BudgetProposalFiscalYear2019

FiscalYear2019• BudgetandAnnualGoals• FiscalFY2019Overview• Revenue• PropertyValues• Expenses– GeneralFund• Expenses– EnterpriseFund

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Goals– Budget• DeliverCoreFunctions:

• Adequatelyprovidefordeliveryofcorefunctionsoftownandschool

• Advanceeffectivenessofoperations• Improveoperationalefficiency

• Structurallybalancedbudget• Expendituresfundedbyrecurringrevenue• Maintainadequateundesignatedfundbalances• Sensibleinvestmentinassets

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Goals– Budget• JustifiableandAppropriate

• Maintainstabletaxrate• Beadequatelyjustifiableincomparisontoappropriateeconomicindicatorsandcomparablecommunities

ThroughoutthepresentationitemsthatcorrespondtoBudgetGoalswillbeidentifiedwithanotationof(BG)

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Goals– Annual• SupportLong‐TermPlanningandGrowthManagementObjectives• Enhanceeconomicdevelopmentactivitiestoattract,supportandsustainappropriatelocaleconomicinvestment

• EnhanceFinancialStability• DevelopoptionstoresolveSewerEnterpriseFundchallenges• ResolvetheitemsassociatedwiththeLibrary,includingbecomingatowndepartment,andthelong‐termfacilityneeds

• ContinuetoImproveOrganizationalEfficiency• Prioritizeemployeesafetyandreductionofworkerscompensationcosts,takestepstobeginreducingthetown’sexperiencemodification

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Goals– Annual• IncreasePublicAwarenessandEngagement

• Continuetoimprovetowngeneratedcommunicationsandensuretheyareconcise,accurateandaccessibleforavarietyofaudiences

• AdvanceOn‐GoingInitiatives• Streamlineoperations,improveservicedelivery,increaseaccesstoonlineservices

ThroughoutthepresentationitemsthatcorrespondtoAnnualGoalswillbeidentifiedwithanotationof(AG)

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Long‐RangePictureBalancedeconomicgrowthwillbekeytostabilizingthetaxrateandretainingKittery’sstrongeconomicdiversityandidentity

Tax Levy Valuation (in thousands) Mil Rate

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ComparabilityFY19proposalisjustifiablecomparedtocomparablecommunities (BG)• KitteryexpensesareconsistentwithcommunitiesofsimilarpopulationinYorkCounty.

• Kitterypropertyvalueslagcomparatively,resultinginahighertaxperthousanddollarsofvaluation.

$5.00

$7.00

$9.00

$11.00

$13.00

$15.00

$17.00

$19.00

$0

$1,000

$2,000

$3,000

$4,000

Kennebunk Kittery OldOrchardBeach

Wells

TaxRate

Valuation

Millions

Valuation TaxRate

PropertyValues• $12MIncreaseinProjectedValue.Vacant,multi‐family,commercialincreased.Industrial,residentialportionofmixedusedecreased

• Valuationvs.Market~89%

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Property Type FY18 FY19 Variance% 

VarianceVacant 21,927,100  24,037,700  $   2,110,600  9.63%Condominium 91,078,200  97,693,100  $   6,614,900  7.26%3‐Family 9,138,700  9,717,500  $       578,800  6.33%Apartment 11,069,500  11,705,600  $       636,100  5.75%Commercial $  222,498,878  $ 226,444,578  $   3,945,700  1.77%2‐Family  54,396,500  55,261,600  $       865,100  1.59%Single Family 923,994,900  938,465,000  $ 14,470,100  1.57%Other 89,175,188  87,536,688  $  (1,638,500) ‐1.84%Exempt 72,464,900  72,162,200  $     (302,700) ‐0.42%Industrial 17,947,866  17,846,966  $     (100,900) ‐0.56%Mobile Home 46,134,000  45,027,100  $  (1,106,900) ‐2.40%Residential Mixed Use 4,883,122  4,466,822  $     (416,300) ‐8.53%

Property‐ Value

Median Home Listing May 20181# of 

Homes for SaleKittery $400,000 71Kennebunk 299,000 130Wells 370,000  242Old Orchard Beach 255,000  110

