Document Salem_doc_af4a2f3f19

Budget Galendar - FY 2014 Mayor & Gity Finance Start Date End Date Finance Director prepares initial RevenueÆxpenditure (FYl2 RECAP) figures Mayor issues budgets & CIP requests to departs with budget instructions, and Cityrs long/short term goals Budget salary workshops with tr'inance & Departments Departments compile budget & CIP information & submit to Finance Budgets Entered in MUNIS by Finance Budget/CIP Review-Mayor, Finance, Department Heads Budge/CIP Review By Mayor & Finance Director School Committee Approves School Budget School Budget to City Finance Department for processing for City Council Finance Director Finalizes FY20l4 Revenue/Expenditures - Balanced Budget to Mayor Finance Department Prepares Final Budget for City Council January 1t31t2013 216120'13 to 2J2012013 21412013 to 212212013 212512013 to 31612012 31712013 to 312912013 April 6t7t20't3 4t23t2013 5t1t2013 5l'll20'13 to 519120'13 Mayor & School Gommittee Start Date End Date Superintendent & SBM give Budgets to Principals January Budget workshops with SBM, Principlas & Directors. Departments compile budget & CIP information & submit to School Business Office Budget/CIP review - Superintendent, SBM, Principals, Directors Budget/CIP Review - Superintendent, SBM, City Finance 214t2013 to 2t20t20'I.3 21412013 to 212212013 212512013 to 311s12012 311812012 to 312212012 School Budget Submitted to School Committee 4t'U2012 School Budget Review Meetings 41212012 to 4t19t2022 School Committee Approves School Budget 6t7t2013 Final School Budget To Citv Finance Dept 4t23t2013 Gity Gouncil Capital Improvement Plan sumbitted to City Council Budget Submitted to City Council City Council Administration & Finance budget review process City Council Vote on FY 20f 4 Capital Improvement PIan City Council Vote on FY 2014 City Budget 5t9t2013 5t23t20't3 5t27t2013 6t27t2013 6t27t20',t3 to 6t26t2013 Sec 3 - 1 ---PAGE BREAK--- Fiscal Year 2014 Overview On February 1,2014, the Finance Department sent out budget packages to each non-school department requesting that they prepared aFY 2014 budget based on the following: Non-personnel lines should be level serviced to reflect contractual agreements and utilities should be funded to reflect any anticipated increase or decrease in charges or use a3 year average. Personnel lines should be funded to include any step increases only. The Mayor requested that the School Department submit a LEVEL SERVICE budget based on step and line increases only. The departments were required to complete their FY 2014 Mission Statement and Goals, Budget Detail Reports, Revolving Fund budgets (if applicable) and Capital Requests. The Finance Department asked all departments to provide pictures that represented their respective departments. Many submitted great pictures which we put in the Mission Statements and throughout the budget. The FY 2014 budget requests were entered into the cities computerized system by the finance department using the figures submitted by each department. Copies of the operating budget 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. During this time, the Finance Director prepared the five year forecast, capital improvement plan for FY 2014, as well as a preliminary FY 2014 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 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. In FY 2012 the City of Salem adopted the State's Health Insurance Reform Act and the City negotiated with all unions to move all employees to the more cost effective Commonwealth of Massachusetts Group Insurance Commission (GIC) health insurance plan which has saved the City money. All union contracts were settled in FY 2013 for years 2012,2013 and20l4. The City has already started the process of negotiating new contracts for FY 2015-2011 . In April, the Cþ received State House local aid figures that we used to update the budget and determine if any changes were necessary to provide a balance budget to the Cþ Council. Local Aid Estimates decreased by $157,036 for FY 2014 and Local Aid Assessments increased by S93,975. Therefore the City will recognize a total decrease in Local Aid of $251,01 I for FY 2074. Please note that Local Aid Estimates are based on the House Final Budget figures that were available at the time the budget was submitted to the City Council. a a a Sec 3 - 2 ---PAGE BREAK--- Once the budget was balanced, the Finance Department then prepared the proposed FY 2014 budget for the Cþ Council. All information was 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 2014. 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 is expected to be held on June 7 ,2013. The FY 2014 Capital Improvement Projects were submitted to council for their review on May 9,2013. On May 23,2013, a balanced FY 2014 budget was submitted to the City Council for their review and approval. The budget was put into the Committee of Administration and Finance for their review and approval. During the months of May and June the City Council subcommittee on Administration and Finance met with each department head, Mayor, Administrative Aide, Finance Director, and Assistant Finance Director to review each departmental budget. On June 27,2013 the budget was approved by the Cþ Council Committee of the Whole. Sec 3 - 3 ---PAGE BREAK--- PROPERTY TAX 6(10I)) - A TAXPAYERS GUIDE 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 properry 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 properly 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 properfy's "full and fair cash value" on the hrst day of January prior to the December bill on which it first appears. It is important to note, that your assessed value is ayear 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 Cþ's taxable properly. 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" tzx 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 commerciaVindustrial 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. Every three years, subject to the dictates of the Commissioner of Revenue, the City is required to undergo a "recertihcation" procedure. This is commonly known as a "revaluation year". In past years, it was at this time that properly 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 properly value on the I't of January prior to the bill on which the new assessed value first appears. How is Property Value l)etermined? 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 - 4 ---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 properly sales information indicates a decline in properly value, it is important to understand that your fiscal year assessment rs based on sales information that took place more than a year before the new assessment appears on your bill. For instance, the FY20l4 assessments are meant to reflect the value of your property on January l't, 2013 and were derived from sales information obtained in calendar year 2012. They do not reflect the property's current value. The influence of the market place is always ayear 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 commerciaVindustrial proper{y 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 methodolory 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 properly 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: o Improvement to a property in the form of an addition, finished basement of attic or other alteration that would increase the properfy's market value. o A disproportionate increase in the market value of a particular section of the City when compared to another section. o 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. o Loss of taxable properly to tax exempt status thereby diminishing the tax base. . Loss of commercial/industrial properly causing a shift in the tax burden to the residential taxpayer. These factors could contribute to a decrease: o A disproportionate decrease in the market value of a particular section of the City when compared to another section. o The reduction in the value of the property as a result of an alteration made to the structure. . The deterioration ofthe property as a result ofneglect, disaster or accident. o In the case of income producing properly, either the loss of income or a change in the income expense ratio. o Reduction of a form of revenue consuming municipal service(s). o The addition to the tax base of taxable proper(y o Other forms of budget reduction. Sec 3 - 5 ---PAGE BREAK--- As you can see from the above, there are many dynamics to each tax bill. Any single factor, bttusuallv a combination o-f .