2004-12-02-AC-min - Laserfiche WebLink

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December 2, 2004 with pro-forma budget and demonstrate the impact of varying things, like overrides at different intervals, then start playing with other variables. ?? Try to achieve same level of service for next 4 years. Believes that current student-teacher ratio is a good thing and should be supported. Town has 78% of staff it had years ago, people working harder and more productively. Proposal based on keeping what we have now (at a minimum). ?? In order to do level service and to do something about increasing reserves, which are a very small percentage of our budget, what do we have to do? Must rely on support from taxpayers, employees, and service users. ?? Must recognize that we have various times in budget cycle when information becomes available. ?? Communication – revenues needed to support budget ?? Revisit policies on free cash, cash capital, PILOTS, etc. PH’s implementation strategy: ?? Develop overview budgets describing scenarios and effects of various budget drivers ?? With above info, select a scenario close to where the town as represented by its elected and appointed officials feel it can go. Must consider effect of future failed overrides. ?? Capital debt exclusions. PH asked question about secondary project – S. English replied: State looking to dump cash from ’05. We’ll get money from SBA after first of the year. Working with financial advisors to determine what that does for our cash flow and impact on our taxes. M. Young said that the $32M on BANS for secondary project will be compensated (75% of the reimbursable portion) by the lump sum from SBA. S. English: Not sure what will happen with interest – legislation didn’t deal directly with interest. Looking at this now. PH: Are you thinking in terms of making a bonding in Feb. that relates to this SBA reimbursement? If we’re getting influx of money, will we try to pay off some fraction of the $32M with that money? S. English thinks State will require us to do that. PH: Suppose you take all of that and pay off money, now owe $32M – X, now question is when are we going to pay that off, do we keep doing BANS? S. English: Working on all that now. Whether you issue permanently or BAN, there needs to be clarification on how you get your reimbursement. For permanently issued debt, reimbursement follows old rules. PH remarked that this will all have tax impact. EM asked if we might build up reserves by bonding? S. English: Lots of possibilities. DB: Important for S. English to bring this back to the committee when the information is in hand, because AC and others need to discuss the taxpayer impact and the opportunities it may present. S. English agreed. JB asked if this good financial news (on SBA reimbursement) will be incorporated into Moody’s presentation; S. English said yes. DK wants to understand the mechanics of short-term and long-term borrowing. M. Young said he’d get something together for David. Committee discussion re PH’s document: Page 4 of 8