2011-11-AC-STM-rpt - Laserfiche WebLink

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APPROPRIATION COMMITTEE REPORT TO NOVEMBER 2011 STM The FY11 Snow and Ice deficit is $654,053. This amount will be raised without appropriation from avail- able funds, i.e., without any further action required by Town Meeting. The release of the two set-asides, including the original$300,000 for the FY11 Snow and Ice budget,will make it easier to accomplish this. The Overlay Account is an annual budget set-aside required by law to cover the cost of property tax abatements and exemptions that are awarded to taxpayers during the year. Because FY12 is a certification year for the Town, which may lead to an increase in these costs, Town staff has recommended increasing the set-aside by roughly $200,000. The Overlay Account is currently budgeted at$849,153. The following table summarizes the sources and changes to funds available for appropriation at Town Meeting. Source Amount Comments Property Tax Levy $1,465,000 Increased revenue from"new growth" above budgeted projections State Aid ($67,214) Reduced State Aid State Aid Restoration $93,726 State payment mitigating reduced FY11 State Aid Local Receipts ($124 860 $46,000 reduced school music fees, $42,000 municipal receipts, $36,000 fines and forfeits Available Funds $0 No change in transfers from Available Funds $330,953 $300,000 set-aside for FY11 Snow and Ice deficit, and small revisions to Cherry Sheet assessments Revenue Offsets $727,628 Set-aside for potential reductions in State Aid ($654,053) FY11 Snow and Ice Deficit ($200,000) Increase to Overlay Account Enterprise Fund Receipts $0 No change in transfers from Enterprise Funds Health Insurance $1,250,000 Surplus from lower than expected increase health insurance costs (requires appropriation) TOTAL $2,821,180 Additional funds available for appropriation As of publication, our Committee is aware of proposals for approximately $1,320,000 in new and/or sup- plemental appropriations from the General Fund to fund capital projects, and to make adjustments in the Town's operating budget. If these appropriations are all approved, approximately $1,700,000 will remain available. Any unappropriated funds will flow to Free Cash at the end of FY12 and become available for appropria- tion after Free Cash is certified in the fall of 2012 (mid-FY13). Town Meeting would be then able to ap- propriate them during FY13 at a fall 2012 Special Town Meeting (if necessary) or for the FY14 budget at the 2013 Annual Town Meeting. Free Cash for FY11 has been certified at approximately $8.1 million. These funds will be available for appropriation in the upcoming FY13 budget. Details about proposed appropriations are covered in the article discussions that follow. Page 5