Town of Brunswick, Maine

Transcription

1 Town of Brunswick, Maine Finance Committee Meeting Thursday, September 21, :30 5:00 PM 85 Union Street Council Chambers Agenda 1. Acknowledgement that meeting was properly noticed 2. Adjustments to agenda / Public comment 3. Approval of meeting minutes from 8/17/17 4. Long term financial projections a. Review model and assumptions b budget outlook & planning 5. Cash & investments report 6. Finance Report (JH) a. August expenditure & revenue reports b. Fund balance presentation 7. Adjourn

2 Town of Brunswick, Maine Town Finance Committee Thursday, August 17, :30 PM 85 Union Street Room 206 Meeting Minutes (DRAFT) Elected Officials: Staff: Alison Harris, Jane Millett, Kathy Wilson (committee members) Dave Watson John Eldridge, Julie Henze Branden Perreault, Kelly Wentworth, Mark Waltz 1. Acknowledgement that meeting was properly noticed JH confirmed that the meeting was on the Town Calendar 2. Adjustments to agenda / Public comment Adjustments: None Public comment: Jean Powers Spoke on the source of funds to offset reduction in Homestead Exemption reimbursement, feels that the Town should use some of the proceeds from the sale of 946 Mere Point Rd. Recommends that up to $250K could go to improve water access, and the rest should go to tax relief as well as to cover legal fees for the lawsuit. Committee discussed the proceeds from the sale of 946 Mere Point Rd, and how the remaining balance to be used for water access was calculated. JE and JH confirmed that proceeds were put toward taxes, interest and associated fees, and costs of the sale, but not for legal fees associated with the lawsuit. Council has not yet discussed this in detail. Council will address the question of the Homestead Exemption reimbursement shortfall at a future meeting. Joe Ciarrocca Spoke in response to the TR article, which he feels implied that Town government does not trust the citizens. Pointed out the need to talk about integrity, and whether government has given the citizens any reason to trust government. Reflected on the current state of society, and the divisiveness which is common in all levels of government. Asks that government consider the attitude which is projected to the citizens. 3. Approval of meeting minutes from 7/20/17 One correction to add Kathy s last name in committee member listing. AH moved, JM seconded, minutes unanimously approved with correction. 4. Property Tax Relief programs JH introduced a draft ordinance. Highlighted sections and the attached memo indicate several areas in question. Finance Committee is at the point to review issues and decide how to put forward to Council. JE pointed out that as the program needs to be designed to ensure fairness in the administration, as the funding is likely to come from property taxes. 1

3 Discussion of the financial eligibility review done by the Maine Property Tax Fairness Credit (MPTFC) program; BP stated that it is income based, does not consider assets. BP reviewed the updated data from the State, indicating the amounts received by Brunswick residents. JM in favor of bringing ordinance forward in a draft form, to hear what Council has to say. Public comment: Jean Powers stated that the program should be for property taxpayers for 10 years/primary residence/70+ years of age. Stated that there are many residents who don t apply for the MPTFC because they can t afford to pay a tax preparer, and filing is a lot of work for not very much money. Suggests that instead of sending refund in a check, to apply it to the next year s taxes. (JE pointed out problem with this) Proposes that the Town approach BDA and business owners, as well as individuals, for contributions to fund the program. Rudi Smith Comments on number of things that need addressing: 1) donations to the program would be to the Town of Brunswick tax deductible? 2) what is considered income? Investment income? Include consideration of assets? Fairness for those with strong savings habits? 3) would intermittent residency be considered? How would years be counted if there were a few years away? 4) If renters are included, what if the homeowner also applies? Question about other communities with programs and how much is distributed. BP reviewed the matrix from the July meeting, and described Saco s work off program. JE pointed out that compensation for service raises questions about income, minimum wage, worker s comp, etc, and would want a legal opinion. Committee reviewed the draft ordinance and raised questions to be highlighted in the next draft: Discussion of including renters in the program committee feels the program may be more appropriate for homeowners, but should stay in the draft for further discussion by the Council. Per committee unexpended funds in any year to revert to the general fund. Annual expenditures capped at a total amount. Dilemmas with evaluating financial need. How to consider the value of the property in the calculation? How is residency calculated? 10 years for draft. Also question of continuity. Include reference to Homestead Exemption would be required for eligibility of homeowner. Age 70 years or older. Verification with driver s license/photo ID. MPTFC required for eligibility, and authorization for the Town to receive information from the State on credit received. Dates leave blank for now. Committee directed staff to bring the draft ordinance to the Town Council for input, and for approval to continue further development of a tax relief program Budget planning JH presented DRAFT calendar in two formats. Primary directive from both Town and School Finance Committees was to move the budget process earlier. Introduced Kelly Wentworth, School Business Manager, noting that on the proposed calendar the school board is scheduled to finalize the budget submission on 3/14/18, and the Manager s budget would be delivered to the Council on 3/29/18. KW stated that this is an ambitious goal, but is hopeful that in the second year of the state s biennial budget there will be less uncertainty. Any changes to the law could cause delays. 2

