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HomeMy WebLinkAbout2008-11-24 Board of Selectmen PacketTown of Reading i II ft 4{.tL~f ~k ~ 5~1 Lil 1~ Financial Forum November 19, 2008 FY10 Budget 1 - 1 Financial Forum November 19, 2008 FINCOM - FY10 Budget Calendar - October 1 -Capital Plan Review FY09 & FY10-19 J - October 9 - Review Nov. Town Mtg. Warrant J - October 15 - Financial Forum 14 - November 4 - Elections J - November 10 - Fall Town Meeting begins & ends J - November 19-Financial Forum H - January 30 -Final voted budgets due to Town Manager - Financial Forum 1H-Date TDA - February 13 - Town Manager budget due to FINCOM - April 27 - Annual Town Meeting begins Financial Forum November 19, 2008 FINCOM - November Financial Forum - Results of Question 14 - Status of 9C cuts in FY09 ? - FINCOM Budget guidance for FYI 0 ° Financial Forum November 19, 2008 Reserves Free Cash as of 10/31/08 $5,257,000 • Fall TM Article 4 (Capital) 5126,750 • Fail TM Article 6 (Stabilization) 5350,000 Updated Free Cash $4,790,250 Stabilization Fund as of 10/31/08 $1,453,988 • Fail TM Article 6 (Stabilization) +5350,000 Updated Stabilization Funds $1,803,988 FINCOM Reserves $ 127,375 TOTAL $6,721,613- -9.7% af.V meted FY10 NAR Financial Forum November 19, 2008 FINCOM - Financial Policies - Cash Reserves (5% of NAR minimum): • Free cusp; Uncommitted Stabilization Funds; FRdCOM Reserves • Note that Other Reserves include the Snie of Rcal Estate Fund; Committed Stabilization Funds; Overlay reserves - Uses of Cash Reserves over the 5% NAR minimum: • LeR in reserves; Additional funding for the Capital or odher long-term liabilities; One-time community priorities - Net debt & capital (5% NAR minimum): • Net Debt (ND) excludes MSBA payments & other debt payments made outside the tax levy E'er I )ri C Financial Forum November 19, 2008 Revenues FY09 I FYI 0 (proj.) I Change Prop. Taxes 1$48.5 mil 1$49.9 mil 1+$1.4 mil Local Revs. 1$ 6.5 mil 1$ 5.8 mil I 0.7 mil I Intergov't 1$14.2 Mill 1$14.2 mil ? I unch ? Trf & Avail 1$ 2.8 mil $ 2.8 mil I Unch Reserves 1$ 0.2 mil none 1-$ 0.2 mil I TOTAL I I 1+$ 0.5 mil. 2 Financial Forum November 19, 2008 ACCOMMODATED COSTS • Costs considered outside of operating budgets • Shared costs or uncontrollable costs including Benefits, Capital, Debt, Energy, Financial, Education (Out of district SPED), Education (Vocational) and Miscellaneous. • Community Priorities (new additions or changes) • Establish accommodated cost estimates at Fin'I Forum I • FINCOM free cash mechanism to handle variances 0..)t 0 Financial Forum November 19, 2008 ACCOMMODATED COSTS: preliminary FY 2010 $11.7 mil Benefits (Health Ins +10%) S 1.0 mil Capital (per 5% FNCOM policy) $ 2.5 mil Debt (net of MSBA and debt exclusion) $ 2.7 mil Energy $ 0.6 mil Financial S 3.7 mil Education- out ofdistrict SPED $ 0.4 mil Education- Vocational S 2 8 mil Miscellaneous $25.4 mil, Total Accom. Costs +$1.4 mil vs. FY09 6 DO" Financial Forum November 19, 2008 FY10 Budeet Summarv • Revenues +$0.5 million • Accommodated Costs +$1.4 million • Operating Budgets - $0.9 million FYI0 Budget Overview • Revenues FY09 State Aid in early Jan. '09? FYI0 State Aid in late Jan. '09 ? FINCOM Preliminarv FY10 Budoet Guidance 3 Town of Reading