HomeMy WebLinkAboutimpacts Article 1: Amendments to General Fund Appropriation for Fiscal Year 2004
Adjustment#1
Requested Action: Address changes in state revenue and charges that have occurred
since May 2003 Meeting.
Recommended Method: Increase estimated local receipts (building permit fees) by
$100,000 and request Town Meeting allocate $159,290 in Free Cash to make up
reduction of$268,290 in state aid. Also transfer funding for Essex Regional Technical
School to State charges to reflect change in assessment process.
Impact if Town Meeting does not approve: Based on current revenue projections, town
would not have a balanced budget if free cash transfer does not take place. May result in
DOR not certifying the town's tax rate in December resulting in delay in sending out 3rd
quarter tax bills and subsequent cash flow problems.
Adjustment#2
Requested Action: Distribute $75,000 in Salary Reserve funds to operational line
items to fund FY03 salary adjustments carried through to FY04.
Recommended Method: Request town meeting transfer $74,446 from the salary
reserve fund to General Government, Public Safety and Public Works Personnel line
items.
Impact if Town Meeting does not approve: Salary line items will be under funded
resulting insufficient funds to pay by-law employees through June 30, 2004.
Adjustment#3:
Requested Action: Transfer $250,000 in unemployment expenses and $34,823 in
Finance Committee reserve to pay for municipal by-law employeesFY04 salary
adjustments, Town Manager contract provision, and Special Education costs.
Recommended Method: Request town meeting to decrease unemployment expenses
by $250,000 (leaving a budgeted balance of$150,000) and Finance Committee Reserve
Fund by $34,823 (leaving a balance of$165,1777) and increasing municipal personnel
line items by a total of$84,823 and the School department line item by $200,000.
Impact if Town Meeting does not approve: Funding for FY04 Salary adjustments for 47
`by-law' employees or 6 % of the town's total employee base of 782 individuals will not
be allocated. The School Superintendent has informed me he will review his budget to
determine where he can put $200,000 in abeyance by combining non-instructional
positions, not filling non-instructional positions and/or freezing expense accounts.
Adjustment#4:
Requested Action: Transfer $1,502,475 from Free Cash to the Stabilization Fund.
Recommended Method: Town meeting action
Impact of Town Meeting does not approve: Funds remain as unallocated free cash and if
not allocated by June 30, 2004 will revert to the FY04 free cash calculation.