Town of Newbury
Finance Committee Meeting
Tuesday Jan. 25, 2011 4:00 pm, Town Hall
Meeting Agenda
In Attendance: Gene Case, Bob Connors, Larry Guay, Marshal Jespersen, Dick Passeri, Frank
Remley (Chair)
Ex-Officio: Chuck Kostro, Town Administrator/Finance Director
1. December 13 Meeting Summary: unanimously approved without revision
2. December YTD revenue and expenditure summaries: (Finance Director)
a. Revenues: Real Estate tax collections are $521,428 ahead of FY 10 due in a
large part to accelerated back tax collections. However, interest and penalties
are below FY 10 by $25,898 because the back taxes being collected are from
recent years and these have less interest attached to them.lower back taxes
mean lower interest penalties. Motor vehicle excise tax collections are
$15,562 ahead of FY 10 which is a good sign that they may now be picking
up. Overall, revenues are $529,405 ahead of FY 10 as of 12/31/10, which is
encouraging. This bodes well for positive free cash for the end of FY11.
b. Expenditures: As of 12/31/10 overall general fund expenditures are 46.31%
of budget for FY 11 (benchmark is 50% as of month six). However,
substantial debt payments are due in January, which will temporarily change
this ratio. Also, snow and ice charges have not yet been booked. They are
expected to be large. As usual at this time of year, the Town will have to
borrow about $600,000 in working capital until January tax bills are mailed,
and 3rd quarter collections occur. Other highlights:
• Police expenses are a bit high due to cruiser lease payments due in
January for 2011.
• Newbury fire protection flat rate expenditures up as a result of
prepayment.
• Highway labor costs are down due to retirement of an employee.
• Health insurance costs are running higher than expected and may be as
much as $35,000 higher than budgeted for the year.
• In addition to the Reserve Fund, substantial funds should be available
in the Town Administrator’s salary line-item and the Highway Wages
line-item.
• The Health Insurance line-item is projected to be $35,000 short as a
result of the cut made in the fall. The Reserve Fund will be needed to
cover this shortfall. Street Lighting will also be short as the estimated
savings from turning off lights has not been as high as anticipated.
3. Reserve fund update transfers: there were no transfers requested at this time.
4. FY 12 Budget Proposal presented to BOS on 1/11/11: (Finance Director)
a. Estimated Revenues: The Finance Director reviewed his current revenue
estimate for FY 12 (EXHIBIT 1). Overall he is projecting a $32,093 drop
from FY 11. Of note are:
• Debt Exclusion: $77,608 reduction due to some debt retirements. (NB
such retirements reduce taxes).
• State Aid: $37,662 reduction based on the Governor’s initial budget.
• Local Receipts: down $110,775 largely due to $51,000 less in
Penalties and interest (result of accelerated back tax collections); a
$37,900 decline in fees due to the shift of inspectional services to a
revolving fund in FY 12 where 80% will accrue to the revolving fund,
and 20% to general fund; and a $12,750 drop in fines and forfeitures.
• Fund Reserves: no additional use of free cash or the stabilization
fund, or other funds as these are expected to have been depleted.
b. Estimated expenditures: Exhibit 2 shows the current projected FY 12
budget. The projected budget for FY 12 will be $8240 less than for FY 11.
The reduction is driven by reduced revenues projected for FY 12. In addition
to this, an FY 10 audited free cash deficit of $117,000 must be funded in FY
12; and, because of projected cuts in staff, an allowance for $80,542 in
unemployment charges has been made. (Newbury is a “pay as you go” town
with respect to unemployment.) Highlights include:
• General Government: a $52,313 increase mostly due to an increase
in reserve fund from $35,000 to $90,000; a $7,500 increase in the
Tree Warden expense; $5,000 increase in bldg. maintenance; $6,250
increase in account expense (software upgrade); and a $4250 increase
in insurance expense largely due to vacant buildings.
