1981-05-26-AC-ATM-rpt - Laserfiche WebLink

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APPROPRIATION COMMITTEE SUPPLEMENTAL REPORT -3- 2. The remaining $237, 000 (approximately) in cuts would come from the Town Operating Budget and the School Budget in the ratio of 45% to 55% which is their approximate share of the total town annual expen- diture. The cuts would, of course, be made on those items which the Selectmen and School Committee felt would have the least impact upon their operation. The Appropriation Committee reiterates again that they were not happy with this solution because it involved the $1, 200, 000 taken from "free cash" . However, we felt it entirely unfair to propose more drastic cuts at this late date when the complete legal operation of 2 1/2 finally became clear. Less than two weeks ago a new estimate was presented of all revenues including General Revenue Sharing Funds, unexpectedly it was $583, 000 larger than the estimate made in October. The return from increased fees was greater than anticipated, coupled with high interest rates earned on our surplus cash. As soon as this fact became apparent, the Selectmen proceeded to wipe out the deficit of $354, 000 and add to their budget and to articles which they wished to support. Most of the approximately $600, 000 is recommended to be spent on the basis that these new items need to be done and will cost more in the future. Today is a very special situation, different from the past, and we do not concur in this philosophy: What needs to be done is done, but only at the expense of some other items which were planned. Next year and the year after, are going to be very difficult under 2 1/2 unless changes are made in the law or its interpretation. These we cannot count on before they happen. Our negotiated salaries are going up at the rate of 7% per year and our uncontrollable costs at a much faster rate. The tax receivables for real estate will go up only 2 1/2% . We will need the cash, and need it badly, if we are to maintain reasonable services to the citizens . The Appropriation Committee feels that it would indeed be negligent if we did not call this to the attention of the Town Meeting by instigating positive action. We feel that the $583, 000 should be used, but that amount subtracted from the "free cash" of $1, 200, 000 which was to be recommended to the Town Meeting for transfer, thus utilizing only about $617, 000 of our "free cash" . This will, in reality, bring us back to square one with the necessity of cutting back about $350, 000 as stated earlier in this report. In order to give the Town Meeting Members an opportunity to vote on this important issue, we shall propose that Article 73 ("free cash" transfer) be taken up in advance of Article 39 (origi- nally Article 4) in other years . Under this Article 73 we shall propose that the amount of "free cash" which is to be used in the 1981-82 Town Budget shall be restricted to $625, 000 .