HomeMy WebLinkAbout2005-11-04-SPTM-AC-rpt APPROPRIATION COMMITTEE
TOWN OF LEXINGTON
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APRIL 19TH
REPORT TO THE NOVEMBER 2005
SPECIAL TOWN MEETING
Released November 4, 2005
Appropriation Committee Members—Fiscal Year 2006
Alan M. Levine Chair• Deborah Brown Vice-Chair
John Bartenstein • Rodney E. Cole • Richard Eurich
Paul Hamburger • Pam Hoffman • David G. Kanter • Eric Michelson
APPROPRIATION COMMIT 1'EE REPORT-NOVEMBER 2005
Contents
Introduction 2
Article Analysis and Recommendations 4
Article 4: Unpaid Bills 4
Article 5: Supplementary Appropriations 5
Article 6: School Projects and Equipment 6
Appendix A: Projections for FY 2006-2008 7
Exhibit Al: Changes in the FY 2006 budget from April 2005 Town Meeting 8
Exhibit A2:Projected operating-override requirements to maintain level services in FY 2007-2008 and build
reserves by$3M from July 1, 2004 to July 1,2007 9
Exhibit A3:Three-Year Forecast 10
Page 1 of 11
APPROPRIATION COMMIT fEE REPORT-NOVEMBER 2005
Introduction
For this Special Town Meeting, the Appropriation Committee has focused its deliberations on the
financial articles, i.e., Articles 4, 5, and 6. Herein we report on a number of changes in the Town's fiscal
situation since the Annual Town Meeting was adjourned last May, summarize our view of the current
fiscal situation, and give our recommendations about actions under these articles.
Since the dissolution of the 2005 Annual Town Meeting, there have been positive developments most
notably in free cash, State aid, new growth, and local receipts, while on the negative side the snow-
removal deficit has been determined and deficits have developed in the school budgets for both the past
and current fiscal years.
The Massachusetts Department of Revenue has certified free cash as of July 1, 2005 at a level that greatly
exceeds that projected by this Committee in our forecasts last spring. Indeed, while we projected that free
cash as of the close of FY1 2005 would be just under $3M, it has been certified at a level of $5.4M. This
amount includes approximately $1.8M of interest received during fiscal years 2000 through 2003 from
the temporary investment of funds that the Town borrowed to pay for the secondary-school-renovation
project. These accumulated funds were not part of our financial discussions last spring regarding reserves
or free cash since the Town had not received direction from the State Department of Revenue regarding
the possible uses of such funds. (After the Special Town Meeting, this Committee will discuss the
appropriate uses of these funds.) The increase in free cash also reflects a positive change in local receipts;
this may be related to improvements in the economy.
Table 1: Free Cash
Free cash as certified on July 1,2004: $ 2,323,202
Less free cash appropriated at 2005 Annual Town Meeting $ (150,000)
Interest earned on prior-year bond issuances: $ 1,852,214
Receipts above estimates*: $ 1,765,939
Expense reversions: $ 333,862
Changes in receivables and special revenue deficits: $ (715,232)
Free cash as certified on July 1,2005: $ 5,409,985
*"Of this item,approximately$850,000 is attributable to new growth and state aid that came in above the forecasts
used to set the FY 2005 budget;approximately$400,000 is attributable to FY 2004 Motor Vehicle Excise tax
commitments that were not received from the State until FY 2005;and the balance of approximately$500,000 is
attributable to apparent"structural"growth in our local receipts."
' For accounting purposes, the Town of Lexington uses a fiscal year which begins on July 1 of the prior
year and runs through the following June 30. For example FY 2005 began on July 1, 2004 and ran
through June 30, 2005.
Page 2 of 11
APPROPRIATION COMMIT fEE REPORT-NOVEMBER 2005
The Town will receive $8,561,958 in State aid for FY 2006 which is $502,797 above the $8,059,161
received for FY 2005. The FY 2005 amount had been projected for FY 2006 for purposes of building the
budget last spring. The major components of the increase are an increase of$310K in Chapter 70 aid for
the schools and an increase of about$180K in State lottery aid.