Budget Summary 11124108 2:39 PM No. IKevenues A General Fund Revenues Al Total Property Taxes A2 Total Other Local Revenues A3 Total Intergov't Revenues A4 Total Transfers & Available Ear-marked revenues Debt Exclusion MSBA IA98 Revenues before CashlSav. A5 Free Cash A6 Savings IA99 Net Available Revenues 5% for debt + capital Jaccommoaatea Uosts B Benefits C Capital D Debt E Energy F Financial G Education - Out of district H Education - Vocational J Miscellaneous K Community Priorities L1 Annual Accommodated Costs M1 Extra Capital M2 Stabilization Fund L2 Net Accommodated Costs 10perating Costs OC1 Municipal Government - OC' , School Department OCR Building Maintenance OC4 School, Town, Buildings Municipal Government School Department Building Maintenance TOTAL EXPENSES (L2+OC4) 1 Surplus/(Deficit) Amended One Year Actual (Fall '08 TM) Changes FY - 2008 FY - 2009 FY - 2009 $71,108,242 $71,984,604 46,930,931 48,459,885 7,444,464 6,520,000 13,877,302 14,191,163 2,855,545 2,813,556 (4,175,795) (3,243,073) (2,779,887) (2,780,988) (1,395,908) (462,085) $66,932,447 $ 68,741,531 1,644,597 201,750 500,000 350,000 $69,077,044 $ 69,293,281 3,464,664 wages 0.00% expenses 0.00% One Year Projected Changes Projected FY-2010 FY-2010 FY-2011 1.2% $ 72,709,159 3.3% 49,855,230 -12.4% 5,835,000 2.3% 14,222,822 -1.5% 2,796,107 -22.3% (3,246,446) 0.0% (2,784,361) -66.9% (462,085) 2.7% $ 69,462,713 -87.7% 0 -30.0% 0 0.3% $ 69,462,713 3,473,136 1.0% $ 74,844,830 2.9% 51,295,832 -10.5% 5,801,750 0.2% 14,910,859 -0.6% 2,836,390 0.1% (3,260,276) 0.1% (2,798,191) 0.0% (462,085) 1.0% $ 71,584,554 -100.0% 0 -100.0% 0.00% 0.00% 0.00% 0.00% One Year One Year Changes Projected Changes FY-2011 FY-2012 FY-2012 2.9% $ 77,142,626 3.1% 2.9% 52,753,860 2.8% -0.6% 5,876,838 1.3% 4.8% 15,633,297 4.8% 1.4% 2,878,632 1.5% 0.4% (3,255,863) -0.1% 0.5% (2,793,778) -0.2% 0.0% (462,085) 0.0% 3.1% $ 73,886,763 3.2% 0.0% 0 0.0% 0.2% $ 71,584,554 3.1%1 $ 73,886,763 3,579,228 3,694,338 10,039,183 10,835,903 7.9% 11,687,562 7.9% 12,480,595 6.8% 13,280,495 852,684 650,800 -237% 980,641 50.7% 1,035,201 5.6% 1,283,717 2,355,671 2,617,163 11.1% 2,492,494 -4.8% 2,544,027 2.1% 2,410,621 2,157,908 2,515,704 16.6% 2,663,189 5.9% 2,929,508 10.0% 3,222,459 410,428 914,175 122.7% 565,200 _ -38.2% 612,210 8.3% 660,071 3,956,515 3,390,305 -14.3% 3,721,035 9.8% 3,907,086 5.0% 4,102,441 318,657 424,113 33.1% 438,957 3.5% 460,905 5.0% 483,950 3,128,044 2,690,753 -14.0% 2,834,557 5.3% 2,870,915 1.3% 3,006,656 0 36,095 100% 35,000 -3.0% 0 0 $23,219,090 $ 24,075,011 3.7% $ 25,418,636 5.6% $ 26,840,447 5.6% $ 28,450,410 $ 952,400 365,000 -61.7% 0 -100.0% 0 -100.0% 0 $ 500,000 350,000 -30.0% 0 -100.0% 0 -100.0% 0 $24,671,490 $ 24,790,011 0.5% $ 25,418,636 2.5% $.26,840,447 5.6% $ 28,450,410 13,154,051 13,761,370 4.62% 13,761,370 0.00% 13,761,370 0.00% 13,761,370 27,225,827 28,608,458 5.08% 28,533,458 -0.26% 28,533,458 0.00%1 28,533,458 2,358,560 2,502,153 6.09% 2,502,153 0.00% 2,502,153 0.00% 2,502,153 1 $42,738,438 $ 44,871,981 4.99% $ 44,796,981 -0.17% $ 44,796,981 0.00% $ 44,796,981 30.78% 30.67% 30.72% 30.72% 30.72% 63.70% 63.76% 63.70% 63.70% 63.70% 5.52% 5.58% 5.59% 5.59% 5.59% $67,409,928 $ 69,661,992 3.3% $ 70,215,617 0.8% $ 71,637,428 2.0%1 $ 73,247,391 $ (752,904) $ (52,873)1 1 $ 639,372 3.2% MSBA's share will reduce Nov 08 TM Nov 08 TM adds $126,750 Nov 08 TM 6.4% 24.0% debt+capital minimum per -5.2% 5% FINCOM policy 10.0% 7.8% 5.0% 5.0% 4.7% MUNIS license 6.0%1 -100.0% -100.0% 6.0%1 0.00% 0.00% less $75,000 in FY10 0.00% 0.00% 2.2%) -4-- Town of Reading A Revenues - Details Amended One Year 1112410810:48 AM (Fall'07 TM) Projected Changes Projected No. FY - 2008 FY - 2009 FY - 2009 FY - 2010 Prooerty Taxes Tax levy (within levy limit) 44,127,125 45,804,364 3.8% 47,519,656 New Growth 549,232 556,276 1.3% 250,000 Tax levy (debt exclusion) 2,779,887 2,780,988 0.0% 2,784,361 Abatements and exemptions (525,313) (681,743) 29.8% (698,787) Al Total Property Taxes 46,930,931 48,459,885 3.3% 49,855,230 Other Local Revenues Motor Vehicle Excise 2,966,745 2,850,000 -3.9% 2,500,000 Penaltieslinterest on taxes 190,443 166,000 -12.8% 174,300 Payments in lieu of taxes 281,669 276,000 -2.0% 289,800 Charges for services 1,478,783 1,480,000 0.1% 1,554,000 Licenses & permits 137,957 125,000 -9.4% 131,250 Special Assessments 2,568 3,000 16.8% 3,150 Fines 164,022 150,000 -8.5% 157,500 Interest Earnings 1,716,001 1,070,000 -37.6% 625,000 Medicaid Reimbursement 506,276 400,000 -21.0% 400,000 Other A2 Total Other Local Revenues 7,444,464 6,520,000 -12.4% 5,835,000 Intergovernmental Revenue State Aid (Net of offsets) 12,481,394 13,729,078 10.0% 13,760,737 MSBA 1,395,908 462,085 -66.9% 462,085 Other state aid -Supplemental Aid A3 Total Intergov't Revenues 13,877,302 14,191,163 2.3% 14,222,822 One Year One Year One Year Changes Projected Changes Projected Changes FY-2010 FY-2011 FY-2011 FY-2012 FY-2012 3.7% 48,963,897 3.0% 50,444,244 3.0% -55.1% 250,000 0.0% 250,000 0.0% Orig $250k+Nov08 TM $160k+$140k telecomm +6k extra 0.1% 2,798,191 0.5% 2,793,778 -0.2% MSBA will reduce at some point 2.5% (716,256) 2.5% (734,163) 2.5% Nov 08 TM by 140k telecomm) 2.9% 51,295,832 2.9% 52,753,860 2.8% -12.3% 2,300,000 -8.0% 5.0% 183,015 5.0% 5.0% 304,290 5.0% 5.0% 1,631,700 5.0% 5.00% 137,813 5.0% 5.0% 3,308 5.0% 5.0% 165,375 5.0% 41.6% 656,250 5.0% 0.0% 420,000 5.0% -10.5% 5,801,750 -0.6% 0.2% 14,448,774 0.0% 462,085 0.2% 14,910,859 2,200,000 192,166 319,505 1,713,285 144,703 3,473 173,644 689,063 441,000 5,876,838 5.0% 15,171,212 0.0% 462,085 4.8% 15,633,297 -4.3% MV sales 70% in 09 & 10 of prior; 100% in FYI 1 & FY12 5.0% 5.0% 5.0% 2.47% rate 11123108 is dropping fast 5.0% Int (000s) Prin(000s) 5.0% $ 161 $ 6,500 reserves 5.0% $ 457 $ 18,500 non-reserve cashflow & capital prof. 5.0% $ 618 $ 25,000 higher cash balances is temp. 5.0% figure assumes historic collections 1.3% 5.0% FY10=FY08 +5%+5%; FY09 & FY10 maybe too high 0.0% Nov 08 TM 4.8% Ooeratina Transfers and Available Funds Cemetery sale of lots 10,000 37,665 276.7% 25,000 -33.6% 25,000 0.0% 25,000 0.0% Sale of real estate funds 375,000 350,000 -6.7% 325,000 -7.1% 300,000 -7.7% 275,000 -8.3% continue declining usage Reading Ice Arena Authority 120,000 120,000 0.0% 120,000 0.0% 120,000 0.0% 120,000 0.0% capital improvements - unsure if sustainable RMLD earnings distribution 2,073,332 2,154,224 3.9% 2,176,107 1.0% 2,241,390 3.0% 2,308,632 3.0% assumes +3% vs actual Overlay surplus 169,213 151,667 -10.4% 150,000 -1.1% 150,000 0.0% 