Merry Christmas!

Merry Christmas and happy holidays from Mr. & Mrs. Claus, the grandkids, Donna, and myself!

Ken

Chestnut Innovation Center

Take a look at this great article from Jim Sullivan in today's Newburyport Daily News about the Chestnut Innovation Center, and the jobs that they're bringing to Amesbury: http://www.newburyportnews.com/news/local_news/bringing-in-the-business/article_8a6a430d-f1ac-5c7c-8fed-49b14a7b479c.html

I want to thank Christian Scorzoni and Dan Healey for helping the CIC find a new home in Amesbury. Christian was the first person to introduce me to Bob O'Brien and his team, and Dan worked closely with Bob and the CIC to make the numbers work.

Without Dan and Christian, this would not have been possible.

Ken

Kindergarten Tours

On Thursday morning, I was visited by four kindergarten classes from the Cashman Elementary School. I spent some time telling them a little bit about City government and the history of Amesbury. However, more importantly, we dedicated most of our time together to their questions. From questions about why our stained-glass windows are different colors, or why our conference table is so big, or what it’s like to be Mayor, I think we got almost all of their questions answered! I had a blast hosting them, and it was great to see our educators in action.

Ken

Chestnut Innovation Center Manufacturing Seminar

Last week, Bob O'Brien, CEO of the Chestnut Innovation Center (one of Amesbury's newest businesses) was kind enough to invite me to speak at the CIC's first ever Product Manufacturing Seminar. I was humbled to hear Bob share some very kind words about me, and particularly about the business-friendly environment that is quickly developing in Amesbury. Bob and I both thanked Melissa Cerasuolo and the Amesbury Chamber of Commerce for their tireless advocacy on behalf of our business community.

In just their first few weeks in Amesbury, the CIC brought 10 new businesses and 50 new jobs to our community. This is great news, and I look forward to watching the Center continue to grow.

It was exciting to see such a diverse display of businesses, ideas, and innovation right here in Amesbury. Thanks to Bob, Melissa, and everyone else who was involved with the seminar.

Ken

Amesbury's New Electric Vehicle

Last month, Amesbury's new electric vehicle hit the streets to begin service in our Water Department. Thanks to the hard work of Bill Scott and his staff in the Office of Community and Economic Development, we were able to utilize over $34,000 in state grant funding for the purchase of the fully electric 2014 Ford Focus EV. The acquisition of the new EV allows the City to see an initial one-time savings of up to $17,660, and is estimated to save the City more than $3,200 annually in additional energy savings.

 

In Friday's edition of the Newburyport Daily News, there was a nice piece that covered this latest development in the 2014 Amesbury Energy Initiative. Not only does the EV allow the City to save money and conserve energy, but it also serves as a reminder of a unique aspect of Amesbury's history. Amesbury reporter Jim Sullivan explains: http://www.newburyportnews.com/news/local_news/article_21a22611-1210-5294-ac30-41dc51f78fb1.html

Ken

Be a Buddy, Not a Bully

I want to extend a huge thank you to Rosey Werner and Brian Fecteau for co-chairing the committee which organized this morning's first annual "Be a Buddy, Not a Bully" symposium at Amesbury City Hall. Brian, Rosey, and the committee were kind enough to invite me to speak at the event. This is an issue that is close to the hearts of so many, and I'm proud to call Amesbury a leader in the fight to raise awareness.

 

When I spoke this morning, one of the things I touched on was Amesbury's unique dedication to providing for our friends and neighbors in need. We have an incredibly motivated network of non-profits, charities, and an abundance of tireless volunteers who sacrifice their time every single day to help others. Today's symposium was the latest example of that commitment.

 

To the many volunteers and businesses who worked so hard to organize this morning's event -- Thank you again! You all did an excellent job.

 

Ken

 

 

 

 

Merrimack Valley Health Center

I had a great time on Thursday evening at the grand opening for the Merrimack Valley Health Center over on Maple Street! Take a look at this photo from the event.

Have a great weekend!

Ken

 

Amesbury Sports Park

You may be aware of the article published in both the Lawrence Eagle Tribune and the Newburyport Daily News over the weekend regarding the Amesbury Sports Park.

Here is some additional information.

