2024 Durham Town Meeting Presentation

2024

Durham Annual Town Meeting

Select Board Report April 6, 2024

All 2024 budget figures are estimates based on best available data prior to Town Meeting, and don’t account for any changes made at Town

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Meeting or after.

2022 Overspent Article

◆ One Budget Article Overspent in 2022 – Article 5

◆ Fire Department: $3,235 overspent

◆ Reason: Fire Chief applied and received a couple Matching Grant opportunities and used operating funds to secure the grants. These funds were not replenished back to the account.

◆ Town Meeting approval required to use General Fund Balance to ratify the overspent funds

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2024 Municipal Budget Context

◆ Historically the Municipal Budget accounts for approximately 20% of your property tax bill.

◆ For 2023 it was 19.6%

◆ For 2024 it will be approximately 16.4%

◆ The ending fund balance in 2023 is 3.7 million, or roughly 33% of 2024’s total budgeted appropriations.

◆ The general recommendation is that unassigned fund balance should be between 16% to 20% of total budgeted appropriations

◆ The Select Board’s recommended 2024 budget is aiming to use $668,000 to help bring the unassigned fund balance down towards the recommended range.

◆ Based on the Select Board’s recommended use of fund balance being voted on today results in an approximate 1.8% tax increase.

◆ Based on the Budget Committee’s recommended use of fund balance voted on today results in an approximate 2.3% tax increase.

◆ Request for the use of ARPA funds for 2024 totals $44,630 for three projects.

◆ If approved, this will obligate the remaining ARPA funds.

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2024 Municipal Budget Summary
                                        2024           $ Var to LY    % Var to LY

Total Municipal Budget for 2024     $4,569,599         $554,366         13.8%

Less Revenues and General Fund $3,230,114 $813,505 33.7%

Appropriations for 2024 __________ Total Municipal Assessment for

$1,339,485 -$259,139 -16.2%

2024

The mil rate impact and % increase/decrease are estimates. They will be affected by (a)the town’s assessed taxable valuation in 2024, and (b) the amount of overlay when taxes are committed. 4

2024 Estimated “All-in” Tax Assessment
                    2024 Estimated   $ Variance   % Variance   Mil Rate
                     Assessment         vs LY        vs LY      +/(-)

Municipal     $1,339,485       -$259,139     -16.2%      -$0.686

Education     $6,088,292       $371,937       6.5%       $0.987

County          $742,140       $64,752        9.6%       $0.184

Overlay            $0          -$35,246      -100%       -$0.107

Total          $8,169,917       $142,304       1.8%       $0.378

Overlay is determined when taxes are committed and can be up to 5% of the total required tax levy.

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Durham Outstanding Bond Debt Initial Description Year 2024 2025 2026 2027 2028 2029 Principal PW Equip. Bond 2014 $1,150,000 $132,754

Rescue Bond    2019    $250,000     $39,647   $38,710   $38,095
Fire Truck
Bond           2018    $480,000     $58,895   $58,895   $58,895   $58,895   $58,895

Road Bond      2018   $2,000,000 $228,200 $222,940 $217,480 $211,820 $205,980

Road Bond      2019   $2,100,000 $230,397 $226,972 $223,484 $221,613 $217,875 $214,011
PW Building
Bond           2014    $975,000     $91,120   $91,120   $91,120   $91,120   $91,120   $79,525

Total         $780,349 $638,637 $629,074 $583,448 $573,870 $293,536
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Note: 2024 interest on debt is $88,482

Long Term Capital Planning

◆ Avoids spikes in taxes in years when expensive equipment purchases, or large construction projects are necessary.

◆ Helps keep the Town from having to borrow or lease and, thus, avoids interest costs.

◆ Funds the capital reserves consistently based on estimated useful life of assets against replacement schedules.

◆ Gives flexibility to the Town to make purchases, repairs, and construction when needed.

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Fire Department Reserve Annual Outlays vs Annual Amounts Raised $1,200,000 Projections are based

on currently planned capital projects and $1,000,000 purchases, estimated

replacement schedules, $800,000 and estimated costs in the year of the outlay.

