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
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