A couple of weeks ago I was informed that the so called Spartan Race, that had recently taken place at the park, had resulted in potentially serious damage to protected wetlands. Possible trespassing over many privately owned parcels, city owned property, and a capped landfill owned by Waste Management were also reported

I immediately launched an investigation, to be spearheaded by our local conservation agent. Over the ensuing two weeks, city employees physically walked the land and discovered that trails had been cut into an area covering many acres of land owned not only by the Sports Park but as well as that of many abutters. The trails were described to me as being beautifully done, 10-12 feet wide and covered with an unknown material that smoothed and somewhat hardened their surface. Many trees were cut and the trails went through protected wetlands. Additionally there was evidence of trenches, holes, and additional features that had been dug into the land along the trail, some apparently filled with water.

As a result of these and other alarming initial discoveries, the Massachusetts DEP was called in to assist in the investigation.

Over the ensuing week, and after a thorough and careful investigation that included mapping the disturbed areas against DEP maps which indicate protected wetlands and property boundaries, and walking the entire trail, it was evident that Sports Park management was egregiously in violation of wetlands statues and had also significantly disturbed and modified several parcels of private and city owned properties without permission, permits, or any notification whatsoever.

Based on the opinion of our conservation agent and in concurrence with the DEP agent, I fully supported the immediate issuance of a cease and desist order, to be sent to the management of the park in order that future events would not take place unless and until all violations are stopped and appropriate remediation has taken place. The order was sent Friday August 29^th.

This was a difficult decision for all involved for a number of reasons. First, the events themselves bring thousands of people into Amesbury and are a potential stimulant to the local economy. Secondly, Sports Park management has worked with the city over the years and has been generous in their support of local non profits and our city in general. Finally, it is only with great reluctance that we would put a business already struggling and operating under Chapter 11 bankruptcy provisions in a position that could further add to their financial difficulties.

However, they left us no choice. This was not a mere bending of the rules. They obliterated the rules. Their actions indicated a complete and utter disregard for private landowners’ rights, environmental rules and regulations, and rules governing the private use of public property. This is, frankly, unacceptable.

Sports Park management was given a chance to offer their side of the story. My office contacted them early last week with a detailed description of the allegations, asking for a response. None was received.

Moving forward, it’s logical to ask about what can be done to prevent such violations in the future. Frankly, I’m not sure anything could have been done to prevent this particular occurrence. The Sports Park people surely knew they were trampling multiple rules and regulations but they proceeded anyway. I cannot know their motivations with certainty, but whatever the reasons, they decided that the approach they took was their best option.

Permitting requirements for events are already in place but perhaps we can review and tighten our local ordinances. We can also make sure the penalties are sufficient to create the incentive to play by the rules. If the City Council wishes to offer legislation, I’m happy to consider it.

 

Ken

National Night Out

On Tuesday night, I had the pleasure of attending Amesbury's 19th annual National Night Out hosted by the Amesbury Police Department and the Amesbury Public Library.

At an event which promotes community policing, it seemed like the perfect opportunity to honor Amesbury Police Officer Tom Hanshaw for his tireless efforts to strengthen the relationship between our residents and our Police Department. Officer Hanshaw is a shining example of what it means for a police department to become one with the community which it serves. Amesbury is lucky to have such a dedicated police force.

Here are some photos from the event. Thank you to the APD, the APL, and all those who contributed to this year's National Night Out. It was a great time!

Ken




Mayor Gray presenting Officer Hanshaw with a proclamation recognizing his dedication
to the community. (Left to right: Officer Tom Hanshaw, Mayor Ken Gray, Amesbury Police Chief Kevin Ouellet)

 

Members of the Amesbury Police Department look on as Officer Hanshaw is recognized by Mayor Gray.
(Left to right: APD Chief Kevin Ouellet, Lt. William Scholtz, Lt. Jeffrey Worthen)

 

Chief Ouellet speaking about Officer Hanshaw's contributions to the APD and to the community.

Larry Frost interviewing Officer Hanshaw for the Our Town Show on Amesbury Community Television.

(Left to right: Mayor Ken Gray, City Councilor Anne Ferguson, Christine Green)

AFD Firefighter/Paramedic Blake Lemke waves down to the crowd
from approximately 100 feet above.

Congratulations to Gourmet Any Day!

After less than a year in operation, Amesbury's Gourmet Any Day is already being recognized as a top restaurant on the north shore. This month, Gourmet Any Day was named as the Editor's Choice for Best Prepared Food in Northshore Magazine's 9th annual Best of the Northshore awards.

Congratulations to Karen and her team!