150,000 0.0% Medicare D Reimbursement 108,000 0 -100.0% Developer Mitigation 0 A4 Total Transfers & Available I 2,855,545 2,813,556 -1.50/6 2,796,107 -0.6% 2,836,390 1.4% 2,878,632 1.5% Certified Free Cash 1,644,597 201,750 Nov 08 TM $126,750,,$75, 000 previously Stabilization Fund 500,000 350,000 Nov 08 TM A5 Free Cash & Savings 2,144,597 551,750 -74.3% 0 0 0 TOTAL REVENUES 73,252,839 72,536,354 -0.98% 72,709,159 0.24% 74,844,830 2.94°/a 77,142,626 3.07% Massachusetts Municipal Depository Trust Daily Yield Update The performance data stated represents past performance, which does not guarantee future results. Investment return will fluctuate therefore you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Please visit httos://advisor:fidelity.com/aUbublic/fitsco/mridt.shtml or call 1-800-392-6095 for most recent performance figures. Prior Day 1-Day 7-Day 30-Day Net. Assets Prior Day Trading Deadline Performance data as of: Mil Rate Yield Yield Yield ($MM) Avg. Mat. (Days) (EST) November 17, 2008 75.985 2.77 2.90 3.19 7923.4 49 5:00 PM November 18, 2008 74.065 2.70 2.85 3.17 8066.5 49 5:00 PM November 19, 2008 72.979 2.66 2.81 3.14 8051.4 50 5:00 PM November 20, 2008 69.678 2 2.75 3.11 8360.4 52 5:00 PM November 21, 2008 1 2.70 3.08 67.538 //147 8589.7 51 5:00 PM November 22, 2008 67.539 / 2.47 v 2.64 3.05 8589.7 51 5:00 PM November 23, 2008 67.539 ( 2.47 / 2.58 3.03 8589.7 51 5:00 PM Before investing in the Massachusetts Municipal epository Trust (MMDT) Cash Portfolio, consider the fund's investment objectives, risks, charges and expenses. For this and additional information call Fidelity at 1-800-392-6095 or visit Read it carefully be shtml for a free Cash Portfolio investment circular / dt bli /fit f / / fore you invest. httlis://advisor. fidelity.c mm . c sco pu om a c . An investment in the Massachusetts Municipal Depository Trust is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the issuer seeks to preserve the value of the investment at a fixed share price, it is possible to lose money by investing in the Trust. For more information contact: MMDT Client Services Team Massachusetts Municipal Depository Trust P.O. Box 55367 Boston, MA 02205 800 392-6095 httos://ad visor. fidelity. com/afc/public/fitsco/mmdt. shtml Fidelity Brokerage Services LLC, Member NYSE, SIPC, 100 Summer Street, Boston, MA 02110 © 2008 FMR LLC. All rights reserved 412195.3.15 6_ Town of Reading Accom Costs - Summary 1112410810:48 AM No. B Benefits C Capital D Debt(net - tax levy) E Energy F Financial G Education - Out of district H Education - Vocational J Miscellaneous K Community Priorities TOTAL Accommodated COSTS Accommodated Costs - Detail B Accommodated Costs - Benefits 131 Group Health I Life Ins. OPEB B2 Workers Compensation B3 Police I Fire Indemnification B4 Contributory Retirement B5 Non-Contrib. Retirement B6 Medicare I Social Security B7 Unemployment Benefits B99 Total Benefits Amended i One Year One Year One Year One Year (Fall'07 TM) Projected Changes Projected Changes Projected Changes Projected Changes FY - 2008 FY - 2009 FY - 2009 FY - 2010 FY - 2010 FY - 2011 FY - 2011 FY - 2012 FY - 2012 10,039,183 10,835,903 7.9% 11,687,562 7.9% 12,480,595 6.8% 13,280,495 6.4% 852,684 650,800 -23.7% 980,641 50.7% 