Comparable Communities Financial Data
I apologize for not posting in quite some time. I hope to be able to post more regularly in
the immediate future.
The Board of Selectman and the Warrant Committee have
committed to the need for an operational override next spring to fund town-wide
operational budgets. This would be the first override of this type in 7 years.
That being the case, it seems like a good time to look at some financial
comparisons between Milton and comparable communities – data I’ve posted on at
least two prior occasions, the last in 2009. You can learn about the criteria
for selecting comparable towns here:
Average Single Family Tax Bill, Rank Order
Town---------------------------------------Tax Bill
Belmont-----------------------------------$10,983
Westwood--------------------------------$ 9,999
Sharon-------------------------------------$ 9,617
Needham---------------------------------$ 9,240
Hingham----------------------------------$ 8,697
Westborough----------------------------$ 8,045
Milton-------------------------------------$ 7,880
Westford---------------------------------$ 7,543
Holliston---------------------------------$ 7,495
North Andover-------------------------$ 6,851
Reading----------------------------------$ 6,824
Walpole---------------------------------$ 6,693
Scituate---------------------------------$ 6,454
Median Family Income
Town-----------------------------------------Income
Needham-----------------------------------$160,644
Westwood----------------------------------$157,656
Sharon---------------------------------------$143,630
Hingham------------------------------------$142,820
Westford------------------------------------$137,240
Belmont-------------------------------------$135,676
Milton---------------------------------------$133,446
Holliston-------------------------------------$130,647
Westborough------------------------------$126,902
Reading-------------------------------------$122,512
North Andover----------------------------$121,414
Scituate-------------------------------------$117,457
Walpole-------------------------------------$109,206
Tax As A Percentage of Income
Town----------------------------------------% of Income
Belmont---------------------------------------8.1
Sharon-----------------------------------------6.7
Westwood------------------------------------6.3
Hingham---------------------------------------6.1
Walpole----------------------------------------6.1
Milton------------------------------------------5.9
Needham-------------------------------------5.8
Holliston--------------------------------------5.7
Reading---------------------------------------5.6
North Andover------------------------------5.6
Westford-------------------------------------5.5
Scituate---------------------------------------5.5
Non-Residential Assessed Value
Town------------------------------------------%
Westborough------------------------------35.5
Westford------------------------------------15.3
Needham*----------------------------------13.7
Walpole*------------------------------------13.6
Hingham------------------------------------12.8
North Andover*---------------------------12.8
Westwood*---------------------------------12.5
Holliston------------------------------------12.5
Reading---------------------------------------8.6
Sharon----------------------------------------7.1
Belmont--------------------------------------5.6
Scituate---------------------------------------4.5
Milton*---------------------------------------3.9
*Towns with split tax rates
Municipal Revenue Growth Factor –MGRF measures annual growth
rates of revenues.
Town---------------------------------MRGF Avg./2011-2015
Needham------------------------------------4.54
Westford-------------------------------------4.50
Westborough-------------------------------4.49
Hingham-------------------------------------3.80
Walpole--------------------------------------3.63
Sharon----------------------------------------3.50
Westwood-----------------------------------3.46
Belmont--------------------------------------3.27
North Andover----------------------------- 3.24
Holliston----------------------------------- --3.19
Scituate---------------------------------------2.90
Milton-----------------------------------------2.65
Reading---------------------------------------2.61
Expenditures By Major Segments
Education
Town-------------------------------------------% Budget
Holliston----------------------------------------59.04
Sharon-------------------------------------------58.60
North Andover---------------------------------55.19
Westford----------------------------------------54.17
Westwood--------------------------------------52.95
Scituate------------------------------------------52.84
Westborough-----------------------------------51.76
Belmont------------------------------------------51.71
Walpole------------------------------------------51.31
Milton--------------------------------------------50.90
Needham----------------------------------------49.61
Reading------------------------------------------48.61
Hingham-----------------------------------------48.45
Police
Town----------------------------------------------% Budget
Milton-----------------------------------------------8.74
Belmont---------------------------------------------7.49
Walpole---------------------------------------------6.12
Scituate---------------------------------------------6.07
North Andover------------------------------------6.05
Reading---------------------------------------------6.00
Hingham--------------------------------------------5.92
Sharon-----------------------------------------------5.29
Westford--------------------------------------------5.29
Hollliston--------------------------------------------4.82
Westwood------------------------------------------4.76
Needham-------------------------------------------4.32
Westborough--------------------------------------3.39
Fire
Town----------------------------------------------%Budget
Scituate---------------------------------------------7.14
Milton-----------------------------------------------6.78
North Andover------------------------------------6.56
Hingham--------------------------------------------6.23
Belmont---------------------------------------------5.98
Needham-------------------------------------------5.48
Reading---------------------------------------------5.24
Walpole---------------------------------------------4.79
Westborough--------------------------------------4.67
Westwood------------------------------------------4.50
Sharon-----------------------------------------------4.26
Westford--------------------------------------------3.45
