TOWN OF MONTREAT FISCAL YEAR 2013-2014 Annual Budget Public Hearing and Presentation to the Board of Commissioners June 13, 2013.

TOWN OF MONTREATFISCAL YEAR 2013-2014

Annual Budget

Public Hearing and Presentation to the Board of Commissioners

June 13, 2013

2013-2014 Budget Overview

• Total Budget: $2,866,305

• General Fund Budget: $2,469,955$241,765 decrease from last year

• Water Fund Budget: $396,350$96,700 decrease from last year

• Proposed Tax Rate Increase to 0.41 (Four Cents)

• One Cent on the Tax Rate Generates $23,463

• Proposed Water Rate Increase ($4.49 to $4.83 per 1,000 gallons)

• Introduction – Contains the budget message and information about the Town’s organization

• Policy Document – Gives a coherent statement of the organization-wide financial and programmatic policies and goals that address long-term concerns and issues

• Financial Plan – Describes all funds that are subject to appropriation as well as a summary of revenue sources and expenditures

The Budget is Divided into Six Sections:

• Operational Guide – Describes the activities, services and functions carried out by each department of the Town

• Capital Improvements Plan – A flexible financial planning tool that forecasts the Town’s equipment, building and infrastructure needs

• Glossary and Miscellaneous Statistics

The Budget is Divided into Six Sections:

Significant Impacts Shaping the Budget

• Capital Projects – Texas Road Paving, Texas Road Bridge, Construction of a New Town Hall and Public Works Facility, Water Storage Tank and a Vehicle

• Personnel Costs including cost of living adjustments and insurance increases

• Economic slowdown and its affect on revenues

• Proposed Tax Rate Increase

• Proposed Water Rate Increase

General FundRevenue Highlights

General Fund Revenues

• Buncombe County Revaluation – Revenue Neutral Tax Rate equals a one penny increase on tax rate.

• Board proposes an additional three penny tax rate increase to help fund much needed capital improvement projects.

• Estimated revaluation rates and real and personal property tax base growth for 2013-2014 will be just under a half percent (1/2%)

• There is a no projected growth in sales tax ($320,000) and State Shared Revenues.

• An appropriation of $202,955 from the Fund Balance will be required

General FundExpenditure Highlights

Personnel

• Cost of Living AdjustmentTwo and a half (2 1/2%) percent increase effective 7/1/13 except for the town administrator.

• Health InsuranceHealth Insurance deductible and Coinsurance increased just over 8%.

• 401(K) ContributionContinues 5 percent contribution effective 7/1/13.

• StaffingMaintains current staffing level.

• Legal and Audit Services ($48,500)• Department supplies increased to complete • Election Expense ($2,500)• Allocates $50,000 for the Interfund Transfer to

the Water Fund

Governing Board

Administration• Tax Collection Fee ($14,000)• Under M&R Equipment, $4,000 has been

budgeted for the ICS Payroll Module and $2,900 for the conversion of the Town’s email system to Microsoft 365.

Public Buildings• Utilities, Insurance and Maintenance/Repair

($55,900)

• Allocates funding for the first payment of the construction of a new town hall and public works facility ($47,805)

Police • Dispatching Services ($17,850)

Planning and Zoning• UDO Form Based Code development ($35,000)

• Allocates funding for operating and maintaining the new Geographic Information System.

Public Works• Phase II Stormwater Program and Tree

Replacement Program

Powell Bill

• Small paving project costs ($24,000)

Streets

• Street Lighting ($23,500)

• Tree removal services ($12,000) and Contract Labor for road maintenance ($4,000)

• Texas Road Paving and Stormwater Drainage Project ($194,000)

• Texas Road Bridge Project ($825,000)

• Replacement of the 1994 Truck ($45,000)

Sanitation

• Continuation of in-house sanitation services including garbage collection and disposal, recycling, yard waste and white goods pick-up and disposal ($103,600)

Environment and Recreation• Landcare Committee ($1,000)

• Native Plant Garden Construction

• Open Space Conservation Fund

Water FundRevenue Highlights

Water Fund Revenues

• Operating revenues are budgeted at $396,350

• This amount represents a $96,700 or a 19.6% decrease in revenues budgeted last year

• Assessment loan proceeds of $119,000 is budgeted for upper Kentucky

• $12,450 is appropriated from Retained Earnings

• A Water Rate increase is proposed

Water Fund Revenues

• Proposed Water Rate Increase

– Water rate per 1,000 gallons increases from $4.49 to $4.83

– Residential water access fee remains unchanged at $14.00

– Institutional water access fee for 1” lines remains unchanged at $95.00

– Institutional water access fee for 2” lines remains unchanged at $220.00

Water Fund RevenuesTown of MontreatSample Residential Bill - Present vs. Proposed Rates

Present RatesUsage (gallons) 0 1,000 5,000 10,000 Water 4.49/1000 $ - $ 4.49 $ 22.45 $ 44.90 Water 14.00/mo $ 14.00 $ 14.00 $ 14.00 $ 14.00 Sewer 5.32/1000 $ - $ 5.32 $ 26.60 $ 53.20 Sewer 11.14/mo $ 11.14 $ 11.14 $ 11.14 $ 11.14 Billing fee 0.35/mo $ 0.35 $ 0.35 $ 0.35 $ 0.35

Total bill $ 25.49 $ 35.30 $ 74.54 $ 123.59

Proposed Rates (MSD tentative)Usage (gallons) 0 1,000 5,000 10,000 Water 4.83/1000 $ - $ 4.83 $ 24.15 $ 48.30 Water 14.00/mo $ 14.00 $ 14.00 $ 14.00 $ 14.00 Sewer 5.45/1000 $ - $ 5.45 $ 27.25 $ 54.50 Sewer 11.42/mo $ 11.42 $ 11.42 $ 11.42 $ 11.42 Billing fee 0.35/mo $ 0.35 $ 0.35 $ 0.35 $ 0.35

Total bill $ 25.77 $ 36.05 $ 77.17 $ 128.57

Total Bill Difference $ 0.28 $ 0.75 $ 2.63 $ 4.98 Water Rate Difference $ - $ 0.34 $ 1.70 $ 3.40

Water FundExpenditure Highlights

Water Fund

• Water Line Replacement – Texas Road ($39,500) and Upper Kentucky ($119,000)

• Water storage facility on Greybeard – first payment - $89,150

• Debt Service Payment ($119,600) – Water Bond Payment ($37,500), ARRA Debt Service ($32,100) and Greybeard property purchase ($50,000)

• Contribution to General Fund - $73,800

Budget Calendar

• May 9 – June 13Budget Review by Board of Commissioners

• June 13Public Budget Hearing of Proposed Budget

• June 13 – June 27 Additional Time for Review and Amendments

• June 27Adoption of Final Budget

Budget Document Availability

• Filed with Town Clerk at the Town Services Building

• Regular Meetings of the Board of Commissioners

• Budget Document is available on our website at:

www.townofmontreat.org

Town of MontreatFiscal Year 2013-

2014Annual Budget

Questions?