• Public Safety: Cuts of $215,800 are projected largely from a $184,300
cut in Police wages (equivalent of 4 FTE’s); $5000 cut in ambulance
service to Byfield Fire; and a $25,000 cut in inspectional service fees
due to the move of these fees to a revolving fund. Of note is an
increase of $20,000 in street lighting expense as the reduction in FY
11 was less than anticipated.
• Education costs: estimated to increase by 2.8% or $250,500.
• Public Works: cut of $30,034 resulting of the loss of one FTE.
• Human Services: will be cut by $43,814 overall, including $25,000
cut in BOH expense; and $18,814 cut in COA wages and expense.
• Culture and recreation: will be reduced by $46,297 almost solely
due to a cut of $45,922 in Library wages.
• Debt Service: $75,965 less due to the retirement of excluded debt.
• Employee benefits: increase of $100,858 (10.6%) as a result of a
16.7% increase in Essex County Retirement costs; a 6.1% increase in
health insurance; and an 11.9% increase in Medicare expense.
5. Town Administrator departure: The Administrator’s departure officially occurs on
March 18. However, he will actually depart on March 3 to utilize accrued vacation.
Before exiting town service, he will submit a letter with his final recommendations
on future actions and improvements to be considered by the BOS, and his successor.
A search for a new town administrator has begun with advertisement and formation
of a selection committee. Frank Remley has been appointed to represent the FinCom
on this committee.
6. A motion was then made to adjourn, seconded and approved.
Next Meeting: Tuesday, February 15, 7:00 pm, Byfield Fire
REVENUES
Fiscal Year
2011 Recap
Fiscal Year
2012
Estimates
Amount
Change % Change
Prior year Levy 11,592,302 11,937,186
+ 2.5% of prior year 289,808 298,430
New Growth 55,076 50,000 (5,076) -9%
Override to Prop 2 1/2 - - -
Subtotal 11,937,186 12,285,615 348,430 3%
Debt Exclusion 1,195,509 1,117,901 (77,608) -6%
Maximum Allowable Levy 1 3,132,695 13,403,516 270,822 2%
Cherry Sheet 697,662 660,000 (37,662) -5%
SBA Payments 658,214 658,214 - 0%
State Aid 1,355,876 1,318,214 (37,662) -3%
Motor Vehicle Excise 838,000 835,000 (3,000) 0%
Other Excise 7,375 6,500 (875) -12%
Penalties & Interest 116,000 65,000 (51,000) -44%
Payment in Lieu of Taxes 68,000 55,000 (13,000) -19%
Fees 257,900 220,000 (37,900) -15%
Licenses and Permits 202,000 215,000 13,000 6%
Special Assessments - - - 0%
Fines and Forfeitures 107,750 95,000 (12,750) -12%
Investment Income 6,750 7,500 750 11%
Misc. Recurring 7,000 5,000 (2,000) -29%
Misc. Non-Recurring 4,000 - (4,000) -100%
