Town of Middletown, RI Proposed Municipal Budget Fiscal Y ear July - - PDF document

Town of Middletown, RI Proposed Municipal Budget

Fiscal Y ear July 1, 2012 – June 30, 2013

General Fund Parks & Recreation Fund S ewer Fund Refuse & Recycling Fund April 2, 2012

Town of Middletown, RI Proposed Municipal Budget FY2013

Table of Contents Page Town Administrator’ s Budget Message 3-5 Proposed Levy Allocation 6 Town of Middletown Vision S tatement/ Values/ Organizational Goals 7 About Middletown Residential/ Commercial Development 8 Census Data/ Economic Characteristics 9 Middletown Organizational Chart/ S taffing 10-11 Budget Process/ Calendar 12 Accounting and Financial Policies Fund Balance Policy 13-14 Revenue/ Expenditure Policy 15 Annual Appropriation to the CIP 16 General Fund Proposed Budget Highlights 17 Tax appropriation to the S chool Department 18 Levy/ Tax Rate/ Average Tax Bill 18-20 Expenditures 21-23 Consolidated Municipal/ S chool Department Report 24-28 Expenditures By Account Classification 29-30 Expenditures By Function 31-32 Enterprise Fund Budget Highlights Parks & Recreation Fund Highlights and S ummary 33-35 Revenues 36-37 Expenditures By Account Classification 38-41 Expenditures By Department 42-43 S ewer Fund Highlights 44 S ewer Maintenance Charges 45 S ummary 46-47 Revenues 48-49 Expenditures 49-52 Expenditure Trend – Personnel/ Operating/ Capital/ Debt 53-54 Refuse/ Recycling Fund Highlights and S ummary 55-57 Revenues 58-59 Expenditures 59-60 Expenditure Trend – Personnel/ Operating 61

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Town of Middletown, RI Proposed Municipal Budget FY2013

Town Administrator’s Budget Message Honorable President and Members of the Middletown Town Council: In accordance with the Town Charter, I respectfully submit to you the FY2013 Proposed Budgets for the Town’ s General Fund, Parks & Recreation Fund, S ewer Fund, and Refuse & Recycling Fund, and the FY2013 thru FY2017 Capital Improvement Program Plan. The FY2013 Proposed Budget was prepared with a focus on the following areas: Economic Development The Town continues to successfully implement its economic development program and the administration remains committed to working with existing Middletown businesses, as well as attracting new businesses to the community. The proposed budget includes a continued investment in the West Main Road redevelopment proj ect to include:

• Funding to pay for a development plan for the 18-acre parcel identified for redevelopment
• Funding for the development of a town facilities master plan which will enable the Town to

consolidate its operations thereby allowing development on excess property

• Funding to develop the Boulevard/ Tibbets recreation master plan which will enable the

Town to consolidate recreational activities thereby allowing development of excess property Capital Proj ects The Town continues to fund infrastructure proj ects to ensure the essential maintenance and improvements to the Town’ s valuable assets are appropriately prioritized and necessary work is not deferred. This budget proposal includes a recommendation to increase the amount of funding that is appropriated to the Capital Improvement Program S pecial Revenue Fund (CIPS RF) by $1.0M over the next 5-years, so that the Town can continue to fund proj ects on a pay-as-you- go basis as opposed to asking voters to approve referenda to issue bonds, resulting in additional debt and cost. In reviewing the Town’ s capital improvement program, it became apparent that without increasing the ongoing funding to this program, the Town would have to resort to borrowing to address the communities capital needs. The administration is recommending that the Town put a referendum on the November 2012 ballot to renovate the Fire S tation, as planned for the past several years. The estimated cost for this renovation ranges from $6.0M to $7.5M, and will be determined as the design is finalized

• ver the coming months. Like the Police S

tation, debt service costs associated with this proj ect will be funded from the PPV S RF, and will not have an impact on the tax rate. No other borrowing is proposed in this budget due to economic uncertainties, budget constraints, and the need to formalize certain aspects of the Town’ s capital plan.

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Town of Middletown, RI Proposed Municipal Budget FY2013

Town Administrator’s Budget Message (cont’d) Personnel costs The administration continues to support legislative efforts to contain personnel costs, such as state and local pension reform initiatives. Over the past year, the administration has negotiated collective bargaining agreements that successfully contain and reduce the cost of personnel currently and in the future, as new employees come on board. The Town consistently funds its annual required contributions to the pension plans and to the

• ther post employment benefits plan (OPEB). This budget proposal reflects annual required

employer contributions to the state retirement plan for the municipal unit and the teachers unit in accordance with state pension reform legislat ion, the Rhode Island Retirement S ecurity Act (RIRS A). The annual required employer contribution to the Town’ s private pension plan has increased this year due to the impact of investment returns and mortality experience. The annual required employer contribution to the OPEB plan has improved as the Town continues to implement and realize long-term savings to retiree health costs. Process improvement The departments have been working diligently to reduce costs by reviewing operations and making improvements in their operations. S ignificant efficiency improvements with maj or cost savings include the Police Department migrating to a 12-hour shift schedule, and the Fire Department implementing civilian dispatchers. Another area of significant improvement is the redesign of the Town’ s website which includes an expanding suite of online services and web 2.0 social media integration. In the upcoming year, two of the main priorities of the administration will be to fully implement an asset records management system (RMS ) that is integrated with the Town’ s GIS to provide greater accountability and control over the Town’ s infrastructure, and realign the policies, procedures, and organization of the Department of Public Works so that the RMS becomes the central repository of all the department’ s work activity. There are numerous studies that demonstrate that managing assets at an individual level can reduce costs in excess of 30% ; the Town will need to realize these savings if it desires to sustain funding infrastructure maintenance, as well as enhancements that will become necessary and/ or required as new regulations and mandates are adopted. Revenues Town revenues have remained flat throughout the Great Recession. Additionally, the S tate has continued to shift financial burdens to the Town for both municipal and educational programs.

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Town of Middletown, RI Proposed Municipal Budget FY2013

Town Administrator’s Budget Message (cont’d) Revenues (cont’ d) This proposal does include a 3% increase in the property tax levy; note that we are not able to calculate the impact on the tax rate at this time because the results of the property revaluation are still pending. Expenditures The proposed 3% increase in the tax levy is $1.4M and is allocated to cover new recurring

• perating costs in FY2013 for the school department and for municipal operations. Of the $1.4M

levy increase, $625K is proposed for the S chool department to fund increased water costs as a result of the rate increase implemented by Newport for the capital improvement to the regional water treatment facility, an increase in the employer pension contribution for the non-certified municipal unit and teachers’ unit at the state, to cover half of the unfunded state mandates for Out of District Tuition and MET S chool Tuition, to fund the loss of state education aid due to the funding formula implementation, and to fund increased school operating expenditures based on the CPI trend. For municipal operations, an additional $577K is allocated to fund increased pension costs for the Town’ s private pension plan as a result of investment returns and mortality experience, increased municipal hydrant rental costs as a result of the Newport Water rate increase to fund capital improvement to the regional water treatment facility, and to fund increased municipal operating expenditures based on the CPI trend. The remainder of the 3% levy increase is allocated to the CIPS RF for the purpose of maintaining the appropriate level of pay as you go financing for capital improvements. (See Levy Allocation Breakout next page). The Town’ s department heads and their staff have worked assiduously to address the Town’ s

• perational and capital needs in a thoughtful and cost-effective manner. While the economic

climate prohibits us from addressing all of the challenges the Town faces, this budget is presented with minimal service reductions to residents. This budget proposal represents a continued measured and deliberate approach for future efficiencies and cost control. The proposal addresses priorities of the Town Council in a balanced manner, maintains reasonable expenses, and addresses the need to promote economic development and quality of life efforts within the community. Along with the department heads, I sincerely look forward to reviewing the budget with you and the community. Respectfully yours, S hawn J. Brown, CPA Town Administrator

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Town of Middletown, RI Proposed Municipal Budget FY2013

Town Administrator’s Budget Message (cont’d)

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FY2013 Proposed Budget – Levy Allocation

CIP School Dept Municipal Ops 1 Total FY2012 Budgeted Levy $1,035,000 $23,004,413 $16,088,202 $40,127,615 Add New Recurring Impacts:

• 1. Newport Water Rate Increase

Water Usage $7,000 $5,000 $12,000 Municipal Hydrant Rental $0 $216,000 $216,000 S / Total Water $7,000 $221,000 $228,000

• 2. Pension Contributions

Certified - Teachers ERS RI $195,000 $0 $195,000 MERS

• Non-Certified/ Municipal

$27,000

• $162,000
• $135,000

Town Pension $0 $449,218 $449,218 S / Total Pension $222,000 $287,218 $509,218

• 3. Unfunded Mandates @

50% Out of District Tuition $45,500 $0 $45,500 MET S chool Tuition $50,000 $0 $50,000 S / Total Unfunded Mandates $95,500 $0 $95,500

• 4. Loss of Revenue

S tate Education Aid - Year 2 Formula Distribution $150,500 $0 $150,500

• 5. Increase in Operating Expendit ures - CPI + 2.0%

$150,000 $69,295 $219,295

• 6. Increase in Appropriation to CIP (+3.0%

Levy) $31,050 $0 $0 $31,050

• 7. Added Appropriation to CIP + $200K/ yr for 5 yrs

$200,000 $0 $0 $200,000 FY2013 Increase in Budgeted Levy $ $231,050 $625,000 $577,513 $1,433,563 FY2013 Increase in Budgeted Levy % 22.3% 2.7% 3.6% 3.6% FY2013 Total Proposed Budgeted Levy $1,266,050 $23,629,413 $16,665,715 $41,561,178 % Of Total Levy 3.0% 56.9% 40.1% 100.0%

1 Municipal Operat ions includes all Municipal/ S

chool debt service

Town of Middletown, RI Proposed Municipal Budget FY2013

Town of Middletown Vision Statement, Values and Organizational Goals The Middletown Town Council has conducted several S trategic Planning S essions over the past three years for the purpose of developing a Vision and Mission S tatement, and to also define Middletown’ s Core Values. The latest session held in December 2010, included the S chool Committee and Library Board of Trustees for the purpose of developing the Values Rubric below, which is used as a guide when making all budgetary decisions. Our Vision: We envision being a leader in innovative, quality municipal government operations while demonstrating a strong commitment to protecting our quality of life, cultural traditions and natural resources. Our administration is committed to the health, safety and welfare of the public we serve. Our Mission: To continue to improve the delivery of superior quality services to the community in the most cost-effective and responsible manner. We are committed to preserving the character of Middletown by supporting well-balanced growth that ensures our quality of life. We, the members of Town Government, focus on our responsibilities to the residents of Middletown, treating all citizens with respect and recognizing our employees and volunteers for their commitment to excellence. Our Core Values:

• Honesty, integrity and accountability
• Intelligence
• Kindness
• Commitment to employee excellence and recognition
• Innovation, creativity, and technology in the delivery of our services
• Collaboration, communication and participation throughout the community
• Respect for the environment and the quality of life now and for future generations
• High standards of professional and ethical conduct
• Responsible fiscal management
• Employee wellness through work/ life balance
• Diversity in our employees and our community

Our Values Rubric:

• Evolving economic growth and diversity
• Community engagement / Leadership / Involvement
• Comprehensive learning community
• S

tewardship of environment and culture

• Healthy and safe community climate
• Financial wellness

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Town of Middletown, RI Proposed Municipal Budget FY2013

About Middletown Residential & Commercial Development The Town of Middletown includes a mix of development patterns. The western portion of Middletown is urbanized and densely populated. The town’ s commercial corridors and office parks are located along West Main Rd., the southern portion of East Main Road, Aquidneck Avenue and Valley Road. The eastern portion of town tends to be largely agricultural with some suburban style subdivisions developed in recent years. There are large areas of conserved land, including the Norman Bird S anctuary, S achuest Point Wildlife refuge, and several parcels conserved by the Aquidneck Land Trust. Within the town are two principal through highways running north south, East Main Road and West Main Road, that have spawned highway oriented commercial development along their frontages as well as access to significant residential developments. The Aquidneck Island Planning Commission completed a residential build-out analysis for the Town

• f Middletown in 2010. The goal of the analysis was to determine the maximum number of

residential lots that could be developed under existing zoning. The results concluded that the town has a total of 1,242 additional residential lots that could be developed with an estimated additional population of 3,018. Current market conditions, however, have resulted in limit new residential development activity. A corporate/ office space build-out analysis completed for the town in 2005 found that there is the potential to double the existing floor area of office space in Middletown within current zoning

• standards. While that study identified the potential for approximately one million square feet of

new office space, a market analysis completed in 2011 in support of the West Main/ Coddington Development Center Master Plan found that that there is little demand for new office space at this time. Due to the costs of development compared to the current lease rates, speculative construction of new office space is not anticipated. The 2011 study also evaluated the market for new retail space on Aquidneck Island, and found that demand is limited. Based on local demographic conditions and the current mix of retail, the island could support approximately 70,000 square feet of new retail development in certain categories. Recent commercial development activity includes the construction by KVH of a new 75,000 square foot assembly/ distribution facility in Enterprise Center. S

• me operations that were being

conducted at the Aquidneck Corporate Park are to be relocated to the new facility. That move, coupled with the closing of AS FT has resulted in an increased vacancy rate in the Aquidneck Corporate Park. Anticipated commercial development includes a new 92 room hotel to be located to the rear of the Chrysler dealership, off West Main Road. That proj ect is nearing completion of the permitting

• process. A redevelopment for the S

andpiper Cottages motel is currently under review. An application for a significant commercial/ mixed use development of Rhode Island Nurseries property fronting on West Main Road is anticipated. As noted above, the town has completed a master plan for the redevelopment of approximately 16 acres of land fronting on West Main Road, in the area of Coddington Highway. The plan calls for mixed-use development of the 3-acre former Navy Lodge parcel and the abutting 13 acres of town-owned land.