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 Yr? Simply stated, Proposition 2 Vz says that a community cannot collect any more than 2 Y, Yo more than the maximum amount it was legally allowed to collect through properly 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. \ilhat is "Growth" and rWhy is it Important "Gro\ilth," when referred to by municipal officials, means property eligible for taxation this year that was not there last yèar. The reason why so much importance is attributable to the "growth figures" is that this infusion of this new found 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'. 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. During Fiscal Years 1998-2001, the total remittance amount was $8.7 million ayear. In FY 2002, this amount was reduced to $7.7 million. In FY 2003 it was again reduced to $6.7 million, and in FY 2004 -FY 2007 it was reduced to $5.025 million. Although plans for a plant upgrade were noted in the agreement and procedures for changing the remittance amount addressed, the upgrade did not occur. The impact the reduction of revenue has on the tax bill is essentially the reverse effect of growth. It was a revenue contribution that was there in previous years that is not there in the ensuing tax years. Because State aid and local receipts are determinants in the amount to be raised from property taxation, the impact does not translate to a dollar for dollar increase, but like growth, can translate to a percent or two on a tax bill. In December 2008, another 3 year agreement was made for a total remittance amount of $4.75 million. In the fall of 201 1, the Mayor negotiated a five year "Hold Harmless Agreement" with the Department of Energy Resources (DOER), the group that oversees pollution control for the enerry industry in Sec 3 - 6 ---PAGE BREAK--- Massachusetts, to keep the remittance for the Power Plant site atS4.15 million until 2016. With a known closing date of July I,2014, Dominion has shut down two of the four boilers and has planned no further upgrades to the Plant. As a result of this, the 2012 tax agreement between the City and Dominion has significantly reduced the tax revenue to $1,750,000. ln September 2012 Fooþrint Power Salem became the new o\¡/ner of the Salem Power Plant and are in the process of negotiating a conversion from coal to a new gas fired plant. They have continued to honor the same agreement that had been made with Dominion. In accordance with the "Hold Harmless Agreement", the Commonwealth will be making up the $3 million balance through the Department of Energy Resources. Summary Although a community's tax rate or rates are often a measure of comparison by one city to another, your actual tåx 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 cþ's budget and what part of those funds come from properly taxation, determine the amount property owners are asked to contribute in the form of their tax bills. The properly 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 tâx assessors can provide. Internet access to this information offers Salem's citizens and taxpayers a clear look at the statistical component of their propefty 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 - 7 ---PAGE BREAK--- WHAT IS VOTED BY CITY vs P- FY 2014 Breakdown of Tax Recapitulation rt DATE VOTED Budget Meetings June 27,2013 FY 2014 BUDGET General Fund Budget Appropriations Submitted by Mayor City School 69,396,297.00 52,553,423.00 Total General Fund Appropriations: '121,949.720.00 Enterprise Fund Appropriations Submitted by Mayor: Sewer Water Trash 6,982,171 .00 4,838,523.00 2,424,288.00 Total Enterprise Fund Appropriations 14.244.982.00 Total Budget to be voted - June 2013 (Submitted by Mayor) 136.194.702.00 Tax Rate Meeting December 201 3 Other RECAP ltems Voted at Tax Rate Setting - December 2012 Cherry Sheet Offsets Snow & lce Deficit - Estimated Overlay - Allowance for Abatements - Estimated Offset Receipts Total Other ltems on RECAP voted - December 2013 75,681.00 700,000.00 900,000.00 40,000.00 1,715,681 .00 Total REGAP Expenditures r 37.910.383.00 Regular Council Meetings June 2013 June 2013 June 2013 Other Votes By Council Revolving Funds Capital lmprovement Projects - General Fund -Capital Outlay/Grants & OFS/Bonding C;apttal lmprovement Projects - l-unds - Retatned ü 1 ,193,000.00 5,880,700.00 1,275,000.00 Sec 3 - 8 ---PAGE BREAK--- Updated 71212013 RECAP SHEET FY 2014 Budget MAYOR'S RECOMMENDED BUDGBT 72,993,129 1,824,828 675,031 RB\rENT]BS PROPERW TAXES PRIOR FISCAL YEAR LEVY LIMIT 2112% lncrease Current New Growth (Value increases from new building) IT l(from DOR lew limit sheet) Actual RECAP Real and Personal laxes LOCAL RECEIPTS MOTOR VEHICLE OTHER EXCISE (Vessel and Hotel/Motel) MEALS TAX (local options) INTEREST ON TAXES IN LIEU OF TAXES CHARGES FOR SERVICES PARKING FEES LICENSES AND PERMITS FINES AND FORFEITS INVESTMENT INCOME MISCELLANEOUS RECURRING INCOME MISCELLANEOUS NON-RECURRING INCOME 75,492,988 71,788,367 75,492,988 1,887,325 574,980 77,955,293 74,879,216 77,955,293 1,948,882 600,000 80 175 77,849,522 2,462,305 61,558 25,020 2,548,882 2,970,306 40,000 0 0 0 (14e,000) 150,000 30,000 0 140,000 5,000 0 211 3,179,764 415,653 768,032 487,843 1,440,185 1,464,056 2,274,469 499,048 1,255,894 74,956 1,198,725 3,681,252 2,960,000 410,000 750,000 403,000 1,384,835 1,050,000 2,070,000 450,000 760,000 70,000 700,000 3,184,789 3,000,000 410,000 750,000 403,000 1,235,835 1,200,000 2,100,000 450,000 900,000 75,000 700,000 3,185,000 Actual FY2012 RECAP Mayor's FYI3-FYI4 Variance 2013 Bu 2O14Bud 1 192 1 iltb. t 2 I SEWER ENTERPRISE FUND REVENUE WATER ENTERPRISE FUND REVENUE TRASH ENTERPRISE FUND REVENUE 8,090,844 4,934,151 650,000 8,783,034 5,522,061 650,000 7,797,389 5,624,959 585,000 (e85,645) 102,898 (6s,000) E OTHER REVENUES AND FINANCING SOURCES CHERRY SHEET REVENUE (pg. 2 recap llla. 1) MASSACHUSETTS SBA PAYMENTS (pg. 2 recap llla.2) FREE CASH FOR PARTICULAR PURPOSE (pg.2 recap lllc. 1) OTHER AVAILABLE FUNDS APPROPRIATED (pg. 2 recap lllc.2) FREE CASH USED FOR: 1 007 74 7 25,017,427 3,521,535 2,250,281 78,285 28J60,149 2,534,339 28,013,113 2,534,339 036) 0 0 0 0 lltb.3 2 reca 995 1 (147 Sec 3 - 9 ---PAGE BREAK--- Updated 71212013 Level the Tax Rate (pg. 2 recap llld. 1b.) OFS-To Reduce Tax Rate (pg. 2 recap llld.4) R/Res - Witch House R/Res - Golf Course R/Res - Harbormaster OFFSET RECEIPTS - Electric Dept RECAP SHEET FY 2014 Budget MAYOR'S RECOMMENDED BUDGET 1,000,000 178,757 562,722 255,563 40,000 178,757 562,171 267,178 40,000 184,632 579,794 292,800 40,000 0 5,875 17,623 25,622 0 Actual FY2012 FYI3-FYI4 Variance Mayor's 2014 RECAP 2013 Estimated State + Other Revenue 31 7 3l 678 1 1 107 Sec 3 - 10 ---PAGE BREAK--- Updated 71212013 EXPENDITURES GENERAL GOVERNMENT PUBLIC SAFETY PUBLIC WORKS AND FACILITIES HUMAN SERVICES CULTURAL AND RECREATIONAL DEBT SERVICE - GENERAL FUND INCLUDING SCHOOLS ASSESSMENT - N.S. REGIONAL VOCATIONAL SCHOOL CHERRY SHEET CHARGES (pg. 2 llc of recap) EMPLOYEE BENEFITS: SALEM RETIREMENT BOARD ASSESSMENT NON-CONTRIBUTORY PENSIONS WORKMAN'S COMPENSATION UNEMPLOYMENT COMPENSATION MEDICARE - CITY AND SCHOOL COMBINED GROUP INSURANCE - CITY & SCHOOL COMBINED ALL ACTIVES AND CITY RETIREES ALL RMT's (cherry sheet assessment in FY12 and prior) MUNI. TNSURANCE - CITY ONLY (SCHOOL rN EDU. BDGT.) NON GENERAL FUND APPROPRIATIONS (RESERVE FUNDS) c.r.P. APPROPRTATTON (TO FUND) RETIREMENT ANTICIPATION STAB FUND (City and School) HEALTH REIMBURSEMENT ACCOUNT STABILIZATION FUND Transfer to CPA Fund Salem 2026 Fund EDUCATION - CHARTER SCHOOL RECAP SHEET ßY 2014 Budget MAYOR'S RECOMMENDED BUDGET 4,296,105 16,742,270 3,285,959 882,837 2,264,062 6,679,247 1,574,316 6,390,908 8,773,800 69,474 456,641 349,378 852,215 I 1,139,834 249,689 200,000 400,000 0 0 303,000 600,000 0 0 50,000 10,000 1,060,257 (473,936) 341,453 133,727 2,240,938 (2,343,211) 14,875 (37,000) (250,000) (100,000) 0 5,008,545 17,508,361 3,349,406 963,032 2,347,595 5,513,983 1,603,586 5,510,721 9,541,857 2,343,211 302,500 340,000 850,000 100,000 0 4,802,367 18,966,567 3,609,902 1,227,257 2,433,767 5,040,047 1,945,039 5,644,448 9,526,094 74,408 870,000 300,000 832,974 11,782,795 0 317,375 (206,178) 1,458,206 260,496 264,225 86,172 9,515,8'13 72,650 435,000 356,000 797,239 10,281 1,758 435,000 (56,000) 35,735 764,000 1,011,111 49,146 City Subtotal 65,370,735 67,470,610 69,396,297 1,865,687 EDUCATION - PUBLTC SCHOOLS 48,315,381 50,508,040 52,553,423 2,045,383 Education Subtotal 48,315,381 50,508,040 52,553,423 2,045,383 Actual FY2012 RECAP 2013 Budqet Mayor's 2014 Budqet FYI3-FY14 Variance GENERAL FUND SUBTOTAL 11 68 116 I17,978,650 121,949,720 Sec 3 - 11 ---PAGE BREAK--- Updated 71212013 RECAP SHEET FY 20f4 Budget MAYOR'S RECOMMENDED BUDGET 7,266,938 4,549,422 2,734,328 SEWER FUND BUDGET (NET- COSTS) WATER FUND BUDGET COSTS) TRASH - ENTERPRISE FUND BUDGET ENTERPRISE SUBTOTAL SUBTOTAL - GENERAL FUND + ENTERPRISE FUND ADD - OTHER EXPENDITURES: OTHER - Cherry Sheet Offset (pg. 2 llbs of recap) Overlay Deficit (pg. 2 llba of recap) Snow and lce Deficit (pg. 2 llb9 of recap) Other Deficits (pS. 2 llb 10 of recap) OVERLAY (Allowance for Abatements) SUPPLEMENTAL APPROPRIATIONS (City Non-U nion/Exempt @ OFFSET Receipts From Electric Dept (A-1) From Raise and Appropriate (pg. 4 of recap - non school) From Free Cash (p9.4 of recap) From Other Available Fund (pg. 4 of recap) SUBTOTAL - OTHER EXPENDITURES TOTAL EXPENDITURES Revenue vs Expenditures (Negative represents revenue deficit) 14,550,688 14,718,773 14,244,982 16g,0g5 128,236,804 132,697,423 136,',194,702 3,497,279 75,805 25,732 592,366 926,376 40,000 421,877 2,250,281 78,285 4.410.722 132,647,526 2,460,282 7,103,476 4,804,613 2,810,684 76,024 0 0 975,349 0 40,000 I,091,373 133,788,796 1,980,734 6,982,171 4,838,523 2,424,288 75,681 0 700,000 900,000 0 40,000 1.715.681 137,910,383 (121,305) 33,910 (386,3e6) (343) 0 700,000 624,308 4,121,587 0 (75 34e) 0 0 0 0 0 0 0 Actual FY2012 RECAP 2013 Budqet Mayor's 2014 Budqet FY13-FYI4 Variance Sec 3 - 12 ---PAGE BREAK--- TAX RATE RECAPITULATION (RECAP) SUMMARY BY FISCAL YEAR FY 2004 FY 2005 Total Estimated Receipts and other revenue from RECAP Tax Levy TotalAmt Raised on REGAP Prior FY Levy Limit Amended Growth 2.5% allowable lncrease New Growth FY Lew Limit 45,554,584.87 48,228,213.77 93,782,798.64 46,837,654.00 1 ,1 70,941 .00 957,693.00 48.966,288.00 50,810,217.62 49,573,048.16 100,383,265.78 48,966,288.00 1,224,157.00 607,729.00 50.798.174.00 50,177,821.01 52,196,844.38 102,374,66s.39 50,798,174.00 1,269,954.00 929,260.00 52.997.388.00 48,511,706.39 54,374,222.56 102,885,928.95 52,997,388.00 1,324,935.00 649,519.00 54.971.842.00 48,185,227.35 56,839,329.00 105,024,s56.35 54,971,842.00 2,369.00 1,374,355.00 799,828.00 57.148.394.00 RE & PP Total Value TotalVal Equalized Value (EQV) as of 1/l 021 2 I 71 2,472,012,500.00 2,472,012,500.00 1 701 67 7 1 552 3,148,016,400.00 3,971 737 3,146,016,400.00 4.223,735,800.00 FY 2007 FY 2008 FY 2009 FY 2010 Total Estimated Receipts and other revenue from RECAP Tax Levy TotalAmt Raised on RECAP Prior FY Levy Limit Amended Growth 2.5Yo allowable I ncrease New Growth FY Levy Limit 53,975,790.62 59,292,237.61 113,268,028.23 57,148,394.00 1,428,710.00 765,627.00 59,342,731.00 51,809,151.'16 61,785,514.16 113,594,665.32 59,342,731.00 1,483,568.00 966,627.00 61,792,926.00 56,356,588.55 64,399,664.13 120,756,252.68 61,792,926.00 1,544,823.00 I ,1 03,683.00 64,441,432.00 58,037,734.88 67,095,914.09 125,133,648.97 64,441,432.00 1,611,036.00 1,332,955.00 67,385,423.00 54,079,177.26 70,082,324.62 124,16t,501.88 67,385,423.00 1,684,636.00 1 ,064,919.00 70,134,979.00 RE & PP TotalValue Ceil Total Val 174,179 341 137 4 511 107 086 4,97 1 Equalized Value (EQV) as of l/l 4.223.735.800 4.923.330.400 4.923.330.400 s.168.060.200 5.168.060.200 Sec 3 - 13 ---PAGE BREAK--- TAX RATE RECAPTTULATTON (RECAP) SUMMARY By FTSCAL YEAR FY 2011 FY 2012 FY 2013 FY 2015 Total Estimated Receipts and other revenue from RECAP Tax Levy Total Amt Raised Prior FY Levy Limit Amended Growth 2.5% allowable lncrease New Growth FY Levy Limit 55,634,447.00 72,532,236.85 128,166,683.85 70,134,978.00 1,753,374.45 1,104,777.00 72,993,129.45 61,675,449.07 71,788,366.6'1 33,463,815.69 72,993,129.45 1,824,828.24 675,031.00 75,492,988.69 61,913,527.67 74,879,216.43 136,792,74.10 75,492,988.69 1,887,324.72 574,980.00 77,955,293.10 60,143,233.00 77,658,320.00 137,801,553.00 77,955,293.40 1,948,882.34 600,000.00 80,504,175.74 RE & PP TotalValue 4 11 775 973 785 748 3 741 9 000 100 700 700 as Total Amount Raised 160,000,000.00 140,000,000.00 120,000,000.00 100,000,000.00 80,000,000.00 60,000,000.00 40,000,000.00 20,000,000.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2071 2072 2013 2074 Sec 3 - 14 ---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 hscal 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 Il2. Prop. 2 1/2 established, among several restrictions , ã "2 Yz 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, intergovemmental revenue, and miscellaneous revenue. The following pages discuss in detail the City's projections for those categories in FY 2012. 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 %that equals 2 of the total full and fair cash value of all taxable property. Lery Limit - The amount that a municipality may raise in taxes each year which is based on the prior year's limit plus 2 lrYo 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 - 15 ---PAGE BREAK--- Proposition2 % - A law which became effective on December 4, 1980. The two main components of the ta¡ law relating to property taxes are: 1 ) the tax lely cannot exceed 2 % % 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 lely allowed for the prior by more than 2 % % (except in cases of property added to the tax rolls and for valuation increases of at least 50% other than as part ofa 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. The following chart is a summary of the EQV, Tax Levy, Levy Ceiling,Levy Limit, 2 increase, and New Growth by f,rscal year Sec 3 - 16 ---PAGE BREAK--- CITY OF SALEM REVENUE SUMMARY. GENERAL & ENTERPRISE FUNDS FY 2010 FY 2011 FY 20',t2 FY 201 3 Estimated FY 2014 lncrease 7o lncrease $ FY13 vs. FY14 FY13 vs. FYl4 GENERAL FUND REAL AND PERSONAL MOTOR VEHICLE HOTEL EXCISE VESSEL EXCISE MEALS TAXES INTEREST ON TAXES IN LIEU OF TAXES CHARGES FOR SERVICES PARKING FEES LICENSES AND PERMITS FINES AND FORFEITS INVESTMENT INCOME MISCELLANEOUS INCOME MEDICAID INCOME MEDICAID PART D REIMBURSEMENT NON RECURRING 72 ,237 7'l 7 677 7 2,973,309 294,214 34,450 437,361 1,307,078 1,265,194 2,039,376 567,732 1,266,266 62,904 149,140 582,540 197,871 '1.35% 0.00% 0.00% 0.00% 0.00% -10.76% 14.29% 1.45% 0.00% 18.42% 7j4% 0.00% 0.00% 0.00% o.o1% 3,147,826 392,295 32,726 562,797 437,282 1 ,319,079 1,274,446 2,334,422 510,375 1,208,272 53,792 283,177 613,373 258,783 3,179,764 392,295 23,358 768,032 487,843 1,440,185 1,464,056 2,274,469 499,048 1,255,894 74,956 437,188 483,907 277,629 2,960,000 380,000 30,000 750,000 403,000 1,384,835 1,050,000 2,070,000 450,000 760,000 70,000 150,000 500,000 50,000 3,000,000 380,000 30,000 750,000 403,000 1,235,835 1,200,000 2,100,000 450,000 900,000 75,000 150,000 500,000 50,000 (147,8261 (12,2951 (2,726',t 't87,203 (34,282) (83,244) (74,446) (234,4221 (60,375) (308,2721 21,208 ('t33,'t77ì, (1 13,373) (208,783) 1 21,256,108 4,369,366 925,686 241,019 23,966,837 4,310,837 934,070 7 25,017,427 3,521,535 997,O42 '1.000.000 27,548,673 2,534,339 1 ,008,106 28,013,113 2,534,339 1,057,226 1.69% 0.00% 4.87% 257 324 4,046,276 (1,776,4981 123,156 789 J 1 000 TOTAL LOCAL RECEIPTS 1 1 NEÏ MA CHERRY SHEET ASST MSBA REIMBURSEMENTS R/RES REDUCE TAX RATE OFS/TRANSFERS IN INDIRECT COSTS from W&S ENTERPRISE FUND SEWER RATES SEWER TRANS/OFS 065 TOTAL OTHER RECEIPTS GENERAL FUND TOTAL '11 57 167 11 77 074 1 1 601 7.35% 1.9't% 't49,432 2 1,008,881 0 120 12'l 1 7,170,497 360 389 7,587,055 7,941,520 8,783,034 8,595,936 -2.13% AL R 7,530,885 7,587,055 7,941,520 8,783,034 8,595,936 -2.13% -10.00% -'t4.87% 1,008,881 637,1 38 258,970 896,108 (1 I 5,000) WATER RATES WATER TRANS/OFS TRASH FEES TRASH General Fund 6.19% TOTAL WATER 4,271,357 4,728,85't 4,934,150 s,272,061 5,624,959 6.69% 713,827 700,000 686,834 650,000 585,000 4,270,968 389 4.728.851 4,574,150 360,000 5,053,323 218,738 5,365,989 258,970 902 920 249 7 -13. GRAND TOTAL 124,993, 504 ,488,679 136,151,319 138,520,663 142,109,872 2.59% 10,057,529 ENTERPRISE FUND TOTAL ,I 155 1 779 1 183 -1.31% Sec 3 - 17 ---PAGE BREAK--- ESTIMATED REVENUES GENERAL FUND r sÈÈ ¡ Othcr Ræü¡cs ¡ fromw/s t% nêEnæ tx r St¡Èloel¡d ¡ NCæ¡PE ll¡lE FY 2073 r lo{dnecÊ¡pE xrß ¡ I¡Er 61t6 TOTAT s t2L,654,884 ESTIMATED REVENUES GENERAL FUND I St¡È ! OthcrÉmrE SourG ¡ ftomw/s t% XeEüæ tß I r Rêeipts tædcd t% FY 2074 r focdfeejprs t2?Í 62lx TOTAL s 125,464,689 Sec 3 - 18 ---PAGE BREAK--- ESTIi'IATED LOCAL RECEIPTS GENERAL FUND r Hn6& ¡ lnresùnent lnome I lrHl.dd Pemtts tx lncome 4X ! tledcaldÈrt Dú ¡ ÈrbIE r 2tx FY 2073 ¡ ChalEes ¡ XedsTæs 596 Servlc 7X I BoetEidse gx ¡ HotdHre * fobrvehHe 2r* Tæs TorAL 5 L4,tgz,6z4 ESTIMATED LOCAL REGEIPTS GENERAL FUND ¡ lnvesttEm ¡ x¡scl!þme I lledcaH Lrcorne atx I Fn6l ElConE ¡ llelEcs ¡ D vx tx ¡ Èrüñg ionRecr¡r'tE 27X FY 2074 9 UealsTæs 5t6 Senkes Tæs I Eoat EËse atx I HoÈlHse 3* ¡ llotorþhide 2t% gx ?x TOTAL s 14,408,835 Sec 3 - 19 ---PAGE BREAK--- GENERAL FUND REVENUE DETAIL 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, furnitwe, 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 FYl0 adjusting property values to within 90%-rc0% of market value. The City's Board of Assessors is also responsible for determining the value of personal properfy 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: l. Automatic2.5o/o Increase (Prop 2yr) - 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, which does not require any action on the part of local officials, is estimated to be $1,948,882 for FY 14. 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. In FY 14 new growth is estimated to be $600,000. 