CAPITAL EXPENDITURE PLAN/BUDGET AND INFORMATION

Transcription

1 CAPITAL EXPENDITURE PLAN/BUDGET AND INFORMATION J=NPP=J

2 IMPACT OF CAPITAL EXPENDITURE BUDGET ON THE GENERAL OPERATING BUDGET The FY Capital Expenditure Plan (as described in the Capital Expenditure Plan Policy) totals $54,257,000, which will impact the General Operating Budget Debt Service and other operating costs. The General Operating Budget provides a foundation for capital projects, supplying financial support for the significant administrative and operational time and resources needed to advance and manage those projects, even though many of these dollars are not directly or easily identified in the General Fund line items. Capital expenditures do have a direct and visible impact on Debt Service in the operating budget, which has been steadily declining despite the Town s prudent infrastructure maintenance. In addition, the objectives of capital projects are to not only maintain a safe and viable infrastructure and improve the quality of life for our residents, but also to reduce future operating costs through avoidance of maintenance costs and savings in efficiencies from newer technology and facilities. In the event of a significant expansion project such as the Wastewater Treatment Plant upgrade, expenditures for staffing and personnel in the operating budget could be impacted as well. While separate and distinct, the Town s operating and capital budgets complement each other in the achievement of the Town s overall goals. SUMMARY OF CAPITAL ASSETS J=NPQ=J

3 TOWN OF CHESHIRE PROCEDURES FOR THE OMNIBUS CAPITAL EXPENDITURE PLAN AND ANNUAL CAPITAL EXPENDITURE BUDGET I. Definition of Capital Expenditure Items. The Council shall establish by resolution the criterion that characterizes those expenditures, which may be included in the Omnibus Capital Expenditure Plan and the Annual Capital Expenditure Budget. II. Preparation of the Omnibus Capital Expenditure Plan and the Annual Capital Expenditure Budget. A. The Council shall annually adopt a five (5) year Omnibus Capital Expenditure Plan, which shall include a listing of all the components of the Plan, designating in which year of the Plan each component, shall be included. B. The Council may add, delete, or modify components of the Omnibus Capital Expenditure Plan during its preparation of a proposed annual Capital Expenditure Budget. C. Each year of the Omnibus Capital Expenditure Plan may contain components of the Plan, which have, more or less, the following characteristics: 1. First Year: Components of the Plan recommended for the proposed annual Capital Expenditure Budget. 2. Second Year: Components of the Plan that the Council has approved for detailed evaluation and cost analysis by professionals, if necessary, which evaluation and analysis will be made in the second year. 3. Third Year: Components of the Plan, which may be studied and considered on the basis of: a. The need for the project or purchase; b. The short range and long range financial impact on the Town of the project or purchase; and c. Preliminary cost estimates for the project or purchase. 4. Fourth and Fifth year: Components of the Plan that the Council considers appropriate for long-range study. D. Each department, office, board, or commission of the Town supported wholly or in part by Town funds shall annually prepare a Capital Expenditure Plan in a form and manner prescribed by the Town Manager. Said Plan shall consist of capital expenditures proposed by said department, office, board, or commission over a five (5) year term and projected for eventual inclusion in the proposed Annual Capital Expenditure Budget. Said Plan shall be submitted to the Manager not later than June 1 of each year. E. The Manager shall assemble said Plans into an Omnibus Capital Expenditure Plan. The Manager may add, but may not delete, items from the Plans submitted to him. The Manager shall submit to the Council together with his recommendations, the proposed Omnibus Capital Expenditure Plan including general cost estimates and proposed financing, not later than July 15. At the same time that the Manager submits the Omnibus Plan to the Council, he shall also submit it to the Planning and Zoning Commission for a report pursuant to Section 8-24 of the General Statutes, as amended. J=NPR=J

4 F. The Planning and Zoning Commission shall review the Omnibus Capital Expenditure Plan for compatibility with the Comprehensive Plan of Development and may, in its discretion, submit a report to the Council not later than August 15. Failure to submit a report to the Council shall not delay, hinder, or prevent action by the Council. G. The Council shall review the Omnibus Capital Expenditure Plan together with the recommendations of the Manager and the report of the Planning and Zoning Commission, if any, and may take the following actions: 1. Add and/or delete components; 2. Increase and/or decrease estimated costs; 3. Advance or retard components among different years of the Plan; and/or 4. Approve a proposed Annual Capital Expenditure Budget, the components of which shall be included in year one of the Omnibus Capital Expenditure Plan. H. The Council shall set a date for a public hearing, which shall be held not later than September 25, on the proposed Annual Capital Expenditure Budget. After completion of the public hearing, the Council may add or delete components and increase or decrease estimated costs. I. Any addition to or component of the amended, proposed Annual Capital Expenditure Budget, which was not in the Omnibus Capital Expenditure Plan previously, shall then be submitted to the Planning and Zoning Commission for a report pursuant to Section 8-24 of the General Statutes, as amended. J. The Council shall reject or adopt, not later than November 20, the Omnibus Capital Expenditure Plan and the Annual Capital Expenditure Budget, or any part thereof in the manner and subject to the limitations provided in the Town Charter, as appropriate, except that no public hearing shall be necessary. The Council shall adopt resolutions to finance the adopted Annual Capital Expenditure Budget, including resolutions authorizing the issuance of bonds or notes if necessary. The Council shall set a date for referendum, if necessary, in accordance with the Town Charter, such referendum to be held not later than the second Tuesday in February of the following year. K. When preparing and acting on appropriation and/or borrowing resolutions and/or questions for submission to referendum, the Council may, in its discretion, group individual items or projects together into general items or projects if those items or projects have a natural relationship with one another. L. Project Planning Account. The Council shall establish a separate project planning account that shall be a part of the Capital Improvement Fund. The Council shall fund and maintain the account at a level estimated by the Council to be sufficient for the timely conduct of studies, cost analyses, and design of projects associated with the Omnibus Capital Expenditure Budget and the Annual Capital Expenditure Plan. Only the Council may authorize expenditures from the account. The account may be funded in any manner deemed appropriate by the Council. M. For good cause shown, and in its discretion, the Council may adjust the dates provided in this Section for actions on the Omnibus Capital Expenditure Plan and the Annual Capital Expenditure Budget. Such adjustments shall not be by more than five (5) days, and in no event shall the Council reject or adopt the Annual Capital Expenditure Budget, or any part thereof, later than November 20. J=NPS=J

