Document Salem_doc_069f1fdac9

Mayor & City Finance Start Date End Date Mayor & School Committee Start Date End Date Finance Director send out CIP requests to Departments. 1/30/2022 Finance Director send out CIP requests to Departments. 1/30/2022 Departments submit completed CIP requests to Finance Department 2/15/2022 CIP Review - Superintendent, SBM, Principals, Directors 1/30/2022 Mayor & Finance Director review CIP requests. January March Finance Director, SBM & Super review CIP requests. January March Finance Director prepares initial Revenue/Expenditure (FY18 RECAP) figures January Superintendent & SBM give Budgets to Principals January Mayor issues BUDGET requests to departments with budget instructions, and City's long/short term goals 1/23/2021 Budget workshops with SBM, Principals & Directors. January Budget salary workshops with Finance & Depts. 1/23/2022 to 2/7/2022 Principals compile budget & submit to School Business Office 2/4/2022 to 2/22/2022 Departments compile BUDGETS & submit to Finance 1/23/2021 to 2/7/2022 Budget & CIP Review - Super, SBM, Principals, Directors 2/22/2022 to 3/15/2022 Budgets Entered in MUNIS by Finance 2/7/2022 to 2/22/2022 Budge/CIP Review - Super, SBM, City Finance February March Budget Review-Mayor, Finance, Department Heads 2/25/2022 to March School Budget Submitted to School Committee & CIP Budget Submitted to Finance Director March Budge & CIP Review By Mayor & Finance Director 2/25/2022 to March School Committee Budget Review Meetings March to April School Committee Approves School Budget 5/6/2022 School Committee Approves School Budget School Budget to City Finance Department for processing for City Council 5/6/2022 School Budget To City Finance Dept 6/2/2022 Finance Director Finalizes FY2022 Revenue/Expenditures - Balanced Budget to Mayor 5/9/2022 Finance Department Prepares Final Budget for City Council 5/10/2022 to 5/21/2022 Capital Improvement Plan sumbitted to City Council 5/26/2022 Budget Submitted to City Council 5/27/2022 City Council Administration & Finance budget review process 5/27/2022 to 6/10/2022 City Council Vote on FY 2022 Capital Improvement Plan 6/10/2022 and 6/24/2022 City Council Vote on FY 2022 City Budget 6/24/2022 Budget Calendar - FY 2022 City Council Sec. 3-1 ---PAGE BREAK--- Fiscal Year 2022 Overview & Timeline Narrative In January the Finance Department sent out budget packages to each non-school department requesting that they prepared a FY 2020 budget based on the following:  Level funded non-personnel budget - utilities should be funded to reflect any anticipated increase or decrease in charges or use a 3 year average.  Level service personnel budget should be funded to include contractual increases. AFSCME 1818 and Police Patrol Union contracts have not been settled. Firefighters and Police Superiors have been settled.  The Mayor requested that the School Department submit a level service budget. The departments were required to complete their FY 2022 Mission Statement and Goals, Budget Detail Reports, Revolving Fund budgets (if applicable) and Capital Requests. Pictures are submitted each year by departments which are put in the Mission Statements and throughout the budget. The FY 2022 budget requests were entered into the cities computerized system by the finance department using the figures submitted by each department. Copies of the department budget requests were printed for each department. A complete copy of the proposed budgets was prepared for the Mayor, Chief Administrative Aide, Finance Director, and the Assistant Finance Director. The Finance Director prepared the five-year forecast, capital improvement plan for FY 2022, as well as a preliminary FY 2022 budget using the Governor proposed state aid figures, estimated local revenue, Real Estate & Personal Property tax revenue estimates, and the budget figures submitted by the departments. During February, March and April, the Mayor, Chief Administrative Aide, Finance Director, and the Assistant Finance Director met with each department head to discuss their budgets and their capital improvement needs. Once the budget was balanced, the Finance Department then prepared the proposed FY 2022 budget for the City Council. All information is reviewed carefully for accuracy and consistency to ensure that the budget contained all of the information that was necessary for the City Council to make an informed decision regarding the finances and the budget of the City of Salem for the FY 2022. In April the School Committee met with the School Superintendent, School Business Manager and School Department Heads to review and approve the School budget for submission to the City Council. The final vote of the school committee was held in May. In late May, the FY 2022 budget was submitted to the City Council for their review and approval along with the FY 2022 Capital Improvement Projects. The budget will be sent to the Committee of Administration and Finance for their review and approval. During the months of June, the City Council subcommittee on Administration and Finance met with each department head, Mayor, Chief of Staff, and Finance Director to review each departmental budget. Sec. 3-2 ---PAGE BREAK--- PROPERTY TAX “101” - A TAXPAYERS GUIDE – FY 2022 Introduction This information about real estate taxation is designed to explain the process leading to a tax bill and attempts to dispel many of the common misconceptions associated with this often-misunderstood subject. over half the money needed to fund Salem’s City Government must be raised through property taxation. The remainder of the revenue comes from other sources such a State aid and local receipts. Massachusetts’s municipal law permits two types of local property taxation – real estate and personal property. Since it affects the greatest number of residents, most public attention is focused on the real estate tax. The following information pertains to the real estate tax. Assessed Value & Tax Rate Every year the Assessing Department adjusts all of the City’s taxable property according to a procedure outlined in Massachusetts General Law. The new “assessed value” is designed to reflect the property’s “full and fair cash value” on the first day of January prior to the December bill on which it first appears. It is important to note, that your assessed value is a year old when it appears on your bill and is not intended to be a reflection of the property’s current value. The assessors then “add up” the total assessed value of all of the City’s taxable property. The City’s Finance Department provides the assessors with exactly how much revenue must be raised through property taxation. It is this revenue figure, divided into the total assessed value of the City’s taxable property that determines the basic “equalized” tax rate per $1000 of assessed value. Some communities use this rate to tax all classes of property – Salem does not. Since Salem has opted to tax residential taxpayers at a different rate than commercial/industrial taxpayers, the equalized rate information is submitted to the City Council, with a recommendation by the Mayor, and at the “annual classification hearing” it is decided how the tax burden will be apportioned. The two new rates, when applied to the new property values, produce the required total revenue figure and become the tax rates for that fiscal year. Now on a five-year basis and undertaken for 2021, subject to the dictates of the Commissioner of Revenue, the City is required to undergo a “recertification” procedure. This is commonly known as a “revaluation year”. In past years, it was at this time that property owners usually saw the greatest change in their property assessments. With the use of computerized mass appraisal systems, most communities, including Salem, now adjust their property assessments on a yearly basis. These assessments closely follow the fluctuations in the marketplace and reflect a property value on the 1st of January prior to the bill on which the new assessed value first appears. How is Property Value Determined? The average residential dwelling in Salem gets its new assessment each year from the Assessing Department’s analysis of the property market. You could correctly say that the amount your “new neighbors” paid your “old neighbors” for the houses in your area provided the Assessors with the basis for your Sec. 3-3 ---PAGE BREAK--- new assessment. The Assessors program the mass appraisal system with relevant sales information and it generates new values for similar property that did not sell. In periods when residential property sales information indicates an increase in property value, it is important to understand that your fiscal year assessment is based on sales information that took place more than a year before the new assessment appears on your bill. For instance, the FY2018 assessments are meant to reflect the value of your property on January 1st, 2017 and were derived from sales information obtained in calendar year 2016. They do not reflect the property’s current value. The influence of the market place is always a year behind your annual property assessment. Unlike many “appraisals” that are meant to reflect current value, “assessments” are retrospective and look back in time to “arms length sales” that have already taken place. Income producing property, such as multi-unit residences or commercial/industrial property is also valued by the mass appraisal system only by a different methodology. Each year the Assessors request “income and expense” information from owners of “income” producing property and develop values based on the “return on investment”. Sales and cost aspects of this methodology are important factors but the greatest emphasis is based on income. What Makes a Tax Bill Go Up or Down? Many factors can affect the total amount of your property tax bill and often many influences are at work at the same time. Historically, the yearly cost of running a City increases each year much in the same way the cost of maintaining a household increases each year. If nothing else changed, this increase would more than likely cause your tax bill to go up. These factors could also contribute to an increase:  Improvement to a property in the form of an addition, finished basement of attic or other alteration that would increase the property’s market value.  A disproportionate increase in the market value of a particular section of the City when compared to another section.  The discovery by the assessors of incorrect property information such as an additional apartment unit, bathroom or finished basement that was not recorded on the previous assessment.  In the case of income producing property, the increase of income versus the cost of doing business.  Loss of taxable property to tax exempt status thereby diminishing the tax base.  Loss of commercial/industrial property causing a shift in the tax burden to the residential taxpayer. These factors could contribute to a decrease:  A disproportionate decrease in the market value of a particular section of the City when compared to another section.  The reduction in the value of the property as a result of an alteration made to the structure.  The deterioration of the property as a result of neglect, disaster or accident.  In the case of income producing property, either the loss of income or a change in the income expense ratio.  Reduction of a form of revenue consuming municipal service(s).  