Annual town meeting is May 6, at 7 pm.  I hope you will be able to
attend.  By the time you read this report in the newsletter, copies of
the warrant articles and of the budget will be posted as legally
required and available on-line on the town website, at the Town Clerk
office, and at the library. 

The recommended budget for next year will increase the tax rate from
$17.47 to $18.31 inFY14. Unlike the previous year where tax rate
increase was due to falling assessed property values, this rate change
is due to increased spending and totals $0.84.  A good rule of thumb is
to know that every $77k of spending results in a $1 tax rate change
because total value of taxable property is $77 million.  The recommended
budget, if passed, will leave the Town with about $170k in excess
capacity to tax which is an indicator of our financial health. The
closer we are to zero on that measure the closer we come to requiring an
over-ride to fund our budget.

The Pioneer Regional School Budget has the largest percentage increase
of any department with Selectboard and Finance Committee recommending a
4% increase. At this date the exact amount of the District's request has
not been set, though the blue sky budget asks for $102k more from
Warwick to avoid staff lay-offs. Last year the town appropriated $666k
for its share of the regional school operating budget.  The District
recognizes that $768k is a huge increase and is working to pare it down.
 The omnibus budget will reflect the recommended budget and there is an
article for an additional "sum of money" to give voters the chance to
increase the assessment to a level closer to the District's expressed
need as a separate action. The Tech School assessment is up $10k due to
more Warwick kids enrolling than before.  

Capital spending on schools is not part of the state minimum
contribution calculation of a Town's education spending. In addition to
the operating spending Warwick spent $28k this year on WCS capital plus
paid down $23k on the sprinkler repair note. We also spent $56k on our
share of PVRS debt and $4k on other District capital costs.  This totals
an additional $111k in education spending for the current fiscal year.
Other departmental budgets have minimal cost increases. The Highway
budget is up 2.5% across the board. Departments have wage increases of
2.5% after going several years in the recent past with no increase. We
are meeting increased fuel costs with continued lower consumption
everywhere but the community school. However 91% of the cost of heating
our school is paid for by the other district towns.  The transfer
station requires a $3k tax supported subsidy on a $42k budget this year
and is nearing break even. Broadband has never received taxpayer subsidy
though it did receive the Town's guarantee of the start-up borrowing
cost which is now repaid.

There are four by-law articles for Town Meeting consideration. One would
criminalize the open container by-law and make fines inure to the Town.
Another brings our police appointments in line with our appointment
practices and state law. There is an article to add alternate members to
the Planning Board. Another article proposes giving some teeth to
enforcement of our springtime dirt road closures with a fine that goes
to the town and ceding discretion to the highway superintendent to close
roads within set parameters. Weather and conditions can change a lot in
the interval between Selectboard meetings and unnecessary closings are
an impediment to deliveries, timber harvests and other essential traffic
so we want to be able to enforce closings and to make them least
invasive as possible.

There is an article to appropriate almost $26k to fund unrealized
investment losses the town incurred because we had money in failed
Freddy and Fanny securities. If voters approve this measure, the
Stabilization Fund, and Library, Cemetery, and Scholarship Trusts Fund
principle amounts will be restored.  

An article from the Building and Energy Committee proposes to fund
insulation of the concrete equipment shed at the highway department and
models full recovery of costs from savings in fewer than six years. 
Town Meeting will be asked to appropriate $25k to Capital Stabilization
which is our savings account.  

Finally, this budget contains the last year of payment on a five year
note for the newer of our two heavy highway trucks. We plan to pay for
most of the cost of our next heavy truck, slated for FY15, with Chapter
90 highway grant funds.