5 TOWN OF CHESHIRE CAPITAL EXPENDITURE PLAN POLICY In accordance with Section 7-2 of the Town Charter, the Town Council shall annually adopt a five year Omnibus Capital Expenditure Plan (CEP). Annually each department, office, board, or commission of the Town shall prepare a Capital Expenditure Plan in a form and manner prescribed by the Town Manager. The Plan shall consist of capital expenditures proposed by said department, office, board, or commission over a five (5) year term and projected for eventual inclusion in the proposed Annual Capital Expenditure Budget. Capital items for the purpose of inclusion in the Capital Improvement Plan shall be defined as follows: Projects requiring construction, purchase of equipment, or acquisition of land that have a cost of $110,000 or more, an expected life of five years or more and be of a non-recurring nature. A study or design project, which has a cost in excess of $110,000, which is prepared in conjunction with a future capital expenditure project, may also be included in the Capital Expenditure Plan. Major maintenance/repair of an existing capital item, as distinguished from a normal operating expenditure. Requests by Town departments will propose operating budgets that provide sufficient funding for adequate maintenance and orderly replacement of capital plant and equipment. All equipment replacement needs for the coming five years will be projected and the projection will be updated each year. Future operating and maintenance costs for all new capital facilities will be fully identified. As part of the Capital Expenditure Plan process, the Town will evaluate the financial impact of the CEP including but not limited to: Debt funding scenarios in order to prioritize future financing needs Mill rate impact studies so as to minimize the overall tax increases Maintaining level annual debt service payments where practical Evaluating CEP effect on debt capacity and debt ratios in comparison to those used by investors and financial analysts. J=NPT=J

6 TOWN OF CHESHIRE CAPITAL EXPENDITURE PLAN / BUDGET OVERVIEW Under the Town s current policy, a proposed capital project must meet certain criteria to be given consideration in the Capital Expenditure Plan/Budget. A capital project, including construction, purchase of equipment, or acquisition of land, must have a cost of $110,000 or more, an expected life of five years or more and be of a nonrecurring nature. A study or design project that has a cost in excess of $110,000, which is prepared in conjunction with a future capital expenditure project, may also be included in the Capital Expenditure Plan. See the Town s Capital Expenditure Plan Policy and Debt Policy included herein. GOALS AND OBJECTIVES The Town plans to maintain its annual appropriations to the Capital and Nonrecurring Expenditures Fund (CNR) in an effort to reduce debt service. Due to the costs associated with borrowing, the Town is striving to finance projects on a pay-as-you-go basis. The Town plans to contribute at least $1,100,000 to the CNR fund on an annual basis CAPITAL EXPENDITURE BUDGET APPROVED PROJECTS For the fiscal year ending June 30, 2016, the Town Council, and citizen referendum as required for project appropriations of $350,000 or more, approved a Capital Expenditure Budget totaling $10,606,000 including borrowing authorizations of $9,659,000 and CNR appropriations of $920,000. Grants totaling $3,303,700 are projected to be available to reduce borrowing requirements for these projects. A description of the projects that were approved in the Capital Expenditure Budget follows: ADMINISTRATION & FINANCE Finance - $90,000: for Various Technology Initiatives. General Services - $470,000: $245,000 for Vehicle/Equipment Replacement, $75,000 for Geographic Information System (GIS), $150,000 for Capital Planning Account. Public Property - $200,000: for Various Town Building Improvements. PLANNING & DEVELOPMENT Planning - $500,000: for Land Acquisition. PUBLIC SAFETY Fire - $145,000: for Fire Equipment and Protective Clothing. PUBLIC WORKS Road, Sidewalks & Drainage - $5,787,000: $200,000 for Sidewalk Program, $337,000 for Public Works Vehicles and Equipment, $1,750,000 for Road Repavement Program, $375,000 for Public Works Dump Trucks, $3,125,000 for East Johnson Avenue Bridge over Quinnipiac River. Trees - $150,000: for Tree Removal and Replanting. J=NPU=J

7 LEISURE SERVICES Parks & Recreation - $420,000: $160,000 for Park Improvements, $260,000 for Tennis Court Renovations at the Youth Center. EDUCATION Education - $2,844,000: Cheshire High School Building Interior Improvements, Civil Rights Compliance - $1,383,000: Remediate various deficiencies under the Civil Rights Act. Cheshire High School Building Exterior Improvements, Civil Rights Compliance - $251,000: Remediate various deficiencies under the Civil Rights Act. Paving of Driveways and Parking Lots at Dodd and Doolittle Schools $250,000: Repave various driveways and parking areas and Dodd and Doolittle Schools. Replacement of Underground Oil Storage Tanks at Chapman, Doolittle, Darcey, Highland, Dodd Schools and Humiston Building - $125,000: Replacement of underground storage tanks in accordance with Department of Environmental Protection regulations. Cheshire High School Detached Exterior Storage Building - $260,000: Replacement of preengineered storage building to store sports, graduation, marching band and theatre equipment. Classroom and Science Labs Improvements at Cheshire High School - $200,000: Renovate science classrooms and labs at Cheshire High School. Lavatory Improvements at Norton, Chapman and Darcey Schools - $125,000: Renovate lavatory facilities at Norton, Chapman and Darcey Schools. Window Replacement Cheshire High School - $250,000: Replacement of windows at Cheshire High School. J=NPV=J