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Town of Middletown, RI Proposed Municipal Budget FY2013

About Middletown (cont’d) 2010 Census Population & Housing Data

• Middletown total population declined by 6.83%

between 2000 and 2010, from 17,334 to 16,150 (RI population increased by 0.4% )

• Middletown & Newport had the highest percentage declines in population in the state.
• The greatest decline in population was seen on the west side of Middletown (Census

tracts 402 & 403.03).

• There was a net increase of only 19 housing units town wide between 2000 and 2010.
• The greatest decline in the number of housing units was seen on the west side, which is

explained by the demolition of units by the US Navy at the Anchorage and Greene Lane housing areas. Losses in units on the west side were offset by an increase in units in other tracts.

• Housing unit vacancy increased in all census tracts, with tract 402 (which includes the

Landings and Coddington Cove) having the highest vacancy rate of 24.57% , and tract 404 (the east side of town) having the highest number of vacant units: 417.

• The modest increase in the number of housing units, combined with increased vacancy

rates helps to explain the decline in total population.

• Middletown’ s average household size, which was 2.43 in 2000, has also declined to

2.34, further explaining population decline. Economic Characteristics

• January 2012 Unemployment rate: Middletown 13.4%

(not seasonally adj usted); S tate 11.7% (not seasonally adj usted), 10.9% (seasonally adj usted), (Newport 13.6% ; Portsmouth 11.6% )(S

• urce: RIDLT)
• Estimated median income: Middletown $68,896; S

tate $54,907 (Newport $57,640, Portsmouth $77,712) (S

• urce: US

Census Bureau, American Community S urvey)

• Estimated percentage of people with earnings below poverty level: Middletown 7.5%

; S tate 12.2% (Newport 10.2% , Portsmouth 4.3% ) (S

• urce: US

Census Bureau, American Community S urvey)

• Median single-family home sales price (2010): Middletown $306,500; S

tate $210,000 (Newport $375,000, Portsmouth $285,000) (S

• urce: HousingWorksRI 2011 Fact Book)
• Percent of housing units meeting state definition for affordable housing (S

tate goal 10% ): Middletown 9.22% , Newport 16.79% , Portsmouth 2.98% (S

• urce: RI Housing)

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Town of Middletown, RI Proposed Municipal Budget FY2013

Middletown Organization Chart

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Citizens Town Council Town Solicitor Town Administrator Senior Center Recreation Beach (seasonal) Campground (seasonal) Building/ Zoning Information Services Planning/

• Econ. Dev.

Public Safety Fire Police Finance/ HR Town Clerk Substance Abuse Prev. Tax Assessor Public Works Refuse/ Recycling Sewer Highway Division Parks/ Grounds Library Board Middletown Library School Committee School Department

Town of Middletown, RI Proposed Municipal Budget FY2013

Function Current FTEs Current Vacancies Budgeted FTEs Public S afety - Police 38.0 1.0 39.0 Public S afety - Fire 31.0 1.0 32.0 General Government 28.0 0.0 28.0 Planning/ Inspection 5.5 0.0 5.5 Public Works 19.0 0.0 19.0 Library 11.0 0.0 11.0 Community S ervices 3.5 0.0 3.5 Education 288.0 6.0 294.0 Total Proposed FY2013 424.0 8.0 432.0 Total FY2012 422.5 19.0 441.5

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Proposed Town Staffing By Function

Public S afety - Police 39 9% Public S afety - Fire 32 7% General Government 28 7% Planning/ Inspection 5.5 1% Public Works 19 4% Library 11 3% Community S ervices 3.5 1% Education 294 68%

Proposed Town Staffing By Function

Town of Middletown, RI Proposed Municipal Budget FY2013

FY2013 Budget Process / Calendar The Budget and Capital Improvement Program (CIP) development process begins in November, with department requests/ estimates finalized in December. During January and February the Town Administrator completes an in-depth review of all estimates and makes revisions as needed. The S chool Committee is required to submit their proposed budget to the Town Administrator not later than one hundred days prior to the start of the next fiscal year. The Town Administrator will then present the consolidated Town and S chool Committee budget to the Town Council not later than ninety days prior to the start of the next fiscal year. Upon receipt of the consolidated Town and S chool Committee budget, the Town Council shall hold budget meetings and two public budget hearings. The Town Council shall then take final action on the consolidated budget following the second public hearing, prior to the start of the next fiscal year.

• 1. January 03, 2012

6:00 pm S enior Center Board of Directors

• 2. January 09, 2012

6:00 pm S chool Committee Pre-Budget Consultation

• 3. January 25, 2012

3:00-8:00 pm Municipal Facilities Open House

• 4. March 26, 2012

6:00 pm S ewer Fund, Parks & Recreation Fund, Public Works Refuse & Recycling Fund Review

• 5. April 02, 2012

6:00 pm General Fund Revenues, Debt S ervice, Non-specific, S upport S ervices Review

• 6. April 09, 2012

6:00 pm S chool Committee Proposed Budget Review 7. April 30, 2012 6:00 pm Police, Fire, Town Administrator, Town S

• licitor

Probate Court, Municipal Court, Finance, Tax Assessor, Town Clerk, IT, Town Council, Boards & S ervices Review 8. May 7, 2012 6:00 pm Planning, Building, Civic S upport, S enior Center, S ubstance Abuse Prevention

• 9. May 14, 2012

6:00 pm 1ST Public Hearing – FY2013 Proposed Budget

• 10. May 23, 2012

6:00 pm 2nd Public Hearing – FY2013 Proposed Budget

• 11. May 30, 2012

6:00 pm Pre-Budget Adoption Review

• 12. June 04, 2012

6:00 pm FY2013 Budget Adoption

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Town of Middletown, RI Proposed Municipal Budget FY2013

Accounting and Financial Policies Fund Balance Policy – The Town’ s Fund balance is maintained in accordance with Town Code

§ 33.18. Note – Revised guidance from the GFOA on the appropriate level of fund balance is

under review and may necessitate a revision to the Fund Balance Policy.

§ 33.18 FUND BALANCE POLICY

(A) The unrestricted non-committed General Fund balance will be maintained at a level sufficient to provide for the required resources to: (1) Plan for contingencies, and (2) Maintain good standing with rating agencies, and (3) Avoid interest expense for operating budget needs and capital proj ects, and (4) Provide for investment income, and (5) Ensure short-term cash availability when anticipated revenue is unavailable. (B) (Reserved). (C) The town will maintain a minimum unrestricted non-committed General Fund balance

• f 8%
• f the current period’ s budgeted expenditures. The unrestricted non-committed

General Fund balance does not include the non- spendable, restricted or committed fund balance that is either inherently non-spendable, has externally enforceable limitations on use, or has limitations imposed by the Town Council. (D) To avoid a balance in excess of the level deemed sufficient for prudent fiscal management, the town will maintain a maximum unrestricted non-committed General Fund balance of 16%

• f the current period’ s budgeted expenditures. Excess surpluses will be

available for appropriation by the Town Council in a subsequent fiscal year to fund capital, operating, or debt service expenditures as determined by the Town Council during the budget for that subsequent fiscal year. (E) An unrestricted non-committed General Fund balance in excess of the minimum recommended level may be utilized for the purposes listed below. (1) Meeting future capital needs, or (2) Offsetting difficult economic times, or (3) S tabilizing fluctuations in cash flow requirements, or (4) Provisions for emergency situations. (F) If the unrestricted non-committed General Fund balance falls outside of the above parameters, budgeted revenues will be either greater or less than budgeted expenditures in subsequent years to bring the unrestricted non-committed General Fund balance into compliance with this policy.

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Town of Middletown, RI Proposed Municipal Budget FY2013

Accounting and Financial Policies Fund Balance Policy (cont’d)

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Fund Balance By Category As of June 30, 2011 Category Municipal School Total Nonspendable $452,155 $452,155 Restricted $288,844 $381,384 $670,228 Committed $4,542,911 $991,053 $5,533,964 Assigned $434,380 $1,189,409 $1,623,789 Unassigned $4,278,920 $4,278,920 Total Fund Balance $9,997,210 $2,561,846 $12,559,056 %

• f Total

80% 20% 100% Nonspendable $452,155 4% Restricted $670,228 5% Committed $5,533,964 44% Assigned $1,623,789 13% Unassigned $4,278,920 34%

Town of Middletown, RI Proposed Municipal Budget FY2013

Accounting and Financial Policies (cont’d) Revenue / Expenditure Policy – The Town is committed to maintaining diverse and stable revenue streams in accordance with Town Code §33.19. Non-recurring, one-time revenues do not support operations. The Town fully funds its pension and OPEB Annual Required Contribution (ARC). Through the adoption of the Town’ s Capital Improvement Program there is an emphasis

• n the maintenance of capital assets, with five - t en year capital planning efforts are an on-going

priority for the Town.

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§ 33.19 REVENUE AND EXPENDITURES

(A) Revenues (1) Diversificat ion and st abilizat ion. The town will maintain a diversified and stable revenue system as a protection from short-run fluctuations. The town will strive to diversify the revenue base, reducing its dependency on property taxes and intergovernmental transfers. To encourage diversity within the local economy, the town will support policies that promote tourism, agriculture, commercial and industrial employment. (a) One-t ime revenues. The use of one-time revenues shall be limited to the purpose for which they are intended, or for a capital expenditure, and not to subsidize costs such as recurring personnel, operation, and maintenance. (b) New revenues. For any proposed additional revenue source, the Town Council will consider the following criteria: 1. Community acceptability 2.

• Competitiveness. The revenue or tax burden of the town relative to

neighboring communities; 3.

• Diversity. The balance of revenue sources that can withstand changes in the

business cycle; 4.

• Efficiency. The cost of administering a tax or fee should bear a reasonable

relation to revenues collected, and any new tax or fee should have minimal effect

• n private economic decisions; and

5.

• Fairness. The distribution of the town's revenue burden shall be as

progressive as possible measured by ability to pay, the benefits received, or the community's definition of the resident's fair share of the revenue burden. (2) Forecast ing. Town revenues shall be forecast conservatively, using an obj ective and analytical approach. Where practical, historical tending and econometric forecasting shall be used to maintain consistency and enhance reliability. Budget estimates shall be compared to actual results on a periodic basis to determine the validity of assumptions made during the formulation of estimated revenues. (3) User fees. User fees will be developed and continually reviewed to ensure they recover the cost of services that are not universal to all taxpayers. In Proprietary Funds, user fees will provide full coverage of direct and indirect costs including depreciation. In the Park and Recreation Fund, user fees will be maintained at a level to cover operating costs exclusive of facility costs.

Town of Middletown, RI Proposed Municipal Budget FY2013

Accounting and Financial Policies (cont’d) (B) Expendit ures. (1) Maint enance of capit al asset s. Within the resources available each year, the town shall maintain capital assets and infrastructure at a sufficient level to protect the town's investment, to minimize future replacement and maintenance costs, and to continue service levels. (2) Full funding of pension and ot her post -ret irement syst ems. The annual budget will provide for the full funding of the employee retirement systems as recommended by the town's actuary. (3) Program review/ privat izat ion. It is the town's intent to control personnel costs as a proportion of the total budget, to more productively and creatively use available resources, and to avoid duplication of effort and resources. The town will encourage delivery of services by other public and private organizations whenever and wherever greater efficiency and effectiveness can be expected. The town will develop and internally use technology and productivity advancements that will help reduce or avoid increasing personnel costs. Annual Appropriation to the CIP An annual appropriation of tax dollars to the Capital Improvement Program (CIP) fund is made in accordance with town code § 35.10. A recommendation to increase this appropriation by an additional $200,000 each year for the next 5 years, beginning in FY2013, is included in this budget proposal to ensure Pay As You Go (PAYG) funding is available for the necessary capital improvements in Middletown. § 35.10 ANNUAL APPROPRIATIONS TO THE CIP The Capital Improvement Program (CIP) shall be funded by the Town Council by an annual

• appropriation. The appropriation for any year may not be less than the appropriation for

the preceding year, first increased by the percentage increase in the budgeted property tax revenues.

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§ 33.19 REVENUE AND EXPENDITURES (cont’d)

Proposed Capital Improvement Program Funding FY2013 - FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 Beginning Balance $1,035,000 $1,266,050 $1,504,032 $1,749,152 $2,001,627 Add Appropriation (@ 3.0% levy growth) $31,050 $37,982 $45,121 $52,475 $60,049 Add Additional Appropriation $200,000 $200,000 $200,000 $200,000 $200,000 Total $1,266,050 $1,504,032 $1,749,152 $2,001,627 $2,261,676

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Highlights The General Fund is the chief operating fund of the Town. The S chool Department is a special revenue fund of the Town. The FY2013 proposed Municipal and S chool Department consolidated budget is $64,214,965, a $602 or 0% increase compared to FY2012. This consolidated proposed budget number does not include an additional $56,296 in expenditures requested by the S chool Committee. In FY2013, Municipal operating revenues are proj ected to increase by $1,669,055 or 4%

• ver
• FY2012. Included in this proposal is a 3.0%

tax levy increase which accounts for the maj ority of the Increase in municipal operating revenue. There is no revenue growth proj ected from local revenue sources Including Licenses, Permits, Fees and Intra-Governmental S upport as the local and state economy continue the slow recovery from the 2008 recession. In FY2013, S chool Department operating revenues are proj ected to decrease by $972,383 or -7% compared to FY2012. This reduction is primarily due to Federal S timulus programs expiring in

• FY2012. Fully funded S

tate Education Formula Aid is included in the proposed Education Aid

• budget. Also, the replacement of the Federal Jobs Fund stimulus funding is included in the total

S tate Education Formula Aid proposal. FY2013 Municipal personnel and operating expenditures are $20,390,352, an increase of $1,189,915 or 6% compared to FY2012. This increase is primarily due to increased pension contribution costs for the municipal and town pension plans, and the rate increase implemented by the City of Newport for water and public hydrant services. Municipal capital, debt, and other non-operating expenditures total $6,620,378, which is a decrease of $897,020 or -12% compared to FY2012 primarily due to the purchase of a fire pumper and ladder truck last fiscal year. An additional appropriation of $200,000, each year for the next 5 years, to the Capital Improvement Program (CIP) fund is included in this budget proposal in order to fund necessary capital improvements on a Pay As You Go (PAYG) basis without having to incur debt. In FY2015, $204,000 of debt payments will be paid off and no longer due, and this amount will also be added to the CIP appropriation. S chool Department personnel and operating expenditures for FY2013 are $36,587,186 an increase of $198,551 or .5% compared to FY2012. This increase is mainly due to increased S tate pension contribution costs for the certified teachers unit. Capital expenditures are proposed at $673,345, which is a decrease of $434,548 or -39% compared to FY2012.

