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North Adams Proposition 2 % Ballot Question Meeting Introduction During my campaign | promised financial integrity. National, state and local economic events throughout this recession have resulted in our current fiscal dilemma. Over the past 4 years, cuts coupled with prudent increases in revenue could have put us in a different position then we are in today. Utilization of reserves to balance budgets long term is merely a quick fix and not a solution. 5/24/2011 What Is An Override? * Very simply, it is an increase in the amount the city can levy in taxes above and beyond its maximum levy limit. * In our case, the additional revenue would be used to balance the FY2012 budget and provide consistent public and school services. * An override would be a one time fix that would then allow us to better manage future budgets April, 2014 ~ Mass Dept of Revenue ~ Financial Management Review “Upon taking office the new mayor was faced with two substantial fiscal ssues..the Underfunded medical insurance trust and the second issue being the budget.” July, 2020 ~ Mass Dept of Revenue ~ Director of Accounts “feel compelled to comment briefly on your FY2012 positions. The city i using ‘approximately $1.2M in one time revenues to balance the FY11 budget. The loss ofthis revenue coupled with an unknown financial future in local ad should be of concern to the ‘and thus efforts should be made in the FY2012 budget process to adres this.” FY2010 Ausit - Scanlon & Associates “The practice of using non-recurring reserves to fund recurring expenditures and utilizing cocelpts reserved in excess of amounts collected will havea financial Impact onthe city.” Standard & Poors ~ Bond Rating Agency - May, 2011 ~ Credit analysis questions Was the City able to remedy the structural imbalance in the FY2011 budget? - My response was the following. "The Cty is currently cutting its budget but is facing a $1.2M deficit. | am cornmited to re-building the fiscal health of the community and will not commit depleted reserves to the budget. Furthermore, the DOR has cautioned me to not tiie reserves but rather stay focused on building reserves as a way to strengthen the financial condition ofthe Cty. With that, | have placed a Proposition 2% question on ballot forJune 24, 2031 asking for an override of $1.2M to balance the budget. ifthe question does not pass, | wil be forced to make significant cuts to city departments and staggering ‘cuts tothe school system.” 5/24/2011 Free Cash 2008-2011 Over the past 4 years we have used nearly all of our reserves to fund operating expenses 1's like paying your mortgage with your savings account, sooner or later you run ut and you either have to find more income or sell the house... do not want to sell the houselll ‘Acity in good financial health has 6% of their budget in reserves, we have .015% In Dec 2009 More than $1.8M was transferred from reserves to pay bills. This fiscal year through special legislation, we utilized $1.2M to balance the budget. ‘Average Tax Bll After Override + North Adams currently enjoys one of the lowest tax bills in the state + This will NOT change, even with override + North Adams’ average tax bill will still be lower that surrounding and comparable communities + The average single family home valued at $134,500 would increase by $230 annually...$4.42 weekly 5/24/2011 ‘Average Tax > alll of POP esse? + North Adams has a higher than average population of low-income residents + Asa percentage of average single family household median income, your tax ill, after an override will stil be lower than surrounding and. comparable communities. 8 % of Single Family Median Income Reductions in State Aid 2009-2012 + For too long we have relied heavily on state aid to balance our budget and the state can no longer provide levels of funding we once knew, + Im F¥2009 State Aid represented 53% of our overall revenues. + This current budget year State Aid is only 45% of our overall revenues, some $3.2 milion less. ‘+ We have held this problem at bay by using reserves...the reserves are gone, 5/24/2011 Successful Prop 2 % override would fund budget as built however would include the following cuts. rveuts—rraniz scoot curs-rrm12 ermine of Pb Safety $64.00 BS Tenchers ‘ASS ulng sper $4 000, 2fultime sds Seetisan 22500 Seeneer site ‘amin eer $29 000 3 poraprtesionas ‘PT poston $20,000 technology aff eon rar postn $5 00 “ote tocar ave hncing pensar $7000, (sore locton of rena ttl $785,500, Gene res .0 Total Reduction In Budget - $143,800 (aur expenses $4300 Pyrl Gare $1300, ‘001 