8 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY SUMMARY PROGRAM ELEMENT FY FY FY FY FY TOTAL ADMINISTRATION & FINANCE DR ,580 - FINANCE TM TC DR ,789 - GENERAL SERVICES TM ,814 TC ,680 DR , ,490 - PUBLIC PROPERTY TM ,000 2,290 TC ,000 2,290 PLANNING & DEVELOPMENT DR 1,000 1, , ,000 - PLANNING - LAND ACQUISITION TM 1,000 1, ,000 3,000 TC 500 1, ,000 2,500 PUBLIC SAFETY DR ,135 2,050 5,690 9,790 - FIRE TM , ,190 3,890 TC , ,190 3,670 - POLICE DR TM PUBLIC WORKS DR 5,852 4,114 3,024 3,624 3,161 19,775 - PUBLIC WORKS TM 5,582 3,454 2,790 3,336 2,818 17,980 TC 5,937 3,454 2,790 3,336 2,818 18,335 PUBLIC WORKS DR 3,500 1, ,850 - SEWER & WATER TM 3, ,850 TC 0 3, ,850 CULTURAL SERVICES DR LIBRARY TM TC LEISURE SERVICES DR PARKS AND RECREATION TM TC EDUCATION DR 2,969 1,725 7,248 4,165 3,000 19,107 TM 2,844 1,725 6,798 4,040 3,125 18,532 TC 2,844 1,725 6,798 4,040 3,125 18,532 DR 15,494 10,402 12,800 12,619 12,626 63,941 TOTAL TM 14,710 8,661 12,356 9,401 9,738 54,866 TC 10,606 12,156 12,356 9,401 9,738 54,257 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND 920 1, ,605 5,410 STATE / FEDERAL / LOCAL 3,304 1, ,175 TOTAL REDUCTIONS 4,224 2,436 1,567 1,861 2,497 12,585 NET TOTAL 6,382 9,720 10,789 7,540 7,241 41,672 J=NQM=J

9 TOWN OF CHESHIRE DEBT POLICY The purpose of a debt policy is to establish parameters and guidance for the Town to make decisions on capital spending needs and issuance of debt as a means to fund them. This Debt Policy will be used as established guidelines only. The Town will use reasonable judgment in analyzing debt capacity and the needs of the Town. In addition this plan will identify long-range financial planning objectives and assist the Town to identify priority capital needs of the Town in a financially prudent manner. The Town will adhere to the following guidelines/objectives with respect to the issuance of debt: Not fund current operating expenditures through the issuance of debt. Strive to reduce the limit of total debt service, including debt exclusions and selfsupporting debt, to ten percent of gross expenditures. Only issue debt to finance projects that have been identified in the Town s Five Year Capital Expenditure Plan (CEP) or to fund emergency projects. Ensure that amortization of capital projects funded through the issuance of general obligation bonds will not exceed the useful life of the asset. Evaluate debt funding scenarios as part of its five year CEP process in order to prioritize projects; attempt to maintain stability in the planning and execution of the capital planning process; attempt to minimize overall tax increases in the early years and maintain level principal payments where practical. Adhere to Connecticut General Statutes limiting the amount of indebtedness the Town may have outstanding to seven times the total annual tax collections including interest and lien fees plus the reimbursement for revenue loss on tax relief programs. Ensure to the extent practicable that user fees will be set to cover the capital costs of special revenue/enterprise fund services or activities whether on a pay-as-you-go basis or through debt financing to avoid imposing a burden on the property tax levy. Comply with the requirements of Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission to provide annual financial information and operating data and notices of material events with respect to the Bonds pursuant to Continuing Disclosure Agreements executed at the time of issuing bonds. Maintain frequent communications about its financial condition with the credit rating agencies. As part of the Capital Expenditure Plan process, the Town will evaluate the financial impact of the CEP including but not limited to: Debt funding scenarios in order to prioritize future financing needs Mill rate impact studies so as to minimize the overall tax increases Maintaining level annual debt service payments where practical Evaluating CEP effect on debt capacity and debt ratios in comparison to those used by investors and financial analysts. J=NQN=J

10 TOWN OF CHESHIRE DEBT/FINANCIAL ANALYSIS The financial impact of project appropriations, including FY Capital Expenditure Plan (CEP) projects totaling $54,257,000, is shown on the following five schedules, a brief description of which is provided below: FIVE YEAR CAPITAL EXPENDITURE PLAN APPROVED FUNDING: This schedule shows the proposed sources of funding for the projects approved in the FY Capital Expenditure Plan including amounts projected to be financed with the proceeds from long-term bonds. DEBT SERVICE PAYMENT FOR EXISTING CEP/UNISSUED DEBT/PROJECTED DEBT: This schedule projects the gross debt service requirements of the Town, including principal and interest on both long and short-term debt, for existing bonded debt as well as projected debt attributable to projects previously approved with authorized, unissued debt outstanding, projects in the 5-Year Plan, and projects projected for subsequent FY based on the average annual borrowing requirements from the 5-Year Plan. Also included is the projected debt attributed to the $32.15M Wastewater Treatment Plant upgrade. SUMMARY OF GRANTS, AND OTHER FUNDING SOURCES: This exhibit depicts anticipated funding sources other than bonding and capital non-recurring funds for projects adopted in the FY 2016 Capital Expenditure Plan. SUMMARY OF CAPITAL NONRECURRING FUNDS: This exhibit depicts planned use of capital non-recurring funds as adopted in the FY 2016 Capital Expenditure Plan. SUMMARY OF CAPITAL PROJECTS PROPOSED FOR BONDING: This exhibit depicts proposed bonding for projects as adopted in the FY 2016 Capital Expenditure Plan. SCHEDULE OF DEBT LIMITATION: This exhibit depicts the Town s legal debt limitation as defined by Connecticut General Statutes, Section 7-347(b). J=NQO=J