The addition to the tax base of taxable property  Other forms of budget reduction. Sec. 3-4 ---PAGE BREAK--- As you can see from the above, there are many dynamics to each tax bill. Any single factor, but usually a combination of factors, will influence the amount of your bill. Although an “average” tax bill can be statistically produced, very few bills would actually reflect the statistical average. What about Proposition 2 ½? Simply stated, Proposition 2 ½ says that a community cannot collect any more than 2 ½ % more than the maximum amount it was legally allowed to collect through property taxation in the previous year. This refers to the “total” amount that the City collects from the community and not the “individual” amount it collects from a taxpayer. What is “Growth” and Why is it Important “Growth,” when referred to by municipal officials, means property eligible for taxation this year that was not there last year. The reason why so much importance is attributable to the “growth figures” is that this infusion of this newfound revenue assists in defraying the impact of budget increases on the tax bill. Large capital building projects normally contribute to the bulk of the growth figures, but the simple addition of a deck to the back of a house is also part of the calculation. The cumulative effect of growth on the City’s economy can often reduce a tax bill by a couple of percent over what it would have been had this “growth” not occurred. What is the “Power Plant” Agreement In 1997 as a result of the uncertainties surrounding the deregulation of the electricity generating industry, the City entered into a financial agreement with the operators of the power plant on Fort Avenue. Designed to allow both sides a degree of future financial planning, the agreement outlines a yearly schedule of payments in lieu of calculated tax assessments. Salem had an agreement with Dominion lasting from 1997 until 2014 with yearly reduction in payments down to $4,75 million and further reduced with the closure of the power plant on June 30, 2014. In the fall of 2011, the Mayor negotiated a “Hold Harmless Agreement” with the Department of Energy Resources (DOER), the group that oversees pollution control for the energy industry in Massachusetts, to keep the remittance for the Power Plant site at $4.75 million through fiscal 2019. In September 2012 Footprint Power Salem became the new owner of the Salem Power Plant, continuing the use of the old plant until it’s closure on July 1, 2014. Footprint Power Salem started construction for a new power plant in 2015 and has now completed the new plant which is now fully operational. In December 2014, the Mayor, City Council and Footprint negotiated an 18 year agreement that started in 2015. In accordance with the “Hold Harmless Agreement”, the Commonwealth will be making up any balance below the $4.75 million paid through the Department of Energy Resources until fiscal 2020 when the new gas fired facility will be fully operational and on an increasing taxable plan established via the PILOT agreement. Starting in July Sec. 3-5 ---PAGE BREAK--- 2019, (the start of FY 2020) the plant will pay $5,002,000 to the city for Real Estate taxes. The tax amount will escalate 2.25% from 2020 to 2023, 2.50% from 2024 to 2027 and 2.75% 2028 to 2032 which is the end of the negotiated current PILOT with Footprint Power Salem. Summary Although a community’s tax rate or rates are often a measure of comparison by one city to another, your actual tax bill consists of not one but two parts – the tax rate and the property’s value assessment. The better comparison would be to compare a similar home, in a like neighborhood and the “bottom line” of an actual tax bill. Remember, the city’s budget and what part of those funds come from property taxation, determine the amount property owners are asked to contribute in the form of their tax bills. The property assessment and tax rate are the mathematical way in which that sum is realized. The City maintains a “state of the art” computerized mass appraisal system and periodically reviews, through various processes, all its taxable property. The resulting citywide adjustments made to property database assure taxpayers the most equitable distribution of the tax burden Salem tax assessors can provide. Internet access to this information offers Salem’s citizens and taxpayers a clear look at the statistical component of their property assessment and a way to track any discrepancies that might warrant correction now and into the future. Visit www.salem.com for more information. Sec. 3-6 ---PAGE BREAK--- DATE VOTED Budget Meetings General Fund Budget Appropriations Submitted by Mayor City - Includes Charter School Transfers Out 93,812,638 School - Does not include Bentley Charter 66,597,919 Total General Fund Appropriations: 160,410,557 Enterprise Fund Appropriations Submitted by Mayor: Sewer 8,329,470 Water 6,478,342 Trash 3,962,444 Peg Access 691,250 Total Enterprise Fund Appropriations: 19,461,506 Total Budget to be voted - June (Submitted by Mayor) 179,872,063 June Tax Rate Meeting Cherry Sheet Offsets 380,749 Snow & Ice Deficit - Estimated 800,000 Overlay - Allowance for Abatements - Estimated 850,000 Other Total Other Items on RECAP voted - December 2,030,749 Total RECAP Expenditures 181,902,812 November/December Regular Council Meetings Revolving Funds 2,398,000 June Capital Improvement Projects - General Fund -Capital Outlay/Grants & OFS/Bonding 9,819,000 June Capital Improvement Projects - Enterprise Funds - Retained Earnings/Grants & OFS/Bonding 4,429,000 June Total Operating Budget, Capital and Debt Service 194,120,063 Other Votes By Council - Major & Non-Major Funds WHAT IS VOTED BY CITY COUNCIL - BUDGET vs RECAP- FY 2022 Breakdown of Tax Recapitulation Report FY 2022 BUDGET - MAJOR FUNDS Other RECAP Items Voted at Tax Rate Setting - December Sec. 3-7 ---PAGE BREAK--- Actual RECAP Budgeted Change % change FY2020 FY2021 FY2022 FY21-22 FY21-22 REVENUES PROPERTY TAXES PRIOR FISCAL YEAR LEVY LIMIT 99,208,797 107,591,472 111,930,861 4,339,389 4.03% 2 1/2% Increase 2,480,220 2,689,787 2,798,272 108,485 4.03% Current New Growth (Footprint shift from Local Recpt 4,000,000 Current New Growth (Value increases from new building) 1,902,454 1,649,602 2,053,113 403,511 24.46% LEVY LIMIT Subtotal (from DOR levy limit sheet) 107,591,471 111,930,861 116,782,246 4,851,385 4.33% TAX LEVY Real & Personal Actual RECAP - Estimates on Current FY 103,616,867 107,301,006 110,173,970 2,872,964 2.68% Excess Levy Capacity 3,974,604 4,629,855 6,608,275 1,978,420 42.73% LOCAL RECEIPTS Motor Vehicle 4,379,374 4,100,000 4,450,000 350,000 8.54% Hotel Motel Tax 978,595 350,000 650,000 300,000 85.71% Meals Tax (Local Options) 1,074,851 400,000 800,000 400,000 100.00% Boat Excise Tax 573,595 530,000 30,000 (500,000) -94.34% Cannibis Excise 742,899 400,000 900,000 500,000 125.00% Interest On Taxes 527,615 400,000 500,000 100,000 25.00% Urb Revev CH121A 541,187 500,000 500,000 - 0.00% In Lieu Of Taxes 753,198 700,000 700,000 - 0.00% Marijuana Dispensary 1,288,454 500,000 1,200,000 700,000 140.00% Charges For Services 2,405,034 1,600,000 2,300,000 700,000 43.75% Parking Fees 2,913,363 1,500,000 2,450,000 950,000 63.33% Licenses And Permits 500,935 172,500 300,000 127,500 73.91% Fines And Forfeits 1,092,649 600,000 800,000 200,000 33.33% Investment Income 491,574 171,750 150,000 (21,750) -12.66% Medicaid 568,944 450,000 450,000 - 0.00% Miscellaneous Recurring Income - - 100,000 100,000 0.00% Miscellaneous Non-Recurring Income 730,139 230,000 0 (230,000) -100.00% Local Receipt Revenue Subtotal (pg. 2 recap lllb. 1) 19,562,406 12,604,250 16,280,000 3,675,750 29.16% ENTERPRISE FUNDS REVENUE Sewer 10,043,076 10,165,959 10,547,323 381,364 3.75% Water 6,840,200 5,795,306 5,729,664 (65,642) -1.13% Trash 903,409 899,925 899,925 - 0.00% Peg Access Cable 509,133 691,250 691,250 - 0.00% Enterprise Funds Revenue Subtotal (pg. 2 recap lllb. 3) 18,295,818 17,552,440 17,868,162 315,722 1.80% OTHER REVENUES AND FINANCING SOURCES Cherry Sheet Revenue (Pg. 2 Recap Llla. 1) 34,506,150 34,399,470 35,244,772 845,302 2.46% Massachusetts Sba Payments (Pg. 2 Recap Llla. 2) 732,824 - 0 - 0.00% Free Cash Used For: Level The Tax Rate (Pg. 2 Recap Llld. 1B.) - 500,000 1,000,000 500,000 100.00% Overlay Surplus Ofs-To Reduce Tax Rate (Pg. 2 Recap Llld. 4) R/Res - Witch House 298,516 175,000 406,195 231,195 132.11% R/Res - Golf Course 710,000 600,000 725,000 125,000 20.83% R/Res - Harbormaster 230,000 200,000 230,000 30,000 15.00% Estimated State + Other Revenue Subtotal 36,477,490 35,874,470 37,605,967 1,731,497 4.83% TOTAL REVENUES 177,952,581 173,332,166 181,928,099 8,595,933 4.96% RECAP SHEET FY 2022 Budget Sec. 3-8 ---PAGE BREAK--- Actual RECAP Budgeted Change % change FY2020 FY2021 FY2022 FY21-22 FY21-22 RECAP SHEET FY 2022 Budget EXPENDITURES General Government 8,020,629 7,752,464 9,163,410 1,410,946 18.20% Public Safety 21,878,617 22,042,166 23,072,889 1,030,723 4.68% Public Works And Facilities 5,192,233 3,747,358 4,097,953 350,595 9.36% Human Services 1,522,274 1,640,930 1,800,728 159,798 9.74% Cultural And Recreational 2,863,197 3,024,885 3,382,603 357,718 11.83% Debt Service - General Fund Including Schools 7,407,257 7,627,024 7,408,350 (218,674) -2.87% Assessment-Essex Ns Agricultural & Vocational Tech 2,262,449 2,637,453 2,602,989 (34,464) -1.31% Assessment-Cherry Sheet 9,147,827 9,049,302 9,430,263 380,961 4.21% Employee Benefits: Salem Retirement Board Assessment 12,100,050 12,778,085 13,687,118 909,033 7.11% Non-Contributory Pensions 8,033 10,034 10,315 281 2.80% Workman'S Compensation 433,944 491,305 528,270 36,965 7.52% Unemployment Compensation 148,292 300,000 300,000 - 0.00% Group Insurance - City, School & Retired Teachers 11,892,499 15,427,036 16,022,048 595,012 3.86% Medicare 1,030,455 1,262,407 1,278,187 15,780 1.25% P&C Insurance - City Only (School In Edu. Bdgt.) 285,657 292,384 373,500 81,116 27.74% Budget Transfers Out: Retirement Anticipation Fund 8311 (City And School) 600,000 600,000 600,000 - 0.00% Bentley Elementary School* 3,277,144 - 0 - 0.00% Salem 2026 Fund 50,000 25,000 50,000 25,000 100.00% City Expenditure Subtotal 88,120,558 88,707,833 93,808,623 5,100,790 5.75% Education - Public Schools 58,479,049 63,449,649 66,597,919 3,148,270 4.96% Education Subtotal 58,479,049 63,449,649 66,597,919 3,148,270 4.96% GENERAL FUND SUBTOTAL 146,599,606 152,157,482 160,406,542 8,249,060 5.42% Sewer Enterprise Fund Budget (Net- Indirect Costs) 10,123,207 8,017,900 8,329,470 311,570 3.89% Water Enterprise Fund Budget (Net-Indirect Costs) 6,840,181 6,449,189 6,478,342 29,153 0.45% Trash - Enterprise Fund Budget 3,633,572 3,876,199 3,962,443 86,244 2.22% Peg Access Cable 471,155 691,250 691,250 - 0.00% ENTERPRISE SUBTOTAL 21,068,114 19,034,538 19,461,505 426,967 2.24% SUBTOTAL - GENERAL FUND + ENTERPRISE FUND 167,667,720 171,192,020 179,868,047 8,676,027 5.07% ADD - OTHER EXPENDITURES: OTHER - Cherry Sheet Offset (pg. 2 llb5 of recap) 182,628 278,134 376,580 98,446 35.40% Snow and Ice Deficit (pg. 2 llb9 of recap) 848,602 398,577 771,892 373,314 93.66% Overlay (Allowance For Abatements) 706,640 832,919 911,581 78,662 9.44% SUBTOTAL - OTHER EXPENDITURES 1,737,870 1,509,630 2,060,052 550,422 36.46% TOTAL EXPENDITURES 169,405,590 172,701,650 181,928,099 9,226,449 5.34% Revenue vs Expenditures (Negative represents revenue deficit) 8,546,991 630,516 0 Sec. 3-9 ---PAGE BREAK--- FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Est. Total Estimated Receipts and other revenue from RECAP 55,634,447 61,675,449 61,913,528 66,267,289 63,823,509 68,788,229 69,263,807 75,296,544 74,431,631 70,424,621 73,017,188 71,728,841 Tax Levy 72,532,237 71,788,367 74,879,216 76,981,209 79,058,306 81,200,463 85,600,551 89,868,125 95,083,826 103,616,867 107,301,006 110,173,970 . . . . Total Amt Raised on RECAP 128,166,684 133,463,816 136,792,744 143,248,498 142,881,816 149,988,692 154,864,358 165,164,669 169,515,457 174,041,488 180,318,194 181,902,811 Prior FY Levy Limit 70,134,978 72,993,129 75,492,988 77,955,293 80,587,732 83,270,410 86,548,205 90,563,116 95,321,556 99,208,798 107,591,472 111,930,861 Amended Growth 3,204 2.5% allowable Increase 1,753,374 1,824,828 1,887,325 1,948,882 2,014,693 2,081,760 2,163,705 2,264,078 2,383,119 2,480,220 2,689,787 2,798,272 New Growth (Footprint shift for LR) New Growth 1,104,777 675,031 574,980 683,557 667,984 1,196,035 1,851,206 2,494,362 1,500,919 5,902,454 1,649,602 2,053,113 FY Levy Limit 72,993,129 75,492,988 77,955,293 80,587,732 83,270,410 86,548,205 90,563,116 95,321,556 99,208,798 107,591,472 111,930,861 116,782,245 RE & PP Total Value 4,115,970,775 3,973,785,748 3,927,232,741 3,962,936,296 4,208,675,856 4,534,079,631 4,710,256,289 5,067,583,077 5,470,468,285 6,125,184,869 6,608,838,388 7,118,656,790 Levy Ceiling (2.5% Total Value) 102,899,269 99,344,644 98,180,819 99,073,407 105,216,896 113,351,991 117,756,407 126,689,577 136,761,707 153,129,622 165,220,960 177,966,420 Equalized Value (EQV) as of 1/1 4,568,374,700 4,568,374,700 4,256,808,900 4,256,808,900 4,256,808,900 4,232,985,800 4,232,985,800 5,405,036,100 5,405,036,100 5,405,036,100 5,405,036,100 5,405,036,100 TAX RATE RECAPITULATION (RECAP) SUMMARY BY FISCAL YEAR - 20,000,000.00 40,000,000.00 60,000,000.00 80,000,000.00 100,000,000.00 120,000,000.00 140,000,000.00 160,000,000.00 180,000,000.00 200,000,000.