4 AH noted the 1/16/18 TC meeting to set a target tax rate and share. Appreciates that this will be helpful to staff in developing a budget. Would like to meet with School Board prior to this date. Discussion of the budget workshops and how to encourage Councilors to attend. JH will change from FC hosted workshops to Town Council Budget Workshops. Dave Watson pointed out that there will be two new members of the Council in 2018, so the budget workshops are important to help with their learning curve. The new schedule will help with this. Public comment: Jean Powers question about conflict of interest if Town Councilor is employed by the Dept of Education. JE clarified that Councilors can t be Town employees. Committee approved of the draft schedule/calendar. Discussion of setting a target tax rate increase in January, with the committee agreeing that a preliminary target should be provided for school and the TM to work with. During the budget development, this can be adjusted, with opportunity for addition if the case is made for higher expenditures. Discussion of how the Town/School/County share can be targeted. AH stressed wish to have a joint meeting with the School Finance Committee to discuss the share prior to the 1/16/18 TC meeting. JH suggested changing 1/18/18 Finance Committee meeting to one week earlier 1/11/18. This is a joint FC meeting for the annual audit report, and could include budget discussion/work. JH will make suggested changes to the draft calendar and forward to KW and JE for distribution. 6. Long term financial planning JH presented an excel spreadsheet to forecast operating budgets for next six years. Intended to dovetail with CIP debt forecasts, the model uses assumptions to project revenues, expenditures and property taxes. This effort is partly in response to questions from the bond rating agencies regarding formal long term budgeting, but more importantly to provide a longer view to the elected officials, and to anticipate the annual budget development. JE pointed out the long term financial planning efforts done in the past, and the difficulties with projecting the largest non tax revenues, such as State Aid to Education. Hope is to work with the School Dept to develop good estimates. Discussion of how the CIP debt service (for recommended projects) is included, and how the model could be adjusted to incorporate the projects in development. JH would also like to fine tune the model to enable changing assumptions for each year. Plan is to bring this back to the FC regularly and develop a process which can be called formal. 7. Finance Report a. JH presented July 2017 budget reports. Commented on auto excise tax which continued to be surprisingly strong. b taxes sample of assessment notices sent to taxpayers. No substantive discussion. c CIP development schedule. Committee reviewed Mgr s CIP memo and schedule of Fall 2017 meetings/workshops. Discussion of the decision process for the placement of specific projects within the CIP document. To be worked on during the CIP development, and is ultimately decided on by the Council. 8. Adjourn 3

5 January 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday New Year s Day 2 Council Mtg School Board Meeting TC/SB Finance Committee Meeting Audit & Budget Council Mtg Munic Dept Martin Luther King, Jr. Day Set tax rate Personnel target/share Budgets due

6 February 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Council Mtg 6 7 School Board Meeting (?) SB Budget Workshop Finance Committee Workshop CIP 2 Munic dept budgets due Finance Committee Meeting President s Day Council Mtg SB Budget Workshop

7 March 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Council Mtg Mgr s CIP 11 Daylight Savings Begins Council Mtg 6 7 SB Budget Public Forum School Board Meeting Finalize Budget 1 TC budget workshop Mgr s prelim budget 8 TC budget workshop Dept presentations 15 TC Finance Committee Meeting TC budget workshop Dept presentations TC budget workshop Mgr s budget Passover 31

8 1 April 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 6 7 April Fool s Day Easter Sunday 2 Council Mtg Council Mtg Set Budget/CIP Public Hearing Budget/CIP Workshop School Budget School Board Meeting 12 Budget/CIP Workshop TC Finance Committee Meeting Budget/CIP Workshop (if needed) Budget/CIP Workshop

9 May 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Council Mtg Budget/CIP Adoption Council Mtg 1 2 SB Budget Meeting (if needed) 8 9 School Board Meeting 3 Budget/CIP Pub Hearing 10 Budget/CIP Workshop (if needed) TC Finance Committee Meeting Memorial Day

10 June 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Council Mtg Sch Budget Referendum Council Mtg 13 School Board Meeting 14 TC Finance Committee Meeting

11 Town of Brunswick This is a listing of elements in the municipal budget, sorted in order of priority. It is intended to facilitate discussion. It is NOT a proposal or recommendation. Item Budget Legally Required Fire Suppression (Hydrants) 470,000 General Assistance 178,008 Debt Service 873,286 Subsidies to Other Funds Landfill 150,000 Train Station 75,000 Public Safety Street Lights 221,000 Traffic Signals 31,600 Fire Department Personnel Costs 2,969,989 Admin/Prof Services & Supplies 224,485 Building Operations & Maintenance 97,825 Vehicle Operations & Maintenance 173,750 Police Dept Personnel Costs Patrol 3,501,804 Marine Resources 164,164 Dispatch 796,926 Admin/Prof Services & Supplies 277,325 Building Operations & Maintenance 110,105 Vehicle Operations & Maintenance 190,960 Public Works Personnel Costs 1,840,594 Admin/Prof Services & Supplies 40,510 Building Operations & Maintenance 108,585 Vehicle Operations & Maintenance 448,450 Contracted Maintenance Services 292,673 Maintenance Materials 360,620 Refuse & Recycling 985,891 Infrastructure Sidewalks 50,000 Road Paving 750,000 CIP Reserves Fire Vehicle Replacement 108,243 Police Vehicle Replacement 152,000 PW Equipment Replacement 347,460 P&R Vehicle Replacement 55,000 Facilities Reserve - General Government Personnel Costs 2,828,939 Risk Management 481,470 Other Contractual Services 449,633 Materials & Supplies 60,758 Building Operations & Maintenance 139,504 Parks and Recreation Personnel Costs 1,006,187 Admin Services 25,602 Building Operations & Maintenance 159,977 Facilities Operations & Maintenance 200,454 Organizations People Plus 123,060 Teen Center 17,000 Curtis Library 1,426,425 Brunswick Downtown Assoc. 100,000 Brunswick Explorer 60,000 MetroBreez 33,334 All Other 47,207 \\thall-fs1\department$\finance\finance\budget\budget \Manager's\Municipal priority listing 9/14/2017