11 GENERAL FUND FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS 16 TO 20 TOWN COUNCIL APPROVED 8/25/2015 AND REFERENDUM 11/3/2015 (000s OMITTED) (1) PROJECTED LESS: LESS CAPITAL (2) CAPITAL / GRANTS, NET FISCAL NONRECURRING TOTAL NONRECURRING CWF LOANS, LONG TERM YEAR FUNDS CAPITAL FUNDS & OTHER FUNDING BONDING ENDING APPROPRIATION BUDGET - APPLIED - SOURCES = REQUIREMENTS ,100 10, ,304 6, ,100 12,156 1,127 1,309 9, ,100 12, , ,100 9, , ,100 9,738 1, ,241 TOTALS 5,500 54,257 5,410 7,175 41,672 (1) Capital / Nonrecurring (CNR) funds are generated through the mill rate. (2) Town Council Approved 8/25/2015. J=NQP=J

12 (3) (1) (2) PROJECTED (4) INCREASE/ EXISTING UNISSUED NEW CEP DEBT EST. CWF GENERAL (DECREASE) FISCAL BONDED DEBT FOR TOWN COUNCIL DEBT FOR FUND DEBT OVER FY 2016 YEAR DEBT EXISTING CEP ADOPTED WPCD UPGRADE TOTAL BASE YEAR ,897,500 (5) ,897,500 - FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS 16 TO 20 PROJECTED DEBT ANALYSIS - GENERAL FUND TOWN COUNCIL APPROVED 8/25/2015 AND REFERENDUM 11/3/2015 (INCLUDES CWF FUNDING FOR PROJECTED WPCD UPGRADE) GROSS DEBT J=NQQ=J ,029, ,029, , ,384, , ,207 3,559,615 10,504,954 3,607, ,170, ,400 1,041,009 1,703,125 9,289,711 2,392, ,415, ,871 1,729,386 1,678,125 9,189,515 2,292, ,577, ,341 2,791,902 1,653,125 9,380,759 2,483, ,435, ,812 3,283,925 1,628,125 9,697,795 2,800, ,908, ,282 4,068,381 1,603,125 9,921,325 3,023, ,317, ,752 4,583,125 1,578,125 9,811,717 2,914, ,212, ,223 5,419,020 1,553,125 10,509,192 3,611, ,835, ,693 5,898,693 1,528,125 10,577,930 3,680,430 47,286,812 2,913,021 29,227,647 16,484,615 95,912,095 (1) Based on actual debt service at June 30, 2015, General Fund only - excludes debt being paid from the WPCD Fund, (2) Unissued debt relates to capital projects already authorized, but bonds/notes have not yet been issued - excludes authorized and unissued debt to be paid by the WPCD. An interest rate of 4.00% was used for all bonded debt projections. (3) Projected CEP debt resulting from 5 - Year Capital Expenditure Plan (CEP) as approved by the Town Council on August 25, 2015 and referendum on November 3, For subsequent years 6-10, the 5 - Year CEP average annual projected borrowing requirement was used. An interest rate of 4.0% was used for all bonded debt projections. (4) The approved $32.15 million WPCD Upgrade and Phosphorous Treatment project debt service (excluding $1.5 million of design debt service to be paid by the WPCD budget) was estimated with 2% CWF loans on $25.0 million and grants totaling $7.15 million. For purposes of this projection, construction is projected to begin on November 1, 2013 and completed January 1, The interim funding obligation will be due on July 1, Interim funding obligation interest is accrued from the start of construction through the date of the closing. Twelve months after project completion on January 1, 2018, a twelve month principal payment is due along with six months of interest. Principal and interest projections are based on a monthly, level principal payment starting in January A less aggressive pay-down option is available based on level monthly payments which would result in more interest accruing over the life of the loan. (5) FY 2016 budgeted debt service is $6,828,743, the Debt Reserve Fund is contributing $68,757, the net 2015 bond issue premium.

13 TOWN OF CHESHIRE GRANTS AND OTHER FUNDING SOURCES TOWN COUNCIL APPROVED ( ) FY CAPITAL EXPENDITURE PLAN PROJECT TOTAL PUBLIC WORKS ROADS, SIDEWALKS & DRAINAGE: Road Repavement Program - LOCIP Grant $ 180,000 $ 180,000 $ 180,000 $ 180,000 $ 180,000 $ 900,000 Public Works Dump Trucks and Plows.. 27, ,000 East Johnson Road Bridge Over Quinnipiac 80% 2,500, ,500,000 PUBLIC WORKS - SEWER & WATER: West Johnson Avenue Pump Station 20% , ,000 Cook Hill Pump Station 20% , ,000 CULTURAL SERVICES: Library Reconfiguration and RFID Conversion - State Library Construction Grant - 250, ,000 EDUCATION: Humiston/BOE Code Compliance - Phase 25% , ,000 Remedy Building Interior Deficiencies - 35%.. 484, ,000 Remedy Exterior Area Deficiencies - 20%... 50,200-87, ,800 Districtwide Roof Repairs and 25% ,250-31,250 62,500 Roof Replacement - Doolittle 25 % , ,000 Roof Replacement - Norton 25 % , , ,250 Highland Elementary School Building Improvements / 30% , ,000 Districtwide Lavatory 20 %.. 25,000 50,000 25,000 25,000 25, ,000 HVAC and Boiler Replacements and Repairs - Doolittle 20% (Eversource Rebate) , ,000 Window Replacements and Energy Improvements - Darcey, Highland, Chapman and 15%. 37,500 97, , , ,500 Total Grants and Other Funding Sources $ 3,303,700 $ 1,308,750 $ 683,850 $ 986,250 $ 892,500 $ 7,175,050 / J=NQR=J