3. OverridesÆxclusions - 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 Salem for FY 13 was 577,955,293.40; however, the City only raised 574,879,216.43 in property taxes, which was approximately $3 million under the levy limit. The levy ceiling is2.5% of the valuation of the community (EQV- EqualizedValue).TheceilingforSaleminFY13was$98,180,819. ThelevylimitforFY14isestimatedtobe$80,504,175.14. Thetotalamount of revenue raised through the tax levy will be determined upon the Department of Revenue setting the tax rate in December. Sec 3 - 20 ---PAGE BREAK--- Real & Personal Property - Tax levy - The amount of taxes, special assessments, or service charges imposed by a governmental unit. Real and Personal Property - Tax Levy Sao,ooo,ooo s70 000,000 s6o,ooo,ooo Sso,ooo,æo FYO5 FYO6 FYOT FYOS FYOg FYI.O FY1l FYTZ FY13 FYT4 I EI Per Recap Estimated 4.Oo/o Revenue 56,839,329 59,292,238 61,785,514 64,399,664 67,O95,914 7O,082,325 72,532,237 71,788,366 74,879,216 77,849,522 7o Change FYl3 vs. FYl4 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Real & Personal Property - Levy Limit - The amorurt thatamunicipalþ may raise in taxes each year which is based on the prior year's limit plus 2 y2% increase on that amount plus the amotrnt certified by the State that results from "new growth". Real and Personal Property - Levy Limit I FYOs FYO6 IYOT FYOS FYOg FY1O FY1.1. FYT2 FY13 FYt4 sgo,ooo,ooo STo,ooo,ooo s60,000,000 s50,000,000 Per Recap Estimated 3.4o/o Revenue 57,148,?94 59,?42,731 61,792,926 64,44t,432 67,?85,423 7O,134,978 72,993,129 75,492,988 77,88O,?t3 80,5O4,175 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FYl3 vs. FY14 Sec 3 - 21 ---PAGE BREAK--- Motor Vehicle Excise Tax Receipts - Massachusetts General Law (MGL) Chapter 604, 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. W'e are showing a modest increase in revenue for FY 2014. Per Recap Estimated 1.4o/o Revenue 3,495,993 ?,54O,267 3,179,235 3,390,013 3,12O,4t1, 2,973,3O9 3,147,826 3,L79,764 2,960,000 3,00o,ooo FiscalYear 2005 2006 2007 2008 2009 20'lo 2011 20'12 2013 2014 % Change FY13 vs. FY14 Motor Vehicle Excise s5,ooo,0@ 54,ooo,ooo s3,ooo,o00 Sz,ooo,ooo FYOs FYO6 FYOT FYO8 FYO9 FY1O FY11 FYt2 FY13 FYL4 Sec 3 - 22 ---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 arate up to, but not exceeding, 6%o of thetotal amount of rent for each such occupancy. We anticipate no increase in FY 2014. On April 22,2010 the Cþ Council approved by a6-5 vote to pass the local options tax increases of .75yo on meals andl%o on HoteVMotels. Hotel Excise 54oo,ooo S3oo,ooo s200,000 Sloo,ooo FYO5 FYO6 FYOT FYOS FYO9 FY1O FY].l FYT2 FY13 FY14 Meals Tax - (MGL CH27 $60 and 156 of the Acts of 2009). This category was new for FY 201I as allowed by the Commonwealth of Massachusetts in FY 2010. As mentioned previously, the City Council approved a0.75o/o increase in the meals tax that is anticipated to create additional 5768,032 in FY 2012 and $750,000 in FY 2013. We anticipate no increase in FY 2014. Meals Tax 5950,ooo s700,000 5450,ooo s2oo,oo0 FYOs FYO6 FYOT FYOS FYOg FYI.O FY11 FYtz FY13 FYL4 Per Recap Estimated 1.3To Revenue 2L9,628 263,962 282,324 373,655 324,622 294,214 ?92,295 392,974 375,000 380,ooo FiscalYear 2005 2006 2007 2008 2009 20'10 2011 2012 2013 2014 % Ghange FYl3 vs. FYl4 Per Recap Estimated O.OYo Revenue 562,797 768,032 750,000 750,000 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 20'13 2014 % Change FYl3 vs. FYl4 Sec 3 - 23 ---PAGE BREAK--- Per Recap Estimated -14.3Yo Revenue 45,79O 37,277 36,203 37,876 34,23r 34,450 32,726 23,358 35,000 30,000 2014 % Ghange FYl3 vs. FY14 FiscalYear 2005 2006 2007 2008 2009 2010 20'11 2012 2013 Boat Excise - As per MGL Chapter 608 Section2,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. V/e anticipate a l4.29Yo decrease in Boat Excise in FY 2014 based on prior fiscal year averages. Boat Excise s50,000 S4o,ooo S3o,ooo 52o,ooo Slo,ooo FYO5 FYO6 FYOT FYO8 FYOg FY1O FY].l FYtz FY13 FYL4 EI Interest on Taxes - This category includes delinquent interest and penalties on all taxes and tax title accorurts. It also contains demand fees on real and personal property taxes as well as demands and wa:rants on late motor vehicle excise taxes and boat excise taxes. V/e anticipate no increase in penalties and interest in FY 2014. lnterest on Taxes 56oo,ooo 55oo,ooo 54oo,ooo s300,000 S2oo,ooo Sloo,ooo so FYOs FYO6 FYOT FYOS FYOg FY1O FYl]. FY12 FY13 FY!4 II-rI I I Per Recap Estimated 0.0% Revenue 288,874 350,651 266,246 353,952 4I2,572 437,36L 437,282 487,843 403,000 403,000 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FY13 vs. FY14 Sec 3 - 24 ---PAGE BREAK--- 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 ex¿ùmples 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 t2rA). In FY 2014 the Piquot Highlands property will be coming off of a l2l{ status and will return to ad valorem taxation. Therefore the PILOT revenue will decrease by $189,000.00. Payment ln Lieu of Taxes (PILOT) s1,50o,ooo s1,300,000 51,1oo,ooo Sgoo,ooo s700,000 s500,000 FYO5 FYO6 FYOT FYO8 FYO9 FY1O FY11 TY]-z FY13 FYT4 I T IIII Per Recap Estimated -1O.8o/o 1,319,079 1.440.185 1,384,835 r,235.835 Revenue 1,073,539 1.088,754 1.282.516 1.229,435 1.320.945 1.307,078 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Chanqe FYl3 vs. FY14 Sec 3 - 25 ---PAGE BREAK--- CHARGES FOR SERVICES / SUMMARY Seruices / 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 fun{ however police and fire administrative fees for detail work were added as a new revenue source. There have not been any new revenue sources in FY 2013. Revenues in Fiscal Year 2013 actually came in higher due to new and on-going projects including Peabody Essex Museum Phase 2, 28 Goodhue Street, Salem Hospital new electrical building. In FY 2014therc will be additional building permit revenue due to Salem Suede project starting up, continuation of PEM renovations þhases 3,4 St. Josephs Project, and the Gateway Center project. Charges for Services S2,ooo,ooo S1,5oo,ooo s1,00o,ooo Ssoo,ooo FYO5 FYO6 FYOT FYOS FYOg FY1O FY11 FYT2 FY13 FYt4 II Per Recap Estimated 14.3To Revenue L,252,787 L,L98,L82 L,923,4L4 1,619,899 L,452,r77 L,265,194 L,274,M6 L,464,056 1,050,000 1,200,000 2012 2013 2014 % Change FYl3 vs. FYl4 FiscalYear 2005 2006 2007 2008 2009 2010 2011 Sec 3 - 26 ---PAGE BREAK--- PARKING F'EES / SUMMARY 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. In FY12 the City of Salem adopted a parking study that modifies the fee structure of many key components to the parking department; including a decrease from $1.50/hr. to $.75lhr. in the Museum Place Garage and a decrease from $1.50/hr. to $.25lhr. in the South Harbor Garage. Also, the parking lot at Church Street has been reduced from $1.50 per hour to $1.00 per hour. Some of the other changes are tiered meter rates, which will charge as high as $1.50 per hour in the most active areas of the City and as low as $.25 per hour in the least active areas. These changes have affected the revenue stream in FYl3 however, time will tell if the changes are going to be positive or negative from a revenue perspective. The parking study was intended to be a budget neutral proposal so the City will be budgeting conservatively in FY13 and FY 14 for parking fee revenue. We anticipate a mode st I .45Yo increase in FY 14 due to the addition of new Smaf Meters and sensors and new Kiosks at Church and Bridge Street lots installed in the spring of FY 2013. Parking Fees 52,5oo,ooo s2,000 000 Sl,soo,ooo s1,000,000 55oo,ooo FYO5 FYO6 FYOT FYO8 FYOg FY1O FY].1 FYTZ FY13 FYL4 -EI Per Recap Estimated 1.4o/o Revenue 1,453,099 L,549,932 1,713,649 1,65r,o32 1-,694,707 2,039,379 2,334,422 2,274,469 2,O70,OOO 2,100,000 FiscalYear 2005 2006 2007 2008 2009 2010 2011 20'12 2013 2014 % Change FY13 vs. FY14 Sec 3 - 27 ---PAGE BREAK--- LICENSES AND PERMITS / SUMMARY 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 201I 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 ma:riages, births, deaths and dog registrations. Other Departmental Permits - Other Departments issue various permits including smoke detector, LP gas, firearms, and constable fees. We do not anticipate an increase in license fees although we are looking to see if increases are warranted in comparison to surrounding communities. Licenses & Permits 56oo,ooo s50o,oo0 54oo,ooo s3oo,oo0 FYO5 FYO6 FYOT FYOS FYOg FY1O FY11 FYL2 FY13 FYT4 Per Recap Estimated 0.0% Revenue 474,294 497,479 5r7,697 sto,r20 567,766 567,732 510,375 499,O48 450,000 450,000 2007 2008 2009 2010 2011 2012 2013 2014 % Change FY13 vs. FY14 FiscalYear 200s 2006 Sec 3 - 28 ---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 accognt). In FY 2012 cowt fines increased by 3lYo and we anticipate that level of revenue to continue in FY 2013 añ2014 based on increased traffrc enforcement as requested by the public as part of the Citizens Survey. As