Ken

P.S. Gourmet Any Day is located right next to City Hall, at 60 Friend Street. You can learn more at gourmetanyday.com

Cars and Carriages

The 1st Annual "Cars and Carriages" Car Show was a great success last weekend! Hundreds of people attended to appreciate the 70+ classic cars and carriages on display. There was an impressive showing of automobiles from the pre-World War II era hosted by the very same site on which many were originally manufactured.

Thanks to the North Shore Old Car Club, the Lions Club, Charlie LaBella and the food vendors who set up shop, and all who spent the day appreciating Amesbury's rich history.

I can't wait for next year!

Ken

David Costello of the North Shore Old Car Club
presenting Amesbury's own Bart Bailey with an award
for his two Bailey Electric vehicles.

Kids' Night, Fireworks Postponed

Due to the forecast of inclement weather, the Amesbury Days Event Planning Committee has decided to postpone the annual Fireworks Festival and Kids’ Night in the Millyard to Saturday, July 5th.   Kids’ Night has been rescheduled to 5:00 PM to 7:00 PM in the Millyard, and the Fireworks Festival will begin with live music at 7:30 PM at Woodsom Farm.  Please check the Amesbury Days Facebook page for updates.

Those without access to Facebook are invited to direct any inquiries to the Amesbury Fire Department at (978) 388-1333, or to Mayor’s Aide Evan Kenney at kenneye@amesburyma.gov.

June 26 -- No Office Hours

We will not be holding Office Hours tomorrow evening, because I will be attending the Amesbury Chamber's annual Block Party. If you have any questions, feel free to send me an e-mail at mayorgray@amesburyma.gov, or give us a call at 978-388-8121.

I hope you will join us! For more information about the Block Party, visit www.amesburychamber.com.

Amesbury Days kicks off tomorrow! To get details about the 115th Amesbury Days celebration, please visit www.amesburydays.org.

Ken

 

Video Tribute to our Retirees

Mike Basque, Marie Veilleux, and Joe Fahey are retiring. Together, they have dedicated a combined 111 years to public service. Peter Hoyt had the pleasure of sitting down with all three of them last week in the ACT studio.

You can watch the entire video in 720P HD here: https://www.youtube.com/watch?v=k0kyMFvdrFA

A big thank you goes out to Peter, our three retirees, and Russ Munroe at ACT for making this video happen. It is a great way to remember the careers of three of Amesbury's most devoted public servants.

Enjoy!

Ken

Save The Date: July 19 Car Show

See information below on the 1st Annual "Cars and Carriages" show in Amesbury. This will be another great opportunity to celebrate and showcase the community's pride in our history.

Admission and parking are free to spectators

I am looking forward to this! I hope to see you on July 19.

Ken


Do you have a classic car that you love, and want to show off?

Plan ahead to join the North Shore Old Car Club and Amesbury Mayor Ken Gray for the First Annual “Cars and Carriages” car show, which will be held in downtown Amesbury on July 19th.

The event will celebrate Amesbury’s history as a manufacturing center for carriages and early automobiles. “Not only were we the world’s largest manufacturer of carriages,” Gray said, “but as the world moved to automobiles, Amesbury played a prominent role in that transition.”

Right now, event organizers are looking for cars to be exhibited. Any car more than 25 years old is eligible, but cars made in 1930 or earlier will be particularly welcomed. Already expected in the show: 1908 and 1913 electric cars and several horse-drawn carriages, all built in Amesbury.

The show will also include tours of LeBaron Bonney, an Amesbury business that provides restoration kits, upholstery, parts and accessories for antique and custom cars. The building was originally part of the Biddle and Smart Company plant, where carriages were manufactured from 1870 through the early 1900's. As the automotive industry took off, the factory was converted to building auto bodies. Now, from that same building, LeBaron Bonney produces materials to restore antique cars – including cars that were originally built there.

If you are interested in displaying your antique car at the show, please contact David Costello at 978-335-8739. A $10 donation to benefit the Amesbury Carriage Museum will be requested.

The show will be held Saturday, July 19th, rain or shine, on Chestnut Street in Amesbury. Free spectator admission and parking.

Amesbury Welcomes New Business

We are pleased to welcome the Chestnut Innovation Center to Amesbury! See today's press release below for more details, or visit www.chestnutic.com.

Ken

 



Here is a look at the exterior of the 11 Chestnut Street building, where the CIC will be located.