New growth has been determined by the Town Assessor and Board of Assessors to be at least$1,605,000
which exceeds by$500,000 the conservatively estimated value of$1,105,000 used to build the budget last
spring. In a change from past years,the final number will not be determined until closer to the time when
the tax rate is set. Nevertheless, the Assessors consider the $1,605,000 to be a solid lower limit that is
sufficiently credible to be used in this Special Town Meeting.
Between new growth and State aid, the increase since last spring in the estimate of recurring revenue that
will be used for the budget for FY 2006 is therefore just over $1M. There has been no adjustment to the
estimate of local receipts for FY 2006 even though actual receipts for FY 2005 came in higher than the
estimate for FY 2006. Any windfall realized at the close of FY 2006 will flow to free cash.
This fall the Town received a rebate from NSTAR for the investment the Town made in a geothermal
heating-and-cooling system as part of the construction of the new Harrington School. It is our
understanding that this rebate was expected and budgeted when the project was approved. Town Meeting
will need to appropriate these funds so that they can be applied to the school project; this will most likely
be done at the 2006 Annual Town Meeting. The new Fiske School will also have a geothermal heating-
and-cooling capability and a similar rebate is expected to be received when that building is completed.
That rebate will be handled similarly to the Harrington School rebate.
On the negative side, a deficit of$646,688 remains from FY 2005 snow removal, and bargaining with
municipal employee unions is in progress. It is likely that the latter will lead to contract settlements with
wage increases. While there are some funds in the FY 2006 budget for wage increases, we cannot predict
the outcomes of the negotiations and especially their cumulative impact on the municipal budget. here
are newly identified expenses associated with the schools for both FY 2005 and FY 2006. These are
discussed below in context with Articles 4, 5,and 6.
Table 2: Changes to the FY 2006 Budget(not including changes in free cash)
Revenue:
Net amount of State aid above 2005 Annual TM projection $502,797
Amount of new growth above 2005 Annual TM projection $500,000
Expenses:
FY 2005 snow-removal deficit $646,688
Art.4: Prior year's bills(Schools) $528,177
Art.5: Net supplementary appropriation (Schools) $790,396
The FY 2005 snow-removal deficit of$646,688 will be offset by the increase in new growth ($500K) and
a portion of the increase in state aid ($146,688) without any action by Town Meeting. The balance of the
State aid increase ($356,109) is thus available for appropriation at this Special Town Meeting. Other
monies available for appropriation include free cash and stabilization funds (although there is no plan to
appropriate the latter).
Page 3 of 11
APPROPRIATION COMMIT fEE REPORT-NOVEMBER 2005
We have modified our projections of revenue and expenses for the next three fiscal years to include the
above changes. Please see Appendix A for details. In general, the unanticipated increase of about $2.4M
in free cash and the more than $1M increase in the FY 2006 revenue estimates leave the Town in a
stronger financial position than was anticipated last spring even if the appropriations under Articles 4 and
5 are approved(barring major changes). Although the Town is now in a stronger financial position than it
was in last spring, the general financial outlook of the Town remains one of insufficient resources.
Lexington is still faced with an uphill struggle to maintain adequate services in the long run, as health
care expenses and wages increase faster than the available revenue. This will be further exacerbated if
Proposition 2 1/2 overrides are defeated.
With regard to the school budgets for Fiscal Years 2005 and 2006, we were both surprised and dismayed
to not only learn that the FY 2005 school expenses exceeded the appropriation but also that the FY 2006
expenses were underestimated last spring. Given the tight fiscal situation of the Town, it is imperative that
the causes of the overruns and the reasons for the underestimates be diagnosed and that changes in
reporting and/or other procedures and in supervision of staff to avoid such problems in the future be
implemented. Indeed, Superintendent Ash and the School Committee have moved promptly and
vigorously to address these problems, both in the actions they have already taken since the problems were
recognized, and in the undertakings they have made about remedial actions and procedures they will
implement in the coming months. The Appropriation Committee has not conducted an independent
investigation and so will not comment in detail on the causes or remedies. We will note, however, that
there is potential for further expense increases in the school budget beyond the control of the school
administration from increases in the number of students who require special education (SPED) services,
from increases in the kinds of SPED services required by our students, and from increases in energy costs
beyond what is currently projected.
