating Budget:$1,004, ( +4.55%) Capital Improvement Projects/Purchases:$ 289, ( -7.59%) Unanticipated Expenses:$ 12, ( %) Outside Agencies:$ 16, (+11.14%) Total Capital Budget:$ 318, ( -7.30%) Total Operating Budget:$1,004, Total Capital Budget:$ 318, Total Municipal Budget:$1,323, ( +1.43%)

Budget Details in Excel Pages of Budget Document

Town Revenues v. Total Commitment – Taxation

Factors to Consider in Summary Tax Rate in FY ’14 -’15 was reduced by approx. $300k in transfers from surplus If similar surplus applied to current budget, resultant tax rate would be $9.23 Town budget is up 1.43% year over year (+$18,640.69) Overall Town portion of tax rate is $3.16, or 31% of total rate (SAD 72 is at $6.35 or 62%, County at $0.72 or 7%)

Town Budget History

Tax Rate History in Denmark

Impact on Average Homeowner Average Home Value in Denmark: $200,000 Tax Bill in at $8.98 rate = $1, Tax Bill in at proposed rate of $10.23 = $2, Difference of $250/yr. or $20.83/mo.

Next Steps: Board of Selectmen Schedule joint Meeting with Budget Committee – March 2015 Board of Selectmen and Budget Committee Review budget, inquire of Dept. Heads and Town Manager for info, formulate their budget recommendations – March-April 2015 Once BOS and BC have recommendations, Selectmen schedule Public Hearing on Budget (Not less than 10 days prior to Town Meeting, or May 27th) – April - May 2015 Once Public Hearing held, BOS approves Budget to be placed on Town Warrant as budget articles. – May 2015 Warrant is printed up with Annual Report (Approx. May 13 th ) and available not less than 3 days prior to Town Meeting (June 3 rd ). – May 2015 Town Meeting (June 6 th ) – Budget is voted on and approved by residents. – June 2015 New Fiscal Year Begins July 1 st, 2015

FY Budget Availability Hard copies and electronic copies will be sent to Budget Committee with request for first Joint Meeting Hard copies and electronic copies will be distributed to Department Heads Full budget with Executive Summary, etc. will be available for viewing/download on Town web site: Hard copies for public available at Town Offices

Questions ???