Thursday, December 13, 2012

Financial Forum II

Last night Steve Felton Chairman of the Budget Committee presented the second financial forum on the town budget.  The session was a continuation of the forum given in late September.  Mr. Felton explained the town's current financial situation, the town's budget proposal, and the general direction the budget committee is taking on preparing the budget to be presented to the townspeople.  I encourage people in the town to watch the presentation on Public Access television.

Mr. Felton's explained the complexities of the budget, but I wanted to present the highlights here.  The simple narrative is:  We have almost no savings, we do not have enough cash to meet expenses and must borrow, we have no emergency funds, we are deep in debt, our revenue stream is flat, we have millions in long term expenses we need to prepare for, the select board's budget plus the warrant articles is higher than last year's budget, and the budget committee wants to cut the town's operating budget and increase capital reserves so that the budget is the same as in 2012.

The facts are are follows:

Key Trends
  •  Since 2009 property taxes have increased by $1,066,766, an $807 increase on a $200,000 house.
  • 33% of the increase was from increases in the town budget
Current Financial Situation 
  • $125,000 in capital reserve for roads; $0 in reserve for other needs
  • Minimal cash on hand; will have to take out a TAN early in 2013 to pay bills
  • Long term debt between 70 and 80% of municipal expenditures
  • $10,791 in unassigned funds (emergency funds)
  • Assessed property value flat since 2009
  • Revenues other than property taxes continue to go down
Capital Improvement Needs
  • Town CIP Request - $2,308,000 over 10 years
  • Town Accumulated Depreciation - $16,107,781

 Select Board's Proposed Budget
  •  $2,820,867; $140,615 over 2012; $475,557 over 2009
  • Warrant Articles $308,000
  • Total if warrant articles are all approved - $3,128,867
Budget Committee's Proposal
  • Budget + Warrant Articles = 2012 Budget 
  • Cut the proposed operating budget and add more capital reserves 



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