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02/28/07
Manager submits municipal budget, recommends bond issue
for some capital expenses
Town Manager Michael McGovern has submitted to the Town Council a $8.5 million
proposed budget for municipal services for 2008. (Not including school, county
or Community Services). At the same time, he is proposing a $2.25 million
bond issue for the spring of 2008 to fund several town projects, including
a traffic light at the entrance of the High School.
The budget proposal is up 2.45 percent over this year's $8.5 million town
budget, an increase that falls within the cap recommended by the Legislature,
and the 2.5 percent increase requested by the council's Finance Committee.
McGovern's spending proposal is expected to add 8 cents to the tax rate of
$16.16 per $1,000 of assessed valuation, or 2.23 percent for the town's portion
of the tax rate.
McGovern is proposing the bond issue to fund the traffic light, estimated
to cost $210,000, as part of a package of town-center improvement projects
that includes $100,000 towards a state Department of Transportation project
at Route 77 and Shore Road; $400,000 for sidewalk additions and improvements;
and, $540,000 for drainage improvements.
The bond is also proposed to fund preservation of the Spurwink Church building,
two public works trucks, a town match to privately funded bleachers, school
security items, greenbelt improvements and window replacements for the 1930s
building at the Middle School.
The bond would have no effect on taxes this coming fiscal year, McGovern
said in a telephone interview. "I anticipate minimal effect on future year's
budgets because other debt is being retired," he said.
In his budget message to the council, McGovern said salary, wage and benefit
increases account for $184,902, or 91 percent of the proposed town budget's
increase. Salaries and wages are slated for an average 3.8 percent increase,
and wages and benefits will cost 4.4 percent more than this year, he said.
Revenues from sources other than property tax are expected to be 1.5 percent
higher than this year, McGovern said. "Excise tax revenue is down $40,000,
or 2.3 percent, as residents are buying fewer and smaller new vehicles,"
his message says. "Investment income is up $90,000 due to better interest
rates for our bank deposits."
The 2.5 percent budget increase limit requested by the Finance Committee,
a committee of the whole Town Council, represents the 2006 consumer price
index for all urban wage earners and follows a pledge made by individual
councilors in 2004. Three of the seven current councilors made the original
pledge to limit town spending increases for fiscal years 2006, 2007 and 2008
to a rate no higher than the consumer price index.
Finance Committee Chairman Mary Ann Lynch said that at a recent workshop,
all seven councilors supported the 2.5 percent limit for the town budget,
and four supported 2.5 percent for the school budget.
McGovern's budget will be referred to the Finance Committee by the Town Council
at their meeting March 5. The committee will begin reviewing the budget in
public workshops beginning April 5.
For a complete list of budget workshops, please see the
special budget section on this website. |
