Town Meeting Member:

Town Meeting Member Corner contains additional supplemental information for members in response to questions raised at the March 22 Appropriations Committee Public Hearing.  This information was also mailed directly on March 24 to town meeting members, Appropriations, and Capital Planning members.
Again, we urge you to contact the individuals listed in the March 14 mailing for questions or information you may have prior to the meeting so we can provide you with the materials and answers you need to make the most informed decisions.

TOWN OF SOUTH HADLEY, MA
GOLF COMMISSION
 
18 Mulligan Drive                                              South Hadley, MA  01075
(413)532-2307

March 24, 2006

    To:  Town Meeting Members
From:  Ad Hoc Committee of Ledges Clubhouse

At the March 22nd public hearing held by the Appropriations Committee, the Clubhouse Ad-Hoc Committee made a presentation in support of building a new clubhouse at the Ledges Golf Club.  After the presentation many valid questions were asked – the majority of which were regarding the potential increase in income, both from golf revenue and food & beverage revenue, that could be derived from having a new clubhouse with banquet facility.
After a thorough review of the financial results for the past 3 years, we have developed 3 different scenarios for your review.  We hope that this will be of help to you in making an informed decision when you vote on the warrant.
We started out by looking at a breakdown of rounds played for 2003, 2004 and 2005.  We broke them down into “League Rounds”, “Outing Rounds” and “Daily Fee Rounds”.  For our analysis we put our emphasis on 2004 and 2005.
You will note that there was an overall decrease in rounds played from 2004 to 2005 of 3,815 rounds.  It beaks down to 428 league, 1,310 outing and 2,077 daily fee.  It is our belief that the reduction in outing and league play is a result of our inability to offer them clubhouse and food and beverage facilities.  The daily fee reduction we feel was due to the very poor weather in May and June (these numbers are for the July to June periods).  To backup our assumptions we looked at the same breakdown for April 2004 thru August 2004 versus April 2005 thru August 2005 (see spreadsheet 2).  This analysis showed that league and outing rounds were down 1,729 from 2004 to 2005 while daily fee rounds INCREASED by 790 rounds. 
It is the unanimous feeling of the Ad-Hoc Committee that, in order to turn this cycle around, we need to offer our potential clientele a facility that will accommodate; a.) a comfortable, air conditioned place where they can have a sandwich and beverage and visit with their friends after their round of golf, and b.) a banquet facility that would allow us to market outings and leagues with a comfortable, complete, indoor facility to have their post tournament banquet.  To that end we feel that we should not wait any longer to replace the current “trailer” with a new, permanent clubhouse structure.  If we move quickly, not only could we have a clubhouse ready for the opening of the 2007 season, we could use the winter to market more leagues and outings with the clubhouse as a major selling point.  Additionally, we could minimize the amount of time we need to make the $1,240 monthly payment on the current “trailer”.  The longer we wait the longer it will take to realize increased revenues.
The attached Spreadsheet #1 summarizes the three revenue projections referenced above.  Each of these scenarios are in current dollars and do not take any inflation or rate increases into account.

Scenario 1 shows that The Ledges would increase golf revenue by approximately $130,000 if we could increase the rounds back to the same level as we had in 2004.  This is a very realistic scenario as, with proper facilities, there should be no problem returning to the same levels that we have already attained in the past.
Scenario 2 shows that The Ledges would increase golf revenue by approximately $228,000 if we could increase the rounds by only 10% over the 2004 level.  Again, we feel this is very attainable.
Scenario 3 shows that The Ledges would increase golf revenue by approximately $326,000 if we could increase the rounds by 25% over the 2004 level.  While this is attainable, we feel that it would take 2 to 4 years to reach that level.