12 Town of Brunswick, Maine General Fund Change Actual Actual Actual Actual Actual Actual over For the Year Ended June 30, Years Revenues Property Taxes 29,465,407 30,921,038 33,724,924 35,539,970 37,511,287 39,360, % Other Taxes 2,549,546 2,653,927 2,904,995 2,950,347 3,071,620 3,170, % Licenses, Fees & Permits 337, , , , , , % Intergovernmental - Municipal 1,872,800 1,901,395 1,894,414 1,388,353 1,452,683 1,458, % Intergovernmental - Education 13,193,019 12,556,457 10,054,448 10,477,217 9,961,610 10,327, % Charges for Service - Municipal 1,667,619 1,138,789 1,200,922 1,141,262 1,184,879 1,279, % Charges for Service - Education 758, , , , , , % Fines & Penalties 29,063 20,019 34,756 39,511 56,197 43, % Interest on Investments 41,388 45,402 19,177 13,687 10,156 37, % Donations & Contributions 124, , , , , , % Other - Municipal 332, , , , , , % Other - Educational 125, , , , ,957 41, % Total 50,498,716 50,584,602 51,332,437 52,913,128 54,536,332 56,802, % Other Sources Sale of Assets - 65, , ,700 Transfers In 383, , , ,265 1,052, , % Use of (Incr) Fund Bal - Munic 165, ,095 (638,129) 2,191,569 (582,343) (1,813,981) % Use of (Incr) Fund Bal - Educ (683,236) 1,066,844 1,233, , ,791 (1,677) -69.9% Total (134,395) 1,954,458 1,552,077 3,316,648 1,002,598 (1,189,016) 54.7% Total Revenues and Other Sources 50,364,321 52,539,060 52,884,514 56,229,776 55,538,930 55,613, % Expenditures General Government 3,218,401 3,223,623 3,281,811 3,552,992 3,517,191 3,548, % Public Safety 7,089,887 7,258,896 7,681,120 8,013,000 8,295,800 8,372, % Public Works 3,221,383 3,040,274 3,389,760 3,690,883 4,110,190 3,558, % Human Services 150, , , , , , % Education 30,518,402 30,987,808 31,089,532 32,910,204 33,356,324 33,865, % Recreation & Culture 1,989,193 2,163,371 2,322,958 2,490,538 2,669,911 2,650, % Debt Service (existing munic debt) 284, , , , , , % CIP Debt Service County Tax 1,171,049 1,187,020 1,183,264 1,249,487 1,333,350 1,360, % Unclassified 120, , ,424 36,996 8,683 29, % Total 47,763,321 48,885,130 49,926,304 53,030,185 54,385,570 54,460, % Other Uses Transfer Out to Special Revenue 195, ,500 5, % Transfer Out to Capital Reserves 2,201,000 3,448,930 2,708,210 2,959, , , % Trans Out to CIP projects Transfers Out to Enterprise 205, , , , , , % Total 2,601,000 3,653,930 2,958,210 3,199,591 1,153,360 1,153, % Total Expenditures and Other Uses 50,364,321 52,539,060 52,884,514 56,229,776 55,538,930 55,613, % "Gap"- Rev over/(under) Exp Tax Rates (per 1,000) Municipal % School % County % % Percent Increase 1.46% 3.54% 5.15% 6.59% 3.47% 3.24% \\thall-fs1\department$\finance\finance\budget\historical\gf multiyr comparisons /12/2017

13 Town of Brunswick, Maine General Fund For the Year Ended June 30, Revenues Property Taxes Other Taxes Licenses, Fees & Permits Intergovernmental - Municipal Intergovernmental - Education Charges for Service - Municipal Charges for Service - Education Fines & Penalties Interest on Investments Donations & Contributions Other - Municipal Other - Educational Total Other Sources Sale of Assets Transfers In Use of (Incr) Fund Bal - Munic Use of (Incr) Fund Bal - Educ Total Total Revenues and Other Sources Expenditures General Government Public Safety Public Works Human Services Education Recreation & Culture Debt Service (existing munic debt) CIP Debt Service County Tax Unclassified Total Other Uses Transfer Out to Special Revenue Transfer Out to Capital Reserves Trans Out to CIP projects Transfers Out to Enterprise Total Total Expenditures and Other Uses "Gap"- Rev over/(under) Exp Tax Rates (per 1,000) Municipal School County Percent Increase Budgeted Budgeted Projected Projected Projected Projected Projected Projected Projected ,984,499 41,614,938 42,863,386 44,149,288 45,473,767 46,837,980 48,243,119 49,690,413 51,181,125 3,313,000 3,325,842 3,392,359 3,460,206 3,529,410 3,599,998 3,671,998 3,745,438 3,820, , , , , , , , , ,449 1,402,237 1,409,050 1,437,231 1,465,976 1,495,296 1,525,202 1,555,706 1,586,820 1,618,556 10,976,063 10,514,745 10,725,040 10,939,541 11,158,332 11,381,499 11,609,129 11,841,312 12,078,138 1,162,960 1,166,773 1,190,108 1,213,910 1,238,188 1,262,952 1,288,211 1,313,975 1,340,255 83,339 71,338 72,765 74,220 75,704 77,218 78,762 80,337 81,944 40,060 39,500 40,290 41,096 41,918 42,756 43,611 44,483 45,373 60, , , , , , , , ,302 30,000 30,000 30,600 31,212 31,836 32,473 33,122 33,784 34, , , , , , , , , ,072 63,000 63,000 64,260 65,545 66,856 68,193 69,557 70,948 72,367 57,762,598 59,119,521 60,718,061 62,361,057 64,049,771 65,785,505 67,569,593 69,403,415 71,288, , , , , , , , , , , , , , , , , , ,000 2,599,363 2,611,364 2,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 3,713,363 3,706,364 3,055,900 2,517,018 2,378,358 2,339,925 2,351,724 2,363,758 2,376,033 61,475,961 62,825,885 63,773,961 64,878,075 66,428,129 68,125,430 69,921,317 71,767,173 73,664,421 3,892,591 4,000,751 4,080,766 4,162,381 4,245,629 4,330,542 4,417,153 4,505,496 4,595,606 8,901,684 9,231,933 9,416,572 9,604,903 9,797,001 9,992,941 10,192,800 10,396,656 10,604,589 3,898,766 4,027,323 4,107,869 4,190,026 4,273,827 4,359,304 4,446,490 4,535,420 4,626, , , , , , , , , ,654 37,695,535 37,878,469 38,636,038 39,408,759 40,196,934 41,000,873 41,820,890 42,657,308 43,510,454 2,843,126 3,012,905 3,073,163 3,134,626 3,197,319 3,261,265 3,326,490 3,393,020 3,460, , , , , , , , , ,553-82,875 81,088 1,896,635 1,893,372 1,890,110 1,886,847 1,886,847 1,410,855 1,517,700 1,563,231 1,610,128 1,658,432 1,708,185 1,759,431 1,812,214 1,866, , , , , , , , , ,752 60,022,133 61,138,182 62,560,703 63,782,340 66,846,497 67,723,071 69,033,745 70,291,434 71,660, ,259,828 1,462,703 1,491,957 1,521,796 1,552,232 1,583,277 1,614,943 1,647,242 1,680, , , , , , , , , , , , ,000 75,000 75,000 75,000 75,000 1,453,828 1,687,703 1,936,957 1,946,796 1,977,232 2,058,277 1,939,943 1,972,242 2,005,187 61,475,961 62,825,885 64,497,660 65,729,136 68,823,729 69,781,348 70,973,688 72,263,676 73,665, (723,699) (851,061) (2,395,600) (1,655,918) (1,052,371) (496,503) (809) Rate based on valuation 3.49% 2.51% Includes $200K budget amendment Assumptions Revenues/Other Sources Prop tax revenues change: 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Munic Intergovt revs change: 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Educ Intergovt revs change 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% All other revenues change: 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Trans in (TIF revs) change: 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Expenditures/Other Uses Municipal exp change: 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Education exp change: 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% County Tax change 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Trans to Reserves change: 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% CIP Debt Service based on CIP Trans out to CIP Proj based on CIP Trans out to landfill ending 2022 \\thall-fs1\department$\finance\finance\budget\historical\gf multiyr comparisons /12/2017

