How is weston doing
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How is Weston doing? PowerPoint PPT Presentation


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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


Revenue

Revenue


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


Financial indicator 14 reserves fund balance

Financial Indicator 14 – Reserves/Fund Balance

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


Financial indicator 6 expenditures per household

Financial Indicator 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 7 – Salaries and Wages

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


Employee benefits

EmployeeBenefits


Financial indicator 10 pension liability mrs

Financial Indicator 10 – Pension Liability (MRS)

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

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

Annual Required Contribution (ARC)


How is weston doing

Debt


Financial indicator 12 debt service

Financial Indicator 12 – Debt Service

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

Warning indicators:

Overall debt exceeding 10 percent of assessed valuation

Overall debt exceeding 15 percent of per capita income


Population

Population


Financial indicator 15 population

Financial Indicator 15 - Population

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


Budget projection

BudgetProjection


Budget projection1

Budget Projection

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

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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