such, the City exþects revenue from fines and forfeits to increase by l8% in FY 2014 based on those factors. Fines & Forfeits s2,ooo,ooo s1,500,0()0 s1,000,000 55oo,ooo FYOs FYO6 FYOT FYO8 FYOg FY1O FY11 FY72 FY13 TYT4 Per Recap Estimated 18.4o/" Revenue 973,995 t,o84,429 t,og5,72g 1,222,170 t,296,69g r,266,266 r,2o8,272 t,255,994 760,000 900,000 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FY13 vs. FY14 Sec 3 - 29 ---PAGE BREAK--- Interest On Investments - Under Chapter 44 Section 558 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 marurer 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 Cþ Treasurer is looking to maximize our earning potential by evaluating investing options. We anticipate a slight increase in FY 14 due to the fact we are currently experiencing a higher rate of interest income in FY 2013 thanoriginally budgeted. lnterest on lnvestments S4oo,ooo 53oo,ooo S2oo,ooo Sloo,ooo So FYO5 FYO6 FYOT FYOS FYOg FY1O FY1]. IY!2 FY13 FY74 II Per Recap Estimated 7.1% Revenue L47,O55 159,031 22'-,474 321,,74L 2tt,49O 62,9O4 53,792 74,956 70,000 75,000 FiscalYear 2005 2006 2007 2008 2009 2010 201',1 2012 2013 2014 % Ghange FYl3 vs. FY14 Sec 3 - 30 ---PAGE BREAK--- MISCELLAI\EOUS REVEI\T]E . RECT]RRING Medicaid Reimbursements (SPED) - In accordance with laws and regulations goveming 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 permiued 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.) In FY 2014we anticipate no changes in SPED Medicaid. Medicaid - Reimbursement (SPED) S1,5oo,ooo s1,000,0()o 55oo,ooo 5o FYOs FYO6 FYOT FYOS FYOg FY1O FY11 FYL? FY13 FY74 Medicare Part D - Medicare Part D is part of the Medicare Modernization Act (MMA) that was signed into law onl2l8l2003. One of the key provisions of MMA was the introduction of the Medicare Prescrþion Drug Benefit (Part This subsidizes part of the cost of drug costs for retirees. However, since the City of Salem offers its employees' health insurance with prescription drug benefits that are superior to the Medicare part D benefits, we become eligible for a Medicare subsidy. This subsidy is28Yo of Rx claims between $250 and $5,000. This subsidy is designed to encourage employers to continue offering health benefits with prescrþion drug coverage that is actuarially equivalent or better than what is offered under Medicare Part D. In FY 2007 t}ire City started receiving Medicare Part D reimbursements as described above. Due to the r¡ncertainty of these revenues (including timing of receþ of revenue) we project level revenue for FY 2014. Per Recap Estimated O.Oo/o Revenue 537,213 t,3L2,OOg 1,084,628 1,3o2,599 701,390 582,54O 6t3,373 483,9O7 500,000 500,000 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FYl3 vs. FYl4 Sec 3 - 31 ---PAGE BREAK--- Per Recap Estimated O.Oo/o Revenue 26t,8Og 304,139 197,872 258,783 277,629 50,000 50,000 FiscalYear 2005 2006 2007 2008 2009 2010 20'11 20'12 2013 2014 % Change FYl3 vs. FY14 Medicare Part D s400,000 53oo,ooo 52oo,ooo s100,000 So 2OO5 FYO6 FYOT FYO8 FYOg FYI.O FY11 TY]-z FY13 FYL4 E 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 anticipate no changes for FY 2014 Miscellaneous Recurring s50o,ooo 54oo,ooo 53oo,ooo S2oo,ooo Sloo,ooo So FYO5 FYO6 FYOT FYOS FYOg FY1O FY11 FY72 FY13 FYL4 IIIIIII Ë E Per Recap Estimated 0.0% Revenue L97,246 214,069 248,9O5 168,331 2O3,694 t49,14O 283,177 437,O27 150,000 150,000 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FY13 vs. FY14 Sec 3 - 32 ---PAGE BREAK--- Miscellaneous Non-Recurring - This category is used for all one time income sources. In FY 2008 the City received $1,250,000 host fee from the Power Plant for FY 2008, $100,000 from police detail admin fees originally posted to agency fund, and $80,916.78 from Bond and Bond Anticipation Note (BAN) premiums and Accrued Interest. In FY20l I we will receive a $1,750,000 Host Fee once again from the Power Plant per a three year agreement reached between Dominion and the City of Salem. We also received $1,160,896 in bond premiums when we refinance several of our long term bonds onl0l23lll. In FY 2012, Dominion announced its closing within the next few years. Massachusetts General Law (MGL) Chapter 214, Section 33 allows for a Reimbursement for Communities Affected by the Regional Greenhouse Gas Initiative (RGGD also known as the 'Hold Harmless Agreement'. This for FY 2013 & FY 2014 amounts to approximately Three Million Dollars. The increase in the FY 2014 includes the Host fee that Fooþrint will pay per the agreement with the City. Miscellaneous Non-Recurr¡ng Revenue 54,ooo,ooo s3,ooo,ooo 52,ooo,ooo sl,ooo,ooo So FYOS FYO6 FYOT FYOS FYOg FY1O FY11 FYL2 FY13 FYT4 I II I T Estimated 6.2To Per Recap Revenue 1,292,692 53O,745 85,169 L43,84O 1,750,000 1,855,82L 2,927,676 3,68L,377 3,ooo,ooo 3,185,000 2014 % Change FYl3 vs. FY14 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sec 3 - 33 ---PAGE BREAK--- 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 pârts, 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 anumber 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: The following revenues are based on the FY 2014 House Ways and Means Local Aid Estimates that came out in April, 2013 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 FY 2014the State increased CH 70 revenue by Overall, the FY 2014 cheny sheet revenue will decreaseby -.52o/o Chapter TO s22,ü)o,ooo S2o,ooo,ooo s18,000,000 s16,000,000 Sl4ooo,ooo S12,ooo,ooo Sto,ooo,ooo ; FYO5 FYO6 FYOT FYOS FYOg FY1O FY11 FYL2 FY13 FY14 I EIII -EIIII Per Recap Estimated 0.6% t6,969,O97 18,522,267 20,759,584 20,879,459 Revenue LO,29O,73O 10,536,330 1L,648,162 L2,876,9t4 12,859,951 t4,o83,762 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Ghange FYl3 vs. FY14 Sec 3 - 34 ---PAGE BREAK--- Chapter 7O Offset - ARRA - SFSF Grant FYOs FYO6 FYOT FYOS FYOg FY1O FY11 FY72 FY13 TY74 s3,000,000 Sz,ooo,ooo St,ooo,ooo So Per Recap Estimated Revenue 3,O24,8O4 331,963 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FY13 vs. FYl4 FiscalYear 2005 Sec 3 - 35 ---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%o of the tuition increase in the first year, 609/o of the tuition increase in the second year, and 40Yo 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 9o/o 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. Charter School Reimbursement s1,200,fi)o s900,000 56oo,ooo 53oo,ooo So FYOs FYO6 FYOT FYO8 FYOg FY1O FY11 FYt2 FY13 FYT4 Lottery - Lottery formula is equalizing, with municipalities with lower property values receiving proportionately more aid then those with greater property values. The formula is based on population and Equalized Property Valuation. It should be noted that the state had to supplement $701,988.00 in order to level fund lottery aid for FY 2009 (General Fund Subsidy to Lottery). NOTE - In FY 2010 the state has eliminated the Lottery Aid, General Fund Subsidy to Lottery, and Additional Assistance revenue and replaced it with 'Unrestricted General Government Aid'. Per Recap Estimated -30.1o/o Revenue 782,35O l,l3t,2lg t,t28,3O4 835,700 856,228 753,941' 768,L78 671,726 1,,105,297 772,924 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FYl3 vs. FY14 Sec 3 - 36 ---PAGE BREAK--- Per Recap Estimated Revenue 3,582,967 4,2O4,299 5,Lg7,7gr 5,286,837 4,771,,655 2008 2009 2010 2011 2012 2013 2014 7o Ghange FYl3 vs. FYl4 FiscalYear 2005 2006 2007 Lottery s6,ooo,ooo s5,0oo,ooo s4,000,000 S¡,ooo,ooo FYO5 FYO6 FYOT FYOS FYOg FYI.O FY11 FYTZ FY13 FY74 Additional Assistance - These aid amounts cannot be attributed to any one formula or factor, but rather are the combined legacy of several factors. For detailed description go to NOTE - In FY 2010 the state has eliminated the Lottery Aid, General Fund Subsidy to Lottery, and Additional Assistance revenue and replaced it with'Unrestricted General Government Aid'. I I Per Recap Estimated 3,299,73L 2,977,292 Revenue 3,298,73L 3,298,73L 3,298,73r 2008 2009 2010 2011 2012 2013 2014 % Change FYl3 vs. FYl4 FiscalYear 2005 2006 2007 s5,000,000 s4,ooo,oo0 s3,000,000 Additional Assistance 52,ooo,ooo FYO5 FYO6 FYOT FYOS FYOg FY1O FY1]. FYT2 FY13 FYL4 Sec 3 - 37 ---PAGE BREAK--- Unrestricted General Government Aid (UGGA). In FY 2010 the state has 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 2009 figure below is a total of the three revenue sources no longer used (lottery, subsidy to lottery, & additional assistance). The FY 2013 amount is a7.79o/o increase. Unrestricted General Government A¡d Sg,ooo,ooo 56,000,ooo s3,000,000 So FYO5 FYO6 FYOT FYO8 FYO9 FY1O FYll FYT2 FY13 TYt4 Police Career Incentive - Under Chapter 4l of the Mass General Laws, members of participating police departments receive a salary increase predicated on the amount of college credits eamed toward a law enforcement degree. The Commonwealth reimbwses municipalities for one-half of this salary increase. Under the