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Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Highlights (cont’d) Property Tax Appropriation to the School Department The proposed General Fund tax appropriation to the S chool Department for education is $23,629,413, an increase of $625,000 or 2.7%

• ver the FY2012 appropriation. This proposed

appropriation is $56,296 less than the amount requested from the Town by the S chool Committee of $23,685,709. The proposed CIP appropriation to the S chool Department is $474,290 in FY2013. This includes $390,000 for paving/ sidewalk replacement at the High S chool and $84,290 for roof replacement at Gaudet and the High S

• chool. In addition, a school vehicle will be lease-purchased with other

town vehicles, with the lease payment also being funded by the CIP. Additional school capital proj ects are included for $199,055, to be funded from the S chool Unrestricted Fund. Proposed Levy and Tax Rate (Note – Does not reflect statistical revaluation in process) Under RIGL 44-5-2, the maximum allowed levy increase in FY2013 is 4% . This budget proposal reflects a 3% levy increase, for a total proposed budgeted levy of $41,561,178, an increase of $1,433,563 or 3.6%

• ver the FY2012 budgeted levy. The collection rate is budgeted at 97.0%

in FY2013 compared to 96.5% in FY2012 as a result of actual collection trends.

• The proposed residential tax rate would increase from $13.73/ $1,000 assessed value to

$14.17/ $1,000 assessed value, which is a $0.44/ $1,000 or 3% increase over the current year.

• The proposed commercial tax rate would increase from $18.26/ $1,000 assessed value to

$18.82/ $1,000 assessed value, which is a $0.56/ $1,000 or 3% increase over the current year.

• The proposed motor vehicle tax rate would remain constant at $16.05/ $1,000 assessed

value, also maintaining the $3,000 exemption on assessed value of which the state reimburses the town for $500 of this exemption. The General Assembly is currently reviewing legislation that would change how motor vehicle values are calculated and base used car values on trade-in price vs. the “ clean retail value” now used. If this legislation passes, the estimated impact is estimated to be a $100,000 - $150,000 reduction in the motor vehicle levy.

18

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Highlights (cont’d) Proposed Levy and Tax Rate (cont’d) (Note– Does not reflect statistical revaluation in process) Tax Rate Increase – FY2013 Proposed

19

Residential Commercial Motor Vehicle (Rate per $1,000) (Rate per $1,000) (Rate per $1,000) FY2012 Approved $13.73 $18.26 $16.05 FY2013 Proposed 3.0% Levy Increase (MV Exemption = $3,000) $14.17 $18.82 $16.05 Increase $ $0.44 $0.56 $0.00 Increase % 3% 3% 0% Estimated Average Tax Bill Increase - FY2013 Proposed Median Annual Assessment Rate Tax Bill $13.73 $3,980.33 Current Single Family $289,900 $14.17 $4,107.88 Proposed $127.56 Avg $ Increase $18.26 $12,339.20 Current Commercial $675,750 $18.82 $12,717.62 Proposed $378.42 Avg $ Increase Mean Annual Assessment Rate Tax Bill $13.73 $5,138.25 Current Single Family $374,235 $14.17 $5,302.91 Proposed $164.66 Avg $ Increase $18.26 $26,340.84 Current Commercial $1,442,543 $18.82 $27,148.66 Proposed $807.82 Avg $ Increase

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Highlights (cont’d) Proposed Levy and Tax Rate (cont’d) (Note– Does not reflect statistical revaluation in process)

20

GROSS ASSESSED VALUE As of 12/31/2010 FY2012 Final Tax Rates As of 12/31/2011 FY2013 Proposed Tax Rates $ Change % Change Real Property-Residential $2,112,779,734 $13.73 $2,111,723,344 $14.17 $0.44 3.20% Real Property-Comm/ Ind/ Mixed Use $581,689,600 $18.26 $581,398,755 $18.82 $0.56 3.06% Real Property Frozen (MaxTax Value) $0 N/ A $0 N/ A N/ A N/ A Motor Vehicles $139,108,949 $16.05 $139,039,395 $16.05 $0.00 0.00% Tangible Personal Property $97,225,739 $13.73 $97,177,126 $14.17 $0.44 3.20% $2,930,804,022 $2,929,338,620 Homestead Exemption Residential Homestead Exemption Commercial ADJUSTED ASSESSED VALUE $2,930,804,022 $2,929,338,620 EXEMPTIONS Real Property-Residential $65,811,100 $65,778,194 Real Property- Comm/ Ind/ Mixed Use $518,394 $518,394 Job Creation Incentive Real Property Frozen $0 $0 Motor Vehicles (W/ Phase out &Adj ) $43,371,759 $43,350,073 Tangible Personal Property $0 $0 TOTAL EXEMPTIONS $109,701,253 $109,646,662 NET ASSESSED VALUES Real Property-Residential $2,046,968,634 $2,045,945,150 Real Property- Comm/ Ind/ Mixed Use $581,171,206 $580,880,361 Real Property Frozen $0 $0 Motor Vehicles $95,737,190 $95,689,321 Tangible Personal Property $97,225,739 $97,177,126 TOTAL NET ASSESSED VALUES $2,821,102,769 $2,819,691,958 LEVY Real Property-Residential $28,104,879 $28,991,043 Real Property- Comm/ Ind/ Mixed Use $10,612,767 $10,932,168 Real Property Frozen $0 $0 Motor Vehicles $1,536,582 $1,535,814 Tangible Personal Property $1,334,909 $1,377,000 Breakage/ Circuit Breaker NET TAX LEVY $41,589,137 $42,836,025 $1,246,888 3.00%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Highlights (cont’d) General Fund Expenditures Municipal Personnel costs are proj ected to increase by $213,840 or 1%

• ver the current year,

mainly due to increased pension contribution costs for the municipal (non public safety) unit in MERS and for the town pension plan. These pension increases are offset by reductions in the budgeted overtime expenses for police and fire as a result of the implementation of the 12- hour shift in the Police department, and the civilian dispatcher program in the Fire department. S chool Department Personnel costs are proj ected to increase by $120,960 primarily due to increased pension contribution costs for the certified teachers unit at ERS RI. Municipal Operating expenditures are proj ected to increase by $976,075, or 30% , primarily due to the inclusion of four professional studies to be completed during FY2013. Each of the four engagements will be funded from revenue sources as follows: Other Professional Services – Professional Studies Budget Funding Source 1. West Main Rd/ Coddington Master Plan Implementation $100,000 Committed Fund Balance 2. Master Facilities Plan $100,000 Committed Fund Balance 3. Asset Management Plan $100,000 PPV S pecial Revenue Fund 4. Boulevard/ Tibbit’ s Property Master Plan $100,000 PPV S pecial Revenue Fund Total $400,000 Municipal Operating expenditures are also impact ed by the recent City of Newport water rate

• increases. Rates increased by 22.5%

in December 2011, and will increase another 35.31%

• n July

1, 2012, 14.6%

• n July 1, 2013, and 2.8%
• n July 1, 2014 for the purpose of funding required

capital improvements to the Treatment Plant. These rate increases are also applied to the Town’ s municipal hydrant service/ rental fees, resulting in an increase of $216,000 in FY2013 for hydrant rental. (S ee detailed schedule on the following page).

21

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Highlights (cont’d) General Fund Expenditures (cont’d)

22

Hydrant Services - Impact As A Result of City of Newport Water Rate Increases Rate Increase 22.50% 35.31% 14.60% 2.77% Monthly Rate $72.45 / $88.75 $120.09 $137.62 $141.43 Hydrant Units 408 408 408 408 FY2012 FY2013 FY2014 FY2015 July $29,559.60 $48,995.75 $56,149.13 $57,704.46 August $29,559.60 $48,995.75 $56,149.13 $57,704.46 S eptember $29,559.60 $48,995.75 $56,149.13 $57,704.46 October $29,559.60 $48,995.75 $56,149.13 $57,704.46 November $29,559.60 $48,995.75 $56,149.13 $57,704.46 December $36,210.00 $48,995.75 $56,149.13 $57,704.46 January $36,210.00 $48,995.75 $56,149.13 $57,704.46 February $36,210.00 $48,995.75 $56,149.13 $57,704.46 March $36,210.00 $48,995.75 $56,149.13 $57,704.46 April $36,210.00 $48,995.75 $56,149.13 $57,704.46 May $36,210.00 $48,995.75 $56,149.13 $57,704.46 June $36,210.00 $48,995.75 $56,149.13 $57,704.46 S / Total Hydrant Billing $401,268.00 $587,949.01 $673,789.57 $692,453.54 Billing Charge $207.80 $304.45 $348.90 $358.56 Total Fiscal Year $401,475.80 $588,253.46 $674,138.46 $692,812.10 Budget $372,492.00 $588,253.46 Budget vs. Act ual

• $28,983.80

$0.00 Increase $ $215,761.46 $85,885.01 $18,673.64 Increase % 53.74% 14.60% 2.77%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Highlights (cont’d) General Fund Expenditures (cont’d) Miscellaneous expenditures are proj ected to increase by $520,996, primarily due to Net Contingent planned savings budgeted in FY2012, that have been realized and allocated out to the appropriate department and account in FY2013. Municipal Capital expenditures are proposed to decrease by $1,155,399 or 35% as compared to FY2012 which is mainly due to the large purchase of a fire pumper and fire ladder truck that took place during the prior fiscal year. S chool Department Capital expenditures are proposed to decrease by $434,548 or 39% as compared to FY2012. FY2013 capital expenditures at the S chool Department include $390,000 funded from the CIP for safety improvements to the high school parking lot and sidewalks. An additional $300,000 from the CIP for this proj ect is included in the FY2014 CIP proposal. S chool Housing Aid is available through RIDE for school districts for RIDE approved capital proj ects, based on a percentage of proj ect cost. This aid is deposited back into the CIP fund when received by the S chool Department, following proj ect completion. Beginning in FY2012, the General Assembly enacted a moratorium on new proj ects, limiting approvals in FY2012 through FY2015 to proj ects that are necessitated by immediate health and safety

• reasons. The high school paving proj ect will be included in the Housing Aid application

submitted by the S chool Department this year. Municipal Other Non-Operating expenditures are proposed to increase by $258,379 or 6% , which is primarily due to the recommendation to transfer an additional $200,000 each year for five years, beginning in FY2013, to the CIP fund from current property taxes raised. This will enable the Town to properly fund required capital proj ects using PAYG funding, rather than incurring additional debt and expense.

