1. TOWN MANAGER FY2017 BUDGET PRESENTATION State of the Town BOARD OF SELECTMEN JANUARY 19, 2016

2. Town’s Fiscal Position – State of the Town Property values remain high Tax rate remains low AAA Bond Rating (affirmed June 2015) Reserves improved over FY2015 Major Capital projects completed OPEB funding strategy Budget Summits – Multi-year Forecasts Board of Selectmen Jan 19, 2016 2

3. Budget Summit -Year 4 Budget Summit – October 2015  Collaboration  Directive  Process/Calendar  Revenue/Expense Trends  Long-range Forecast  Fiscal Policies Board of Selectmen Jan 19, 2016 3

4. The FY2017 Budget New Budget Book Budget Narratives Budget Statements Staffing History Capital Improvement Plan Requests Budget Central – www.chatham-ma.govwww.chatham-ma.gov Any Budgets Updates Multi-year Financial Forecasts and Policies Fleet Listing Debt Schedule 4 Board of Selectmen Jan 19, 2016

5. Town’s Budgetary Components I. Balanced Budget: Revenue = Expense II. Revenue Outlook a. Tax Levy b. Local Receipts c. Other Available Funds III. Expenditures a. General Operating Budget b. Educational Assessments c. Water Operating Budget d. Five Year Capital Plan IV. Other Capital Items a. Separate Articles for Consideration Board of Selectmen Jan 19, 2016 5

6. I. Balanced Budget FY2015FY2016 $$ Change % Change Revenues Property Tax $ 31,140,639 $ 31,664,534 $ 523,8961.68% Local Receipts $ 5,949,674 $ 6,322,525 $ 372,8516.27% State Aid $ 1,143,639 $ 1,143,634 $ (5)0.00% Other Available Funds $ 2,694,239 $ 3,706,495 $1,012,25637.57% Water Fund $ 2,426,577 $ 2,337,808 $ (88,769)-3.66% Borrowing $ - $ 4,650,000 $ 43,354,768 $ 49,824,996 $6,470,229 14.92% Expenditures Municipal Departments $ 28,185,941 $ 28,804,701 $ 618,7602.20% School Department $ 8,517,054 $ 8,969,577 $ 452,5235.31% Water Department $ 2,725,486 $ 2,737,808 $ 12,3220.45% Capital Budget $ 1,775,000 $ 2,018,250 $ 243,25013.70% Assessments $ 1,095,510 $ 1,194,260 $ 98,7509.01% Other Articles $ 1,055,777 $ 6,100,400 $5,048,623477.81% $ 43,354,768 $ 49,824,996 $6,470,228 14.92% Board of Selectmen Jan 19, 2016 6

7. Balanced Budget (w/o borrowing) Board of Selectmen Jan 19, 2016 7 FY2015FY2016 $$ Change % Change Revenues Property Tax $ 31,140,639 $ 31,664,534 $ 523,8961.68% Local Receipts $ 5,949,674 $ 6,322,525 $ 372,8516.27% State Aid $ 1,143,639 $ 1,143,634 $ (5)0.00% Other Available Funds $ 2,694,239 $ 3,706,495 $ 1,012,25637.57% Water Fund $ 2,426,577 $ 2,337,808 $ (88,769)-3.66% Borrowing $ - $ 43,354,768 $ 45,174,996 $1,820,229 4.20% Expenditures Municipal Departments $ 28,185,941 $ 28,804,701 $ 618,7602.20% School Department $ 8,517,054 $ 8,969,577 $ 452,5235.31% Water Department $ 2,725,486 $ 2,737,808 $ 12,3220.45% Capital Budget $ 1,775,000 $ 2,018,250 $ 239,25013.70% Assessments $ 1,095,510 $ 1,194,260 $ 98,7509.01% Other Articles $ 1,055,777 $ 1,450,400 $ 398,62337.38% $ 43,354,768 $ 45,174,996 $1,820,228 4.20%

8. II. FY2017 Revenue 8 Board of Selectmen Jan 19, 2016

9. Revenues Allowable Growthestimated $916,600 Local Receiptsincrease (+7%) $412,275 Hotel/Motel: +$110,000 Meals Tax:+$ 25,000 Charge for Svc: +$130,000 Licenses:+$ 55,000 Other:+$ 92,000 9 Board of Selectmen Jan 19, 2016

