1. Wakefield’s Financial Picture Finance Committee
April 2017

2. Agenda
Past
Receipts
Accounts
Spending
Present
Future

3. Past 26 year average annual increase is 4.0%; 5 year average is 4.4%

10. Excludes Enterprise Accounts and Chapter 90 (Roads)

11. 10 year average increase: Health 2.7%, Ret 4.0%, NE Reg Voc 8.5%
(Health budget now includes $1.6 million toward Post Retirement Health Trust)

12. Personal Services Budgets - $000
FYE12
FYE17
Annual Inc %
Schools
21,940
29,159
5.9%
Fire
3,334
4,446
Library
875
1,147
5.6%
Police
3,529
4,749
6.1%
DPW
2,438
3,257
6.0%
General Gov’t
1,256
1,739
6.7%
Human Services
188
347
13.0%
Total
33,560
44,844

13. Budgets - $000 Schools 26,639 36,266 6.4% Fire 3,416 4,672 6.5%
FYE12
FYE17
Annual Inc %
Schools
26,639
36,266
6.4%
Fire
3,416
4,672
6.5%
Library
1,141
1,566
Police
3,807
5,114
6.1%
DPW
3,660
4,780
5.5%
Gen Gov’t
1,745
2,309
5.8%
Total
40,408
54,707
6.2%

14. FYE18 – Budget Priorities
Public Safety
Public Infrastructure
Drainage
Business Development
Social Programs
Education
Buildings
Reserves

15. FYE18
Our reserves have recovered to an acceptable level – 10% of Budget
Some services have been enhanced
Contemplated Capital projects total over $35 million for next 5 years
Meals and Hotel taxes continue to give us a lift
Significant Snow and Ice Overdraft for FYE18 - $200,000
Walton School
Public Safety Building

16. FYE18
Outstanding debt and interest payments for projects is about $66.1 million (Dolbeare, Woodville, Public Safety, Senior Center, Recreation, Public Land, Galvin)
Retirement Unfunded Liability is $63.1 million as of 7/1/2017
OPEB Unfunded Liability was $79.2 million as if 7/1/2016
Total ~ $200 million

17. FYE18 - Revenues
Expected increase in Tax Levy of $2.346 million (3.6%) to $ million, includes $1,000,000 of New Growth
Increase in State Aid of $683,000, or 7.3%, to $10 million
Local Receipts of $7.5 million
Free Cash of $1.5 million
WMGLD payment of $878k
Available funds withdrawal of $217k
School Building Administration payment of $927k
Debt Exclusion for the Galvin of $2.4 million
Total Revenues: $89.1 million

18. FYE18 - Expenses General Government $2.4 million Public Safety
Human Services
$0.8 million
Public Works
$5.8 million
Schools
$37.9 million
Library
$1.6 million
Vocational Schools
$1.2 million
Unclassified
$1.7 million
Benefits
$16.3 million
$78.4 million

19. FYE18 - Articles Capital $2.2 million
Debt Service (including automatic $1M)
$5.3 million
Refuse
$1.8 million
Storm Water
$0.1 million
Roads & Sidewalks
$0.3 million
Overtime (Fire)
$0.2 million
Radio Transmitters (Police)
Overlay
$0.6 million
State & County
$1.6 million
$12.3 million

20. FYE18 Expected increase in Tax Levy: $2,346,000, 3.6%
Increase in State Aid of $683,000, or 7.3%
Current increase in spending for:
Salaries: $2,311,000
Retirement: $160,000
Healthcare: $348,000
Capital: $61,000
Medicare: $26,000
Articles: $606,000
Vocational Schools: $36,000
Reductions in other line items, including:
State and County Assessments: $133,000
Workers Compensation: $34,000
Street Lights: $25,000
Department Budgets increased $3,365,000, or 4.5%

21. FYE18 - Capital Portion Prior Leases - IT $460,347 21%
Prior Leases – Fleet /Facilities
$255,453
12%
Fleet
$317,670
15%
Facilities
$661,000
31%
Roads
$90,000 4%
Miscellaneous
$100,000 5% IT
$52,000 2%
Total from Tax Levy
$2,156,300
100%
Water
$139,732
Sewer
$132,000

22. FYE18 - Capital Portion Equipment $324,000 15% Vehicles $667,953 31%
Replacements
$71,000 3%
(Flooring, Windows, Roofs,
Ceilings, Doors, etc.)
Painting and Repair
$505,100
23%
Security
$76,000 4%
Studies $0 0%
Software / IT
$512,347
24%
$2,095,323
100%

23. Total Budgeted Expenditures for FYE17 were $86,485,000
Total Proposed Expenditures for FYE18 are $90,586,000
Total increase of $4,101,000 or 4.7%
Total Revenue for FYE18 is projected to be $89,134,000
Difference of $1,452,000 covered by Free Cash

24. Challenges
Reduced building and field maintenance, including minimal effort to control energy costs through building improvements (some restoration occurred in the past 4 years)
Poor maintenance of many roads, sidewalks, and a few fields
Storm water control efforts will need to be expanded
Wakefield High School
Identified Capital Projects total over $34 million from FYE19 to FYE22

25. Opportunities
Eversource powerline to increase Tax Revenue of about $1.5 million starting in FYE19
Last Dolbeare bond payment of $51,667 in FYE20
Last Woodville bond payment of $565,863 in FYE21
Last Senior Center bond payment of $99,323 in FYE21
Last Public Safety bond payment of $591,600 in FYE22
Total reduction between FYE17 and FYE23 is about $1.6 million

26. Forecast

27. Q & A