23

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report

24

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 2012 %

• General Fund - School Department

Revenue Formula Distribution $8,843,001 $8,489,558 $8,806,789 $317,231 4% High Cost S pecial Education $0 $0 $6,149 $6,149 +++ Group Home $480,000 $480,000 $480,000 $0 0% Child Opportunity Zone $17,927 $16,200 $15,564

• $636
• 4%

Uniform Chart of Accounts Grant $25,000 $0 $0 $0 +++ Rhode Island Council Arts $400 $400 $400 $0 0% General Assembly Grants $2,558 $1,204 $0

• $1,204
• 100%

SubTotal State Education Aid $9,368,886 $8,987,362 $9,308,902 $321,540 4% Federal Jobs Fund $0 $444,725 $6,475

• $438,250
• 99%

Federal S tabilization Fund $331,723 $644,925 $0

• $644,925
• 100%

Title I - ARRA Fund $96,020 $2,422 $0

• $2,422
• 100%

IDEA Part B ARRA Fund $330,772 $77,676 $0

• $77,676
• 100%

IDEA Part B Preschool ARRA Fund $8,539 $0 $0 $0 +++ Race to the Top $0 $92,498 $92,498 $0 0% Title I $286,234 $261,424 $253,581

• $7,843
• 3%

IDEA Part B $592,066 $613,510 $595,104

• $18,406
• 3%

IDEA Part B Preschool $35,099 $33,006 $32,015

• $991
• 3%

Title II $138,100 $102,206 $99,139

• $3,067
• 3%

Title IIV $5,271 $0 $0 $0 +++ Title III/ LEP-CRP $31,753 $22,704 $22,022

• $682
• 3%

Child Opportunity Zone $5,000 $5,000 $5,000 $0 0% Perkins Grant $27,021 $21,305 $20,665

• $640
• 3%

McKinney Vento $41,928 $48,218 $46,771

• $1,447
• 3%

National S chool Lunch Program $850,535 $825,000 $848,000 $23,000 3% Federal Impact Aid 81-874 $1,111,644 $858,276 $772,448

• $85,828
• 10%

Federal Department of Defense $114,227 $114,000 $114,000 $0 0% Medicaid Reimbursement $380,062 $300,000 $259,254

• $40,746
• 14%

SubTotal Federal Aid $4,385,994 $4,466,895 $3,166,972 -$1,299,923

• 29%

Tuitions (Individual/ District) $0 $12,510 $12,510 $0 0% Fees, Rental, Community Activity $123,808 $119,000 $125,000 $6,000 5% Middletown S ummer S chool Program $31,005 $36,964 $36,964 $0 0% Middletown S ummer Camp Program $0 $29,280 $29,280 $0 0% Middletown Afterschool Program $5,181 $15,000 $15,000 $0 0% Gaudet S chool Planetarium $6,514 $4,000 $4,000 $0 0% Middletown Athletic Gate Receipts $30,497 $15,150 $15,150 $0 0% SubTotal Local Revenue Sources $197,005 $231,904 $237,904 $6,000 3% S cholarships/ Gifts/ Donations $6,150 $14,219 $14,219 $0 0% Parents as Teachers Fund $2,804 $0 $0 $0 +++ Middletown Educational Collaborative $5,780 $10,035 $10,035 $0 0% S afety Town $400 $500 $500 $0 0% SubTotal Contributions/Donations $15,134 $24,754 $24,754 $0 0% SubTotal Operating Revenue $13,967,019 $13,710,915 $12,738,532

• $972,383
• 7%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report (cont’d)

25

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 2012

• %

General Fund - School Department (cont’d) Revenue Appropriation From CIP $0 $431,200 $474,290 $43,090 10% Lease Proceeds $0 $0 $62,000 $62,000 +++ Assigned-General Fund $57,956 $150,000 $200,000 $50,000 33% Assigned-Capital Improvement $0 $0 $0 $0 +++ Committed-Capital Improvement $377,098 $100,000 $0

• $100,000
• 100%

Committed-S pecial Education/ Medicaid $0 $100,000 $100,000 $0 0% Restricted Grant Funds

• $174,186

$0 $0 $0 +++ Restricted-National S chool Lunch $64,530 $0 $0 $0 +++ SubTotal Use Of Fund Balance $325,398 $350,000 $300,000

• $50,000
• 14%

Total Revenue - School Department $14,292,417 $14,492,115 $13,574,822 -$917,293

• 6%

General Fund - Municipal Revenue Property Taxes-Current $38,824,255 $40,127,615 $41,561,178 $1,433,563 4% Property Taxes-Delinquent $1,421,738 $1,274,983 $1,439,721 $164,738 13% Other Taxes Levied by Municipality $122,705 $129,500 $135,741 $6,241 5% Penalties $249,337 $156,099 $225,450 $69,351 44% Investment Income $21,279 $75,000 $24,400

• $50,600 -67%

Other Fees $13,350 $0 $13,500 $13,500 +++ Other Local Revenue $197,374 $159,530 $162,193 $2,663 2% Proceeds from Disposal of Property $450 $2,500 $3,000 $500 20% Miscellaneous $86 $0 $0 $0 +++ Claims & S ettlements $112,144 $5,000 $5,000 $0 0% Licenses $131,685 $126,140 $129,618 $3,478 3% Permits $489,176 $303,790 $340,895 $37,105 12% Fines & Other Fees $530,694 $549,750 $526,250

• $23,500
• 4%

User & Program Fees $452,854 $345,060 $355,385 $10,325 3% Intra Governmental S upport $1,389,397 $1,433,991 $1,431,714

• $2,277

0% Revenues-Other $96,311 $97,972 $101,940 $3,968 4% SubTotal Operating Revenue $44,052,835 $44,786,930 $46,455,985 $1,669,055 4% Restricted Grants-in-Aid S tate S

• urces

$556,419 $424,907 443,027 $18,120 4% Restricted Grants-in-Aid - Federal Gov't $352,599 $210,000 222,800 $12,800 6% SubTotal Restricted Grants $909,018 $634,907 $665,827 $30,920 5% Bond Premium / Discount $148,288 $0 $0 $0 +++ Funds Transfer In $4,319,501 $2,925,411 $2,914,331

• $11,080

0% Capital Lease Proceeds $0 $1,375,000 $404,000

• $971,000 -71%

Use of Fund Balance $0 $0 $200,000 $200,000 +++ SubTotal Non-Operating $4,467,788 $4,300,411 $3,518,331

• $782,080 -18%

Total Revenue - Municipal $49,429,641 $49,722,248 $50,640,143 $917,895 2% Total Revenue - Municipal + School $63,722,058 $64,214,363 $64,214,965 $602 0%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report (cont’d)

26

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 2012 %

• School Department

Expenditures S alaries Expenses $20,312,188 $20,785,201 $20,593,380 -$191,821

• 1%

Overtime Expenses $252,064 $160,250 $150,250

• $10,000
• 6%

Additional Compensation $83,549 $249,522 $269,641 $20,119 8% S tipends $265,702 $288,262 $263,467

• $24,795
• 9%

Health/ Dental Benefits $3,335,849 $3,554,078 $3,570,468 $16,390 0% Retirement-Certified/ Non Certified $2,161,024 $2,644,442 $2,808,833 $164,391 6% OPEB Contributions $550,572 $526,333 $548,551 $22,218 4% Other Employee Benefits $550,331 $545,755 $637,753 $91,998 17% Unemployment Compensation $7,573 $45,000 $75,000 $30,000 67% Workers Compensation $76,504 $82,000 $84,460 $2,460 3% Other -Tuition Reimbursement $125,678 $21,986 $21,986 $0 0% SubTotal School Department Personnel $27,721,035 $28,902,829 $29,023,789 $120,960 0% Professional Educational S ervices $439,970 $487,889 $491,583 $3,694 1% Employee Training/ Development S ervices $68,366 $66,267 $26,000

• $40,267
• 61%

Other Professional S ervices $612,363 $135,185 $106,589

• $28,596
• 21%

Technical S ervices $243,411 $235,346 $272,550 $37,204 16% Other Purchased S ervices $34,799 $18,140 $10,987

• $7,153
• 39%

SubTotal Purchased Prof/Tech Services $1,398,908 $942,827 $907,709 -$35,118

• 4%

Cleaning and Disposal S ervices $48,129 $52,810 $43,661

• $9,149
• 17%

Repairs and Maintenance S ervices $350,491 $319,200 $344,188 $24,988 8% Utility S ervices $187,251 $162,659 $196,793 $34,134 21% Rentals & Other Property S ervices $284,859 $65,320 $77,133 $11,813 18% SubTotal Purchased Property Services $870,731 $599,989 $661,775 $61,786 10% S tudent Transportation $1,510,788 $1,261,299 $1,306,821 $45,522 4% Insurance $176,632 $193,751 $200,723 $6,972 4% Advertising/ Printing/ Binding/ Other $19,763 $44,462 $19,444

• $25,018
• 56%

Tuition/ Educational S ervice Agencies $1,868,203 $2,440,198 $2,378,335

• $61,863
• 3%

Food S ervice Management $814,464 $805,000 $832,125 $27,125 3% Training/ Travel/ Miscellaneous S ervices $26,332 $20,235 $12,762

• $7,473
• 37%

SubTotal Other Purchased Services $4,416,181 $4,764,945 $4,750,210 -$14,735 0% General Educational S upplies/ Materials $243,607 $129,663 $177,251 $47,588 37% Facilities/ Maintenance/ Energy $899,180 $885,655 $824,854

• $60,801
• 7%

Food S ervices $0 $20,000 $23,200 $3,200 16% Books/ Periodicals $101,403 $82,095 $132,572 $50,477 61% Technology Related S upplies/ Materials $43,379 $43,960 $47,921 $3,961 9% SubTotal Supplies & Materials $1,287,569 $1,161,373 $1,205,798 $44,425 4% Dues/ Fees/ License/ Permits $59,011 $16,672 $37,905 $21,233 127% Miscellaneous Fees $1,129 $0 $0 $0 +++ SubTotal Miscellaneous $60,139 $16,672 $37,905 $21,233 127% Land/ Building/ Technology Improvements $489,624 $770,200 $474,290 -$295,910

• 38%

Vehicles/ Equipment/ Technology Equip $502,642 $337,693 $199,055 -$138,638

• 41%

SubTotal Capital $992,266 $1,107,893 $673,345 -$434,548

• 39%

Total School Department Expenditures $36,746,830 $37,496,528 $37,260,531 -$235,997

• 1%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report (cont’d)

27

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 2012 %

• General Fund - Municipal

Expenditures S alaries Expense $6,822,457 $7,059,422 $7,400,000 $340,578 5% Overtime Expense $1,277,383 $1,103,948 $721,782

• $382,166
• 35%

Additional Compensation $516,397 $224,387 $182,287

• $42,100
• 19%

S tipends $10,273 $4,900 $20,550 $15,650 319% Health/ Medical Benefits $2,867,337 $1,566,011 $1,555,442

• $10,569
• 1%

OPEB and Retirement Payments $4,471,563 $5,038,246 $5,304,739 $266,493 5% FICA & Medicare $657,048 $659,508 $651,535

• $7,973
• 1%

Voluntary S avings Contributions $32,068 $31,704 $27,477

• $4,227
• 13%

Unemployment Compensation $6,904 $0 $0 $0 +++ Workers Compensation $46,376 $57,753 $56,509

• $1,244
• 2%

Other Employee Benefits $141,675 $155,602 $195,000 $39,398 25% SubTotal Municipal Personnel $16,849,481 $15,901,481 $16,115,321 $213,840 1% Official/ Administrative S ervices $6,732 $500 $500 $0 0% Professional Education S ervices $200 $0 $0 $0 +++ Professional Employee Development $40,386 $58,680 $53,280

• $5,400
• 9%

Other Professional S ervices $668,328 $325,321 $715,850 $390,529 120% Technical S ervices $265,217 $411,424 $254,269

• $157,155
• 38%

Other S ervices Purchased $200,571 $221,755 $248,857 $27,102 12% Cleaning & Disposal S ervices $37,297 $38,559 $38,771 $212 1% Repairs & Maintenance S ervices $455,977 $365,866 $360,070

• $5,796
• 2%

Utility S ervices $472,226 $499,557 $719,159 $219,602 44% Rentals $41,894 $33,087 $25,120

• $7,967
• 24%

Other Property S ervices Purchased $43,362 $35,068 $36,640 $1,572 4% Insurance $196,594 $224,222 $201,589

• $22,633
• 10%

Advertising $36,599 $45,800 $44,415

• $1,385
• 3%

Printing & Binding $41,825 $25,830 $27,530 $1,700 7% Travel & Training $45,461 $31,036 $33,109 $2,073 7% General S upplies $327,118 $282,401 $373,717 $91,316 32% Energy & Transportation Maintenance $733,672 $819,351 $738,462

• $80,889
• 10%

Books & Periodicals $65,088 $79,423 $78,699

• $724
• 1%

S upplies - Technology Related $9,703 $15,000 $14,890

• $110
• 1%

Dues & Fees $35,232 $37,294 $40,326 $3,032 8% Miscellaneous Expenditures $104,988

• $251,218

$269,778 $520,996

• 207%

SubTotal Municipal Operating Expenditures $3,828,470 $3,298,956 $4,275,031 $976,075 30% Land & Land Improvements $92,383 $100,000 $0

• $100,000
• 100%

Buildings $241,948 $494,500 $382,000

• $112,500
• 23%

Vehicles & Equipment $910,683 $1,852,200 $638,301 -$1,213,899

• 66%

Infrastructure $1,646,655 $824,000 $1,095,000 $271,000 33% SubTotal Capital Expenditures $2,891,669 $3,270,700 $2,115,301 -$1,155,399

• 35%

Judgements $4,300 $0 $0 $0 +++ Debt-Related Expenditures $2,532,170 $3,041,698 $3,065,785 $24,087 1% Fund Transfers Out $1,090,000 $1,205,000 $1,439,292 $234,292 19% SubTotal Other Non-Op Expenditures $3,626,470 $4,246,698 $4,505,077 $258,379 6% Total General Fund Municipal Expenditures $27,196,091 $26,717,835 $27,010,730 $292,895 1% Total Expenditures Municipal + School $63,942,921 $64,214,363 $64,271,261 $56,898 0%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report (cont’d)

28

Totals FY2011 Actual FY2012 Budget FY2013 Proposed 2013– 2012 $ 2013- 2012 % Revenue Grand Totals: $63,722,058 $64,214,363 $64,214,965 $602 0% Expenditure Grand Totals: $63,942,921 $64,214,363 $64,271,261 $56,898 0% Net Grand Totals

• $220,863

$0

• $56,296
• $56,296

+++ Municipal Appropriation to Education Variance FY2013 Proposed Proposed Appropriation to Education $23,629,413 School Department Request $23,685,709 Variance 1

• $56,296

1 S

chool Depart ment Request Exceeds Town Administ rat or Proposed Appropriat ion by $56,296

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report FY2013 Proposed Expenditures By Account Classification

29

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 201 201 3 - 2 % School Department Expenditures SubTotal Personnel $27,721,035 $28,902,829 $29,023,789 $120,960 0% Purchased Professional/ Tech S ervices $1,398,908 $942,827 $907,709

• $35,118
• 4%

Purchased Property S ervices $870,731 $599,989 $661,775 $61,786 10% Other Purchased S ervices $4,416,181 $4,764,945 $4,750,210

• $14,735

0% S upplies & Materials $1,287,569 $1,161,373 $1,205,798 $44,425 4% Miscellaneous $60,139 $16,672 $37,905 $21,233 127% SubTotal Operating $8,033,529 $7,485,806 $7,563,397 $77,591 1% SubTotal Capital $992,266 $1,107,893 $673,345

