Town of Bourne Year End Financial Review FY2015

Appropriation & Expenditures The Town budget is voted by salaries and expenses by departments. The two school budgets are voted in total. In FY2015 the turn backs totaled 1,192,707. What made up the turn backs in salaries & wages? A hiring freeze was voted on Feb 24 th 2015 by the BOS. The major turn backs came from unfilled positions & other types of leaves. What made up the turn backs in expenditures? Half of the costs turn backed came from Shared Costs under General Insurances and Workers Comp. In FY2016 the General Insurance budget was decreased but expenses in FY2016 came in higher than the FY2015 budget.

Appropriation & Expenditures FY2015 Encumbered Balance 7/1/2014AppropriationExpenditures Transfers & Budget Amendments Closed to Fund Balance Encumbered Balance 6/30/2015 General Government 47, ,189, ,168, , , , Public Safety 1, ,025, ,659, , , , Education 86, ,810, ,832, , , Public Works ,125, ,493, , , , Human Services 1,090, ,080, , , Culture & Recreation , , , Debt Services 3,338, ,324, , , Shared Costs 8, ,967, ,042, , , General Fund Total 144, ,350, ,378, ,155, ,192, ,750.21

Estimating Revenues Cherry sheet estimates are obtained from the latest version of the Cherry sheet estimates published during the budget season combined with prior year revenue history Local receipts are estimated conservatively based on both past collections and future anticipated revenues The DOR warns towns to make sure any increases in estimated revenues can be justified or they will not set that communities tax rate The town has been conservative in estimating its local receipts especially Motor Vehicle Excise. In order for MVE to be a steady source of revenue new cars must be purchased at a rate at least roughly as great as the year before. MVE declines in value from 90% in year one, to 60% in year two, 40% in year three and 25% in year four to a final 10% thereafter.

Budget vs. Actual – State Revenue Cherry Sheets FY2015 FROM THE COMMONWEALTH Budget Actual Difference % Veteran's Benefits 86, , , % Exemptions: Veterans, Blind, Surviving Spouse109, ,199.00(2,824.00)97.41% State Owned Land580, % Unrestricted Govt Aide1,304, % Chapter 704,877, ,877, % Charter School Reimbursement245, ,329.00(17,109.00)93.03% Total from the Commonwealth $ 7,203, $ 7,188, $ (14,540.00)99.80%

Budget vs. Actual – Local Receipts FY2015 FROM LOCAL RECEIPTS Budget Actual Difference % Motor Vehicle Excise 2,326, ,665, , % Other Excise (Hotel & Boat) 130, , % Meals Tax150, , , % Penalties/Interest on Taxes275, , (35,721.29)87.01% Payment In Lieu of Taxes25, , (5,363.57)78.55% Recreation1,175, ,160,259.02(14,966.98)98.73% Other Departmental Revenue285, , , % Licenses and Permits575, , , % Fines and Forfeits140, , (5,179.45)96.30% Investment Income40, , (12,242.18)69.39% Other Federal Revenue35, , (16,201.54)53.71% Other Miscellaneous Income35, , , % Total Local Receipts $ 5,192, $ 5,933, $ 741, %

Miscellaneous Revenues SourceTotal Reimbursement of Benefits 11, Mass Housing Partnership 3, Mega Work Comp Audit 25, Barnstable Cty LED Retrofit 7, Community TV 3, Coady Extension 5, Steamship Authority 8, Civil Service Transfer 10, Metering Credits 192, Miscellaneous Other 4, Total Miscellaneous Revenues $271,647.35

Revenue Over/Under Budget & Expenditure Turn Back History Fiscal Year State Revenue Over/Under Budget Local Receipts Over/Under BudgetExpenditure Turn backs 2010 (9,526) 525, , (25,592) 453,640 1,406, , ,013 1,635, (217,165) 1,353, , ,893 1,076, , (14,540) 741,468 1,192,707

Financial Policies The Town revised its Financial Policies effective September There were several changes made including some of the following highlights Free Cash: The Town should strive to appropriate no more than 50% of the Free Cash Balance that is in excess of the 5% policy as an operating revenue with a majority vote of Town Meeting. Stabilization Fund: To maintain a long term Stabilization fund for unforeseen emergency expenses and capital projects in accordance with MGL Ch 40 S 5B. To maintain a Stabilization Fund balance of at least 6% of the GFOB. The town may appropriate funds from the Stabilization fund for any lawful purpose with a 2/3 vote of Town Meeting. OPEB Trust Fund: To maintain an OPEB Trust fund to accumulate funds for Other Post Employment Benefits. The long term goal for the Trust Fund is to fully fund the OPEB Liability. The Trust fund currently has a balance of $585,518.