• Valuegrowthiscriticaltothestabilizationofthetaxrate• Appropriateeconomicdevelopmentisneededtoreduceburdenonhomeowners• Commercial,manufacturingisdesirable

• Affordablehousingoptionswillbecriticalinthecomingyears

1. Source: Realtor.com 10

Comparability– EconIndicators

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

FY16 FY17 FY18 FY19

Budget vs. CPI & ECI

Municipal Budget CPI ECI

FY19proposalisjustifiablecomparedtoeconomicindicators(BG)

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FY19– GoalsReflectedinBudget• Recalibrate(BG)

• Removenon‐sewercostsfromthefund,applysewer‐relatedcoststothesewerfund• FixrevenueoffsetforTIFDistricts• Removenon‐capitalcostsfrompublicsafetyimpactfund• Continuetoaddressitemsthathistoricallyexceedthebudgettoreducetheneedforspendingfreezes

• Enhanceeconomicdevelopmentactivitiestoattract,supportandsustainappropriatelocaleconomicinvestment (AG)

• ReorganizationofPlanningDepartmentandinvestmentinplanningexpertise• Investmentinroadsthroughcapitalforinfrastructureneededtosupportdevelopment• AdvanceaFireDepartmenton‐callprogramtomakesurefireresponsecanmeettheneedsofthecommunity

• DevelopoptionstoresolveSewerEnterpriseFundchallenges(BG,AG)

• Showbudgetwithfulldebtserviceprincipalandannualcapitalneeds• AddressfutureLibraryfacilityneeds (BG,AG)

• Begindesignprocessforrenovationandexpansionproject• Streamlineoperations,improveservicedelivery,increaseaccesstoonlineservices(AG)

• Fundnewonlinepermittingsystem

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Revenue‐ Sources

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

ACTUALFY15

ACTUALFY16

ACTUALFY17

BUDGETEDFY18

PROPOSEDFY19

Property Tax Excise Tax Other Revenue

65%ofmunicipalrevenueisfromPropertyTax

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Revenue– PropertyTaxAllocation

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KITTERYSCHOOLDISTRICT~$0.62

MUNICIPAL&SCHOOLCAPITAL~$0.07

OTHER

COUNTYTAXES~$0.04MUNICIPALOPERATIONS&TIF~$0.27

Revenue‐ Summary• Overallgrowthinmunicipalnon‐propertytaxrevenue~$496,611~9.58%

• Recreationprogramsareindemand‐ $107,645 (BG)

• InterestIncomeduetonewinvestmentpolicy‐ $19,000(BG)

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REVENUE PROJECTIONS

Budget

FY18

Projected

FY19Variance

Recreation $874,355 $982,000 $107,645SW Fees & Fines $188,000 $180,000 ($8,000)Fort Foster Fees $183,000 $195,000 $12,000Harbormaster Fees & Fines $121,450 $135,140 $13,690Dispatch Income $91,350 $93,360 $2,010

Revenue– Non‐RecurringUsenon‐recurringrevenuejudiciouslyandfornon‐recurringexpenditures(BG)• FY19Revenueincludesproposed$243,978transferfromChannel22PEGFunds.Channel22PEGrevenueisrecurringinexcessofexpenditureshoweverproposedtransferisnotrecurring

• TransferwillbeusedtooffsetincreaseincapitalreservesandTIFreserveaccounts

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CHANNEL 22 PEG FY15 FY16 FY17Projected

FY18

Beginning Fund Balance $231,553  $297,866  $367,821 $432,002 

Revenue $106,130  $110,333  $113,719  $109,357 

Expense ($39,817) ($40,378) ($49,538) ($60,000)

NET $297,866 $367,821  $432,002  $481,359 

Held for Capital Reserve ($200,000)Available for Transfer $281,359

Expenses– Capital• RightofWay– Increased$200,000(BG,AG)

• Fundedtocontinuetomeetannualpavementmanagementplanestimateswithouthavingtoseekbonding

