03/15/2018

Proposed 2018-19 municipal budget would lower tax rate for town, Community Services

Town Manager Matthew Sturgis is proposing a $12.25 million town budget for 2018-19, up 0.9 percent over this year's budget for municipal and Community Services.

The proposal would decrease the town portion of the tax rate 0.4 percent, or 2 cents below this year's rate of $4.47.

In presenting the proposal to the Town Council March 12, 2018, Sturgis credited the reduction in taxes to an increase in revenue other that property tax of $98,337, up 2 percent over this year. "Residents have been buying newer motor vehicles and thus monthly collections have been improving," he wrote in his budget message. The budget projects a $2.15 million in excise tax revenue, and increase of 2.6 percent and the largest in a single revenue line.

Here are highlights Sturgis' outlined in his budget message:

• A 2-percent average wage increase.
  
• Increase from one to two per-diem fire personnel, increasing the town's coverage.
  
• Increased personnel costs adjusting to recent updates and the Recycling Center.
  
• Increased legal budget anticipating upcoming lawsuits.
  
• Significant capital purchases in line with the capital improvement plan, with larger purchases through lease-purchase agreement.
  
• Replacement of Fire Department's ladder truck ($1.25 million) and 15-year-old ambulance ($250,000).
  
• Phase II of the Hill Way/Scott Dyer Road reconstruction.
  
• Replacement of a dump/plow truck and larger pickup truck.
  
• Anticipated expenditure of $50,000 for purchase of pay/display units for Fort Williams.

The pay/display parking units for Fort Williams Park are budgeted as a "marker" in case the Town Council decides to go forward with the system, Sturgis said in a telephone interview. Councilors discussed the idea at workshops Sept. 18 and Feb. 5, and are expected to consider it at their regular meeting April 9.

Offsetting these increases, Sturgis said, is the use of $500,000 from unassigned fund balance toward capital improvements and continues the use of $375,000 against annual operating expenses. "This will lower the current amount of unassigned funds, but keep the overall level of unassigned funds properly in line with the current policy that the town has," he said.

The Finance Committee, a committee of the whole Town Council, will review the budget proposal in workshop sessions March 20 and 21, beginning at 7 p.m. at Town Hall. Click here for full budget review schedule