14 Town of Brunswick Debt Service Debt Service as of Fiscal 2006 GO Bonds - Emerson Station 2010 Elementary School Bonds Year Principal Interest Total Principal Interest Subsidy Credit Total , , , ,073, , (210,211.74) 1,485, , , , ,073, , (198,583.49) 1,462, , , , ,073, , (185,937.40) 1,436, , , , ,073, , (172,915.72) 1,411, ,073, , (159,518.45) 1,384, ,073, , (145,557.79) 1,357, ,073, , (131,221.54) 1,328, ,073, , (116,415.81) 1,299, ,073, , (101,140.59) 1,269, ,073, , (84,068.17) 1,236, ,073, , (65,386.35) 1,200, ,073, , (46,704.54) 1,163, ,073, , (28,022.73) 1,127, ,073, , (9,340.87) 1,091, TOTALS 800, , , ,023, ,886, (1,655,025.19) 18,254, Fiscal 2011 GO Bonds - various 2013 GO Bonds - Police Station 2017 GO Bonds - various Year Principal Interest Total Principal Interest Total Principal Interest Total , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , TOTALS 1,080, , ,144, ,400, ,034, ,434, ,781, , ,064, Fiscal SRRF MMBB Bonds SRRF MMBB Bonds TOTAL BONDS Year Principal Interest Total Principal Interest Total Principal Interest Subsidy Credit Debt Service , , , , ,968, , (210,211.74) 2,598, , , , , ,112, , (198,583.49) 2,690, , , , , ,112, , (185,937.40) 2,639, , , , , ,112, , (172,915.72) 2,587, , , , , ,642, , (159,518.45) 2,073, , , ,625, , (145,557.79) 2,017, , , ,545, , (131,221.54) 1,899, , , ,545, , (116,415.81) 1,860, , , ,545, , (101,140.59) 1,819, , , ,545, , (84,068.17) 1,774, ,413, , (65,386.35) 1,595, ,383, , (46,704.54) 1,518, ,383, , (28,022.73) 1,473, ,383, , (9,340.87) 1,427, , , , , , , TOTALS 772, , , , ,944, ,332, (1,655,025.19) 28,622, \\thall fs1\department$\finance\finance\financial Reports\Audits\Audit \Spreadsheets\Debt Service /13/2017

15 Town of Brunswick Investment Policy I. Introduction The intent of the Investment Policy of the Town of Brunswick ( Town ) is to define the parameters within which funds are to be managed. In methods, procedures and practices, the policy formalizes the framework for the Town s investment activities that must be exercised to ensure effective and judicious fiscal and investment management of the Town s funds. The guidelines are intended to be broad enough to allow the investment officer to function properly within the parameters of responsibility and authority, yet specific enough to adequately safeguard the investment assets. II. Governing Authority The investment program shall be operated in conformance with federal, state, and other legal requirements, including the State of Maine Title 30-A M.R.S.A. section 5706, and III. Scope This policy applies to activities of the Town of Brunswick with regard to investing the financial assets of all funds. Funds held by the Town as trustee or fiscal agent are excluded from these rules; however, all funds are subject to regulations established by the State of Maine. The covered funds, and any new funds created by the Town unless specifically exempted by the oversight board and this policy, are defined in the Town of Brunswick s Comprehensive Annual Financial Report. Proceeds from certain bond issues, and separate endowment assets are covered by separate policies. For bond proceeds, investment earnings are governed by arbitrage rules. Endowment assets, specifically the trust funds held by the Town both as permanent funds and private purpose funds, are invested in accordance with the policies and procedures developed by the Trust Fund Advisory Committee. Except for funds in certain restricted and special funds, the Town commingles its funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income may be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. IV. General Objectives The primary objectives, in priority order, of investment activities shall be: 1. Safety Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The goal will be to mitigate credit risk and interest rate risk. a. Credit Risk The Town of Brunswick will minimize credit risk, which is the risk of loss due to the failure of the security issuer or backer, by: Limiting investments to the types of securities listed in Section VIII of this Investment Policy Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the Town will do business in accordance with Section VI, and 1 Investment Policy Adopted 10/3/16

16 Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. b. Interest Rate Risk The Town of Brunswick will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by: Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools and limiting the average maturity of the portfolio in accordance with this policy (see Section IX). 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. 3. Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints of safety and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. 4. Special Considerations Where possible, funds may be invested for the betterment of the local economy or that of local entities within the State. The Town may accept a proposal from an eligible institution which provides for a reduced rate of interest provided that such institution documents the use of deposited funds for community and economic development projects. V. Standards of Care 1. Prudence The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal liability for an individual security s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. The "prudent person" standard states that, Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. 2. Ethics and Conflicts of Interest 2 Investment Policy Adopted 10/3/16