revised law, officers are awarded a ten-percent increase in their base pay for an Associate's Dégree, a twenty percent increase for a Bachelor's degree and a twenty-five percent increase for a Master's degree. In FY 2010 revenue was reduced,by 82.7%in the Senate Final Budget. This amount was again reduced by 51.2% in FY 2011 in the House budget. FY 2012 shows decrease of 48.41% due to the state reductions in this revenue source. In FY 2013 the state eliminated this funding so the City of Salem will pick up the additional costs associated with this stipend from taxes and local revenue. Per Recap Estimated 2.4% Revenue 7,749,937 6,O77,973 5,834,759 5,4rz,ggL 5,934,759 5,972,679 2006 2007 FiscalYear 2005 2008 2009 2010 2011 2012 2013 20'14 % Change FY13 vs. FYl4 Sec 3 - 38 ---PAGE BREAK--- FYO5 FYO6 FYOT FYOS FYO9 FY].o FY].1 FYL2 FY13 TYT4 Police Career lncentive Sloo,ooo So 54oo,ooo 53oo,ooo Szoo,ooo Per Recap Estimated Revenue 311,888 3L7,9L5 358,801 369,742 337,343 64,475 3L,492 L6,248 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FYl3 vs. FYl4 Veteransr 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 buriat benefits. Due to the increase in veterans filing for benefits, this revenue has increased significantly as has the veterans' benefits expense line. Veterans Benefits s¿00,000 53oo,ooo s200,000 Si.oo,ooo So FYO5 FYO6 FYOT FYO8 FYOg FY1O FYl1 TYTZ FY13 FYT4 State Owned Land - This revenue is to reimburse communities for forgone tax revenues due to certain types of tar-exempt state-owned land. Eligibility for reimbwsement depends on land use and the state agency with jurisdiction over the property as specified in the legislation. Per Recap Estimated 63.8% Revenue 44,320 1.8,960 33,t24 74,249 62,r23 93,L76 ro9,43r 153,533 202,949 332,364 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Ghange FYl3 vs. FY14 Sec 3 - 39 ---PAGE BREAK--- Per Recap Estimated O.lolo Revenue 24,ggg 3r,73O 47,443 53,007 56,834 51,200 45,L45 46,760 46,775 46,809 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FY13 vs. FYl4 State Owned Land s75,000 s50,000 525,ooo So FYOs FYO6 FYOT FYO8 FYOg FYI.O FY11 FY12 FY13 FY14 I Exemptions: Vets, Blind, Surviving Spouses, and Elderþ - The State Cheny Sheet reimburses the Cþ 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 amowÍs abated in excess of $175 of taxes of $2,000.00 in valuation times the rate, whichever is greater. Qualiffing 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 l7d, 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, qualifuing 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. Sec 3 - 40 ---PAGE BREAK--- Per Recap Estimated 1.1% Revenue 105,050 108,032 L69,737 146,8t4 138,505 L4L,292 135,493 L34,455 L34,762 136,295 FiscalYear 2005 2006 2007 2008 2009 2010 20'11 20'12 2013 2014 % Ghange FYl3 vs. FY14 Exemptions - Vets, Blind,Spouses & Elderly s200,000 S150,ooo s100,000 s5o,ooo So FYOS FYO6 IYOT FYOS FYOg FY1O FY1l FYT2 FY13 FYt4 Cherry Sheet Offsets X'or Direct Expenditure - The state provides receþs 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 Per Recap Estimated -0.70,/o Revenue 29,646 29,012 25,785 28,160 28,460 25,228 23,310 28,080 27,762 27,578 FiscalYear 2005 2006 2007 2008 2009 2010 201'l 20'12 2013 2014 % Change FYl3 vs. FY14 Per Recap Estimated -0.3% Revenue 59,837 62,921 62,504 68,080 68,080 49,196 49,934 47,725 48,262 48,103 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Ghange FYl3 vs. FYl4 Sec 3 - 41 ---PAGE BREAK--- Total Estimated Cherry Sheet Revenue (Net of Offsets) - The total of all cherry sheet revenue is as follows: Per Recap Estimated -O.íYo 22,941,994 Revenue 78,526,867 19,789,849 2L,845,O93 23,3t2,r38 24,29O,523 24,225,556 24,94L,622 28,O84,125 27,937,432 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Ghange FY13 vs. FYl4 Total Cherry Sheet Revenue (Net of Offsets) 53o,ooo,ooo s25,0ü),ooo Szo,ooo,ooo S15,ooo,ooo FYO5 FYO6 FYOT FYOS FYOg FYI.O FY11 FY72 FY13 FY14 rlr Sec 3 - 42 ---PAGE BREAK--- 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 unsotmd 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) progr¿tm. This legislation transfers responsibility for the SBA program from the Department of Education to the Massachusetts School Building Authority O{SBA), under the Office of the State Treasurer. The authorþ is a new and independent governing body comprised of seven members. The legislation tmder Chapter 210 dedicates I 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. For FY 2012 the SBA payment for old projects was reduced to $3,521,535. This was due to the elimination of for the Bentley and OLD Salem High School projects. The amount received in FY 2013 was reduced once again due to the elimination of reimbursement of $987,196.00 for the OLD Middle School 'West (now Collins Middle School) that has been paid off. The remaining projects that the City is still receiving reimbursements for are Bates ($850,966.00), Carlton ($578,710.00) and Bowditch Elementary Schools l, I 04,663.00). School Construction - School Building Authority (sBA) 56,000,ooo 54,ooo,ooo s2,000,000 FYO5 FYO6 FYOT FYO8 FYOg FY1O FYll FY12 FY1.3 FYL4 Per Recap Estimated 0.0o/o 5,L4O,3L7 5,r40,3t7 4,359,366 4,369,366 4,3rO,837 3,52r,535 2,534,339 2,534,339 Revenue 5,563,233 5,L4O,317 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Change FYl3 vs. FYl4 Sec 3 - 43 ---PAGE BREAK--- INTERGOVERNMENTAL/INTERFUND TRANSFERS Enterprise Fund Transfer - The V/ater 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 a¡e also captured in the indirect costs of the enterprise funds of the water and sewer departments. For FY 2014 an increase in indirect costs of 7.2%o projected. The Trash Enterprise Fund is not self-sustaining and therefore subsidized by the General Fund. Therefore no indirect costs are booked to the Trash Enterprise Fund. Indirect Costs are booked by a joumal entry from Ta>r Recapitulation Sheet (RECAP) when the Tax Rate is sent in December as voted by City Council. lndirect Costs From Enterprise Funds S1,8oo,mo s1,600,000 s1,4oo,ooo s1,200,000 Sl,ooo,ooo FYO5 FYO6 FYOT FYOS FYOg FY1O FY11 FYt2 FY1.3 IYT4 I E Per Recap Estimated 7.2To 1,384,O97 r,507,633 1,195,330 L,258,L6t t,3or,747 1,430,065 1,452,222 1,477,O74 1,493,991 1,601,654 Revenue 2013 2014 % Change FYl3 vs. FYl4 FiscalYear 2005 2006 2007 2008 2009 2010 2011 2012 Sec 3 - 44 ---PAGE BREAK--- OTHER FINANCIAL SOURCES Receipts Reseled for Appropriation - They City of Salem has three Receþs' Reserved for Appropriation Funds for Harbormaster, Golf Course, and V/itch 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 deparFnent 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 atthe request of the departrnent head of the Golf Course,'Witch House, or Harbormasters Office to cover unforeseen or extraordinary expenses. Receipts Reserved for Appropr¡ations 51,5oo,ooo S1,ooo ooo s500,000 So FYOS FYO6 FYOT FYOS FYOg FY1O FY11 FYT2 FY13 FY14 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 Cotmcil 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. In fiscal year 2013 we do not anticipate using any other financing sources, with the exception of the Receipts' Reserved, to balance the budget. Per Recap Estimated 4.9To Revenue 839,236 864,669 836,552 874,577 855,267 933,922 934,O70 977,O42 1,009,106 r,o57,226 FiscalYear 200s 2006 2007 2008 2009 2010 201',1 2012 2013 2014 % Ghange FYl3 vs. FYl4 Sec 3 - 45 ---PAGE BREAK--- Massachusetts Department of Revenue Division of Local Services FY2014 Local Aid Estimates SALEM Education: Chapter 70 School Transportation Charter Tuition Reimbursement Smart Growth School Reimbursement Offset Receipts: School Lunch School Choice Receiving Tuition Sub-Total, All Education ltems General Government: Unrestricted General Government Aid Annual Formula Aid Calculation Local Share of Racing Taxes Regional Public Libraries Urban Renewal Projects Veterans' Benefits State Owned Land Exemptions: Vets, Blind, Surviving Spouses & Elderly Offset Receipts: Public Libraries Sub-Total, All General Government Total Estimated Receipts FY2013 Cherry Sheet Estimate 20,759,584 0 1J05297 0 27762 0 202,949 46,775 134,762 48.262 6,267,506 28,160,149 FY2014 Governor's Budget (H1) FY2014 House Final Budget Proposal 20,879,459 0 569,826 0 27,578 0 21,476,863 5,972,679 322,364 46,809 136,295 48, I 03 6,526,250 28,003,113 21,892,643 21,413,628 0 772,924 0 27,578 0 22,214,130 5,834,758 211,761 0 0 0 326,302 46,809 136,295 48.1 03 6,604,028 29,918,158 58 0 0 0 0 7 834, 5, 0 0 0 Sec 3 - 46 ---PAGE BREAK--- FY2014 Local Aid Assessments SALEM FY2013 Cherry Sheet Estimate FY2014 Governor's Budget (H1) FY2014 House Final Budget Proposal Gounty Assessments: County Tax Suffolk County Retirement Sub-Total, Cou nty Assessments State Assessments and Charges: Retired Employees Health lnsurance Retired Teachers Health lnsurance Mosquito Control Projects Air Pollution