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APPROPRIATION COMMITTEE REPORT, NOVEMBER 17, 2008 STM
<br />projected results, and that this appropriation from retained earnings does not necessarily mean that the
<br />reserve funds will actually be used.
<br />The historical growth of, and projected changes in, water and sewer retained earnings (if the usage and
<br />other assumptions employed to set the rates are borne out) are as follows:
<br />Enterprise Fund Reserves
<br /> 6/30/06 6/30/07 6/30/08 Change
<br />FY07-FY08 Projected Change
<br />FY08-FY09
<br />Water $2,090,334 $2,496,655 $2,537,249 $40,594 $(463,050)
<br />Sewer $ 447, 441 $2,137, 540 $2, 763,179 $625, 639 $0
<br />Total $2,537,775 $4,634,195 $5,300,428 $666,233 $(463,050)
<br />Following up on a recommendation of the Water and Sewer Rate Study Committee in its final report
<br />several years ago, the Town staff has indicated for some time that it plans to develop a reserve policy which
<br />defines the appropriate level of retained earnings to be maintained for emergency purposes for both funds,
<br />and which sets forth guidelines for the use of such funds either to mitigate future rate increases or to
<br />finance capital projects. Such a policy has yet to be adopted. In view of the steadily increasing levels of
<br />reserves, which now represent close to 40% of the annual revenues of each fund, the Committee urges that
<br />such a policy be adopted before next year's rate-setting.
<br />The Committee unanimously supports this article.
<br />Article 5: Land Purchase -
<br />off Cedar Street & off Funds
<br />Requested Funding
<br />Source Committee
<br />Recommendation
<br />Hartwell Avenue $186,100 CPA Approve (9-0)
<br />The CPC is recommending that $18b,100 be appropriated from the Open Space Reserve Fund to purchase
<br />two parcels of land. These two landlocked parcels are owned by the Goodwin family, are contiguous to
<br />town-owned open space, and are on the Conservation Committee's master acquisition list. An attempt to
<br />purchase these 20.5 acres last spring was thwarted by problems surrounding the appraisal of the parcels.
<br />Now that these problems have been rectified, each parcel has been valued at $70,000. Additional costs
<br />incurred to purchase these properties include approximately $46,100 for surveying, filing etc. The
<br />Community Preservation Open Space Reserve has an unencumbered balance of over $1,120,000, and the
<br />Undesignated Reserve has an unencumbered balance of over $6,400,000.
<br />The Committee unanimously supports this article.
<br />Article 6: Harrington Pre-
<br />School Pla round
<br />Yg Funds
<br />Requested Funding
<br />Source Committee
<br />Recommendation
<br /> $35,135 CPA Approve (9-0)
<br />This request is for $35,135 to supplement $75,000 of CPA money authorized at the 2008 ATM and
<br />$20,000 of privately raised money. The goal is to construct a handicapped accessible play structure. The
<br />original cost estimate of $95,000, after further consideration, has now escalated to $130,135. The original
<br />and increased project costs break down as follows:
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