10. Tax Levy (not Tax Rate) Property Tax FY2017 –Allowable Growth $31,619,544 vs $31,140,649 (all inclusive) 1.54% increase (projected) Local Receipts Increase over FY2016 Other Available Funds Increase over FY2016 State Aid Flat to FY2016 10 Board of Selectmen Jan 19, 2016

11. Estimated Local Receipts 11 Board of Selectmen Jan 19, 2016

12. Other Available Funds Free Cash - $3,398,000 Capital Budget Other ‘one-time’ purchase (i.e. property acquisition) Other capital articles Land Bank – $837,500 Used for existing Debt Service Expires FY2020 Waterways Improvement Fund - $275,000 Harbormaster Capital & Operating budget(s) PEG Access Funds - $25,000 Channel 18 Capital & Operating budget(s) Board of Selectmen Jan 19, 2016 12

13. III. FY2017 Budget Overview Operating (Town) $28,804,701 School Assessments $ 8,969,577 Water Budget $ 2,737,808 Capital Budget $ 2,018,250 13 Board of Selectmen Jan 19, 2016

14. FY2016 Expenses 14 Board of Selectmen Jan 19, 2016

15. Operating Budget FY2017 proposed -$28,804,701 Increase of $681,760 2.20% over FY2016 Note: Does not include Educational Assessments 15 Board of Selectmen Jan 19, 2016

16. FY2017 Operating Budgets FY2015Voted FY2016 TM Recommend FY2017% Change I. General Government $ 1,878,551 $ 1,940,839 $ 2,009,544 3.54% II. Public Safety $ 5,955,048 $ 5,540,427 $ 5,814,200 4.94 % III. Community Development $ 648,719 $ 755,676 $ 769,491 1.83% IV. Natural Resources $ 1,284,316 $ 1,314,231 $ 1,358,925 3.40% V. Public Works $ 4,708,533 $ 4,686,740 $ 4,709,493 0.49% VI. Community/Soc. Services $ 966,163 $ 1,054,931 $ 1,148,0978.83% Sub-total:$ 15,441,330$ 15,292,844$ 15,809,7503.38% Continued on next slide 16 Board of Selectmen Jan 19, 2016

17. FY2017 Operating Budgets FY2015Voted FY2016 TM Recommend FY2017% Change I – VI sub-total$ 15,441,330$ 15,292,844$ 15,809,7503.38% (From prior slide) VII. Debt Service $ 7,150,548 $ 7,860,558 $ 7,645,186-2.74% VIII. Employee Benefits $ 4,177,371 $ 4,423,164 $ 4,740,3907.17% IX. Undistributed/Reserve $ 449,519 $ 609,375 0.00% Total, I-IX $27,218,768$28,185,941$28,804,701 2.20% 17 Board of Selectmen Jan 19, 2016

18. Operating Budget – Highlights 18 BudgetAmountComments Human Services$55,675Monomoy Community Services & Others Eldredge Public Library$28,760Staffing Chamber of Commerce (ED) $7,000Visitors Booth Projects Administration/FacilitiesCombined under DPW Staffing (Seasonal)$31,500Nat. Resources Elections$11,195Presidential Election Cemetery$10,180Maintenance (mowing) Board of Selectmen Jan 19, 2016

19. Operating Budget – Requests Not Recommended 19 BudgetAmountComments Police Department$59,124School Resource Officer Fire Department$308,9605 Additional Firefighters Chamber of Commerce (ED) $6,000Marketing Community Development$7,666Additional Staff Hours Board of Selectmen Jan 19, 2016

20. Educational Assessments (Separate Articles) Monomoy Regional ▫ Overall Increase of 5.14% in assessment to Chatham ($425,523) ▫ Debt Service - $634,699 ▫ Required Minimum Contribution 20 Board of Selectmen Jan 19, 2016

21. Monomoy Regional School District 21 Board of Selectmen Jan 19, 2016

22. Cape Cod Regional Tech High School Decrease of 6 Chatham students At this time we are ‘level funded’ Await the Local Minimum Contribution & final Assessment 22 Board of Selectmen Jan 19, 2016