• $434,548
• 39%

Total School Department Expenditures $36,746,830 $37,496,528 $37,260,531

• $235,997
• 1%

Municipal Expenditures SubTotal Personnel $16,849,481 $15,901,481 $16,115,321 $213,840 1% SubTotal Operating $3,828,470 $3,298,956 $4,275,031 $976,075 30% SubTotal Capital $2,891,669 $3,270,700 $2,115,301 -$1,155,399

• 35%

SubTotal Judgments $4,300 $0 $0 $0 +++ SubTotal Debt $2,532,170 $3,041,698 $3,065,785 $24,087 1% SubTotal Fund Transfers Out $1,090,000 $1,205,000 $1,439,292 $234,292 19% SubTotal Other Non-Operating $3,626,470 $4,246,698 $4,505,077 $258,379 6% Total Municipal Expenditures $27,196,091 $26,717,835 $27,010,730 $292,895 1% Total Expenditures Municipal + School $63,942,921 $64,214,363 $64,271,261 $56,898 0%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report FY2013 Proposed Expenditures By Account Classification

30

Personnel - S chool $29,023,789 45% Operating - S chool $7,563,397 12% Capital - S chool $673,345 1% Personnel - Municipal $16,115,321 25% Operating - Municipal $4,275,031 7% Capital - Municipal $2,115,301 3% Debt $3,065,785 5% Transfers Out $1,439,292 2%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report FY2013 Proposed Expenditures By Function

31

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 - 2012 % Municipal Expenditures Town Administrator $257,696 $258,414 $257,968

• $446

0% Finance $654,931 $683,524 $688,703 $5,179 1% Tax Assessor $198,628 $375,639 $225,997

• $149,642
• 40%

Town Clerk $422,714 $443,771 $477,920 $34,149 8% Information Technology $455,444 $443,294 $430,982

• $12,312
• 3%

S upport S ervices $262,725 $229,178 $192,151

• $37,027
• 16%

Town Council $41,193 $45,345 $47,935 $2,590 6% Town S

• licitor

$409,122 $155,500 $178,850 $23,350 15% Boards & Committees $23,398 $20,476 $35,705 $15,229 74% General Government Total $2,725,852 $2,655,141 $2,536,211

• $118,930
• 4%

Inspection/ Building $267,636 $279,119 $286,036 $6,917 2% Planning $341,587 $239,536 $635,966 $396,430 165% Planning/Inspection Total $609,223 $518,655 $922,002 $403,347 78% Police $5,113,868 $4,978,681 $4,876,649

• $102,032
• 2%

Fire $3,612,912 $3,664,065 $3,477,805

• $186,260
• 5%

Public Safety Total $8,726,780 $8,642,746 $8,354,454

• $297,492
• 3%

Public Works Total $1,685,292 $1,584,870 $1,676,638 $91,768 6% Library Total $722,752 $740,665 $754,125 $13,460 2% S enior Center $172,132 $191,523 $200,544 $9,021 5% S ubstance Abuse Prevention $98,797 $155,486 $155,486 $0 0% Community Services Total $270,929 $347,009 $356,030 $9,021 3% Non-Specific Total (Includes Capital) $12,455,263 $12,228,749 $12,411,270 $1,962,920 16% Education Total (Includes Capital) $36,746,830 $37,496,528 $37,260,531

• $235,997
• 1%

Total Expenditures $63,942,921 $64,214,363 $64,271,261 $56,898 0%

Town of Middletown, RI Proposed Municipal Budget FY2013

General Fund Budget Consolidated Municipal / School Department Report FY2013 Proposed Expenditures By Function

32

General Government $2,536,211 4% Public S afety $8,354,454 13% Planning/ Inspection $922,002 1% Public Works $1,676,638 3% Library $754,125 1% Community S ervices $356,030 1% Education $37,260,531 58% Non-S pecific $12,411,270 19%

Town of Middletown, RI Proposed Municipal Budget FY2013

Enterprise Fund Budget Highlights Parks & Recreation Fund The Parks & Recreation Fund is used to account for revenues and expenditures related to the

• peration of the Town’ s beaches, parks, and recreational areas and programs.

Revenues are generated primarily from parking fees at S achuest Beach, campground rental fees, beach food and equipment concession revenue, mooring rental fees, and recreational program fees. The Proposed FY2013 Budget reflects no changes to the fee structure for the 2012/ 2013 season for parking and campground rental fees, the Fund’ s two maj or revenue sources. FY2013 Proposed Parking Fee Revenue: $1,152,875 FY2013 Proposed Campground Rental Fee Revenue: $206,500 The FY2013 Proposed Budget includes $15,000 for the design/ engineering of the improvements to the 3rd Beach Boat Ramp, which will be constructed in FY2014. Additional capital improvements included in this proposal include $55,000 to replace the railings at the S achuest Beach building and $65,000 to purchase and install a concrete restroom facility at the Berkeley Peckham field.

33

Sachuest Beach Parking Fees - 2012 & 2013 Season S eason Parking Pass Resident $70 S eason Parking Pass Non-Resident $140 Parking – Week Days $10 Parking – Weekends/ Holidays $20 Campground Rental Peak months - July/August Fees – 2012 & 2013 Season S easonal / Average Daily Rate $4,762.50 / $37.50 Monthly - Peak Average Daily Rate $52.50 Weekly –Peak / Average Daily Rate $462.50 / $66.25 Daily –Peak $70

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Summary

34

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 2012

• %

Revenue Investment Income $739 $7,500 $1,000

• $6,500
• 87%

Other Local Revenue $8,722 $8,223 $5,950

• $2,273
• 28%

Funds Transfer In $0 $75,000 $0

• $75,000
• 100%

Revenue from Claims & S ettlements $2,250 $0 $0 $0 +++ User & Program Fees $1,451,716 $1,629,739 $1,475,950

• $153,789
• 9%

Revenue Totals $1,463,427 $1,720,462 $1,482,900

• $237,562
• 14%

Expenditures Personnel: S alaries $655,062 $642,750 $700,867 $58,117 9% Overtime $62,909 $78,646 $71,021

• $7,625
• 10%

Additional Compensation $127 $0 $0 $0 +++ Health/ Medical Benefits $34,654 $33,854 $36,682 $2,828 8% OPEB and Retirement Payments $14,536 $17,448 $18,958 $1,510 9% FICA & Medicare $52,678 $59,805 $58,261

• $1,544
• 3%

Voluntary S avings Contributions $192 $193 $193 $0 0% Unemployment $20,740 $12,500 $13,224 $724 6% Workers Compensation $17,789 $21,086 $21,028

• $58

0% Other Employee Benefits $4,220 $1,274 $1,380 $106 8% Subtotal Personnel $862,908 $867,556 $921,614 $54,058 6% Operating: Employee Training & Development $0 $350 $425 $75 21% Other Professional S ervices $22,611 $53,400 $3,500

• $49,900
• 93%

Other S ervices Purchased $275 $2,500 $350

• $2,150
• 86%

Cleaning & Disposal S ervices $47,884 $41,620 $50,125 $8,505 20% Repairs & Maintenance S ervices $84,425 $46,205 $67,076 $20,871 45% Utility S ervices $9,925 $7,471 $14,937 $7,466 100% Rentals $35,948 $38,364 $41,349 $2,985 8% Other Property S ervices Purchased $236 $50 $400 $350 700% Insurance $68,344 $81,876 $77,554

• $4,322
• 5%

Advertising $953 $1,860 $1,860 $0 0% Printing & Binding $4,046 $6,220 $6,220 $0 0% Travel & Training $482 $350 $592 $242 69% General S upplies $126,210 $110,899 $101,098

• $9,801
• 9%

Energy & Transportation Maintenance $54,957 $62,423 $57,150

• $5,273
• 8%

Dues & Fees $4,936 $7,360 $4,100

• $3,260
• 44%

Miscellaneous Expenditures

• $630

$12,408

• $50,000
• $62,408
• 503%

Subtotal Operating $460,602 $473,356 $376,736

• $96,620
• 20%

SubTotal Local Non-profit Agency Support $43,050 $49,550 $49,550 $0 0% Subtotal Fund Transfers Out $281,815 $0 $0 $0 +++ Subtotal Capital $151,770 $330,000 $135,000

• $195,000
• 59%

Expenditure Totals $1,800,146 $1,720,462 $1,482,900

• $237,562
• 14%

Net Grand Totals: $336,719 $0 $0 $0 +++

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Summary

35

Parking Fees $1,152,875 78% Campground Fees $206,500 14% Concession Revenue $81,000 5% Program Fees $25,075 2% Mooring Fees $10,500 1% Other Local Revenue $6,950 0% FY2013 Proposed Revenue Personnel Expenses $921,614 62% Operating Expenses $376,736 26% Non-Profit Agency S upport $49,550 3% Capital $135,000 9% FY2013 Proposed Expenditures

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Revenues FY2013 Parks & Recreation Fund revenues are proj ected to be $1,482,900, -$237,562 or 14% lower than in FY2012. This decrease is mainly due to a reduction in budgeted Parking and Campground Fee revenue based on actual trends. Funds Transfer In

• Appropriation From PPV S

RF in FY2012 was budgeted to offset costs related to the installation of a Mass Emergency Notification S

• ystem. There is no appropriation budgeted in FY2013.

User & Program Fees

• S

eason Passes-Non-Residents is -$75,500 or -20% based on actual trends. During the 2010 beach season, 2,840 non-resident season passes were sold in comparison to the 2011 beach season with 2,245 non-resident season passes sold.

• Campground – Daily Fees FY2013 Proposed Budget is -$27,725, or -70%

compared to FY2012. This reduction is based on additional daily spots proposed in FY2012 that were not added to the 3rd/ Navy Beach parking area.

36

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 - 2012 % Parks & Recreation Fund Investment Income Earnings On Investments $739 $7,500 $1,000

• $6,500
• 87%

Other Local Revenue Rental Income $6,293 $2,000 $3,950 $1,950 98% Miscellaneous $2,429 $6,223 $2,000

• $4,223
• 68%

Funds Transfer In Appropriation from PPV S RF $0 $75,000 $0

• $75,000
• 100%

Revenue from Claims & Settlements Insurance Proceeds/ S ettlements $2,250 $0 $0 $0 User & Program Fees Program Fees $14,480 $28,329 $25,075

• $3,254
• 11.5%

S eason Passes-Residents $136,485 $143,825 $138,375

• $5,450
• 4%

S eason Passes-Non-Residents $302,290 $374,050 $298,550

• $75,500
• 20%

Parking Fees-Weekdays $284,955 $289,000 $284,750

• $4,250
• 1%

Parking Fees-Weekends $382,940 $376,000 $379,500 $3,500 1% Parking Fees-Holidays $56,655 $51,500 $51,700 $200 0% Concessions $76,433 $90,252 $81,000

• $9,252
• 10%

Campground-S easonal $126,440 $156,000 $142,875

• $13,125
• 8%

Campground-Daily $10,701 $39,750 $12,025

• $27,725
• 70%

Campground-Monthly $50,419 $60,908 $51,600

• $9,308
• 15%

Mooring Fees-S easonal $8,285 $18,250 $8,500

• $9,750
• 53%

Mooring Fees-Transient $1,633 $1,875 $2,000 $125 7% Revenue Totals $1,463,427 $1,720,462 $1,482,900 -$237,562

• 14%

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Revenues (cont’d) User & Program Fees (cont’d)

• Mooring Fees – S

easonal included potential additional moorings in the FY2012 Budget, not proposed in FY2013. The FY2013 proposal is -$9,750 or 53% less than FY2012 based on no changes to the number of moorings available. 2010 Beach Season vs. 2011 Beach Season – Parking Lot Sales Trend The maj or source of Parks & Recreation Fund revenue is from S achuest Beaches (2nd & 3rd) parking fees collected. The revenue trend is affected by favorable/ unfavorable weather throughout the beach season, which begins on Memorial Day weekend and ends after Labor Day

• weekend. There are approximately 1,500 parking spaces in the main and satellite lots.

