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Town of Newbury
Finance Committee Meeting
Tuesday March 15, 2011 7:00 pm, Byfield Fire Hall
Meeting Agenda
Committee: Gene Case, Bob Connors, Larry Guay, Dick Passeri, Frank Remley (Chair), Anna
Tenaglia
1. March 1 Meeting Summary: Approved unanimously without revision.
2. February YTD Revenue and Expense Summaries: Revenues are trending well
thus far. No major concerns at this juncture. Same for Expenditures.
3. Review results of Financial Task Force efforts to date: Most of the meeting was
spent discussing updates and changes to the budget forecast for FY 12 and beyond.
All agreed that due to increased expenditure estimates, the previous consensus for a
minimum $725,000 override for FY 12 would not be adequate without lower
education assessment, new revenues, or dramatically reduced expenditures. Further
discussion focused on the likely minimum range to be requested.
Three scenarios were reviewed as follows (See attached):
Scenario 1: No increase in revenues through override or other means would result in
a $797,054 deficit in FY 12 in order to maintain current services. While $336,000 in
cuts has already been projected, an additional $461,054 would be needed to balance
the FY 12 budget. There is no support for using the stabilization fund to close this
gap, thus additional severe cuts would be needed.
Scenario 2: An $800,000 increase was reviewed. This level of override would
enable continuation of existing services, coverage of a $229,000 Snow and Ice deficit
for FY 11, payment of a $130,000 projected Free Cash deficit, and funding of a short
term improvement to the Town Barn. It would produce small surpluses for up to
three years, but not likely beyond. The town would be very dependent on economic
recovery to begin recovering financially.
Scenario 3: A $900,000 increase was reviewed. This level of override would enable
preservation of all the benefits in scenario 3 above, and also provide more margins
for future contingencies and modest financial recovery to reserves. It would also
possibly enable restitution of a COLA which town employees have not had for two
years. Coverage of projected operational costs, and continued surpluses beyond FY
14 is tenuous without robust economic recovery by then.
Additional scenarios were discussed, but the consensus of those present was that
recommending a range of $800,000 to $900,000 for a potential tax override request
was financially sound, given current information regarding future costs and revenues.
4. Review current FY 12 “default” budget options and contingencies w/r to
growing deficit: After brief discussion, it was determined that it was premature to
discuss potential additional cuts in case an override request is not successful.
However, there was general agreement that the magnitude of cuts were likely to
grow, and affect other town operations beyond those already targeted.
5. Town Barn repair status: In the absence of the Town Administrator, a quick
update by Frank summarized current efforts by Joe Story to see if repairs couldn’t be
accomplished by students from Whittier Regional Vocation and Technical High