The Committee gratefully acknowledges the invaluable support provided to us by Michael Young,
Lexington's Budget Officer.
Article Analysis and Recommendations
Article 4: Unpaid Bills Funds Funding Committee
Requested Source Recommends
$528,177 Free Cash Approval (9-0)
The Town, as represented by the Lexington Public Schools, has received bills from a number of vendors
for services received by the Schools during Fiscal Year 2005. These vendors have not been and cannot be
paid unless this article is approved since the full amount appropriated for the school operating expenses in
Fiscal Year 2005 has already been expended and no funds from that appropriation were encumbered to
pay these bills. The Town has both a moral and legal obligation to pay. It should be noted that the unpaid
bills do not necessarily correspond to the line items that went over budget.
We understand that the FY 2005 school budget overrun is attributable in part to the payment for expenses
incurred in FY 2004 with FY 2005 funds. Among the other more obvious effects, such a practice makes
it harder to determine which lines of the school budget were underfunded in FY 2005. We strongly
endorse the decisions of the School Committee and Administration to not repeat this practice.
Page 4 of 11
APPROPRIATION COMMIT fEE REPORT-NOVEMBER 2005
Article 5: Supplementary Funds Funding Committee
Appropriations Requested Source Recommends
$847,396 Free Cash, State Approval (9-0)
Aid, Transfer
In July 2005, a review conducted by the new Superintendent and his staff of the current fiscal year (FY
2006) budget of the Lexington Public Schools revealed that a number of areas of the budget are
substantially underfunded. In August the total shortfall was estimated to be in the vicinity of$1.3M. In
September this shortfall was later confirmed by an independent consultant, whose evaluation suggested
that this estimate was still a bit low. A thorough review of all expenses by the administration identified
an additional $226,861 of special education related shortfalls, raising the underfunding to about $1.5M.
The School Committee, Superintendent, and School administration have addressed these budgetary issues
by 1) increasing the price of school lunches to raise additional revenue ($257K); 2) cutting positions and
the associated services ($414K); 3) cutting a program in which staff from Minuteman
Science/Technology High school conduct a program in the Lexington middle schools ($57K); and 4)
proposing that the remaining about $790K shortfall be funded by a supplementary appropriation. (The
actual motion will request funds of$847,396, of which $57,000 represents a transfer from the Minuteman
Tech budget to the school budget;the balance is $790,396.)
We believe that it is the prudent course of action to correct the school budget in a timely manner so that
with responsible management there is a reasonable expectation that at the close of the fiscal year
expenditures will not exceed the appropriated amount. If a supplementary request is not approved under
this article, we recommend that a corresponding level of positions and expenses be cut from the school
budget. In short,the operating plan and appropriation need to be consistent.
If the decision on a supplementary appropriation were to be postponed until the Annual Town Meeting
next spring, the Superintendent would need to manage the budget until next April assuming that no
supplementary appropriation will materialize at that time. This effectively means that the planned level of
services to the students must be reduced. The reduction would occur even in the case that the anticipated
deficit is managed by encumbering funds. If, alternatively, the Superintendent were to assume that a
supplementary appropriation would be approved next spring and the appropriation did not come through,
the schools would be put into a particularly difficult situation in the last few months of the year. This
Committee strongly recommends that such an assumption not be adopted and that this request for a
supplementary appropriation be granted now.
It should be emphasized that a decision under this article creates a clear understanding for all involved as
to the spending level that the Town Meeting is willing to support. If there is no decision made under this
article, misunderstandings are bound to occur.
We favor approval of the supplementary appropriation for the following reasons:
1) The positions and services represent important components in the provision of services by the School
system.
2) The services in question are highly likely to be included in the budgets for the ensuing school years.
3) It is difficult to change the level of services in the middle of a school year. None of the supplementary
appropriation is requested to improve programs or services beyond those planned when the budget was
approved last spring. Rather, some reductions have been made, and the School Committee has taken the
position that further reductions are highly undesirable.
