Finance Committee Looks For Additional Cuts

The finance committee on Monday put off voting on the 2012-13 proposed budget upon the realization that they were $305,000 from delivering a budget with a zero tax increase to the town council.

“We’re looking at and evaluating the impact to the town,” said Mike France, the committee’s chairman. “We’re looking to see if it’s feasible to get to a zero mill increase or not.”

Assuming all revenues stay the same, Finance Director Marcia Hancock said the town council would have to reduce spending by $305,000 to deliver a budget with a zero tax increase to the town.

Citing a warm winter as an example of where savings can be found, members of the finance committee are waiting to hear back from Superintendent of Schools Michael Graner about potential savings in the that can carry forward into the next fiscal year.

“We have already reduced (the budget by) $1.1 million,” Graner said of proposed school spending. “Reducing any more than $1.1 million would really be a huge hardship on the schools.”

Graner said that the district likely saved money in fuel oil this year, which he could shift into the school equipment fund, in lieu of the town’s $50,000 contribution.

“If they truly have a savings in this year's budget, we can use some of it,” said councilor Sharon Wadecki of unspent education funds.

France said the finance committee is looking into reducing the health insurance reserve fund by approximately $100,000.

If that were to happen, the reserve fund would amount to $927,910 and 14 percent of projected claims, according to Hancock. She said the town usually keeps 20 percent to 40 percent of projected claims in a reserve fund.

Wadecki said she has seen the reserve fund dip below uncomfortable levels in the past but this year, she’s wouldn’t mind reducing it by the proposed amount.

"I think there's a point when the reserve gets too big,” she said.

As it stands now, if adopted, the proposed $49,222,805 budget would result in a .28 mill increase to the tax rate from 27.93 mills to 28.21 mills, which would result in a 1 percent increase in taxes.

So, for every $100,000 of assessed value, $2,821 will be owed, which is $28 more than the current year’s obligation.

This finance committee will vote on a budget Wednesday, April 4 and the town council will vote on that budget Wednesday, April 11. The public hearing on the proposed budget is April 19 at 7 p.m. in the high school auditorium and the town meeting is on Monday, May 21 at 7 p.m. at the same location, which adjourns to a referendum on Tuesday, May 22 from 6 a.m. to 8 p.m.

Related Topics: School Budget and town budget 2012-2013