Districts Metropolitan Area Planning Council Old Colony Planning Council RMV Non-Renewal Surcharge Sub-Total, State Assessments Transportation Authorities: MBTA Boston Metro. Transit District RegionalTransit Su b-Total, Transportation Authorities Annual Charges Against Receipts Special Education STRAP Repayments Sub-Total, Annual Charges Tuition Assessments School Choice Sending Tuition Charter School Sending Tuition Essex County Tech Sending Tuition Sub-Total, Tuition Assessments 0 0 0 0 0 0 0 0 0 0 0 40,706 10,940 13,023 0 179.760 244,429 873554 873,554 37,466 0 37,466 187,040 3,946,008 261.976 0 1,858,493 44,155 11,114 13,349 0 188.000 2,115,111 883,027 0 0 883,027 4,182 0 4,182 273,255 4,107,235 200,850 0 0 44,155 11,114 13,349 0 188,000 256,618 883,027 4,182 0 4,182 273,255 4,026,516 200,850 ,02 883 7 0 0 0 4,395,024 4,581,340 4,500,621 Total Estimated Charges 5,550,473 7,583,660 5,6M,448 For information about how the estimates were determined and what may cause them to change, click: Local Aid Estimate Proqram Summary. Sec 3 - 47 ---PAGE BREAK--- ACTUAL EXPENDED FV 2012 CITY OF SALEM, MASSACHUSETTS FY 2014 OPERATING BUDGET ADOPTED ADJUSTED DEPT BUDGET BUDGET BUDGET FY2013 FY20t3 FY 2014 FY f3 Adj vs FY 14 Budget lnc/Decr Amount Percentage GEilERAL FUND GENERAL GOVERNMENT PUBLIC SAFETY PUBLIC WORKS & FACILITIES HUMAN SERVICES CULTURAL & RECREATIONAL DEBT SERVIGE ASSESSMENTS EMPLOYEE BENEFITS MUNICIPAL INSURANCE TRANSFERS OUT OF GENERAL FUND CITY TOTAL EDUCATION.PUBLIG SCHOOLS EDUCATION TOTAL EIIÎERPRISE FUNDS SEWER WATER TRASH 64,006,736 68,104,318 68,460,060 70,392,044 69,396,297 69,396,297 936,238 1.37% 48,31 5,381 50,508,040 51 ,581 ,I 1 3 52,553,423 52,553,423 52,553,423 972310 I .89% 48,315,381 50,508,040 51,581,113 52,553,423 52,553,423 52,553,423 972,310 ',1.89o/o GENERAL FUND TOTAL 112,322,117 1r8,612,3s8 i20,04i,173 122,94s,467 121,949,t20 121p4s;20 1,goa.s4a 1.5eyo 4,296,105 16,742,270 3,285,959 882,837 2,264,062 6,679,247 7,965,224 21,641,343 249,689 7,266,938 4,549,422 2,734,328 5,008,545 17,508,361 3,349,406 963,032 2,347,595 6,496,343 7,114,307 22,713,118 302,500 2,301,111 7,103,476 4,804,613 2,810,684 5,021,509 17,983,624 3,511,206 1,236,267 2,393,713 5,794,705 7,114,307 22,801,118 302,500 2,301,111 7,128,476 4,804,613 2,810,684 4,734,638 19,361,837 3,613,248 1,229,287 2,411,482 4,979,871 7,625,576 24,095,473 317,375 2,023,257 6,990,307 4,849,009 2,465,395 4,802,367 18,966,567 3,609,902 1,227,257 2,433,767 5,040,047 7,589,487 23,386,271 317,375 2,023,257 6,982,171 4,838,523 2,424,288 (219,142) 982,944 98,696 (9,010) 40,054 (754,658) 475,180 585,153 14,875 (277,854) (146,305) 33,910 (386,396) -4.36% 5.47o/o 2.81% -0.73% 1.670/o -13.02o/o 6.68% 2.570/o 492% -12.07o/o -2.05% 0.71o/o -13.75o/o MAYOR BUDGET FY 2014 4,802,367 18,966,567 3,609,902 1,227,257 2,433,767 5,040,047 7,589,487 23386,271 317,375 2,023,257 6,982,171 4,838,523 2,424,288 CITY COUNCIL BUDGET FY 2014 ENTERPRISE FUND TOTAL GRAND TOTAL ALL FUNDS 14,550,688 14,718,773 '14,743,773 14,304,711 '14,244,992 14,244,992 (499,791) -3.39% 1 1 757 1 Sec 3 - 48 ---PAGE BREAK--- ACTUAL EXPENDED FY 2012 CITY OF SALEM, MASSACHUSETTS FY 2014 OPERATING BUDGET ADOPTED ADJUSTED DEPT BUDGET BUDGET BUDGET FY 2013 FY 2013 FY 2014 274,926 292,683 294,541 315,023 319,327 MAYOR BUDGET FY 2014 C¡TY COUNCIL BUDGET FY 2014 FY 13 Adj vs FY 14 Budget lnc/Decr Amount Percentage GENERAL GOVERNMENT: CITY COUNCIL Legislative MAYOR Executive FINANCE/AUDITING Accounting PURCHASING Purchasing Fixed Costs ASSESSORS Board ofAssessors TREASURER Treasury Services GOLLECTOR Tax Collections SOLICITOR Legal Services HUMAN RESOURCES Personnel Mts Data Processing Fixed Costs CTY CLERK Record Maintenance ELEGTION/REG ISTRATION Voting CONSERVATION Active/Passive Gonservation 159,793 172,327 172,327 172,827 175,577 175,577 345,858 382,298 382,298 446,484 462,685 462,685 3,250 1.89o/o 80,387 21.03o/o 319,327 24,786 8.42o/o 295,620 286,476 289,478 305,682 309,095 309,09s 19,617 6.78% 21 3,356 281,820 283,674 312,917 322,885 322,885 39,211 13.82o/o 202,600 208,555 214,039 214,033 215,329 2'15,329 1,290 0.60% 293,6s8 296/07 298,312 301,022 300,570 300,570 2,258 0.760/o 251,706 782,402 734,329 282,024 286,570 286,570 (447,759) -60.98% 116,421 50,798 179,716 303,253 120,716 50,726 135,477 332,116 122,570 50,726 159,477 308,1 16 123,548 56,580 175,065 358,559 124,683 56,580 188,377 358,559 124,683 56,580 188,377 358,559 2,113 5,854 28,900 50,443 1.72% 11.54% 18.12o/o 16.37% 257,863 261,030 261,873 268,900 271,981 271,981 r 0,108 3.86% 146,883 147,829 187,066 154,720 156,560 156,560 (30,506) -16.310/o PLANNING BOARD 24,676 25,857 25,857 27,949 28,426 28,426 2,569 9.94% Sec 3 - 49 ---PAGE BREAK--- ACTUAL EXPENDED FY 2012 CITY OF SALEM, MASSACHUSETTS FY 2014 OPERATING BUDGET ADOPTED ADJUSTED DEPT BUDGET BUDGET BUDGET FY20t3 FY20l3 FY 20't4 MAYOR BUDGET FY 2014 ctwcouNctl BUDGET FY 2014 FY 13 Adj vs FY 14 Budget lnc/Decr Amount Percentage Subdivision, Planning & Zoning APPEALS, BOARD OF Zoning Appeals PLANNING Planning & Gommunity Development PUBLIC PROPERTY Public Prop-Fixed Costs MARKET AND TOURIST COi'Ii'. Tourist Promotion TOTAL GENERAL GOVERNMENT 24,852 27,275 27,275 28,107 28,559 28,559 1,284 4.71% 3,262 3,550 3,550 550 550 550 (3,000) -84.51o/o 262,001 284,244 284,244 280,666 286,072 286,072 1,828 0.64% 692,509 706,882 711,882 697,107 697,107 697,107 (14,775\ -2.08% r 96,354 209,875 209,875 212,875 212,875 212,875 3,000 1 43o/o 4,296,105 5,008,545 5,021,509 4,734,638 4,802,367 4,802,367 Q19.1421 4.360/o Sec 3 - 50 ---PAGE BREAK--- ACTUAL EXPENDED FY 2012 CITY OF SALEM, MASSACHUSETTS FY 2014 OPERATING BUDGET ADOPTED ADJUSTED DEPT BUDGET BUDGET BUDGET FY2013 FY 2013 FY 2014 IIAYOR BUDGET FY 2014 ctTY couNctL BUDGET F"t 2014 FY 13 Adj vs FY 14 Budget lnc/Decr Amount Percentage PUBLIC SAFETY: POLICE Gitizen Protection FIRE Fire Suppression PUBLIC PROPERTY/BLDG INSP Building/Plumbing/Gas lnspection ELECTRICAL Electrical lnspection & Maintenance HARBORMASTER Harbormaster TOTAL PUBLIC SAFEW EDUCATION: City Public Schools TOTAL EDUCATION PUBLIC WORKS & FACILITIES: PUBLIC SERVICES Public Services-General/ParUOpen Space/Cem Snow and lce ENGINEERING Engineering-General Admin PARKING DEPARTMENT General Operations 7,988,127 8,483,732 8,732,676 9,502,153 9,308,222 9,308,222 575,546 6.59% 7,187,662 7,447,574 7,651,504 8,110,253 8,070,253 8,070,253 418,749 5 470/o 364,426 325,523 339,356 385,482 393,405 393,405 54,050 15.93% 1,005,'131 1,021,039 '1,029,595 1,115,534 944,118 944,118 (85,477\ -8.30% 196,924 230,493 230,493 248,415 250,569 250,569 20,076 8.710/o 16,742,270 17,508,361 17,983,624 19,361,837 18,966,567 18,966,567 982,944 5.47% 48,315,381 50,508,040 51,581,113 52,553,423 52,553,423 52,553,423 972,310 1.890/o 48,315,381 50,508,040 5r,58r,113 52,s53,423 52.553.423 52.553.423 972.310 1.890/0 2,182,284 339,391 2,092,158 432,335 2,240,982 432,335 2,224,421 432,335 2,225,654 432,335 2,225,654 432,335 (15,328) -0.68% 0.00% 77,448 82,361 82,361 87,454 83,938 83,938 1,577 1.91% 686,835 742,552 755,528 869,038 867,975 867,975 112,447 14.88% TOTAL PUBLIC WORKS & FACILITIES 3,285,959 3.349.406 3.51r.206 3.61 3.248 3.609.902 3.609.902 98.696 2.81o/o Sec 3 - 51 ---PAGE BREAK--- ACTUAL EXPENDED FY 2012 CITY OF SALEM, MASSACHUSETTS FY 2014 OPERATING BUDGET ADOPTED ADJUSTED DEPT BUDGET BUDGET BUDGET FY20l3 FY20l3 FY 2014 MAYOR BUDGET FY 2014 ctTY couNctL BUDGET F,f 2014 FY 13 Adj vs FY 14 Budget lnc/Decr Amount Percentage HUMAN SERVICES HEALTH, BOARD OF Administration & Support COUNCIL ON AGING Administration & Support VETERANS AGENT Administration & Support TOTAL HUMAN SERVICES CULTURAL & RECREATIONAL LIBRARY Administration & Support RECREATION Administration & Support Golf Course Witch House Winter lsland HISTORICAL COMMISSION Historic Preservation TOTAL CULTURAL & RECREATIONAL DEBT SERVICE: Long Term Debt ShortTerm Debt TOTAL DEBT SERVICE ASSESSMENTS: North Shore Regional Vocational School State Assessments (Budgeted from RECAP) 8,959 9,196 I,196 9,216 9,314 9,314 2,264,062 2,347,595 2,393,713 2,41'1,482 2,433,767 2,433,767 328,804 359,198 370,579 418,306 381,106 381,106 10,527 2.84% 260,141 285,567 287,421 291 ,558 325,916 325,916 38,495 13.39% 293,892 318,267 578,267 519,423 520,235 520,235 (58,032) -'10 04% 882,837 963,032 1,236,267 1,229,287 1,227,257 't,227,257 (9,010) -0.730/0 1,133,697 1J81þ28 1,183,485 1,191,000 1,207,830 1,207,830 24,345 2.060/o 465,710 366,459 128,877 160,361 6,641,057 38,190 1,574,316 6,390,908 491,252 362,822 138,346 164,451 1,603,586 5,510,721 496,618 401,617 138,346 164,451 5,754,908 39,797 1,603,586 5,510,721 s04,391 391,359 140p42 174,574 4,387,820 592,051 1,900,409 5,725,167 507,129 392,554 141,44'l 175,499 4,387,820 652,227 1,945,039 5,644,448 507,129 392,554 141,441 175,499 4,387,820 652,227 1,945,039 5,644,448 10,511 (e,063) 3,095 11,048 2.12o/o -2.26% 2.24% 6.72o/o -23.760/o 