17 Officers and employees involved in the investment process shall refrain from personal activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. Disclosure shall be made to the governing body. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the Town of Brunswick. 3. Delegation of Authority and Responsibilities Authority to manage the investment program is granted to the Treasurer, hereinafter referred to as investment officer and derived from the following: Brunswick Town Charter, Article V, Section 507. Responsibility for the operation of the investment program is hereby delegated to the investment officer, who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this Investment Policy. All participants in the investment process shall seek to act responsibly as custodians of the public trust. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and supporting procedures. VI. Authorized Financial Institutions, Depositories, and Broker/Dealers 1. Authorized Financial Institutions, Depositories, and Broker/Dealers A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence. These may include primary dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). All broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate: Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines Proof of FINRA certification Proof of state registration Certification of having read and understood and agreeing to comply with the Town of Brunswick s investment policy. Evidence of adequate insurance coverage. A periodic review, at least once every five years, of the financial condition and registration of all qualified financial institutions and broker/dealers will be conducted by the investment officer. 2. Minority, Emerging and Community Financial Institutions From time to time, the investment officer may choose to invest in instruments offered by minority, emerging and community financial institutions. All terms and relationships will be fully disclosed prior to purchase, and will be reported to the appropriate entity on a consistent basis and should be consistent with state or local law. VII. Safekeeping and Custody 1. Delivery vs. Payment All trades of marketable securities will be executed (cleared and settled) on a delivery vs. payment 3 Investment Policy Adopted 10/3/16

18 (DVP) basis to ensure that securities are deposited in the Town of Brunswick s safekeeping institution prior to the release of funds. 2. Third-Party Safekeeping Securities will be held by an independent third-party custodian selected by the Town. All securities will be evidenced by safekeeping receipts in the Town s name. 3. Internal Controls The investment officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town are protected from loss, theft or misuse. Specifics for the internal controls shall be documented in written procedures that shall be reviewed and updated annually. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that ( 1 ) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. The internal controls shall address the following points at a minimum: Control of collusion Separation of transaction authority from accounting and recordkeeping Custodial safekeeping Avoidance of physical delivery securities Clear delegation of authority to subordinate staff members Written confirmation of transactions for investments and wire transfers Dual authorizations of wire transfers Staff training and Review, maintenance and monitoring of security procedures both manual and automated. The external auditor shall provide an annual independent review to assure compliance with state law, policies and procedures. VIII. Suitable and Authorized Investments 1. Investment Types and Credit Guidelines Consistent with the GFOA Policy Statement on State and Local Laws Concerning Investment Practices, the following investments will be permitted by this policy and are those defined by state and local law where applicable. Typical types of securities include: U.S. Treasury and other government obligations that carry the full faith and credit guarantee of the United States for the payment of principal and interest; Federal Agency or U.S. government sponsored enterprises (GSE) obligations, participations or other instruments; Certificates of Deposit; Bankers' acceptances; Commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency; Investment-grade obligations of state, provincial and local governments and public authorities; Fully collateralized Repurchase agreements collateralized in compliance with this Policy, governed by a SIFMA Master Repurchase Agreement and with a maximum maturity; SEC registered money market mutual funds; and 4 Investment Policy Adopted 10/3/16

19 Local government investment pools. 2. Collateralization Where allowed or required by state law and in accordance with the GFOA Recommended Practices on Collateralizing Public Deposits, full collateralization will be required on all demand deposit accounts, including checking accounts and non-negotiable certificates of deposit. IX. Investment Parameters 1. Diversification It is the policy of the Town of Brunswick to diversify its investment portfolios. To eliminate risk of loss resulting from the over-concentration of assets in a specific maturity, issuer, or class of securities, assets in all Town funds shall be diversified by maturity, issuer, and class of security. Diversification strategies shall be determined and revised periodically by the investment officer for all funds. 2. Maximum Maturities To the extent possible, the Town of Brunswick shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the Town will not directly invest in securities maturing more than five (5) years from the date of purchase or in accordance with state and local statutes and ordinances. The Town shall adopt weighted average maturity limitations consistent with the investment objectives. Reserve funds and other funds with longer-term investment horizons may be invested in securities exceeding five (5) years if the maturities of such investments are made to coincide as nearly as practicable with the expected use of funds. The intent to invest in securities with longer maturities shall be disclosed in writing to the legislative body. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as collateralized deposit accounts, local government investment pools, money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations. X. Reporting 1. Annual report The investment officer shall prepare an investment report at least annually, including a management summary that provides an analysis of the status of the current investment portfolio and the individual transactions executed over the last year. The report should be provided to the Town s Finance Committee. The report will include, at a minimum, the following: a. An asset listing showing cost and market value of each security, type of investment, issuer, and interest rate; b. Maturity distribution of the portfolio; c. Average portfolio credit quality; and, d. Distribution by type of investment. 2. Annual audit The Town s external auditor shall conduct an annual process of independent review to assure compliance with internal controls, and to verify the accuracy of management s reporting. Such audit will include tests deemed appropriate by the auditor, and reports of any findings will be made as part of 5 Investment Policy Adopted 10/3/16

20 the auditor s annual report to Council. XI. Policy Considerations 1. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. 2. Amendments This policy shall be reviewed on an annual basis. Any changes must be approved by the investment officer and any other appropriate authority, as well as the individuals charged with maintaining internal controls. XII Approval of Investment Policy The investment policy and any modifications to that policy shall be formally approved and adopted by the Town Council, and shall be reviewed annually by the Finance Committee XIII. Attachments The following documents, as applicable, are attached to this policy: Glossary State of Maine Title 30-A M.R.S.A. section 5706, and GFOA Best Practices and Advisories: Collateralizing Public Deposits (2007 GFOA TIM Committee) Adopted by Town Council: October 3, Investment Policy Adopted 10/3/16