37

Description 2010 Season # Sold 2011 Season # Sold S eason Pass – Resident 3,545 3,348 S eason Pass - 3rd Beach Only 532 429 S eason Pass – Non-Resident 2,840 2,245 Total Season Passes 6,917 6,022 S pots - S achuest Beach – All Lots 51,078 50,533 S pots - 3rd Beach Lot 1,643 1,821 Total Cash Parking Spots 52,721 52,354 Total All Parking Spots 59,638 58,376 Total $ $1,164,390 $1,155,855

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Expenditures – By Account Classification

38

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 - 2012 % Expenditures Salaries Expense S alaries $652,117 $636,282 $694,072 $57,790 9% Longevity $2,945 $6,468 $6,795 $327 5% Overtime Expense Overtime-Regular $62,909 $78,646 $71,021

• $7,625
• 10%

Additional Compensation Vacation Payoff $127 $0 $0 $0 Health/Medical Benefits Buyback Payments-Medical $703 $0 $0 $0 Uniform Allowance $0 $600 $600 $0 0% Health & Med-S elf Insured-Active $31,788 $31,006 $33,755 $2,749 9% Dental-S elf Insured-Active $2,164 $2,248 $2,327 $79 4% OPEB and Retirement Payments Pension-MERS $14,536 $17,448 $18,958 $1,510 9% FICA & Medicare FICA $42,674 $48,466 $47,232

• $1,234
• 3%

Medicare $10,005 $11,339 $11,029

• $310
• 3%

Voluntary Savings Contributions 457 Plan Contributions $192 $193 $193 $0 0% Unemployment Compensation Unemployment Insurance $20,740 $12,500 $13,224 $724 6% Workers Compensation Workers Compensation Insurance $17,789 $21,086 $21,028

• $58

0% Other Employee Benefits Life Insurance $1,170 $1,274 $1,380 $106 8% Compensated Absences Expense $3,050 $0 $0 $0 +++ Sub Total Personnel $862,908 $867,556 $921,614 $54,058 6%

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Expenditures – By Account Classification (cont’d)

39

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 - 2012 % Professional Employee Training Conferences/ Workshops $0 $350 $425 $75 21% Other Professional Services S ervices-Auditing/ Actuarial $1,000 $1,000 $1,000 $0 0% S ervices-Other Professional $21,611 $52,400 $2,500

• $49,900
• 95%

Other Services Purchased Other Charges $275 $2,500 $350

• $2,150
• 86%

Cleaning & Disposal Services Rubbish Disposal S ervices $20,121 $20,121 $22,560 $2,439 12% S ewage Disposal $27,763 $21,499 $27,565 $6,066 28% Repairs & Maintenance Services Maint/ Rprs-Fixtures & Equipmnt $10,795 $5,465 $9,150 $3,685 67% Maint/ Repairs-General $33,229 $20,500 $27,436 $6,936 34% Maint/ Rprs-Municipal Vehicles $20,566 $10,000 $20,250 $10,250 103% Maint/ Rprs-Electrical $13,344 $1,000 $1,000 $0 0% Maint/ Rprs-Plumbing $2,783 $2,500 $2,500 $0 0% Maint/ Rprs-Radio Equipment $1,067 $2,690 $2,690 $0 0% Water Quality Testing $2,640 $4,050 $4,050 $0 0% Utility Services Water $6,322 $4,987 $12,765 $7,778 156% Telephone $3,603 $1,524 $1,692 $168 11% Wireless Communications $0 $480 $0

• $480
• 99%

Internet Connectivity $0 $480 $480 $0 0% Rentals Rental-Land and Buildings $15,042 $15,494 $15,959 $465 3% Rental-Equipment and Vehicles $19,418 $21,070 $23,590 $2,520 12% Rental-Uniform $1,488 $1,800 $1,800 $0 0% Other Property Services Purchased Alarm and Fire S afety S ervices $100 $0 $350 $350 Vehicle Registration/ Inspection $136 $50 $50 $0 0% Insurance Insurance-Property & Liability $67,593 $74,376 $70,214

• $4,162
• 6%

Insurance-Flood $0 $5,000 $5,340 $340 7% Insurance Deductible Expense $751 $2,500 $2,000

• $500
• 20%

Advertising Advertising Costs $953 $1,860 $1,860 $0 0% Printing & Binding Printing $4,046 $6,220 $6,220 $0 0% Travel & Training Travel & Meetings-Municipal $482 $350 $592 $242 69% General Supplies General S upplies & Materials $76,327 $40,485 $43,054 $2,569 6% Gen Office S upplies/ Materials $1,093 $1,175 $975

• $200
• 17%

Uniform/ Wearing Apparel S upplies $3,398 $5,400 $5,050

• $350
• 6%

Medical S upplies $1,150 $2,950 $3,450 $500 17% Preparation & Winterization $24,537 $42,519 $40,519

• $2,000
• 5%

S mall Equip Purch-General $16,005 $7,200 $4,050

• $3,150
• 44%

S mall Equip Purchases-Radio/ Communication $3,700 $11,170 $4,000

• $7,170
• 64%

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Expenditures – By Account Classification (cont’d)

40

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 - 2012 % Energy & Transportation Maintenance Gasoline $9,210 $14,932 $13,050

• $1,882
• 13%

Diesel Fuel $8,489 $13,421 $10,400

• $3,021
• 23%

Propane $3,654 $3,156 $4,500 $1,344 43% Paint $0 $500 $1,000 $500 100% Electricity $17,694 $20,214 $16,500

• $3,714
• 18%

Electrical S upplies $3,157 $0 $0 $0 Custodial S upplies $8,923 $7,900 $9,400 $1,500 19% Traffic S igns $3,831 $2,300 $2,300 $0 0% Dues & Fees Professional Organization Fees $0 $0 $50 $50 +++ Other Dues and Fees $4,936 $7,360 $4,050

• $3,310
• 45%

Miscellaneous Expenditures Cash Over/ S hort

• $630

$0 $0 $0 +++ Net Contingency $0 $12,408

• $50,000
• $62,408
• 503%

Sub Total Operating $460,602 $473,356 $376,736

• $96,620
• 20%

Sub Total Local Non-Profit Agency Support $43,050 $49,550 $49,550 $0 0% Sub Total Transfer Out To General Fund $281,815 $0 $0 $0 +++ Land & Land Improvements Land Improvements $60,322 $150,000 $15,000 -$135,000

• 90%

Buildings Buildings $0 $0 $65,000 $65,000 +++ Building Improvements $0 $0 $55,000 $55,000 +++ Vehicles & Equipment Vehicles $47,454 $0 $0 $0 +++ Equipment $43,994 $180,000 $0 -$180,000

• 100%

Sub Total Capital $151,770 $330,000 $135,000 -$195,000

• 59%

Expenditure Totals $1,800,146 $1,720,462 $1,482,900 -$237,562

• 14%

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Expenditures – By Account Classification (cont’d) Personnel

• S

alaries expense is budgeted to increase $57,790, or 9%

• ver FY2012. The Town continues to

attract and retain the most qualified, experienced, and mature staff and management for the beach, lifeguard, harbor and campground operations. The FY2013 Budget Proposal also includes two additional seasonal Parks & Grounds employees to assist with the on-going parks and grounds maintenance operation. Operating

• Other Professional S

ervices is budgeted to decrease by -$49,900, or -95% as a result of a S achuest Town Beach Event Center Business Plan budgeted in FY2012 and not FY2013, and the removal of costs for outside landscaping services used in FY2012. The FY2013 Budget Proposal includes two additional seasonal parks and grounds maintenance staff to handle these landscaping tasks outsourced last fiscal year. Utility Services

• The Proposed Budget includes an increase of $7,778, or 156%

as a result of City of Newport water rate increases of 35.31% in FY2013 over FY2012 rates, to fund the required upgrade to the regional Water Treatment Facility.. Energy & Transportation Maintenance

• The Proposed Budget includes a reduction of -$3,714 or -18%

for electricity costs as a result of the Town’ s participation in the RI Energy Aggregation Program (REAP) through the RI League of Cities & Towns. The Town recently locked into a 2-year contract with Direct Energy for a 25% reduction in the electricity supply charge. Capital Expenditures

• Capital expenditures will decrease by-$195,000, 0r – 59%

In FY2013. Included in the FY2013 Proposed Capital Budget is $15,000 for the design and engineering of improvements to the 3rd Beach boat ramp facility, which is scheduled to be constructed in FY2014. Also included in FY2013 is $65,000 to purchase and install a concrete restroom facility at the Berkeley Peckham field, and $55,000 to replace the hand railings at the S achuest Beach building.

41

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Expenditures – By Department

42

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 - 2012 % %

• f

Total Expenditures By Department Beach Operations $778,176 $982,037 $749,060

• $232,977
• 24%

51% Lifeguards $192,380 $230,317 $229,507

• $810

0% 15% Parks & Grounds $204,674 $150,475 $209,625 $59,150 39% 14% Recreation $88,844 $91,714 $80,899

• $10,815
• 12%

5% Campground $52,667 $48,020 $46,480

• $1,540
• 3%

3% Harbor Master $29,262 $29,054 $45,636 $16,582 57% 3% S ecurity $21,193 $22,925 $22,561

• $364
• 2%

2% Non-S pecific $432,949 $165,920 $99,132

• $66,788
• 40%

7% Expenditure Total: $1,800,146 $1,720,462 $1,482,900

• $237,562
• 14%

100%

• Beach Operations: The FY2013 Proposed Budget is -$232,977, or -24%

compared to FY2012 mainly due to the net effect of reduced capital expenditures in FY2013 of $275,000, increased compensation costs and additional Carex Kobomugi (dune grass) management program costs.

• Parks & Grounds: The FY2013 Proposed Budget is an increase of $59,150, or 39%
• ver FY2012

primarily due to the proposed purchase and installation of a concrete restroom facility at Berkeley Peckham field.

• Recreation – The FY2013 Proposed Budget is -$10,815, or -12%

compared to FY2012 due to the removal of the S ummer Camp program form the Town Recreation program budget. This program was transferred to the S chool Department last summer. The Proposed FY2013 Budget does include programmatic expenses and corresponding revenues for the Middletown Arts Committee, softball, wrestling, basketball, summer tennis lessons and flag football.

• Harbormaster – The FY2013 Proposed Budget is an increase of $16,582, or 57%
• ver

FY2012, primarily due to the proposed cost for the design and engineering of upgrades to the 3rd Beach boat ramp facility, to be constructed in FY2014.

Town of Middletown, RI Proposed Municipal Budget FY2013

Parks & Recreation Fund Expenditures – By Department

43

Beach Operations $749,060 51% Lifeguards $229,507 15% Parks & Grounds $209,625 14% Recreation $80,899 5% Campground $46,480 3% Harbormaster $45,636 3% S ecurity $22,561 2% Non-S pecific $99,132 7%

FY2013 Proposed

Town of Middletown, RI Proposed Municipal Budget FY2013

Enterprise Fund Budget Highlights Sewer Fund The S ewer Fund is used to account for revenues and expenditures related to the construction, maintenance, operation and repair of the Town’ s wastewater collection system Infrastructure in order to ensure the proper collection and disposal of sewage in the Town. Middletown sewage is treated at the City of Newport Wastewater Treatment Facility. The Town is billed by the City of Newport for its proportionate share of the operating costs at the Facility. The Town is also billed annually by the City for its share of any excess inflow & infiltration into the system, and for customer service charges to collect and maintain water meter readings and data for the connected water users in Town. Revenues are generated primarily from user fees that are based on annual water consumption provided to the Town by the City of Newport Water Department. S ewer infrastructure Betterments (S ewer Construction), financed with long-term debt, are also billed out to those residents impacted by the improvement, based on their proportional share of the betterment cost, spread out over the loan period. For FY2013, the proposed sewer maintenance rate will be $13.05/ 1,000 gallons, an increase of $0.90/ 1,000 gallons or 7%

• ver the FY2012 rate. The City of Newport consumption data shows

that the average annual single-family usage has decreased by 4,002 gallons from 48,419 gallons to 44,417 gallons, which is an 8% decrease in consumption as compared to last year. This results in a -1.5%

• r $8.65 decrease in the average per user charge in FY2013 from $588.29 to $579.64.

The City of Newport Customer S ervice charge will decrease from $37.27/ connection to $32.92/ per connection, a decrease of $4.35/ connect ion or 12% decrease compared to FY2012. The Town continues to actively address inflow & infiltration issues and sewer infrastructure, as reflected in the capital budget. The Proposed capital budget includes $465,000 to replace the remaining Orangeburg sewer pipe, $185,000 for continued S S ES Inflow & Infiltration investigation, $55,000 for the upper Easton’ s Point sewer improvement proj ect, and $75,000 for the West S ide Pump S tation Consolidation study. FY2013 Debt service costs include $336,600 in debt service reimbursement to the City of Newport for the Town’ s share of the City’ s $15M Long Wharf Pump S tation Force Main repair and replacement proj ect cost.

44

Town of Middletown, RI Proposed Municipal Budget FY2013

Enterprise Fund Budget Highlights Sewer Fund – FY2013 Sewer Maintenance Charges

45

ANNUAL WATER FEE PER TOTAL DESCRIPTION # USERS USAGE (GALS) 1000 GALS DOLLARS Connected Newport Water Users 4,464 333,053,006 13.05 $4,346,342 Connected Well Water Users 200-METERED WELL 7 68,439 13.05 893 201-1 FAMILY 412 19,997,047 13.05 260,961 202-2 FAMILY 37 3,655,170 13.05 47,700 203-3 FAMILY 1 290,514 13.05 3,791 205-S MALL BUS INES S 6 430,374 13.05 5,616 Subtotal 463 24,441,544 13.05 $318,962 Unconnected Property - Charged 359 20.00 $7,180 TOTAL 5,286 357,494,550 $4,672,484 FY2013 BUDGET Sewer Use Total $ $4,672,484 Less Uncollectible ($40,000) Proposed Budget $4,632,484 Excess I & I Charge $0 Customer Svc Charge $146,956 Description # Users Average Single Family Usage (gals) Rate Average Single Family Charge Total Water (Newport & Well) Accounts 4,876 44,417 $13.05 $579.64 Total Newport Customer Service Charge 4,464 $32.92 $32.92 Excess Inflow & Infiltration (I&I) Charge 4,876 $0.00 $0.00 TOTAL AVERAGE PER USER CHARGE $612.56

Town of Middletown, RI Proposed Municipal Budget FY2013

Enterprise Fund Budget Highlights Sewer Fund Summary

46

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 2012 %

• Revenue

S ewer Maintenance/ Construction $4,864,077 $5,187,110 $5,049,320

• $137,790
• 3%

Penalties $23,549 $15,000 $18,275 $3,275 22% Investment Income $6,934 $9,000 $6,500

• $2,500
• 28%

Other Revenue from Local S

• urces

$8,405 $7,000 $0

• $7,000
• 100%

Loan Proceeds $0 $1,500,000 $0 -$1,500,000

• 100%

Permits $1,950 $1,250 $1,500 $250 20% Budgeted Use of Fund Balance $0 $4,364,500 $0 -$4,364,500

