Fiscal Year 2017-2018 Proposed Budget April 3, 2017 City Departments School Department Presented by: City Manager Robert M. Belmore Superintendent Jeni Mosca

introduction My Thanks to all City Departments: department heads and staff for their efforts during the entire budget process, and to Finance Director Smith for his assistance in developing this proposed budget in accordance with the City Charter.

focus The presentation’s focus is aimed at providing an overview to the proposed City Budget & School Department Budget FY2017-2018 budget has been prepared in accordance with Section 7.4.1 of City Charter “Limitation on Budget Increase” (aka Tax Cap): Real Estate tax revenue is limited to a factor no more than the change in the National CPI – Urban which is 1.26% for the calendar year 2016. Plus, when annual changes in real estate values occur, real estate taxes may be further increased by applying the prior year’s tax rate to the net increase in new construction. Annual Budget - Article VII and Article X of the City Charter City Manager must present budget to Mayor and Council by March 15. City Manager reviewed budget requests with department heads and key staff, adjusted departmental requests while maintaining the objective of keeping the budget efficiently funded to maintain core City services. School Board’s adopted Budget from Superintendent’s proposal.

Tax Cap - Summary FY17 Amount raise by taxes $ 26,927,774 Add: Amount of increase for CPI (1.26%) $ 339,290 Amount of increase for Net Construction Value $ 314,423 Amount allowed to be raised by taxes FY18 $ 27,581,487 Estimated amount to be raised by taxes with proposed FY18 budget $ 27,567,636 Estimated Amount Under Tax Cap $ 13,851

Analysis of tax cap estimated amount to be raised by property taxes City School Local School State County Portion Total FY 18 Proposed Gross Budget 17,297,495 24,365,682 1,882,114 2,380,054 45,925,345 Less: Estimated Revenues 9,240,689 9,415,920 18,654,466 Add: Overlay 50,000 War Service Credits 248,900   Estimated Amount to be Raised by Property Taxes 8,355,706 14,949,762 27,569,779

Budget notes Departments-General Fund Budget Gross G/F budget reflects an increase of $367,102. (3%). Proposed budget includes the following changes in staffing: Department of Public Works – restore Full Time City Engineer position. Department of Public Works – add one additional winter seasonal employee. Department of Planning and Community Development – reduce Economic Development Manager position to part time and include money for consulting. Recreation Division – increase seasonal administrative support from 26 weeks to 39 weeks. Department of Finance and Admin – restore part time clerk in Tax Collection. Police Department – change one shared position to full time dispatch and add a part time Parking Enforcement Officer. The Patrol Division will handle animal control complaints.

Budget notes cont. Salaries and Benefits increase of $360,427. Increase is broken down as follows: Salaries and wages increase = $146,173 Health/Dental increase = $96,503 NH State Retirement increase = $87,161 Other payroll benefits (FICA, W/C, etc.) increase = $30,590

2017-2018 proposed budget revenue estimates Category 16-17 Budget 17-18 Proposed Taxes & Penalties 26,958,874 27,600,879 Licenses, Permits, Fees 1,585,625 1,700,625 Intergovernmental 945,488 Education 9,531,279 9,339,296 Other Revenue 672,455 728,187 Use of Fund Balance 885,000 Total Revenue 40,578,721 41,199,475

City general fund revenue city revenue = $12,897,299 Property Tax revenue continues to be the main source of support for City appropriations. Other revenues – increased the estimate on revenue from Motor Vehicle Registration Fees.

City OTHER revenue Revenue Amount $ Change % Change Other Taxes (late fees, penalties & interest) 280,000 0% Licenses, Permits, Fees 1,700,625 115,000 7.25% Intergovernmental 945,488 Income – from Departments 468,437 55,732 13.5% Other 259,750 Transfers In - Use of Fund Balance 885,000 Total 4,539,300 170,732 3.9%

2017-2018 proposed budget budget structure appropriations General Fund Proprietary Fund Major Program Areas/Departments School County Water Sewer Solid Waste (pay-per-bag program) Cable Fund

Summary of proposed expenditures general fund

City appropriations departments – major program areas Elected Leadership Mayor/Council, Civic Promotions, Community Support-Outside Agencies City Management City Manager’s Office, Legal services for all City Departments Finance and Administration Finance, MIS, City Clerk, Tax Collector, Library, Human Services (Welfare) Development Services Planning, Assessing, Building & Codes Economic Development, Recreation Public Safety Police & Fire Public Works PW Administration, Street Maintenance, Solid Waste, Cemetery, Engineering Other Expenses/Utilities Debt Service, Capital Leases, Superfund Monitoring, Contingency School County Capital Outlay CIP and other one-time appropriations Enterprise Funds Water, Wastewater, Pay-Per-Bag

City appropriations departments – major program areas FY2018 Proposed Increase/(Decrease) Elected Leadership $ 128,511 $ 2,700 City Management $ 478,954 $ 15,059 Finance & Admin $1,183,964 $ 4,449 Development Serv. $1,004,664 $ 1,443 Public Safety (Police & Fire) $6,012,253 $ 245,253 Public Works $2,311,751 $ 125,769 Debt Service/Leases $1,093,639 $( 11,042) Capital $ 203,915 $( 1,994) Other/Contingency $ 180,598 $( 15,000) Enterprise/ Funds $4,639,139 $(1,074,417) Cable Fund $ 60,107

General fund appropriations Other appropriations are Contingency, transfer to capital reserve fund, and superfund landfill monitoring cost. For the purpose of this slide, Police and Fire are represented separately, however in the City budget they make up the Public Safety department and total 47% of the total budget.

