2005-11-04-SPTM-AC-rpt - Laserfiche WebLink

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APPROPRIATION COMMIT lEE REPORT-NOVEMBER 2005 Appendix A: Projections for FY 2006-2008 Introduction The Appropriation Committee Report to the 2005 Annual Town Meeting last spring provided: • Estimates of revenues required to build reserves and maintain services through FY 2008 • Budget projections through FY 2008. Since April,there have been increases in both expenses and revenues and the Special Town Meeting will be voting on supplemental appropriations to cover additional increases in expenses. Accordingly,this Appendix and accompanying Exhibits describe the recent changes to our fiscal picture and the effects of approving or disapproving Special Town Meeting articles on our projected revenue requirements for fiscal years 2007 and 2008. Background and Assumptions For purposes of this Appendix,we have assumed: • The requested appropriation of$528,177 for unpaid FY 2005 bills in Article 4 is approved. • Exhibits Al and A3 assume that Article 5 is approved for$847,396;Exhibit A2 shows the effects of approval or disapproval. • Level service is defined in subsequent years as post-November 2005 Special Town Meeting service levels. (Exhibits Al and A3 assume approval of Article 5 and no restoration in FY 2007 or FY 2008 of cuts taken in the FY 2006 school budget prior to the Special Town Meeting; Exhibit A2 projects the effects of either approval or disapproval of Article 5 and assumes that the service level resulting from either approval or disapproval continues through FY 2008.) • There are two primary components to "reserves": the "undesignated fund balance" which contains "free cash", and monies in stabilization funds. In this appendix "reserves" is taken as the sum of these two components. The new projections in this Appendix have been updated to include: • The recently-certified free cash balance of July 1, 2005 • Latest estimates of FY 2006 new growth • Latest estimates of FY 2006 State aid • Changes in the FY 2006 budget since April 2005 Town Meeting Exhibits Al. Changes in the FY 2006 Budget from April 2005 Town Meeting A2. Projected Operating-Override Requirements to Maintain Level Services in FY 2007-2008 and Continue to Build Reserves$3M from July 1,2004 to July 1, 2007 A3. Three-Year Forecast Changes in the FY 2006 budget from April 2005 Town Meeting Exhibit Al shows the changes in FY 2006 expenses and revenues since the April 2005 Appropriation Committee Report. Line 10: Increase in FY 2006 school budget if Article 5 is approved for$847,396. This is shown in the"expense" line as we do not have a break down in how this splits between lines 8-10. Line 11: Offset in education budget due to reducing the Minuteman assessment Line 34: Sum of Article 4, $528,177,and snow and ice deficit, $646,688 Line 40: Increase in FY 2006 State Aid Line 42:Free Cash to be appropriated if Articles 4 and 5 are approved Line 48: Increase in FY 2006 new growth over what was estimated in April 2005 Lines 37 and 55: Total change due to the above incremental changes Page 7 of 11