23. Cape Cod Regional Tech High School 23 Board of Selectmen Jan 19, 2016

24. Water Department Budget – Separate Article TOTAL: $2,737,808 or 0.41% increase $ 1,498,095 – Salary & Expenses 2.66% increase $ 958,809 - Debt Service -3.41% decrease $ 280,904 – Overhead/Betterment to Gen. Fund 1.43% increase Board of Selectmen Jan 19, 2016 24

25. 5 Year Capital Plan CAPITAL PROGRAM & BUDGET SUMMARY:FY2017 Dept RequestTMGR Recommend General Government 292,000230,000 Public Safety 413,200199,500 Community Development 12,500 Natural Resources 1,522,000374,000 Public Works (without Water) 1,973,167788,500 Equipment 1,196,750413,750 Total Town Funded Capital Budget5,409,6172,018,250 Funding Sources: Free Cash 1,250,000 Waterways Improvement Funds 44,000 Cemetery Sale of Lots 1,000 Shellfish Revolving PEG Access Fund 10,000 Prior Articles Capital Exclusion Raise & Appropriate 713,250 R&A Quint Total Funding Sources02,018,250 $ (5,409,617) $ - Board of Selectmen Jan 19, 2016 25

26. FY2017 Capital Plan $2,018,250 (7% of operating budget) OMBY Pier & Float Replacement $200,000 (matching funds for the Seaport Grant) Police Radio Upgrade $58,000 (mandate) Fire Heart Monitors $95,000 (mandate) Vehicle & Equipment Replacements - $413,750 Regular replacement reduces maintenance costs Review lease options Multi-functional (i.e. snow plowing) Board of Selectmen Jan 19, 2016 26

27. Capital Plan – Items Requested; Not Included in Annual CIP Article Airport improvements $302,000 Maintenance Building/Storage Hanger Green Hangar Door Replacement Stormwater Plan Bucket Loader w/Snow Blower & Broom (matching funds) Fish Pier Facility Improvements ($390,000 FY2017 Req.) Facility Renovations $215,000 Deck/Stairway/Electrical $150,000 Bulkhead Electrolysis Study$ 25,000 Fire Engine/Pumper $575,000 (Replacement of 1986) Board of Selectmen Jan 19, 2016 27

28. Capital Plan 28 Board of Selectmen Jan 19, 2016

29. IV. Other Articles – Pending Review Waterfront Property Acquisition+Engineering (Free Cash) Fish Pier Facility ‘Bond’ Article - $2,145,000 Airport Capital Improvements– $ 302,000 Fire Department Engine Pumper – $ 575,000 Water Capital Articles: Water Treatment Plant Wells 6&7 (possibly 9) – in addition to $ from 2014 ATM Art. 13 $1,000,000 - $3,250,000 Automatic Meter Readers $ 950,000 Wells 10 & 11 (FY2018?) $3,250,000 29 Board of Selectmen Jan 19, 2016

30. Airport Capital FY2017 ‐ FY2021 Capital Requests Items Not Eligible for AIP Grant funding: – Building Maintenance – Non ‐ Aviation Infrastructure – Compliance Items for Town Property/Buildings Board of Selectmen Jan 19, 2016 30

31. Other Articles – Discussion FUTURE ARTICLES Wastewater Infrastructure Continuance – May 2017 Water Capital Articles- May 2017 or 2018 Wells 10 & 11 $3,250,000 Water Mains$1,000,000 (every two years) Fish Pier Facility$1,320,000 programmed for FY2018 (not needed if Fish Pier ‘bond’ article approved) 31 Board of Selectmen Jan 19, 2016

32. What’s Next? Transmit to Finance Committee (BOS Recs no less than 30 days) Department Cost Center Scenario Provide updates as new information is received 32 Board of Selectmen Jan 19, 2016

33. FY2017 Budget Calendar January 19 Town Manager Recommended Budgets to BOS/Finance Committee February 9 Finance Committee Recommendation to BOS February 23 BOS Approved Budgets to FinCom March 25 Finance Committee Recommendations May 9 Annual Town Meeting 33

34. Calls By Hour of Day