• 100%

Revenue Total $4,904,915 $11,083,860 $5,075,595 -$6,008,265

• 54%

Expenditures Personnel: S alaries $318,440 $350,589 $356,255 $5,666 2% Overtime $57,346 $53,291 $56,368 $3,077 6% Additional Compensation $762 $0 $0 $0 +++ Health/ Medical Benefits $86,934 $87,947 $87,295

• $652
• 1%

OPEB and Retirement Payments $124,236 $93,980 $108,155 $14,175 15% FICA & Medicare $26,980 $30,899 $31,717 $818 3% Voluntary S avings Contributions $165 $168 $168 $0 0% Workers Compensation $18,252 $22,115 $21,100

• $1,015
• 5%

Other Employee Benefits $2,781 $3,679 $3,464

• $215
• 6%

Subtotal Personnel $635,895 $642,668 $664,522 $21,854 3% Operating: Other Professional S ervices $366,327 $44,000 $45,000 $1,000 2% Technical S ervices $6,294 $132,594 $153,956 $21,362 16% Cleaning & Disposal S ervices $814,343 $1,057,645 $875,974

• $181,671
• 17%

Repairs & Maintenance S ervices $122,397 $137,000 $117,000

• $20,000
• 15%

Utility S ervices $1,405 $1,176 $1,403 $227 19% Rentals $7,613 $3,750 $4,300 $550 15% Other Property S ervices Purchased $17,448 $19,604 $21,515 $1,911 10% Insurance $72,349 $87,935 $78,764

• $9,171
• 10%

Printing & Binding $0 $500 $500 $0 0% Travel & Training $451 $400 $400 $0 0% General S upplies $16,874 $59,770 $64,770 $5,000 8% Energy & Transportation Maintenance $165,321 $150,052 $146,900

• $3,152
• 2%

Dues & Fees $0 $200 $200 $0 0% Miscellaneous Expenditures $0 $9,773 $0

• $9,773
• 100%

Subtotal Operating $1,590,822 $1,704,399 $1,510,682

• $193,717
• 11%

Subtotal Capital $1,092,166 $6,993,500 $1,203,500 -$5,790,000

• 83%

Subtotal Debt-Related Expenses $1,221,474 $1,743,293 $1,696,891

• $46,402
• 3%

Expenditure Totals $4,540,356 $11,083,860 $5,075,595 -$6,008,265

• 54%

Net Grand Totals: $364,559 $0 $0 $0 +++

Town of Middletown, RI Proposed Municipal Budget FY2013

Sewer Fund Summary

S ewer Maintenance $4,839,087 95% S ewer Construction $63,277 1% Customer S ervice Charge $146,956 3% Other Local Revenue $26,275 1% FY2013 Proposed Revenue Personnel Expenses $664,522 13% Capital $1,203,500 24% Operating Expenses $1,510,682 30% Debt Related Expenses $1,696,891 33% FY2013 Proposed Expenditures

47

Town of Middletown, RI Proposed Municipal Budget FY2013

Sewer Fund Revenues FY2013 S ewer Fund Revenues are proj ected to be $5,075,595, -$6,008,265 or 54% lower than in

• FY2012. This decrease is mainly due to RI Clean Water Loan Proceeds budgeted in FY2012, not

included in the FY2013 Proposal, and $4,364,500 Use of Fund Balance that was budgeted in FY2012 for one-time capital improvements. Sewer Maintenance/Construction

• S

ewer Maintenance - Current revenue is proj ected to be $4,633,262, an increase of $88,472 or 2%

• ver FY12. The rate charged to sewer users will increase to $13.05/ 1,000 gallons due to reduced

consumption overall. The average single family total sewer maintenance bill will decrease by $8.65 or -1% as compared to FY2012.

• S

ewer Maintenance- - Delinquent revenue is expected to decline slightly by -$3,940 or -2% compared with FY2012.

• S

ewer Construction revenue budgeted reflects the annual payments of principal and interest for sewer betterments.

• Newport Billing Charge revenue is based on the 2011 invoice to the Town from the City of

Newport Water Department for the Town’ s share of the City’ s customer service costs related to collecting and maintaining water meter readings and data, billed out to the sewer users. Penalties

• Penalty revenue is proj ected to be $3,275 or 22%

higher than what was budgeted in FY2012.

48

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 201 2012 3 - % Sewer Fund Sewer Maintenance/Construction S ewer Maintenance-Current $4,593,363 $4,544,790 $4,633,262 $88,472 2% S ewer Maintenance-Delinquent $149,126 $209,773 $205,825

• $3,948
• 2%

S ewer Construction $12,387 $64,500 $63,277

• $1,223
• 2%

S ewer Inflow & Infiltration $45,295 $209,067 $0

• $209,067
• 100%

Newport Billing Charge $63,906 $158,980 $146,956

• $12,024
• 8%

Penalties Penalties $23,549 $15,000 $18,275 $3,275 22% Investment Income Earnings On Investment s $6,934 $9,000 $6,500

• $2,500
• 28%

Other Local Revenue Rental Income $8,400 $7,000 $0

• $7,000
• 100%

Loan Proceeds Proceeds from Loans $0 $1,500,000 $0

• $1,500,000
• 100%

Permits Permits-Other $1,950 $1,250 $1,500 $250 20% Budgeted Use of Fund Balance $0 $4,364,500 $0

• $4,364,500
• 100%

Revenue Totals $4,904,915 $11,083,860 $5,075,595

• $6,008,265
• 54%

Town of Middletown, RI Proposed Municipal Budget FY2013

Sewer Fund Revenues (cont’d) Other Local Revenue

• Other Local Revenue includes an inter-departmental fee for rental of the Town’ s vacuum

truck by the public works department to clean catch basins. The rental fee is not budgeted in FY2013 while the Town reviews it’ s storm water and asset management program. Loan Proceeds

• Proceeds From Loans in FY2013 is budgeted at $0. In FY2012 the Town borrowed $1.5M from

Rhode Island Clean Water Financing Agency to fund the Continental/ Valley Neighborhood sewer upgrade proj ect. Budgeted Use of Fund Balance

• The Use of Fund Balance was budgeted in FY2012 to fund sewer improvements in the

Commodore Perry Village neighborhood, on Forest Avenue, and at the Middletown/ Newport city

• line. In FY2013, current operational revenues will fund the Pay As You Go (PAYG) financing of

sewer improvement proj ects. Sewer Maintenance Usage / Charges Trend

1 City of Newport data shows that average single family consumption is down 8%

Sewer Fund Expenditures FY2013 Total S ewer Fund Expenses are proj ected to be $5,075,595, -$6,008,265 or -54% lower than in FY2012. This decrease is mainly due to non-recurring capital costs that were funded through the Use of Fund Balance last year. In addition, excess Inflow & Infiltration (I&I) into the sewer system above contractual limits, did not occur last fiscal year, which will reduce the Town’ s sewage disposal costs in FY2013 as compared to FY2012. The excess I&I charge for FY2012 was $209,067, and in FY2013 the excess I&I charge is $0.

49

Usage / Charges FY2010 FY2011 FY2012 FY20131 S ewer Maintenance Rate/ 1,000 gallons $11.20 $12.15 $12.15 $13.05 Annual Average S ingle-Family Water Usage (gals) 54,278 49,770 48,419 44,417 Annual Average Per-User Charge $607.89 $604.71 $588.29 $579.64 Inflow & Infiltration Charge $0 $22.02 $44.10 $0 Customer S ervice Charge $31.75 $33.64 $37.27 $32.92 Total Average Per-User Charge $639.64 $660.37 $669.66 $612.56 Total Annual Change % 3.2% 1.4%

• 8.5%

Town of Middletown, RI Proposed Municipal Budget FY2013

Sewer Fund Expenditures

50

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 2012

• %

Salaries Expense Regular S alaries $305,947 $332,939 $337,906 $4,967 1% Longevity $12,493 $17,650 $18,349 $699 4% Overtime Expense Overtime-Regular $57,346 $53,291 $56,368 $3,077 6% Additional Compensation Vacation Payoff $762 $0 $0 $0 +++ Health/Medical Benefits Buyback Payments-Medical $602 $787 $817 $30 4% Uniform Allowance $0 $900 $400

• $500
• 56%

Health & Med-S elf Insured-Active $81,306 $80,639 $81,750 $1,111 1% Buyback Payments-Dental $0 $36 $38 $2 6% Dental-S elf Insured-Active $5,026 $5,585 $4,290

• $1,295
• 23%

OPEB and Retirement Payments Pension-Private-Active $104,662 $16,441 $17,040 $599 4% Pension-MERS $19,574 $25,627 $27,765 $2,138 8% Pension-Private-Retiree $0 $51,912 $63,350 $11,438 22% FICA & Medicare FICA $21,849 $25,073 $25,736 $663 3% Medicare $5,131 $5,826 $5,981 $155 3% Voluntary Savings Contributions 457 Plan Contributions $165 $168 $168 $0 0% Workers Compensation Workers Compensation Insurance $18,252 $22,115 $21,100

• $1,015
• 5%

Other Employee Benefits Life Insurance $1,190 $1,539 $1,634 $95 6% Employee Health & S afety $0 $1,240 $930

• $310
• 25%

Meal Allowance $0 $900 $900 $0 0% Compensated Absences Expense $1,591 $0 $0 $0 +++ Sub Total Personnel $635,895 $642,668 $664,522 $21,854 3% Other Professional Services S ervices-Auditing/ Actuarial $5,000 $5,000 $4,000

• $1,000
• 20%

S ervices-Other Professional $361,327 $39,000 $41,000 $2,000 5% Technical Services Data Processing S ervices $0 $125,594 $146,956 $21,362 17% S

• ftware License Fees

$6,294 $7,000 $7,000 $0 0%

Town of Middletown, RI Proposed Municipal Budget FY2013

Sewer Fund Expenditures (cont’d)

51

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 201 201 3 - 2 % Cleaning & Disposal Services S ewage Disposal $814,343 $1,057,645 $875,974

• $181,671
• 17%

Repairs & Maintenance S ervices Maint/ Rprs-Fixtures & Equipmnt $36,426 $62,000 $52,000

• $10,000
• 16%

Maint/ Repairs-General $6,137 $26,500 $16,500

• $10,000
• 38%

Maint/ Rprs-Municipal Vehicles $10,959 $7,000 $7,000 $0 0% Water Quality Testing $0 $1,000 $1,000 $0 0% Maint/ Rprs-S ewer Line $68,875 $40,500 $40,500 $0 0% Utility Services Water $227 $150 $371 $221 147% Telephone $1,178 $1,026 $1,032 $6 1% Wireless Communications $0 $0 $0 $0 Rentals Rental-Equipment and Vehicles $5,327 $1,000 $1,000 $0 0% Rental-Uniform $2,286 $2,750 $3,300 $550 20% Other Property Services Purchased Alarm and Fire S afety S ervices $17,422 $19,354 $21,265 $1,911 10% Vehicle Registration/ Inspection $26 $250 $250 $0 0% Insurance Insurance-Property & Liability $65,793 $77,935 $68,764

• $9,171
• 12%

Insurance Deductible Expense $6,556 $10,000 $10,000 $0 0% Printing & Binding Printing $0 $500 $500 $0 0% Travel & Training Travel & Meetings-Municipal $451 $400 $400 $0 0% General Supplies General S upplies & Materials $10,035 $11,565 $11,565 $0 0% Gen Office S upplies/ Materials $140 $750 $750 $0 0% Medical S upplies $0 $375 $375 $0 0% Chemicals $2,321 $3,500 $3,500 $0 0% S mall Equip Purch-General $2,593 $42,580 $47,580 $5,000 12% S mall Equip Purch-Furn&Fixtures $1,785 $1,000 $1,000 $0 0% Energy & Transportation Maintenance Natural Gas $1,725 $1,937 $2,975 $1,038 54% Gasoline $4,367 $4,232 $5,250 $1,018 24% Diesel Fuel $19,292 $18,238 $19,375 $1,137 6% Electricity $139,938 $125,345 $119,000

• $6,345
• 5%

Custodial S upplies $0 $300 $300 $0 0% Dues & Fees Professional License Fees $0 $200 $200 $0 0%

Town of Middletown, RI Proposed Municipal Budget FY2013

Sewer Fund Expenditures (cont’d)

52

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 20 20 13 - 12 % Miscellaneous Expenditures Net Contingency $0 $9,773 $0

• $9,773
• 100%

Subtotal Operating $1,590,822 $1,704,399 $1,510,682

• $193,717
• 11%

Vehicles & Equipment/Infrastructure Equipment $403,815 $0 $0 $0 +++ S ewer S ystems $688,351 $6,993,500 $1,203,500

• $5,790,000
• 83%

Subtotal Capital $1,092,166 $6,993,500 $1,203,500

• $5,790,000
• 83%

Debt-Related Expenses Bond Principal Payment $577,155 $572,236 $573,473 $1,237 0% Bond Interest Payment $151,482 $141,012 $129,341

• $11,671
• 8%

S pecial Rev Bond Principal Pymnt $288,000 $288,000 $438,000 $150,000 52% S pecial Rev Bond Interest Pymnt $66,961 $71,332 $99,435 $28,103 39% Newport Bond Reimbursement-Principal $0 $173,809 $176,491 $2,682 2% Newport Bond Reimbursement- Int erest $0 $175,893 $160,140

• $15,753
• 9%

Bond Issuance/ Related Expenses $0 $51,000 $0

• $51,000
• 100%

Water Pollution Control - Newport $120,011 $120,011 $120,011 $0 0% Other Debt-Related Costs $17,865 $150,000 $0

• $150,000
• 100%

Subtotal Debt-Related Expenses $1,221,474 $1,743,293 $1,696,891

• $46,402
• 3%

Expenditure Totals $4,540,356 $11,083,860 $5,075,595

• $6,008,265
• 54%

Town of Middletown, RI Proposed Municipal Budget FY2013

Sewer Fund Expenditures (cont’d) Personnel

• Personnel costs are budgeted for one Foreman, three Labor Operators, one Assessing

Clerk, and allocated costs for other managerial and administrative positions. FY13 costs are proj ected to increase by $21,854 or 3%

• ver FY2012, which is primarily due to increased pension

contribution costs. Operating

• Cleaning & Disposal S

ervices is proj ected to decrease in FY2013 by -$181,671 or -17% , primarily due to the effect of no charge for additional inflow & infiltration (I & I) into the sewage treatment system last year, above contractual levels.

