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How is Weston doing?. During a difficult economy: Rate of salary increase was reduced Reductions made in health insurance costs Added to reserves Continued to fund facilities and public works infrastructure No cuts in service. What do we need to watch?. Going forward:

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How is weston doing
How is Weston doing?

During a difficult economy:

  • Rate of salary increase was reduced

  • Reductions made in health insurance costs

  • Added to reserves

  • Continued to fund facilities and public works infrastructure

  • No cuts in service


What do we need to watch
What do we need to watch?

Going forward:

  • Debt service from previously approved capital projects will hit the tax bill. We must do our best to keep operating budget increases as low as possible

  • Next round of collective bargaining with employee unions is critical

  • Unfunded pension and OPEB liabilities



Financial indicator 1 revenues per household
Financial Indicator 1 – Revenues per Household

A decrease in net operating revenues per household (constant dollars) is considered a warning indicator.


Financial indicator 2 state aid
Financial Indicator 2 – State Aid

Reductions in State Aid as a percentage of operating revenues is considered a warning indicator, particularly if the Town does not have adequate reserves to offset reductions.


Financial indicator 3 revenues related to economic growth
Financial Indicator 3 – Revenues Related to Economic Growth

Decreasing economic growth revenues, as a percentage of net operating revenues, is considered a warning indicator.


Reserves
Reserves Growth


Financial indicator 14 reserves fund balance
Financial Indicator 14 – Reserves/Fund Balance Growth

Declining reserves as a percentage of operating revenues is considered a warning indicator. GFOA recommends that undesignated fund balance be 5-15 percent of operating revenues.


Expenditures
Expenditures Growth


Financial indicator 6 expenditures per household
Financial GrowthIndicator 6– Expenditures per Household

Increasing net operating expenditures per household, in constant dollars, may be considered a warning indicator.


Financial indicator 7 salaries and wages
Financial Indicator Growth7 – Salaries and Wages

Increasing personnel costs as a percentage of total spending is considered a warning indicator.


Employee benefits
Employee GrowthBenefits


Financial indicator 10 pension liability mrs
Financial Indicator 10 – Pension Liability (MRS) Growth

An unfunded pension liability or increase in the unfunded liability is considered a warning indicator.

*FY2012 figures will be available in January 2013


Financial indicator 11 opeb liability
Financial Indicator 11 – OPEB Liability Growth

An unfunded liability for post employment benefits or increase in the unfunded liability is considered a warning indicator.

Annual Required Contribution (ARC)


Debt Growth


Financial indicator 12 debt service
Financial Indicator 12 – Debt Service Growth

Debt service exceeding 15 percent of operating revenues is considered a warning indicator by the credit rating organizations.


Financial indicator 13 long term debt
Financial Indicator 13 – Long Term Debt Growth

Warning indicators:

Overall debt exceeding 10 percent of assessed valuation

Overall debt exceeding 15 percent of per capita income


Population
Population Growth


Financial indicator 15 population
Financial Indicator 15 - Population Growth

Rapid changes in population which may affect service levels may be considered a warning indicator.


Budget projection
Budget GrowthProjection


Budget projection1
Budget Projection Growth

FY2014

Assuming a level service budget, we are projecting a budget gap of approximately $379,000

FY2015

Assuming no significant improvement in the economy, the budget gap is projected to be approximately $493,000

FY2016

Assuming a slight improvement in the economy, the budget gap is projected to be approximately $471,000


Impact on fy2014 tax bill
Impact on FY2014 Tax Bill Growth

Assuming FY2014 shortfall is closed through expenditure cuts or increased revenue, then projected operating budget increase plus the increase in exempt debt service = overall 5.7% increase in tax bill.


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