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Amount Raised On RECAP Sec. 3-10 ---PAGE BREAK--- Revenue Overview General Fund Budget Summary A key component of the budget development process is the identification of revenue assumptions and projections to determine the range of choices that the Mayor can make in allocating resources. The City's revenue plans attempt to balance the desire to reduce the impact of government cost on the taxpayer, to provide for a relatively stable and diversified revenue portfolio that is not highly subject to economic fluctuations, and to equate the cost of services to the revenues received. Because of the critical nature of this information the revenue analysis and the revenue projections are monitored, updated and presented to the Mayor on a basis. If significant changes in revenue streams were to present the potential for shortfalls, this process would allow for the action(s) to be made in time to maintain fiscal stability. The City does not have the statutory ability to change rates and formulas for many of its revenue sources. The rates and/or formulas for property tax and certain fines, for example, are set by the State. The City may set user fees, permits and licenses. In 1980, the voters approved a statewide property tax initiative, Proposition 2 1/2. Prop. 2 1/2 established, among several restrictions, a "2 ½ percent cap" on property taxes increases in all local taxing districts in the State. City revenues are divided into six basic categories recommended by the National Committee on Governmental Accounting. The categories are taxes, charges for services, licenses and permits, fines and forfeits, intergovernmental revenue, and miscellaneous revenue. The following pages discuss in detail the City’s projections for those categories in the upcoming fiscal years. Some of the taxation terminology used throughout the revenue section can be confusing to the average taxpayer. Below are descriptions of a few of those terms. More information can be found in the glossary section in the back of this book. Levy - The amount of taxes, special assessments, or service charges imposed by a governmental unit. Levy Ceiling - The limit imposed by Proposition 2 ½ that equals 2 ½ % of the total full and fair cash value of all taxable property. Levy Limit - The amount that a municipality may raise in taxes each year which is based on the prior year’s limit plus 2 ½% increases on that amount plus the amount certified by the State that results from “new growth”. New Growth – The additional tax revenue generated by new construction, renovations, and other increases in the property tax base during a calendar year. Sec. 3-11 ---PAGE BREAK--- Proposition 2 ½ - Is the law which became effective on December 4, 1980. The two main components of the tax law relating to property taxes are: 1) the tax levy cannot exceed 2 ½ % of the full and fair cash value, and 2) for cities and towns at or below the above limit, the tax levy cannot exceed the maximum tax levy allowed for the prior by more than 2 ½ % (except in cases of property added to the tax rolls and for valuation increases of at least 50% other than as part of a general revaluation). Equalized Valuations (EQV) – The commissioner or Revenue, in accordance with MGL CH. 58 Section 10C, is charged with the responsibility of biannually determining an equalized valuation for each city and town in the Commonwealth. EQVs present an estimate of fair cash value of all taxable property in each city and town as of January 1 of each year (MGL CH. 58, Sections 9 & 10C). The EQV is a measure of the relative property wealth in each municipality. Its purpose is to allow for comparisons of municipal property values at one point in time, adjusting for differences in local assessing practices and revaluation schedules. EQVs have historically been used as a variable in the allocation of certain state aid distributions, the calculation of various state and county assessments to municipalities, and the determination of municipal debt limits. EQVs are used in some distribution formulas so that communities with lower property values receive proportionately more aid than those with higher property values. In some assessment formulas they are used so that those with lower property values assume proportionately less of the cost than communities with higher property values. The local aid receipt programs using EQV are: Public Libraries, Chapter 70, and School Construction Aid. The assessments using EQV are: Boston’s Metropolitan Transit Districts, the Count Tax, Mosquito Control Projects and Air Pollution Control Districts. A municipality’s annual EQV is the summon f estimated fair market value for each property class plus an estimate of new growth, resulting in values indicative of January 1. Tax Rate - The amount of tax stated in terms of a unit of the tax base. Prior to a 1978 amendment to the Massachusetts Constitution, a single tax rate applied to all of the taxable real and personal property in a City or town. The 1978 amendment allowed the legislature to create three classes of taxable property: 1) residential real property, 2) open space land, and 3) all other (commercial, industrial, and personal property). Within limits, cities and towns are given the option of determining the share of the levy to be borne by the different classes of property. The share borne by residential real property must be at least 65% of the full rate. The share of commercial, industrial, and personal property must not exceed 150% of the full rate. Property may not be classified until the State Department of Revenue has certified that all property has been assessed at its full value. The following chart is a summary of the EQV, Tax Levy, Levy Ceiling, Levy Limit, 2 ½% increase, and New Growth by fiscal year. Sec. 3-12 ---PAGE BREAK--- CITY OF SALEM REVENUE SUMMARY - GENERAL & ENTERPRISE FUNDS Actual Actual Actual Actual Actual Actual RECAP Budgeted Increase % Increase $ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY2020 FY2021 FY2022 FY21 vs. FY22` FY21 vs. FY22 GENERAL FUND REAL AND PERSONAL Tax Levy 79,058,306 80,963,871 85,390,895 89,441,832 95,083,826 103,616,867 107,301,006 110,173,970 2.7% 2,872,964 MOTOR VEHICLE 3,914,582 4,027,081 4,270,422 4,423,714 4,100,000 4,379,374 4,100,000 4,450,000 8.5% 350,000 HOTEL EXCISE 474,568 560,959 663,968 755,910 640,000 978,595 350,000 650,000 85.7% 300,000 MEALS TAXES 887,789 980,941 1,019,605 1,089,955 1,000,000 1,074,851 400,000 800,000 100.0% 400,000 VESSEL EXCISE 30,761 30,153 30,000 32,323 30,000 573,595 530,000 30,000 -94.3% (500,000) CANNIBIS EXCISE 742,899 400,000 900,000 125.0% 500,000 INTEREST ON TAXES 437,539 493,211 460,601 491,762 440,000 527,615 400,000 500,000 25.0% 100,000 IN LIEU OF TAXES & CH 121A 1,043,782 1,322,806 1,082,164 1,457,409 1,200,000 1,294,385 1,200,000 1,200,000 0.0% 0 MEDICAL MARIJUANA 82,856 248,370 288,826 190,000 1,288,454 500,000 1,200,000 140.0% 700,000 CHARGES FOR SERVICES 2,102,749 1,899,470 2,901,242 2,203,611 2,350,000 2,405,034 1,600,000 2,300,000 43.8% 700,000 PARKING FEES 2,393,621 2,468,115 2,612,136 2,637,742 3,100,000 2,913,363 1,500,000 2,450,000 63.3% 950,000 LICENSES AND PERMITS 504,856 535,225 509,915 533,820 500,000 500,935 172,500 300,000 73.9% 127,500 FINES AND FORFEITS 1,167,427 882,008 823,329 1,004,571 800,000 1,092,649 600,000 800,000 33.3% 200,000 INVESTMENT INCOME 202,893 215,624 263,963 246,422 200,000 491,574 171,750 150,000 -12.7% (21,750) MISCELLANEOUS INCOME 160,902 265,325 302,121 343,221 100,000 568,944 450,000 450,000 0.0% 0 MEDICAID INCOME 716,092 815,622 906,605 1,075,129 800,000 0 - 100,000 - 100,000 MEDICAID PART D REIMBURSEMENT 242,778 0 0 0 0 0 230,000 - -100.0% (230,000) NON RECURRING (Hold Harmless Money) 5,271,156 5,256,547 4,657,229 4,004,856 3,750,000 730,139 - 0 TOTAL LOCAL RECEIPTS 19,551,495 19,835,943 20,751,670 20,589,271 19,200,000 19,562,406 12,604,250 16,280,000 29.2% (8,147,420) NET MA CHERRY SHEET ASST. 29,323,109 30,158,750 30,129,354 29,798,847 30,468,308 34,506,150 34,508,782 35,244,772 2.1% 735,990 MSBA REIMBURSEMENTS 732,824 732,824 732,824 732,824 732,824 732,824 732,824 0 -100.0% (732,824) R/RES REDUCE TAX RATE 1,050,452 1,116,347 1,238,398 1,295,034 1,337,058 1,238,516 1,238,676 2,361,195 90.6% 1,122,519 OFS/TRANSFERS IN 700,000 1,700,000 1,300,000 941,452 1,900,000 - 1,800,000 - -100.0% (1,800,000) Indirect Costs 1,501,654 1,424,095 1,482,718 1,304,900 1,345,221 1,431,996 1,431,996 1,469,176 2.6% 37,180 TOTAL OTHER RECEIPTS 33,308,039 35,132,016 34,883,294 34,073,057 35,783,411 37,909,486 39,712,278 39,075,143 -1.6% 4,828,984 GENERAL FUND TOTAL 131,917,840 135,931,830 141,025,859 144,104,160 150,067,237 161,088,759 159,617,534 165,529,113 3.7% 5,911,579 ENTERPRISE FUND SEWER RATES 8,898,048 8,960,699 8,669,477 8,599,462 9,698,976 9,902,960 10,182,959 10,547,323 3.6% 1,513,482 Other 63,355 - OFS/Retained Earnings - - TOTAL SEWER 8,898,048 8,960,699 8,669,477 8,662,817 9,698,976 9,902,960 10,182,959 10,547,323 3.6% 1,513,482 WATER RATES 4,765,691 5,821,420 4,666,970 4,741,210 5,251,131 5,481,367 5,695,306 5,729,664 0.6% 1,028,336 Other - - - - - 0.0% 0 WATER TRANS/OFS - - 1,464,097 2,133,713 - - 100,000 1,523,153 1423.2% 100,000 TOTAL WATER 4,765,691 5,821,420 6,131,067 6,874,923 5,251,131 5,481,367 5,795,306 7,252,817 25.1% (335,761) TRASH FEES 699,082 820,890 877,785 856,879 869,713 903,408 899,925 899,925 0.0% 22,140 OFS/Retained Earnings 1,583,215 2,049,482 2,118,620 2,071,694 2,359,895 2,730,164 2,836,362 3,062,518 8.0% 717,742 TOTAL TRASH 2,282,297 2,870,372 2,996,405 2,928,573 3,229,608 3,633,572 3,736,287 3,962,443 6.1% 739,882 ENTERPRISE FUND TOTAL 15,946,036 17,652,491 17,796,949 18,466,313 18,179,715 19,017,899 19,714,552 21,762,583 10.4% 1,917,603 GRAND TOTAL 147,863,876 153,584,321 158,822,808 162,570,473 168,246,952 180,106,658 179,332,086 187,291,696 4.4% 20,509,278 Sec. 3-13 ---PAGE BREAK--- ESTIMATED REVENUES GENERAL FUND FY 2022 Total 165,528,186 Sec. 3-14 ---PAGE BREAK--- ESTIMATED LOCAL RECEIPTS GENERAL FUND TOTAL 16,280,000 FY 2022 Sec. 3-15 ---PAGE BREAK--- GENERAL FUND REVENUE DETAIL I. TAXES Real and Personal Property Tax The primary source of revenue for most municipalities in the Commonwealth is real and personal property taxes; however, the property tax as a percentage of all revenues can greatly differ from community to community. For purposes of taxation, real property includes land, buildings and improvements erected or affixed to land and personal property consists of stock, inventory, furniture, fixtures and machinery. The City's Board of Assessors determines the value of all taxable land, which is revalued at fair market value every three years and updated every year. The City of Salem revalued all real property in FY10 adjusting property values to within 90%-100% of market value. The City’s Board of Assessors is also responsible for determining the value of personal property through an annual review process. Factors influencing property taxes: There are three major factors that influence the amount of revenue generated by real and personal property taxes: 1. Automatic 2.5% Increase (Prop 2 ½) – The levy limit is the maximum amount that can be collected through real and personal property taxes by the municipality. Each year, a community’s levy limit automatically increases by 2.5% over the previous year’s levy limit. This increase does not require any action on the part of local officials. 2. New Growth – A community is able to increase its tax levy limit each year to reflect new growth in the tax base. Assessors are required to submit information on growth in the tax base for approval by the Massachusetts Department of Revenue as part of the tax rate setting process. 