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2008-03-19-ATM-AC-rpt
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2008-03-19-ATM-AC-rpt
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3/2/2022 3:26:40 PM
Creation date
3/9/2009 6:57:53 PM
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Year
2008
Department
Town Clerk
Keywords or Subject
Minutes - AC - Appropriation Committee
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APPROPRIATION COMMITTEE REPORT TO 2008 ATM—March 19, 2008 <br /> <br /> <br />Table 1: Anticipated Free Cash Changes—2008 Annual Town Meeting <br />Certified Free Cash, July 1, 2007 $4,861,516 <br /> Less use for FY2008 (Article 27) ($750) <br /> Less use for operating budget (Article 4) ($2,618,766) <br /> Less use for capital (Arts. 9, 14, 15, 18, 19, 28) ($842,000) <br /> Less transfer to Post-Employment Fund (Article 22) ($400,000) <br /> Less transfer to Stabilization Fund (Article 25) ($1,000,000) <br />Remaining balance at end of Town Meeting $0 <br /> <br />Table 2: Anticipated Stabilization Fund Changes <br /> <br />Balance July 1, 2007 $5,461,674 <br />Balance December 31, 2007 $5,571,158 <br />Transfer in (Article 25) $1,000,000 <br />Approx. projected balance July 1, 2008* $6,655,000 <br />*Assumes an interest rate of 3.0% for January through June 2008 <br /> <br />Table 3: Anticipated SPED Stabilization Fund Changes <br /> <br />Balance July 1, 2007 $0 <br />Transfer in (Article 24) $350,000 <br />Projected balance July 1, 2008 $350,000 <br /> <br />Table 4: Anticipated Post-Employment Insurance Liability Fund <br />Changes <br /> <br />Balance July 1, 2007 $0 <br />Transfer in (Article 22) $400,000 <br />Projected balance July 1, 2008 $400,000 <br />A question has been raised about whether it would be acceptable to use a larger amount of Free Cash to <br />support the operating budget rather than build reserves or to use more of the anticipated FY2008 school <br />budget surplus to support the operating budget. The recommended FY2009 operating budget is to be <br />supported by an amount of what may reasonably be considered to be nonrecurring sources of funds that <br />borders on a level that makes this Committee uncomfortable – thus we do not recommend further <br />increases in the operating budget. <br />A few years ago, the Town’s financial reserves policies changed following the receipt of a “negative <br />outlook” note with respect to the Town’s Aaa bond rating. In particular, the Selectmen’s Ad Hoc <br />Financial Policy Committee recommended that reserves be built up for a number of purposes. This <br />Committee generally concurred with those recommendations and continues to support reserves growth. <br />Therefore, we are pleased to see the recommendations for this Town Meeting in regard to reserves <br />represented by the transfers to the Stabilization Funds and the Post-Employment Insurance Liability <br />Fund, by the continuation and development of revolving funds, and by the increase in the appropriation <br />for the Reserve Fund. The growth in reserves puts the Town in a better position to cope with State aid or <br />local receipts decreases from an economic downturn, with occasional unexpected increases in SPED <br />costs, or with other short-term financial problems. <br />In the Brown Book, the Town Manager notes that the recommended FY2009 budget includes about $14M <br />for capital expenditures which is about $2.5M more than was appropriated in FY2008. The proposed <br />amount of General Fund cash is roughly double that in the FY2008 budget. The proposed total General <br />Fund expenditures for capital, i.e., both cash and debt, exceed $7M (see page XI-3 in the Brown Book); <br />this is more than 5% of the total General Fund revenues (about $131M; see page II-1 in the Brown Book). <br />Page 10 of 50 <br /> <br />
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