BUDGET WORKSHOP II For FY2019-2020 Town of Landis May 29, 2019
BUDGET WORKSHOP II
For FY2019-2020
Town of LandisMay 29, 2019
Property tax$298,100,000 tax base after revaluation (per Rowan Co.)
$1,544,382 revenue at current rate ($0.53) at 97.75% collection
Revaluation = increase of ~ $181,500 to General Fund
Each 1¢ = $29,139 in revenue at new valuation
Revenue neutral rate = 46.8¢
Staff recommendation: maintain existing rate of 53¢ per $100
Property tax
FY19 FY20 Note
Landis 53¢ 53¢ Maintain Rate
Rowan Co. 66.25¢ 66.25¢ Maintain Rate
Kannapolis 63¢ 63¢ Maintain Rate
Salisbury 71.96¢ 71.27¢ Slight Decrease
China Grove 58¢ 54¢ Revenue Neutral
Landis has & will continue to have the lowest tax rate in the area
Property taxThe need to maintain our existing rate:
Recover and rebuild our fund balance
Electric fund has traditionally subsidized low tax rate
FY20 Budget shifts significant expenses from Electric to General Fund
Increase in solid waste disposal costs / decrease in fee
Mandated increases for retirement funding
Landis growing - demand for services is increasing
Landis’ tax rate will still be lowest in Southern Rowan Co.
Avoid rate Yo-Yo
Debt service
$139,000
$170,750
$79,500
$274,000 General FundElectric FundWater FundSewer Fund
General FUND
7%9%
6%
19%
18%
25%
6%11%
Administration: $431,750Savings: $250,000Police: $1,013,000Fire: $705,550Streets: $747,950Sanitation: $238,250Recreation: $362,600Debt Service: $274,000
OVERALL
Year General LEO Landis
2019 7.75% 8.5% $143,500
2020 8.95% 9.7% $165,000
2021 10.15% 10.9% $187,000
2022 11.35% 12.10% $209,000
2023 12.45% 14.17% $233,000
Projected Employer Retirement Contribution Cost Increases
$89,500 over next 4 years, based on FY20 salaries
OVERALLHealth Insurance Costs Down
Revisited employee health plan
Same carrier (United Healthcare), new agent
Employee choice between high and low plan, with employee contribution
$73,500+ Annual savings to Town
ADMINISTRATION$250,000 General Fund balance / contingencies
$81,250 finance officer expenses (formerly in electric)
$80,000 for professional service fees (formerly in electric)
$19,000 for building maintenance & repairs
$10,000 New payroll provider contract (up from $7K)
$6,000 EMS expenses (formerly in fire)
$4,000 GIS software for planning / zoning
$2,500 Purchase of new staff chairs & filing cabinets
POLICE$1,013,000 Budget - $160,000 in pass-through funding =
$853,000 Actual town appropriation
Restores one full-time officer position / total net increase of $30,365
Provides $15,000 for holding cell, bathroom renovations, new flooring
1%18%
17% 63%
Salaries: $643,250Benefits: $173,250Operating Expenses: $181,500Capital Expenses: $15,000
POLICE
# Po
lice
Pers
onne
l
# C
alls
for S
ervi
ce
0
400
800
1200
1600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
11
9 9
11 11 11 1112 12
10 10 10 10
1,045 1,0701,150
1,086
1,2541,335 1,269
1,3681,456 1,476
1,347 1,3881,504
Calls for service up 44% since 2007; staffing 10% below 2007 levels
Fire$705,505 Budget
$128,750 Capital Expenses: $80,000 - Replacement protective gear $28,000 - Extrication tools $20,750 - Repair concrete at ladder truck bay
Provides three additional iPads with mobile data access
Salary increases for 3 lieutenants (from $41,621 to $42,500 each)
18%
25%
13%
44%Salaries: $310,750Benefits: $92,550Operating Expenses: $173,500Capital Expenses: $128,750
PUBLIC WORKSRebid trash contract - our costs are increasing $24,000 / year
No recycling - costs would have increased about $119,000 / year
Residential garbage fee decrease from $17 to $15
$350,000 for additional street paving
$80,000 Leaf Machine
$18,000 Pay adjustments for street department
$12,500 Replacement tools & diagnostic computer
$11,000 Zero-turn mower
$3,000 Replacement trimmers / blowers
$3,000 Traffic cones & barricades
PARKS & RECFunds all special events: Fall Festival - $13,400 5 Cruise-ins - $1,250 Christmas Tree lighting downtown / Christmas at the Lake - $500 End of summer pool party - $730 5 Senior luncheons / Bingo - $1,500 Parade float - $500
Other Expenses: Parks vehicle - $30,000 Repair boat launches - $2,500 Playground benches - $1,500 Pool furniture - $4,500
Water
No increase to customer rates
Town will absorb 2.9% wholesale cost increase$125,000 to contingencies / fund balance$57,500 transfer to Sewer Fund for repairs$30,000 truck replacement
SewerNo increase to customer rates
Town will absorb 1.2% wholesale cost increase$152,500 to repairs & system improvements$7,500 for sewer tap machine & jet-vac radios
Electric
Currently billing = 16 different residential electrical rates / tiers
Prices range from 14.25¢ to 10.75¢ per kWh
?
Electric
=10.5
Electric
Residential facilities charge of $20
per kWh¢
Electric
10.5¢ rate - $969,000 Decrease in electrical profits = Increase in the citizens’ pockets
Electric$171,750 to fund balance / contingencies $150,000 transfer to General fund$79,500 debt service for AMI meter loan (erroneously omitted previously)$70,000+ in savings from new credit card system$35,000 Three (3) voltage regulators for substation$30,000 in savings from cancelling lease for unused bucket truck$30,000 pickup truck replacementSignificant costs shifted to General fund
Tax rate remains unchanged, lowest in area at 53¢ per $100Residential electrical rates slashed & simplified, 10.5¢ kWh, $969K in savingsNo increases to water or sewer rates$2/month decrease in residential trash fee; no recyclingTotal of $564,000 committed to savings (across all funds)$350,000 for additional street pavingProvides firemen with updated protective gear & extrication equipmentRestores one position and funds facility updates at police departmentReplaces leaf machine & mowing equipment in street departmentAllocates $152,500 for sewer repairsReplaces substation voltage regulators
BUDGET SUMMARY
Discussion