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<p align="center"><b><font face="Verdana" size="5" color="#0000FF">Finance
Committee Chairman's</font></b></p>
<p align="center"><b><font face="Verdana" size="5" color="#0000FF">
Presentation to Town Meeting</font></b></p>
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<p class="MsoBodyText" style="text-indent: 0; margin: 1 5">
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<p class="MsoNormal" style="margin: 1 5">
<font face="Verdana" size="2"><span style="line-height: 200%">Thank
you Mr. Moderator</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">Good Evening Fellow Town Meeting Members:</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">The Finance Committee is pleased to
recommend the Fiscal 2005 budget for your consideration and
appropriation. The recommended budget seeks to provide for all of the
costs and needs of our community in a fair manner. The Committee believes
that the recommended budget should be well researched, fiscally
responsible, and sustainable. In readying the Fiscal 2005 budget the
committee faced several challenges.</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">The recently revised revenue projection
indicates revenues for Fiscal 2005 will rise 2.97% to $76,743,273. While,
the property tax levy, with new growth, is forecast to increase 3.6%,
other categories of revenue are less robust. Fiscal 2005 marks the<b><span style="font-weight: bold">
<u>third</u></span></b> year in which key categories of state aid will
have declined or shown no increase. In combination with modest growth in
local receipts, the overall rate of revenue growth is just under 3.0%.</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">Town wide expenses, fixed in nature, are
expected to total $16,660,769 rising 9.6% from Fiscal 2004. The committee
is recommending a <u>meaningful</u> decline in the reserve fund for Fiscal
2005. Excluding the changes in the reserve fund, town wide expenses are
forecast to increase 13.4% at this time. This rate of growth
automatically leaves less funds for Town Meeting to appropriate to
departments and to cash capital projects. Of the $76,743,273 in revenues,
$60,082,504 is available to provide for the town�s services,<font color="black"><span style="color: black">
m</span></font>aintenance of its infrastructure,<font color="black"><span style="color: black">
</span></font>and for financial warrant articles. Of the $59,002,783
being recommended for the departmental budgets, 58.7% is being recommended
for the school department while 41.3% is for other town services. </span>
</font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">The Finance Committee originally
identified $1,295,477 of revenues as non-recurring to be put towards cash
capital requests. Original cash capital requests totaled $1,470,000.
Official notification of a grant for the fire radio system, an outstanding
grant application for Engine Repairs, and recommended reductions in other
cash capital requests, is allowing the Committee to recommend that an
additional $323,477 be appropriated in the operating budget. Thus, Fiscal
2005 cash capital recommendations total $972,000 vs. a request of over
$1,400,000.</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">Funds earmarked for cash capital<font color="black"><span style="color: black">
</span></font>a decline in the Minuteman assessment<font color="black"><span style="color: black">
</span></font>and adjustments to anticipated state aid are providing the
revenue for recommended adjustments, to the Fiscal 2005 budget, from those
printed in your warrant. These adjustments can be found in the <u>
Amendment to Article 12,</u> which was available as you entered this
evening. The adjustments noted in the amendment will offset <u>some</u>
of the reductions to departments imposed by the initial revenue estimate.
</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">The Finance Committee recognizes there are
risks associated with the recommendation of using non-recurring revenues
towards recurring expenses. However, the Committee was faced with a late
challenge of recommending funding for a large increase in Fiscal 2005
energy costs. It will be necessary to further augment the energy budget
at the November Special Town Meeting, beyond the $161,381 being
recommended tonight. The Committee also seeks to offset reductions to the
school department�s purchase of service and expenses from those printed in
your warrant. It is therefore recommending an increase to these line
items of $100,000 and $75,000 respectively, within the amendment.</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 150%">The Committee has come to an agreement
with the Board of Selectmen regarding staffing levels for the police and
fire departments. <u>All</u> originally proposed reductions <u>will be</u>
recommended for funding within the budget amendment. However, two of
these positions will not be <u>filled</u> pending the outcome of a study
on fire department personnel, and a determination of the need to add a 4<sup>th</sup>
Lieutenant in the police department. </span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">A recommended addition to the budget, as
printed in your warrant, includes the addition of an HVAC technician to
the MBMB staff. The town�s newer buildings require constant use of the
heating and ventilation systems. The Finance Committee believes that it
is nearly impossible for the current staff of <b>
<span style="font-weight: bold"><u>ONE</u> </span></b>to keep up with the
demands of maintaining the HVAC systems in all of our buildings. </span>
</font></p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">This is an integral part of the commitment
the Committee <u>urges</u> the Town to make in planning for, and
maintaining new buildings.</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">With the additional funds noted above, the
Committee believes it is important to restore one of three parks and
forestry positions eliminated in Fiscal 2004. All of the town�s fields
undergo <u>constant</u> <u>and</u> <u>intense</u> use from sporting events
and practice. Town fields are a capital asset that should be maintained.
Further, this is in keeping with the Town�s policy that the DPW take over
the maintenance of the Broadmeadow and Eliot fields. </span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">Lastly, the Finance Committee will be
recommending the adoption of three capital articles for a total of
$1,500,000 whose debt service impacts general fund revenues. For Fiscal
2006, levy debt service, as a % of these revenues, is expected to decline
slightly</span></font></p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">from Fiscal 2005, remaining just under
3.0% of general fund revenues. </span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">The Committee worked carefully, following
its traditional process, to be able to recommend a budget which builds
upon the financial strength of the town,� provides for services in an
equitable manner,� and prepares the town for future challenges. The
�whole picture� was continually evaluated in considering such things as
the use of one time revenues and the use of one time reserves. The
Committee appreciates the sacrifices that will be made by departments as
budgets are pruned back in the face of increased demand for their
services. </span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><u><font face="Verdana" size="2">
<span style="line-height: 200%">The Town <b>
<span style="font-weight: bold">WILL</span></b> face significant
challenges in Fiscal 2006 and beyond.</span></font></u><font size="2" face="Verdana"><span style="line-height: 200%">
The most significant include the prospect of increased energy <u>and</u>
maintenance costs as new buildings come on line. This could be a <u>
daunting</u> challenge if energy pricing remains high over the next
several years. It is hoped that these costs can be integrated within a
long term plan. Additionally, state aid could remain level funded or
decline given a recent court ruling as well as structural issues within
the state budget. The Fiscal 2005 budget recommendation positions our
town to face its future challenges with a strong foundation.</span></font></p>
<p class="MsoNormal" style="margin: 1 5"> </p>
<p class="MsoNormal" style="margin: 1 5"><font face="Verdana" size="2">
<span style="line-height: 200%">Thank you very much.</span></font></p>
<p style="text-indent: 0; margin: 1 5"> </p>
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