1,035,201 5.6% 1,283,717 24.0% 2,355,671 2,617,163 11.1% 2,492,494 -4.8% 2,544,027 2.1% 2,410,621 -5.2% 2,157,908 2,515,704 16.6% 2,663,189 5.9% 2,929,508 10.0% 3,222,459 10.0% 410,428 914,175 122.7% 565,200 -38.2% 612,210 8.3% 660,071 7.8% 3,956,515 3,390,305 -14.3% 3,721,035 9.8% 3,907,086 5.0% 4,102,441 5.0% 318,657 424,113 33.1% 438,957 3.5% 460,905 5.0% 483,950 5.0% 3,128,044 2,690,753 -14.0% 2,834,557 5.3% 2,870,915 1.3% 3,006,656 4.7% $ 36,095 100% $ 25,000 -30.7% $ - -100.0% $ 0.0% $23,219,090 $ 24,075,011 3.7% $ 25,408,636 5.5% $ 26,840,447 5.6% $ 28,450,410 6.0% 6,528,737 7,255,244 11.1% 7,980,768 10.0% 8,619,230 8.0% 9,308,768 8.0% Nov 08 TM - 0 0.0% 0 0.0% 25,000 100.0% 0 100.0% 258,115 258,897 0.3% 241,050 -6.9% 253,103 5.0% 265,758 5.0% +5% vs actual base wl more claims 49,335 50,000 1.3% 52,500 5.0% 55,125 5.0% 57,881 5.0% 2,595,763 2,653,102 2.2% 2,716,532 2.4% 2,784,445 2.5% 2,854,056 2.5% unsure of future funding schedule 84,206 77,280 -8.2% 79,212 2.5% 81,192 2.5% 83,222 2.5% 485,799 491,380 1,1% 565,000 15.0% 607,375 7.5% 652,928 7.5% 525k pace for FY09 37,228 50,000 34.3% 52,500 5.0% 55,125 5.0% 57,881 5.0% $10,039,183 $10,835,903 7.9% $ 11,687,562 7.9% $ 12,480,595 6.8% $ 13,280,495 6.4% C Accommodated Costs - Capital C99 Total Capital $ 852,6841 $ 650,800 D Accommodated Costs -Debt (net. inside levy limit) D1 Debt Service - Principal 4,034,000 3,755,000 D2 Debt Service - Interest 2,513,457 2,120,831 D3 Excluded debt (2,779,887) (2,796,583) D4 MSBA reimbursements (1,395,908) (462,085) D5 ad'lustments (excluded premium) (15,991) D99 Total Included Debt $ 2,355,671 1 $ 2,617,163 C+L Net included debt+ capital = 5% of net available reve 3,464,664 -23.7% $ 980,641 50.7% $ 1,035,201 5.6% $ 1,283,717 24.0% -6.9% 3,720,000 -0.9% 3,865,000 3.9% 3,885,000 0.5% -15.6% 2,034,050 -4.1% 1,939,303 -4.7% 1,781,484 -8.1% 0.6% (2,799,471) 0.1% (2,798,191) 0.0% (2,793,778) -0.2% -66.9% (462,085) 0.0% (452,085) 0.0% (462,085) 0.0% 11.1% $ 2,492,494 -4.8% $ 2,544,027 2.1% $ 2,410,621 -5.2% 3,473,136 3,579,228 3,694,338 . Town of Reading Accom Costs - Detail 11124/0810:48 AM No. E Accommodated Costs - Enerov E1 Street Lighting E2 Heating of Buildings-Town E3 Heating of Buildings-Schools E4 Utilities-Town E5 Utilities-Schools E6 Fuel - vehicles (in DPW budget) E99 Total Energy Amended i One Year (Fall'07TM) Projected Changes Projected FY - 2008 FY - 2009 FY - 2009 FY - 2010 199,000 226,505 13.8% 249,156 150,870 144,430 -4.3% 148,041 700,954 962,317 37.3% 986,375 182,541 172,948 -5.3% 190,243 734,791 798,714 8.7% 878,585 189,752 210,790 11.1% 210,790 $ 2,157,908 $ 2,515,704 16.6% $ 2,663,189 F Accommodated Costs - Financial F1 Casualty Insurance 333,342 354,175 6.2% F2 Veteran's Assistance 77,086 60,000 -22.2% F3 FINCOM Reserve Fund 150,000 100.0% F4 Stabilization Fund 350,000 F99 Total Financial $ 410,428 $ 914,175 122.7% $ G Accommodated Costs -Education Out of district One Year One Year One Year Changes Projected Changes Projected Changes FY-2010 FY-2011 FY-2011 FY-2012 FY-2012 10.0% 274,071 10.0% 301,478 10.0% 2.5% 162,845 10.0% 179,129 10.0% 2.5% 1,085,012 10.0% 1,193,514 10.0% 10.0% 209,267 10.0% 230,194 10.0% 10.0% 966,444 10.0% 1,063,088 10.0% 0.0% 231,869 10.0% 255,056 10.0% $3.001gal FY10 