3. Overrides/Exclusions – A community can permanently increase its levy limit by successfully voting an override. Debt and Capital exclusions, on the other hand, are temporary increases in a community’s levy limit for the life of the project or debt service. Only a Debt or Capital exclusion can cause the tax levy to exceed the levy limit. The levy limit for FY2022 is estimated to be $116,229,133. The actual amount of revenue raised through the tax levy will be determined when the tax rate is set in the fall. The Tax Levy for FY2022 is estimated to be $110,173,970 which is an increase of 2.68% over FY2021. Sec. 3-16 ---PAGE BREAK--- Real & Personal Property – Tax levy – The amount of taxes, special assessments, or service charges imposed by a governmental unit. Fiscal Year Revenue 2011 72,532,237 2012 71,788,366 2013 74,879,216 2014 76,981,209 2015 79,058,306 2016 81,200,463 2017 85,390,895 2018 89,868,125 2019 95,083,826 2020 103,616,867 2021 107,301,006 2022 110,173,970 Estimated 2.68% % Change FY21 vs. FY22 Real and Personal Property – Tax Levy Real & Personal Property – Levy Limit – The amount that a municipality may raise in taxes each year which is based on the prior year’s limit plus 2 ½ % increase on that amount plus the amount certified by the State that results from “new growth”. Fiscal Year Revenue 2011 75,492,988 2012 77,880,313 2013 80,587,733 2014 83,270,307 2015 86,548,205 2016 90,563,116 2017 91,206,273 2018 95,321,556 2019 99,208,797 2020 107,591,471 2021 111,930,861 2022 116,782,246 Estimated 4.33% Real and Personal Property – Levy Limit % Change FY21 vs. FY22 Sec. 3-17 ---PAGE BREAK--- II. LOCAL RECEIPTS Motor Vehicle Excise Tax Receipts – Massachusetts General Law (MGL) Chapter 60A, Section 1 sets the motor vehicle excise rate at $25 per $1000 valuation. The City collects this revenue based on data provided by the Massachusetts Registry of Motor Vehicles (RMV). The Registry, using a statutory formula based on a manufacturer’s list price and year of manufacture, determines valuations. The City or Town in which a vehicle is principally garaged at the time of registration collects the motor vehicle excise tax. Those residents who do not pay their excise taxes in a timely manner are not allowed to renew registrations and licenses through a ‘marking’ process at the RMV. The City of Salem notifies the Registry of delinquent taxpayers, through its deputy collector, who prepares excise delinquent files for the Registry of Motor Vehicles. We are projecting collections for FY 2022 based on prior fiscal year trends and averages, as well as any continuing impacts of COVID-19 on the economy. Fiscal Year Revenue 2011 3,147,826 Actual 2012 3,179,764 Actual 2013 3,080,014 Actual 2014 3,767,518 Actual 2015 3,914,582 Actual 2016 4,027,082 Actual 2017 4,270,422 Actual 2018 4,423,714 Actual 2019 4,573,366 Actual 2020 4,379,374 Actual 2021 4,638,752 Actual 2022 4,500,000 Estimated -3.0% Motor Vehicle Excise % Change FY21 vs. FY22 Sec. 3-18 ---PAGE BREAK--- Hotel Excise – (Room Occupancy Excise - MGL Chapter 64G) This category includes taxes received through the state that are collected from all hotels, motels, and other lodging houses within the City at a rate up to, but not exceeding, 6% of the total amount of rent for each such occupancy. On April 22, 2010 the City Council approved by a 6-5 vote to pass the local options tax increases of .75% on meals and 1% on Hotel/Motels. In FY 2016 the hotel tax was increased from 5% to In FY 2022 we estimate approximately level receipts based on economic recovery post COVID-19. FY2021 estimates were lower than recent trends due to travel restrictions. Fiscal Year Revenue 2011 392,295 Actual 2012 392,974 Actual 2013 429,544 Actual 2014 497,784 Actual 2015 474,568 Actual 2016 560,959 Actual 2017 663,968 Actual 2018 755,910 Actual 2019 640,000 Actual 2020 978,595 Actual 2021 553,706 Actual 2022 550,000 Estimated -0.7% Hotel Excise % Change FY22 vs. FY21 Meals Tax – (MGL CH27 §60 and 156 of the Acts of 2009). This revenue was established in FY2011 as allowed by the Commonwealth of Massachusetts in FY 2010. We are anticipating a continued recovery in meals tax for FY2022 as restrictions from COVID-19 have been lifted. Sec. 3-19 ---PAGE BREAK--- Fiscal Year Revenue 2011 562,797 Actual 2012 768,032 Actual 2013 795,305 Actual 2014 821,634 Actual 2015 887,789 Actual 2016 980,941 Actual 2017 1,019,605 Actual 2018 1,089,955 Actual 2019 1,000,000 Actual 2020 1,074,851 Actual 2021 889,035.42 Actual 2022 850,000.00 Estimated -4.4% Meals Tax % Change FY21 vs. FY22 ATG - Medical Marijuana Dispensary Revenue – The City of Salem has entered into a Community Benefits Agreement with Alternative Therapies Group (ATG) of Massachusetts which is a Registered Marijuana Dispensary (RMD) to receive revenue from sale of medicinal marijuana. Funds received by communities per agreements with medical marijuana dispensaries belong to the community’s General Fund under G.L.c.44, §53. These funds cannot be separately appropriated as available funds. The city receives an annual payment equal to 1.25% of the total gross annual sales of the RMD for the first two years after it opens. On year three and after, the city will receive 2% of all gross annual sales. ATG opened in June 2015 and the city anticipated approximately $50,000.00 in year one of the agreement. In FY2022 we remain conservative in our projections on the agreements with dispensaries while monitoring trends revenue trends. Sec. 3-20 ---PAGE BREAK--- Fiscal Year Revenue 2014 - 2015 - 2016 82,856 Actual 2017 247,894 Actual 2018 288,826 Actual 2019 303,565 Actual 2020 742,899 Actual 2021 1,084,324 Actual 2022 950,000 Estimate -12.4% Marijuana Dispensary Revenue % Change FY22 vs. FY21 Boat Excise – As per MGL Chapter 60B Section 2, boat excise tax is levied by each city and town in each fiscal year on every vessel, and its equipment, for the privilege of using the waterways of the Commonwealth. We anticipate little to no increase in FY2022. Fiscal Year Revenue 2011 32,726 Actual 2012 23,358 Actual 2013 33,044 Actual 2014 31,661 Actual 2015 30,761 Actual 2016 30,153 Actual 2017 30,476 Actual 2018 32,323 Actual 2019 30,000 Actual 2020 30,000 Actual 2021 30,000 Actual 2022 30,000 Estimated 0.0% Boat Excise % Change FY22 vs. FY21 Penalties & Interest on Taxes - This category includes delinquent interest and penalties on all taxes and tax title accounts. It also contains demand fees on real and personal property taxes as well as demands and warrants on late motor vehicle excise taxes and boat excise taxes. Demand fees were increased from $15.00 to $30.00 in FY2018. We anticipated collections in line with historical trends for FY2022. Sec. 3-21 ---PAGE BREAK--- Fiscal Year Revenue 2011 437,282 Actual 2012 487,843 Actual 2013 396,661 Actual 2014 453,971 Actual 2015 437,539 Actual 2016 493,211 Actual 2017 460,601 Actual 2018 491,762 Actual 2019 517,248 Actual 2020 527,615 Actual 2021 712,224 Actual 2022 550,000 Estimated -22.8% Penalties & Interest on Taxes % Change FY21 vs. FY22 Payment In Lieu Of Taxes (PILOT) - Many communities, Salem included, are not able to put all the property within its borders to productive, tax generating uses. Federal, state and municipal facilities, hospitals, churches and colleges are examples of uses that are typically exempt from local property tax payments. The City currently has PILOT agreement with several entities, including the South Essex Sewerage District, North Shore Medical Center, and the Salem Housing Authority, Northeast Animal Shelter, as well as some Urban Redevelopment Corporations (MGL Chapter 121A). Estimates for FY2022 are based on current PILOT agreements. Sec. 3-22 ---PAGE BREAK--- Fiscal Year Revenue 2011 1,319,079 Actual 2012 1,440,185 Actual 2013 1,462,691 Actual 2014 1,321,060 Actual 2015 1,043,782 Actual 2016 1,322,806 Actual 2017 1,082,164 Actual 2018 830,534 Actual 2019 837,861 Actual 2020 753,198 Actual 2021 888,010 Actual 2022 700,000 Estimated -21.2% Payment in Lieu of Taxes (PILOT) % Change FY21 vs. FY22 CHARGES FOR SERVICES Services / Charges / User Fees – Charges for services are a revenue source to assist municipalities to offset the cost of certain services provided to the community. Some of the fees within this category are board of health fees, building and plumbing permits, electrical fees, engineering inspections as well as park and recreational fees. In FY 2007 the trash fee was also added to this category as well as passport and ferry fees. In FY08 the trash fee was moved to an enterprise fund, however police and fire administrative fees for detail work were added as a new revenue source. FY2022 estimates reflect continued strong performance recent building projects, which appear to have increased during COVID-19, while being more in line with recent years as FY2021 is likely to be an outlier in collections. This revenue number is variable and can fluctuate up and down, based on a number of external factors. Sec. 3-23 ---PAGE BREAK--- Fiscal Year Revenue 2011 1,274,446 Actual 2012 1,464,056 Actual 2013 2,073,901 Actual 2014 1,535,118 Actual 2015 2,102,749 Actual 2016 1,899,470 Actual 2017 2,901,242 Actual 2018 2,203,611 Actual 2019 2,657,299 Actual 2020 2,405,034 Actual 2021 3,026,130 Actual 2022 2,350,000 Estimated -22.3% Charges for Services % Change FY21 vs. FY22 PARKING FEES Parking Fees – Parking revenues are from fees charged for parking at the Museum Place Mall Parking Garage, South Harbor Parking Garage, Church Street Lot, and all metered parking. Parking revenues are set by City Ordinance. Revenue increase are anticipated from these adjustments to assist with ongoing maintenance and improvements of these facilities. In FY 2018 the Traffic and Parking director and staff worked with the Traffic and Parking Commission to review all parking rates, which have been largely unchanged for eight years, and utilization levels in the downtown area. It was determined that rates were low and should be increased in certain locations to better reflect value and utilization of parking. In FY19, the City of Salem adopted a new parking fee structure of many key components of the parking department; including increases from $1.00/hr. to $1.50/hr. in the Museum Place Garage, from $.25/hr. to $.75/hr. in the South Harbor Garage, at the Church Street parking lots from $1.00 per hour to $1.50 per hour and other lots throughout the city from .50 to $1.00-$1.50. Residents are provided lower rates in many areas. In addition to the garage rates and meter changes, the price for a parking pass in the Riley Plaza parking lot changed to $35.00 per month, effective September 22, 2018. Sec. 3-24 ---PAGE BREAK--- Fiscal Year Revenue 2011 2,334,422 Actual 2012 2,274,469 Actual 2013 2,580,261 Actual 2014 2,510,838 Actual 2015 2,393,621 Actual 2016 2,468,115 Actual 2017 2,612,136 Actual 2018 2,637,742 Actual 2019 3,405,988 Actual 2020 2,913,363 Actual 2021 2,664,368 Actual 2022 2,500,000 Estimated -6.2% Parking Fees % Change FY21 vs. FY22 Sec. 3-25 ---PAGE BREAK--- LICENSES AND PERMITS Licenses & Permits - License and permit revenue arises from the City's regulation of certain activities selling alcoholic beverages). A person or organization pays a license fee to engage in the activity for a specified period. The primary licensing agency in the City is the City Council. All fees are set by one of three methods: State law, City By-Law or Licensing Body. Liquor Licenses - Under Chapter 138 of the General Laws of Massachusetts, the City is empowered to grant licenses regulating the sale of alcoholic beverages. License fees vary depending upon the type of establishment, closing hours, number of days open, and whether the license is for all alcohol or beer and wine. All licenses issued by the City Council, with the exception of short-term and seasonal liquor licenses, have a maximum fee set by State statute. In FY 2011 Liquor license fees for all restaurants impacted by the increase in meals tax were reduced by 25%. Entertainment - Entertainment licenses are issued for live performances, movie theaters, automatic amusement machines, billiard tables, bowling alleys, and several other forms of entertainment. City Clerk Licenses & Permits - The City Clerk issues licenses and permits primarily relating to marriages, births, deaths and dog registrations. Other Departmental Permits - Other Departments issue various permits including smoke detector, LP gas, firearms, and constable fees. FY2022 projections reflect recent trends due to the impact of COVID-19. Fiscal Year Revenue 2011 510,375 Actual 2012 499,048 Actual 2013 484,183 Actual 2014 505,128 Actual 2015 504,856 