2008-10-01-AC-min - Laserfiche WebLink

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Budget Collaboration-Financial Summit 1 – October 1, 2008 phase-down, growth in recreation benefit costs); Revenues set aside for non-recurring expenses ($2.93 million in free cash to fund reserves - $350,000 for SPED, $840,000 for cash capital, $450,000 for OPEB, $470,000 for FY2009 supplemental funding for energy bills, and $820,000 for other unspecified needs). Mr. Kanter requested that a cash capital policy be put in place. Policy Issues Related to FY2010 Budget. Mr. Valente reviewed the FY2010 budget policies issues: 1. The national economy/crisis in the financial markets – do not know what the impact will be. 2. Potential 9C State Aid reductions for FY2009 – it is possible that the governor could make adjustments to state aid. Do not think will affect FY2009, but need to watch. 3. Wages/Benefits (collective/coalition bargaining) – this is 76 percent of the budget and needs to be discussed. 4. Use of one-time revenue sources to balance FY2010 budget – currently have robust free cash. Will continue to analyze to make sure use of one-time revenue only for non-recurring costs. 5. Potential debt exclusion (roads/intersections/sidewalks/traffic calming) – there are no funds for major road work without a debt exclusion and Chapter 90 money has not increased in years. Staff will provide options to Selectmen. 6. Energy Costs – in process of bidding for natural gas and electricity for next 3 years. The Appropriation Committee provided recommendations on a financial strategy and possible goals. For a long-term goal they suggest making changes to the Town’s economic model to maximize the growth rate of our recurring revenue with minimal reliance on operating overrides and to minimize the growth rate of recurring expenses. For a short-term goal they suggest slowing the growth in health insurance expenses. Strategic imperatives to achieve the goals include accelerating the growth in commercial tax revenues and other revenue sources; slowing the growth in health insurance expenses; being circumspect about the FY2010 operating budget and its effects on future operating budgets; maintaining, developing or disposing of capital assets efficiently. 2. Capital Summit – Town Manager’s Task Force Mr. Valente reviewed the report/recommendations on the Town Manager’s Task Force on Capital Projects. They also provided a matrix of the available buildings and the space available and building needs of each. The findings/recommendations are: 1) need to see the results of the school master plan before going further; 2) request funding to conduct feasibility of Munroe School; 3) defer the next phase of engineering/design for a Senior/Community Center until the results of the School Master Plan and the Munroe feasibility study are completed; 4) request a business plan from Munroe Center for the Arts; 5) prioritize building reuse; 6) defer issuing RFP for sale of Munroe until further discussion; 7) other concerns – replace fire alarm and sprinkler