2012-04-BOS-min - Laserfiche WebLink

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Budget Collaboration/Summit 6 – April 2, 2012 School Municipal Available Shared Expenses Budget $879,821 $ 632,591 $247,230 Kindergarten Fee Reduction Funds $(127,903) $127,903 Estabrook Bus Fee Reduction ________ $(150,000) $150,000 Total Budget Adjustment $879,821 $354,688 $525,133 The amount designated for the School Department should be put in reserve to fund the potential Article 17 School Bus Transportation Subsidy. Ms. Stewart asked why these savings could not have been split between the schools and municipal using the allocation model for the full amount. Mr. Levine suggested that a multiple year plan needs to be reviewed, not just FY2013 and FY2014. Need to sustain business over the long run while raising taxes at a slow rate. Also need to make sure putting funds away for capital projects. Then if there is lots of extra money and the desire is to reduce the tax rate it should be done smoothly over many years. He is against putting any additional funding toward the OPEB Stabilization fund. Several members of the group suggested looking at all the needs and prioritize how the money should be used. Options mentioned include: take care of capital projects on the tax levy; consider using funds to reduce debt instead of reducing the tax rate; and lastly reduce the tax rate. Mr. Pato was opposed to using the funds for future debt exclusions because of the importance of providing the voters with the cost of a particular project. The group discussed the liquidation of the Health Fund and whether the money should be used for OPEB or capital. In case the Town returns to self-insured health care it may be a good idea to leave the money in reserve for that purpose. Mr. Kanter said the Capital Expenditures Committee voted 3 in favor and 2 opposed against combining funding of projects. Ms. Stewart would like to see more of the funds go to school capital projects. Dr. Ash suggested using the funds for operating costs and capital for middle projects using a revenue model. It was pointed out that the staff recommendation includes putting $500,000 in the Building Maintenance/Renewal Fund for FY2014 and FY2015. Since Article 4 – Appropriate for FY2013 Operating Budget is expected to come up at Town Meeting, Mr. Bartenstein suggested that the money be put in a special stabilization fund which would give the group time to decide how to use before the next Special Town Meeting.