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02/21/2015

Manager's $9.8 million municipal budget proposal would raise overall taxes 1.7 percent

The proposal carries with it a 28-cent increase in the tax rate, which would raise the current $16.80 tax rate for town, county, school and Community Services 1.7 percent. For town services only, the proposed tax increase is 7.8 percent.

Most of the increase, as McGovern predicted in a preliminary report to the Town Council in January, is attributed to the Thomas Memorial Library construction project.

Interest and principal for the $4 million bond approved by voters in November comes to $290,000, accounting for more than half of the budget increase, McGovern said in his budget message to the Town Council. Without the library project, the tax rate in FY 2016 for non-school services would increase 10 cents, 2.8 percent, McGovern said.

Other major impacts are increases in salaries and wages, $82,900; capital needs, $50,000; and health insurance, $40,000. The health insurance increase is due to the makeup of the town workforce, McGovern said. "Library staffing changes have added to coverage and we have had single employees replaced by married employees or single employees have gotten married," he said in his budget message.

The capital stewardship plan calls for increasing funding for capital needs $100,000 annually, but this year's increase will only be $50,000 due to the impact of the library project, McGovern said.

Capital Funding

The budget details plans for a $1 million expenditure on capital needs, maintaining the town's tradition of capital stewardship. Topping the list of capital recommendations is $435,000 for roadway paving and drainage improvement, following recommendations in the pavement management plan adopted in 2013."The plan creates a plan for improvements to our collector and local road network," McGovern said, and targets funding for Old Ocean House Road, Spurwink Avenue (East), local roads and miscellaneous paving, drainage and materials.

Related sidewalk and pedestrian improvements are also budgeted for $25,000. This account typically funds preliminary design and engineering for future projects, but could be a source of funding for extensions discussed by the Town Center Plan Committee. "Other items funded by this include pedestrian control devices, such as signage, additional pavement markings and pedestrian bollards," McGovern said.

Another recommendation of note is a $11,500 to restore the old fire house at Fort Williams. "The windows have been boarded up for more than 30 years," McGovern said.

The second largest of capital proposals is replacement of a front-end loader at $180,000.

Revenue increase expected despite loss of state funding

Revenues from sources other that property taxes are expected to show a net increase of $100,000, McGovern said, despite an anticipated $29,000 reduction in state revenue sharing and the state's local road assistance program. Excise tax revenue is expected to increase $100,000, and revenues from other sources such as building permit fees and the Recycling Center should offset the reduction in revenue sharing and road assistance.

Budget review schedule

The Town Council's finance committee will review the municipal budget in workshop sessions this spring. All begin at 7 p.m. in the William H. Jordan Conference Room at Town Hall [directions]:

Finance Committee Review of Accounts 100, 200, 400, 500, 600-635, 710  Monday, March 16, 2015
Finance Committee Review of Municipal 300 and 640-670 and Special Funds  Wednesday, March 18, 2015
Regular Town Council Meeting Including Opportunity for Budget Public Comments  Monday, April 06, 2015
Finance Committee School Budget Presentation  from School Board 7:00 p.m. Monday, April 27, 2015
Finance Committee Wrapup (if needed) Wednesday, April 29, 2015
Regular Town Council Meeting and Budget Public Hearing and Council Vote on Budget  Monday, May 11, 2015