Hamilton Town & School Budgets Hamilton Town & School Budgets - A Historical Context. - A Historical Context. Is Hamilton Spending Beyond Is Hamilton Spending Beyond its means? its means? We used to be fiscally We used to be fiscally conservative. Have we gone conservative. Have we gone crazy on town government crazy on town government spending ? spending ?
26
Embed
Hamilton Town & School Budgets - A Historical Context. Is Hamilton Spending Beyond its means? We used to be fiscally conservative. Have we gone crazy on.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Hamilton Town & School Budgets - A Hamilton Town & School Budgets - A Historical Context.Historical Context.
Is Hamilton Spending Beyond its means?Is Hamilton Spending Beyond its means?
We used to be fiscally conservative. Have We used to be fiscally conservative. Have we gone crazy on town government we gone crazy on town government
spending ?spending ?
Why Pull Together This Data?Why Pull Together This Data?Wanted to answer whether the town can afford the
quality of services we provide.
Wanted to know whether our spending was crazy & disproportionate to our historical patterns and to other town & state norms
How hard should we fight to cut costs vs how hard should we fight to raise revenue?
What long term expense growth rate is practical to for the town to sustain?
Will better facts help us fight for more state reimbursements?
Historical Context is CriticalHistorical Context is Critical Suppose it is announced that Hamilton now has 20 vehicles in the DPW? Should we applaud? Should we cry out for heads to roll? Are we apathetic?
The only way to have a handle on managing our town is to put expenses & revenue in a historical context and to establish ways to evaluate the quality of service we get for our money.
Hamilton Population 1970-2007
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
9,000
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Population (Annual Reports & Census)
Hamilton Population 1970 - 2007Hamilton Population 1970 - 2007
Hamilton School Population Hamilton School Population 1970-20071970-2007
Consistency Necessary for Consistency Necessary for Proper BenchmarkingProper Benchmarking
• Finance Committee, Treasurer’s Office, Town Clerk & School Committee should meet to standardize data presentation & catagories for proper year-to-year consistency.
• Recommend:– 3 years actual historical data– 1 year current budget– 1 year proposed budget
• Annual Reports should include all financial data from warrants since they are the book of record
• School Data must be included in Annual Reports
A database is importantA database is important
Each department should identify metrics that it thinks are important to provide its service function
(eg # Children in schools; # Police Hours; Miles Roads Plowed, Minutes to Get to Alarm calls)
Track & report those metrics to Selectmen/Public to keep and gain public confidence.
Comparative Growth RatesComparative Growth RatesAverage Residential Single Family Valuation
8.1% Appreciation Since 1988 (CAGR)
9.3% Appreciation Since 1996 (CAGR)
Median Household Income
3.1% Appreciation Since 1989 (CAGR)
Single Family Tax Bill (DOR)6.4% Tax Bill CAGR Increase Since 1988
6.8% Tax Bill Since 1996 (CAGR)
Town Government (excluding debt P&I)
6.0% Town Only CAGR Since 1986
5.7% Town Only CAGR Since 1996
Hamilton Share of Net School Budget
6.6% School Only CAGR Since 1986
7.2% School Only CAGR Since 1996
12.0% SPED CAGR Since 1996
State Personal Income Tax Growth to 2005
4.3% Appreciation Since 1996 (CAGR)
CPI Index All Urban Consumers - MetBoston3.4% CAGR Increase Since 19883.0% CAGR Since 1996
Petroleum & Petroleum Products - BLS
9.0% CAGR Increase Since 198812.2% CAGR Since 1996 (CAGR)
Private Health Benefits Index -BLI
6.9% CAGR Since 1986
6.4% CAGR Since 1996
Employment Cost Index Private Northeast -BLS
3.4% CAGR Since 2001
Is Hamilton Spending Beyond Its Means?Is Hamilton Spending Beyond Its Means?•We have the assessed valuation to support town and school budgets at ~ current levels
•The ratio of our spending to our assets has not changed much in 20+ years.
•Our income growth is likely around 3-4% CAGR
•Not all residents experience same income growth so that thay can afford tax increases.
Not spending beyond our means but that Not spending beyond our means but that does not mean everyone can afford 6.8% does not mean everyone can afford 6.8%
tax increases with income ~3-4%tax increases with income ~3-4%
Is Hamilton Spending Beyond Its Means?Is Hamilton Spending Beyond Its Means?
•Historically our debt level has been negligible for a town our size, but the debt is up slightly.
•Further research would indicate whether we have debt capacity - but should not be used to pay for operating expenses.
We used to be fiscally conservative. Have we We used to be fiscally conservative. Have we gone crazy on town government spending ?gone crazy on town government spending ?
•Town spending rates have been around 5.8 - 6.0% •School spending rates have been around 6.6 -7.2%•Very similar growth rates.•Percent allocated to schools - constant for decades
•Consolidated spending ~6.8% CAGR (since 1986) is only slightly higher than state CAGR 5.2% but we demand better services.
Not Gone CrazyNot Gone Crazy
What Growth Rates Are Possible?What Growth Rates Are Possible?
•Hard to imagine reducing long term growth rate to match state average of 5.2%.•We can hit the brakes in any one year, but too much of the budget expense catagories are out of our control.•Find sources of income that do not demand services •Commercial development will help moderate the burden to residential taxpayers - but will not generate an enormous amount of new revenue. Any bit helps.•Senior housing would also help on the margin.