MEMORANDUM

TO: Mayor Michaud and Saco City Council

FROM: Kevin Sutherland, City Administrator

DATE: April 6, 2016

RE: Additional Fiscal Year 2017 Budget Documents and Explanations

At the first 2017 budget presentation workshop held on April 4, 2016, Council members requested addition

information on the list of revenues. The first attached document provides a full list of all revenues for the city. The

bottom line matches Revenues found in Section 2 page 1 of the budget book (page 11 in the PDF).

In addition, a request for year-to-date budget and actual for current year was also requested. The second set of

attachments provides a new format showing the breakdown by department and budgeting units for the General Fund

through February. It also includes a memo from finance explaining those amounts with more than a $50,000

variance. Many of them have to do with the budget being a straight line (an addition 8.33% per month). In the future

we hope to provide a budget line that tracks based on past practice. It is our intention to share this on our website on

a monthly basis.

Finally, there may be some confusion over how Section 2 page 1 translates to Section 2 page 2 and I’d like to take this

opportunity to explain. On 2-1, under Revenues, is a row titled Property Taxes. Following that row to the 2016-2017

set of columns (A). Those figures provide the directive, requested (RAD) and recommended requests (REC) as well

as the sum of Directive and recommended requests or Budget for municipal and county tax (and school at last years’

amount). This number translates to the bottom line on 2-2 (B) which shows the net amount for expenditures after all

other revenues have been allocated to the department or budgeting unit leaving only the appropriation that is

supported by the property tax levy.

CITY OF SACO, MAINE Administration Kevin Sutherland, City Administrator Saco City Hall Telephone: (207) 282-4191 300 Main Street Email: KSutherland@sacomaine.gov Saco, Maine 04072-1538 Facebook: /sacomaine Twitter: @sacomaine

WORKSHOP ITEM: F Date: April 11, 2016

1

General FundFY2017 Budget

BudgetRECRADDirectiveFY2016 Budget

FY2015 Actual

FY2014 Actual

Revenues

Property Taxes

300101 -39,171,597 -577,741Taxes Committed -1,836,882 -39,749,338-37,733,758 -39,188,802-36,929,594

-39,171,597 -577,741-1,836,882 -39,749,338-37,733,758 -39,188,802-36,929,594

Non-Property Taxes

300105 -40,000 0Taxes - In Lieu 0 -40,000-58,585 -40,000-40,484

300200 -520,000 0Rapid Renewal Excise Taxes 0 -520,000-549,374 -480,000-519,195

300201 -2,700,000 0Motor Vehicle Excise 0 -2,700,000-2,996,291 -2,650,000-2,902,758