Total Local Receipts 1,614,775 1,504,000 (110,775) -7%
Free Cash 100,000 - ( 100,000) -100%
Wetlands Protection Fund 45,000 - (45,000) -100%
Stabilization Fund - - 0%
Overlay Surplus - - - 0%
Special Assessments 771,045 761,568 (9,477) -1%
TOTAL REVENUES 17,019,391 16,987,298 (32,093) 0%
EXHIBIT 1: FY 12 PROJECTED REVENUES
EXHIBIT 2: FY 12 PROJECTED EXPENDITURES
FY2011 FY12 % $
Account Name Budget Budget Change Change
TOWN MEETING MODERATOR 100.00 100.00 0.0% -
SELECTMEN SALARIES 15,000.00 15,000.00 0.0% -
TOWN ADMINISTRATOR SALARY 115,000.00 1 15,000.00 0.0% -
TOWN ADMINISTRATOR EXPENSE 5,000.00 2,500.00 -50.0% (2,500.00)
SELECTMEN SECRETARY SALARY 45,815.94 45,815.94 0.0% -
SELECTMEN EXPENSE 5,000.00 2,500.00 -50.0% (2,500.00)
FINANCE COMMITTEE EXPENSES 425.00 1,000.00 135.3% 575.00
RESERVE FUND 35,000.00 90,000.00 157.1% 55,000.00
TREASURER-COLLECTOR DEPARTMENT SALARIES 81,000.00 79,000.00 -2.5% (2,000.00)
TREASURER-COLLECTOR DEPARTMENT EXPENSES 44,875.00 41,000.00 -8.6% (3,875.00)
ACCOUNTANT SALARY 43,348.30 48,348.30 11.5% 5,000.00
ACCOUNTANT EXPENSES 16,275.00 10,000.00 -38.6% (6,275.00)
ASSESSORS SALARIES 8,500.00 8,500.00 0.0% -
ASSESSOR'S WAGES 45,355.38 45,355.38 0.0% -
ASSESSOR'S EXPENSE 50,000.00 49,718.14 -0.6% (281.86)
AUDIT TOWN BOOKS 25,000.00 25,000.00 0.0% -
LEGAL SERVICES 75,000.00 75,000.00 0.0% -
PERSONNEL BOARD 500.00 1,000.00 100.0% 500.00
TOWN CLERK SALARY 49,165.33 49,165.33 0.0% -
TOWN CLERK WAGES 34,535.00 34,535.00 0.0% -
TOWN CLERK EXPENSE 9,000.00 6,335.00 -29.6% (2,665.00)
ELECTION 10,000.00 8,450.00 -15.5% (1,550.00)
REGISTRARS OF VOTERS SALARIES 750.00 750.00 0.0% -
CONSERVATION AGENT SALARY 50,421.00 50,421.00 0.0% -
CONSERVATION DEPARTMENT WAGES 11,640.72 11,640.72 0.0% -
PLUM ISLAND BEACH MANAGEMENT - - 0.0% -
CONSERVATION DEPARTMENT EXPENSE 4,500.00 3,000.00 -33.3% (1,500.00)
TREE WARDEN SALARY 3,000.00 3,000.00 0.0% -
TREE WARDEN EXPENSES - 7,500.00 - 7,500.00
CLAM FLATS TOWN WAGES 4,000.00 4,000.00 0.0% -
PLANNING BOARD SALARY 59,291.00 59,291.00 0.0% -
PLANNING BOARD EXPENSE 3,615.00 2,500.00 -30.8% (1,115.00)
MERRIMACK VALLEY PLANNING COMMISSION 2,215.08 2,215.08 0.0% -
PICTOMETRY AND MIMAPS 3,000.00 3,000.00 0.0% -
ZONING BOARD OF APPEALS WAGES 900.00 900.00 0.0% -
ZONING BOARD OF APPEALS EXPENSES 250.00 250.00 0.0% -
IT SERVICES - - - -
PUBLIC BUILDING MAINTENANCE EXPENSE 90,000.00 95,000.00 5.6% 5,000.00
TOWN REPORTS 1,500.00 250.00 -83.3% (1,250.00)
INSURANCE EXPENSE 155,750.00 1 60,000.00 2.7% 4,250.00
TOTAL GENERAL GOVERNMENT: 1 ,104,727.75 1,157,040.89 4.7% 52,313.14
