How is Weston doing?. During a difficult economy: Rate of salary increase was reduced Reductions made in health insurance costs Added to reserves Continued to fund facilities and public works infrastructure No cuts in service. What do we need to watch?. Going forward:
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During a difficult economy:
A decrease in net operating revenues per household (constant dollars) is considered a warning indicator.
Reductions in State Aid as a percentage of operating revenues is considered a warning indicator, particularly if the Town does not have adequate reserves to offset reductions.
Decreasing economic growth revenues, as a percentage of net operating revenues, is considered a warning indicator.
Declining reserves as a percentage of operating revenues is considered a warning indicator. GFOA recommends that undesignated fund balance be 5-15 percent of operating revenues.
Increasing net operating expenditures per household, in constant dollars, may be considered a warning indicator.
Increasing personnel costs as a percentage of total spending is considered a warning indicator.
An unfunded pension liability or increase in the unfunded liability is considered a warning indicator.
*FY2012 figures will be available in January 2013
An unfunded liability for post employment benefits or increase in the unfunded liability is considered a warning indicator.
Annual Required Contribution (ARC)
Debt service exceeding 15 percent of operating revenues is considered a warning indicator by the credit rating organizations.
Overall debt exceeding 10 percent of assessed valuation
Overall debt exceeding 15 percent of per capita income
Rapid changes in population which may affect service levels may be considered a warning indicator.
Assuming a level service budget, we are projecting a budget gap of approximately $379,000
Assuming no significant improvement in the economy, the budget gap is projected to be approximately $493,000
Assuming a slight improvement in the economy, the budget gap is projected to be approximately $471,000
Assuming FY2014 shortfall is closed through expenditure cuts or increased revenue, then projected operating budget increase plus the increase in exempt debt service = overall 5.7% increase in tax bill.