Page 5 of 11
APPROPRIATION COMMIT fEE REPORT-NOVEMBER 2005
4) It should reduce the need to defer school expenses from FY 2006 to FY 2007 by, for example,
inappropriately drawing down supply inventories, shortchanging facilities maintenance, or falling behind
in the replacement of equipment.
5) The Superintendent has stated that he will not approve the use of any of these supplementary funds for
program expansions or improvements; the funds will only be used to carry out the presently planned
school program(i.e., with the changes described in the 1st paragraph of this Article's discussion).
It has been noted that if Town officials, including Town Meeting Members, knew last April what we
know at present about the cost of supporting the current level of services and the increase in revenues, it is
possible that different priorities and decisions would have emerged for both the school and municipal
budgets. This does not change our present conclusion to approve the supplementary appropriation as
explained above.
It is our understanding that the motion under this article will seek to transfer$57,000 from the Minuteman
line item to the public-school line item and the rest of the appropriation will come from the balance
remaining of the increase in state aid($356,109)and free cash($434,287).
We have also been informed that a request will be made to appropriate $425K from the Overlay Surplus.
This is a housekeeping measure to conform with the intent of the Annual Town Meeting last spring. This
action does not increase the size of the FY 2006 operating budget.
Article 6: School Projects Funds Funding Committee
and Equipment Requested Source Recommendation
none none
This article was inserted at the request of the School Committee in case they wanted to gain approval of
appropriations for work on school-building roofs, heating, ventilating, and air-conditioning (HVAC)
equipment, or other potential facilities work.
It is our understanding that the School administration has been informed by consultants hired to review
the school buildings that $30K of work on school-building roofs and about $67K in HVAC repairs
urgently need to be made during this school year. The work will be done using funds in the current school
operating budget.
It is also our understanding that it is highly recommended that more extensive roof replacements and
HVAC work be done next summer. Evaluation and planning work will be done using funds approved at
the 2005 Annual Town Meeting for capital expenditures, in particular about $140K for floor scrubbers
and a bobcat. Those planned purchases will be put off until they can be done under a future appropriation.
The Appropriation Committee agrees that the most urgent work should be done first, but we would like to
point out that this likely pushes other aspects of the School's facility maintenance-and-equipment-
replacement needs to future years.
Page 6 of 11
APPROPRIATION COMMIT lEE REPORT-NOVEMBER 2005
Appendix A: Projections for FY 2006-2008
Introduction
The Appropriation Committee Report to the 2005 Annual Town Meeting last spring provided:
• Estimates of revenues required to build reserves and maintain services through FY 2008
• Budget projections through FY 2008.
Since April,there have been increases in both expenses and revenues and the Special Town Meeting will be voting
on supplemental appropriations to cover additional increases in expenses. Accordingly,this Appendix and
accompanying Exhibits describe the recent changes to our fiscal picture and the effects of approving or disapproving
Special Town Meeting articles on our projected revenue requirements for fiscal years 2007 and 2008.
Background and Assumptions
For purposes of this Appendix,we have assumed:
• The requested appropriation of$528,177 for unpaid FY 2005 bills in Article 4 is approved.
• Exhibits Al and A3 assume that Article 5 is approved for$847,396;Exhibit A2 shows the effects of
approval or disapproval.
• Level service is defined in subsequent years as post-November 2005 Special Town Meeting service levels.
(Exhibits Al and A3 assume approval of Article 5 and no restoration in FY 2007 or FY 2008 of cuts taken
in the FY 2006 school budget prior to the Special Town Meeting; Exhibit A2 projects the effects of either
approval or disapproval of Article 5 and assumes that the service level resulting from either approval or
disapproval continues through FY 2008.)
• There are two primary components to "reserves": the "undesignated fund balance" which contains "free
cash", and monies in stabilization funds. In this appendix "reserves" is taken as the sum of these two
components.