EXHIBIT 2: FY 12 PROJECTED EXPENDITURES
FY2011 FY12 % $
Account Name Budget Budget Change Change
POLICE WAGES 1 ,109,300.40 9 25,000.00 -16.6% (184,300.40)
POLICE EXPENSES 131,000.00 1 31,000.00 0.0% -
Sub- Total Police: 1,240,300.40 1,056,000.00 -14.9% (184,300.40)
BYFIELD FIRE PROTECTION - WAGES 102,025.12 1 02,025.12 0.0% -
BYFIELD CALL FIRE - WAGES 74,571.16 74,571.16 0.0% -
BYFIELD FIRE PROTECT - FLAT RATE 74,750.00 74,750.00 0.0% -
NEWBURY FIRE PROTECTION - WAGES 91,809.99 91,809.99 0.0% -
NEWBURY CALL FIRE - WAGES 74,571.16 74,571.16 0.0% -
NEWBURY FIRE PROTECT - FLAT RATE 74,750.00 74,750.00 0.0% -
FIRE ALARM MAINTENANCE 7,000.00 7,000.00 0.0% -
AMBULANCE SERVICE 15,000.00 10,000.00 -33.3% (5,000.00)
Sub- Total Fire: 514,477.43 5 09,477.43 -1.0% (5,000.00)
BUILDING INSPECTOR SALARY 58,849.33 58,849.33 0.0% -
ASST BUILDING INSPECTOR 9,400.00 9,400.00 0.0% -
BUILDING INSPECTOR WAGES 11,640.72 11,640.72 0.0% -
BUILDING INSPECTOR EXPENSE 4,800.00 4,000.00 -16.7% (800.00)
SEALER WEIGHTS AND MEASURES SERVICE FEES 2,500.00 2,500.00 0.0% -
INSPECTIONAL SERVICES FEES 25,000.00 - -100.0% (25,000.00)
ANIMAL CONTROL OFFICER SALARY 20,984.00 20,984.00 0.0% -
ANIMAL CONTROL EXPENSE 2,700.00 2,000.00 -25.9% (700.00)
PARKING CLERK - SALARY 2,220.00 2,220.00 0.0% -
PARKING CLERK - EXPENSES 400.00 400.00 0.0% -
GREEN HEAD CONTROL 2,970.00 2,970.00 0.0% -
MOSQUITO CONTROL 1.00 1 .00 0.0% -
HYDRANT SERVICE 15,000.00 15,000.00 0.0% -
Sub- Total Regulatory: 156,465.05 129,965.05 -16.9% (26,500.00)
TOTAL PUBLIC SAFETY: 1 ,911,242.88 1,695,442.48 -11.3% (215,800.40)
EXHIBIT 2: FY 12 PROJECTED EXPENDITURES
FY2011 FY12 % $
Account Name Budget Budget Change Change
TRITION REGIONAL OPERATION ASSESSMENT 8 ,622,289.00 8,880,957.67 3.0% 258,668.67
TRITION REGIONAL CAPITAL ASSESSMENT 276,713.00 265,000.00 -4.2% (11,713.00)
WHITTIER REGIONAL ASSESSMENT 118,124.00 121,667.72 3.0% 3,543.72
TOTAL EDUCATION: 9 ,017,126.00 9,267,625.39 2.8% 250,499.39
HIGHWAY LABOR WAGES 433,841.72 408,807.72 -5.8% (25,034.00)
HIGHWAY MAINTENANCE EXPENSE 175,000.00 160,000.00 -8.6% (15,000.00)
SNOW REMOVAL - WAGES 0.0% -
SNOW REMOVAL - EXPENSE -
CONSULTING ENGINEER EXPENSE 10,000.00 - -100.0% (10,000.00)
STREET LIGHTING 25,000.00 45,000.00 80.0% 20,000.00
TOTAL PUBLIC WORKS: 738,841.72 708,807.72 -4.1% (30,034.00)
BOARD OF HEALTH - WAGES 58,108.75 58,108.75 0.0% -
BOARD OF HEALTH - EXPENSES 225,000.00 200,000.00 -11.1% (25,000.00)
COUNCIL ON AGING - WAGES 65,568.66 51,724.60 -21.1% (13,844.06)
COUNCIL ON AGING - EXPENSE 7,750.00 2,780.00 -64.1% (4,970.00)
VETERAN'S DIRECTOR STIPEND 3,000.00 3,000.00 0.0% -