• LibraryBuildingDesign‐ $100,000(AG)• Advancedesignintotheschematicphase

• KPAFacility– ($50,000)• SeekingfundingthroughJunewarrantarticle

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Expenses‐ Capital

 $‐

 $100,000

 $200,000

 $300,000

 $400,000

 $500,000

 $600,000

 $700,000

 $800,000

 $900,000

 $1,000,000

Vehicles & Equip Infrastructure Buildings Technology Open Space Regulatory Other

Capital by Category

 ACTUAL FY16  ACTUAL FY17  ACTUAL FY18 PROPOSED FY1918

WagesTownwasstillinnegotiationsatthetimetheFY18budgetwasadopted.AsaresulttheFY18comparativewagesdonotreflectthecostoflivingormeritincreasesawarded.FY19reflectstwoyearsworthofcostoflivingandmeritincreases,resultinginanoverstatedannualprojectionofwageincreases.

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Expenses‐ Shared

• SHAREDEXPENSEShavebeencombinedintoonebudgetandincludeshealth,dental,FICA,retirement,workerscompandotherinsurances,andunemployment

• SharedExpensesincrease‐ $319,813• StateRetirementincrease$101,330.MainePERScontributionrequirementincreased0.6%forpublicsafetyand0.4%fornon‐publicsafety

• MedicalInsuranceincrease$115,130.Ratesincreased2%forunionand7%fornon‐union;includeschangesinbenefitplansandFTSecretaryinTMofficeandanticipatedFTinDPW

• RetiredEmployeeBenefitsincrease$77,459.Includesnewlyretiredandanticipatedretirements

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Expenses– Departments• Administration‐ $57,191increase

• Movedpart‐timeutilitybillingclerktoSewerFund– ($26,032)(BG,AG)

• Movedfull‐timeclerkfromSewerFund‐ $47,982• Triosoftwareupgradeandsupport‐ $4,000(AG)• MaintenanceofBldg/Groundsrecalibration‐ $4,500(AG)

• Debt&Interest‐ $21,127decrease

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Expenses– Departments• MiscellaneousExpenses‐ $47,008decrease

• ReducedSalaryandPositionAdjustment– ($70,000)• Anticipatesomeadjustmentsfornewhires,reclassifications,andaddressingparityamongpositions

• Electricitysavingsfromnewsupplycontracts– ($10,000)• Countytaxfinalpaymentforfiscalyearadj.endedresultinginanoveralldecrease– ($64,567)

• TIFFinancingPlancalculationcorrectedresultinginsignificantincrease‐ $64,099

• ComputerRepairincludesnewpermittingsoftwareandrecalibration– $17,000

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Expenses– Departments• Planning&CodeEnforcement‐ $42,487increase

• Reorganizeddepartment,broughtonDirectorofPlanning,fillingTownPlanner,leavingvacantAsstTownPlanner‐ $30,604(AG)

• Assessing‐ $1,671increase• PersonalPropertyrevaluationphasetwoinbudget(BG)

PlanningandCodewillbefocusedoninthecomingyear: RecodificationofTitle16 RezoningandpromotionofdevelopmentofformerBusinessPark

AffordableHousingInitiatives StateRoadredevelopmentMallCorridorredevelopment Achievingfair,consistent,predictableservicethroughstreamliningandtechnology

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Expenses– Departments• Fire‐ $28,004increase

• Includesanewon‐callprogramtopayfirefighterstobeinKitteryandreadytorespondduringtimesofyear,andonsuchdaysasismostchallengingtogetsufficientresponse‐ $18,144(AG)

• Machine&EquipmentMaintenanceincreaseforbuildingneeds‐$4,500

• Tires&Tubesincreaseforanticipatedreplacementneeds‐ $2,600

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2

4

6

8

10

12

14

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Average Firefighters Per Call by Month

2016 2017

Minimumresponse staff 

needed

Expenses– Departments• Police‐ $110,513increase

• Negotiatedphysicalfitnessstipendestimate‐ $5,400• Overtimeincreasecontinuingtoadjusttoreflectactualspendingtrends‐ $15,000 (BG)