300202 -15,500 0Boat Excise 0 -15,500-15,678 -15,500-15,407

300300 -100,000 0Tax/Lien Interest 0 -100,000-134,671 -100,000-108,069

300301 -15,000 0Lien Fees 0 -15,000-17,361 -14,000-12,563

-3,390,500 00 -3,390,500-3,771,960 -3,299,500-3,598,476

Intergovernmental

300500 -35,000 0Tree Growth Tax 0 -35,000-35,448 -35,000-35,660

300501 -5,000 0Witness Fees - Police 0 -5,000-4,789 -5,000-5,175

300502 -4,000 0Other State Revenue 0 -4,000-6,059 -38,664-6,433

300503 -11,843 0State Veteran'S Exemption 0 -11,843-12,522 -12,522-15,233

300504 -990,422 0State Revenue Sharing 0 -990,422-1,058,579 -1,049,280-917,449

300505 -221,684 0Local Road Assistance 0 -221,684-219,344 -219,344-254,731

300506 -92,148 0Welfare Reimbursement 0 -92,148-84,243 -71,820-71,936

300507 -561,000 0Homestead Exemptions 0 -561,000-368,955 -370,000-370,764

300513 -271,572 0State Bete Program 0 -271,572-272,688 -272,546-198,295

300555 -55,337 0School Resource Officer Reimb 0 -55,337-55,857 -55,000-54,997

300563 0 0Fire Dept - State Revenues 0 0-56 00

300601 0 0Fema 0 00 0-20,409

300620 0 -78,772Police Grants -78,772 -78,7720 00

-2,248,006 -78,772-78,772 -2,326,778-2,118,540 -2,129,176-1,951,082

License and Permits

300250 -67,000 0City Clerk Fees 0 -67,000-71,136 -67,000-70,099

300251 -345,000 0Building Permits 0 -345,000-267,159 -320,000-248,350

300252 -267,000 0Cable Television Franchise 0 -267,000-269,818 -270,000-270,220

300253 -18,500 0Plumbing Permits 0 -18,500-16,213 -16,500-16,055

300254 -35,000 0Electrical Inspection Fees 0 -35,000-32,340 -30,000-31,163

300255 -2,654 0Snowmobile Registrations 0 -2,654-2,655 -2,654-2,635

300258 -1,450 0Other Inspection Fees/Fines 0 -1,450-13,935 -1,450-9,535

300261 -9,400 0City Clerk - Certified Copies 0 -9,400-9,446 -9,000-8,981

300262 -5,000 0City Clerk - Addl Cert Copies 0 -5,000-4,949 -4,000-4,256

300263 -1,600 0City Clerk - Burial Permits 0 -1,600-2,296 -1,600-1,638

300264 -4,750 0City Clerk - Marriage License 0 -4,750-4,532 -4,750-5,368

300400 -4,600 0Canine License Fees 0 -4,600-5,799 -4,600-5,169

300401 -9,500 0Canine Late Fees 0 -9,500-14,545 -9,500-13,250

300402 -2,500 0Canine Impound Fees 0 -2,500-2,905 -1,700-1,741

300450 -6,000 0Victualers' Licenses 0 -6,000-6,790 -6,000-6,770

-779,954 00 -779,954-724,517 -748,754-695,230

WORKSHOP ITEM: F Date: April 11, 2016

2

General FundFY2017 Budget

BudgetRECRADDirectiveFY2016 Budget

FY2015 Actual

FY2014 Actual

Charges for Services

300700 -40,000 -22,208Police General Revenues -22,208 -62,208-42,523 -40,000-31,911

300701 -57,094 0Community Policing - Thornton 0 -57,094-46,756 -54,500-53,452

300702 0 -30,000Public Works Revenues -30,000 -30,000-9,249 0-368,722

300704 -35,000 -100,000Transfer Station Fees -100,000 -135,000-35,126 -34,000-34,399

300705 -1,800 0Sewer Inspection Fees 0 -1,800-1,700 -1,800-1,650

300706 -3,000 0Street Opening Permits 0 -3,000-3,000 -3,500-11,115

300707 -3,200 0Flow Control Ordinance 0 -3,200-3,200 -3,200-3,100

300708 -900,000 0Recreation Department Fees -40,000 -900,000-917,325 -900,000-888,756

300709 -11,500 0False Alarm Fines 0 -11,500-11,450 -11,000-12,400

300710 -2,500 0Miscellaneous Fees 0 -2,500-3,625 -2,500-2,185

300711 -500 0Consent Agreements 0 -500-50 -500-200

300720 0 0Sidewalk Revenues 0 0-7,700 00

300721 0 0North Street Traffic Study 0 0-18,593 0-8,790

300726 0 0Boom Road Traffic Impact Fee 0 0-200 0-800

-1,054,594 -152,208-192,208 -1,206,802-1,100,496 -1,051,000-1,417,481

Other Revenue

300750 -17,000 0Interest Earnings 0 -17,000-16,853 -15,000-15,307

300751 -10,000 0Sale Of City Assets 0 -10,000-12,070 -100,000-103,533

300752 -55,000 0Building Rentals 0 -55,000-55,746 -55,000-39,856

300753 0 0Insurance Claims And Refund 0 0-283,046 -250,000-246,431

300754 0 0Zoning Board Revenue 0 0-100 -500-786

300755 -58,000 -10,000Planning Board & Engineering -10,000 -68,000-106,818 -60,000-104,382

300756 -15,500 0Recycled Waste & Fees 0 -15,500-11,723 -15,500-15,461

300757 -40,000 0Miscellaneous Unclass Revenues 0 -40,000-67,556 -40,000-37,888

-195,500 -10,000-10,000 -205,500-553,913 -536,000-563,642

Interfund Transfer

300951 -750,245 0Transfer In - Special Revenues 0 -750,245-931,788 -884,245-501,000