VETERAN'S SERVICES 15,000.00 15,000.00 0.0% -
TOTAL HUMAN SERVICES: 374,427.41 330,613.35 -11.7% (43,814.06)
TOWN LIBRARY - WAGES 196,562.44 150,640.00 -23.4% (45,922.44)
TOWN LIBRARY - EXPENSES 52,500.00 52,500.00 0.0% -
HISTORIC COMMISSION EXPENSE 650.00 650.00 0.0% -
375TH ANNIVERSARY COMMITTEE 375.00 - -100.0% ( 375.00)
MEMORIAL DAY 750.00 750.00 0.0% -
TOTAL CULTURE & RECREATION: 250,837.44 204,540.00 -18.5% (46,297.44)
COST OF BONDING 17,500.00 16,350.40 -6.6% (1,149.60)
LONG TERM DEBT PRINCIPAL 1,817,007.68 1,806,061.09 -0.6% (10,946.59)
SHORT TERM DEBT INTEREST 14,668.07 10,362.50 -29.4% (4,305.57)
LONG TERM DEBT INTEREST 507,472.95 447,908.77 -11.7% (59,564.18)
TOTAL DEBT SERVICE: 2,356,648.70 2,280,682.76 -3.2% (75,965.94)
95,000.00 95,000.00
EXHIBIT 2: FY 12 PROJECTED EXPENDITURES
FY2011 FY12 % $
Account Name Budget Budget Change Change
STATE ASSESSMENTS (CHERRY SHEET) 225,731.00 225,731.00 0.0% -
TOTAL INTERGOVERNMENTAL: 225,731.00 225,731.00 0.0% -
ESSEX REGIONAL RETIREMENT SYSTEM 385,515.22 449,856.58 16.7% 64,341.36
HEALTH INSURANCE 532,732.95 565,000.00 6.1% 32,267.05
DENTAL INSURANCE
EMPLOYEE LIFE INSURANCE 1,300.00 1,300.00 0.0% -
MEDICARE -TOWN EXPENSE 35,750.00 40,000.00 11.9% 4,250.00
TOTAL EMPLOYEE BENEFITS: 955,298.17 1,056,156.58 10.6% 100,858.41
Overlay 60,000.00 60,000.00 0.0% -
Free Cash Deficit 117,000.00 117,000.00
Unemployment Benefits @ 33% 80,542.08 80,542.08
Snow and Ice Deficit - - 0.0% -
TOTAL GENERAL FUND (FUND 100) 16,994,881.07 16,986,640.17 0.0% (8,240.90)
EXHIBIT 2: FY 12 PROJECTED EXPENDITURES
FY2011 FY12 % $
Account Name Budget Budget Change Change
REVOLVING FUNDS
HARBORMASTER 59,869.83 70,000.00 16.9% 10,130.17
RECREATION REVOLVING FUND 40,000.00 25,000.00 -37.5% (15,000.00)
BYFIELD COMMUNITY CENTER REVOLVING FUND 20,000.00 20,000.00 0.0% -
COMPOST BIN REVOLVING FUND 5,000.00 5,000.00 0.0% -
INSPECTIONAL SERVICES REVOLVING FUND 30,000.00 - 30,000.00
Deficits and One-Time Expenditures to Fund 147,542.08
Computer and Software Improvements 30,000
Plum Island Beach Management 5,000
Total Stabilization Fund Expenditures 182,542
Stabilization Fund Balance 340,000
Stabilization Fund Balance After FY12 Appropriations 157,458
Transfer to Land Sale Fund From Betterments 135,000
Transfer to Sand Bag Fund Deficit from Betterments 52,000
Betterment Spending on Debt Service 761,568
Total FY12 Betterment Appropriations 948,568
Highway Barn Design Appropriation from Land Sale Fund 40,000
Land Sale Fund Balance After Appropriation 95,000
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