• DEAOvertimedecreasingastownphasesoutofarrangement–($16,297)

• Outsidedetailsreconfiguredtoreflectonlythoseeventsorneedsrequestedbytownentities.“Paiddetails”orderedandpaidforbyprivateentitiesmovedtootherfundsaccount– ($1,220)(BG)

• Telephone&InternetincludescostspreviouslychargedtoPublicSafetyImpactforMitchellSchoolRadioTower‐ $1,800(BG)

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Expenses– Departments• PublicWorks‐ $93,323combinedincreaseHighway‐ $57,564increase

• IncludingFY18saltspending,theaverageannualcostis$139,500‐ $30,000(BG)

Parks&Beaches‐ $9,916increase• AdditionalseasonalemployeeatFortFostercontinuing,providesadditionalmaintenancesupport,monitoringandenforcementofrules

ResourceRecovery‐ $25,843increase• Transitionyear‐round“seasonal”positiontofull‐timeoperatorposition‐ $16,239(BG)

• Changesinrecyclingmarketarehavingrippleeffectsonwastedisposalservices‐ $11,000

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Expenses‐ Departments

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$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

FY15 FY16 FY17 FY18 FY19

Resource Recovery Revenue v. Expenses

Revenue Expense

*Includesbenefitcostsforpurposeofcomparison.

Expenses– Departments• KitteryCommunityCenter/Recreation‐ $28,966increase

• SavingsanticipatedfromretirementofDirector• IncludesFacilityMaintenanceSupervisoraddedinprioryear‐$3,320

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$0

$200

$400

$600

$800

$1,000

$1,200

FY15 Actual FY16 Actual FY17 Actual FY18 Budget FY19 Projected

Thou

sand

s

Recreation/KCC Revenue v. Expenses

Revenue Expense

*Includesbenefitcostsforpurposeofcomparison.

Expenses– Departments• Harbormaster– KitteryPortAuthority‐ $725decrease

• Reversedonpart‐timeapproach,addingbacktohelpprovidethecoverageneededatfacilitiesduringseason– $4,000

• Riggingincreasedtoreflectcostsoffloat‐in/float‐outandseasonalplacementofbuoys‐ $3,100.(AG)

• Seekingauthorizationfromvotersfor$450,000inunencumberedfundstoreplaceGovStpier.

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 $100,000

 $110,000

 $120,000

 $130,000

 $140,000

FY15 Actual FY16 Actual FY17 Actual FY18 Budget FY19 Projected

Revenue Expense

*Includesbenefitcostsforpurposeofcomparison.

Expenses‐ Departments

• Library‐ $11,521increaseintownsubsidy• TownandLibrarycommitteetonegotiatetransitiontoatowndepartment

• CommunityAgencies‐ $2,600decrease• FundingthoseorganizationsthatmostdirectlyserveKitteryresidents

• AdultEducation‐ $6,175increase• Town’sportionofhealthinsurancecostincreases

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Expenses– EnterpriseFund• Revenueestimatedoncurrentrates;resultsinanunbalancedbudget.Varianceis($448,998)

• Sewer‐ $165,912increase• Debtreducedforamortizationofolderbonds‐ ($80,191)• Shiftingfromrelyingonone‐timefundsforcapitalexpenditures‐$200,000(BG,AG)

• Swappedtaxcollectorpositionandutilitybillingclerkpositionstoreflectactualfunctions– ($19,666)(AG)

• OtherProfessionalServicesincreasedforcracksealingandpavementmgmt ‐ $6,300

• SludgeRemovalcontractualexpensesincreasing‐ $9,355

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WrapUp• Totaltownportionofpropertytaxlevyincrease$351,662

• Budgetis$142,975below LD‐1limit• Projectedmilrateis$16.99• Projectedannualincreaseis$161basedontheaveragehome,orapproximatelya2.9%increase.• Averagetaxincreaseisconsistentwith3.1%ECI

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Questions

ThankyoutotheTownDepartmentHeadsandstafffortheireffortsindevelopingtheFY2019

budget.

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