2011-11-17-AC-min -summit 2 - Laserfiche WebLink

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Summit Meeting Board of Selectmen, School Committee, Appropriation Committee and Capital Expenditures Committee November 17, 2011 A Summit was held on Thursday, November 17, 2011, at 7:00 p.m. in the Public Services Building Cafeteria, 201 Bedford Street. Chairman Manz, Mr. Cohen, Mr. Burnell and Ms. Mauger; Mr. Valente, Town Manager; Mr. Addelson, Finance Director, Mr. Kalivas, Budget Officer and Ms. Chabot, Assistant to the Executive Clerk, were present. Also Present: All School Committee (SC) members; Dr. Ash, Superintendent of Schools; all members of the Appropriation Committee (AC) with the exception of Mr. Pato, Mr. Cohen, Ms. Garberg and Mr. Michelson; all members of the Capital Expenditures Committee (CEC) with the exception of Mr. Lamb and Mr. Edson. FY2013 Revenue Proiections Overview Mr. Valente gave a summary of General Fund Revenues. Gross General Fund Revenues include all revenues projected as available for use in FY2013. Net General Fund Revenues are gross revenues less revenues recommended to be set -aside to fund designated expenses. In FY2013, Gross Revenues are projected to increase by approximately $7.12 million, or 4.63 %, while Net Revenues are projected to increase by approximately $5.46 million, or 3.63 %. Presentation by Revenue Source Mr. Addelson gave a more detailed description by revenue source as follows: Property Tax Levy The FY2013 property tax levy is projected to increase $5.2 million, or 4.06 %. The projected levy is a function of the FY2012 levy limit increased by 2.5% per Proposition 2 1 /2, plus an increment for new growth. FY 2013 new growth will be a function of construction activity for the period July 1, 2011 to June 30, 2012. FY2013 new growth is estimated at $2,000,000 based on conversations with the Building Commissioner, the Chief Assessor and a review of historical data on new growth. State Aid FY2013 state aid is projected to remain unchanged from its FY2012 level of $8,441,625. Final 2013 state aid numbers will probably not be known until June 2012 when the Legislature adopts, and the Governor signs, the FY2013 State budget. According to staff at the Massachusetts Municipal Association (MMA), two pending events — the recommendations of the Congressional budget cutting committee and the Governor's projection of FY13 state revenues — may give us a more definitive sense of the direction state aid might go. As a hedge against potential reductions in state aid, it is recommended that approximately $420,000 of estimated FY13 revenue be set - aside to offset such cuts. It is also recommended that any reduction in state aid in excess of $420,000 be offset with appropriations from the Stabilization Fund.