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

2. 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.

3. focus
The presentation’s focus is aimed at providing an overview to the proposed City Budget & School Department Budget
FY budget has been prepared in accordance with Section 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.

4. Tax Cap - Summary FY17 Amount raise by taxes $ 26,927,774
Add: Amount of increase for CPI (1.26%) $ , Amount of increase for Net
Construction Value $ ,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 $ ,851

5. 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

6. 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.

7. 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

8. 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

9. 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.

10. 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%

11. 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

12. Summary of proposed expenditures general fund

13. 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

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

15. 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.

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

17. 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.

18. 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

19. 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)

20. 2017-2018 proposed budget estimated tax rate
$32.72 per $1,000

21. 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 $ $
$ 9
Total Property Tax Bill
$ 5,782
$ 5,890
$ 108

22. 2017-2018 enterprise funds wastewater fund
Proposed FY 2018 Budget = $2,162,766
Recommendation is to increase utility rates effective July %:
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.

23. 2017-2018 enterprise funds water fund
Proposed FY 2018 Budget = $2,076,173
Recommendation is to increase utility rates effective July %:
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).

24. SOMERSWORTH SCHOOL DEPARTMENT April 03, 2017
BUDGET
SOMERSWORTH SCHOOL DEPARTMENT
April 03, 2017

25. FY PROPOSED BUDGET
Current 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 Budget: $26,859,165 Less: Budget Expenditure Bond Savings $ 161,145 Total Proposed School Department Budget $26,698,020 Shortfall: $ 526,848

26. 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

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

28. FY PROPOSED BUDGET
Current Budget: $25,973,820 School Department Total Allowable Budget $ 26,171,172 Total Proposed School Department Increase $ 197,352