14 TOWN OF CHESHIRE SUMMARY OF CAPITAL NONRECURRING (CNR) FUNDS TOWN COUNCIL APPROVED ( ) CAPITAL EXPENDITURE PLAN FUNCTIONAL CATEGORY / PROJECT TOTAL ADMINISTRATION AND FINANCE / PUBLIC - PROPERTY / GENERAL SERVICES: Revaluation..... $ - $ 315,000 $ - $ 125,000 $ - $ 440,000 Technology Reserve Fund... 90, , , ,000 Vehicle/Equipment Replacement Fund.. 245, , , , ,000 1,155,000 Geographic Information System. 75, ,000 Capital Planning Account , , ,000 Various Town Buildings - Improvements 200, , , ,000 Town Hall Window Replacement , ,000 Roof Replacements -Town Hall, Library and Fire HQ - 150, ,000 Wash Bay at Public Works Garage , ,000 Public Works Garage Rear Lot , ,000 Library Steps / Ramp Replacement , ,000 Parking Lots at Library, Police Station and PW Garage , , ,000 PUBLIC WORKS/ ROADS, SIDEWALKS & DRAINAGE: Tree Removal and Replanting 150, ,000 PARKS AND RECREATION: Park Improvements 160, ,000 Court Renovations at Various Parks , ,000 TOTAL PROJECTS ,000 1,127, , ,000 1,605,000 5,410,000 AVAILABLE FUNDS: Projected Investment Income.. (1) 10,000 10,000 10,000 10,000 10,000 50,000 General fund CNR appropriation (2) 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 5,500,000 Prior Year CNR appropriation balance (3) 114, , , , , ,075 TOTAL AVAILABLE FUNDS.. 1,224,075 1,414,075 1,397,075 1,624,075 1,859,075 5,664,075 PROJECTED CNR APPROPRIATION BALANCE $ 304,075 $ 287,075 $ 514,075 $ 749,075 $ 254,075 $ 254,075 (1) Investment income estimates are based on historical trends. (2) Operating budget appropriation for All subsequent year appropriations are estimates. (3) Prior Year CNR appropriation balance for FY16 consists of $ 32,476 derived from unappropriated investment income, grants and closed projects at June 30, 2015, and the following projects that were closed subsequently: # Property Revaluation $ 52, # Vehicles and Equipment $ 1, # Automated Recycling $ 27, J=NQS=J

15 l TOWN OF CHESHIRE SUMMARY OF CAPITAL PROJECTS PROPOSED FOR BONDING TOWN COUNCIL APPROVED ( ) CAPITAL EXPENDITURE PLAN (GROSS) FUNCTIONAL CATEGORY / PROJECT TOTAL ADMINISTRATION AND FINANCE / PUBLIC - PROPERTY / GENERAL SERVICES: Capital Planning Account.... $ 150,000 $ - $ - $ - $ - $ 150,000 PLANNING & DEVELOPMENT: Land Acquisition 500,000 1,000, ,000,000 2,500,000 PUBLIC SAFETY: Firefighting Equipment and Protective Clothing 145, , , ,000 Replace 1990 Pumping Engine # , ,000 Installation of Water Mains , , ,000 Replace 2000 Pumping Engine # , ,000 Replace 1992 Pumping Engine # , ,000 Replace 1994 Rescue # , ,000 PUBLIC WORKS - PUBLIC WORKS Sidewalk Program.. 200, , , , ,000 1,000,000 Public Works Vehicles (Non Dump Trucks) / Equipment 337, , , , ,000 1,732,000 Road Repavement Program 1,750,000 1,750,000 1,750,000 2,000,000 2,000,000 9,250,000 Public Works Dump Trucks and Plows.. 375, , , , ,000 1,578,000 South Brooksvale Bridge Over Willow Brook , , ,000 East Johnson Avenue Bridge Over Quinnipiac River 3,125, ,125,000 Mt. Sanford Road and S. Brooksvale Road Intersection Realignment - 700, ,000 PUBLIC WORKS - SEWER & WATER: West Johnson Avenue Pump Station Rehabilitation - 3,500, ,500,000 Cook Hill Pump Station Rehabilitation , ,000 Inflow and Infiltration (I&I) Remediation , , ,000 CULTURAL SERVICES: Library Reconfiguration and RFID Conversion - 500, ,000 LEISURE SERVICES: Tennis Court Renovations at Youth Center 260, ,000 Tennis Court Renovations at Cheshire Park , ,000 EDUCATION: Humiston/BOE Code Compliance - Phase IV ,000,000 2,000,000 Remedy Building Interior Deficiencies - CHS 1,383, ,383,000 Remedy Exterior Area Deficiencies - CHS 251, , ,000 Districtwide Roof Repairs and Replacements , , ,000 Roof Replacement - Doolittle Elementary ,500,000 1,500,000 Roof Replacement - Norton Elementary , , ,000 Vehicle Replacements- Transportation and Maintenance , ,000 Districtwide Repaving 250, , , ,000 Districtwide Sidewalk and Masonry Repairs - 150, , ,000 Cafeteria Renovations: CHS, Highland, Norton, Doolittle and Chapman - 275,000 4,350, ,000-4,865,000 Storage Solutions - CHS 260, ,000 Classroom Improvements Science Labs at CHS 200, ,000 Highland Elementary School Building Improvements / Additions , ,000 Districtwide Lavatory Improvements 125, , , , , ,000 HVAC and Boiler Replacements and Repairs - Doolittle School , ,000 Replacement of Underground Oil Storage Tanks 125, , ,000 One to One Learning Initiative - 150, , ,000 Window Replacements and Energy Improvements - Darcey, Highland, Chapman and CHS. 250, , ,000 1,000,000-2,850,000 Bus Depot Expansion , ,000 TOTAL PROJECTS FOR BONDING 9,686,000 11,029,000 11,473,000 8,526,000 8,133,000 48,847,000 AVAILABLE FUNDS: Grants: State / Federal / Local 3,303,700 1,308, , , ,500 7,175,050 NET BONDED PROJECTS $ 6,382,300 $ 9,720,250 $ 10,789,150 $ 7,539,750 $ 7,240,500 $ 41,671,950 J=NQT=J

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17 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: FINANCE PROGRAM ELEMENT: ADMINISTRATION & FINANCE PROJECT TITLE FY FY FY FY FY TOTAL Revaluation DR TM TC Technology Reserve Fund DR ,140 TM TC PROGRAM ELEMENT TOTAL DR ,580 TM TC DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS NET TOTAL J=NQV=J