300952 0 0Transfer In - Capital Projects 0 0-55,000 0-25,000

300955 -313,200 0Transfer In - School Gen Educ 0 -313,200-337,646 -523,5370

-1,063,445 00 -1,063,445-1,324,434 -1,407,782-526,000

Use of Surplus

300800 0 -277,519Budgeted Use Of Surplus 0 -277,5190 -357,0000

0 -277,5190 -277,5190 -357,0000

-47,903,596 -1,096,240 -48,999,836-2,117,862Total Revenues -48,718,014-47,327,617-45,681,505

WORKSHOP ITEM: F Date: April 11, 2016

3

General Fund

FY2014 Year-to-Date

Actual

FY2015 Year-to-Date

Actual

FY2016 Year-to-DateBudget

FY2016 Year-to-Date

Actual

As of February 29, 2016

FY2016 Under/(Over)

Budget to Actual

Percentage

Expenditures

Administration 92,528133,601256,040223,820 41,074 %69.3

Assessment 122,452138,418115,315110,354 15,966 %88.5

Building Inspection 150,748152,922144,839140,933 2,174 %98.6

Building Maintenance 63,62870,90164,71659,869 7,273 %89.7

Capital Program 1,797,9742,337,2943,177,5361,895,841 539,320 %76.9

City Clerk 196,584205,009201,080167,950 8,425 %95.9

Contingency 149,61994,833168,197274,393 -54,785 %157.8

Council 11,15211,73311,08018,488 581 %95.0

County Budget 1,243,927829,2851,231,0181,229,217 -414,642 %150.0

Economic Development 73,756118,49900 44,743 %62.2

Finance 300,904323,735259,576223,188 22,831 %92.9

Fire 1,911,3552,008,7691,971,7931,918,711 97,414 %95.2

Fringe Benefits 2,328,2402,253,8852,201,0891,952,987 -74,355 %103.3

Fund Transfers 1,167,193733,3331,059,5200 -433,860 %159.2

Information Technology 425,138424,244383,032281,061 -894 %100.2

Parks and Recreation 1,115,3231,006,8071,085,3121,046,218 -108,516 %110.8

Planning 129,682123,845201,611194,060 -5,838 %104.7

Police 2,424,4432,465,3112,416,3562,354,252 40,868 %98.3

Public Works 3,221,3013,984,4903,381,3713,098,549 763,189 %80.8

School Budget 14,509,84814,509,84713,738,48913,441,851 0 %100.0

Solicitor 114,960100,00078,79389,527 -14,960 %115.0

Supported Agencies 580,061491,691587,731575,400 -88,371 %118.0

Unallocated 13,196183,33313,1238,986 170,137 %7.2

29,305,655 32,747,617 32,701,786Total Expenditures 32,144,012 557,774 %98.3

Revenues

Property Taxes -37,609,914-26,125,868-36,025,000-35,118,841 11,484,046 %144.0

Non-Property Taxes -2,388,267-2,199,667-2,238,367-2,182,012 188,601 %108.6

Intergovernmental -1,689,104-1,419,451-1,513,674-1,440,574 269,653 %119.0

Licenses and Permits -677,532-499,169-497,340-497,004 178,363 %135.7

Charges for Services -541,401-700,667-565,869-779,288 -159,266 %77.3

Other Revenues -277,015-357,333-333,955-446,424 -80,318 %77.5

Interfund Transfer -706,938-938,521-731,529-263,000 -231,583 %75.3

Use of Reserves 0-238,00000 -238,000 %0.0

-40,727,143 -41,905,733 -32,478,676Total Revenues -43,890,171 11,411,495 %135.1

%-52.611,969,269-11,746,160223,110-9,158,116-11,421,488General Fund Total

WORKSHOP ITEM: F Date: April 11, 2016

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City of Saco

Tel: (207) 282-1032 Fax: (207) 282-8209

cheryl.fournier@sacomaine.org

Finance Office

Cheryl Fournier, Finance Director Saco City Hall 300 Main Street, Saco, ME 04072

Page 1 of 2

April 5, 2016

To: Honorable Mayor and all City Councilors

From: Cheryl Fournier, Finance Director

Attached is the FY2016 City budget-to-actual comparison. This is the first month of the new format for budget to actual comparisons. It follows the same format of budget process to help with continuity. All items that are over or under budget by $50,000 will have explanations. The significant variances as of February 29, 2016 are as follows (66.7% of the year is complete):

A. Capital Program is running at 76.9% of the year-to-date budget or $539,320 below budget. The primary reason is that many capital projects will get completed in the spring, and is expected to come in at budget.