21 Town of Brunswick Deposits and Investments As of June 30, 2017 ITEM Cash Money Market Certificates Equities Mutual Total Town of Brunswick: Ledger bal of Deposit Funds Operating cash: Bank of America Depository Account 651, , People's United Depository Account 302, , Bank of America Municipal Funding Account People's United Municipal Funding Account 389, , People's United Parks & Recreation Credit Card Acceptance Account 14, , Bank of America School Funding Account People's United School Funding Account 497, , People's United School Cafeteria Account 31, , Invested cash: - Bangor Savings Repurchase Agreement Account Bangor Savings Insured Cash Sweep (ICS) Account People's United Interest-Bearing Checking Account 22,201, ,201, Restricted funds cash: People's United Impact Fees Account 558, , People's United Special Revenue / Capital Project / Enterprise Fund Accts 4,093, ,093, People's United 2017 Bond Account 282, , Trust Funds: Key Bank Trust Funds - Gallagher 22, , , Key Bank Trust Funds - Permanent & Private Purpose Funds 61, , , ,224, TOTALS 29,024, , , , ,482, Bank of America - secured through Bank of NY Mellon tri-party collateral agreement 2 People's United - secured through Federal Home Loan Bank letter of credit \\thall-fs1\department$\finance\finance\financial Reports\Audits\Audit \Auditors\Cash\Cash & Investments (for FC) 9/13/2017

22 09/05/ :11 Town of Brunswick P 1 jhenze AUGUST 2017 EXPENDITURE REPORT glytdbud FOR ORIGINAL REVISED AVAILABLE PCT APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 00 Fill General Fund Transfers Out 1,687,703 2,167,910 2,167, ,167, % TOTAL Fill 1,687,703 2,167,910 2,167, ,167, % 10 General Government Administration 645, ,664 50, , , % Finance Department 751, ,160 98, , , % Technology Services Dept 387, ,624 98, , , , % Municipal Officers 85,915 85, , % Munic Bldg - 85 Union 219, ,299 22, , , , % Risk Management 481, , , , , % Employee benefits , , , % Cable TV 72,889 72,889 7, , , % Assessing 309, ,815 37, , , , % Town Clerk & Elections 349, ,666 35, , , % Planning Department 530, ,443 67, , , , % Economic Development Dept 166, ,806 13, , , % TOTAL General Government 4,000,751 4,000, , , , ,381, % 20 Public Safety Fire Department 3,368,224 3,368, , , , ,896, % Central Fire Station 41,300 41,300 3, , , % Emerson Fire Station 56,525 56,525 5, , , % Police Department 3,890,604 3,890, , , , ,375, % Police Special Detail % Emergency Services Dispatch 837, ,231 96, , , % Police Station Building 110, ,105 8, , , , % Marine Resources 203, ,344 14, , , % Streetlights 221, ,000 33, , , % Traffic Signals 31,600 31,600 5, , , % Hydrants 470, ,000 5, , % Civil Emergency Preparedness 2,000 2, , % TOTAL Public Safety 9,231,933 9,231,933 1,092, , , ,070, %

23 09/05/ :11 Town of Brunswick P 2 jhenze AUGUST 2017 EXPENDITURE REPORT glytdbud FOR ORIGINAL REVISED AVAILABLE PCT 30 Public Works APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 30 Public Works Public Works Administration 578, ,697 57, , , , % PW General Maintenance 1,759,636 1,759, , , , ,553, % Refuse Collection 650, ,343 30, , , , % Recycling 335, , , , % PW Central Garage 703, ,099 62, , , , % TOTAL Public Works 4,027,323 4,027, , , , ,935, % 40 Human Services General Assistance 178, ,008 15, , , % Health & Social Services 2,766 2, , % TOTAL Human Services 180, ,774 16, , , % 45 Education School Department 37,478,469 37,478,469 1,789, , ,689, % TOTAL Education 37,478,469 37,478,469 1,789, , ,689, % 50 Recreation and Culture Recreation Administration 437, ,193 62, , , % Rec Buildings and Grounds 795, ,050 83, , , , % Rec Building , ,177 22, , , , % Teen Center 17,000 17,000 17, % People Plus 129, , , , % Curtis Memorial Library 1,441,425 1,441, , , ,203, % TOTAL Recreation and Culture 3,012,905 3,012, , , , ,480, % 60 Intergovernmental

24 09/05/ :11 Town of Brunswick P 3 jhenze AUGUST 2017 EXPENDITURE REPORT glytdbud FOR ORIGINAL REVISED AVAILABLE PCT 60 Intergovernmental APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED County tax 1,517,700 1,517, ,517, % TOTAL Intergovernmental 1,517,700 1,517, ,517, % 70 Unclassified Promotion and Development 240, , , , , % Additional School Assistance 10,000 10, , % Cemetery Care 7,000 7, , % Wage Adjustment Account 157, , , % TOTAL Unclassified 415, , , , , % 80 Debt Service CIP G/O Bonds 228, , , % GO CIP Bonds 222, , , % Police Station Bond 389, , , % CIP GO Bonds 34,056 34, , % TOTAL Debt Service 873, , , % GRAND TOTAL 62,425,885 62,906,092 6,587, ,455, , ,356, % ** END OF REPORT - Generated by Julie Henze **

