The City of Saratoga Springs 2019 Comprehensive Budget. Commissioner of Finance Michele Madigan

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1 The City of Saratoga Springs 2019 Comprehensive Budget Commissioner of Finance Michele Madigan 1

2 Lightning Strike Lightning struck City Hall on Friday 8/17 Related water damage impacted every floor City Hall operations functioning at Recreation Center since 8/22 Reconstruction in-process Budgetary impact yet to be determined 2

3 Historical Budgets $52.0 million $50.0 $48.0 $46.0 $44.0 $42.0 $ Adopted 2016 Adopted 2017 Adopted 2018 Adopted 2019 Req. Expenses 2019 Comp Requested Expenses came in at $50.2 million, an 8.8% increase from the 2018 Adopted Budget, while 2019 Requested Revenues totaled $43.9 million assuming a stable tax rate and no usage of Fund Balance 3

4 Budget Process Comprehensive Budget due after Requested Budgets submitted Public notice and hearings over the next month Budget workshops Proposed and Adopted budget by November 30,

5 2018 Budget Recap 2018 Adopted Budget : $46.1 million 2018 Capital Adopted Budget : $7.0 million Key personnel changes Accomplishments 5

6 Budget Overview - General Fund Revenues 2018 Adopted 2019 Comprehensive % Change Total $46,136,623 $46,968, % Expenses 2018 Adopted 2019 Comprehensive % Change Total $46,136,623 $46,968, % Personnel $25,841,471 $26,774, % Benefits $12,579,046 $12,581, % Equipment $508,148 $494, % Contracted Services $6,602,018 $6,766, % Other $605,940 $352, % 6

7 2019 Revenue Overview Mortgage Tax 2.9% Other Taxes 4.6% Other 4.8% Property Tax 34.1% Fund Balance 5.2% State & Federal Aid 9.5% Departmental Income 10.4% Sales Tax 27.1% Property Tax-Related 1.4% Property Tax-Related includes Special Assessment District revenue, PILOTs, and related interest/penalties Departmental Income includes City fees, licenses, fines, and permits State & Federal Aid includes VLT Aid, State Revenue Sharing, and CHIPS, among others Other Taxes includes Utilities, Hotel Occupancy, NYRA Admissions, and Franchise taxes Other includes County Revenue, Interest, Rental Income, and Benefit Contributions, among others 7

8 Property Tax Property Tax Levies 2018 Adopted 2019 Comp. General Fund $16,004,075 $16,003,984 Debt Service Fund $3,273,221 $3,609,032 Other $214,759 $207,902 Total $19,492,055 $19,820,917 Combined Rate Proposed Rate Change Inside District $ % Outside District $ % Average +0.38% Debt Service Fund Levy increased $335,810 (10.3%) in 2019 The City s stellar bond rating allows for relatively easy access to financing, but we must be cognizant of costs 2019 Comprehensive Budget assumes slight property tax increase due to increased borrowing costs 8

9 Debt Service Budget Principal and Interest payments on debt bonded for Capital Projects (excluding Water and Sewer) 2019 Debt Service Expense: $3,794, Debt Service Revenue: Property Tax Levy $3,609,032 Restricted Fund Balance $89,033 Other (Planning Board Fees, Meadowbrook Tax, Interest) $96,383 $3,794,448 9

10 Property Tax Rate Property owners have gone several years without a City property tax levy increase, as the City Council has appropriately utilized reserves and fund balance to minimize the impact of increased City costs and responsibilities The City has borrowed more in recent years to update infrastructure and to meet the growing capital demands of our City In 2019, New York State property tax levy growth is capped at 2.0% A carryover is allowable when the tax levy for the prior year is below the allowable limit, which for the City represents 1.0% in 2019 A 2% increase and 2% + 1% carryover represent $337,982 and $590,312, respectively Assessed Value 2018 City 2019 (0.38% Comp.) 2019 (2% increase) 2019 (2% + 1% increase) $250,000 (<52% of City) $1,514 $1,519 $1,545 $1,565 $400,000 (<74% of City) $2,422 $2,430 $2,472 $2,503 10

11 Sales Tax 13,000,000 12,000,000 11,000,000 Budget Actual 10,000,000 9,000, Actual is a estimate based on YTD collections as of September 22,

12 Mortgage Tax 1,800,000 1,600,000 1,400,000 Adopted Actual 1,200,000 1,000, Collection is volatile but had been trending upward until Projection of $1.35M, slightly below estimated 2018 total Final 2018 figures are expected in mid-november Actual is a estimate based on YTD collections as of September 22,