School. All agreed that the current situation was unacceptable and that urgent action
was needed, including appeal to the State AG to waive normal procurement
regulations to enable rapid repairs.
6. Next Meeting: Tuesday, April 19, 7:00 pm, Byfield Fire Hall
PROJECTED SURPLUS/DEFICIT--$0.0 FY 12 Override
REVENUES
Fiscal Year
2010 Actual FY 2011 Recap
FY 2012
Initial 2013 Estimates 2014 Estimates 2015 Estimates
Projected Override $ - $ - $ - $ - $ -
Debt Exclusion $ 1,435,557 $ 1,195,509 $ 1,117,901 $ 1,026,351 $ 884,536 $ 9 23,575
Maximum Allowable Levy $ 1 3,027,859 $ 13,132,695 $ 13,403,516 $ 1 3,672,857 $ 13,907,204 $ 14,336,810
State Aid $ 1,380,861 $ 1,355,876 $ 1,318,214 $ 1,333,214 $ 1,358,214 $ 700,000
Total Local Receipts $ 1,952,483 $ 1,614,775 $ 1,504,000 $ 1,579,900 $ 1,679,000 $ 1 ,641,500
Free Cash $ 130,000 $ 100,000 $ - $ - $ - $ -
Wetlands Protection Fund $ 45,000 $ 45,000 $ - $ - $ - $ -
Stabilization Fund $ 75,000 $ - $ - $ - $ - $ -
Overlay Surplus $ - $ - $ - $ - $ -
Other (PI W&S assess) $ 532,000 $ 771,045 $ 7 61,568 $ 750,000 $ 750,000 $ 750,000
Total Internal Funds $ 782,000 $ 916,045 $ 7 61,568 $ 750,000 $ 750,000 $ 750,000
FISCAL YEAR 10 11 12 13 14 15
TOTAL REVENUES $ 17,143,203 $ 17,019,391 $ 16,987,298 $ 17,335,971 $ 17,694,418 $ 17,428,310
LEVEL SERVICES BUDGET $ 17,139,349 $ 1 6,994,881 $ 17,784,352 $ 18,011,663 $ 18,485,421 $ 18,520,469
RECOVERY BUDGET $ 17,139,349 $ 16,994,881 $ 18,512,552 $ 18,739,863 $ 19,213,621 $ 19,248,669
LEVEL SVCS GAP $ 3,854 $ 24,510 $ (797,054) $ (675,692) $ ( 791,002) $ (1,092,159)
RECOVERY GAP $ 3,854 $ 24,510 $ (1,525,254) $ (1,403,892) $ (1,519,202) $ (1,820,359)
FY 12 CHANGE AMT Change % Difference
FY12 vs. FY11 FY12 vs. FY11
Override 0.00%
2.5% levy Incr $ 270,822 2.06%
Max Levy Incr 270,822 2.06%
State Aid (37,662) -2.78%
Local Receipts (110,775) -6.86%
Stabilizatin Use -
Internal Funds (154,477) -16.86%
Revenues (32,092) -0.19%
Lev. Svcs Budget $ 789,471 4.65%
Recovery Budget 1,517,671 8.93%
Lev. Svcs Gap (821,563)
Recovery Gap (1,549,763)
15,500
16,000
16,500
17,000
17,500
18,000
18,500
19,000
19,500
FY10 FY11 FY12 FY13 FY14 FY15
Thousands
RECOVERY BUDGET
LEVEL SVCS BUDGET
REVENUES (DEFAULT BUDGET)
SCENARIO 1: No increase in revenues
PROJECTED SURPLUS/DEFICIT--$800,000 FY 12 Override
REVENUES
Fiscal Year
2010 Actual FY 2011 Recap
FY 2012
Initial 2013 Estimates 2014 Estimates 2015 Estimates
Projected Override $ - $ - $ 800,000 $ - $ - $ -
Debt Exclusion $ 1,435,557 $ 1,195,509 $ 1 ,117,901 $ 1,026,351 $ 884,536 $ 9 23,575
Maximum Allowable Levy $ 1 3,027,859 $ 13,132,695 $ 1 4,203,516 $ 1 4,472,857 $ 14,727,204 $ 15,177,310
State Aid $ 1,380,861 $ 1,355,876 $ 1,318,214 $ 1,333,214 $ 1,358,214 $ 700,000
Total Local Receipts $ 1 ,952,483 $ 1 ,614,775 $ 1 ,504,000 $ 1,579,900 $ 1,679,000 $ 1 ,641,500
Free Cash $ 130,000 $ 100,000 $ - $ - $ - $ -
Wetlands Protection Fund $ 45,000 $ 45,000 $ - $ - $ - $ -
Stabilization Fund $ 75,000 $ - $ - $ - $ - $ -
Overlay Surplus $ - $ - $ - $ - $ -
Other (PI W&S assess) $ 532,000 $ 771,045 $ 761,568 $ 750,000 $ 7 50,000 $ 750,000
Total Internal Funds $ 782,000 $ 916,045 $ 761,568 $ 750,000 $ 7 50,000 $ 750,000