5.9% $ 2,929,508 10.0% $ 3,222,459 10.0% 340,200 -19% 357,210 5.0% 375,071 75,000 25.0% 80,000 6.7% 85,000 150,000 0.0% 175,000 16.7% 200,000 565,200 -38.2% $ 612,210 8.3% $ 660,071 G1 Out of district SPED transportation 856,043 928,825 8.5% 984,555 G2 Out of district SPED tuition 4,364,572 4,311,480 -1.2% 4,311,480 G3 Out of district SPED rev. offsets (1,264,100) (1,500,000) 18.7% (1,575,000) G4 Out of district SPED carry forward (350,000) 100.0% 0 G99 Total Education - Out of distr. 1 $ 3,956,515 $ 3,390,305 -14.3% $ 3,721,035 H Accommodated Costs -Education Vocational School, H1 Vocational School Assessments 1 318,657 424,113 33.1% 438,957 H99 Total Education - Voke 1 $ 318,657 $ 424,113 33.1% $ 438,957 1 J Accommodated Costs - Miscellaneous J1 Rubbish Collection t Disposal 1,372,452 1,468,276 7.0% 1,544,626 J2 Snow and Ice Control 995,351 450,000 -54.8% 500,000 J3 State Assessments 582,481 581,778 -0.1% 599,231 Cemetery 177,760 190,699 7.3% 190,699 J4 Salaries and Wages 140,248 151,929 8.3% 151,929 J5 Expenses 37,512 38,770 3.4% 38,770 J99 Total Miscellaneous 1 $ 3,128,044 1 $ 2,690,753 -14.0% $ 2,834,557 5.0% +5% vs actual base w/o rewards 6.3% 14.3% Nov 08 7M 7.8% 6.0% 1,033,782 5.0% 1,085,471 5.0% 0.0% 4,527,054 5.0% 4,753,407 5.0% 5.0% (1,653,750) 5.0% (1,736,438) 5.0% -100.0% 9.8% $ 3,907,086 5.0%1 $ 4,102,441 5.0% 3.5% 460,905 5.0% 483,950 5.0% foundation budget only (est.) 3.5% $ 460,905 5.0% $ 483,950 5.0% 5.2% 1,563,007 1.2% 1,680,233 7.5% Contract expires FYI 1 11.1% 500,000 0.0% 500,000 0.0% continue to targeted $500k level 3.0% 617,208 3.0% 635,725 3.0% 0.0% 190,699 0.0% 190,699 0.0% 0.0% 151,929 0.0% 151,929 0.0% 0.0% 38,770 0.0% 38,770 0.0% 5.3% $ 2,870,915 1.3% $ 3,006,656 4.7% W To: Reading Finance Committee From: Peter Hechenbleilmer, Town Manager Re: FY09 Budget status and FY 10 budget process Date: November 24, 2008 FY09 Budget Status The Town Manager has identified items in the FY09 budget and placed `holds' on making any of these planned expenditures until we know what the FY09 reductions in State Aid will be, if any, and until we know what the FY 10 budgets will be. The Superintendent of Schools is currently working on a similar list of "holdbacks". Each planned expense being held back will result in a reduction in the quantity or quality of a service to the community. If there are reductions in State Aid for FY09, the Town and School will implement the reductions in budgets on the "hold" list in appropriate proportion to each other, and would expect to use cash reserves to make up any difference. The actual modifications to.the FY09 budget would be done formally at the Annual Town Meeting next spring. The list of municipal holdbacks includes: $215,000 in benefits (total is about 2% of line B99) consisting of $15,000 in actual savings on workers compensation premiums and $200,000 in estimated savings in health insurance. The latter figure is entirely due to the flat enrollment figures for the year to date in health insurance, when a 3% increase has been the recent trend and was budgeted for in FY09. In a difficult economy, the Town has historically seen an uptick in enrollment for dual income families, so this pattern will be watched closely for the next several