AGENDA #1

BUDGET WORKING PAPER

 

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Spreadsheet Showing Potential Budget Adjustments

DATE:             June 5, 2000

INTRODUCTION

Consistent with discussions at the last budget work session, Mayor Waldorf asked that I prepare a revised spreadsheet showing additional potential budget adjustments that would take into account key issues under discussion and reduce the proposed tax rate increase to about 1.5 cents.  She also suggested that I include revised funding for School Resource Officers and the Land Trust.

DISCUSSION

Potential adjustments shown in the attached spreadsheet would result in a total tax rate increase of 1.5 cents (1.1 cents in the General Fund and .4 cents in the Transportation Fund),

The spreadsheet reflects:

·        Pay plan cost reductions previously agreed upon by the Council.

·        Departmental cost reductions previously agreed upon by the Council.

·        Funding of four School Resource Officers, with 50% of costs paid by the Town and 50% paid by the Schools.

·        One-time use of capital reserve funds for capital improvement projects.

·        Reduction of proposed development fees charged to non-profit organizations.

·        Additional funding for the Land Trust.

·        Additional costs for landfill tipping fees, based on the County Manager’s recently proposed budget.

·        Reduction of Pubic Works Department costs.

We are unable to propose recently discussed service increases in the Transportation Fund without an additional tax rate increase.

An option for the Council’s consideration would be to await action by the General Assembly on the proposed state budget.  If the Governor’s proposal for additional transit funding survives, and if the additional funds were distributed in the manner which we believe would be normal, then we should receive sufficient additional grant funding to pay for substantial bus service improvements.  Such service improvements could be implemented mid-year by amendment of the budget and agreement of the transit partners.

CONCLUSION

We will be pleased to evaluate any budget options desired by the Council and to prepare any other working papers that Council Members may find helpful.

2000-2001 Budget Revenues and Expenditures Summary

 

 

General Fund                                                                                     5-30-00

 

Explanations

Proposed Expenditures

Proposed Revenues

 

Difference

Tax Rate

Equivalent

 

        

Summary as of 5-03-00

33,518,000

32,792,000

726,000

2.4 cents
         

Adjustments based on discussion at 5-17-00 Work Session

       

    Pay Plan reductions (delay ofone pay-period & .25% reduction in salary ranges)

(66,000)

-

    

    Departmental 2% reductions

(84,000)

-

    
         

            Subtotal

33,368,000

32,792,000

576,000

1.9 cents
         

Proposed Additional Adjustments

       

     Add funding for SRO’s, with

        50% revenue from schools

164,000

110,000

    

       Reduce Capital Reserve and

           CIP transfers

(300,000)

      

       Reduce proposed planning

           fees for non-profits     

 

(20,000)

    

       Add funding for Land Trust

10,000

      

       Add funding for $1.00

           increase in Landfill tip fee

25,000

      

       Departmental reductions

           (Public Works)

(35,000)

      

               Total General Fund

33,232,000

32,882,000

350,000

1.1 cents

Transportation Fund

As recommended 4-24-00

6,961,080

6,841,080

120,000

 .4 cents
         

Total General and Transportation Funds

      

1.5 cents