Overview Our two enterprise funds are incorrectly shown as part of the omnibus budget. We are going to deal with the enterprise funds, articles 11 and 15 out of order before the omnibus budget. The Broadband Enterprise Fund is revenue neutral. It is self funded. Year to date this fund has generated $13k that will be used to retire its debt. The Transfer Station fund includes an appropriation from taxation of $20k. In addition fees were raised this year. Town has more than $133,000 in uncommitted capital savings, the capital stabilization fund. The tax rate in the current year is $16.16 and if the meeting follows Selectboard and Finance Committee recommendations the rate will be $16.78 The Selectboard and Finance Committee jointly recommend passage of the budget and articles. The total omnibus budget appropriation is $1,626,917 The town will have about $88,000 of unused taxing authority (excess capacity). The wireless broadband and transfer station enterprise accounts are self-funding and budget neutral. Borrowing and Capital Stabilization articles require 2/3 vote Prior-year bills require a 90% vote. Revenues State aid will be reduced to Warwick by 4%. The House Ways and Means Committee local aid estimates, which are the lowest projections, were used in our model. Payment in lieu of taxes was level funded by the State. This source represents half of what we consider local aid. The state pays us more for its land than private landowners that are in Chapter 61. That is part of why we are better off than many other communities on local aid. Available Free Cash and Assessor's Overlay Surplus are applied to reduce the tax rate. Free cash is negligible. This is mostly because we didn't borrow the broadband money externally during FY09 (a mistake) so showed a $37k deficit which reduced free cash by that amount. We will properly borrow and that money will be available as free cash next year. Snow and Ice account returns almost $20k of surplus to become free cash next year. MEMA Dec. Ice Storm reimbursement was received in amount of $11k which will become free cash next year. We will get $63k from early retirement of WCS debt. This will be voted to reduce the levy in FY12 and we will lower the debt exclusion one-time in FY12 by that amount because that funding was generated by a debt-excluded project. Expenses The Pioneer school budget was level funded. Because we are sending more students our assessment went up slightly under a level funded budget. The Tech School assessment went down because fewer students are attending from Warwick. The Highway budget is level funded. Town employee's wages are level funded. We won't have any debt on WCS next year except for what we vote to in order to repair or replace the sprinkler system. If we vote the recommended budget and money articles: The Town will have capital savings of $58,000 We will have untapped capacity to tax of $76,000 It is quite likely the Town will not have a snow ice overdraft from the prior year to make up. Notes on the omnibus budget: Wage increases are 0%. Increases to Town accountant budget are due to some previously three-town cost sharing now split between two towns. Tax Collector / Treasurer budget moved $500 in each budget from expenses to assistant pay to make vacation time-off possible. Town Clerk budget increase is due to more elections next year. We are printing ballots in-house. Ambulance contribution amounts to $10 per capita in coming year. Snow removal appropriation is proposed at historic ten-year average in order to avoid ongoing annual deficits. Warrant articles: #4: This establishes revolving accounts for operation of inspections and many other town functions supported by fees. No new items this year. #5: Town must set the salary of elected officials and vote the budgets of town departments. #6: Provides money to improvement account for the community school. Building is ours. Capital items are ours. This was $5k per year which isn't any longer adequate. #7: Revaluation of property happens every three years. We appropriate annually to budget for the cost. #8: Account is under control of Assessors and these are funds they have determined are no longer needed. #9 & #10: Regional School proposed capital items. Three of four towns must approve for them to pass. #11: This authorizes total expenditure of $45k for operation of transfer station including $20k from taxation. #12: This is to purchase a second one-ton truck for highway department. We have four workers. It would be better to plow with a truck than the pay-loader, an expensive piece of construction equipment. The ton truck we have is getting old. We can get more years out of it if we buy this additional truck. We will use small trucks when appropriate and not run the big trucks when we don't need them. We will use trucks instead of heavy equipment. If this doesn't work, in a few years we will retire the older ton truck and not replace it. #13: We can vote our fund balance to reduce the tax levy. #14: Budget proposes $25k which takes a 2/3 vote to move money into our capital savings account. #15: Broadband is budget neutral. It generates its own revenue. We have 80 customers and show $13k net income year to date. In order to spend we must appropriate. If it were from taxation we would raise and appropriate. It is not from taxation but from user fees so we simply appropriate. #16: Building and energy committee recommends this expenditure on town hall for long-life roof, chimney repair, storm windows and a start on rebuilding window sash. Source of funds is Capital Stabilization Fund. #17: $13k is proposed as town's share to acquire Moore's Pond beach. Suggested funding source is from Capital Stabilization so this will require a 2/3 vote. See hand-out from Open Space Committee. [It is also [posted on the town website] #18: We are under an order to repair the failed system. This amount is probably adequate to repair. We may opt to make substantial replacement and if so will need to come to a special town meeting for additional funding. #19: This proposal will fund consulting to advise us on energy and other proposed betterments at the elementary school to make its air handling and heating and other systems better and to lower operating costs. #20: Voting this will cure a structural deficit we have been carrying on the Police detail account. Is a bit of financial housekeeping #21: By voting this we can protect a part of our rural character, and increase our score on the Commonwealth Capital application which helps us get state grants. #22: Another town wants to join our waste management district. To do so we need to vote to let them in. They will bring money to the party to get in and join us in paying an assessment each year for the services. #23: Our broadband system is great. Eventually it will be the next dial-up. Fiber-optic is the next big thing. This article telegraphs our willingness to become part of a consortium of towns to establish fiber-optic capacity. We will have our town's investment in our fixed wireless broadband system repaid by the time this is operational. See the Broadband Committee's hand-out (WiredWest) for details. [It is also posted on the town website]