History of Free Cash FY2004-FY2016 Fiscal Year Certified Free CashAs of Total Voted During Fiscal Year Used for Following Fiscal Years Budget Used for Current Fiscal Years BudgetUsed for Capital Transfer to StabilizationUsed for Articles 2004 $ 1,613, /1/2003 $ 1,439, $ 562, $ 201, $ 674, $ 1,890, /1/2004 $ 1,890, $ 700, $ 248, $ 941, $ 1,107, /1/2005 $ (668,167.36) $ - $ (700,929.00) $ 32, $ 3,911, /1/2006 $ 1,459, $ 553, $ 30, $ 205, $ 587, $ 82, $ 4,262, /1/2007 $ 1,662, $ 650, $ 181, $ 700, $ 129, $ 5,252, /1/2008 $ 2,034, $ 859, $ 22, $ 244, $ 887, $ 21, $ 4,897, /1/2009 $ 1,854, $ 1,780, $ 74, $ 4,347, /1/2010 $ 1,340, $ 800, $ 429, $ 8, $ 88, $ 15, $ 5,099, /1/2011 $ 1,908, $ 1,400, $ 144, $ 169, $ 195, $ 6,510, /1/2012 $ 3,216, $ 1,400, $ 464, $ 594, $ 757, $ 5,700, /1/2013 $ 2,422, $ 2,004, $ 107, $ 310, $ 4,897, /1/2014 $ 3,429, $ 1,792, $ 865, $ 397, $ 373, $ 3,538, /1/2015 $ (1,025,951.00) $ (1,028,684.00) $ 2,733.00

Free Cash to Financial Policy Reserves

Stabilization Fund History Fiscal Year General Stabilization fund Beginning of FY Year Used for Budgets during fiscal year Voted to Stabilization fund during fiscal year Interest earned in fiscal year 2004 $ 1,906,905 $ (400,000) $ 50,000 $ 26, $ 1,583,200 $ (200,000) $ 183,603 $ 36, $ 1,602,827 $ (400,000) $ 400,000 $ 62, $ 1,665,563 $ (769,898) $ 282,213 $ 70, $ 1,248,226 $ 1,287,684 $ 76, $ 2,612,538 $ 887,462 $ 51, $ 3,551,847 $ (88,312) $ 39, $ 3,503,206 $ 88,312 $ 13, $ 3,604,838 $ (152,013) $ 22, $ 3,475,477 $ (950,000) $ 21, $ 2,547,002 $ 950,000 $ 20, $ 3,517,265 $ 13, $ 3,530,881

Some Important Factors Snow & Ice has been budgeted at the same level over the past few years at $92,900. Over the past six years the average expense for snow & ice has been $385,760. The town has looked at increasing this budget to smooth out the deficits of snow & ice The UCRT Vocational School assessment has increased $1,854,716 from FY2010 to FY2016, an increase of 129% Cherry Sheet Revenues: The revenue the Town receives from the State. The columns on the end are revenues which go directly to those departments to offset their costs. They do not count towards the revenues the town can use for budgeting purposes. Chapter 70, the largest Cherry Sheet Revenue has remained stable along with Unrestricted Gov’t Aid, State owned land has decreased $335,493 in FY2011 from FY2010 but has stabilized. School Choice has increased $470,876 from FY2010 to FY2016. FY2016 School Choice is estimated at the FY2015 revenue amount. Cherry Sheet Charges are charged to the town as an offset to what the town receives for its monthly state aid revenue. The major changes in the Charges are in the School Choice and Charter School Sending Tuition. In FY2010 School Choice was $146,090 and in FY2016 is estimated at $622,519 and increase of $476,429. Charter School Sending Tuition was $353,441 in FY2010 and $1,507,188 in FY2016 an increase of $1,153,747

History of Snow & Ice Budget BudgetAmendedExpended FY , , , FY , , , FY , , , FY , , , FY , , FY , , ,018.29

Upper Cape Tech Vocational School Assessment Assessment Increase from Prior Year % Increase from Prior Year FY2010 1,439,66661, % FY2011 1,620,907181, % FY2012 1,690,55369, % FY2013 1,789,11198, % FY2014 2,162,131373, % FY2015 2,911,817749, % FY2016 3,294,382382, %

State Aid Cherry Sheet Revenues Chapter 70 State Owned Land Unrestricted Gov’t AidExemptions Veteran Ben Charter Tuition School Lunch Public Library School Choice Total FY2010 4,948, ,817 1,291,562 93,743 26, ,905 15,569 15, ,993 7,662,645 FY2011 4,659, ,324 1,239,900 96,664 38, ,420 11,370 16, ,449 7,029,831 FY2012 4,684, ,968 1,239,900 86,185 78, ,021 11,756 16, ,254 7,305,521 FY2013 4,771, ,133 1,239,900 21,160 73, ,325 11,446 16, ,541 7,132,244 FY2014 4,825, ,715 1,269, ,023 93, ,350 11,617 16, ,248 7,643,872 FY2015 4,877, ,849 1,304, ,199 91, ,329 10,783 21, ,869 7,945,048 FY2016 4,927, ,849 1,351, , , , , ,869 8,062,652