53

$500,000 $550,000 $600,000 $650,000 $700,000 2010 2011 2012 2013 Proposed

Personnel Costs - Trend

Budget Actual $1,500,000 $1,625,000 $1,750,000 $1,875,000 2010 2011 2012 2013 Proposed

Operating Costs - Trend

Budget Actual

Town of Middletown, RI Proposed Municipal Budget FY2013

Sewer Fund Expenditures (cont’d) Capital Expenditures

• Capital expenditures will decrease in FY2013 by-$5,790,000, or -83%

, due to several large one- time sewer improvement capital proj ects budgeted in FY2012. In FY2013, $1,203,500 is budgeted for several sewer infrastructure maintenance and improvement proj ects. Debt-Related Expenses

• Debt-Related expenses will decrease by -$46,402 or -3%

in FY2013 compared with FY2012 primarily due to a $150,000 payment required in FY2012 to fund the Debt S ervice Reserve for the $1.5M 2011 Clean Water Revenue Bond.

• Also included in Debt-Related Expenses is $336,631 in debt service reimbursement payments to

the City of Newport for the Town’ s annual share of the costs to finance the $15M Long Wharf Pump S tation Force Main repair and replacement proj ect

54

Town of Middletown, RI Proposed Municipal Budget FY2013

Enterprise Fund Budget Highlights Refuse & Recycling Fund The Refuse & Recycling Fund is used to account for revenue and expenditures associated with the management, control and enhancement of the Middletown residential Pay As You Throw (PAYT) refuse and recycling program and for other curbside collection costs. The PAYT program currently services 4,100 + residents, providing curbside collection of refuse, yard waste, and recyclable materials. Participants are required to purchase town garbage bags for their refuse, and pay an annual permit fee, to participate. Totes are provided to the resident by the Town. The program also provides coordination of bulky waste pick-up, hosts several “ Bulky Waste Amnesty Days” , and provides areas to discard e-waste, motor oil, cardboard and scrap metal for residents at no cost. For FY2013, the Town bag rates will remain the same at $1.75 each for the 15-gallon bag and $2.00 each for the 30-gallon bag. The annual permit fee will also remain at $150.00 in FY2013. Part-time residents may enroll in the program for a $75 annual permit fee beginning in May of each year. Total Revenues of $1,131,470 are proposed for FY2013, which includes the Town’ s anticipated share from the Materials Recycling Facility (MRF) recyclables profit sharing program through RI Resource Recovery Corporation. Total Expenditures of $1,131,470 are proposed for the upcoming fiscal year. The Town is preparing to issue an RFP for Refuse/ Recycling Collection S ervices, as the current contract with the Town’ s service provider, Wast e Management of RI, will expire at the end of October 2012. The proposed budget includes a $7,000 credit received annually from RI Resource Recovery to adj ust the tipping fee charged from $32/ ton down to $29/ ton based on the Town’ s favorable recycling rate, currently running at 41% .

55

Town of Middletown, RI Proposed Municipal Budget FY2013

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 - 2012 % Revenue Investment Income $204 $70 $1,120 $1,050 1500% Other Revenue from Local S

• urces

$150 $12,500 $30,000 $17,500 140% Restricted Grants-in-Aid -S tate $120,250 $0 $0 $0 +++ Funds Transfer In $221,665 $0 $0 $0 +++ Proceeds from Disposal of Property $0 $0 $60,000 $60,000 +++ Permits $601,781 $601,600 $613,750 $12,150 2% User & Program Fees $342,231 $421,825 $426,600 $4,775 1% Revenue Total $1,286,281 $1,035,995 $1,131,470 $95,475 9% Expenditures Personnel: S alaries $45,255 $47,185 $47,185 $0 0% Overtime $1,931 $0 $0 $0 +++ Health/ Medical Benefits $3,466 $3,476 $3,519 $43 1% OPEB and Retirement Payments $2,254 $5,294 $5,714 $420 8% FICA & Medicare $3,875 $3,886 $3,873

• $13

0% Other Employee Benefits $476 $480 $504 $24 5% Subtotal Personnel $57,257 $60,321 $60,795 $474 1% Operating: Other Professional S ervices $0 $500 $500 $0 0% Other S ervices Purchased $1,116 $3,420 $1,540

• $1,880
• 55%

Cleaning & Disposal S ervices $921,792 $953,744 $1,004,090 $50,346 5% Repairs & Maintenance S ervices $1,507 $1,273 $750

• $523
• 41%

Advertising $297 $250 $950 $700 280% Printing & Binding $4,409 $4,200 $4,097

• $103
• 2%

Travel & Training $50 $0 $0 $0 +++ General S upplies $48,327 $48,941 $46,740

• $2,201
• 4%

Energy/ Transportation Maintenance $851 $1,104 $1,219 $115 10% Dues & Fees $0 $50 $50 $0 0% Miscellaneous Expenditures $0

• $37,808

$10,739 $48,547

• 128%

Subtotal Operating $978,350 $975,674 $1,070,675 $95,001 10% Subtotal Debt-Related Expenses $221,474 $0 $0 $0 +++ Expenditure Total $1,257,081 $1,035,995 $1,131,470 $95,475 9% Net Grand Totals: $29,200 $0 $0 $0 +++ Refuse & Recycling Fund Summary

56

Town of Middletown, RI Proposed Municipal Budget FY2013

Refuse & Recycling Fund Summary Other Local Revenue $30,000 3% Proceeds from Disposal of Property $60,000 5% Permits $613,750 54% User & Program Fees $426,600 38% FY2013 Proposed Revenue Personnel Expenses $60,795 5% Operating Expenses $1,070,675 95% FY2013 Proposed Expenditures

57

Town of Middletown, RI Proposed Municipal Budget FY2013

Refuse & Recycling Fund Revenues FY2013 Refuse & Recycling Fund Revenues are proj ected to be $1,131,470, $95,475

• r 9%

higher than in FY2012. This increase is mainly due to the budgeted one-time sale of excess totes as a result of the Town migrating to single-stream recycling collection. Other Revenue From Local S

• urces
• The RI Resource Recovery Recycling Rebate Program is expected to generate $30,000 next fiscal

year, a $17,500 or 140% increase over the current fiscal year. The Town currently has a recycling rate of 41% , with 1,570 tons of recyclable materials tipped last year.

• S

ale of Personal & Real Property - The one-time sale of excess totes as a result of migrating to single stream recycling is expected to generate $60,000 in FY2013. Permits

• Annual Refuse Disposal Permit Fees are budgeted to increase by $12,150 or 2%

next fiscal year. The introduction of the ACH payment program has been very successful, with over 115 households

• participating. With ACH, the annual Permit Fee is deducted from an authorized checking account
• ver a period of 6 months.

2011 Actual 2012 Budget 2013 Proposed 2013 - 2012 $ 2013 - 2012 % Refuse & Recycling Fund Revenue Investment Income Earnings On Investments $204 $70 $1,120 $1,050 1500% Other Revenue - Local Sources Recycling Rebate Program $0 $12,500 $30,000 $17,500 140% Miscellaneous $150 $0 $0 $0 +++ S ale of Personal & Real Property $0 $0 $60,000 $60,000 +++ Permits Permits-Refuse Disposal $600,510 $600,600 $612,750 $12,150 2% Permits-Bulky Waste $1,271 $1,000 $1,000 $0 0% User & Program Fees S ales-Totes/ Containers $1,050 $1,825 $1,350

• $475
• 26%

S ales-PAYT Bags $341,181 $420,000 $425,250 $5,250 1% Restricted Grants-State Sources Grants-S tate Restricted $120,250 $0 $0 $0 +++ Funds Transfer In Appropriation from CIP S RF $221,665 $0 $0 $0 +++ Revenue Totals $1,286,280 $1,035,995 $1,131,470 $95,475 9%

58

Town of Middletown, RI Proposed Municipal Budget FY2013

Refuse & Recycling Fund Revenues (cont’d) Permits (cont’ d)

• Bulky Waste Permit fees are budgeted at the same level as in FY2012. The Town charges the

resident based on the fee the Town is invoiced by the provider for bulky waste curbside pick-up. User & Program Fees

• S

ales-Totes/ Containers is budgeted to be -$475 or -26% compared to FY2012. This includes the sale of additional totes, and rain barrels at cost, to residents.

• S

ales – PAYT Bags is the revenue generated from the sale of the Town garbage bags to

• residents. The PAYT Bag revenue is proj ected to be $5,250 higher or an increase of 1%

compared to FY2012. Refuse & Recycling Fund Expenditures Refuse & Recycling Fund Expenses are budgeted for costs associated with providing the PAYT curbside collection program. FY2013 Refuse & Recycling Fund Expenses are proj ected to be $1,131,470, $95,475

• r 9%

higher than in FY2012. This increase is mainly due to the proj ected increase of transportation and fuel charges. PAYT Program FY2010 FY2011 FY2012 As Of 3/2012 S ubscribers – FT 4,148 3,968 3,911 S ubscribers – PT 125 105 Begins May 1st Tons Tipped – Refuse 2,386 2,269 1,536 Tons Tipped – Recyclables 1,639 1,570 1,051 Tons Tipped – Yard Waste 1,016 894 565 Recycling Rate 41.0% 41.0% 41.0%

59

Town of Middletown, RI Proposed Municipal Budget FY2013

Refuse & Recycling Fund 2011 Actual 2012 Budget 2013 Proposed 2013 – 2012 $ 2013 – 2012 % Expenditures Salaries Expense Regular S alaries $45,255 $45,261 $45,261 $0 0% Longevity $0 $1,924 $1,924 $0 0% Overtime Expense Overtime-Regular $1,931 $0 $0 $0 +++ Health/Medical Benefits Buyback Payments-Medical $3,466 $3,276 $3,339 $63 2% Buyback Payments-Dental $0 $200 $180

• $20
• 10%

OPEB and Retirement Payments Pension-MERS $2,254 $5,294 $5,714 $420 8% FICA & Medicare FICA $3,140 $3,149 $3,139

• $10

0% Medicare $734 $737 $734

• $3

0% Other Employee Benefits Life Insurance $0 $480 $504 $24 5% Compensated Absences Expense $476 $0 $0 $0 +++ Sub Total Personnel $57,257 $60,321 $60,795 $474 1% Other Professional Services S ervices-Auditing/ Actuarial $0 $500 $500 $0 0% Other Services Purchased S hipping and Postage $1,116 $3,420 $1,540

• $1,880
• 55%

Cleaning & Disposal Services Rubbish Disposal S ervices $437,399 $452,109 $486,342 $34,233 8% Recycling S ervices $356,000 $369,600 $381,888 $12,288 3% Compost Disposal $128,393 $132,035 $135,860 $3,825 3% Repairs & Maintenance Services Maint/ Rprs-Municipal Vehicles $1,507 $1,273 $750

• $523
• 41%

Advertising Advertising Costs $297 $250 $950 $700 280% Printing & Binding Printing $4,409 $4,200 $4,097

• $103
• 2%

Travel & Training Travel & Meetings-Municipal $50 $0 $0 $0 +++ General Supplies General S upplies & Materials $60 $1,400 $1,200

• $200
• 14%

Gen Office S upplies/ Materials $0 $250 $175

• $75
• 30%

PAYT Program Bags $44,548 $47,116 $45,365

• $1,751
• 4%

PAYT Program Totes $3,570 $0 $0 $0 +++ Uniform/ Wearing Apparel S upplies $150 $150 $0

• $150
• 100%

Medical S upplies $0 $25 $0

• $25
• 100%

Transportation Maintenance Gasoline $851 $1,104 $1,219 $115 10% Dues & Fees Professional Organization Fees $0 $50 $50 $0 0% Miscellaneous Expenditures Net Contingency $0

• $37,808

$10,739 $48,547

• 128%

Sub Total Operating $978,350 $975,674 $1,070,675 $95,001 10% Debt-Related Expenses Lease Purchase-Principal $214,779 $0 $0 $0 +++ Lease Purchase-Interest $6,695 $0 $0 $0 +++ Expenditure Totals: $1,257,081 $1,035,995 $1,131,470 $95,475 9% 60

Town of Middletown, RI Proposed Municipal Budget FY2013

Refuse & Recycling Fund Expenditures (cont’ d) Personnel

• Personnel costs include compensation and benefits for the Refuse/ Recycling Coordinator.

Total Personnel costs for FY2013 are proposed to be $474 or 1% higher than in the current fiscal

• year. This increase is primarily due to the increase in the MERS

pension contribution for the municipal employees in FY2013. Operating

• Operating expenses are budgeted to increase by $95,001, or 10%
• ver FY2012. The increase is

budgeted to cover anticipated cost increases in transportation based on rising gas prices. The forecasted increase in gas prices will impact the fuel surcharge the Town pays to the service provider based on the Department of Energy’ s reported average cost of diesel fuel.

61

$40,000 $50,000 $60,000 $70,000 2010 2011 2012 2013 Proposed

Personnel Costs - Trend

Budget Actual $800,000 $875,000 $950,000 $1,025,000 $1,100,000 2010 2011 2012 2013 Proposed

Operating Costs - Trend

Budget Actual