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

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January 11, 2007 large; one potential source of funding could be savings in employee drug benefit costs that are expected under the Medicare Part D program, estimated to be about $200,000; another potential source is the approximately $1.5 million in recurring revenues that has been earmarked to fund the Town’s employee pension liability, which will become available after that liability becomes fully funded in 2015 (according to current projections). ?? The Town Manager has recommended $118,000 in program improvements out of approximately $900,000 requested by department heads during the departmental budget process. ?? An $88,000 increase is being recommended in fire department overtime because that line has historically been underfunded; this will relieve some pressure on the Reserve Fund. ?? Costs of springtime street sweeping and regular-time plowing activities by DPW personnel (about $35,000), have been transferred from the snow and ice budget to the Highway Department, which will relieve some pressure on the snow and ice budget, which is otherwise level-funded; the costs of these activities will continue to be monitored so that accurate assessments can be made of total snow and ice removal costs. ?? The Town Manager proposes to increase reserves and contingency accounts by $100,000, including a $50,000 increase in the Reserve Fund to $450,000; however, he will recommend a contribution of only $1,000,000 to the Stabilization Fund, compared with $2,650,000 last year, which would bring the total balance in the Stabilization Fund to $5,266,000. Essentially all of the Town’s non-recurring revenue has been targeted for either one-time capital improvements or increases in reserves. ?? The long-term plan is to steadily increase the Reserve Fund to an amount more suitable for an overall town budget exceeding $100,000,000. ?? In connection with a recent bond issue by the Town, Moody’s just reaffirmed the Town’s Aaa bond rating citing, in part, the steady growth in reserves. ?? Capital budgets for both the Town and the Schools have been submitted. Details can be found in the White Book; however, David Kanter cautioned that the proposed capital program for the schools is being revised in a material way from that shown in the White Book, and may include a proposal for work on HVAC equipment at the Clarke Middle School. ?? The Town will be required to put about $2.3 million of the funds that the State has paid up front to retire its School Building Assistance reimbursement liability into a sinking fund to apply to excluded debt service costs until the affected debt has been retired; although these funds will not be available to the - 3 -