Village of Harrisville Dissolution Study

Transcription

1 Village of Harrisville Dissolution Study Alternatives to Existing Conditions - Services August 15, 2017 Visit the website:

2 Alternatives Objectives The Committee will develop a Base Case for dissolution and evaluate alternatives outside of dissolution Task Status 1. Brainstorm recommendations for alternative delivery of Village services In Process 2. Categorize recommendations into specific budgets for potential cost savings In Process 3. Analyze each recommendation: delivery method, cost, and cost savings In Process 4. Draft Alternatives Report with the recommendations and details Pending Wages & Benefits Contractual Expenses Other Efficiency Improvements Tax Credits Note: all cost figures are from FYE 2016 for the Village and Town unless otherwise noted. 2

3 Alternatives - Wages & Benefits If the Village dissolved: The following positions, and the wages and benefits, would be eliminated: Village Mayor Savings of $3,281 Village Board Savings of $3,500 Village Clerk (discussed on next slide) Savings of $13,560 Zoning Officer Savings of $500 Registrar of Vital Statistics/ Historian Savings of $483 Department of Public Works Staff (discussed on next slide) Savings of $62,033 Without dissolution: Are there any alternatives or opportunities for savings with these positions? Share service with Town? Contract out? Reduce costs? Other options? Total benefits for these positions = $38,326 If all of these positions were eliminated, the total savings in Wages and Benefits = $121,683 3

4 Alternatives - Wages & Benefits If the Village dissolved: The following positions have duties that the Town may take over, and so these positions need additional discussion: Village Clerk Will the Town Clerk have additional duties to cover (example: water service billing)? Or will another Town employee be assigned extra duties (example: bookkeeper)? Should the Town Clerk or another employee receive a wage increase to cover extra duties or should the Town hire a Deputy Clerk? Town Clerk FYE 2016 wage: $19,245 DPW Staff Will the Town Highway Staff have additional duties to cover? Should the Town hire additional staff to cover these duties? The Town has 3 Highway Staff with combined salary of $173,255 in FYE 2016 The Village accounts for DPW staff time working on the Water System in its General Fund, not the Water Fund. To compensate for this, the Village transfers $25,000 annually from the Water Fund to the General Fund. If the Village dissolved, wages for staff working on the Water System will have to be added to the Water District expenses, depending on the choice the committee recommends for Water Services (Slide 12). Currently, the Village calculates that 23% of the DPW time/wages is for Water (that is how they calculate the benefits charged to the Water Fund). 23% of the FYE 2016 $62,033 wage is $14,

5 If the Village dissolved, some expenses would be eliminated: Expense Item Cost Basis Mayor, Contractual Village Board, Contractual Village Clerk, Equipment & Capital Outlay and Contractual Tax Collection, Contractual (annual fee for software) Law, Contractual Engineer, listed as Personal Services but actually Contractual Savings $19,534 $1,382 Position is eliminated $1,512 Position is eliminated $14,811 Position is eliminated $450 Expense is eliminated $764 Expense is eliminated $435 Expense is eliminated Without dissolution: Are there any alternatives or opportunities for savings with these expenses? 5

6 If the Village dissolved, some expenses will be shifted to the Town: Expense Item Cost Basis Garbage Services for Village Municipal Waste, Contractual Maintenance of Streets, Contractual and Equipment & Capital Outlay Permanent Improvements Highway, Equipment & Capital Outlay Costs shifted to Town $41,102 $750 Town assumes costs $7,540 Town assumes responsibility and costs $32,812 Town assumes responsibility and costs Without dissolution: Are there any alternatives or opportunities for savings with these expenses? 6

7 Buildings = $7,200 Expenses are $600/month for use of the building for Village office. If the Village dissolved, the Village office would be eliminated. Would there be savings from reduced utility usage and maintenance? The Town would have to cover the total costs for the Municipal Building. Town costs for Buildings is $2,395, which is for Town medical center building maintenance. 7

8 Central Garage = $127,850* Expenses usually include electric for garage, fuel for garage, tools, and equipment repair. *In FYE 2016, costs also included approximately $120,000 for the new DPW Building construction. In FYE 2015, the Village spent $10,123 and in FYE 2017 the Village spent $6,202. Would the Town take over all of the Village tools and equipment, and would the Town use the new DPW Garage? The Town paid $25,716 in Central Garage, which includes utilities and expenses for the Town Municipal Building and the Town Garages. Garage = $5,959 These expenses include gas and oil for the DPW equipment. Would the Town take over the DPW equipment? Would the Village sell it before it dissolves? The Town paid $5,057 for same line item. 8

9 Unallocated Insurance = $8,416 This insurance covers buildings, vehicles, parks, property, and other general municipal assets The Town would be responsible for these assets and the insurance coverage if it keeps all of the vehicles and assets. The Town paid $16,764 in unallocated insurance. 9

10 Insect Control = $5,400 The Village contracts for two sprayings a year in the Village area. The Town currently does not have this expense. Would the Town take this over? Does this spraying benefit everyone in the Town? Should the expense be applied only to the Village area (could be wrapped into a lighting district)? Are there opportunities for savings or sharing without dissolution? Street Lighting = $19,137 If the Village dissolved, a lighting district would be formed Estimated tax rate for Harrisville lighting district based on 2016 expenses = $0.39 Town has 1 lighting district with FYE 2016 expenses = $352 Natural Bridge Lighting District: FYE 2016 tax rate = $

