TOWN OF WEBSTER 2024 BUDGET MESSAGE The Town of Webster kicked off the 2024 budget process in early May. Each department head was instructed to put forth their best effort to minimize the tax levy for the citizens, while providing for the needs within their respective departments. The department heads presented their budgets during the televised budget workshops that were held on July 27th and August 3rd. A public hearing on the 2024 Preliminary Budget will be held on October 19th at 7:30pm. Expenditures The Town’s budget provides funding for many services that run the gambit. They include the court system, law enforcement, fire safety inspections, animal control, park maintenance, programs for senior citizens, the fitness facility, recreation programs, public works, drainage improvements, leaf pickup, snow plowing, maintenance of roads and bridges, Webster Public Library, the wastewater treatment plant, wastewater pump stations and the entire sewer collection system. The budget also includes special districts which cover the cost of capital improvements and maintenance for drainage, lighting, parks, sewer systems and water supply lines. The total expenditure budget for 2024 is $42,421,350 which includes $3,950,378 of interfund transfers. These interfund transfers effectively gross up the expenditures and revenue. The net estimated expenditures for 2024 is equal to $38,470,972 and are broken down as follows: Expenditure Category Employee Compensation Employee Benefits Retiree Employee Benefits Capital Purchases Contractual Costs Debt Service Transfer to Sewer Capital Reserve Total
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Amount 15,376,552 6,339,800 1,787,000 2,104,778 8,362,486 4,450,356 50,000 38,470,972
Percentage 39.9% 16.5% 4.7% 5.5% 21.7% 11.6% .1% 100.0%
TOWN OF WEBSTER 2024 BUDGET MESSAGE The Town’s expenditures consist of five major categories which include employee compensation, employee benefits, contractual purchases of goods and services, capital expenditures and debt service. The year-to-year results for each category is as follows: • Employee Compensation – The Town employees fall into five groups which include the non-union administrators and part time workers, the blue-collar union (highway and sewer), the police union (police officers) and the whitecollar union (office administration). There are three union contracts which cover approximately 120 full time employees. Total employee compensation for 2024 is $15,376,552 versus $14,642,699 for 2023. This represents a $733,853 (5%) increase which is due to the settlement of the blue-collar and white-collar union contracts. At the time that the 2023 budget was completed the union contracts remained unsettled so the costof-living (COLA) increase was not built into each line item. Therefore the 2024 budget reflects a jump for the COLA increase in 2023 and 2024, which was 3% and 2.25%, respectively. The budget also includes several new fulltime positions which include a police clerical position, a communications director, junior planner, wastewater treatment plant operator trainee and assistant wastewater treatment chief plant operator. • Employee Benefits – The employee benefits include contributions to the NYS retirement system, employers share of social security, worker’s compensation insurance, medical and dental insurance, health savings account contributions and medical insurance paid on behalf of retired former employees. The budget for 2024 is $8,126,800 versus $8,283,600 for 2023. This represents a $156,800 (-1.9%) decrease. The amounts were brought in line with historical actuals.
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TOWN OF WEBSTER 2024 BUDGET MESSAGE • Contractual Purchases of Goods and Services – Total contractual expenses for 2024 is $8,362,486 versus $7,580,162 for 2023. This represents a $782,324 (10.3%) increase. The Town is planning for the following cost increases: o Gas and electric utility costs $700,000 (up $88,000 or 14.4%). o Gasoline and diesel fuel $422,640 (up $30,640 or 7.8%). o Insurance premiums $400,000 (up $65,000 or 19.4%). o Road improvements $250,000 (up $150,000 or 150%). o Wastewater treatment chemicals $335,485 (up $55,861 or 19.9%). o Vehicle leases $212,036 (up $78,336 or 58.6%). • Capital Expenditures – Capital expenditures include fixed asset items such as buildings, equipment, furniture, and vehicles. Total capital expenses for 2024 is $2,104,778 versus $1,960,880 for 2023. This represents a $143,898 (7.3%) increase. The following items are included within the 2024 budget: o Highway equipment $913,000 which includes two ten-wheel and one six-wheel dump truck. o Information technology equipment and licensing $170,018. o Park improvements $67,000. o Police vehicles and accessories $175,000. This includes three replacement vehicles for the existing fleet. o Sewer equipment $133,850 which includes a Ford F-550 with dump body $97,850, a generator for the Wall Road pump station $22,000 and remote pump station monitoring equipment $14,000. o Sewer collection system improvements $441,000 which includes two new rail systems $100,000, pumps for Hedges pump station $40,000, rehab of problem lateral lines and manholes $130,000, secondary sludge dewatering pump $44,500 and repairs to the septage receiving pad $35,000. A-3
TOWN OF WEBSTER 2024 BUDGET MESSAGE • Debt Service – In August of 2023 the Town borrowed $51,190,000 via a bond anticipation note (BAN) to fund the Highway Building project ($14,150,000), Sandbar Park project ($3,540,000) and the Wastewater Treatment Plant Phase II project ($33,500,000). The BAN is a one-year loan which is based on projected cash flow requirements for each project. The Town’s BAN sale process proved to be very competitive which resulted in a $766,826 premium paid to the Town and a net interest rate of 3.50%. This was better than expected. When the BAN matures the premium will be recognized as revenue in 2024 which will partially offset the gross interest charge. The Town’s debt service payments for 2024 will total $4,450,356 versus $1,836,738 for 2023. This represents a $2,613,618 (142.3%) increase. NYS Tax Cap The Town operates within the New York State tax cap guidelines which include all operating funds and special districts. It is driven by two factors which include the tax base growth factor (1.0097 for 2024) and the allowable levy growth factor (1.02 for 2024). According to the calculation, the Town’s tax levy is limited to $21,493,871 for 2024. The Final Budget came in at $21,492,787 which is $1,084 below the cap. The year-to-year increase is $655,663 which represents a 3.15% change. The tax levy for 2024 versus 2023 is as follows: Operating Funds Fund General – Town Wide General - Part Town Highway – Town Wide Highway – Part Town Total Operating Funds
