TOWN OF CHEEKTOWAGA Preliminary Budget Hearing October 24, 2017

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1 TOWN OF CHEEKTOWAGA 2018 Preliminary Budget Hearing October 24, 2017

2 TOWN OF CHEEKTOWAGA Two budgets for consideration: Benefit Basis Budget o o Termed such because taxes are levied on the basis of the level of services received Includes sewer, hydrant districts, and drainage Ad Valorem Budget o o Termed such because taxes are levied based on assessed real property value Includes general, town-outside village, highway, garbage and lighting funds

3 Budget Advisory Committee This voluntary committee was formed to review different aspects of the budget. After getting an understanding of the various aspects of the budget, they gave some recommendations They recommended 5% reduction in overtime lines, and 15% reduction in non-personnel appropriations.

4 The Budget Process Early August - requests are sent to each department head Late August - departmental requests due to Supervisor and are then reviewed and evaluated Late August/early September departmental budgets accumulated and department heads meet with the Supervisor and Director of Finance Mid September - payrolls, benefits, debt service, estimated revenues are all computed Mid September complete budgets for each fund, determine tax rate implications and make adjustments September 30 - File tentative budget October - hold public hearing, consider comments and make adjustments November - Adopt budget and submit to County (by 11/20)

5 Millions How The Budget Works $91.2 $67.9 $6.8 appropriations property taxes fund balance/reserves other revenues 10 0 $16.4

6 Average homeowner s tax bill County 13% Fire Districts 3% Town 35% School districts 49%

7 Tax cap The NYS Property Tax Cap is limited to an increase in property taxes to the lower of: o Two percent; or o the rate of inflation which for 2018 has been determined to be 1.84% The Town s allowable increase in tax levy per the NYS calculations is $2,844,143 Our proposed increase is $1,921,442 The Town is within the tax cap per NYS guidelines

8 Appropriations by function Public Safety (Police & code enforcement) 35.0% Highway & Street Lighting 16.8% Sewers, Storm Drainage & Hydrants 15.7% General Govt courts, assessor, town clerk, & admin offices 11.8% Garbage & recycling 11.5% Culture & Recreation parks, youth, recreation & seniors 9.2%

9 Appropriation changes Impact of Police contract settlements for 2018 approx $435,000 Impact of Town of Cheektowaga Supervisory Unit contract settlement in $56,000 Impact of raises for Non union department heads and management employees - $54,400 Decrease in OT budgets (other than police and dispatchers) cut $32,775 Dispatch overtime increase due to eliminating one position in 2017 and sick time taken by employees - $57,400 Police overtime increase due to higher wage rates for $10,500 Reduction of positions where retirements have occurred o Eliminated positions 1 assistant field appraiser in assessor office - $6,500 1 sr. clerk stenographer in engineer office - $51,000

10 Full time employee headcounts 480 employees

11 Appropriation changes Savings from newer employees replacing employees that have retired total $51,400 Other contractual payroll increases approx. $40,000 Part-time payroll o Increases due to minimum wage going up from $9.70 per hour to $10.40 per hour approx. $17,000 o Additional part time staffing in some departments added $30,000 Equipment purchases were reduced by $323,529

12 Appropriation changes Non Personnel (Outside contracts or services) appropriation savings o Erie County assessment challenge chargebacks reduced $50,875 o Assessment equity program RFP reduced cost by $12,000 o Gas and Diesel costs have been reduced $116,000 o Contracted appraisals for assessments reduced by $50,000 o Other various 5-15% cuts in these various lines saved $300,000 Items that increased due to contractual agreements: o Buffalo Sewer Authority charges increased $400,000 o Erie County Sewer District charges increased $122,740 o Sanitation landfill costs increased for CPI - $75,000 o Recycling program contract - $19,000

13 Appropriation changes Fringe Benefit costs will rise due to the following: o Payroll taxes increased on higher wages by $6,100 o Medical/health ins costs increased by 11.2% totaling $1,300,000 Workers compensation costs estimates decreased by $49,600 Debt service increases related to new debt service payments to be made on Bonds totaled $679,000

14 Other Revenues A few other revenue streams are increasing o Cable franchise revenues expected increase by $25,000 o Departmental revenues (in youth and recreation and senior services) adjusted to increase revenue by $7,350 o County revenue for maintaining county roads increase by $8,000 o Interest rates are increasing helping interest income by $17,000 o Mortgage taxes increasing due to strong housing sales by $25,000 o More accurate estimates of Sales tax revenue added $370,000 Payments in lieu of Taxes (PILOTS) are projected to decrease by $23,400 Decrease in traffic safety stop DWI funding reduced revenues by $70,000

15 Appropriated fund balance This is basically what we believe we can use of our cash reserves. We have used our fund balances in 2016 in most funds and project use of those balances in 2017 Therefore we must lower the amount that we plan to use The amount we lowered in 2018 is $23,535.

16 Budget change summary Other Appropriated Tax Appropriations Revenues Fund Balance Levy Total 2017 budget $ 88,919,419 $ 16,062,057 $ 6,870,720 $ 65,986,642 $ 88,919,419 Adjustments for 2018 Additional other revenues 359, ,007 Less fund balance to use (23,535) (23,535) Payroll increases 562,982 Equipment reductions (323,529) outside contracted costs increases 92,459 Fringe benefits Medical costs 1,295,474 Debt service change 679,128 Workers compensation cost savings (49,600) Amount of property taxes to balance budget ,921,442 1,921,442 Total adjustments 2,256, ,007 (23,535) 1,921,442 2,256,914 % change 2.54% 2.24% -0.34% 2.91% 2018 Budget $ 91,176,333 $ 16,421,064 $ 6,847,185 $ 67,908,084 $ 91,176,333

17 2018 Benefit Basis Budget Preliminary avg tax bill change Consolidated Sewer Mandated User Charge $ $ $ Consolidated Sewer Tax Amount Hydrant District Tax Amount (0.50) Drainage District Tax Amount (0.01) $ $ $ (Based on $100,000 assessed valuation)

18 Townwide (ad-valorem) taxes Avg home Preliminary taxbill change Town General Fund $ $ $ 9.90 Highway Fund Consolidated Garbage General Lighting $ 1, $ 1, $ (Based on $100,000 assessed valuation)

19 Average tax bill since avg tax bill

20 Average homeowner change In 2018, average property owner (house assessed at $100,000) will pay approximately $29.83 more than the 2017 Town tax bill. The 2018 average Town tax bill is $62.63 lower than the 2011 tax bill