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HomeMy WebLinkAbout2005-04-06-TM-Report of the Town Manager -rpt Town of Lexington – 2005 Annual Town Meeting Report of the Town Manager April 6, 2005 The FY2006 budget before you today is the collaborative product of staff, elected boards, and citizen volunteers who worked together toward common goals. This budget provides resources to continue or enhance basic services and it does so without an override or the use of free cash. We got primarily good news regarding projected revenues, and reductions in school and municipal budget requests required to close the gap were modest. As you work your way through the recommended budget I hope you will be pleased with the work we have done. The recommended budget includes expenditures of $130,636,232, balanced by non-tax levy revenues of $36,573,656, tax levy of $89,119,263 and an exempt debt service of $4,943,313. The overall budget will increase by $3,780,624 or 2.98% over the FY 2005 Recap. In developing the budget we attempted to meet the following goals: 1. To develop a budget without the need for an operating override, 2. To continue to build cash reserves, 3. To restore staffing levels in general government, 4. To sustain core services in the public schools, 5. To continue to invest in the town’s building and enterprise assets. 6. And to respond to Moody’s Investor’s Service “negative outlook” and build back financial flexibility. In crafting the FY 2006 budget we were able to take advantage of several options that became available: 1. We were able to issue short-term notes (or BANS) saving approximately $1 million in FY 06. 2. We used a one-time payment from NESWC of $575,000 to place in the stabilization fund and balance the budget. 3. We have planned to ask the Board of Assessors to release $425,000 from the overlay account. This sum of money has accumulated from previous year’s overlay appropriations and can now be released for other purposes. LCV Art. 2 Speech to Town Meeting 1 of 4 5/1/2009 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 Town of Lexington – 2005 Annual Town Meeting needs; this amount needs to be funded regularly in future annual operating budgets. ?? The final $83,000 of this year’s original cash capital amount will be used to fund a supplemental appropriation for the current year projects in article 35. Budget development discussions for FY06 municipal operations focused on maintaining the same level of services as in FY05. We identified some functional areas with inadequate staffing where prior year reductions cut too deeply, and the recommended FY06 budget funds a number of positions that will increase and restore our effectiveness. ?? An additional Public Safety dispatcher position will bring staffing coverage to two people on all shifts. ?? The Fire Department had no administrative support; now they will have a department clerk to answer the phone and manage the office. ?? A new position will be created as part of restructuring the Water Billing function to ensure timely and accurate billing. ?? Restoration of the Property Inspector position in the Assessor’s Office will allow timely completion of actual tax bills and improve our ability to capture new growth in the tax levy, and a Commercial Appraiser will be hired to perform detailed appraisals on commercial properties in Lexington. ?? New positions will improve public service in the Town Clerk’s Office, the Cemetery Division, and the Library. The FY06 budget also includes changes to increase efficiency and improve collaboration. At the Senior Center, we have collapsed three Social Worker positions into two. The addition of a public health nurse in the Social Services Department will allow us to bring a contracted service in-house for less money, and to partner with the Health Division on community programs. Finally, we have included full costing for the following programs as part of our commitment to greater transparency and accountability in the budget: Lexpress, the composting operation, the Adult Day Care, Liberty Ride, and the Community Access studio. By showing the full costs for these programs we believe that Town Meeting can see a more complete picture and make the most informed decisions possible. LCV Art. 2 Speech to Town Meeting 3 of 4 5/1/2009 Town of Lexington – 2005 Annual Town Meeting I trust that the collective results of our hard work on the FY2006 budget will position Lexington well for the future. This budget is not perfect, and the community will continue face several pressing financial questions in the year’s to come. But we were able to avoid major cuts and in fact enhanced rather than compromised our financial situation. I want to close by thanking the staff (particularly John Ryan, who kept coming back), the boards, the finance committees, and you in Town Meeting for helping to make this budget a success. Good luck in your deliberations. Linda Crew Vine Acting Town Manager April 6, 2005 LCV Art. 2 Speech to Town Meeting 4 of 4 5/1/2009