 

 

 

 

 

 

Good News for Amesbury's Parks

* PRESS RELEASE *
For Immediate Release: June 12, 2014	For More Information: Evan Kenney (978) 388-8121 kenneye@amesburyma.gov
Mayor: $250,000 Available For Park Improvements

 

           

 

 

 

            Mayor Ken Gray announced that the City of Amesbury has secured $250,000 for the improvement of playground facilities at the Amesbury Town Park and the Collins Avenue Park through funding provided by the Commonwealth’s Our Common Backyards Grant Program. Of that quarter of a million dollars, $200,000 will come directly from the grant program, while $25,000 will be provided from a prior City Council authorization, and an additional $25,000 will be provided through fundraising and in-kind services. Plans call for a spray park installation at the Town Park, and playground improvements for the Collins Avenue Park.

            “The spray park has the potential to be a big attraction,” Gray said, “I think it could really be an asset to the community.”

The Mayor indicated that the projects support the work of dedicated residents who volunteer through organizations such as the Park Renovation Committee and the Amesbury Improvement Association.

“The Park Renovation Committee, the Amesbury Improvement Association, and residents from across the City have volunteered a lot of time toward improving our neighborhood playgrounds,” Gray said. “This funding will complement their continued efforts to enhance these community landmarks.”

 For more information, please contact Mayor's Aide Evan Kenney at 978-388-8121.

A Century of Public Service

In addition to Mike Basque's retirement, which I noted in last night's post, Amesbury is also losing two other employees to retirement this month. Mike, Community and Economic Development Director Joe Fahey, and Assistant City Accountant Marie Veilleux have dedicated a combined 111 years to public service.

They will be greatly missed in City Hall, but I wish them all the best in a happy, healthy, and peaceful retirement. They have certainly earned it.

A number of our City employees have organized this celebration for our retirees. Please join us as we honor Mike, Joe, and Marie on Friday, June 20 at DiBurro's Function Facility. This event is open to the public, but tickets will need to be purchased by 7 PM on June 12. For ticket information, please contact Beth at 978-388-8131, or via e-mail at 2014RetirementParty@gmail.com.

 

Ken

 

P.S. Attached is the flyer for the June 20 event. I hope to see you there!

 

 

 

 

 

Amesbury's New CFO

This month, we are losing our CFO Mike Basque to retirement. I'm thrilled to announce that Amesbury's former Finance Director Chuck Benevento will be returning to City Hall in July as our new Chief Financial Officer.
 
See below the text from our press release about Chuck.
 
Ken
 
 

* PRESS RELEASE *
For Immediate Release: June 6, 2014	For More Information: Evan Kenney (978) 388-8121 kenneye@amesburyma.gov
Mayor Announces New C.F.O.

 

           

          

 

           After 26 years of service to Amesbury, the City’s Chief Financial Officer Mike Basque is retiring this month. Today, Mayor Gray announced that former Amesbury Finance Director Charles Benevento will be returning to Carriagetown as the City’s next C.F.O.

            With over 30 years of experience in finance, 28 of which garnered in municipal government, Benevento’s background and knowledge base will make him an asset as the director of the City’s finances, according to Gray.

            “We are thrilled to have Chuck on board,” Gray said. “I think his experience and his professional accomplishments speak for themselves.”

            With a degree in accounting from Boston University, Benevento’s career in finance began at his alma mater, where he was hired as a general accounting analyst in 1980. By the end of his nearly six year tenure in Boston University’s accounting offices, he had earned multiple promotions, the last of which landed him in the role of Supervisor of General, Grant, and Contract Accounting.

            In 1986, Benevento began what would be a twelve year career as the Town of Amesbury’s Finance Director, Town Accountant, and MIS Director. In 1998, he left Amesbury for the City of Chelsea, where Benevento quickly earned a spot as the City’s Finance Director. In 2000, he began a three year tenure as Director of Finance in the Town of North Andover. Since 2003, he has served as the Finance Director and City Auditor in the City of Haverhill.

            Benevento’s return to Amesbury is scheduled to begin July 3, 2014. For more information, please contact Mayor’s Aide Evan Kenney at 978-388-8121.

School Budget Information

The school budget can be confusing. In an attempt to minimize misinformation, here are some facts:

• Our Fiscal Year runs from July 1 through June 30. We are currently near the end of FY14. The budget we are considering is for FY 15, which will begin July 1, 2014 and will run through June 30, 2015.

• In FY 15, our property taxes will, once again, be increasing. Pending approval, the property tax levy will increase by $990,562 over FY14’s levy.