18 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: GENERAL SERVICES PROGRAM ELEMENT: ADMINISTRATION & FINANCE PROJECT TITLE FY FY FY FY FY TOTAL Vehicle / Equipment DR ,229 Replacement Fund Total TM ,204 TC ,155 Vehicles-Parks & Recreation DR TM TC Vehicles-Police DR TM TC Vehicles-Fire DR TM TC Vehicles-Public Works DR TM TC Vehicles- Building DR TM TC Vehicles - Sewer DR TM TC Geographic Information DR System (GIS) TM TC Capital Planning Account DR TM TC PROGRAM ELEMENT TOTAL DR ,789 TM ,814 TC ,680 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND ,530 STATE / FEDERAL / LOCAL TOTAL REDUCTIONS ,530 NET TOTAL J=NRM=J

19 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: PUBLIC PROPERTY PROGRAM ELEMENT: ADMINISTRATION & FINANCE PROJECT TITLE FY FY FY FY FY TOTAL Various Town Buildings DR Improvements TM TC Town Hall Window Replacement DR TM TC Roof Town Hall, DR Library and Fire HQ TM TC Wash Bay at Public Works Garage DR TM TC Open Space Land Management DR Public Works Garage Rear Lot DR TM TC Library Steps/Ramp Replacement DR TM TC Parking Lots at Library, Police HQ, DR and Public Works Garage TM TC Building Assessment - Capital DR Planning PROGRAM ELEMENT TOTAL DR , ,490 TM ,000 2,290 TC ,000 2,290 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND ,000 2,290 STATE / FEDERAL / LOCAL TOTAL REDUCTIONS ,000 2,290 NET TOTAL J=NRN=J

20 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: PLANNING PROGRAM ELEMENT: PLANNING & DEVELOPMENT PROJECT TITLE FY FY FY FY FY TOTAL Land Acquisition DR 1,000 1, , ,000 TM 1,000 1, ,000 3,000 TC 500 1, ,000 2,500 PROGRAM ELEMENT TOTAL DR 1,000 1, , ,000 TM 1,000 1, ,000 3,000 TC 500 1, ,000 2,500 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS: NET TOTAL 500 1, ,000 2,500 J=NRO=J

21 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: FIRE PROGRAM ELEMENT: PUBLIC SAFETY PROJECT TITLE FY FY FY FY FY TOTAL Firefighting Equipment and DR Protective Clothing TM TC Replace 1990 Pumping DR Engine #3 TM TC Installation of Water Mains DR ,090 TM ,090 TC North End Fire Station DR ,500 4,500 Building Construction Only Replace 2000 Pumping DR Engine #7 TM TC Replace 1992 Pumping DR Engine #4 TM TC Replace 1994 Rescue #2 DR TM TC Replace 1998 Truck #2 DR , ,400 Aerial Apparatus PROGRAM ELEMENT TOTAL DR ,135 2,050 5,690 9,790 TM , ,190 3,890 TC , ,190 3,670 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS: NET TOTAL , ,190 3,670 J=NRP=J

22 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: POLICE PROGRAM ELEMENT: PUBLIC SAFETY PROJECT TITLE FY FY FY FY FY TOTAL Vehicle Replacement** Capital Planning Funds DR TM ** Police vehicle requests now seen under the Vehicle/Equipment Replacement Fund located under Administration & Finance - General Services. PROGRAM ELEMENT TOTAL DR TM DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS: NET TOTAL J=NRQ=J

23 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: PUBLIC WORKS - ROADS, SIDEWALKS & DRAINAGE PROGRAM ELEMENT: PUBLIC WORKS PROJECT TITLE FY FY FY FY FY TOTAL Sidewalk Program DR ,000 TM ,000 TC ,000 Public Works Vehicles & Equipment DR ,920 TM ,742 TC ,732 Fire Hydrant Maintenance DR Road Repavement Program DR 1,750 2,000 2,000 2,000 2,000 9,750 TM 1,750 1,750 1,750 2,000 2,000 9,250 TC 1,750 1,750 1,750 2,000 2,000 9,250 Public Works Dump Trucks and DR ,825 Plows TM ,578 TC ,578 South Brooksvale Bridge over DR Willow Brook TM TC East Johnson Avenue Bridge over DR 2, ,760 Quinnipiac River TM 2, ,760 TC 3, ,125 Mt. Sanford Rd.and S. Brooksvale Rd. DR Intersection Realignment TM TC Maple Ave Drainage Installation DR Harrison Rd. and S. Brooksvale Rd. DR Intersection Realignment PROGRAM ELEMENT TOTAL DR 5,702 4,114 3,024 3,624 3,161 19,625 TM 5,432 3,454 2,790 3,336 2,818 17,830 TC 5,787 3,454 2,790 3,336 2,818 18,185 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL 2, ,427 TOTAL REDUCTIONS 2, ,427 NET TOTAL 3,080 3,274 2,610 3,156 2,638 14,758 J=NRR=J

24 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: PUBLIC WORKS - TREES PROGRAM ELEMENT: PUBLIC WORKS PROJECT TITLE FY FY FY FY FY TOTAL Tree Removal and Replanting DR TM TC PROGRAM ELEMENT TOTAL DR TM TC DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS: NET TOTAL J=NRS=JJ

25 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: PUBLIC WORKS - SEWER & WATER PROGRAM ELEMENT: PUBLIC WORKS PROJECT TITLE FY FY FY FY FY TOTAL West Johnson Avenue Pump Station DR 3, ,500 Rehabilitation TM 3, ,500 TC 0 3, ,500 Cook Hill Road Pump Station DR Rehabilitation Project TM TC Inflow & Infiltration (I&I) Remediation DR TM TC PROGRAM ELEMENT TOTAL DR 3,500 1, ,850 TM 3, ,850 TC 0 3, ,850 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS: NET TOTAL 0 3, ,000 J=NRT=J

26 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: LIBRARY PROGRAM ELEMENT: CULTURAL SERVICES PROJECT TITLE FY FY FY FY FY TOTAL Phase 2 - Library Reconfiguration DR and RFID Conversion TM TC PROGRAM ELEMENT TOTAL DR TM TC DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL DR=Department Request NET TOTAL J=NRU=J