Actual 2016 535,225 Actual 2017 509,465 Actual 2018 533,820 Actual 2019 543,169 Actual 2020 500,935 Actual 2021 364,074 Actual 2022 300,000 Estimated -17.6% Licenses & Permits % Change FY21 vs. FY22 Sec. 3-26 ---PAGE BREAK--- FINES AND FORFEITS Court Fines – Non-parking offenses result in fines for moving violations. Responding to the community’s desires and public safety concerns, the police department has been focused on enforcing speed limits in local neighborhoods. Other moving violations that are included in this category are driving while intoxicated, passing in the wrong lane, and failing to stop at the traffic signal. These fines, collected by the District Court, are distributed to the City on a basis. Parking Fines - The collection of outstanding parking fines continues to be an important source of revenue to the City. The timely collection of fines has been aided by automation, and by State law that violators are prohibited from renewing their driver’s licenses and registrations until all outstanding tickets are paid in full. Like Motor Vehicle Excise, those individuals who do not pay their parking tickets in a timely manner are not allowed to renew registrations and licenses through a ‘marking’ process at the RMV. The City of Salem notifies the Registry of delinquent fine payers, through its deputy collector, who prepares parking ticket delinquent files for the Registry of Motor Vehicles. As part of the 2011 parking study, the City has changed both the time limits and the overtime fine for parking meters. The limits will increase from two hours to four hours, which will certainly decrease the amounts of overtime violations written by the meter enforcement division. However, the increase of the overtime fine will offset some of the decrease in the volume of tickets written. Furthermore, the sharply reduced rates in the City’s parking garages will certainly decrease the volume of cars parking curbside (where the tickets are written) and increase the volume of cars parking in the garage, where there will be virtually no tickets written (except for handicap violations, which go into a separate account). Fiscal Year Revenue 2011 1,208,272 Actual 2012 1,255,894 Actual 2013 1,230,761 Actual 2014 1,208,544 Actual 2015 1,167,427 Actual 2016 882,008 Actual 2017 823,329 Actual 2018 1,004,571 Actual 2019 1,151,517 Actual 2020 1,092,649 Actual 2021 1,043,048 Actual 2022 800,000 Estimated -23.3% Fines & Forfeits % Change FY21 vs. FY22 Sec. 3-27 ---PAGE BREAK--- Interest Income - Under Chapter 44 Section 55B of the Mass. General Laws, all monies held in the name of the City which are not required to be kept liquid for purposes of distribution shall be invested in such manner as to require the payment of interest on the money at the highest possible rate reasonably available. The investment decision must take into account safety, liquidity and yield. The City Treasurer looks to maximize our earning potential by evaluating investing options. Fiscal Year Revenue 2011 53,792 Actual 2012 74,956 Actual 2013 110,033 Actual 2014 150,400 Actual 2015 202,893 Actual 2016 215,624 Actual 2017 263,963 Actual 2018 246,422 Actual 2019 379,496 Actual 2020 491,574 Actual 2021 161,258 Actual 2022 150,000 Estimated -7.0% Interest Income % Change FY21 vs. FY22 Sec. 3-28 ---PAGE BREAK--- MISCELLANEOUS Medicaid Reimbursements (SPED) – In accordance with laws and regulations governing the Medicaid program, school systems are mandated by the Individuals with Disabilities Education Act (IDEA) to provide health related services to their special education student population. They are permitted to file claims for partial federal reimbursement for both their student health services and the administrative support expenditures incurred in providing those services. We receive both the Direct Student Expenditures reimbursement (school-based health services provided directly to the student) and the Administrative expenditures reimbursement (to assist in the delivery of Special Education (SPED) services to students.) Fiscal Year Revenue 2011 613,373 Actual 2012 483,907 Actual 2013 461,366 Actual 2014 640,291 Actual 2015 716,092 Actual 2016 815,622 Actual 2017 906,605 Actual 2018 1,075,129 Actual 2019 897,515 Per Recap 2020 568,944 Estimated 2021 594,700 Actual 2022 450,000 Estimated -24.3% Medicaid - Reimbursement (SPED) % Change FY21 vs. FY22 Sec. 3-29 ---PAGE BREAK--- Other Miscellaneous Recurring – This category is used for all ‘other’ non-categorized income such as revenue from sale of copies of reports generated by a department, sale of data from tax files, collector’s fees, refunds, bad checks, etc. We are not budgeting any revenues for this category in FY2022. Fiscal Year Revenue 2011 283,177 Actual 2012 437,027 Actual 2013 515,489 Actual 2014 349,085 Actual 2015 160,902 Actual 2016 265,325 Actual 2017 302,121 Actual 2018 259,346 Actual 2019 472,001 Actual 2020 - Actual 2021 - Actual 2022 - Estimated 0.0% Miscellaneous Recurring % Change FY21 vs. FY22 Miscellaneous Non-Recurring – This category is used for all one-time income sources and revenues not considered common in municipalities. Historically, much of this was Host Fee money that comes in as tax revenue and is part of the Tax Levy. Only 185,000 actually comes in as revenue outside of the tax levy. Massachusetts General Law (MGL) Chapter 21A, Section 33 allows for a Reimbursement for Communities Affected by the Regional Greenhouse Gas Initiative (RGGI) also known as the ‘Hold Harmless Agreement.’ Fiscal Year Revenue 2011 2,927,676 Actual 2012 3,681,377 Actual 2013 3,377,535 Actual 2014 3,606,906 Actual 2015 5,271,156 Actual 2016 5,256,547 Actual 2017 4,657,229 Actual 2018 4,005,456 Actual 2019 3,750,000 Actual 2020 730,139 Actual 2021 819,807 Actual 2022 100,000 Estimated -87.8% Miscellaneous Non-Recurring Revenue % Change FY21 vs. FY22 Sec. 3-30 ---PAGE BREAK--- III. INTERGOVERNMENTAL REVENUE – CHERRY SHEET Cherry Sheet - Every year the Commonwealth sends out to each municipality a "Cherry Sheet", named for the pink-colored paper on which it was originally printed. The Cherry sheet comes in two parts, one listing the State assessments to municipalities for Massachusetts Bay Transportation Authority (MBTA), Charter Schools, RMV non-renewal fees, Retired Teachers Health Insurance, air pollution control districts, and the other State programs; the other section lists the financial aid the City will receive from the State for funding local programs. Each Cherry Sheet receipt is detailed below. State Cherry Sheet revenue funds are the primary intergovernmental revenue and in the case of many cities, is the single largest source of annual revenue. Cherry Sheet revenue consists of direct school aid, local aid, and specific reimbursements and distributions such as aid to public libraries, veteran's benefits, police career incentives, and a number of school related items. For a complete copy of the Cherry Sheet Manual or the actual Cherry Sheet Local Receipts and/or Assessments go to: School Aid - Chapter 70 school aid is based on a complex formula that takes into account: statewide average cost per pupil; local district pupil counts, with weighing factors to reflect varying costs among programs such as special education or vocational education, and municipal fiscal "ability to pay" for education, as measured by equalized valuation per capita as a percent of statewide averages. In FY2022 the State increased Chapter 70 revenue by 0.5%. Fiscal Year Revenue 2011 16,969,097 Actual 2012 18,522,267 Actual 2013 20,759,584 Actual 2014 20,879,459 Actual 2015 21,231,627 Actual 2016 21,348,402 Actual 2017 21,600,632 Actual 2018 21,736,742 Actual 2019 21,872,762 Actual 2020 25,807,152 Actual 2021 25,807,152 Actual 2022 25,936,602 Estimated 0.5% Chapter 70- School Aid % Change FY21 vs. FY22 Sec. 3-31 ---PAGE BREAK--- Local Aid - The major non-school state aid items are Charter School Tuition Reimbursement and Unrestricted General Government Aid (UGGA). These funds are unrestricted and can therefore be used by the municipality for any municipal purpose. Charter Tuition Reimbursement - Under Chapter 71, Section 89, 2004 Chapter 46 of the Acts of 1997 provides for the reimbursement sending districts for the tuition they pay to Commonwealth charter schools. It is a reimbursement for those students that elect to attend a charter school. Sending districts are reimbursed a portion of the costs associated with pupils attending charger schools beginning with the second quarterly distribution. There are three levels to the reimbursement; 100% of the tuition increase in the first year, 60% of the tuition increase in the second year, and 40% of the tuition increase in the third year. In addition, the reimbursement covers 100% of the first-year cost of pupils at charter schools who attend private or independent schools in the previous year. The reimbursement also covers 100% of the cost of any sibling students whose tuition brings a district above it statutory assessment cap of 9% of net school spending. The reimbursement is subject to appropriation in the final budget for the Commonwealth. This is a preliminary number based on school enrollment figures available at this time. Fiscal Year Revenue 2011 768,178 Actual 2012 671,726 Actual 2013 738,383 Actual 2014 745,832 Actual 2015 1,008,704 Actual 2016 1,205,802 Actual 2017 1,174,128 Actual 2018 1,036,924 Actual 2019 847,885 Actual 2020 701,225 Actual 2021 846,698 Actual 2022 840,943 Estimated -0.7% Charter School Reimbursement % Change FY21 vs. FY22 Sec. 3-32 ---PAGE BREAK--- Unrestricted General Government Aid (UGGA). In FY 2010 the state eliminated the Lottery Aid, General Fund Subsidy to Lottery, and Additional Assistance revenue and replaced it with this revenue called ‘Unrestricted General Government Aid’. The FY 2006 to FY 2009 combines the three revenue sources no longer used (lottery, subsidy to lottery, & additional assistance). The FY 2022 amount is a 3.5% increase. Fiscal Year Revenue 2011 5,834,758 Actual 2012 5,412,881 Actual 2013 5,834,758 Actual 2014 5,972,679 Actual 2015 6,138,313 Actual 2016 6,359,292 Actual 2017 6,632,742 Actual 2018 6,891,419 Actual 2019 7,132,619 Actual 2020 7,325,200 Actual 2021 7,325,200 Actual 2022 7,581,582 Estimate 3.5% Unrestricted Gen. Govt. Aid % Change FY21 vs. FY22 Veterans' Benefits - Under Chapter 115, Section 6 municipalities receive a seventy-five percent (75%) State reimbursement on the total expenditures made on veterans’ financial, medical and burial benefits. The state anticipates a – 22.9% increase in reimbursement for FY 2022 based on prior fiscal year actual reimbursement submissions. Sec. 3-33 ---PAGE BREAK--- Fiscal Year Revenue 2011 109,431 Actual 2012 153,533 Actual 2013 202,949 Actual 2014 332,364 Actual 2015 451,957 Actual 2016 342,687 Actual 2017 370,085 Actual 2018 313,862 Actual 2019 311,563 Actual 2020 311,518 Actual 2021 258,545 Actual 2022 317,771 Estimated 22.9% Veterans Benefits % Change FY21 vs. FY22 State Owned Land – This revenue is to reimburse communities for forgone tax revenues due to certain types of tax-exempt state-owned land. Eligibility for reimbursement depends on land use and the state agency with jurisdiction over the property as specified in the legislation. Fiscal Year Revenue 2011 45,145 Actual 2012 46,760 Actual 2013 46,774 Actual 2014 47,700 Actual 2015 53,305 Actual 2016 53,305 Actual 2017 52,670 Actual 2018 52,620 Actual 2019 53,349 Actual 2020 61,597 Actual 2021 63,200 Actual 2022 78,897 Estimated 24.8% State Owned Land % Change FY21 vs. FY22 Sec. 3-34 ---PAGE BREAK--- Exemptions: Vets, Blind, Surviving Spouses, and Elderly - The State Cherry Sheet reimburses the City for loss of taxes due to real estate abatements to veterans, surviving spouses and the legally blind. The abatement categories are authorized by the State. The City is not empowered to offer abatements in other categories. Under Chapter 59, Section 5, of the General Laws, municipalities are reimbursed for amounts abated in excess of $175 of taxes of $2,000.00 in valuation times the rate, whichever is greater. Qualifying veterans or their surviving spouses receive an abatement of $175 or $2,000 in valuation times the tax rate, whichever is the greater. Chapter 59, Section 5, Clause 17d, of the General Laws, as amended by Section 