2007-01-11-AC-min - Laserfiche WebLink

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January 11, 2007 ?? SPED Circuit Breaker reimbursements are not contained on the Cherry Sheet ?? Cherry Sheet amounts are projected to drop by approximately $187,000 from FY2007 to FY2008 because the Town received the final reimbursement in FY2007 for Hastings School renovations under the old School Building Assistance program. ?? Most of the Cherry Sheet state aid goes directly into the General Fund and can be spent for any purpose, but some components, including library aid and school lunch reimbursements, are earmarked just for those programs. ?? The state aid number for FY2008 at this point is just an educated guess; we will have a better fix when the Governor issues his proposed state budget in February and when the state legislature completes the budget process later in the spring; however, the Town Manager has made his best effort to project an accurate number, and the final amount is not likely to be significantly different. ?? Some conservatism has been built into the local receipts estimates in response to the recommendation of the Financial Policy Committee to plan for a recurring source of free cash and to hedge against unforeseeable negative developments; otherwise the projections in the proposed budget are as accurate as they can be made at this time. ?? Revenue offsets are projected to increase in FY08 because this will be a revaluation year, necessitating an increase in the overlay account, and to anticipate a potential increase in the snow removal deficit. ?? PILOTs and indirect expense payments from the Water and Sewer Enterprise Funds will be reduced by $187,500 as part of a multi-year program to phase out the PILOTs and to bring the indirect expenses to a more appropriate level, but Recreation Fund indirect payments will be increased by about $20,000. ?? The Manager proposes to increase reserves, including the Reserve Fund, by modest amounts, and also proposes an increase in the amount of cash capital appropriated for maintenance of the capital infrastructure, as recommended by the Financial Policy Committee. ?? Health benefit costs are projected to increase by about 12%, but the increase shown in the budget is only about 8% because budget projections last year were higher than necessary. ?? The Town has engaged an actuary who is in the process of evaluating the Town’s liability for post-retirement health care benefits; the actuary’s report is expected by the end of February, but no provision has been made in the FY08 proposed budget for funding this liability; the liability is expected to be very - 2 -