11 Youth Program = $1,500 The Youth Program is a year-round joint recreation program that includes Harrisville, Diana, Pitcairn, and the Harrisville Central School. Annual municipal contributions have been the same since the 1970 s and are as follows: Harrisville: $1,500 Diana: $2,500 Pitcairn: $1,500 Harrisville Central School: $1,500 Pat Fraser, Program Director, also applies for funds annually from the Lewis County Youth Bureau. Typically, the youth program has an excess of $2,000 at the end of the program year, and this money is reimbursed to the entities. Should this expense be eliminated? Pat noted that because of the $2,000 annual excess/reimbursement, the program could go forward without the $1,500 from the Village contribution, if the Village were to dissolve. Should the other entities increase their contribution to make up the loss of $1,500? 11

12 Celebrations = $1,500 The Village pays 1/3 of the costs for fireworks for August Community Festival Town of Diana pays $1,500 and Town of Pitcairn pays $1,500. If the Village Dissolved, Pitcairn and Diana could split total expenses differently, or reduce the contribution. Adult Recreation (Senior Citizens Club) = $400 The Village contributes to the Senior Citizens Club for expenses related to their club meetings, projects, and trips. The Town contributed $650 to the same Senior Citizens Club This expense could be eliminated or the Town could cover the cost. 12

13 Alternatives - Water If the Village dissolved, residents who receive Village water services would continue to receive services through the formation of a Water District under the Town. Revenues, Expenditures, and Fund Balance reported in the Village Annual Update Document under the Water Fund would stay with the Water District, as well as any water debt. Expenses for employee wages for Water are currently NOT accounted for in the Water Fund - they are added to the rest of the wages in the General Fund under Public Works Admin. Using the Village s current calculation of 23% (the amount of time DPW staff spend on Water), the wages that should have been in the Water Fund in FYE 2016 was $14, Water Services Expenses (not including staff wages) = $55,144 These expenses include Contractual Expenditures for Source Supply Power and Pump, Water Transmission and Distribution System, Employee Benefits, and Transfer to Other Funds (Village transfers $25,000 annually to General Fund to cover General Fund expenses made on the Water System - employee wages). The Town would assume responsibility for Water System and need to either: Hire licensed operators to run the water system Train and license current Town employees to run the water system Contract for water system operation services = approximately $23,000 annually 13

14 Fire = $116,214 ($55,103 for Equip & Cap and $61,111 for Contractual) There are two options for continuation of Fire Services if Village Dissolves: 1. The Town could form a Fire District for the former Village Area and contract with the Harrisville Volunteer Fire Department or another fire department for services. Taxpayers within the Fire District would elect a Fire Board of Commissioners. Calculated rate: $0.78 per $1,000 of assessed value for tax payers within the Fire District. 2. The Town could include the former Village area in its Fire Protection District and contract with the Harrisville Volunteer Fire Department or another fire department for services. The Town Board serves as the Fire Board of Commissioners. Calculated rate: $0.70 per $1,000 of assessed value for tax payers within the entire Fire Protection District. This would be a $0.02 increase in the tax rate taxpayers currently in the Fire Protection District paid in

15 2017 Contracts Fire Services Alternatives - Options New Former V/Harrisville Area Fire District Existing FYE 2017 T/Diana Fire Protection District New T/Diana Fire Protection District with Village Area Rescue/Ambulance Service Fees $4,000 $29,700 $33,700 Village Fire Dept. Fees $10,272 $62,753 $73,025 Natural Bridge Fire Dept. Fees $0 $12,000 $12,000 Total Cost of Services $14,272 $104,453 $118,725 Taxable Assessed Value for 2017 taxes $18,311,037 $152,514,795 $170,825,832 Computed Cost Per $1,000 for Rescue/Ambulance Fees Computed Cost Per $1,000 for Fire Dept. Fees Total Computed Cost Per $1,000 for Rescue and Fire Services $0.22 $0.19 $0.20 $0.56 $0.49 $0.43 $0.78 $0.68 $

16 Alternatives - Other Efficiencies? Are there other aspects of government or services where efficiencies could be gained? Are there other Village/Town opportunities to share expenses or work together? Any new ideas for future municipal cooperation if the Village did not dissolve? 16

17 Alternatives - CETC The Citizens Re-Organization Empowerment Grant (CREG) program assists local governments with dissolution or consolidation. Local governments that complete a municipal re-organization project are eligible for the Citizens Empowerment Tax Credit (CETC). This funding is a separate source of additional annual aid that is awarded in amounts equal to 15% of the combined real property taxes levied by all of the cities, towns, and villages that participated in the re-organization. The CETC will be calculated from the tax levies for the last full fiscal year prior to dissolution (not including special district levies). The numbers below are only an estimate. Village Town Total 2017 Tax Levy $175,633 $553,537 $729,170 Annual Citizens Empowerment Tax Credit (CETC) 15% of Total Tax Levy - - $109,375 17

18 Alternatives - Next Steps The committee s recommendations for alternatives are compiled into a spreadsheet that calculates the savings achieved from wages & benefits, contractual, and other efficiencies The calculated savings factor into the calculations for the new Town tax rates that would result from Village dissolution All of this information will be compiled into an Alternatives Report 18

19 Questions or Comments? Carrie Tuttle, Director of Engineering Star Carter, GIS Supervisor