2007-04-28-ATM-AC-rpt4 - Laserfiche WebLink

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APPROPRIATION COMMITTEE 4th REPORT, Apri128, 2007, TO 2007 ATM position on this request to present to Town Meeting-we felt it was important to provide you what we have assembled on the request as soon as practical; hence this "information only" reporting on this request. Project Description Amount Requested Funding Source Committee Recommends (c) Shared Expenses $19,869,487 0794,544 $19 869 487 .' Line 2130 (Employee contin ent on g GF ($794,544 contingent on an Benefits, Health Insurance) an override) override) (7-0) See our 2nd Report to the 2007 Annual Town Meeting, released April 21, 2007, pages 12-14, for our discussion of all Shared Expenses-from which just this one Line Item was divided out for discussion at Town Meeting in conjunction with Article 21(a), Line Item 1100, Lexington Public Schools. As stated in that 2nd Report, this Committee unanimously (7-0) supports the entire Shared Expenses request- including this Line 2130. Article 42: Amend FY2007 Operating Funds Re uested q Funding Source Committee Recommendation Bud et g $209 469 Transfers among $209,469 (and all line items and re uested transfers q X209,469 from the among line items) Unreserved Fund (8-0-1) Balance ("Free Cash") This is an annual placeholder in the Warrant to allow Town Meeting to fund unforeseen expenses in the current fiscal year budget (FY2007). Appropriations under this article are one of several mechanisms available for dealing with budget surprises during the course of a fiscal year. Monies in the Reserve Fund (funded in FY2007 at $400,000) are available, with the approval of the Appropriation Committee, to cover extraordinary, unforeseen expenses. Payments from this fund are typically made in the last few weeks of the fiscal year. (For further information about the Reserve Fund, see the discussion of it below under Shared Expenses.) Municipalities may also now make end-of year transfers of unexpended balances in one departmental line item to cover overages in other line items in the same department, provided that an individual transfer does not exceed 3% of the source line item. It is anticipated that all three mechanisms will be employed to reconcile the FY2007 budget before the close of the fiscal year on June 30, 2007. In particular, end-of fiscal-year " 3% transfers" and Reserve Fund transfers are anticipated to cover shortfalls in the police and fire overtime budgets, in the Town Clerk's budget to cover the expenses of the anticipated June special override/debt-exclusion referendum, and to cover increased legal costs associated with contract and collective bargaining negotiations. At this time, however, the following FY2007 budget changes are recommended for action by this Town Meeting. Municipal Requests The following FY2007 municipal budget shortfalls, totaling $92,500, will be addressed under this Article by reducing the appropriations to the salary line items for 7100 Community Development, 8120 Legal, and 8600 MIS (which are running surpluses for FY2007 due to vacancies and delays in hiring)-in effect, "transferring" funds between salary and expense line items without impacting the FY2007 bottom line: Line Item 7100 Community Development Expenses: $26,000 Lines Items 8210-8220 Town Manager Expenses: $40,000 Line Item 8600 MIS Expenses: $26,500 Page 10 of 13