2, Chapter 653 of the Acts of 1982, provides a flat $175 in tax relief to certain persons over seventy, minors, and widows/widowers. Chapter 59, Section 5, Clause 37a, of the General Laws as amended by Section 258 of the Acts of 1982 provides an abatement of $500 for the legally blind. Chapter 59, Section 5, Clause 41c, of the General Laws as amended by Section 5, of Chapter 653 of the Acts of 1982, qualifying persons over seventy years of age are eligible to receive a flat tax exemption of $500. In FY 2010 the state combined the elderly exemption with the veterans, blind and surviving spouse’s exemptions. In previous years, the elderly exemption was budgeted separately. FY 2022 shows a decrease of Fiscal Year Revenue 2011 135,493 Actual 2012 134,455 Actual 2013 138,606 Actual 2014 136,295 Actual 2015 133,586 Actual 2016 132,676 Actual 2017 163,437 Actual 2018 125,772 Actual 2019 123,569 Actual 2020 116,830 Actual 2021 117,119 Actual 2022 112,397 Estimated -4.0% Exemptions- Vets, Blind, Spouse & Elderly % Change FY21 vs. FY22 Cherry Sheet Offsets for Direct Expenditure – The state provides receipts that are paid directly to departments through state granting agencies, and are not part of the City’s General Fund Cherry Sheet Revenue. These revenues are for School Lunch and Public Library as shown in the charts below. For a description of Offset Receipts go to The school lunch offset from the Cherry Sheet by DOR is an education offset that has no impact on the tax rate setting process. The Library Offset receipt was increased by 3.3% for FY 2022. Sec. 3-35 ---PAGE BREAK--- Fiscal Year Revenue 2011 23,310 Actual 2012 28,080 Actual 2013 27,762 Actual 2014 27,578 Actual 2015 27,439 Actual 2016 0 Actual 2017 0 Actual 2018 0 Actual 2019 65,250 Actual 2020 118,561 Actual 2021 301,416 Actual 2022 297,247 Estimated -1.4% School Lunch Offset Receipts for Direct Expenditure % Change FY21 vs. FY22 Fiscal Year Revenue 2011 49,934 Actual 2012 47,725 Actual 2013 48,262 Actual 2014 48,103 Actual 2015 63,576 Actual 2016 61,165 Actual 2017 61,448 Actual 2018 59,927 Actual 2019 61,311 Actual 2020 64,067 Actual 2021 76,817 Actual 2022 79,333 Estimated 3.3% Library Offset Receipts for Direct Expenditure % Change FY21 vs. FY22 Total Estimated Cherry Sheet Revenue (Net of Offsets) – The total of all cherry sheet revenue is listed below. Fiscal Year Revenue 2011 24,225,556 Actual 2012 24,941,622 Actual 2013 27,701,712 Actual 2014 28,104,329 Actual 2015 29,017,492 Actual 2016 29,442,164 Actual 2017 29,993,695 Actual 2018 30,157,339 Actual 2019 30,406,997 Actual 2020 34,323,522 Actual 2021 34,417,914 Actual 2022 34,868,192 Actual 1.3% Total Cherry Sheet Revenue (Net of Offsets) % Change FY21 vs. FY22 Sec. 3-36 ---PAGE BREAK--- MA Department of Revenue MA Department of Revenue MA Department of Revenue MA Department of Revenue Division of Local Services Division of Local Services Division of Local Services Division of Local Services Final Municipal Cherry Sheet Estimates Data current as 7/19/2021 C.S. 1-ER C.S. 1-ER C.S. 1-ER C.S. 1-ER Commonwealth of Massachusetts Department of Revenue Commonwealth of Massachusetts Department of Revenue Commonwealth of Massachusetts Department of Revenue Commonwealth of Massachusetts Department of Revenue FY2022 FY2022 FY2022 FY2022 NOTICE TO ASSESSORS OF ESTIMATED RECEIPTS NOTICE TO ASSESSORS OF ESTIMATED RECEIPTS NOTICE TO ASSESSORS OF ESTIMATED RECEIPTS NOTICE TO ASSESSORS OF ESTIMATED RECEIPTS General Laws, Chapter 58, Section 25A Salem Salem Salem Salem A. EDUCATION Distributions and Reimbursements Chapter 70 25,936,602 School Transportation 0 Charter Tuition Reimbursement 840,943 Smart Growth School Reimbursement 0 Offset Items - Reserve for Direct Expenditure: School Choice Receiving Tuition 297,247 Sub-Total, All Education Items: 27,074,792 B. GENERAL GOVERNMENT: Distributions and Reimbursements Unrestricted General Government Aid 7,581,582 Local Share of Racing Taxes 0 Regional Public Libraries 0 Veterans Benefits 317,771 Exemp: VBS and Elderly 112,397 State Owned Land 78,897 Offset Items - Reserve for Direct Expenditure: Public Libraries 79,333 Sub-Total, All General Government: 8,169,980 C. TOTAL ESTIMATED RECEIPTS: 35,244,772 Sec. 3-40 ---PAGE BREAK--- C.S. 1-ER C.S. 1-ER C.S. 1-ER C.S. 1-ER Commonwealth of Massachusetts Department of Revenue Commonwealth of Massachusetts Department of Revenue Commonwealth of Massachusetts Department of Revenue Commonwealth of Massachusetts Department of Revenue FY2022 FY2022 FY2022 FY2022 NOTICE TO ASSESSORS OF ESTIMATED CHARGES NOTICE TO ASSESSORS OF ESTIMATED CHARGES NOTICE TO ASSESSORS OF ESTIMATED CHARGES NOTICE TO ASSESSORS OF ESTIMATED CHARGES General Laws, Chapter 59, Section 21 Salem Salem Salem Salem A. COUNTY ASSESSMENTS: County Tax 0 Suffolk County Retirement 0 Sub-Total, County Assessments: 0 B. STATE ASSESSMENTS AND CHARGES: Retired Employees Health Insurance 0 Retired Teachers Health Insurance 0 Mosquito Control Projects 52,670 Air Pollution Districts 13,547 Metropolitan Area Planning Council 23,814 Old Colony Planning Council 0 RMV Non-Renewal Surcharge 132,400 Sub-Total, State Assessments: 222,431 C. TRANSPORTATION AUTHORITIES: MBTA 978,993 Boston Metro. Transit District 0 Regional Transit 0 Sub-Total, Transportation Assessments: 978,993 D. ANNUAL CHARGES AGAINST RECEIPTS: Multi-Year Repayment Program 0 Special Education 33,032 STRAP Repayments 0 Sub-Total, Annual Charges Against Receipts: 33,032 E. TUITION ASSESSMENTS: School Choice Sending Tuition 572,922 Charter School Sending Tuition 7,622,885 Sub-Total, Tuition Assessments: 8,195,807 F. TOTAL ESTIMATED CHARGES: 9,430,263 Sec. 3-41 ---PAGE BREAK--- IV. SCHOOL BUILDING AUTHORITY (SBA) REIMBURSEMENTS School Construction - The School Assistance Act, as amended, provides for the reimbursement of school construction projects that involve any of the following: The replacement of unsound or unsafe buildings; the prevention or elimination of overcrowding; prevention of the loss of accreditation; energy conservation projects, and the replacement of, or remedying of, obsolete buildings. The law also provides formulas (involving equalized valuation, school population, construction costs, and interest payments) for reimbursement of costs that include fees, site development, construction, and original equipping of the school. In July of 2004, the governor signed Chapter 208 and Chapter 210, of the Acts of 2004 into law, which makes substantial changes to the School Building Assistance (SBA) program. This legislation transfers responsibility for the SBA program from the Department of Education to the Massachusetts School Building Authority (MSBA), under the Office of the State Treasurer. The authority is a new and independent governing body comprised of seven members. The legislation under Chapter 210 dedicates 1 percent of the sales tax receipts to help fund School Building projects. For more information go to www.mass.gov/msba The City of Salem still receives some payments under the old SBA program and also receives reimbursements for ALL eligible costs for the ongoing Collins and Saltonstall Schools under the new MSBA program. FY 2014 saw a significant reduction in SBA reimbursement of $1.8M (71.1%) due to the payoff of the Bowditch, Saltonstall and part of Bates bonds. The only project the SBA is still reimbursing is the reduced amount on the Bates school. The SBA reimbursement chart is later in this section. Reimbursements stop in FY2020. Fiscal Year Revenue 2011 4,310,837 Actual 2012 3,521,535 Actual 2013 2,534,339 Actual 2014 732,824 Actual 2015 732,824 Actual 2016 732,824 Actual 2017 732,824 Actual 2018 732,824 Actual 2019 732,824 Actual 2020 732,824 Actual School Construction School Building Authority (SBA) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 School Construction - School Building Authority (SBA) Sec. 3-37 ---PAGE BREAK--- V. INTERGOVERNMENTAL & INTERFUND TRANSFERS Enterprise Fund Transfer - The Water and Sewer Enterprise Funds, financed by water and sewer usage charges, provide reimbursements for direct and indirect costs associated with a variety of City services, provided by Finance, Treasury, Human Resources, and other City Departments. Additionally, enterprise funds provide reimbursements to the general fund for all employee benefits (including fringe benefits) of those employees who work for the water and sewer departments, as well as costs for the maintenance of the Water and Sewer accounting and billing system. Finally, a portion of the City’s assessments for property/casualty insurance, unemployment and worker’s compensation are also captured in the indirect costs of the enterprise funds of the water and sewer departments. The Trash Enterprise Fund is subsidized by the General Fund and therefore no indirect costs are reimbursed back to the General Fund from the Trash Enterprise Fund. Starting in FY 2015 the City began to steadily reduce the amount of indirect costs transferred to the General Fund in response to the recommendation of the City’s outside auditors to more accurately calculate indirect costs. In FY18 we began to increase the indirect costs based on a new methodology of calculating indirect costs that has been approved by the auditors. Fiscal Year Revenue 2011 1,452,222 Actual 2012 1,477,074 Actual 2013 1,493,881 Actual 2014 1,601,654 Actual 2015 1,501,654 Actual 2016 1,424,095 Actual 2017 1,324,095 Actual 2018 1,354,900 Actual 2019 1,345,221 Actual 2020 1,431,996 Actual 2021 1,468,249 Actual 2022 1,469,176 Estimated 0.1% Inter-fund Operating Transfers In Indirect Costs from Enterprise Funds % Change FY21 vs. FY22 Sec. 3-38 ---PAGE BREAK--- OTHER FINANCIAL SOURCES Receipts Reserved for Appropriation – They City of Salem has three Receipts’ Reserved for Appropriation Funds for Harbormaster, Golf Course, and Witch House. The revenue earned from these activities is credited to each of these special revenue funds. At the request of the Mayor, that money is appropriated by the City Council to the General Fund to cover both direct and indirect costs of each department in December for purposes of the certification of the City’s tax rate by the Massachusetts Department of Revenue, as well as periodically throughout the year at the request of the department head of the Golf Course, Witch House, or Harbormasters Office to cover unforeseen or extraordinary expenses. We anticipate an increase of 39.6% for FY 2022 based on revised indirect cost calculations and necessary increases to budgets. Fiscal Year Revenue 2011 934,070 Actual 2012 977,042 Actual 2013 1,008,106 Actual 2014 1,014,995 Actual 2015 1,050,452 Actual 2016 1,116,347 Actual 2017 1,238,398 Actual 2018 1,295,034 Actual 2019 1,337,058 Actual 2020 1,238,516 Actual 2021 975,000 Actual 2022 1,361,195 Per Recap 39.6% Receipts Reserved for Appropriations % Change FY21 vs. FY22 Other Receipts Reserved – Not Budgeted The City has three other receipts reserved accounts – Sale of Lots, Sale of Vaults, and Salem Common. The first two can only be used for the care and maintenance of graves in the City’s cemetery, and the Salem Common money can only be used for care and maintenance of the Salem Common. This money is transferred to the General Fund by appropriation from the City Council as needed. Other Sources of Revenue – The City of Salem has in the past used Free Cash, Stabilization, and overlay (abatement and exemption reserve) to balance the budget. Sec. 3-39 ---PAGE BREAK--- CITY OF SALEM, MASSACHUSETTS FY 2022 OPERATING BUDGET ACTUAL ADOPTED DEPT MAYOR CITY COUNCIL EXPENDED BUDGET BUDGET BUDGET BUDGET FY 2020 FY 2021 FY 2022 FY 2022 FY 2022 Amount Percentage GENERAL FUND GENERAL GOVERNMENT 8,109,489 7,752,464 9,083,544 9,163,410 9,163,410 2,178,640 18.20% PUBLIC SAFETY 21,878,617 22,042,166 23,100,136 23,072,889 23,072,889 1,262,435 4.68% PUBLIC WORKS & FACILITIES 4,383,742 3,747,358 4,184,153 4,097,953 4,097,953 441,564 9.36% HUMAN SERVICES 1,289,033 1,640,930 1,802,451 1,800,728 1,800,728 159,798 9.74% CULTURAL & RECREATIONAL 2,535,997 3,024,885 3,377,751 3,382,603 3,382,603 347,771 11.83% DEBT SERVICE 6,066,527 7,627,024 7,408,350 7,408,350 7,408,350 (218,674) -2.87% ASSESSMENTS 11,413,126 11,686,755 12,033,252 12,030,062 12,030,062 738,569 2.94% EMPLOYEE BENEFITS 25,643,980 30,268,867 31,825,938 31,825,938 31,825,938 