The new projections in this Appendix have been updated to include:
• The recently-certified free cash balance of July 1, 2005
• Latest estimates of FY 2006 new growth
• Latest estimates of FY 2006 State aid
• Changes in the FY 2006 budget since April 2005 Town Meeting
Exhibits
Al. Changes in the FY 2006 Budget from April 2005 Town Meeting
A2. Projected Operating-Override Requirements to Maintain Level Services in FY 2007-2008 and Continue
to Build Reserves$3M from July 1,2004 to July 1, 2007
A3. Three-Year Forecast
Changes in the FY 2006 budget from April 2005 Town Meeting
Exhibit Al shows the changes in FY 2006 expenses and revenues since the April 2005 Appropriation Committee
Report.
Line 10: Increase in FY 2006 school budget if Article 5 is approved for$847,396. This is shown in the"expense"
line as we do not have a break down in how this splits between lines 8-10.
Line 11: Offset in education budget due to reducing the Minuteman assessment
Line 34: Sum of Article 4, $528,177,and snow and ice deficit, $646,688
Line 40: Increase in FY 2006 State Aid
Line 42:Free Cash to be appropriated if Articles 4 and 5 are approved
Line 48: Increase in FY 2006 new growth over what was estimated in April 2005
Lines 37 and 55: Total change due to the above incremental changes
Page 7 of 11
APPROPRIATION COMMIT I'EE REPORT-NOVEMBER 2005
Exhibit Al: Changes in the FY 2006 budget from April 2005 Town Meeting
FY 2006 FY 2006
line Recommended 11/05 projection changes
1 Expenditures
2 Town Wages 14,396,218 14,396,218
3 Town Benefits 4,334,380 4,334,380
4 Retirement,Workers Comp,Etc. 3,576,180 3,576,180
5 Town Expenses(excluding debt) 8,027,720 8,027,720
6 Total Town Gen. Fund (excluding debt) 30,334,498 30,334,498 0
7
8 Public Schools Wages 47,204,681 47,204,681
9 School Benefits/Medicare 10,387,000 10,387,000
10 School Expenses 11,975,887 12,823,283 847,396
11 Regional Vocational School 887,667 830,667 (57,000)
12 Total Education 70,455,235 71,2455,631 790,396
13
14 Existing Debt(Principal,Interest) 3,210,750 3,210,750
15 Authorized/Unissued and new Debt(Principal,Interest)
16 Cash Capital Policy 570,000 570,000
17 Other Capital 500,000 500,000
18 Total Capital and Debt 4,280,750 4,280,750
19 Temporary Borrowing 280,000 280,000
20 Existing/Projected Exempt Debt 4,943,313 4,943,313
21 Stablization Fund/Reserves 603,647 603,647
22 Total Capital & Debt (Including Exempt Debt) 10,107,710 10,107,710 0
23
24 Water Enterprise 7,246,090 7,246,090
25 Sewer Enterprise 8,152,693 8,152,693
26 Recreation Enterprise 1,678,257 1,678,257
27 Enterprise Articles 80,000 80,000
28 Total Enterprise 17,157,040 17,157,040 0
29
30 Town Meeting Articles 0 0
31 Supplemental Appropriation 83,000 83,000
32 Assessments and Offsets 1,998,750 1,998,750
33 Assessors'Overlay 500,000 500,000
34 Prior Year Deficits&Judgments 0 1,174,865 1,174,865
35 Total Supplimental, Assessments, Prior Year 2,581,750 3,756,615 1,174,865
36
37 Total Expenditure Requirements 130,636,233 132,601,494 1,965,261
38
39 Revenue
40 State Aid 8,059,161 8,561,958 502,797
41 Local Receipts 9,740,513 9,740,513
42 Available Funds 1,616,942 2,579,406 962,464
43 Enterprise Revenue 17,157,040 17,157,040
44 Non-Tax Levy Revenue 36,573,656 38,038,917 1,465,261
45
46 P revio us Year Tax Levy 85,867,575 85,867,575
47 Allowable 2 1/2%Increase 2,146,689 2,146,689
48 Allowable New Construction 1,105,000 1,605,000 500,000
49 Voter Approved Override 0 0
50 Real Estate Tax Levy Limit Subtotal 89,119,264 89,619,264 500,000
51 Actual Tax Levy(w/o ut Debt Exclusio ns)
52 Existing/Projected Debt Exclusion 4,943,313 4,943,313
53 Total Tax Levy 94,062,577 94,562,577 500,000
54
55 Total Revenues 130,636,233 132,601,494 1,965,261
Page 8 of 11
APPROPRIATION COMMIT fEE REPORT-NOVEMBER 2005
Projected operating-override requirements to maintain level services in FY 2007-2008 and build
reserves by $3M from July 1, 2004 to July 1, 2007
Exhibit A2 shows updated projections of the revenues required to sustain level services for FY 2007 and FY 2008
while increasing our reserves by$3 million over the 3-year period July 1,2004 to July 1,2007. The figures given in
the April 2005 Appropriations Report are shown for comparison. (As cautioned in our report to the April Town
Meeting,at this time the Appropriation Committee is neither making a policy recommendation regarding an
appropriate reserves target,nor an override schedule. We are simply seeking to demonstrate the estimated
additional revenue requirements of one possible target.)
