2005-04-06-TM-Report of the Town Manager -rpt

Browse Search

Town of Lexington – 2005 Annual Town Meeting 4. The schools received $350,000 in Special Education Circuit Breaker funds. 5. We were able to increase the estimate for new growth based upon the restoration or creation of two positions within the Assessor’s Office. 6. We were able to increase revenues for both Municipal and Education services. As many of you know, in fiscal year 2005 and again in 2006 we developed the budget with the backdrop of striving to maintain our Aaa rating from Moody’s Investor Services. We made significant progress in FY 2005 with funding of the stabilization account and no use of free cash. We continued this progress in 06 by again recommending the appropriation of $603,646 to the Stabilization Fund, and recommending no use of free cash to balance the budget. When we met with Moody’s this past January we kept our Aaa rating but they also kept on the negative outlook. They cited the following for their decision: Slide ?? Lexington has a strong tax base, ?? We have a manageable debt position, ?? We successfully passed an operating override, ?? But we have experienced transitions in Senior Management, ?? And we continue to have diminished reserves. In the coming year we will be reviewing a number of policies to continue improving the Town’s long-term financial stability. One important aspect is adequate planning and funding for capital investment. Capital recommendations for FY 2006 include a disciplined amount of new borrowing authorization, and strategic use of the $713,000 available under the Selectmen’s cash capital policy. Slide ?? FY 2006 cash capital recommendations include appropriating $570,000 for new cash capital projects. ?? In addition to this appropriation, we have included $60,000 in the recommended Public Works budget for ongoing maintenance LCV Art. 2 Speech to Town Meeting 2 of 4 5/1/2009