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Reserves, Debt & Unfunded Liabilities Financial Policy Status Update

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Reserves, Debt & Unfunded Liabilities Financial Policy Status Update RESERVES, DEBT & UNFUNDED LIABILITIES FINANCIAL POLICY STATUS UPDATE - FYE JUNE 30, 2018 COMPARISON TARGET ACTUAL COMMENTS TARGET STATUS to PRIOR YEAR Not less than 7.5% with a Unassigned Fund Balance grew Unassigned Fund Balance - unreserved $13.78MM or 20.59% of target range of 10.0% - ~$1.1MM. $3.3MM funding of the General Fund equity comprised actual General Fund Improved, up 69BP 15% of actual budgetary Burrell School capital project is primarily of Stabilization and Free Cash budgetary expenditures expenditures planned for FY '19. Free Cash Balance - necessary Local Receipts only contributed component of sound municipal financial $3.89MM carry forward, $905K to the annual recharge vs. a management, providing budgetary $2,000,000 annual plus $2.47MM annual Declined plan of $1.5MM. Balance Sheet stability when faced with revenue "recharge" recharge for $6.37 million by $1.96MM changes drove the majority of the downturns and/or unforeseen total Recharge. expenditures 5% target continues to be General Stabilization Fund - maintained $3.67MM or 5.52% of 5% of General Fund maintained with timely to ensure debt service payments will be General Fund Operating Added $300K Operating Budget supplemental additions when ever made in a worst case financial scenario Budget needed. Capital Stabilization Fund- can be The Town intends to use the considered as part of General $2.1MM or 3.15% of balance to reduce borrowing costs Stabilization, but is intended for ongoing $100,000 minimum General Fund Operating Added $1MM on the Burrell School building capital asset maintenance and Budget project. replacement New taxable growth was certified Overlay Reserve - required by DOR for higher than plan. $1MM is $440,000, with a range of property tax exemptions and $871K intended to fund the Burrell Higher by $431K $375K to $1MM abatements School building project from Overlay Surplus. $75K for the last several FY's. $50K minimum, up to 1% Operating Reserve Fund - for $75,000, or 0.16% of the Supplemented by Town Manager of the previous year's tax Unchanged "extraordinary or unforeseen" items FY 2017 Tax Levy transfer authority and School levy bottom line autonomy. Annual Required The Town has cut it's OPEB liability Annual OPEB Appropriation - for the Contribution (ARC), as $964,069, funding at the by 57% over the last seven years- OPEB unfunded liability dedicated for Stable actuarially determined to ARC from $62.2MM in FY09 to retiree health benefits fully fund by 2038 $26.6MM in FY17. NCRS is funding at an aggressive Annual Pension Assessment - required rate despite State law changes, as Annual assessment set by by NCRS to fund both current benefits & $4,011,736 a result of the 2008 economic Increased 9.76% NCRS to fully fund by 2031 the unfunded liability meltdown, allowing less aggressive funding options. Total General Fund Excluded & Included Between 2% - 9% of $3,012,753, or 4.5% of GF Reduced by Debt Service - all annual General Fund No New Debt added in FY '18. general fund expenditures Expenses 42BP principal & interest payments Excluded Debt Service - paid by Between 2% - 7% of 2,409,100 or 3.6% of No new Excluded Debt borrowings Reduced by increasing taxes above prop 2 1/2 limits general fund Expenses GF Expenses expected in the near to mid-term 30BP (redux) by taxpayer ballot vote Included Debt Service - paid within the No new Included Debt borrowings Between 0% - 2% of $603,653 or 0.90% of Reduced by limits of prop 2 1/2 , i.e., within the expected until FY 2021 for the general fund Expenses GF Expenses 12BP (redux) operating budget Burrell School Capital Project Minimum of 50% of all Bond Maturities - the average number principal to be retired 50.3% in 7 Years Improved by of years until all Town debt is fully No new issuances in FY 2018 within 10 years, with a 65.6% in 10 Years 360BP amortized target of 60% or greater 1.46% General Obligation Debt as % of Decreased by 31BP Less than 2.5% (Debt: $48,442,522 / EQV: No new issuances in FY 2018 Equalized Property Value (redux) $3,309,738,100).
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