Holliston---------------------------------------------1.45
Public Works
Town-----------------------------------------------% Budget
Reading----------------------------------------------8.23
Milton------------------------------------------------7.14
Scituate----------------------------------------------7.04
Belmont----------------------------------------------6.92
North Andover-------------------------------------6.60
Walpole----------------------------------------------6.26
Holliston---------------------------------------------5.94
Hingham---------------------------------------------5.92
Westwood------------------------------------------5.84
Westford--------------------------------------------5.41
Sharon-----------------------------------------------5.31
Westborough--------------------------------------4.77
Needham-------------------------------------------3.71
Debt Service
Town----------------------------------------------% Budget
Sharon-----------------------------------------------12.73
Westborough--------------------------------------12.72
Holliston--------------------------------------------10.83
North Andover-------------------------------------9.02
Hingham---------------------------------------------8.51
Needham--------------------------------------------8.34
Westford--------------------------------------------8.33
Westwood-----------------------------------------7.55
Belmont--------------------------------------------6.94
Reading---------------------------------------------5.82
Milton-----------------------------------------------5.67
Walpole---------------------------------------------3.59
Scituate---------------------------------------------3.44
Expenditures Per Capita –A rough approximation of the amount
of services provided
Town--------------------------------------------Exp. Per
Capita
Westwood----------------------------------------$4544
Westborough------------------------------------$4383
Westford------------------------------------------$3889
Needham------------------------------------------$3856
Hingham-------------------------------------------$3640
Holliston-------------------------------------------$3552
Sharon---------------------------------------------$3521
Scituate--------------------------------------------$3250
Reading--------------------------------------------$3085
Milton----------------------------------------------$3053
Belmont--------------------------------------------$3000
Walpole--------------------------------------------$2980
North Andover-----------------------------------$2471
Free Cash Balances – FY2014 Ranked by % of Budget
Town-----------------------Amount--------------% Budget
Hingham--------------$6,169,000------------------13.85
Reading---------------$ 7,584,000------------------8.03
Westford-------------$7,697,000-------------------7.36
Needham-------------$10,133,000-----------------6.53
Walpole---------------$ 5,353,000------------------6.04
Westwood-----------$ 3,806,000-------------------4.83
Westborough-------$ 3,891,000-------------------3.99
Scituate-------------- $ 2,813,000-------------------3.65
North Andover------$ 2,462,000-------------------2.57
Holliston--------------$ 1,358,000-------------------2.24
Milton-----------------$ 2,005,000-------------------2.04
Sharon----------------($335,339)---------------------(.43)
Stabilization Fund – Rank by % of Budget
Town--------------------Amount------------------% Budget
Holliston---------------$3,969,000-------------------6.56
North Andover-------$3,773,000-------------------3.94
Needham--------------$5,955,000-------------------3.84
Westford--------------$3,670,000--------------------3.51
Milton------------------$3,233,000--------------------3.29
Westwood-----------$2,546,000---------------------3.51
Scituate---------------$2,161,000---------------------2.80
Westborough------- $2,236,000---------------------2.29
Walpole---------------$1,561,000---------------------1.76
Belmont-------------- $
250,575---------------------.23
Sharon----------------$
100,378---------------------.13
Hingham---------------------0-----------------------------0
Reading----------------------0-----------------------------0
Comments
Milton’s average single family tax bill, Median Family
Income, and the average tax bill as a percentage of income remain in the middle
of the pack as they did 6 years ago. We moved from 8th to 7th
in tax bill and income, while moving from 7th to 6th in
tax burden.
The percentage of our assessed value remains the lowest of
the 13 communities, at 3.9% The share of
property taxes from commercial is higher because Milton, like 4 other
communities on the list, has a split tax rate, charging a higher rate for
commercial than for residential.
Our annual growth in revenues, as measured by the MRGF is 12th
out of 13 communities. At a five year average of 2.65 % it barely exceeds the
2.5% permitted under Proposition 2 ½ and reflects a systemic revenue problem
that can only be addressed by periodic overrides.
Major budget segment allocations show some changes since
2009.
·
The school spending allocation increased almost
5 percentage points to 50.9% of the budget moving Milton from last in rankings
to number 10.
·
Police and Fire allocations remained at (Police)
or near (Fire) the top of rankings. Fire moved up from 5th to 2nd.
·
Public Works increased from 5.96% of
expenditures to 7.14%, boosting our ranking from 5th to 2nd.
·
The cost of debt service remains low, at 5.67%
of budget, ranking 11th among the towns and below the state wide
average of 6.96%
·
Expenditures per capita provides a rough
approximation of the level of services provided by the town. Milton remains at 10th in ranking,
with expenditures of $3053 per person, almost $1500 per person less than the
number one town, Westwood.
Milton’s Free Cash balance for FY 2014 ranked 12th
out of the 13 communities, as a percentage of budget. At 2.04% we remain short of the Department of
Revenue’s suggested range of 3-5% of budget.
It has only been in recent years that we’ve begun to generate Free Cash
in any substantial amount and taxpayers need to understand that the existence
of $2 million in Free Cash doesn’t mean we can avoid overrides. Such balances
are necessary to fund expenditures such as Capital items, and as a source of
contributions to the Stabilization Fund.
And our Stabilization Fund has $3,233,360 in it (FY2014)
which as a percentage of our budget ranks us 5th among the towns.
Some towns with very large Free Cash balances have little or no balance in the
Stabilization Fund, such as Hingham, Reading, and Sharon.
Between these two funds we have 5.33% in reserves which
meets the DOR’s recommended range of 5-7%.