Presentation on theme: "BUDGET REDUCTIONS THESE ARE OPTIONS FOR THE TOWN TO CONSIDER Options for Budget Reductions."— Presentation transcript:
BUDGET REDUCTIONS THESE ARE OPTIONS FOR THE TOWN TO CONSIDER Options for Budget Reductions
TO STABILIZE THE MIL RATE AS THE VALUATION OF THE MILL DECREASES. PROJECTED VALUATION DECREASE FOR FISCAL YEAR 16 IS $50 MILLION. TARGETED BUDGET REDUCTION FOR FISCAL YEAR 2016 IS $1.5 TO $2.0 MILLION. REDUCE IMPACT TO LOCAL TAXPAYERS. Goals and Objectives
Previous Years Town Budgets Only (School not Included) 2012-13 $6,722,557 2013-14$6,035,686 2014-15$5,801,144 (-$921,413) Revenue Decrease in same period dropped from $2,806,720 to $2,522,736 (-$283,984) Total Decrease from FY 12/13 (-$1,205,397) Employment Levels between 2012 to 2014 went from 42 to 34 Full Time (-8) Equipment Refurbishment-Purchases 2011 MetalFab Fire Truck 2002 Kovatch Fire Truck Ambulance 2002 Plow Truck Rebuilt by P.W. Crew in 2013 1994 Cat Loader Rebuilt by P.W. Crew in 2014 GNP Mill Valuation 2012-13$78,897,200 2013-14$ 74,513,700 2014-15$47,664,600 2015-16$ 3,177,800
What have we done? Tax Anticipation Note. Tax Commitment and Due Date for Tax Payments. Implemented Tighter Spending Controls. Tax Acquired Policy and Procedures Implemented. Appropriated $500,000 to place into Fund Balance to keep Town AND School Operational. Funding the Legal Expense to Reduce or Eliminate School Retiree Health Insurance.
THESE ARE ONLY OPTIONS. THE TOWN COUNCIL WILL NEED TO DELIBERATE AND DECIDE A COURSE OF ACTION. IT IS MANAGEMENT’S ROLE TO PROPOSE OPTIONS. Proposed Budget Reductions
Administration Eliminate Part Time Clerical (Police-CED-Assessor) Police: Do not fill in new vacancy OR Detective vacancy. Fire: Reduce workforce by 2 men now and do not replace retirements or resignations. EMS: Contract EMS to East Millinocket Airport Contract all Airport Operations for $1. Recreation Eliminate all but swimming pool operations for a 6 week period only. Administration for Snowmobile Grant and other minimal expenses. Library Eliminate Building Costs from Budget. Rely on Donations to fund. All Other Departments: To find Efficiencies and Service Modifications.
Capital Expenditures Eliminate all highway improvements (hot top) except what is paid by Local Roads Assistance. Eliminate all Capital Purchases for 1 year. Heavy Equipment Technical Equipment Building Improvement Debt: Restructure Debt when possible and feasible.
Budget Reductions Includes other Misc. Cuts to be taken from Fringe Benefits-Insurance Accts. Administration $8,970 (includes FICA) Elim. Part-Time Clerical Police $111,000 Reduction in Force (2 vacancies & clerk) Fire $65,000 Reduction in Force (2 half time) Ambulance $63,950 Reduction in Force (2 half time) 258,920 Expenditures (Contract w/East Mill) $ Revenue Offset Loss Airport $157,228 Expenditures (Contract to FBO) $ Revenue Offset Loss
Recreation $50,000 Library $23,000 Capital ($770,016) Street Paving $250,000 Heavy Equipment $519,516 Technical Equipment $0 Buildings $500 Budget Reductions Includes other Misc. Cuts to be taken from Fringe Benefits-Insurance Accts.
Total Reductions Expenditure Reductions: $1,508,084 Revenue Reductions ($634,811) Net Budget Reductions $873,273
EXPENDITURES TOWN DECREASE OF: (-1,508,084) SCHOOL: (SAME AS FY 15) REVENUES TOWN DECREASE OF: (-634,811) SCHOOL INCREASE OF: $873,273 MIL RATE: $29.66/$1,000 VALUE Tax Commitment
Debt 3.1% Indebted State Limits Towns to borrow up to 15% of total State Valuation ItemAmount Outstanding 6/30/14 Final Payment Copier Lease$ 7,772.502017 Swimming Pool$640,000.002021 Energy Improvements$204,812.64 2019 2002 Metalfab Fire Truck$181,553.132019 2011 Kovatch Fire Truck$119.960.692017 Total Town:$1,164,098.32 School Bond 1998$1,591,701.002018 School Bond 2011 Boiler$1,371,792.102025 School Copier Leases:$ 91,195.06 2019 Total School:$3,054,688.062018 Wastewater Boiler$ 35,187.362019 SRF $512,087.202017 CWSRF$773,317.002028 Total Wastewater:$1,320,591.56 Current bonded debt total is $5,539,377.94