1538.88% 118 1.28% 40,054 1.67% 6 456 546 39 797 (1,367,088) 612,430 6,679,247 6,496,343 5.794.705 4,979.871 5.040.047 5.040.047 t754.6s8) -13.02% 341,453 133,727 21.29% 2.43o/o TOTAL ASSESSMENTS 7,965,224 7,114,307 7,114,307 7,625.576 7,589,487 7.589.487 475,180 6.68% Sec 3 - 52 ---PAGE BREAK--- ACTUAL EXPENDED FY 2012 C¡TY OF SALEM, MASSACHUSETTS FY 2014 OPERATING BUDGET ADOPTED ADJUSTED DEPT BUDGET BUDGET BUDGET FY2013 FY2013 tY 2014 TAYOR BUDGET 2014 CITY COUNCIL BUDGET FY 2014 FY f3 Ad¡ vs FY 14 Budget Inc/Decr Amount Percentage EMPLOYEE BENEFITS: Gontributory Retirement Non-contributory Pensions Workmen's Gompensation Unemployment Compensation Group lnsurance Medicare TOTAL EMPLOYEE BENEFITS MUNICIPAL INSURANCE : Municipal lnsurance TOTAL Municipal lnsurance BUDGET TRANSFERS OUT OF GF Retirement Stabilization & CIP Transfer TOTAL Budget Transferc Out of GF GENERAL FUND TOTAL 9,167,161 72,650 435,000 356,000 1 1,885,068 797,239 9,167,161 72,650 523,000 356,000 11,885,068 797,239 9,686,094 74,408 870,000 300,000 12,331,997 832,974 9,526,094 74,408 870,000 300,000 11,782,795 832,974 9,526,094 74,408 870,000 300,000 11,782,795 832,974 8,773,800 69,474 456,641 349,378 11,139,834 852,215 3s8,933 1,758 347,000 (s6,000) (102,273) 35,735 3.92% 2.42% 66.35% -15.73o/o -0.86% 4.48o/o 21,641,343 22,713,'11g 22,901,'11g 24,095,473 23,396,271 23,396,271 585,153 2.570/o 249,689 302,500 302,500 317,375 317,375 317,375 14,875 4 92o/o 249,689 302,500 302,500 317,375 317,375 317,375 14,875 4.92% 1,364,000 2,301,111 2,301,111 2,023,257 2,023,257 2,023,257 (277,854) -12.07o/o 1,364,000 2,30,1,,111 2,301,111 2,023,257 2,023,257 2,023,257 Q77.8541 113,686,117 118,612,358 120,041,173 122,915,467 121,949,720 121,949.720 1.908.548 1.59% Sec 3 - 53 ---PAGE BREAK--- ACTUAL EXPENDED FY 2012 CITY OF SALEM, MASSACHUSETTS FY 2014 OPERATING BUDGET ADOPTED ADJUSTED DEPT BUDGET BUDGET BUDGET FY2013 FY 2013 FY 2014 MAYOR BUDGET FY 2014 ctwcouNctL BUDGET FY 2011 FY 13 Ad¡ vs FY 14 Budget Inc/Decr Amount Percentage ENTERPRISE FUNDS SEWER: Sewer - Public Services Sewer - Engineering SESD Assessment Long Term Debt ShortTerm Debt Sewer - lnsurance Deduction WATER: Water-Public Services Water-Engineering Long Term Debt Short Term Debt SBWS Assessment Water - lnsurance Deduction TRASH: Trash - Engineering TOTAL SEWER 5,000 5,000 5.000 5.000 5.000 0.00% 7,266,938 7,'103,476 7,128,476 6,990,307 6,982,171 6,982,'17'l -146,305 -2.050/0 31,716 664% -4.90o/o -O.43o/o 0.00% 1.29% 4,549,422 4,804,613 4,904,613 4,949,009 4,939,523 4,939,523 33,910 0.71% 2,734,328 2,810,684 2,810,684 2,465,395 2,424,288 2,424,288 (386,396) -13.75o/o H 2]94,129 2,810,6g4 2,8'10,684 2,465,395 2,424,288 2,424,288 (386,396) Jt3.75% 14,550,688 14,719,773 14,743,773 11,304,711 14,214,992 14,24/.,992 (4gg,7gl) -3.39% 128,236,805 133,331,131 134,784,946 137,250,',t78 136,194,702 136,194,702 1,409,757 1.O5To 445,781 514,043 6,140,989 166,'125 0 0 492,341 523,937 1,130,049 0 2,403,095 0 460,255 415,858 5,962,900 259,463 500,939 524,658 1,322,701 3,000 2,4s0,815 2,500 491,769 419,596 5,962,900 249,211 3,000 2,450,815 2,500 501,39s 403,245 5,831,817 248,850 542,079 512,045 1,306,854 3,000 2,482,531 2,500 502,910 393,594 5,831,817 248,850 541,144 502,494 1,306,854 3,000 2,482,531 2,500 502,910 393,s94 5,831,817 248,850 541,144 502,494 1,306,854 3,000 2,482,531 2,500 11,141 (26,002) (131,083) (361) 33,691 (25,902\ (5,595) 2.27% -6.20% -2.2Oo/o 507 453 528 396 312 449 TOTALWATER TOTAL TRAS ENTERPRISE FUND TOTAL GRAND TOTAL ALL FUNDS Sec 3 - 54 ---PAGE BREAK--- ACTUAL EXPENDED FY 2012 CITY OF SALEM, MASSACHUSETTS FY 2014 OPERATING BUDGET ADOPTED ADJUSTED DEPT BUDGET BUDGET BUDGET FY20l3 FY20l3 FY2011 MAYOR BUDGET FY 2014 CITY COUNCIL BUDGET FY 2014 FY 13 Adj vs FY 14 Budget lnc/Decr Amount Percentage PERSONNEL & NON.PERSONNEL SUMMARIES Schools ctv Personnel 43,525,848 46,228,033 46,872,118 49,322,139 48,482,642 48,482,642 1,610,524 3 44% Non-Personnel 21 21 941 21 Total City 38,542,803 40,789,732 4'1,932,805 42,732,158 42,732,158 42,732,158 799,353 -3 TOTAL General Fund Sewer Personnel Non-Personnel Total School Personnel Non-Personnel I 718 172 957 1.91o/o 1.79o/o 113,686,117 118,612,358 120,041,172 122,945,467 121,949/20 12't,949,720 1,908,548 1.59% 419,506 438,844 449,096 466,881 466,325 466,325 17,229 3.84o/o -2.45o/o 7 b 847 6 664 632 441,267 455,284 71 465,536 483,321 482,765 482,765 17,229 -2.05o/o Water Personnel Non-Personnel 1 1 34,585 66,185 758 67,078 67,078 681 3.70o/o 0.38% 32,493 93.9s% Trash Personnel Non-Personnel 30,416 34,585 2 776 099 0 7 0 .13. 14,550,688 14,718,773 14,743,773 14,304,71'1 14,244,982 14.244.982 .498.791 -3.38% 128,236,805 133,331,131 134,784,945 137,250,178 136,194,702 136,194,702 1.409.757 1.05% 3 TOTAL Enterprise Fund GRAND TOTAL All Funds Sec 3 - 55 ---PAGE BREAK--- TOTAL ADOPTED OPERATING BUDGET ALL FUNDS t WãÞrFund 4% I SererF¡nd st* tx FY 2073 r GeneralR¡nd agx TOTAL s 133,331,131 TOTAL ADOPTED OPERATING BUDGET ALL FUNDS ¡ WaterFr¡nd t{ß ¡ Trash F¡nd 2X ¡ SererFund sx FY 2074 ¡ General Fund õ¡16 TOTAL 5 L36,194,7O2 Sec 3 - 56 ---PAGE BREAK--- ADOPTED BUDGET GENERAL FUND I Gênenl r ftbucsafety ts9É r TransfeE(ìrt u r Publkworl(s & Fadltdes r Edr¡rãüon lx I Humn Servles t% FY 2073 ¡ O¡lü¡ral& RecrealþÉl n6 lnsut?nce t Enp¡oyee Beneftts tsr'É 6% r DebtServle 5% TOTAL s 118,612,358 ADOPTED BUDGET GENERAL FUND ¡ General ¡ Plôfcsarfety 4É1.ß ¡ Pi¡blhwof*s & it% FY 2074 ¡ HüÍran 5€rYles t% I r O¡lù¡ral& ne.ÎeadoEl 2X g tlunidpel llEt¡m@ ox ¡ Employee lAssrerñ Beneflts tgx ¡ IÞbtserulæ 6* tfß TOTAL 5 121,949,720 Sec 3 - 57 ---PAGE BREAK--- ADOPTED BUDGET GENERAL FUND I ErDer¡ses zlx I Perennel ztx FY 2013 eiq Personnel Expenses TOTAT School Personnel Expenses ÏOTAt Citv & School Personnel Expenses TOTAT 46,228,O33 2L,876,285 68,104,318 40,789,732 9,7 18,308 50,s08,040 87,Ot7,765 31,594,593 118,612,3s8 ADOPTED BUDGET GENERAL FUND a E¡ger¡ses ET ¡ Èrsonn€l 75'É FY 2014 etq Personnel Expenses TOTAT School Personnel Expenses TOTAT Citv & School Personnel Expenses TOTAT 48,482,642 20,913,655 69,396,297 42,732,1s8 9,82]-,265 s2,553,42t 91,2t4,800 30,734,920 L2t,949,t20 Sec 3 - 58 ---PAGE BREAK--- Other Budgeted ltems Voted By Council Retirement Stabilization Trust Fund - Included in General Fund Budget In FY 2014 $600,000.00 is budgeted in the general fund to be transferred to the Retirement Stabilization Trust Fund. This trust fund was established in FY 2009 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. FY 2014 saw a slight decrease. Stabilization Funds - Included in General Fund Budget Due to economic conditions we will not budget any money for transfer into the Stabilization Fund in FY 2014. A stabilization fund is a fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose (MGL Ch. 40 $5B). Communities may establish one or more stabilization funds for different purposes and may appropriate into them in any year an amount not to exceed ten percent of the prior year's tax lely. We do anticipate transferring 20o/o of our certified free cash to this fund once it is certif,red by DOR in accordance with our financial policies outlined in section 6. Capital Improvement Project Special Revenue Funds - Short Term - Included in General Fund Budget In FY 2014 5303,000.00 is budgeted in the general fund to be transferred to the Capital Improvement Project Special Revenue Fund. The purpose of this fund is to fund unanticipated small capital improvement projects or equipment that are under the $25,000 limit required for CIP Bonded projects and/or equipment. Salem Community Charter School (SCCS) - City Portion - Included in General Fund Budget In FY 2014 $1,060,257 is budgeted in the general fund to be transferred to the Salem Community Charter School Special Revenue Fund. The purpose of this fund is outlined in the Superintendent's Budget Narrative in Section 4 - I. Salem 2026 - 400 Anniversary Fund- Included in General Fund Budget In FY 2014 the Mayor set up a new special revenue fund to help fund the City's 400th anniversary celebration. The Mayor anticipates putting $10,000.00 per year to help pay for events in2026. Sec 3 - 59 ---PAGE BREAK--- Transfers to CPA fund- Included in General Fund Budget In FY 2014 the Mayor will appropriate funds as part of a City appropriation to assist in CPA funding. The Mayor anticipates putting $50,000.00 in FY 2014 in this fund. They State will partially match what the City contributes based on a percentage established by the state. Revolving Funds - Separate Vote - Not in Budget The Revolving Funds were submitted to the City Council as a separate order as a supplemental part of the FY 2014 btñget process. Revolving funds were voted pursuant to the provisions of Massachusetts General Law Chapter 44, Section 538 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 httg//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 Appendix. Sec 3 - 60