General fund appropriations by category Utilities are Telephone, Heat, and Electric. Capital is the Capital outlay budget plus $258,000 for road resurfacing projects.

General fund personal Full Time G/F Employees = 84 Part Time G/F Employees = 9 Statistics represent number of personnel in proposed FY18 budget, not current staffing levels. Statistics do not include elected officials, call firefighters or seasonal employees. Seasonal employees are proposed for recreation, snow removal (2 DPW), summer seasonal (DPW), and a crossing guard. Figures above are only G/F, and do not included 6 F/T employees recommended in water department, and 5 F/T employees at the wastewater treatment facility, and 1 F/T employee split between water and wastewater.

2017-2018 proposed budget proposed capital improvements capital outlay Not yet acted on by Council City Hall HVAC Control System $ 75,000 Replace Portable Radios – Fire (3rd year of 4 year replacement) $ 33,915 Salmon Falls Road Bridge $ 55,000 Down-payment on Vehicle Lease/Purchase (5%) $ 20,000 Breton’s Cleanup – City Share City Council has approved the acquisition of 1 Police Cruiser – Resolution 28-17

2017-2018 proposed budget estimated tax rate set by state department of revenue administration in fall 16/17 Actual 17/18 Estimated Change City 9.72 9.91 .19 School - Local 17.26 17.72 .46 School - State 2.37 2.27 (.10) County 2.77 2.82 .05 Total 32.12 32.72 .60 Property Tax Rate based on estimated assessed valuation of $843,500,000 Approximately $843,500 in expenditures represents $1 on the tax rate, ($84,350 = .10cents)

2017-2018 proposed budget estimated tax rate $32.72 per $1,000

2017-2018 proposed budget estimated property tax bill Average Residential Assessment = $180,000 Actual FY17 Tax Estimate FY18 Tax $ Change City $ 1,750 $ 1,784 $ 34 School (State & Local) $ 3,533 $ 3,598 $ 65 County $ 499 $ 508 $ 9 Total Property Tax Bill $ 5,782 $ 5,890 $ 108

2017-2018 enterprise funds wastewater fund Proposed FY 2018 Budget = $2,162,766 Recommendation is to increase utility rates effective July 1 2017 10%: Anticipated revenues for FY 2018 are $2,775,000. Estimated FY 2018 operating surplus is approx. $600,000. Current rates are $5.50 per 100 cubic feet of use, increasing to $6.05 per 100 cubic feet of use effective July1, 2017. An average bill, using 9,000 cubic feet per year – State DES avg. home, is $585. Estimated increase is $49/year Budget highlights Decrease in overall budget is 12.7%, due to supplemental appropriation of $343,800 for engineering of WWTF Upgrade. Absent this project, the operating budget remained flat year over year. Budget includes treatment facility with 5 full time staff and one shared staff (utility billing clerk). CIP Projects –Blackwater Road Pump station Improvement – approximately $600,000 and WWTF Upgrade – approximately $4,000,000.

2017-2018 enterprise funds water fund Proposed FY 2018 Budget = $2,076,173 Recommendation is to increase utility rates effective July 1 2017 7%: Anticipated revenues for FY 2018 are $2,500,000. Estimated operating surplus in FY2018 is $400,000. Current rates are $4.11 per 100 cubic feet of use increasing to $4.40 per 100 cubic feet of use effective July 1, 2017. An average bill, using 9,000 cubic feet per year – State DES avg. home, is $426. Average increase estimated to be $26/year. Budget highlights Proposed budget decrease of 27%. Large change due to a supplemental appropriation of $800,000 for the water main improvements associated with FY 2017 road improvement projects. Absent this project, the operating budget remained flat year over year. CIP Projects – Replace a water TOC analyzer at the Water Treatment Plant. Budget includes treatment facility with 3 full time staff, distribution with 3 full time staff, and one shared staff (utility billing clerk).

SOMERSWORTH SCHOOL DEPARTMENT April 03, 2017 BUDGET 2017-2018 SOMERSWORTH SCHOOL DEPARTMENT April 03, 2017

FY 2017-2018 PROPOSED BUDGET Current 2016-2017 Budget: $25,973,820 Tax Cap increase: $ 399,334 Less: Loss in Revenue Total: $ 201,982 School Department Total Allowable Budget $ 26,171,172 Proposed Expense Increase: $ 885,345 Proposed 2017-2018 Budget: $26,859,165 Less: Budget Expenditure Bond Savings $ 161,145 Total Proposed School Department Budget $26,698,020 Shortfall: $ 526,848

PROPOSED REDUCTIONS Health Premium Effective Rate $108,000 NWEA Testing $ 20,000 Maintenance Repair $ 55,000 Secretaries Move to Category “B” $ 23,000 Maplewood Print Media $ 10,000 Contracted Services $ 33,000 Four Paraprofessionals $140,000 Special Education Reserve $100,000 SPED Teacher Part-time $ 37,848 PROPOSED REDUCTION TOTAL: $526,848

TRUE NEEDS REDUCTIONS Full-time Kindergarten Teacher Part-time Grounds Person HS Asbestos Removal & Floor Replacement

FY 2017-2018 PROPOSED BUDGET Current 2016-2017 Budget: $25,973,820 School Department Total Allowable Budget $ 26,171,172 Total Proposed School Department Increase $ 197,352