Mayor's Budget Presentation FY20 vFINAL — File 208336

Somerville FY20 Budget Overview Mayor Joseph A. Curtatone June 5, 2019 Photo credit:

2 Leveraging growth to invest in our core values and services

3 Without equity, there can be neither progress nor prosperity. -Angela Glover Blackwell CEO of Policy Link

4 Equity + Core Services Vulnerable Residents Youth Vision Zero Public Space & Urban Forestry Taking Care of our Assets Climate Change Municipal Workforce

Vulnerable Residents What counts in life is not the mere fact that we lived. It is the difference we have made to the lives of others that will determine the significance of the life we lead. – Nelson Mandela 5

$370,000 New Investment Proposed in FY20 Budget for Vulnerable Residents • Office of Housing Stability – Housing Stabilization Program – Legal, tenant organizing & housing search services (full year) • SomerViva Office of Immigrant Affairs – Immigrant Services Coordinator (0.5 FTE) – Legal Defense Funds – Citizenship Program – Nepali Liaison 6

Youth • PICTURE The future belongs to young people with an education and the imagination to create. - Barack Obama 7

$3.6+M New Investment Proposed in FY20 Budget for Youth • Somerville Public Schools – 5% increase • SomerPromise – Expand out-of-school time programs – Expand wraparound services & outreach 8

$700,000+ New Investment in Vulnerable Residents & Youth from Other Funding Sources in FY20 • MA DPH Comprehensive School Grant – Create new School Nurse Navigator position • Commonwealth Children’s Fund – Expand SomerBaby to serve all of our newest residents • Medical marijuana revenue – Substance Use Prevention Coordinator – Expand substance use prevention and education 9

Vision Zero Vision Zero is not a slogan, not a tagline, not even just a program. It is a fundamentally different way to approach traffic safety. -Vision Zero Network 10

$3M+ Total Investment in Vision Zero in FY20 Leveraging Other Resources 11 CIP Projects, $1,205,000 General Fund (Total), $771,670 TNC (Ride Share), $302,809 Ch. 90, ~$300,000 CDBG, $272,500 MA Gaming Commission, $150,000

$420,000 New Investment Proposed in FY20 Budget for Vision Zero • Mobility – Expand Professional & Technical services for Vision Zero implementation and long- range bicycle network plan • Parking – Undertake comprehensive parking study, incl. curbside inventory – Increase Project Analyst position from PT to FT – Increase pavement markings • DPW – Replace ADA ramps • PICTURE 12

Public Space & Urban Forestry Cultures and climates differ all over the world, but people are the same. They’ll gather in public if you give them a good place to do it. -Jan Gehl 13

$660,000 New Investment Proposed in FY20 Budget for Public Space & Urban Forestry • New Public Space & Urban Forestry Division – New Division Head, new street trees (previously funded through Cap. Stab.), preventive tree & plant maintenance • DPW – 2 new Grounds laborers for parks, irrigation services & additional tree funding • Parks & Rec – 1 new foreman and 2 new laborers for Fields Maintenance • PICTURE 14

Taking Care of Our Assets Reversing the trajectory after decades of underinvestment in our infrastructure requires transformative action. -2017 Infrastructure Report Card 15 • PICTURE

$1.13M+ New Investment Proposed in FY20 Budget for Asset Management • New Infrastructure & Asset Management (IAM) Department – Director – Director of Finance & Administration • Capital Projects – Asset management software & additional Capital Outlay • Engineering – Trench Inspector • Fleet – GPS implementation • PICTURE 16

Kennedy Pool 17 $225,000 in one-time capital expenses + $570,675 in annual operating expenses $795,675 total expenses in FY20 - $100,000 in projected revenue_______ = $695,675 General Fund subsidy in FY20

Climate Change Climate change is one of the most serious challenges of our time... [It] presents an urgent agenda for cities. - Somerville Climate Forward 18

$82,000 New Investment Proposed in FY20 Budget for Climate Change • OSE – Energy Manager • Other changes in the budget: – $300,000 reduction in Electricity line due to LED conversions 19