• The total requested FY15 general fund budget, including schools, is $53,863,035. Schools represent $28,148,496 of this amount, while the rest of city government represents the remaining $25,714,539.

• The school budget is not being cut. Pending approval by the city council, I have recommended, and the school committee has endorsed, an increase of $800,000 over last year’s budgeted amount to $28,148,496.

• In spite of this, we are still faced with a funding gap between forecasted school costs and the $800,000 budget increase. This gap is about $330,000. This is because the cost to run our school system will increase by about $1.13 million next year over this year.

• No one on the school committee has accepted the inevitability of the gap, and all are committed to reducing it. To that end, committee members are working hard on several fronts in order to close the $330,000 gap, including:

• Advocating for increased state funding to Amesbury’s schools. Over the last 15 years, annual Chapter 70 funding has decreased by about $1,000,000 while the annual cost to run our schools has increased by about $10,000,000.

• Asking school principals and administrators to aggressively pursue ways to reduce costs in order to work within the confines of the $800,000 increase in the $28.1 million budget (a reduction in costs of $330,000 would require a 1.2% reduction in school spending).

• Continuing to explore sources of additional funding to close the gap including increasing the city’s contribution.

• The school funding gap is not a new problem. We face such gaps almost every year, primarily driven by ever increasing state and federal mandated spending requirements. Last year’s gap was over $900,000.

I am not happy with the program reductions that school principals and administrators have recommended to close the $330,000 gap. Neither am I happy with the nearly $1,000,000 increase in property taxes that will result from the FY15 budget. However, we have two long standing problems – chronically underfunded schools, and extremely high property taxes - that are at cross purposes. In other words, fixing one makes the other worse.

As much as I would like to fix both of these problems in my first few months in office, if we are to balance the needs of our entire community, it can’t be done.

Therefore, my approach in the short term is one of shared responsibility. Taxes will go up, thereby increasing the burden on our already overtaxed citizens. However, our schools are being asked to share the burden. They will receive the bulk of the revenue from the increased taxes, and most of the amount they have requested, but they may fall short of the full amount needed to cover their increased costs.

I have consistently said that turning our city around will require a long term focus. My plan is and has been to increase revenue from new commercial and industrial sources thus reducing the tax burden on our homeowners. The revenue generated from these sources will play a substantial role in alleviating our annual dilemma of balancing the needs of our taxpayers and our schools.

I ask for the help and understanding of all of our citizens. Specifically I ask that everyone acknowledge and understand the validity of the points of view of those with whom they may disagree. Without such mutual understanding, we have no hope of resolving our long standing differences.

Ken

FY 2015 Budget

This week, the FY 2015 Operating Budget was filed with the City Council, and Finance Committee hearings also began. We posted the entire document on the City website. You can find it here: http://amesburyma.gov/files/filesystem/fy2015%20annual%20budget.pdf

Below, see the text of my letter to the community regarding my first budget, as well as the text of my FY 15 Budget Summary. If you have any questions, concerns, or input, please don't hesitate to contact me.

Have a great weekend!

Ken

P.S. I hope you will join us at 2 PM on Sunday, May 18, for the Dough Boy rededication ceremony at Amesbury Middle School. The Amesbury Veterans' Memorials Restoration Committee continues to work very hard to restore our monuments. I am grateful to see such dedicated volunteers in our community.

__________________________________________________________


Dear City Councilors and Residents:

 

Pursuant to Amesbury’s charter, I am pleased to submit the Fiscal Year 2015 operating budget.  The budget was prepared in consultation with the Chief Financial Officer and the heads of divisions and departments.

 

This FY15 budget represents my first since receiving the honor of being elected as your new mayor. As such, it represents my effort to move Amesbury toward solving its most pressing problems.  For many years we have faced two very large and very challenging financial problems in Amesbury: 

 

• Enormously high and ever increasing property taxes.
• Consistently underfunded schools 

 

These are deep problems with no easy solutions and neither problem can be solved by itself without negatively affecting the other.

 

For example, fully funding the school administration’s level services spending projection could only happen if we were to raise property taxes. Not only would such a move make our property tax situation worse, home values would be negatively affected and seniors, those on fixed incomes, and people struggling financially would suffer.