27 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: PARKS & RECREATION PROGRAM ELEMENT: LEISURE SERVICES PROJECT TITLE FY FY FY FY FY TOTAL Park Improvements DR TM TC Tennis Court Renovations at DR the Youth Center TM TC Court Renovations at DR Various Parks TM TC Tennis Court Renovations at DR Cheshire Park TM TC PROGRAM ELEMENT TOTAL DR TM TC DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PR0POSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS NET TOTAL J=NRV=J

28 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: EDUCATION PROGRAM ELEMENT: SUMMARY PROJECT TITLE FY FY FY FY FY TOTAL EDUCATION DR 1, ,000 4,072 CODE COMPLIANCE TM 1, ,000 4,072 TC 1, ,000 4,072 EDUCATION DR , ,675 ROOF REPLACEMENT TM , ,675 TC , ,675 EDUCATION DR 1,335 1,600 6,635 2, ,360 RENOVATION TM 1,210 1,600 6,185 2, ,785 TC 1,210 1,600 6,185 2, ,785 DR 0 TM 0 TC 0 DR 0 TM 0 TC 0 DR 0 TM 0 TC 0 DR 0 TM 0 TC 0 DR 0 TM 0 TC 0 DR 0 TM 0 TC 0 DR 0 TM 0 TC 0 PROGRAM ELEMENT TOTAL DR 2,969 1,725 7,248 4,165 3,000 19,107 TM 2,844 1,725 6,798 4,040 3,125 18,532 TC 2,844 1,725 6,798 4,040 3,125 18,532 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL ,648 TOTAL REDUCTIONS: ,648 NET TOTAL 2,247 1,546 6,444 3,234 2,413 15,884 J=NSM=J

29 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: EDUCATION PROGRAM ELEMENT: CODE COMPLIANCE PROJECT TITLE FY FY FY FY FY TOTAL Humiston/BOE Code-Phase IV DR ,000 2,000 Code Compliance TM ,000 2,000 ADA Improvements TC ,000 2,000 Remedy Bldg Interior Deficiencies DR 1, ,383 Civil Rights Compliance Review 2009 TM 1, ,383 Cheshire High School TC 1, ,383 Remedy Exterior Area Deficiencies DR Civil Rights Compliance Review 2009 TM Cheshire High School TC PROGRAM ELEMENT TOTAL DR 1, ,000 4,072 TM 1, ,000 4,072 TC 1, ,000 4,072 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL ,122 TOTAL REDUCTIONS: ,122 NET TOTAL 1, ,500 2,950 J=NSN=J

30 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: EDUCATION PROGRAM ELEMENT: ROOF REPLACEMENT PROJECT TITLE FY FY FY FY FY TOTAL District Roof Repairs and DR Replacements TM TC Roof Replacement - Doolittle DR , ,500 Elementary Roof TM , ,500 TC , ,500 Roof Replacement - Norton DR Roof Sections TM TC PROGRAM ELEMENT TOTAL DR , ,675 TM , ,675 TC , ,675 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS: NET TOTAL , ,007 J=NSO=J

31 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: EDUCATION PROGRAM ELEMENT: RENOVATION PROJECT TITLE FY FY FY FY FY TOTAL Vehicle Replacements DR Transportation and Maintenance TM TC Paving of Driveways and Parking DR Lots - Dodd, Doolittle TM TC Replacement of Underground Oil DR Storage Tanks - Chapman, Dodd, TM Doolittle, Darcey, Humiston and TC Highland Districtwide Sidewalk & Masonry DR Repairs TM TC Cafeteria Renovations DR , ,865 Cheshire High School, Chapman, TM , ,865 Doolittle, Highland and Norton TC , ,865 CHS - Detached Exterior DR Storage Building TM TC Classroom Improvements DR Science Labs at CHS TM TC Highland Elementary School DR Building Improvements/Additions TM TC Lavatory Improvements - Norton, DR ,000 Chapman and Darcey TM TC HVAC and Boiler Replacements DR and Repairs - Doolittle School TM TC DR=Department Request TM=Town Manager Recommendation TC=Town Council J=NSP=J

32 TOWN OF CHESHIRE FIVE YEAR CAPITAL EXPENDITURE PLAN FISCAL YEARS TO PROGRAM ELEMENT SUMMARY DEPARTMENT: EDUCATION PROGRAM ELEMENT: RENOVATION PROJECT TITLE FY FY FY FY FY TOTAL District Wide Technology - DR One to One Learning Initiative TM TC Window Replacements-CHS DR , ,850 TM , ,850 TC , ,850 Bus Depot Expansion DR TM TC PROGRAM ELEMENT TOTAL DR 1,335 1,600 6,635 2, ,360 TM 1,210 1,600 6,185 2, ,785 TC 1,210 1,600 6,185 2, ,785 DR=Department Request TM=Town Manager Recommendation TC=Town Council TOWN COUNCIL PROPOSED: CAPITAL & NONRECURR. FUND STATE / FEDERAL / LOCAL TOTAL REDUCTIONS NET TOTAL 1,147 1,452 5,963 2, ,927 J=NSQ=J

