Town of North Smithfield

Transcription

1 Town of North Smithfield Joint Mee)ng Town Council, Town Administra9on, School Department, Budget Commi>ee February 9, 2015 Financial Analysis Prepared by: Budget Commi>ee

2 Objec9ves Town Budget Financial Analysis Ø Revenue Ø Opera9ng Expenses Ø Indebtedness Ø Capital Projects Guidance for crea9on of FY16 Town Budget 2

3 Revenue Growth Posi9ve Trending, but 3

4 FY15 Revenue Analysis FY15 Revenue Budget = $39,330,022 95% of Revenue is Current Taxes + School and State Aid 4

5 FY15 Current Taxes Analysis Tangibles Generate 20% of Tax Revenue although only represent 9% of Net Assessed Value and Motor Vehicles generate 14% although only represent 8% 5

6 Tax Revenue Source Analysis Tangible)Property)0)Personal)Property)!$160,000,000!!!$140,000,000!!!$120,000,000!!!$100,000,000!!!$80,000,000!!!$60,000,000!!!$40,000,000!!!$20,000,000!!!$#!!!!!$143,099,260!!!$113,306,820!!!$64,482,310!! FY13! FY14! FY15! Tangible!Property!#!Personal! Property! 3 out of 4 Trending Downward 6

7 Taxy Levy Movement Analysis Tax Revenue Growth Driven Solely by Tangibles 7

8 Top 10 Tangible Property Taxpayers $42.805/$1000 Es-mated Tangible Value Tax (12/31/13) % Tax Levy (12/31/14) Narraganse> Electric $97,474,110 $4,172, % Wal- Mart 3,031,661 $129, % Lowes 3,573, , % CVS 3,394, , % Praxair 2,725, ,647 (12/31/13) 1.93% Stop & Shop 2,157,830 92, % Cox Communica9ons 1,493,420 63, % City of Woonsocket 1,262,900 54, % Picor Corp 1,251,020 53, % Meadwestvaco 1,084,560 46, % Top 10 Total Tangibles è 117,448,664 5,027, % Total Net Assessed Tangible FY15 Value = $143,099,260 Total FY15 Tax Levy = $30,893, Narraganse> Electric represents = 13.5% of the Towns Tax Revenue 8

9 North Smithfield Economic Expansion Outlook FY15 FY16 FY17 Aspen Dental Walgreen Assisted Living PetSmart Texas Roadhouse Hino Truck Firestone Buffalo Wild Wings Wide World Indoor SuperCuts GNC Cellular Store Vacant Store Front Sleepy s Wide World Indoor Real Property Expansion $26,516 $106,507 $205,243 Single Family 18 ($69,206) 2 ($7,690) 13 ($49,982) Motor Vehicles 36 ($6,535) 4 ($726) 26 ($4,719) Motor Vehicle Un- Priced as of $79,504 $39,752 $39,752 Motor Vehicles Un- Assigned as of $236,153 $94,389 $94,389 Based upon informa9on received by Finance Director Feb Assump9ons 2- New Cars/home Un- Priced vehicles have no DMV value and are manually assessed Un- Assigned Vehicles are new or transfers which have not been assigned to a tax loca9on (Note Un- Assigned may be high) New Tangible Growth $25,750 $58,573 $- Abatements & SeZlements ($280,000) ($130,000) ($60,000) Added Projected Revenue $163,664 $457,636 $464,086 Approximately $920K of added Revenue over 2- years offset by Tangible Deprecia^on of the Base 9

10 Tangibles Outlook Analysis NGRID interstate Reliability Project; value is uncertain and as such impact is unknown Based upon info received By Finance Director Feb- 15 Declining Tangibles Short Term Long Term Tangibles Uncertain 10

11 Tax Revenue Risks Macro Risk Rate of Deprecia9on of Tangibles Contemplated Motor Vehicle Legisla9on Future State Appropria9ons due to State Deficit Lack of Economic Development Revenue Projec-ons Risk July 2014 Revenue Projec9on vs February 2015 Projec9on FYI15 $1,236,074 FY16 $1,677,618 Abatements $250,000 in FY15 $100,000 in FY16 $60,000 in FY17 Perceived Greater risk versus Upside 11

12 Expenditures Analysis 84% of Expenditures is comprised of School, Public Safety and Debt Services 12

13 Expenditures Analysis Note: all Town Benefits costs included in Gov t Category 67% of Town Expenditures is Labor Related Note: This excludes the NS Fire Department Contracted Services (bumps to 73%) 13

14 Opera9ng Expenses Annual Salary & Benefits increases have Compounding Effect New Labor Contracts could have significant fiscal impacts o Example (NSTA Proposed Teachers Contract) 14

15 Debt Services 15

16 Capital Budget Requests Note above graph is missing Capital Budget Requests as follows: - Sewer Department (FY18) - Water Department (FY15 through FY18 - School Department (FY16 through FY18) - Administra9on (FY16 through FY18) 16

17 Key Takeaways Not being an alarmist but instead being a realist Past performance should not be construed as indicator of future performance Not just a 1- year issue but a mul-- year issue Risk of Expenditures outpacing Revenue due to: Future Labor Contracts Declining Tangibles Uncertain State Appropria-ons given State Deficit ($200M+) Increasing Debt Services Nominal Economic Development Propose Baselining of Department Budgets/Approaches with other communi-es Fiscal irresponsibility could have long term implica-ons Recommenda-on: Proceed with Cau-on due to the uncertain-es Coopera^on & Teamwork Amongst Town Council, Town Administra^on, School Department and Budget CommiZee Essen^al 17

18 Thank you!