Proposed 2018-2019 Village of Hastings-on-Hudson Budget

VILLAGE OF HASTINGS-ON-HUDSON

Proposed 2018-2019 Village of Hastings-on-Hudson Budget

March 9, 2018

Dear Mayor Swiderski and Honorable Board of Trustees:

I hereby submit for Board of Trustees consideration the 2018/19 Village Manager’s General Fund proposed budget that totals $15,793,974. At this spending level, a tax rate of $6.25 is required. That represents a 5.65% tax levy increase. The Village property value assessments are estimated to reach $1,807,216,149. This budget, if adopted unchanged, would require a tax levy of $11,292,940. The budget is in compliance with state law setting the levy because of the unused tax levy capacity carried forward from this year’s tax levy and assessment growth. Under these regulations, Hastings-on-Hudson’s tax levy is allowed to reach $11,525,284.

This budget reflects the application of the 2017 Town assessment roll. This is the second year in which the Village has relinquished its property assessment function and now relies upon the values resulting from the town wide revaluation. Establishing the tax rate is dependent upon several factors which are beyond the Village’s control. For example, this budget relies upon the assessment roll which includes the first year of the phase-in of those properties assessed which qualified under the re-evaluation abatement program. Most properties do include the statistical increase in value which was established by the Town Assessor last summer. The budget relies upon the best estimated values reflective of the settlement of small claims as of February 27, 2018.

The general fund budget totals of $15,793,974 (includes the library fund in the amount of $883,938). This budget proposal represents a 4.5% increase over the current year adjusted budget of $15,108,847. The functional breakdown of the expenditure and revenue statements for the proposed FY19 budget is contained in a series of exhibits in the complete budget document. For a taxpayer with a home assessed at $668,173 (average assessment), this spending plan would require a $174.00 annual property tax increase.

Revenues

The budget reflects a projection that State, County and local revenues have stabilized and we probably will not experience the increases like the last two budget cycles. We believe sales tax revenue is flat and will hold at $1,300,000. Building permits are projected to decline by $25,000 from the current year. Parking permits and meter revenue will increase due to adjustment to those charges during FY18. The mortgage tax is anticipated to increase to reach $235,000 due to the continuation of strong home sales. All other revenues are projected to remain at FY18 year-end levels.

The Village’s outside independent auditor has affirmed the unassigned fund balance as of May 31, 2017 at $1,808,458. This demonstrates steps taken to increase the fund balance to guard against future unanticipated expenses. This budget does not require a budgetary transfer from the fund balance to the operating budget. The Board of Trustees funded the capital reserve fund from the unassigned fund balance last year. This payment placed in the reserve, will be available for off-setting capital equipment or project funding requirements. The goal is to have available surplus funds to reduce the dependence upon the need to borrow money to pay for equipment or projects. Municipal credit rating agencies require a greater percentage in a reserve fund and while that is the ultimate goal, we are working to increase the fund incrementally.

The approach to revenue development will continue to be cautious and conservative. It is risky to project locally generated revenues aggressively. The danger of revenues falling short causing a deficit position is too great a danger to pursue a policy of over optimistic revenue projections.

The State of New York Comptroller’s Office has developed a matrix to determine the level of fiscal health among municipalities. Hastings-on-Hudson has been categorized with a low fiscal stress score which is good. The area we need to show continuing improvement is the ratio of fund balance to operating budget. Additionally, Moody’s Investor Services (Village rating of Aa3), as part of their continuing monitoring of local government financial conditions, in their most recent annual comment on the Village finances indicated that despite the moderately sized tax base, light debt burden, a mid-range pension liability and reflects a favorable financial position. They did caution, however, that the governmental operations are approximately breakeven, but has a balance financial operation indicating sound financial management.

Expenditures

As noted, the budget continues the delivery of municipal services which Village taxpayers expect. Staff went about the process of developing next year’s spending plan with a sensitivity to maintain a low property tax rate increase. Improved productivity and enhanced delivery of services has been and will continue to be the commitment of Village municipal employees.

Toward that goal, the operating budget reflects an overall increase of $685,127 or stated another way a 4.5% increase when measured against the FY17 adjusted budget. We have been able to keep that increase low while addressing necessary personnel and capital outlay needs because of growth in the assessed values and stable non-property tax revenues.

The budget reflects the reestablishment of the street sweeper program, funding for engineering and planning services, procurement of a playground apparatus at the Uniontown Park, other improvements in public parks, and increases in health care coverages.

Police Department

Contained in the operating budget capital overlay is the purchase of one (1) truck mounted plate reader, two cameras ($11,500).

Utilities:

Costs continue to be a matter for concern. We have been instructed to anticipate a 9.5% overall cost increase for both the purchase of electricity and the delivery charge. The cost for natural gas to heat Village facilities is anticipated to remain stable. While motor fuel and engine lubricants costs have increased of late, there is still uncertainty as to what we can anticipate in terms of the product cost during the term of the fiscal year.

Personnel Costs

This budget reflects a reduced obligation in the amount required to contribute to the employee pension plan. This plan administered by the State of New York when considered in combination with the Length of Service Award Program provided to the Village volunteer firemen has seen increases over past fiscal years. We have been advised to plan for an 8.5% increase in the cost to provide medical/dental healthcare insurance coverage. That also reflects a smaller cost rise than we have experienced in recent budget cycles (the healthcare rate increase was 12% on January 1, 2018). The budget reflects proposed wage settlements for the police officers and for the DPW employee group and recommends a similar cost-of-living increase for the non-union employees.

Debt Service

The Village total debt includes library and pool service payment ($985,904) remains stable with the addition of the payment for a serial bond ($3,473,300) soon to be issued to cover the cost of heavy equipment, capital projects, road resurfacing, and firefighting apparatus purchased in FY16.

Contingency Account.

Traditionally, the Village has maintained a small contingency account within the general fund budget. This year the contingency account ($147,000) includes tax certiorari settlements and salary adjustments.

Closing Comments

I want to close this letter of transmittal by thanking the department heads for the conscientious manner they went about in the preparation of the department budgets. They are the front-line in the delivery of public services and are in the best position to recommend the level of funding necessary to continue the mission of their operation. The management team stands ready to present this budget during the scheduled public hearing to be held April 3, 2018. We also look forward to the examination by the Board of Trustees during scheduled budget workshops leading up to adoption budget no later than April 30, 2018.

On behalf of Village employees, I wish to thank the Trustees for their support by providing the necessary resources to provide the highest level of public service to the Village residents.

Very truly yours,

Francis A. Frobel

Village Manager

Villagemanager@hastingsgov.org

Proposed 2018-2019 Village of Hastings-on-Hudson Budget

Up Coming Budget Work Sessions

7PM Orr Room Hastings Public Library

Thursday, March 22, 2018

Tuesday, March 27, 2018

Thursday, March 29, 2018

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Village of Hastings-on-Hudson