FISCAL YEAR 10 11 12 13 14 15
TOTAL REVENUES $ 17,143,203 $ 17,019,391 $ 17,787,298 $ 18,135,971 $ 18,514,418 $ 18,268,810
LEVEL SERVICES BUDGET $ 17,139,349 $ 1 6,994,881 $ 17,784,352 $ 18,011,663 $ 18,485,421 $ 18,520,469
RECOVERY BUDGET $ 17,139,349 $ 16,994,881 $ 18,512,552 $ 18,739,863 $ 19,213,621 $ 19,248,669
LEVEL SVCS GAP $ 3,854 $ 24,510 $ 2,946 $ 124,308 $ 2 8,998 $ (251,659)
RECOVERY GAP $ 3,854 $ 24,510 $ (725,254) $ ( 603,892) $ (699,202) $ ( 979,859)
FY 12 CHANGE AMT Change % Difference
FY12 vs. FY11 FY12 vs. FY11
Override $ 800,000 6.09%
2.5% levy Incr $ 270,822 2.06%
Max Levy Incr 1,070,822 8.15%
State Aid (37,662) -2.78%
Local Receipts (110,775) -6.86%
Stabilizatin Use -
Internal Funds (154,477) -16.86%
Revenues 767,908 4.51%
Lev. Svcs Budget $ 789,471 4.65%
Recovery Budget 1,517,671 8.93%
Lev. Svcs Gap (21,563)
Recovery Gap (749,763)
15,500
16,000
16,500
17,000
17,500
18,000
18,500
19,000
19,500
FY10 FY11 FY12 FY13 FY14 FY15
Thousands
RECOVERY BUDGET
LEVEL SVCS BUDGET
REVENUES (DEFAULT BUDGET)
SCENARIO 2: $800,000 increase in revenues in FY 12
PROJECTED SURPLUS/DEFICIT--$900,000 FY 12 Override
REVENUES
Fiscal Year
2010 Actual FY 2011 Recap
FY 2012
Initial 2013 Estimates 2014 Estimates 2015 Estimates
Projected Override $ - $ - $ 900,000 $ - $ - $ -
Debt Exclusion $ 1,435,557 $ 1 ,195,509 $ 1 ,117,901 $ 1,026,351 $ 884,536 $ 9 23,575
Maximum Allowable Levy $ 1 3,027,859 $ 1 3,132,695 $ 1 4,303,516 $ 1 4,572,857 $ 14,829,704 $ 15,282,372
State Aid $ 1,380,861 $ 1,355,876 $ 1,318,214 $ 1,333,214 $ 1,358,214 $ 700,000
Total Local Receipts $ 1 ,952,483 $ 1 ,614,775 $ 1 ,504,000 $ 1,579,900 $ 1,679,000 $ 1 ,641,500
Free Cash $ 130,000 $ 100,000 $ - $ - $ - $ -
Wetlands Protection Fund $ 45,000 $ 45,000 $ - $ - $ - $ -
Stabilization Fund $ 75,000 $ - $ - $ - $ - $ -
Overlay Surplus $ - $ - $ - $ - $ -
Other (PI W&S assess) $ 532,000 $ 771,045 $ 7 61,568 $ 750,000 $ 7 50,000 $ 750,000
Total Internal Funds $ 782,000 $ 916,045 $ 7 61,568 $ 750,000 $ 7 50,000 $ 750,000
FISCAL YEAR 10 11 12 13 14 15
TOTAL REVENUES $ 17,143,203 $ 17,019,391 $ 17,887,298 $ 18,235,971 $ 1 8,616,918 $ 18,373,872
LEVEL SERVICES BUDGET $ 17,139,349 $ 16,994,881 $ 17,784,352 $ 18,011,663 $ 18,485,421 $ 18,520,469
RECOVERY BUDGET $ 17,139,349 $ 16,994,881 $ 18,512,552 $ 18,739,863 $ 19,213,621 $ 19,248,669
LEVEL SVCS GAP $ 3,854 $ 24,510 $ 102,946 $ 224,308 $ 131,498 $ (146,596)
RECOVERY GAP $ 3,854 $ 24,510 $ (625,254) $ (503,892) $ (596,702) $ ( 874,796)
FY 12 CHANGE AMT Change % Difference
FY12 vs. FY11 FY12 vs. FY11
Override $ 900,000 6.86%
2.5% levy Incr $ 270,822 2.06%
Max Levy Incr 1,170,822 8.92%
State Aid (37,662) -2.78%
Local Receipts (110,775) -6.86%
Stabilizatin Use -
Internal Funds (154,477) -16.86%
Revenues 867,908 5.10%
Lev. Svcs Budget $ 789,471 4.65%
Recovery Budget 1,517,671 8.93%
Lev. Svcs Gap 78,437
Recovery Gap (649,763)
15,500
16,000
16,500
17,000
17,500
18,000
18,500
19,000
19,500
FY10 FY11 FY12 FY13 FY14 FY15
Thousands
RECOVERY BUDGET
LEVEL SVCS BUDGET
REVENUES (DEFAULT BUDGET)
SCENARIO 3: $900,000 increase in revenues in FY 12
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