33 GRAPHS OF SIGNIFICANT FINANCIAL TRENDS J=NSR=J

34 TOWN OF CHESHIRE GRAPHS OF SIGNIFICANT FINANCIAL TRENDS SUMMARY Below is a brief description of the trends shown on the graphs in this section, all of which report historical data for ten years: General Fund Results From Operations Surplus: This graph reports results from operations budgetary revenue / expenditure variances, the net result of which has been consistently favorable. These surpluses add to the Town s general fund balance, a portion of which is generally appropriated to fund the subsequent year s budget. General Fund Unassigned Fund Balance: This graph reports General Fund Unassigned Fund Balance which is the cumulative results from annual operations less any amount appropriated to fund the subsequent year s budget and less any additional appropriations approved after the original budget was adopted. General Fund Unassigned Fund Balance as a Percentage of Actual Budgetary Expenditures: This graph reports General Fund Unassigned Fund Balance as a percentage of General Fund budgetary expenditures, including operating transfers out. Assessed Valuation of Taxable Property: This graph reports the net grand list as of October 1 of each year, as subsequently adjusted by the Board of Assessment Appeals. Mill Rate History: This graph reports the property tax mill rates approved by the Town Council to support the Town s annual General Fund budget. Tax Collection Rate Current Levy, Actual vs. Budget: This graph reports the actual percentage of taxes collected on the current levy and the percentage used to estimate these revenues for budgeting purposes. Combined Town and Police Pension Plans Actuarial Values of Assets vs. Accrued Liabilities: This graph compares the actuarial value of assets with corresponding accrued liabilities on a combined basis for both the Town and Police Pension Plans. Actuarial accrued liabilities consist of the portion of the actuarial present value of pension plan benefits and expenses that are not provided for by future normal costs. The actuarial value of assets consists of cash, investments and other property belonging to the pension plan, as used by the actuary for the purpose of an actuarial valuation. Gross Long-Term Debt Service as a Percentage of General Fund Actual Expenditures: This graph compares the annual debt service with total General Fund expenditures and operating transfers out. The gross debt service includes principal and interest payments on long-term financing and is not reduced by any offsetting grant or assessment revenues. J=NSS=J

35 This graph identifies the amount of the Town s operating budget surpluses, or combined budgetary revenue/expenditure variances, for each fiscal year. It indicates that the Town has achieved consistently favorable results from operations, the main contributing factor to the Town s fund balance, or reserve, account (see next page). J=NST=J

36 This graph identifies the amount of the Town s fund balance reserve, which is the cumulative results from operations (surplus or deficit) less any amount appropriated from this fund. Since this represents the Town s reserve or savings fund, it is important that it at least stays relatively constant, or ideally increases each year as the Town s total budget increases. The total amount of a surplus is very important, but the more critical information is how much it represents as a percentage of General Fund expenditures, which is explained on the next page. J=NSU=J

37 The previous page explains fund balance and provides the dollar amounts pertaining to this graph. While the total amount of fund balance is very important, the determining indicator as to its sufficiency is the percentage that the fund balance represents of the general fund budgetary expenditures. The Town s fund balance policy dictates that the Town should maintain an unassigned general fund balance of 8% to 9% of the previous fiscal year s budgetary operating expenditures, as recommended through best practices and credit rating agencies. This 8% to 9% range benchmark proves for a healthy reserve to support Town operations. J=NSV=J

38 Grand List as of 10/1 Residential Real Property Commercial and Industrial Real Property Other Real Property Personal Property Motor Vehicle Before Board of Assessment Appeals. 2 Revaluation. Source: Tax Assessor, Town of Cheshire. GrossTaxable Grand List (000 s) Less Exemptions (000's) Net Taxable Grand List (000 s) $ 2,835,197 $ 84,665 $ 2,750,532 2,806,804 80,054 2,726,750 2,770,330 71,960 2,698,370 2,936,016 54,431 2,881,585 2,918,798 55,113 2,863,685 2,899,654 58,766 2,840,888 2,885,498 59,275 2,826,223 2,872,182 55,781 2,816,401 2,574,872 44,312 2,530,560 2,545,100 37,115 2,507,985 2,515,541 33,585 2,481,956 Percent Change 0.9% 1.1% -6.4% 0.6% 0.8% 0.5% 0.3% 11.3% 0.9% 1.0% 1.2% This graph identifies the aggregate value of all taxable property on the Grand List (real estate, motor vehicle and personal property), as of October 1 for the succeeding fiscal year. The State requires that property assessment represents 70% of the market value of the property. Anomalies on this graph in 2010 and 2015 are associated with State mandated property revaluations. The detail at the bottom of the graph illustrates the shift in percentages of each type of property. An increase in the value of taxable property reduces the tax burden and generates more revenue at the existing mill rate. The increase from one year to the next when multiplied by the existing mill rate indicates the amount of additional tax revenue available for the budget. J=NTM=J

39 A resident s or business s tax obligation is determined by multiplying the mill rate times their assessed value, and since the assessed value of a parcel of real estate stays relatively constant except for revaluation years, the mill rate is the critical variable impacting a property owner s taxes. A mill is the value in dollars that a homeowner pays per $1,000 of assessed value. As illustrated above, the mill rate follows a trend of moderate increases, except in fiscal years 2010 and 2015 when fluctuations generated from property revaluations disrupted this trend. J=NTN=J

40 This graph compares the percentage of taxes estimated to be collected when the budget was developed to the actual percentage of taxes collected at the close of the fiscal year. The graph depicts some critical financial elements: 1. The continuing and extremely high percentage of tax collections. 2. The percentage difference between the estimated and actual collection rates has resulted in surplus revenue ranging from approximately $445,000 to $876,000 over the ten years depicted in this graph. J=NTO=J

41 The two pension plans represented in this graph, Town (General Government and non-certified Education employees) and Police Officers, have been closed out to new hires in the past few years. The Pension plans still represent a large potential future liability to the Town s financial operations. The level of pension funding is also one of the critical factors considered in a credit rating review, therefore it is important to adequately fund these plans. This graph illustrates that in fiscal OMMVI the liabilities of the plans exceeded the assets, due to the decline in the stock market in the fall of 2008 and a change in interest assumptions since then. Ideally the assets should exceed the liabilities, and this graph indicates that we are making progress in this effort through a multiyear phase in of contribution increases based on our actuary s recommendations. It is expected that within the next three years the assets should equal or exceed the liabilities. J=NTP=J

42 This measurement is one of the critical indicators of a community s fiscal health. Too much debt, or long term obligations, can become a significant financial burden and a sign of potential fiscal problems or limitations. Rating agencies and best practices recommend that this debt to total expense percentage should be 10% or less. As indicated in this chart, over the last ten years our long-term debt service percentages have been declining and are now well below the 10% threshold and at an all time low for the Town. J=NTQ=J