13 Other Revenue OTHER REVENUES 2018 Adopted 2019 Comprehensive % Change VLT Aid $2,325,592 $2,325, % State Revenue Sharing $1,649,701 $1,649, % Hotel Occupancy Tax $625,500 $615, % NYRA Admissions Tax $591,000 $591, % Departmental Income $4,081,640 $4,871, % The City should have better visibility into several revenue items in the coming weeks, with any updates factored into the Amended Budget The increase in Departmental Income has been largely driven by improved efficiencies across City Hall, notably in Public Safety and the Building Department 13

14 2019 Expense Overview Other 1% Equipment 1% Services 14% Benefits 27% Personnel 57% Personnel is up 3.6% in 2019 up largely due to contractual increases and 2018 mid-year upgrades Benefits are flat despite some healthcare rate increases due to several 2018 retiree replacements electing less expensive plans and certain personnel changes in City Hall decreasing expected healthcare costs 14

15 Personnel $30.0 million $28.0 $26.0 $24.0 $22.0 $ Req Comp. Personnel expenses have increased in recent years due to headcount and contractual increases 2019 Requested Personnel expenses were up 9.0% over the 2018 Adopted Budget largely due to 26 new hire and 7 position upgrade requests, almost all of which were excluded from the 2019 Comprehensive Budget 15

16 Benefits 2018 Adopted 2019 Comprehensive % Change Benefits $12,579,046 $12,581, % Details 2018 Adopted 2019 Comprehensive % Change Healthcare $8,266,941 $8,272, % Retirement System $4,086,915 $4,051, % Other Benefits $225,190 $188, % Other Benefits include Vision Insurance, Disability Insurance, and Unemployment Insurance, among others Retirement System decreases are due to retired personnel being replaced with new hires enrolled in plans that require more contributions from the employee and less from City 16

17 Other Expenses Expense 2018 Adopted 2019 Comprehensive % Change Parking Garage Maintenance $10,000 $35, % Appraisal Services $13,000 $30, % Software $56,297 $87, % Pavement Marking Materials $50,000 $77, % Salt & Sand $210,000 $240, % Service Contracts Equipment $304,244 $344, % Contingency $350,000 $125,000-64% Vehicles $78,000 $0-100% 17

18 Fund Balance The City utilizes two types of Fund Balance for the 2019 Comprehensive Budget: Restricted and Unassigned Restricted Fund Balance represents reserves funded throughout the year for a variety of reasons, including capital projects, retirement expenses, and City debt, among others The maintenance of reserves and fund balance allows the City to finance capital improvements at an affordable cost Fund Balance Reserve Amount Restricted Retirement Reserve $300,000 Unassigned $2,156,846 Fund Balance Total $2,456,846 18

19 2019 Capital Budget 2019 Comp. Capital Budget : $8,186,704 ($5,686,704 excluding Water & Sewer) 2018 Adopted Capital Budget : $7,020,983 ($4,835,983 excluding Water & Sewer) Rank Project 2019 Request Source 1 Fire Engine Replacement $455,000 Bond 2 Ambulance Replacement $180,000 Bond 3 Loughberry Lake Dam Embankment Stabilization and Spillway Project $1,200,000 Bond 4 City Buildings and Facilities Repairs & Upgrades $3,400,000 Bond 5 Utility Bucket Lift $181,496 Bond 6 Tree Chipper $50,608 Bond 7 Ice Rink Rehabilitation $73,500 Bond 8 Recreation Playgrounds and Facilities $146,100 Bond 9 East-Side and West-Side Rec. Improvements $40,000 Contract 19

20 2019 Capital Budget, cont. The 2019 Capital Budget Projects below are to be funded through the Water and Sewer Funds 2019 Water and Sewer Comprehensive Capital Budgets : $2,500, Water and Sewer Adopted Capital Budgets : $2,185,000 Rank Project 2018 Request Source S1 Sanitary Pump Station Upgrades $450,000 Sewer W1 Water Main Capital Improvements Kaydeross Ave & Stable Ln $1,600,000 Water W2 Improvements at City Water Treatment Facilities $100,000 Water W3 Excelsior Ave Water Treatment Plant Repairs $350,000 Water 20

21 Going Forward Focus on the reconstruction of City Hall Improved IT usage City-wide Coordinated effort to address City needs 21

22 Thank You 22