CHOICE MONEY $360,000 19 F228 Fumbig specter $900 il eased rene yertoprerere an in Fort Maltenance $10.00 ‘eveesinbots Fest Yeats ‘Dora praetor atts) $30.00 Board pode $5000 Spel tucaon eter scout cety ‘Total cuts - $360,000 Uuncerfunded ad th emaning bare of eh! Leveled oor det payment thu rafiancig Choc bel nvr forth purpose 7 potas il and parttime esuing impact “Cound Salar and expense wiped “orf elementary figs lange “tow Stpende “uss dso soporte 1 emce n reaucton "Pee and Totem dae I Spc easeon seat ‘Reduced antennas “ou ofA en honors Spansh Plan B: Cuts If Override Fails City Cuts Inaeion the $5809 proposed ts: Elman of? sions gestions = Ipactng publ sae, eves, and ty Ha -$19800 ‘Twoweek mandatary tuoush feral aonionempayes $7,000, 1 heduton nase Beco $5.000, 1 Medion noo secre 57300 Sedition nYouth Rater 3000 eduction nan Sees 33500, ‘Total Overall Cuts - $714,000 Fore Renting not Retin i ys win ety parent ‘+ educs pote respons ine due te ection cet on NAS —es poe on rl hits and ‘weetengs huge pest concer= mere cvrine eens + Meduced OPW ales eecive response wate and sever ets, ont wal fr basin rept, ect ‘maetenance, grass ating long = Ting ke sor cai on eet properties on ung wate fom isomer iro rgorbe wnt + ployee raw be very potent omer esr nthe ae il prove es Rett te handle budget short erergnces egution nour srt low fo fnetcmmnsty evs "Mandatory ough wee dona unecesar ers 0 employes and eents cy sondees le rsucedtaunacrgtte eet 5/24/2011. Plan B: Cuts If Override Fails School System Cuts Imadeltion to the $143,800 in proposed cuts the following wil all be consider + A-Sehoo! Adjustments Counselor + ATeam Leaders ll Head Teachers + Institution of thetic eas. offered Music Teacher Loan Teacher Elmina Ubrerian {1=Student support center staff person + Eliminate year round guidance paraprofessional + minate Drama + Ciminae uvenile Resource Center (RC program ‘lose Community Transtion Program at Johnson ~frvinatng # staff Fee for pre and Kindergarten Reduce Kindergarten to half day inate Career Specialist Plan B: Cuts After Unsuccessful Override: School System Cuts: Possible Impact + Proposed ut wou change te eof he NAPS ory of recur eis woul be spiny reduced or elmnatee spots, musi od rama {Atta programs ino the Aerie Soa t onnson Seno, the wane Resource Prom, Staten ‘lpr carter and aver Pacemert wold be stent, + lube academe as A honor ad elev rors woul be a sk 1 eteasedcasrom sues tae evs Feet Spc auction Sees ‘More stay als Mamredacion ne Levens {tess sufen spor aa ote aplication assstane and cordnation Inte spec educa placerat, refras aa seees + Geese tte cute our caret woud bearer tate tng may to McCann an BAT. Move ets Sui “thoee ott ater dite + Wewoul undoubtedly se money rom students who “olen the ds {Ghee hey may lesa tome nthe shorter actualy cette it moneyin he ong ‘erm puting our date an cre moe econo bg + MCAS sores wil undoubtedly deci ae opt ates i crease {switnave a sevstaing conse wo tive custo oné crawl esccuae fies whe wane ‘locate here ‘Total Possible Cuts ~ $1,130,000 5/24/2011 Our Challenges Are Many -Fist and Foremost... have to Balance the Budget We have to Stabile and Grow Reserves ‘Ihave to work on an aggressive plan to stabilize and over time, reduce the commercial tax ‘ate ~ this is not an option but a necessity if we expect to grow. ‘We have only scratched the surface...we have to face the fact that we have significant Infrastructure lsues ~ water and sewer pipes, OPW building, Public Safety Building, aging equipment - Millions In deferred maintenance. Our Opportunities Are MORE ‘The Portesip or Worth Adams ~PublPiat sector prtership between MCLA, MaCA athe City, tended soseex priatemestmert elas tpromete growth an ewopment cts center fr Sen nd lnonaton $0 milion project that wil even mare romiesly set MCLA apr fom ‘ter pbc higher ecvstn itions ia saute a the gress Nora. Spe WalartSuper center on Rane tat conus to move forward nd wil add much needed commercial ‘atrovent well as ew os ae provide for the growth opportaes Engaged Bonds & Commissions Fay appointed groups tat ae now woring towards the betirment ofthis comme Continued eons to mara ty owned land an bligs to bull eres ang put properties back one el ann Proce For the pst 6 months, ny administration ha been working with Beri Reloal Panning to {ate a wring lan for developmen ana growth for he iy. Ths plans wel on way ard Commun ing ‘orca should bogie these to engage the eat fl cen “rowing utr ad hy vets From WILCDt Pate nthe Parke Zumba dancing on Min St, we cnn to {row ow vets. ‘rea publi services ad a wonder shal sya. of what we mus ep intact 5/24/2011