Town of Riverdale Park, Maryland Office of Finance Services TO: - PDF document

Town of Riverdale Park, Maryland Office of Finance Services TO: John N. Lestitian FROM: Paul Smith, Director of Finance and Employee Services Gentry Jones, Finance Manager DATE: January 3, 2020 RE: FY2021 Budget – Priorities, Guidelines, Challenges, and Opportunities Action Requested: Staff seek an opportunity to present information at the January 6 th Legislative Meeting. Specifically, staff seek to present information as part of the FY2021 Budget development process. No formal action is requested. Background: The Office of Finance Services has implemented a participatory process for the development of the annual proposed budget. Central to this process are the twelve (12) public meetings at which aspects of the budget process are presented. At the January 6 th , meeting staff will present information and seek input from the Mayor and Council and members of the public. The presentation will cover the following topics: • Budget Priorities: Determining foundational funding priorities is essential to building a balanced budget. The staff team will present a short list of priorities and seek input for additional priorities at this stage in the budget development process. • Budget Guidelines: The staff team utilizes the Government Finance Officers Association Distinguish Budget Presentation Award guidelines. The staff team will provide a brief overview of the guidelines. • Budget Challenges: It is important to have a solid understanding of the challenges the Town faces. Staff will present information on challenges that include the planning for Capital Improvement Projects, Capital Acquisitions, and Debt Service (current and future). • Budget Opportunities: The Town has and continues to explore opportunities to reposition the Town’s operations and the corresponding finances. Staff will present high-level information on potential opportunities. Members of the budget committee will be present to respond to questions. c. Leadership Team Keith Robinson, Program Specialist II file

FY2021 Budget Discussion

FY2021 Budget Discussion Points  Budget Priorities  Budget Guidelines  Budget Challenges  Budget Opportunities

Budget Priorities FY2021 Staff Budget Priorities  Delivery of Services to Town Residents  Retirement Plan  Equipment Purchases/Upgrades  Vehicle Replacements  Future funding for CIP  Other

Budget Guidelines FY2021  Staff utilizes the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award Guidelines  Main criteria includes:  Financial Structure, Policy and Process  Financial Summaries  Capital and Debt  Departmental Information  Document-wide Criteria

Budget Challenges FY2021  Funding and Planning for CIP expenditures  Funding Capital Acquisitions  Funding New Projects  Debt Service

Budget Challenges Debt Service (Current & Future) FY2021 Institution Origination Maturity Date Interest Rate Principal Balance as of July 1, 2019 PNC Bank 05/29/12 05/30/26 3.00% $1,954,395 Maryland CDA 10/01/13 05/01/31 3.78% $782,900 30-Year Maryland CDA 10/01/13 05/01/28 5.085% $567,000 15-Year  Combined annual debt service payment decreased from $537,730 to $464,368

Budget Opportunities FY2021  Real Property Tax  Speed Camera Revenue  Permit Revenue  Tangible Revenue

Budget Opportunities Unreliable Revenue Sources: Real Property Tax FY2021 $4,400,000.00 $4,200,000.00 $4,296,850.00 $4,304,209.90 $4,149,099.92 $4,000,000.00 $3,865,153.00 $4,100,000.00 $3,800,000.00 $3,697,707.29 $3,830,015.92 $3,600,000.00 $3,612,108.00 $3,400,000.00 $3,200,000.00 FY2017 FY2018 FY2019 FY2020** Projected Revenue Actual Revenue This chart above shows projected Personal Property Tax vs Personal Property Tax actually received. **FY2020 – reflects revenue received as of 12/31/2019. Does not yet take into account Calvert Track.

Budget Opportunities Unreliable Revenue Sources: Speed Camera Revenue FY2021 $800,000.00 $700,000.00 $700,855.94 $588,490.00 $600,000.00 $670,543.00 $500,000.00 $385,968.70 $400,000.00 $400,000.00 $510,203.00 $300,000.00 $222,000.00 $200,000.00 $106,192.07 $100,000.00 $- FY2017 FY2018 FY2019 **FY2020 Speed Camera Projected Speed Camera *This chart above displays Speed Camera Revenue vs Projected Speed Camera

Budget Opportunities Unreliable Revenue Sources: Permit Revenue FY2021 $250,000.00 $204,563.84 $200,000.00 $150,000.00 $100,000.00 $88,767.10 $60,000.00 $60,000.00 $50,000.00 $50,494.12 $60,000.00 $20,502.85 $12,500.00 $- FY2017 FY2018 FY2019 FY2020 Permit Revenue Projected Permit Revenue *This chart above reflects Permit Revenue Vs Projected Permit Revenue

Budget Opportunities Tangible Personal Property Revenue FY2021 $500,000.00 $466,472.06 $450,000.00 $422,467.00 $400,000.00 $350,000.00 $300,000.00 $231,866.57 $250,000.00 $200,000.00 $150,000.00 $101,582.64 $101,120.44 $100,000.00 $50,000.00 $- $- FY2017 FY2018 FY2019 Tangible Property Revenue Tangible Property Write Off *This chart above reflects Tangible Personal Property Revenue

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