2009-07-10-FTF-rpt - Laserfiche WebLink

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2. General recommendations: Looking at the town’s longer-term fiscal situation, beyond the challenges of the upcoming budget cycle, the task force offers several more general recommendations. These should inform decision making both in the current budget cycle and beyond:  Exercising maximum restraint in total compensation: As in FY 2011, this will remain an essential priority for the next several years.  Proposition 2 ½ operating overrides: As the financial downturn abates, and when appropriate steps have been taken to restrain the growth in total compensation costs, it will again be appropriate to give Lexington voters the choice whether to increase property taxes when needed to maintain services.  Rebuilding reserves: As the downturn abates, it will be essential to rebuild the town’s reserves, to the level of 7% of general fund revenues, in a timely fashion.  Service restructuring and innovation: Even during periods of budgetary constraint, the town should remain open to incremental spending necessary to implement more cost-effective ways to provide services. 3. Long-Term Issues for further consideration: The focus of this report is primarily on issues of significance in planning for the FY 2011 and FY 2012 budgets. The task force also has identified a number of issues of longer term significance, but has not had the opportunity to fully review them or arrive at recommendations. These topics include: the large menu of large capital projects facing the town; the uses of Community Preservation Act funding; long-term compensation policies; effective planning for program restructuring; and issues on the state legislative agenda. 4