Five Year Financial Forecast FY 2023-2027

Financially, physically, and operationally resilient


October 3, 2021


Index

  • Assumptions
  • Forecast Summary
  • Five Year History - Actual Results
  • Estimated Local Receipts
  • State Receipts & Charges
  • Other Raise & Appropriate
  • Debt Service Summary
  • Insurance & Employee Benefits Detail
  • Revenue Projections
  • Expenditure Projections
  • Glossary

Assumptions

  • Assessor’s estimate of $200,000 has been used for annual new growth.
  • Estimated local receipts are projected for FY2023 considering three year averaging and FY2021 actual receipts, FY2024 - FY2027 are budgeted without increase.
  • The overlay reserve (tax abatements) is projected to be $300,000 a year. Historically, the Town collects 98%-99% of property taxes annually.
  • State & County charges are projected to increase 2.5% annually.
  • Enterprise fund indirect costs are projected to be $ 448,100 per year.
  • Other operating expenses are increased annually under the following assumptions:

Retirement Assessment 8.0% Finance Committee Reserve 2.5%

Health Insurance 8.0% Building Maintenance Plan 2.0%

Ambulance Services 3.0% Pier Contract 2.0%

Personnel 3.0% Unemployment 2.0%

Medicare 3.0% Utilities 2.0%

OPEB Contribution 2.5% Hardware/Software 1.5%

Worker’s Compensation 2.5% Other Operating Expenses 1.0%

Trash Tipping Fees 2.5%

Audit Services Flat for three years (FY2022 through FY2023), then 10%


FORECAST SUMMARY FY2020 - FY2027

Revenue / Expenditure Projections

Five Year History FY2017-FY2021 Actual


STATE RECEIPTS AND CHARGES FY2020 - FY2027


Revenue Projections


Revenue by Type: FY22 - FY27 Projected






Expense Projections







Operating Budget Changes by Category

Glossary

Prior year tax levy

The prior year's maximum tax levy is carried over.


2.5% Tax Levy Increase

Proposition 2 1/2 allows a 2.5% tax levy increase each year. Line 2 calculates the 2.5% increase based on the prior year tax levy


New Growth

The State of Massachusetts allows new growth based on development to be added to the tax levy each year. The State must approve new growth.


Operating Override

Operating overrides must be approved by town meeting vote. Once approved they are a permanent addition to the tax levy. At the point when expenditures are projected to exceed revenues there are options (or some combination of the three options): increase local revenues, decrease expenditures or request voters approve an operating override.


Tax Levy

The maximum amount, before adjustments, that may be raised from real and personal property taxes.


Debt Exclusions

Debt exclusions are those town meeting votes that vote to raise the funds necessary to pay debt service costs for a particular project. The authorization must also be approved at the ballot box. The amount of annual debt service for the particular project is added to the tax levy limit for the life of the debt only. Debt for which a long-term bond has been issued provides an actual amount for a debt exclusion.


Capital Outlay Exclusion

A temporary increase in the tax levy to fund a capital project or make a capital acquisition. The increase is added to the tax levy only during the year in which the project is being funded.


Other Adjustments

The State of Massachusetts allows the charges from Barnstable County to be added to the tax levy.


Current Year Property Tax Levy

This is the maximum that may be raised through property taxes under proposition 2 1/2.


State (Cherry Sheet) Aid

Aid from the State of Massachusetts including Chapter 70 (education), Charter School Reimbursements, School Choice, Unrestricted Government Aid, Veteran's Benefits and Exemptions for Vets, Blind, Surviving Spouses & Elderly.


Estimated Local Receipts

Each year an estimate is made of local receipts. Local receipts include parking revenue, room and meals taxes, excise taxes, licenses, fees and other receipts collected at the local level.


Transfers - Waterways Fund

Mooring fees collected are deposited into the Waterways Fund and are transferred each year to fund Harbor and Pier related expenses.


Transfers - Wetlands Fund

Receipts collected in the Wetlands fund are transferred to partially fund Conservation expenses.


Transfers - Ferry Embarkation Fund

Receipts collected in the Ferry Embarkation fund are transferred each year to fund Harbor and Pier related expenses.


Transfers - Septic Loans Fund

Receipts collected in the Septic Loans fund are transferred each year to fund debt service expenses.


Enterprise Fund Indirect Reimbursement

Each year the Water and Wastewater Enterprise Funds reimburse the general fund for their indirect costs paid out of the general fund. Those expenses may include employee health insurance and retirement benefits, vehicle and comprehensive insurance and a portion of the payroll costs for departments that work with the Enterprise Funds such as the Town Manager's office, the Finance and MIS department, etc.


State (Cherry Sheet) Charges

The State of Massachusetts charges the town for its contribution to various state and county programs. Those programs include the Mosquito Control Project, the Air Pollution District, the Regional Transit Authority assessment, School Choice Sending Tuition and Charter School Sending Tuition.


State (Cherry Sheet) Offsets

Cherry Sheet Offsets are items that do not go in to the general fund, but instead go in to separate funds designated by specific use. Because the receipts are not deposited in the general fund, they are removed from total Cherry Sheet Charges.


Overlay Reserve

Each year the Board of Assessors determines an overlay reserve estimate. The Overlay Reserve is the account charged for senior tax and low income proprerty tax abatements.


Other Raise and Appropriate

Appropriations for additional programs, projects or capital improvements may be paid through the current levy limit without the need to borrow funds or through an override if there is remaining levy capacity (revenues less expenditures).


Operating Budget

The operating budget funds the various ongoing departments within the town.