LRFP - General Fund Budget


In FY21, total General Fund budget of $300M

Personnel costs (wages + benefits) comprise more than 75% of the Operating Budget

FULLY-ALLOCATED EXPENDITURES

In FY21, expenses associated with Education comprise 59% of the Operating budget

The next largest areas are non-School Benefits and Public Safety

Expenditure Summary

For FY22, estimated total increase in expenditures of $12.3M (7.4%)

This does not include restorations.

School Collective Bargaining $5M (net of turnover savings)

Town Collective Bargaining assuming 0% for FY22


In the out-years, annual increase ranges from 3.1% - 4.5%

Benefits

Total estimated FY22 increase of $4.5M (5%)

Assuming 5% for Group Health plus 40 enrollees

Resume annual increase for OPEB funding plan

Unemployment increase

Benefits - Major Accounts

Health Insurance ($34M)

Assuming a 5% rate increase

Assuming 40 new subscribers (10 T / 30 S)

Total increase of $1.6 million

Each 1% increase in rates equals ~$320K


Pensions ($28.6M)

For FY22, increase of $2M based on funding schedule and estimate for Non-Contributory retirees

Annual appropriation increases 7.85% will put strain on future budgets


OPEB’s ($4.4M)

Increase operating budget funding from $3.7M to $3.9M


Benefits - Health Insurance Budget

Other Post Employment Benefits (OPEBs)

- Currently $66M in the OPEB trust fund

Pension Funding

Full funding date of 2030

Rate of Return remains at 7.2% - new actuarial study as of 1/1/2020

The unfunded liability as of 1/1/20 was $227.9M

FY22 increase of $2.1M (7.9%)

Annual Increase in Benefits

The annual increase in appropriations for Pensions and Health Insurance is absorbing much of the annual 2 ½% increase in Property Taxes

Doesn’t account for other increases, such as OPEB’s

Figures assume a 5% Heath Insurance cost through FY2023 and then 7.5% in the out years (realistic?)

Deficit Calculation