1,589,932 5.14% MUNICIPAL INSURANCE 285,657 338,556 373,500 373,500 373,500 81,116 10.32% TRANSFERS OUT OF GENERAL FUND 3,927,144 3,848,570 650,000 650,000 650,000 25,000 -83.11% CITY TOTAL 85,533,312 91,977,575 93,839,075 93,805,433 93,805,433 6,606,151 1.99% EDUCATION-PUBLIC SCHOOLS 58,479,049 63,449,649 66,597,919 66,597,919 66,597,919 8,969,030 4.96% EDUCATION TOTAL 58,479,049 63,449,649 66,597,919 66,597,919 66,597,919 8,969,030 4.96% GENERAL FUND TOTAL 144,012,361 155,427,224 160,436,994 160,403,352 160,403,352 15,575,181 3.20% ENTERPRISE FUNDS SEWER 7,868,862 8,064,900 8,329,469 8,329,470 8,329,469 116,325 3.28% WATER 6,076,958 6,449,188 6,478,342 6,478,342 6,478,342 29,154 0.45% TRASH 3,633,572 3,229,608 3,962,443 3,962,443 3,962,443 86,244 22.69% ENTERPRISE FUND TOTAL 17,579,392 17,743,696 18,770,254 18,770,255 18,770,254 231,723 5.79% GRAND TOTAL ALL FUNDS 161,591,753 173,170,920 179,207,248 179,173,607 179,173,606 15,806,904 3.47% Inc/Decr FY21 vs. FY22 Budget Sec. 3-42 ---PAGE BREAK--- CITY OF SALEM, MASSACHUSETTS FY 2022 OPERATING BUDGET ACTUAL ADOPTED DEPT MAYOR CITY COUNCIL EXPENDED BUDGET BUDGET BUDGET BUDGET FY 2020 FY 2021 FY 2022 FY 2022 FY 2022 Amount Percentage Inc/Decr FY21 vs. FY22 Budget GENERAL GOVERNMENT: CITY COUNCIL Legislative 184,918 203,907 246,970 246,970 246,970 38,120 18.25% MAYOR Executive 564,643 567,051 610,837 610,837 610,837 43,786 7.72% FINANCE/AUDITING Accounting 363,882 393,889 473,390 408,390 408,390 14,501 3.68% PURCHASING Purchasing 142,524 177,736 201,399 201,399 201,399 23,664 13.31% Fixed Costs 70,112 73,076 82,588 82,588 82,588 9,512 13.02% ASSESSORS Board of Assessors 315,841 371,434 362,192 368,692 368,692 (2,741) -0.74% TREASURER Treasury Services 338,673 451,771 445,940 446,892 446,892 24,110 -1.08% COLLECTOR Tax Collections 207,927 245,935 260,123 257,623 257,623 11,688 4.75% SOLICITOR Legal Services/Licensing 445,306 382,522 513,274 513,274 513,274 130,752 34.18% HUMAN RESOURCES Personnel 826,908 262,373 544,344 543,245 543,245 195,220 107.05% - - - Information Technology IT 860,464 749,710 801,741 801,741 801,741 52,031 6.94% Fixed Costs 909,860 768,558 834,565 834,565 834,565 66,007 8.59% CITY CLERK Record Maintenance 271,469 312,544 317,729 330,573 330,573 18,030 5.77% ELECTION/REGISTRATION Voting 199,393 220,307 228,950 228,050 228,050 7,743 3.51% Sec. 3-43 ---PAGE BREAK--- CITY OF SALEM, MASSACHUSETTS FY 2022 OPERATING BUDGET ACTUAL ADOPTED DEPT MAYOR CITY COUNCIL EXPENDED BUDGET BUDGET BUDGET BUDGET FY 2020 FY 2021 FY 2022 FY 2022 FY 2022 Amount Percentage Inc/Decr FY21 vs. FY22 Budget CONSERVATION Active/Passive Conservation 19,649 28,735 29,679 29,679 29,679 944 3.29% PLANNING BOARD Subdivision, Planning & Zoning 30,360 35,945 36,990 36,990 36,990 1,045 2.91% APPEALS, BOARD OF Zoning Appeals 196 900 1,200 1,200 1,200 300 33.33% PLANNING Planning & Community Development 533,804 608,944 737,116 682,116 682,116 (14,924) 12.02% PUBLIC PROPERTY Public Prop-Fixed Costs 583,617 685,900 695,900 695,900 695,900 (5,624) 1.46% MARKET AND TOURIST COMM. Tourist Promotion 218,997 278,208 311,950 311,950 311,950 33,742 12.13% PARKING DEPARTMENT General Operations 1,020,945 1,299,822 1,346,667 1,346,667 1,346,667 46,845 3.60% RESILIENCY AND SUSTAINABILITY Climate Change Initiatives Coordination - - 199,184 199,184 199,184 - TOTAL GENERAL GOVERNMENT 8,109,489 8,119,266 9,083,544 9,163,410 9,163,410 893,934 12.86% PUBLIC SAFETY: POLICE Citizen Protection 9,110,273 10,705,403 11,605,909 11,602,528 11,602,528 897,125 8.38% FIRE Fire Suppression 7,975,640 9,489,864 9,555,806 9,555,806 9,555,806 297,289 0.69% PUBLIC PROPERTY/BLDG INSP Building/Plumbing/Gas Inspection 548,116 682,378 694,094 694,094 694,094 11,716 1.72% ELECTRICAL Electrical Inspection & Maintenance 659,232 793,127 856,546 837,680 837,680 44,553 5.62% HARBORMASTER Harbormaster 304,480 371,029 387,781 387,781 387,781 16,753 4.52% TOTAL PUBLIC SAFETY 21,878,617 22,042,166 23,100,136 23,072,889 23,072,889 1,262,435 4.68% Sec. 3-44 ---PAGE BREAK--- CITY OF SALEM, MASSACHUSETTS FY 2022 OPERATING BUDGET ACTUAL ADOPTED DEPT MAYOR CITY COUNCIL EXPENDED BUDGET BUDGET BUDGET BUDGET FY 2020 FY 2021 FY 2022 FY 2022 FY 2022 Amount Percentage Inc/Decr FY21 vs. FY22 Budget EDUCATION : City Public Schools 58,479,049 63,449,649 66,597,919 66,597,919 66,597,919 8,969,030 4.96% TOTAL EDUCATION 58,479,049 57,628,889 66,597,919 66,597,919 66,597,919 8,969,030 15.56% PUBLIC WORKS & FACILITIES: PUBLIC SERVICES Public Services-General/Park/Open Space/Cem 2,845,884 3,099,471 3,550,841 3,464,641 3,464,641 456,139 11.78% Snow and Ice 1,368,693 458,935 458,935 458,935 458,935 - 0.00% ENGINEERING Engineering-General Admin 169,165 188,952 174,377 174,377 174,377 (14,575) -7.71% TOTAL PUBLIC WORKS & FACILITIES 4,383,742 4,497,293 4,184,153 4,097,953 4,097,953 441,564 -8.88% HUMAN SERVICES: HEALTH, BOARD OF Administration & Support 452,507 553,592 681,762 679,039 679,039 125,447 22.66% COUNCIL ON AGING Administration & Support 414,235 558,500 587,620 588,620 588,620 30,119 5.39% VETERANS AGENT Administration & Support 422,291 528,838 533,069 533,069 533,069 4,232 0.80% TOTAL HUMAN SERVICES 1,289,033 1,602,027 1,802,451 1,800,728 1,800,728 159,798 12.40% CULTURAL & RECREATIONAL LIBRARY Administration & Support 1,177,556 1,348,068 1,459,092 1,459,092 1,459,092 111,024 8.24% Sec. 3-45 ---PAGE BREAK--- CITY OF SALEM, MASSACHUSETTS FY 2022 OPERATING BUDGET ACTUAL ADOPTED DEPT MAYOR CITY COUNCIL EXPENDED BUDGET BUDGET BUDGET BUDGET FY 2020 FY 2021 FY 2022 FY 2022 FY 2022 Amount Percentage Inc/Decr FY21 vs. FY22 Budget RECREATION Administration & Support 414,324 569,282 666,192 650,742 650,742 123,992 14.31% Golf Course 459,352 554,190 526,235 526,235 526,235 (27,955) -5.04% Witch House 208,432 238,748 282,755 281,755 281,755 43,006 18.01% Pioneer Village 18,356 18,699 18,600 18,600 18,600 (50,000) -0.53% Winter Island 231,841 265,895 259,929 282,717 282,717 16,821 6.33% Charter Street Cemetery - - 130,540 130,540 130,540 130,540 - HISTORICAL COMMISSION Historic Preservation 26,137 32,581 34,409 32,924 32,924 343 1.05% TOTAL CULTURAL & RECREATIONAL 2,535,997 2,893,638 3,377,751 3,382,603 3,382,603 347,771 16.90% DEBT SERVICE: Long Term Debt 5,471,483 6,442,406 6,470,521 6,470,521 6,470,521 28,115 0.44% Short Term Debt 595,044 1,184,618 937,829 937,829 937,829 (246,789) -20.83% TOTAL DEBT SERVICE 6,066,527 7,727,786 7,408,350 7,408,350 7,408,350 (218,674) -4.13% ASSESSMENTS: Essex NS Agricultural & Vocational School 2,262,449 2,367,453 2,602,989 2,602,989 2,602,989 235,536 9.95% State Assessments (Budgeted from RECAP) 9,150,677 9,049,302 9,427,073 9,427,073 9,427,073 503,033 4.17% TOTAL ASSESSMENTS 11,413,126 11,342,438 12,030,062 12,030,062 12,030,062 738,569 6.06% EMPLOYEE BENEFITS: Contributory Retirement 12,130,757 12,778,085 13,687,118 13,687,118 13,687,118 909,033 7.11% Non-contributory Pensions 8,033 10,034 10,315 10,315 10,315 281 2.80% Workmen's Compensation 433,944 491,305 528,270 528,270 528,270 99,826 7.52% Unemployment Compensation 148,292 300,000 300,000 300,000 300,000 (30,000) 0.00% Group Insurance 11,892,499 15,427,036 16,022,048 16,022,048 16,022,048 595,012 3.86% Medicare 1,030,455 1,262,407 1,278,187 1,278,187 1,278,187 15,780 1.25% TOTAL EMPLOYEE BENEFITS 25,643,980 30,268,867 31,825,938 31,825,938 31,825,938 1,589,932 5.14% MUNICIPAL INSURANCE : Municipal Insurance 285,657 292,384 373,500 373,500 373,500 81,116 27.74% TOTAL Municipal Insurance 285,657 338,556 373,500 373,500 373,500 81,116 10.32% BUDGET TRANSFERS OUT OF GF Retirement Stabilization & CIP Transfer 3,927,144 625,000 650,000 650,000 650,000 25,000 4.00% TOTAL Budget Transfers Out of GF 3,927,144 3,848,570 650,000 650,000 650,000 25,000 Sec. 3-46 ---PAGE BREAK--- CITY OF SALEM, MASSACHUSETTS FY 2022 OPERATING BUDGET ACTUAL ADOPTED DEPT MAYOR CITY COUNCIL EXPENDED BUDGET BUDGET BUDGET BUDGET FY 2020 FY 2021 FY 2022 FY 2022 FY 2022 Amount Percentage Inc/Decr FY21 vs. FY22 Budget ENTERPRISE FUNDS SEWER : Sewer - Public Services 535,683 646,798 665,861 665,861 665,861 (129,181) -16.25% Sewer - Engineering 756,015 670,518 945,307 945,307 945,307 274,789 40.98% Long Term Debt 1,692,333 1,931,587 1,930,488 1,930,488 1,930,488 (1,099) Short Term Debt 716 47,000 47,000 47,000 47,000 - SESD Assessment 4,879,519 4,763,997 4,735,813 4,735,813 4,735,813 (28,184) -0.59% Sewer - Insurance Deduction 4,597 5,000 5,000 5,000 5,000 - 0.00% TOTAL SEWER 7,868,862 8,064,900 8,329,469 8,329,470 8,329,469 116,325 1.42% WATER : Water-Public Services 661,195 693,448 722,511 722,511 722,511 29,063 4.19% Water-Engineering 573,826 709,768 787,907 787,907 787,907 78,139 11.01% Long Term Debt 2,269,580 2,315,546 2,169,309 2,169,309 2,169,309 (146,237) -6.32% Short Term Debt 1,843 53,000 11,106 11,106 11,106 (41,894) -79.05% SBWS Assessment 2,570,514 2,674,926 2,785,009 2,785,009 2,785,009 110,083 4.12% Water - Insurance Deduction 0 2,500 2,500 2,500 2,500 - TOTAL WATER 6,076,958 6,449,188 6,478,342 6,478,342 6,478,342 29,154 0.45% Solid Waste : Solid Waste - Engineering 3,633,572 3,876,199 3,962,443 3,962,443 3,962,443 86,244 2.22% TOTAL TRASH 3,633,572 3,229,608 3,962,443 3,962,443 3,962,443 86,244 2.22% PEG Access : Access Cable 471,155 691,250 691,250 691,250 691,250 - 0.00% TOTAL TRASH 471,155 3,229,608 691,250 691,250 691,250 - 0.00% ENTERPRISE FUND TOTAL 18,050,547 20,973,304 19,461,504 19,461,505 19,461,504 231,723 1.21% GRAND TOTAL ALL FUNDS 160,422,470 162,160,297 179,895,308 179,868,047 179,868,046 15,160,183 10.92% Sec. 3-47 ---PAGE BREAK--- ADOPTED OPERATING BUDGET ALL FUNDS TOTAL 181,337,222 $ FY 2022 Sec. 3-48 ---PAGE BREAK--- ADOPTED OPERATING BUDGET GENERAL FUND TOTAL 160,406,542 $ FY 2022 Sec. 3-49 ---PAGE BREAK--- Other Budgeted Items Voted By Council Retirement Stabilization Trust Fund – Included in General Fund Budget This trust fund was established in FY2009 in accordance with Massachusetts General Law – Chapter 46 sections 14 and 50 and Chapter 140 sections 19 and 137 of the Acts of 2003. The purpose of this trust fund is to fund retiring employees’ accrued sick and vacation buybacks as established by City Policy and contractual agreements. In FY2022 the budget in the general fund to be transferred to the Retirement Stabilization Trust Fund is $600,000. We may also transfer the balance of free cash at the end of FY2021 into this fund to cover retirements. Salem 2026 – 400 Anniversary Fund– Included in General Fund Budget In FY2014 the Mayor established a special revenue fund to help fund the City’s 400th anniversary celebration. We budgeted $50,000.00 this year to help prepare for events in 2026. Revolving Funds – Separate Vote - Not in Budget The Revolving Funds are submitted to the City Council as a separate order as a supplemental part of the annual budget process. Revolving funds are voted pursuant to the provisions of Massachusetts General Law Chapter 44, Section 53E ½. Expenditures from these funds shall not exceed the amount of the funds received in the respective funds or the budget amount voted by council. A complete explanation of revolving funds can be found at http://www.mass.gov/legis/laws/mgl/44-53e.5.htm. A complete listing of all revolving accounts voted by council can be found in the following pages. Sec. 3-50 ---PAGE BREAK--- REVOLVING FUNDS A departmental revolving fund is a place to set aside revenue received, through fees and charges, for providing a specific service or program. The revenue pool is, in turn, a source of funds available to use by a department without further appropriation to support the particular service or program. Most frequently, cities and towns create general departmental revolving funds under M.G.L. Ch. 44 Sec. 53E½ (see below). The fund is created with an initial city council or town meeting authorization that identifies which department’s receipts are to be credited to the revolving fund and specifies the program or purposes for which money may be spent. It designates the department, board or official with authority to expend the funds and places a limit on the total amount of the annual expenditure. To continue the revolving fund in subsequent years, annual approval of a similar article is necessary. Managers are also required, each year, to report on the fund and program activities. MGL - Section 53 E ½ Notwithstanding the provisions of