$600,000 These projections are updated annually with

$400,000 input from dept heads and reviewed by the CIP committee. $200,000

$0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044

Outlays Raised 8

Public Works Capital Reserve Annual Outlays vs Annual Amounts Raised $350,000 Projections are based on currently planned $300,000 capital projects and purchases, estimated $250,000 replacement schedules, and estimated costs in $200,000 the year of the outlay.

These projections are $150,000 updated annually with input from dept heads

$100,000 and reviewed by the CIP committee. $50,000

$0
      2024   2025   2026   2027       2028       2029   2030   2031   2032

Outlays Raised 9

Municipal Buildings Reserve Annual Outlays vs Annual Amounts Raised $160,000 Projections are based on currently planned $140,000 capital projects and purchases, estimated $120,000 replacement schedules, and estimated costs in $100,000 the year of the outlay.

$80,000 These projections are updated annually with $60,000 input from dept heads and reviewed by the $40,000

CIP committee. $20,000

$0
      2024   2026   2028   2030   2032   2034   2036   2038   2040   2042   2044   2046   2048   2050   2052   2054   2056

Outlays Raised 10

Long Term Capital Planning
           Reserve Type             Starting Balance 2024   Additions to Reserves      Total

Grants Matching Reserve                    $27,077                 $2,293             $29,370
Revaluation Reserve                        $60,000                $160,000           $220,000
Eureka Capital Reserve                     $3,719                  $50,000            $53,719
Fire Rescue Capital Reserve               $142,091                $180,000           $322,091
Municipal Building Capital Reserve         $90,512                 $10,000           $100,512
Public Works Capital Reserve              $153,088                $205,000           $358,088
Union Church Restoration Reserve           $21,632                 $9,543             $31,175
Total                                     $498,119                $616,836           $1,114,955
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Long Term Capital Planning Based on Replacement Schedules and/or Life of Asset

◆ Fire Department: Article 11 - The amount to set aside annually in the Fire Department Reserve is scheduled to be $180,000.

◆ To replace all Fire Department equipment in today’s dollars would cost approximately $3 million.

◆ Public Works: Article 12 - The amount to set aside annually in the Public Works Reserve is scheduled to be $205,000.

◆ To replace all Public Works equipment in today’s dollars would cost approximately $2 million.

◆ Municipal Buildings: Article 13 - The amount to set aside annually in the Town Municipal Buildings Reserve is scheduled to be $10,000.

◆ To maintain all Municipal Buildings in today’s dollars would cost approximately $320,000 (septic, roofs, heating/cooling).

◆ Note: These amounts would have to be adjusted every 3 to 5 years to account for inflation cost.

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Land Use Ordinance Amendments

◆ Housing Density – LD 2003 (Affordable Housing) – Article 24

◆ Allows a second, smaller accessory apartment with any single-family home

◆ Increasing lot sizes when multiple, full-sized homes are proposed

◆ Changes align with comprehensive plan and rural character

◆ State law to be implemented July 1st, 2024

◆ Solar Energy Systems Standards – Article 25

◆ Currently there are no standards in our ordinances to regulate solar systems

◆ This article implements standards to allow the town to regulate small, medium and large solar systems

◆ Codification of Certain Fees – Article 26

◆ Based on input from the Town Attorney, this article will add a definitive fee list into our ordinance and to allow the Select Board to periodically assess fees 13

Union Church Property and Restoration Account Article 17, 27 and 28

◆ Safety Concerns

◆ Structural and Code Assessment

◆ Union Church Committee Recommendation

◆ Transfer the Property to the Durham Historical Society

◆ Restoration funds to be used by the Durham Historical Society with Select Board Approval

◆ Select Board, Budget Committee, Durham Historic District Commission and Durham Historical Society all support this transfer.

◆ Town to oversee the expenditures of restoration account

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Future Challenges and Opportunities Durham Town government and finances are in very good shape, but the work continues…

◆ Property Revaluation Process – (ECD by 2027)

◆ Potential Transition from Calendar to Fiscal Budget Year

◆ Long-term plan for Solid Waste

◆ GPCOG Assessing Town Properties and Usage (No Matching Grant)

◆ Town Office – Longer Term Solution

◆ Eureka Center Upgrades

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Thank-you for coming to Town Meeting today!

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