Town of Norwell Board of Selectmen - PowerPoint PPT Presentation

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Town of Norwell Board of Selectmen

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  1. Town of NorwellBoard of Selectmen Fiscal 2007 BUDGET PRESENTATION Monday, April 24, 2006

  2. HOW DID WE GET HERE? Increase in Fixed Costs -Health Insurance Increase $573,320 -Pension Cost Increase $113,319 $686,639

  3. STRUCTURAL DEFICIT = $0 Additional for Town or Schools • Levy Limit (2.5%) without Override $587,580 • New Growth $400,000 • Health Insurance Increase ($573,320) • Pension Increase ($113,319) • Debt Service ($42,664) • Available $258,277

  4. Fixed Costs vs. State Aid

  5. Net State Aid

  6. WHY NOT USE THE STABILIZATION OR OTHER FUNDS NOW TO BALANCE THE BUDGET? • Does not make fiscal sense to continue using one time revenue to fund recurring operational costs – Only makes the problem worse • An override without a vote • Endanger our credit rating – Would damage our ability to borrow at a favorable rate in the future.

  7. How does it Work • Advisory Board has presented a balanced budget for FY2007. Involves reductions in numerous departments to balance budget • Warrant has 3 additional options. • Each one restores a level of services to a particular line item. • Larger options contain all items in the lesser options ($840,953 override is contained in both the $1.5 m and $1.9 m options).

  8. Impacts to General Government Side

  9. Impacts to General Government Side Will have a significant impact to the level of services.

  10. Option 1 • Maintains current staff (no hire/no fire) • Does not improve or restore service levels on general government side • Would result in larger class sizes • Restores cuts outlined in 2007 Balanced budget column

  11. Option 2 • Contains all of the provisions of Option 1 • Adds 7 additional classroom teachers for $357,000 to help meet classroom educational guidelines. • $165,000 for text book adoption in Schools • Restores some clerical assistance at Town Hall cut in FY2006 • Restores position in Tree & Grounds Department cut in FY2006 for field & grounds maintenance.

  12. Option 3 • Contains all of the provisions of Options 1 & 2 • Restores clerical positions cut in FY06 • Restores Library hours cut in FY06 • Adds weekend Library hours in the summer • “Partial Full Restoration” in School Department

  13. Ballot Questions • 3 Options on the Ballot • Option 1 - $840,953 • Option 2 - $1,534,550 • Option 3 - $1,950,409 • The question with the highest dollar amount that passes is the question that goes into effect. • Funds those lines specified in the Warrant for that option. Does not require a further Town Meeting vote.

  14. What should you do? • Review the Warrant • Check Advisory Board Balanced Budget column and various override options • Know what your choices are • Attend Town Meeting May 8, 2006 • Vote – This is your chance to decide what services you want and what taxes you want to pay. Vote for one option, all options or against all options but exercise your right and VOTE on May 20, 2006

  15. Town of NorwellAdvisory Board The FY07 Budget and Town Meeting Presentation

  16. The Role of the Advisory Board • To Receive Budget Requests from All Departments • To Organize a balanced Budget and recommend such to Town Meeting • To investigate and consider all articles in the Warrant to be brought before the Town and to report and advise... • Has the vested authority to examine the books and records of any Town Board or official…

  17. FY07 New Revenue Summary • 2 ½ Percent Increase $ 587,580 • New Growth $ 400,000 • Net State Aid* $ 73,943 • Total $1,061,523 *Note: Net State Aid is Estimated

  18. Net State Aid (Aid less Assessments) • FY06 State Aid $ 2,359,697 • FY07 Governor’s Proposed $ 2,433,640 Net Increase $ 73,943 • FY07 House Proposed $ 2,275,061 Net Decrease $ 84,636 Note: FY07 Budget developed with Governor’s numbers - ($158,579) difference

  19. FY07 Cost Increase Summary • Pension Costs $ 113,319 • Health Insurance $ 573,320 • Debt Service (under Levy) $ 42,664 • Schools $ 786,201 • Departmental Requests $ 613,610 • Total $1,902,476 Note: Energy costs excluded

  20. FY07 Available Funds Sources: • Free Cash $ 316,816 • Overlay Surplus $ 1,000,000 • Stabilization $ 1,400,000 Uses: • Special Town Meeting Articles $ 320,000 • Capital and Other Articles $ 836,889 • Reduce Tax Rate (Article 46) $ 400,000

  21. Advisory Board Actions • Considered all departmental budgets and all Articles for Town Meeting • Voted to Recommend budgets that included an override of $ 840,953 and $1,534,550 • Voted not to Recommend budgets that included a $1,950,407 override, or no override at all • Voted to Recommend cuts for a balanced, no override budget

  22. FY07 Reductions if No Override • School Department $ 497,651 • Beautification Committee $ 500 • Commission on Disabilities $ 1,500 • Advisory Board $ 1,485 • PBMC $ 700 • Treasurer Collector $ 3,500 • Police Department $ 66,000

  23. FY07 Reductions if No Override • Call Fire $ 8,881 • Council On Aging $ 12,500 • Board of Health $ 10,000 • Cemetery $ 1,000 • Historical Commission $ 1,750 • Library $ 126,182 • Recreation $ 10,000 • Group Insurance $ 100,000

  24. Where does the money go? Based on FY06 Budget

  25. Property Tax Impact

  26. Impact of School Building Loan: Per Thousand

  27. IMPORTANT DATES • Town Meeting May 8 (9), 2006 • Special Town Election May 20, 2006 • Town Meeting May 22, 2006

  28. Town of NorwellBoard of Library Trustees Impact of No Override

  29. A Reduction of $126,000 Means: • Loss of ¼ of annual budget • Reduction of 1/3 of library staff • Loss of 1/3 of book budget • Library is closed one additional day • Fewer programs offered

  30. A Reduction of $126,000 Means: • Longer wait time for requested materials • Reduction in state library aid • Certification jeopardized • Eligibility for grants jeopardized

  31. Override Option 1: • Retains 46 hours of operating schedule • Allows library to remain open 6 days per week during school year • Retains staff and services • Allows library to remain eligible for state aid, certification and grants

  32. Override Option 3: • Restores 5 hours to operating schedule • Returns operating schedule to 2005 level • May add Saturday hours to summer schedule • Continues all services in Option 1