section fifty-three, a city or town may annually authorize the use of one or more revolving funds by one or more municipal agency, board, department or office which shall be accounted for separately from all other monies in such city or town and to which shall be credited only the departmental receipts received in connection with the programs supported by such revolving fund. Expenditures may be made from such revolving fund without further appropriation, subject to the provisions of this section; provided, however, that expenditures shall not be made or liabilities incurred from any such revolving fund in excess of the balance of the fund nor in excess of the total authorized expenditures from such fund, nor shall any expenditures be made unless approved in accordance with sections forty-one, forty-two, fifty-two and fifty-six of chapter forty-one. Interest earned on any revolving fund balance shall be treated as general fund revenue of the city or town. No revolving fund may be established pursuant to this section for receipts of a municipal water or sewer department or of a municipal hospital. No such revolving fund may be established if the aggregate limit of all revolving funds authorized under this section exceeds ten percent of the amount raised by taxation by the city or town in the most recent fiscal year for which a tax rate has been certified under section twenty-three of chapter fifty-nine. No revolving fund expenditures shall be made for the purpose of paying any wages or salaries for full time employees unless such revolving fund is also charged for the costs of fringe benefits associated with the wages or salaries so paid; provided, however, that such prohibition shall not apply to wages or salaries paid to full or part-time employees who are employed as drivers providing transportation for public school students; provided further, that only that portion of a revolving fund which is attributable to transportation fees may be used to pay such wages or salaries and provided, further, that any such wages or salaries so paid shall be reported in the budget submitted for the next fiscal year. Sec. 3-51 ---PAGE BREAK--- A revolving fund established under the provisions of this section shall be by vote of the annual town meeting in a town, upon recommendation of the board of selectmen, and by vote of the city council in a city, upon recommendation of the mayor or city manager, in Plan E cities, and in any other city or town by vote of the legislative body upon the recommendation of the chief administrative or executive officer. Such authorization shall be made annually prior to each respective fiscal year; provided, however, that each authorization for a revolving fund shall specify: the programs and purposes for which the revolving fund may be expended; the departmental receipts which shall be credited to the revolving fund; the board, department or officer authorized to expend from such fund; a limit on the total amount which may be expended from such fund in the ensuing fiscal year; and, provided, further, that no board, department or officer shall be authorized to expend in any one fiscal year from all revolving funds under its direct control more than one percent of the amount raised by taxation by the city or town in the most recent fiscal year for which a tax rate has been certified under section twenty-three of chapter fifty-nine. Notwithstanding the provisions of this section, whenever, during the course of any fiscal year, any new revenue source becomes available for the establishment of a revolving fund under this section, such a fund may be established in accordance with this section upon certification by the city auditor, town accountant, or other officer having similar duties, that the revenue source was not used in computing the most recent tax levy. In any fiscal year the limit on the amount that may be spent from a revolving fund may be increased with the approval of the city council and mayor in a city, or with the approval of the selectmen and finance committee, if any, in a town; provided, however, that the one percent limit established by clause of the third paragraph is not exceeded. The board, department or officer having charge of such revolving fund shall report to the annual town meeting or to the city council and the board of selectmen, the mayor of a city or city manager in a Plan E city or in any other city or town to the legislative body and the chief administrative or executive officer, the total amount of receipts and expenditures for each revolving fund under its control for the prior fiscal year and for the current fiscal year through December thirty-first, or such later date as the town meeting or city council may, by vote determine, and the amount of any increases in spending authority granted during the prior and current fiscal years, together with such other information as the town meeting or city council may by vote require. At the close of a fiscal year in which a revolving fund is not reauthorized for the following year, or in which a city or town changes the purposes for which money in a revolving fund may be spent in the following year, the balance in the fund at the end of the fiscal year shall revert to surplus revenue unless the annual town meeting or the city council and mayor or city manager in a Plan E city and in any other city or town the legislative body vote to transfer such balance to another revolving fund established under this section. The director of accounts may issue guidelines further regulating revolving funds established under this section. Sec. 3-52 ---PAGE BREAK--- FY 2022 Revolving Funds Dept. Fund Name Fund # Programs & Purposes Type of Receipts Credited Authorization for Spending FY 2022 Budget Request Maximum Annual Expenditures COA COA Programs 2374 To defray program costs including instructors, presenters, entertainment, decorations, food, etc. Revenues and fees charged for programs COA Director and Mayor 40,000.00 Electrical Telecom 2376 To fund public information technology, telecommunication and electrical initiatives and projects Application fees and rental revenue from telecommunications attachments pursuant to sections 12-125 and 12-170 of the City Ordinances City Electrician and Mayor 50,000.00 Fire R/A Local Emergency Planning Comm 2433 Training and special equipment needed to resopnd to hazardous materials incidents per CH 21E Fees charged to persons spilling or releasing hazardous materials Fire Chief and Mayor 40,000.00 Harbormaster R/A WI STORAGE 2368 To Fund Capital items for Harbormaster,maintenance costs of equipment and maritime access projects. Fees charged for Boat and Float Storage at Winter Island and Kernwood Marina Harbormaster and Mayor 50,000.00 Health Dept Health Clinics 2364 To support vaccination program and other Health Promotion activities of the Health Department Reimbursements from vaccination programs Health Agent and Mayor 20,000.00 Mayor Special Events 2361 To cover expenses for Fireworks, bands, portable potties and other unanticipated expenditures Revenue from RFP's for services from vendors, and from misc sponsorships. Mayor 125,000.00 Recreation Winter Island Store 2362 To increase and replenish store inventory as needed and to enhance and maintain Winter Island Store & Facilities. Revenue from sale of inventory/services at Winter Island. Recreation Director and Mayor 40,000.00 Recreation Proctor's Ledge 2384 For Maintenance of Proctor's Ledge site Revenue of 25 cents from the sale of each ticket at the Witch House. Recreation Director and Mayor 12,000.00 Recreation Road Race Fees 2385 For Park Maintenance Field rental fees and five percent of race and event registration fees. Recreation Director and Mayor 6,000.00 Recreation Dog Park 2435 Renovations and Maintenance of Dog Park at Leslie's Retreat Park. Fee charged for pass to use dog park (pooch pass). $25. annually for pass. Recreation Director and Mayor 5,000.00 Recreation Park & Rec Public Access 2452 To be used for the operation and maintenance of Winter Island and McCabe Marina Parking and launch fees charged at McCabe Marina & Winter Island Recreation Director and Mayor 50,000.00 Recreation Salem Willows Meters 2459 Renovations and Maintenance of Willows Park. Money generated from Willows Meters Recreation Director and Mayor 30,000.00 Recreation Witch House 2499 To support Salem Award committee and the Salem Witch Trial Memorial 25 cent to tickets beginning in May 2009 Recreation Director and Mayor 10,000.00 Planning & Community Development Old Town Hall 2373 Maintenance costs of old town hall Rental revenue of old town hall Director of Planning and Mayor 50,000.00 Planning & Community Development Derby Square/Artists' Row 2375 Improvements for Derby Square and Artists' Row including outdoor furniture, signage, lighting, public art, marketing and stipends for performers Vendor fees from Derby Square Flea/Salvage Art Market, Rent and Vendor Fees at Artists Row Director of Planning and Mayor 50,000.00 Sec. 3-53 ---PAGE BREAK--- FY 2022 Revolving Funds Dept. Fund Name Fund # Programs & Purposes Type of Receipts Credited Authorization for Spending FY 2022 Budget Request Maximum Annual Expenditures COA COA Programs 2374 To defray program costs including instructors, presenters, entertainment, decorations, food, etc. Revenues and fees charged for programs COA Director and Mayor 40,000.00 Planning & Community Development Utility Energy Credit Fund 2377 To be used for City projects or programs that reduce utility costs, use, and/or emissions. This may include personnel costs associated with participation in the programs that generate the credits. Credits or payments received for City projects or programs that specifically result in reduction in utility costs, use, or emissions. Director of Planning and Mayor 250,000.00 Planning & Community Development Bike Sharing 2383 To receive and expend revenue from bike share program for system operation and promotion Revenue from rentals and annual memberships Director of Planning and Mayor 50,000.00 Planning & Community Development Salem Ferry/Salem Wharf Operational 2453 Fund operational costs of the Salem Ferry and operating, maintenance, capital repairs, security, utilities related to Salem Wharf Fees received during the season for leasinng of the Salem Wharf, MBTA Salem Passes, and fuel reimbursements Director of Planning and Mayor 500,000.00 Insp Services Abandoned Prop Maint 2371 To maintain abandoned and foreclosing residential and commercial properties Registration fees ($300.00) for vacant and/or foreclosing residential properties. Inspectional Services Director and Mayor 85,000.00 Public Services Tree Replacement New 2330 To replace trees removed during construction as directed by the Tree Warden or Planning Board Revenue from contributions per the Tree Ordinance or Planning Board decision Director of Public Services And Mayor 30,000.00 Engineering Traffic Island 2439 Projects related to City beautification events including Traffic Island, Beautification, and special events Primarily from: Traffic Island Sponsorships, Special Events Revenues, Event and Beautification effort sponsors City Engineer and Mayor 20,000.00 School-SBO Building Rental 2601 Building Rental Payments for rental of building by outside groups School Committee and Mayor 225,000.00 School-SPED Early Childhood 2608 Pre-School Tuition Tuition payments for students attending the pre-school program at the Early Childhood Center School Committee and Mayor 100,000.00 School-Trans School Busing 2614 School Bus pass Purchases of school bus passes School Committee and Mayor 160,000.00 School-HS Night/Summer School 2620 Night School Tuition Tuition payments for students attending the night school program School Committee and Mayor 50,000.00 School-SPED Special Education Tuition 2627 Special Education Tuition Tuition Payments for students from other distrcits attending Special Education programs in Salem School Committee and Mayor 300,000.00 School-Auto SHS Automotive 2645 To pay for parts and materials for automotive repairs to vehicles brought in to the HS Automotive Vocational School by Citizens Fees charged for parts and materials for automotive repairs to vehicles brought in by citizens School Committee and Mayor 50,000.00 Totals 2,398,000.00 Sec. 3-54