Preliminary Budget Presented at the Selectmen's Meeting

Town Administrator, John Coderre presented a preliminary budget on Monday night at the Selectmen’s meeting. The overall budget was $48.6M or a .95% increase over FY2010.

Revenue Key Drivers or Assumptions

Tax Receipts increase of 3.51% or $1.1M
State Aid cut mid-year FY10 to the SPED circuit breaker and these funds are assumed to remain cut in FY11, a decrease of funding by $476k.
Selectmen voted enforce the enterprise funding for the trash disposal program (or PAYT), thus making the program self funding, removing the program’s deficit from the town budget. The program had been projected to require $287K in funding from the general fund this coming year.

Expense Key Drivers or Assumptions

Level spending, cut costs where possible without affecting services or employees, remain within the confines of Proposition 2 1/2.
Insurance cost for building, liability and worker’s comm budgeted at a 0% increase based on contract re-negotiations last year. Health insurance held to a 3% increase.
Northborough K-8 and Algonquin Regional School budget assumed to increase at 1.6%. Assabet Regional budget assumed to increase 19% to a total of $730k for FY11.
Water/Sewer enterprise fund is budgeted at $825k less than the FY10 forecast, based reduction of head count (elimination of unfilled positions Cemetery Superintendent and a DPW Heavy Equipment Operator)
Friends of the Senior Center and Friends of the Library are making donations to provide for programs and books. Elimination of the vacant Assistant Library Director position.
Cut part-time Financial Assistant from the Treasurer’s office, reduce Assistant Town Accountant to 30 hour pay week, promoting the Town Assessor/Collector to Finance Director.
Proctor School debt service was paid off in FY10.

Uncertainty Factors:

Police, fire and dispatcher contracts are up for renewal soon thus are unsettled for FY11.
State Aid, John Coderre pointed out the lag to return state aid to prior levels after the last economic recession/recovery was 6 years.
Assabet Regional cost allocation.