25 09/05/ :09 Town of Brunswick P 1 jhenze AUGUST 2017 REVENUE REPORT glytdbud FOR ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT ESTIM REV EST REV REVENUE REVENUE REVENUE COLL 10 Taxes Property Taxes 42,014,938 42,014, ,014, % Deferred Property Tax -200, , , % Tax Abatements -75,000-75, , % Interest on Taxes 65,000 65,000 12, , , % Tax Lien Costs Revenu 15,000 15,000 14, , % Tax Lien Interest Rev 16,000 16,000 22, , , % Payment in Lieu of Ta 230, , , % Homestead exemption r , , , % Miscellaneous tax adj 6,942 6, , % Excise Tax - Auto 3,165,000 3,165, , , ,526, % Excise Tax Boat/ATV/S 25,000 25,000 2, , % Excise Tax - Airplane 2,900 2, , % TOTAL Taxes 45,265,780 45,265,780 1,289, , ,976, % 20 Licenses & Fees TOTAL REVENUES 45,265,780 45,265,780 1,289, , ,976, Passport Fees 15,000 15,000 3, , , % Passport Picture Reve 6,000 6, , % Building Permits 160, ,000 50, , , % Electrical Permits 35,000 35,000 7, , , % Plumbing Permits 23,000 23,000 6, , , % Zoning Board Fees % Hunting & Fishing Lic 1,000 1, % Dog License Fee 2,550 2, , % Vital Statistics 48,000 48,000 9, , , % General Licenses 27,290 27,290 2, , , % Victulars/Innkeepers 19,850 19,850 2, , % Shellfish Licenses 29,875 29, , % Neutered/Spayed Dog L 4,670 4, , % Mooring fees 21,700 21, , % Planning Board Appl F 25,000 25,000 6, , % Fire Permits 2,000 2, , % Conc Weapons Permits % Parking Permit fee % Public Works Opening 21,000 21,000 3, , , % TOTAL Licenses & Fees 442, ,635 92, , , % TOTAL REVENUES 442, ,635 92, , ,111.48

26 09/05/ :09 Town of Brunswick P 2 jhenze AUGUST 2017 REVENUE REPORT glytdbud FOR ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT ESTIM REV EST REV REVENUE REVENUE REVENUE COLL 30 Intergovernmental Highway Grant Fund 199, , , % State General Assista 25,000 25,000 2, , , % State Tax Exemption R 45,000 45, , % State Revenue Sharing 1,138,850 1,138, , , , % Snowmobile Receipts 1,200 1, , % State Education Subsi 9,914,745 9,914, , ,146, % TOTAL Intergovernmental 11,323,795 11,323, , , ,360, % 40 Charges for services TOTAL REVENUES 11,323,795 11,323, , , ,360, Agent Fee Auto Reg 50,000 50,000 9, , , % Agent Fee Boat/ATV/Sn 1,500 1, , % Rental of Property 1,200 1, , % Advertising Fees % Ambulance Service Fee 850, , , , , % Special Detail - Fire 2,500 2,500 15, , , % Witness Fees 1,000 1, % Police Reports 3,500 3, , % School Resource Offic 44,500 44, , % Special Detail - Poli 3,000 3,000 18, , , % Dispatch Services fee 148, ,073 33, , , % Recycling Revenue 15,000 15,000 4, , , % School Tuition, etc 71,338 71, , % Rental of Property 1,500 1, , % Coffin Pond 0 0 1, , , % TOTAL Charges for services 1,193,111 1,193, , , , % 50 Fines & Penalties TOTAL REVENUES 1,193,111 1,193, , , , Gen License Late Pena % Mooring Fee Late Pena % Victualers Lic Late P %

27 09/05/ :09 Town of Brunswick P 3 jhenze AUGUST 2017 REVENUE REPORT glytdbud FOR ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT ESTIM REV EST REV REVENUE REVENUE REVENUE COLL Unlicensed Dog Fines 6,000 6, , % False Alarm Fire 1,000 1, , % Ordinance Fines % Parking Tickets 30,000 30,000 7, , , % Leash Law Fines % False Alarm Police % TOTAL Fines & Penalties 39,500 39,500 8, , , % 60 Interest earned TOTAL REVENUES 39,500 39,500 8, , , Interest Earned 120, , , % TOTAL Interest earned 120, , , % 70 Donations TOTAL REVENUES 120, , , BDC Contrib to Econ D 30,000 30, , % TOTAL Donations 30,000 30, , % 80 Use of fund balance TOTAL REVENUES 30,000 30, , Unapprop General Fund 500, , , % School Balance Forwar 2,611,364 2,611, ,611, % TOTAL Use of fund balance 3,111,364 3,591, ,591, % 90 Other TOTAL REVENUES 3,111,364 3,591, ,591, Finance Miscellaneous 2,500 2, , % Postage & Handling %

28 09/05/ :09 Town of Brunswick P 4 jhenze AUGUST 2017 REVENUE REPORT glytdbud FOR ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT ESTIM REV EST REV REVENUE REVENUE REVENUE COLL W/C Proceeds 0 0 4, , , % Cable Television 275, , , % Gen Govt Asset Sales 0 0 5, , , % Town Clerk Miscellane 1,500 1, , % Planning Miscellaneou % Fire Miscellaneous 1,000 1, % Police Miscellaneous 10,000 10,000 12, , , % Public Works Miscella 1,500 1, , % School Miscellaneous 63,000 63,000 1, , % General Fund Transfer 545, , , % TOTAL Other 899, ,700 24, , , % TOTAL REVENUES 899, ,700 24, , , GRAND TOTAL 62,425,885 62,906,092 2,601, ,260, ,304, % ** END OF REPORT - Generated by Julie Henze **

29 Town of Brunswick, Maine General Fund Balance Finance Committee September 21, 2017

30 Fund Balance Policy Adopted October 18, 2010 Fund balance is intended to serve as a measure of financial resources in a governmental fund. The Town s management, credit rating services, and others monitor the levels of fund balance in the general fund as an important indicator of the Town s economic condition. It is the policy of the Town of Brunswick to maintain unassigned fund balance in the general fund at 16.67% of general fund revenues measured on a GAAP basis. In the event that the unassigned fund balance drops below this level, the Town will develop a plan, implemented through the annual budgetary process, to bring the balance to the target level over a period of no more than three (3) years. Amounts in excess of the target shall first be used for capital improvements, or other one-time expenditures, as recommended by the Town Manager and approved by the Town Council.

