Download
1 / 8
80 likes | 207 Views
Town of Swampscott Financial Forecast Fiscal Years 20 12 – 201 6. Andrew Maylor Town Administrator October 19, 2010. Budget Pressures. $2Billion State Structural Deficit in FY2011 Will Likely Lead to Additional Local Aid Cuts in FY2012 if State Revenues Don’t Increase Significantly.
E N D
Town of SwampscottFinancial Forecast Fiscal Years 2012– 2016 Andrew Maylor Town Administrator October 19, 2010
Budget Pressures • $2Billion State Structural Deficit in FY2011 Will Likely Lead to Additional Local Aid Cuts in FY2012 if State Revenues Don’t Increase Significantly. • Significant Service Rollbacks Have Been Required During the Last Several Years. • Regionalization Initiatives, Participation in the State’s GIC health Insurance Program and the Reduction of Debt Service Should Prevent Additional Service Cuts and Staff Reductions in FY 2012. • The Future Focus Will Be on Enhancing Non Tax Revenue and Reducing our Energy Costs. • We Must Continue the Commitment to Increase our Reserves to “Best Practice” Levels while Eliminating our Reliance on One-Time Revenues or We will Jeopardize the Town’s Bond Rating and Cost of Capital.
Five Year Financial ForecastPro Forma Assumptions - General Fund Revenues • State Aid is Projected to be Cut 5% in FY12 and Remain Level in FY2013 with Slight Increases Through FY16; • Tax Levy and Levy Limit will Grow Approximately by 3% Through FY2016; • Charges, Licenses, Fees and Miscellaneous Revenue Projected to be Decline in FY2012 and in FY2013 with Minimal Increases Through FY2016; • The Use of Free Cash in the amount of $200,000 for FY2012 Through FY2016 will be Used to Fund the Town’s Rainy Day Fund. • Nahant Tuition is Expected to be $1,231,000 for the Next Five Years. • Other Sources of Revenue Include: Enterprise Fund Indirects ($760,000).
Five Year Financial ForecastPro Forma Assumptions - General Fund Expenses • Salaries and Operating Expenses (Including Schools) Projected to Increase 2.5% for FY12 and 2.5% Annually Thereafter; • Health Insurance Costs Projected to Increase by 10% in FY2012 and Increase By 10% Annually through FY2016 Based on the Presumed Cost to Implement the Affordable Health Care Bill Adopted by Congress in 2010; • Due to the Current State of the Economy and Loss on Investments, the Retirement Appropriation is Expected to Increase by 10% in FY2013 and 5% Each Year Thereafter; • State and County Charges and Cherry Sheet Offsets are Expected to Increase 5% Each Fiscal Year; • Debt Service Based Upon Current and Future Capital Improvement Programs; • Includes Sewer Debt Exclusion through FY 2014. FY2014 Will be Last Year of Payment;
Five Year Financial ForecastRevenue and Expenditure Summary General Fund(Debt Includes New High School)
