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Town of Swampscott Financial Forecast Fiscal Years 201 5 – 201 9

Town of Swampscott Financial Forecast Fiscal Years 201 5 – 201 9. Tom Younger Town Administrator November 6 , 2013. Budget Pressures. Any Economic Recovery Underway is Not Yet Providing Relief for the Town’s Budget;

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Town of Swampscott Financial Forecast Fiscal Years 201 5 – 201 9

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  1. Town of SwampscottFinancial Forecast Fiscal Years 2015– 2019 Tom Younger Town Administrator November 6, 2013

  2. Budget Pressures • Any Economic Recovery Underway is Not Yet Providing Relief for the Town’s Budget; • The Chronic State Budget Crisis Continues to Impact Chapter 70 Revenues; • The Town is Controlling Discretionary Spending, However some Non-Discretionary Spending, Like Health Insurance and Pension Costs, Continue to Rise Beyond Inflation; • Creating a Viable Long-Term Capital Plan with Funds Available; • Plan for Funding OPEB (GASB 45) Prior to Being Mandated; • We Must Continue the Commitment to Increase our Reserves to “Best Practice” Levels while Eliminating our Reliance on One-Time Revenues or We will Jeopardize the Town’s Bond Rating and Cost of Capital.

  3. Five Year Financial ForecastPro Forma Assumptions - General Fund Revenues • State Aid is Projected to remain level in FY15 With a 2% Increase in FY2016 Through FY2019; • Tax Levy and Levy Limit will Grow Approximately by 2-3% Through FY2019; • Charges, Licenses, Fees and Miscellaneous Revenue Projected to Increase in FY2015 due to some major projects in town; • Reduce the Use of Free Cash to only pay for one-time costs. Additional Amounts May Need to be Used to Fund the Town’s Rainy Day Fund; • Nahant Tuition is Expected to be $1,336,046 for FY15; • Other Sources of Revenue Include: Enterprise Fund Indirects ($802,000).

  4. Five Year Financial ForecastPro Forma Assumptions - General Fund Expenses • Salaries and Operating Expenses (Including Schools) Projected to Increase 3% for FY15 through FY19; • Health Insurance Costs Projected to Increase by 5% in FY2015 and FY16 and Increase By 10% Annually through FY2019 Based on the Presumed Cost to Implement the Affordable Health Care Bill Adopted by Congress in 2010; • Due to the Funding Schedule Adopted by the Retirement Board, the Retirement Appropriation is Expected to Increase by 4% in FY2015 and 5% Each Year Thereafter; • State and County Charges and Cherry Sheet Offsets are Expected to Increase 2.5% Each Fiscal Year; • Debt Service Based Upon Current and Future Capital Improvement Programs; • The Lynn Sewer Connection was paid off in FY14.

  5. Five Year Financial ForecastRevenue and Expenditure Summary General Fund

  6. Net State Aid ComparisonFY2005-FY2014

  7. Changing Enrollment Analysis

  8. Revenue Allocationby Percentage

  9. Where do we go from here? • Increase Town Reserves • Stabilization Fund • Capital Stabilization Fund • OPEB Trust Fund • Continue General Government/School Consolidation Discussions for Improving Service Delivery; • Don’t Rush to Spend!!!

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