31 Fund Balance Components Nonspendable resources which cannot be spent because they are either a) not in spendable form; or b) legally or contractually required to be maintained intact. Restricted resources with constraints placed on the use of resources are either a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation. Committed resources which are subject to limitations the Town imposes upon itself at its highest level of decision making, and that remain binding unless removed in the same manner. The Town Council is the highest level of decision making authority, and can commit fund balance by ordinance. Assigned resources neither restricted nor committed for which the Town has a stated intended use as established by the Town Council or a body or official to which the Town Council has delegated the authority to assign amounts for specific purposes. The Town Council has a fund balance policy that requires certain items to be classified as assigned. Further, the policy gives discretion to the Town Manager and Finance Director to make assignments as they deem appropriate in their professional judgment. Unassigned resources which cannot be properly classified in one of the other four categories. The General Fund should be the only fund that reports a positive unassigned fund balance amount.

32 TOWN OF BRUNSWICK, MAINE Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Table 4 Fiscal Year General fund Nonspendable Long-term loans and advances $ 1,162,313 $ 1,953,201 $ 2,653,201 $ 2,053,201 $ 2,685,795 $ 495,297 $ 450,580 $ - $ 454,080 $ 363,264 Inventories and prepaids 50,509 62,772 16,101 30,054 34,266 23,925 55,570 36,767 37,711 25,220 Restricted Education 4,014,296 5,116,194 7,110,084 7,952,876 7,269,640 6,202,796 4,968,986 4,773,172 4,240,381 4,242,058 Municipal purposes 351, , , , , , , , , ,201 Assigned 749, , ,524 1,626,364 1,014,339 1,987,354 1,824,835 1,619,378 1,525,233 1,130,790 Unassigned 6,034,017 6,680,850 6,944,897 7,484,221 8,508,525 9,028,572 10,001,974 8,488,177 8,670,334 10,316,602 Total general fund $ 12,361,263 $ 14,854,909 $ 17,659,591 $ 19,276,437 $ 19,794,234 $ 18,108,295 $ 17,512,615 $ 15,125,232 $ 15,138,784 $ 16,318,135 All other governmental funds Nonspendable Special revenues funds $ 441,382 $ 21,336 $ 22,479 $ 27,896 $ 13,640 $ 23,109 $ 15,797 $ 13,075 $ 19,554 $ 14,475 Capital projects funds ,000 50,000 50,000 50,000 50,000 50,000 Permanent funds 501, , , , , , , , , ,605 Restricted Tax increment financing , ,506 1,116,433 Special revenues funds 471,712 1,027, , , , , , , , ,816 Impact fee fund 979,592 1,044,245 1,081,920 1,103, , , , , , ,286 Capital projects funds ,755, ,476 2,293, , ,678 17,022 Permanent funds 17,586 20,375 22,375 21,826 19,845 20,778 21,189 20,877 21,603 22,408 Committed Capital improvements fund ,942,117 1,624,805 2,149,690 1,866,798 1,276, , ,393 Special revenues funds 42,489 57,731 94,554 98, , , , , , ,521 Capital projects funds 866,584 1,406,068 1,429,981 1,355, ,421 1,238,270 1,634, , , ,659 Unassigned Capital improvements fund (188,553) (785,477) (1,190,875) (7,780,477) (2,453,705) (498,142) (225,430) Downtown TIF district (1,486,278) (1,490,853) (1,413,629) (945,524) (240,401) - Debt service funds (490) (23) (1,289) Capital projects funds - - (2,768,225) (11,347,552) (454,512) (1,632,537) Permanent funds (1,108) (2,157) (5,437) (12,056) (15,603) (12,394) Total all other governmental funds $ 3,131,832 $ 3,273,852 $ (112,195) $ (13,166,800) $ 3,685,287 $ 4,453,499 $ 6,047,118 $ 4,057,049 $ 3,081,754 $ 1,716,687 Beginning with the year ended June 30, 2009, the Town reported governmental fund balances in accordance with the categories defined in Government Accounting Standards Board (GASB) Statement 54. Prior years have been restated to reflect the GASB 54 categorization.

33 Thousands Town of Brunswick General Fund Balance as of June 30, (000's) $25,000 $20,000 Nonspendable (Inventory, Advances) Restricted (Rev Sharing & URIP bal.) Restricted Education Assigned Unassigned $15,000 $10,000 $5,000 8,426 7,508 6,034 6,681 6,945 7,484 8,509 9,029 10,002 8,488 8,670 10,317 $

34 Thousands $18,000 Town of Brunswick General Fund Balance as of June 30, (000's) $16,000 $14,000 $12,000 $10,000 $8,000 4,240 1,525 8,670 Target $9,500 Nonspendable (Inventory, Advances) Restricted (Rev Sharing & URIP bal.) Restricted Education Assigned Unassigned 4,242 1,131 10,317 Target $9,807 $6,000 $4,000 $2,000 Assigned: $120,384 carryforward encumbrances $825, budget $50, capital budget $393,368 compensated absences $136,481 supplemental appropriation Assigned: $96,320 carryforward encumbrances $600, budget $40, capital budget $394,469 compensated absences $

35 12,000,000 10,000,000 Unassigned Fund Balance Target beginning 2010 Town of Brunswick Unassigned Fund Balance 8,508,525 9,028,572 10,001,974 8,488,177 8,670,334 10,316,602 8,000,000 6,000,000 6,034,017 6,680,850 6,944,897 7,484,221 4,000,000 2,000,000 - As of June 30,

36 Capital Budget: Unassigned Fund Balance could be used for (examples): An annual road reconstruction project Design/engineering for upcoming capital projects Capital projects less than $325,000 Emergency appropriations: Flood events (road/culvert washouts) Browntail moth response Budget amendments: Unanticipated winter maintenance costs Unanticipated legal fees

37 Annual Funding of Capital Projects & Capital Reserves $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Recommended by CIP Policy Funded

38 CREDIT OPINION 24 February 2017 Brunswick (Town of) ME New Issue - Moody s Assigns Aa2 to Brunswick, ME s $1.8M GOLT Bonds Credit Strengths» Satisfactory reserves bolstered by a formal fund balance policy» Low fixed costs» Below average pension liability and low OPEB liability Credit Challenges» Large capital plan for school upgrades» Continued reliance on reserves to balance budgets, although the appropriations have reduced in recent years