Municipal Workforce I wanted to send a BIG thank you to the team that was at my house this morning… to remove a tree stump. It may not seem like much, but they were so effective that I can not resist writing to let you know. The entire team clearly had worked together for a while, and watched out for each other’s safety, had fun and did an amazing job. -Resident via QAlert 20

$3.5M New Investments Proposed in FY20 Budget for Municipal Workforce • Collective bargaining agreements • Non-union merit increases • $15 minimum wage for part-time staff • Police Department Cadet Program 21

Customer Experience Manager for Better Workflows and Customer Service • Using feedback to help identify and address service areas that need improvement. • Helping to develop better procedures, protocols, reporting, follow-up, and customer service. Process & Service Improvements Staff Feedback Council Requests Resident & Business Owner Complaints

23 Equity + Core Services Vulnerable Residents Youth Vision Zero Public Space & Urban Forestry Taking Care of our Assets Climate Change Municipal Workforce

$9.8 million+ Proposed Equity Investment in FY20 Budget FY20 General Fund Investment Vulnerable Residents $370,000 Youth $3,600,000 Vision Zero $420,000 Public Space & Urban Forestry $660,000 Taking Care of our Assets $1,135,000 Climate Change $82,000 Municipal Workforce $4,400,000 24

Historic New Growth Supports these Critical Investments 25 $7.3 M 0 $1M $2M $3M $4M $5M $6M $7M $8M FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 (Proj) New Growth Revenue by Fiscal Year

Planning for Greater Self-Reliance 26 Net State Aid down $21.5M since FY01* Growing local revenues helps address the loss $57M $35.5M *If we adjust for inflation, the reduction in net state aid compared to FY09 is even more severe – $49 million.

Growing Our Local Revenue 27 $604k $1.3M 0 0.2 0.4 0.6 0.8 1 1.2 1.4 Millions Hotel/Motel Excise Revenue $1.1M $2.17M 0 0.5 1 1.5 2 2.5 Millions Meals Tax Revenue +115% since FY12 +97% since FY12

Proposed Revenue Changes • Parking – Citywide meter adjustment to $1.25 per hour – Increased parking violation minimum to $50 (except for meter violations) • ISD, Engineering, & DPW – Adjustments to some fees based on staff costs • PEG Access – Reduced General Fund projected revenue to $0 due to Federal uncertainty 28

FY20 Revenue by Source • Proposed budget utilizes the full property tax levy in order to fund these investments. • Includes SHS short-term interest debt exclusion ($421,000) 29 Taxes 70% State Revenue 20% Local Receipts 8% Other 2% Local Receipts includes: fines & forfeits, licenses & permits, fees, miscellaneous recurring. Other includes free cash, parking meter receipts, enterprise indirect costs.

Total Municipal Appropriation State Assessments & Overlay Total Operating Budget FY20 Operating Budget 30 $254.6M $16.4M $238.2M 5.5% increase over FY19

FY20 Operating Budget Expenses School Department 30% Public Safety 18% Pension & Fringe 16% Public Works 11% General Government 10% State Assessments 6% Debt Service 5% Culture & Recreation 2% Other 1% Overlay Reserve 1% 31

Upholding Our Commitment to Fiscal Responsibility In our view, the city's economic growth and conservative budgeting practices, with strong financial management policies and planning, have led to continued positive financial operations and maintenance of its very strong budgetary flexibility and liquidity profile. - Standard & Poors May 2019 32

Building our Stabilization Funds 33 0 $5M $10M $15M $20M $25M $30M $35M $40M $45M Stabilization Fund Balance

Reducing our Reliance on Free Cash 34 0 $1M $2M $3M $4M $5M Annual Free Cash Appropriation to the General Fund

Our Focus on Fiscal Responsibility and Investing for the Long Term has Real Benefits for our Residents 35

36 Somerville: $3,140 And We Still Spend Less per Capita than our Neighbors Cambridge: $6,108 Boston: $4,896

We’ve proposed a budget that: 37 • Leverages new growth • Is committed to equity • Is based on shared community goals and values • Is guided by our commitment to fiscal responsibility • And that is strategically designed to meet both our current needs and long- range obligations Thank you