This Exhibit demonstrates that in the one-override scenario,the override estimates assuming approval and
disapproval of Article 5 are currently$6.75M and$5.38M,respectively. Both of these values are lower than the
$7.63M projected in April 2005 due to our improved free cash position and increased state aid. Similarly, in the two-
override scenario,the override estimates assuming approval or disapproval of Article 5 are currently$4.52M and
$3.60M,respectively. Both of these values are lower than the$5.11M projected in April.
The Exhibit also shows in the 2005 column our improved reserves position relative to the April 2005 reserves
estimate,and the"saw tooth"nature of the reserves balance as earlier overrides are used to build reserves above the
target level,to be spent down in FY 2008. The fact that the amounts in the two-override scenarios are not simply
twice the amount in the corresponding one-override scenarios reflects the fact that an override in FY 2007 is carried
forward as part of the base revenue budget in subsequent years.
Exhibit A3 shows the details of the expenditures and revenues for FY 2005-2008 with the assumption of two
overrides, one for FY 2007 and one for FY 2008,level services, and the$3M over-three-years increase in reserves.
(The projections for FY 2007-2008 are based primarily upon numbers provided by Town staff last spring and this
past August,with some Appropriation Committee adjustments to reflect more recent information.) Similar spread
sheets were constructed to produce the estimates for the different scenarios in Exhibit A2: one override or two, and
with or without approval of Article 5. The Appropriation Committee's April 2005 report discusses these projections
in more detail.
Exhibit A2: Projected operating-override requirements to maintain level services in FY
2007-2008 and build reserves by $3M from July 1, 2004 to July 1, 2007
Override vs. Reserve Balance Scenarios
Values in$M
Appropriation Committee report in Each Reserve Balances on July 1
April 2005 Override 2004 2005 2006 2007
One Override for FY2007 7.63 4.04 5.30 8.08 7.04
Equal Overrides for FY2007,2008 5.11 4.04 5.30 5.68 7.04
Each Reserve Balances on July 1
Current Estimates Override 2004 2005 2006 2007
One Override for FY2007
(with article 5) 6.75 4.04 7.73 9.58 7.04
(without article 5) 5.38 4.04 7.73 10.01 7.04
Equal Overrides for FY2007,2008
(with article 5)* 4.52 4.04 7.73 7.46 7.04
(without article 5) 3.60 4.04 7.73 8.32 7.04
* This scenario is used in Exhibit A3
Page 9 of 11
APPROPRIATION COMMIT 1'EE REPORT-NOVEMBER 2005
Exhibit A3:Three-Year Forecast
A B C D
FY 2005 FY 2005 FY 2006 FY 2006
line Appropriated Actual Recommended 11/05 projection
1 Expenditures
2 Town Wages $13,147,817 $13,147,817 $14,396,218 $14,396,218
3 Town Benefits 3,969,387 $3,969,387 4,334,380 $4,334,380
4 Retirement,Workers Comp, Etc. 3,313,346 $3,313,346 3,576,180 $3,576,180
5 Town Expenses(excluding debt) 6,673,438 $6,673,438 8,027,720' $8,027,7209
6 Total Town Gen.Fund(excluding debt) 27,103,988 27,103,988 30,334,498 30,334,498
7
8 Public Schools Wages 45,566,543 $45,566,543 47,204,681 $47,204,681
9 School Benefits/Medicare 9,552,962 $9,552962 10,387,000 $10,387,000