months. $167,630 from the Municipal Government budget (about 1% of budget) as follows: $ 2,000 (line M1) Accounting salaries & wages: reduce OT for the MUNIS project $15,000 (line N15) Finance salaries & wages: part year savings on Technician $ 6,000 (line B99) Benefits associated with Technician wages above $ 5,000 (line N15) Finance salaries & wages: reduce OT for the MUNIS project $10,000 (line N16) Finance expenses: slow PC replacement schedule $10,000 (line N16) Finance expenses: reduce broad town-wide professional development $16,700 (line P 1) Library salaries & wages: do not fill Library Technician position $ 6,680 (line B99) Benefits associated with Library Technician wages above $50,000 (line Q7) Town Manager's expenses: actual savings on P&C premiums $ 1,000 (line Q7) Town Manager's expenses: eliminate Department Head retreat $ 5,700 (line R14) Community Services: do not fill Coordinator of Volunteers position i $ 2,280 (line B99) Benefits associated with Coordinator of Volunteers wages above $ (7,500) (line 1214) Community Services: Coordinator of Volunteers sick/vac. buyback $ 1,050 (line S19) Public Works salaries & wages: reduce June hours at compost center $ 5,000 (line S17) Public Works expenses: eliminate spring curbside leaf collection $ 4,000 (line T7) Public Safety salaries & wages: eliminate optional Police training $24,800 (line T7) Public Safety salaries & wages: do not fill new Firefighter position $ 9,920 (line B99) Benefits associated with new Firefighter wages above $15,500 in eneruv savings (over 2% of line V99), with the shift to a 4-day work week for Town Hall and the Senior Center. FY10 Budeet Process For FYI 0, we will prepare a detailed budget which will include a 0% increase when compared to the budgets for FY09 as approved through November 2008 Subsequent Town Meeting (not inclusive of the holdbacks listed above); Accommodated costs and debt/capital will be per guidelines - including retaining the 5% amount for debt plus capital. At the present time, this Zero budget still leaves us short by several hundred thousand dollars. We will make further reductions if possible, and may rely on some modest level of cash reserves to address any shortfall. For FY 10 we will identify what is the cost of continuing current levels of staffing and a 2% increase in total expenses when compared to the FY09 budget as approved by the Subsequent Town Meeting. For FY 10 we will identify what the priority of expenditures would be if we were able to increase from the Zero budget towards a current staffing budget. Depending upon the level of State Aid cuts for FY09, if any, there is no need for further Financial Forums until the first week of February 2009. At this point, we should know the State Aid picture for FY 10 as typically the Governor releases a budget at the annual MMA meeting (January 24, 2009). In addition, we will know what our heath insurance renewals are at this time. The Board of Selectmen and the School Committee will need to complete their budget process during January 2009, based on the outline and guidelines above, and submit budgets to the Town Manager as required by the Town Charter. In early February, we can finalize the budgets and have a Financial Forum discussion. 10