B. Contingency is running at 157.8% of the year-to-date budget or $54,785 over budget. The primary reason is that Tax Abatements are running at 231.9% of budget or $43,976 above budget year-to-date.

C. County Budget is running over budget; however, we pay 100% of our amount due to County in the September each year. This will be at budget at yearend.

D. Fire Department is 95.2% of year-to-date budget or $97,414 below budget. The primary reason is that salaries are running at 96.4% of budget or $50,362 below budget. The operating expenses are running below budget, many accounts slightly below budget. The secondary reason is that Equipment is running at 54.4% of budget or $31,018 below budget.

E. Fringe Benefits is at 103.3% of year-to-date budget or $74,355 above budget. The primary reason is that Health Insurance is at 106.7% of year-to-date budget or $73,742 above budget.

F. Funds Transfers is running over budget; however, it will be at budget at yearend. The whole amount for the year is post at one time.

G. Parks and Recreation is at 110.8% of year-to-date budget or $108,516 above budget. The primary reason is that program expenses are running at 157.4% of year-to-date budget or $40,253 above budget due to seasonality. The secondary reason is that salary and wages are running at 104.6% of budget or $34,176 above budget due to seasonality. Municipal Grounds & Recreation revenue is also running at 75.7% of year-to-date budget or $145,595 below budget.

H. Public Works is at 80.8% of year-to-date budget or $763,189 below budget. The primary reason is that capital and debt service (paving) is $329,145 below budget; however, the spring will begin the project completions. The secondary reason is that program expenses (waste disposal) are 82.9% of budget or $125,379 below budget. Another reason is that personnel costs are $91,984 due to turnover and the light winter season.

I. Supported Agencies is at 118.0% of year-to-date budget or $88,371 above budget. The primary reason is that the transit expense is at 100% and Dyer Library has an extra month of expense.

WORKSHOP ITEM: F Date: April 11, 2016

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CITY OF SACO – FY2016 Budget-to-actual comparison through 02/29/2016 continued

Page 2 of 2

J. Unallocated is 7.2% of year-to-date budget or $170,137 below budget. The primary reason is that our insurances renew in March.

K. Property Taxes is running at 144.0% of year-to-date budget due to seasonality due dates in August and February.

L. Non-Property Taxes (Excise, Taxes in Lieu, Interest/Fees) is running at 108.6% of year-to-date budget or $188,601 above budget. The primary reason is that EAN (Enterprise) is at $114,620 for FY2016.

M. Intergovernmental is running at 119.0% of year-to-date budget or $269,653 above budget. The primary reason is that state revenue sharing is at 106.3%, local road assistance is at 151.6%, tree growth tax is at 159.4%, BETE program is at 149.4%, and homestead is at 117.6%.

N. Licenses and Permits is running at 135.7% of year-to-date budget or $178,363 above budget. The primary reason is that the Building Inspection permits is running at 161.9% of budget or $151,253 above budget.

O. Charges for Services is running at 77.3% of year-to-date budget or $159,266 below budget. The primary reason is recreation revenue is at 75.7% of budget or $145,595 below budget. Recreation revenue is currently only running $20,000 behind last year at this time.

P. Other Revenues is running at 77.5% of year-to-date budget or $80,318 below budget. The primary reason is that miscellaneous revenue is running $44,178 below budget due to an adjustment from prior year. Sale of City Assets is running $25,254 below budget.

Q. Interfund Transfer is running 75.3% of year-to-date budget or $231,583 below budget. These items are posted quarterly.

R. Use of Reserves is a budget balancing estimate of the use of fund balance, and nothing will be posted during the year.

The City staff has continued to maintain a high quality of service for our citizens, and look forward to continuing this high quality in the future.

WORKSHOP ITEM: F Date: April 11, 2016

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A

WORKSHOP ITEM: F Date: April 11, 2016

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B

WORKSHOP ITEM: F Date: April 11, 2016

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