10 School Expenses 11,237,963 $11,237,963 11,975,887 $12,823,283'
11 Regional Vocational School 928,474 $928,474 887,667" $830,667
12 Total Education 67,285,942 67,285,942 70,455,235 71,245,631
13
14 Existing Debt(Principal, Interest) 3,994,670 $3,994,670 3,210,750 $3,210,750
15 Authorized/Unissued and new Debt(Principal, Interest) 0 $0 0
16 Cash Capital Policy 0 $0 570,000 $570,000
17 Other Capital 500,000 $500,000 500,000 $500,000
18 Total Capital and Debt 4,494,670 4,494,670 4,280,750 4,280,750
19 Temporary Borrowing 242,512 $242512 280,000 $280,000
20 Existing/Projected Exempt Debt 5,325,085 $6,263,044 4,943,313 $4,943,313
21 Stablization Fund/Reserves 807,322 $807,322 603,647 $603,647
22 Total Capital&Debt(Including Exempt Debt) 10,869,589 11,807,548 10,107,710 10,107,710
23
24 Water Enterprise 6,554,170 $6,554,170 7,246,090 $7,246,090
25 Sewer Enterprise 8,132,321 $8,132321 8,152,693 $8,152,693
26 Recreation Enterprise 1,614,355 $1,614,355 1,678,257 $1,678,257
27 Enterprise Articles 1,280,000 $1,280,000, 80,000 $80,000
28 Total Enterprise 17,580,846 17,580,846 17,157,040 17,157,040
29
30 Town Meeting Articles 0 $0 0 $0
31 Supplemental Appropriation 0 $0 83,000 $83,000
32 Assessments and Offsets 1,950,000 $1,996,154 1,998,750 $1,998,750
33 Assessors'Overlay 950,000 $899,183 500,000 $500,000
34 Prior Year Deficits&Judgments 0 $181,946 0 $1,174,865
35 Total Supplimental,Assessments,Prior Year 2,900,000 3,077,283 2,581,750 3,756,615
36
37 Total Expenditure Requirements $125,740,365 $126,855,607 $130,636,233 $132,601,494
38
39 Revenue
40 State Aid $7,950,556 $8,059,161 $8,059,161 $8,561,958
41 Local Receipts 9,333,423 $10,246,954 9,740,513' $9,740,513
42 Available Funds 375,000 $1,578,160 1,616,942 $2,579,406
43 Enterprise Revenue 17,580,846 17,580,846 17,157,040 $17,157,040
44 Non-Tax Levy Revenue 35,239,825 37,465,121 36,573,656 38,038,917
45
46 Previous Year Tax Levy 78,000,158 $78,000,158 85,867,575 $85,867,575
47 'Allowable 2 1/2%Increase 1,950,957 $1,950,957' 2,146,689 $2,146,689
48 Allowable New Construction 1,000,000 $1,692,120 1,105,000 $1,605,0009
49 Voter Approved Override 4,224,340 $4,224,340 0 0
50 Real Estate Tax Levy Linit Subtotal 85,175,455 85,867,575 89,119,264 89,619,264
51 'Actual Tax Levy(w/out Debt Exclusions) - $85,831,339'' -
52 Existing/Projected Debt Exclusion 5,325,085 $5,325,085 4,943,313 $4,943,313
53 Total Tax Levy $90,500,540 $91,156,424 $94,062,577 $94,562,577
54
55 Total Revenues $125,740,365 $128,621,545 $130,636,233 $132,601,494
56 Budget Surplus/(Deficit) - 1,765,938 0 0
All out year projections are either School or Town staff estimates and have not been voted on by either the Selectmen or the School Committee.
Page 10 of 11
APPROPRIATION COMMIT 1'EE REPORT-NOVEMBER 2005
Exhibit A3 continued
E F G H
FY07 Projected FY 2007 Pro- FY08 Projected FY 2008 Pro- Projection Assumptions
Appropriation jected Actual Appropriation jected Actual
1
2 15,227,465' 15,227,465' 18,199,375' 18,199,375''2.5%COLA, 1.5%step,+$250K add.staff
3 4,854,505 4,854,505 5,437,046 5,437,046 12%increase in FY 2007-FY2009
4 3,683,465 3,683,465 3,793,969 3,793,969 3.0%inc.