State Aid Cherry Sheet Revenues

State Aid Cherry Sheet Charges County Assessments Ret Teacher Health Mosquito Control Air Pollution RMV Surcharge Regional TransitSpecial Ed School Choice Charter SchoolTotal FY ,4121,327,52390,12517,69332,10031,64324,892146,090353,4412,023,507 FY ,9981,229,96591,4867,35725,98043,48624,767200,640441,9232,065,604 FY ,8681,227,69295,4597,51625,68044,57330,836280,471775,0482,487,275 FY ,8881,101,60599,2287,78125,18044,57313,822492,200921,8752,706,264 FY ,2571,143,222103,8627,86031,54045,68722,039512,1851,157,4563,023,851 FY ,6881,232,244107,8337,82231,54146,82915,639643,2151,313,0363,398,159 FY ,7731,283,282110,3217,75431,54048,00016,265622,5191,507,1883,969,642

State Aid Cherry Sheet Charges

New Growth Budget to Actual New Growth is the additional tax revenue created by any new construction, renovations or other increases in the property tax base during the calendar year New Growth is submitted by the Assessor to the State Department of Revenue in the Tax Rate Setting process. Until these forms are completed and submitted the actual new growth amount is unknown. The Assessor estimates new growth on the possible completion of construction projects in comparison to building permits.

History of New Growth Budget to Actual Fiscal YearBudget New GrowthActual New GrowthDifference Budget vs Actual 2004 $ 525, $ 514, $ 10, $ 525, $ 871, $ (346,021.00) 2006 $ 600, $ 567, $ 32, $ 487, $ 578, $ (91,108.00) 2008 $ 321, $ 429, $ (108,623.00) 2009 $ 321, $ 430, $ (109,051.00) 2010 $ 300, $ 312, $ (12,541.00) 2011 $ 100, $ 241, $ (141,638.00) 2012 $ 100, $ 299, $ (199,625.00) 2013 $ 150, $ 361, $ (211,352.00) 2014 $ 200, $ 222, $ (22,805.00) 2015 $ 100, $ 576, $ (476,154.00) 2016 $ 300, $ 651, $ (351,484.00)

New Growth Budget to Actual

Enterprise Funds ISWM ended FY2015 with a Retained Earnings balance of $7,954,733 an increase over FY2014 of $2,628,708. The increase came mainly from Landfill operation revenues. The contract with Covanta Energy began the beginning of January 2015 increasing disposal revenue significantly. ISWM also received higher C&D than expected increasing revenues over $800,000 increasing over 3.4 million from FY14 to FY15 while expenditures and transfers to closure accounts remained stable. The Sewer department’s Retained Earnings decreased $67,686 from FY2014 to FY2015 from $677,255 to $609,569. During FY2015 the Sewer department maintained the sewer user charge at $734. This was the fifth year this rate had been maintained at that level. In FY2016 the rate was increased 15 per user to 749 a year. FY2015 was the last year of betterment assessment charges for sewer users.

ISWM Enterprise Fund Revenues Budget vs Actual FY2015 Fiscal 2015 BudgetFiscal 2015 Actual Budget Savings (Deficiency)% User Charges 10,401, ,035, ,634, % Other Departmental revenue 240, , , % Investment Income 15, , , % Retained Earnings $ 10,656, $ 14,386, $ 3,730, %

ISWM Enterprise Fund Appropriations & Expenditures Encumbered Balance 7/1/2014 Appropriation/ BorrowingExpenditures Transfers In (Transfer Out) Closed to Fund Balance Encumbered Balance 6/30/2015 Operating Budget: Salaries1,993, ,767, , Expenses148, ,978, ,222, , , , Debt Service 1,894, ,832, ,302.39(0.00) Reserve Fund 200, (200,000.00) Host Community Fee - 600, , , ,979.97(0.00) Sub-Total $ 148, $ 8,666, $ 8,596, $ 300, $ 506, $ 12, Indirect Costs Total $ 1,974, $ -

Sewer Enterprise Fund Revenues Budget vs Actual Fiscal 2015 BudgetFiscal 2015 ActualOver/Under Budget% User Charges: Sewer User Fees 799, Sewer User Charges Added to Taxes57, Total User Charges 815, , , % Sewer Betterment Receipts: Sewer Assessment Paid in Advance Apportioned Sewer Betterment:29, Committed Interest:1, Total Betterment Receipts 28, , , % Other Departmental Revenue: 26, , , % Investment Income: 1, , % Retained Earnings 100, % Total 970, ,025, , %

Sewer Enterprise Fund Appropriation & Expenditures Encumbered Balance 7/1/2014 Appropriation Expenditures Transfers In (Transfer Out) Closed to Fund Balance Encumbered Balance 6/30/2015 Operating Budget: Salaries $ 182, $ 170, $ 12, $ - Expenses 122, , , $ 17, Wareham - Operation Expense 323, , , $ - Wareham - Capital Assessment 188, , $ 0.00 Debt Service 13, , (977.63) $ - Reserve Fund - 15, $ - Sub-Total $ - $ 844, $ 699, $ - $ 127, $ 17, Indirect Costs Total 126, $ 126, Total Expenses - 970, , $ 126, , ,069.83