2024 Tax Levy 14,881,147 0 1,113,160 0 15,994,307
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2023 Tax Levy 14,717,612 328,487 747,200 598,500 16,391,799
Net Change 163,535 -328,487 365,960 -598,500 -397,492
TOWN OF WEBSTER 2024 BUDGET MESSAGE Sewer Fund Cost Center O&M Rent Capital Charge Total Sewer Fund
2024 Tax Levy 3,037,191 1,533,619 4,570,810
2023 Tax Levy 2,617,502 913,162 3,530,664
Net Change 419,689 620,457 1,040,146
Special Districts Fund Drainage District Lighting Districts Park Districts Sewer Districts Water Districts Total Special Districts
2024 Tax Levy 628,110 33,650 80,700 134,961 50,249 927,670
2023 Tax Levy 624,600 21,650 85,875 132,427 50,109 914,661
Net Change 3,510 12,000 -5,175 2,534 140 13,009
Other Funds There are three other funds which do not require a tax levy. The Debt Service Fund which is utilized to offset the cost of serial bonds, the Webster Public Library which is funded by the General Town Wide Fund and the Parkland Trust Fund which is financed by parks and recreation fees. Grand Totals Fund Category Operating Funds Sewer Fund Special Districts Grand Totals
2024 Tax Levy 15,994,307 4,570,810 927,670 21,492,787
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2023 Tax Levy 16,391,799 3,530,664 914,661 20,837,124
Net Change -397,492 1,040,146 13,009 655,663
TOWN OF WEBSTER 2024 BUDGET MESSAGE Tax Rates Since the Town contains the Village of Webster, there are two different tax rates that apply to the residents. A Village resident pays the tax rate derived from the tax levy within General Town Wide and Highway Town Wide Funds. These funds pay for services which benefit all Town and Village residents. A resident who lives outside of the Village pays the tax rate derived from all four operating funds. For 2024 the Town utilized sales tax revenue and appropriated fund balance to lower the part town tax rate to zero. Therefore, the rates are the same for Village and outside the Village residents. The estimated tax rates for 2024 compared to 2023 are as follows: Fund Village Property Town Outside of Village
2024 Tax Rate 5.06 5.06
2023 Tax Rate 4.97 5.30
Net Change .09 -.24
Wastewater Treatment The Sewer Fund provides wastewater collection and treatment services to the residents who live outside of the Village. There is an operation and maintenance (O&M) rate which is paid by the 15,113 residents who own a home that is connected to the Town’s sewer system. This O&M rate covers the cost to fund the collection system and the wastewater treatment plant. There is also a capital charge which is paid by 15,622 residents who are connected to the system or have a collection line running in front of their home. The capital charge rate pays for capital reserve contributions, equipment, treatment plant upgrades and debt service from capital projects. The estimated sewer rates for 2024 compared to 2023 are as follows:
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TOWN OF WEBSTER 2024 BUDGET MESSAGE Sewer Charge O&M Rate Capital Charge Total Sewer Charge
2024 Sewer Rate 200.97 98.17 299.14
2023 Sewer Rate 173.53 58.44 231.97
Net Change 27.44 39.73 67.17
An average home outside the Village has a $177,000 assessed value. If it is connected to the sewer system, the following amounts will be paid: 2024 $895.62 299.14 $1,194.76
Town Property Taxes Sewer O&M and Capital Charge Totals
2023 $938.10 231.97 $1,170.07
Revenue The Town benefits from a number of significant revenue sources other than property taxes. The key revenue categories are as follows: • • • • • • • • • •
Cablevision Fees $500,000 Recreation Programs, Fitness Memberships and Classes $868,600 Lodge Rentals $110,000 Mortgage Tax $950,000 Sales Tax $6,700,000 Building Permits $120,000 Consolidated Highway Improvement Program $270,000 NYS & Monroe County Contracts $810,000 Parkland Trust Fund - Park & Recreation Fees $120,552 Commercial Sewer Charges and Entrance Fees $1,038,810
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TOWN OF WEBSTER 2024 BUDGET MESSAGE Interest Revenue The Town invests its’ excess cash in fully collateralized investments which include US Treasury Bills, US Treasury Notes and Certificates of Deposit. The amount of expected interest revenue has been increased across all funds. It’s at $218,500 for 2024 versus $140,000 for 2023. The interest rates have moved up significantly as the US Government continues to battle historically high inflation. The Town is fortunate to have accumulated surplus from prior years, which is available to stabilize the tax rate. The 2024 budget includes appropriations from fund balance that total $3,534,028. This includes $2,239,890 from the operating funds, $400,000 from the sewer fund balance and $894,138 from the remaining funds and special districts. Overall, the 2024 budget is fiscally sound in spite of persistent inflation and increased debt related to the various capital projects that are underway. The Town officials are working together to project the Town’s financial position into the future so that revenue and expenses can be effectively managed beyond the one-year window of the budget process. We are pleased to say that the Town has been able to stay under the New York State tax cap, while continuing to provide the same level of service to the citizens.
Thomas J. Flaherty
Paul S. Adams
Town Supervisor
Director of Finance