5 8,308,690 $8,808,690' 8,599,495 $9,099,495'',Base 3.5%Inc.
6 32,074,126 32,574,126 36,029,885 36,529,885
7
8 49,602,494 49,602,494 52,109,407 52,109,407 2.5%COLA,2%step,+$250K add.staff
9 11,633,440 11,633,440 13,029,453 13,029,453 12%increase in FY 2007-FY2009
10 13,272,0981 13,272,098 13,736,621 13,736,621 Base 3.5%Inc.
11 914,297 914,297 941,726 941,726 3.0%increase in FY2007-FY2009
12 75,422,329 75,422,329 79,817,208 79,817,208
13
14 2,570,797 2,570,797 1,708,883 1,708,883 Based on outstanding debt schedule
15
16 2,987,664 2,987,664 4,272,731 4,272,731 Based on Cash Capital 5%Policy
17 500,000 500,000 500,000 500,000 Level Funded at$500,000
18 6,058,461 6,058,461 6,481,614 6,481,614
19 275,000 275,000 275,000 275,000
20 4,366,213 4,366,213 3,839,138 3,839,138 Based on outstanding debt schedule
21 290,594` 290,594 (521,356), (521,356)'Set to Balance after achieving UFB+Stab. Fund Growth
22 10,990,268 10,990,268 10,074,397 10,074,397
23 Based on outstanding debt schedule
24 7,575,787 7,575,787 7,920,485 7,920,485 Based on Water Enterprise Expense Trends
25 8,496,737 8,496,737 8,855,299 8,855,299 Based on Sewer Enterprise Expense Trends
26 1,749,583 1,749,583 1,823,940 1,823,940 Based on Rec. Enterprise Expense Trends
27 1,530,000 1,530,000 1,900,000 1,900,000 ',Based on Capital Improvement Plan
28 19,352,107 19,352,107 20,499,725 20,499,725
29
30 0 0 0 0
31 0 0 0 0
32 2,048,719 2,048,719 2,099,937 2,099,937 2.5%increase FY 2007-2009
33 500,000 500,000 950,000 950,000 Varies. FY 2008 is a revaluation year.
34 0 0 0 0
35 2,548,719 2,548,719 3,049,937 3,049,937
36
37 $140,387,549 $140,887,549 $149,471,150 $149,971,150
40 $8,561,958 $8,561,958 $8,561,958 8,561,958 Level funded at FY 2006 level
41 9,539,423 9,539,423 9,539,423 9,539,423 Level funded at 90%of FY 2005+recurring added in FY06.
42 1,191,942' 1,191,942 1,191,942 1,191,942 'Level funded at recurring FY2006level
43 19,352,107 19,352,107 20,499,725 20,499,725 Equals Enterprise Expenses
44 38,645,430 38,645,430 39,793,048 39,793,048
45
46 89,619,264 89,619,264 97,875,906 97,875,906 Prey.Yr.Total Tax Levy
47 2,240,482 2,240,482 2,446,898 2,446,898 2.5%Established by Proposition 2 1/2
48 1,000,000 1,500,000 1,000,000 1,500,000 Level Funded at$1,000,000;Recap at$500K higher
49 4,516,160 4,516,160 4,516,160 4,516,160 FY07/Y08 set to increase reserves by$1 M per yr.
50 97,375,906 97,875,906 105,838,964 106,338,964
51
52 4,366,213 4,366,213 3,839,138 3,839,138 Equals Exempt Debt Expenses
53 $101,742,119 $102,242,119 $109,678,102 $110,178,102
55 $140,387,549 $140,887,549 $149,471,150 $149,971,150
56 0 0 0 0
All out year projections are either School or Town staff estimates and have not been voted on by either the Selectmen or the School Committee.
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APPROPRIATION COMMIT fEE REPORT-NOVEMBER 2005
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