 

On the other hand, actually reducing property taxes would require unacceptable cuts in services, especially schools, but additionally in public safety, road maintenance, social services and economic development. Neither of these scenarios is acceptable. Therefore, my long term plan is as follows:

 

1. Decrease the rate of increase in property taxes while maintaining or improving municipal services and meeting previously contracted financial obligations.
2. Invest in education, with the majority of our increased tax dollars going to our schools. We must strive for excellent schools, but not to the extent that we dig ourselves deeper in the property tax hole.
3. Focus our efforts on initiatives that will result in expanding our commercial/industrial tax base so we can raise much needed revenue in the future without further burdening homeowners.

To this end, the FY15 budget focuses heavily on schools, with the majority of new spending going to education.  Moreover, even with substantial increases in personnel related contractual obligations, the proposed tax levy increase is at a rate is slightly less than last year’s increase. We are able to accomplish this in no small part because most of our municipal department heads have been able to rise to my challenge to find creative ways to reduce department costs while maintaining or improving services.

 

This budget is the first step in what will be a long term solution. It’s taken Amesbury many years to get into the position in which we find ourselves and it will take time to dig our way out.

This budget is an initial step in the right direction towards improving the quality of life for all our residents and relieving our future tax burden.

 

 

Sincerely,

 

Mayor Ken Gray

 

 

________________________________________________________

 

 

 

Budget Summary

Overview

The proposed FY15 general government operating budget is $53,863,035. Spending is proposed to increase $1,426,771 from the FY14 adjusted budget while revenues from sources other than the real estate tax levy are up by $436,209.

The result is an increase in the property tax levy of $990,562. While property taxes will increase with this budget, they will increase at a rate slightly less than that of last year.

Expenses

The single largest component of FY2015 spending increases is the cost of meeting obligations resulting from legacy contracts negotiated with our union teachers, police, firefighters and office workers. This is followed by increases in debt payments due to financing capital projects such as the DPW buildings and the Fire Station.

Specifically, of the $1,426,771 total increase in the requested budget, contractual salary related obligations account for approximately $800,000 and debt service increases make up an additional $311,240.

By department, of the $1,426,771 increase, $878,255 is for increases in education, $311,240 for increases in debt, $200,108.00 for increases in public safety, and $95,000 for increases in payments for veterans assistance. These departmental increases are offset by a reduction in expenses for the total of all other city departments of $57, 832.

Schools

On April 1, the School Committee voted unanimously to adopt the School Administration’s proposed budget that represented an $800,000 increase over the FY 14 appropriated amount. This amount is in line with my recommendation and is consistent with Amesbury’s historical school spending increases. In spite of this we are still facing the possibility of cuts in school services. This is because, like many other Massachusetts communities, we are faced with ever increasing unfunded spending that is mandated by the State. Although our Chapter 70 school reimbursement is up this year, we will receive more than $1 million less in 2015 than we did 15 years ago. Over that period of time state education aid to Amesbury has declined from 54% of district spending to 31%. This is a serious problem that shows no signs of abating and that cries for a permanent solution at the state level.

District school spending is budgeted at $28,148,496. This amount represents 52% of our general government expenses. In addition to district spending, the state assesses Amesbury an additional $3.2 million in education related costs, or an increase of $78,255 over FY14. This includes:

School Choice out            $456,000

Charter School                  $576,000

Retired teachers              $1,165,000

Essex Agricultural             $116,000

Whittier Vocational         $939.000

Including these assessments, total educational spending is $31,415,000 or about 58% of Amesbury’s total general government spending.

Revenue

Total revenue is projected to increase by $436,209. Of this, state aid is estimated to increase by $269,482 to $11,798,022. Revenue from our Ambulance service is up $80,000 while other miscellaneous revenue is up by $86,727, including an estimated increase in the meals tax of $50,000 to $175,000, and an estimated increase in the hotel tax of $13,000 to $95,000.

Enterprise Funds

Enterprise fund (water, sewer and Landry field) costs are projected to increase $115,993 to $6,730,008. This increase is primarily a result of borrowing costs related to the new water treatment facility.

Summary

Over 70% of our total municipal costs are personnel related, including salaries and benefits. FY15 is the third year and largest percentage increase of our three year contracts with the city’s union workers. As such these cost increases have, by far, the largest impact on the budget numbers. In addition, we are beginning to see the costs related to legacy capital improvement decisions.

In spite of these challenges, we have managed to hold tax increases to below those allowed by law. But these are short term reactions to long term problems. Going forward we must solve our school funding problems and revisit the way we manage our municipal expenses. I am confident that we can accomplish that and I look forward to the challenge.