In addition to golf revenue, the new clubhouse facility would also see an increase in revenue from the Food & Beverage Contract as well as increased sales of merchandise in the Pro Shop.  The Ledges current Food & Beverage Contract for the 2006 season is $3,000.  Comparatively, the Food & Beverage Contract the City of Chicopee has this year for Chicopee Country Club is $31,500.  This is for the golf season only.  If The Ledges could get a similar contract with a new clubhouse, the increase of $28,500 would cover the debt service on the facility (depending on how it was financed).  The contract could be even higher if the decision was made to keep the facility open year round.
In conclusion, it is the Ad-Hoc committee’s conclusion that, with a new clubhouse facility, The Ledges and the Town of South Hadley could realize a potential increase in revenues of from $160,000 to $360,000 per year (including golf revenue, food & beverage and pro shop merchandise).  On top of this, we would have the driving range revenue.  If this additional revenue is realized by The Ledges it would certainly create a much smaller burden on other  town departments caused by the current deficits created by The Ledges.
For these reasons, the Ad Hoc Committee respectfully asks you to support Warrant Article 2 requesting design and specification fees for a new Ledges Clubhouse.

SHEET 1                 July 2002 -     July 2003 -    July 2004 -  
                            June 2003      June 2004     June 2005   Variance
YEAR                                                                             2004 -2005
 
 
Leagues Rounds       4,122            5,519           5,091           (428)
   
Outings Rounds        1,601            3,689           2,379           (1,310)
   
Daily Fee Rounds     16,219           13,981         11,904          (2,077)
                             21,942           23,189         19,374          (3,815)
  
2005 TOTAL INCOME                                     $621,000.00 
      
Scenario #1     
                                                         Increased                  Increased   
Return To 2004 Levels                          Rounds     $/Round      Income   
     
Leagues                                               428         $18.00      $7,704.00   
Outings                                             1,310         $34.00     $44,540.00   
Daily Fee Rounds                               2,077          $31.50    $65,425.50   
Memberships                                         10      $1,200.00    $12,000.00   
     
TOTAL INCREASE FROM  FY2005                                          $129,669.50   
      
ESTIMATED TOTAL ROUNDS/INCOME                        23,189  $750,669.50   
     
      
Scenario #2      
                                                         Increased    Increased   
10% Increase Over 2004 Levels                Rounds     $/Round      Income   
       
Leagues                                                  800        $18.00       $14,400.00   
Outings                                                1,677        $34.00       $57,018.00   
Daily Fee Rounds                                   4,396        $31.50     $138,474.00   
Memberships                                             15    $1,200.00      $18,000.00   
      
ESTIMATED TOTAL ROUNDS/INCOME                                       $227,892.00   
      
ESTIMATED TOTAL ROUNDS                        26,247                 $848,892.00   
     
      
Scenario #3     
                                                           Increased    Increased   
25% Increase Over 2004 Levels                Rounds    $/Round       Income   
     
Leagues                                                 1,808      $18.00       $32,544.00   
Outings                                                  2,232      $34.00       $75,888.00   
Daily Fee Rounds                                     5,572      $31.50     $175,518.00   
Memberships (75 Total)                                35   $1,200.00     $42,000.00   
     
TOTAL INCREASE FROM  FY2005                                             $325,950.00   
     
ESTIMATED TOTAL ROUNDS/INCOME             28,986                $946,950.00

SHEET 2                      9- Hole  18 - Hole  League Outings Junior   Member        
                                 Rounds  Rounds    Rounds Rounds  Rounds Rounds    
      
Apr thru Aug 31,2004    2711     3476        5076      1970   598       1675  15506    
Apr thru Aug 31,2005    2521     4031        3769      1548   753       1945  14567    
                                 (190)      555        (1307)   (422)   155        270    (939) 

    
                                                                                      League/Out (1,729)    
                                                                                      Daily Fee       790    

SCOPE OF WORK - Driving range Practice Fairway:    

1.  INSTALLATION OF PARKING AREA, DRIVEWAY, 5' WALK PATH USING RECLAIMED     
     ASPHALT MATERIAL.    
2.  INSTALLATION OF 6'x100' CONCRETE SLAB GOLF PAD AND 15'x15' SLAB FOR    
     BALL MACHINE    
3.  INSTALLATION OF 350' ELECTRICAL CONDUIT, POLE, BOXES AND WIRES     
4.  INSTALLATION OF 160' DRAINAGE PIPE FOR PARKING AREAS RUN-OFF AND     
     CONTINUATION OF ROAD SWALE    
    
MATERIALS:    
    
ITEM                            UNIT     QUANTITY    UNIT PRICE         TOTAL
Road Base Course         TON          280           $16.00           $4,480.00
Drainage Pipe- 10" ADS  LF            160             $4.00              $640.00
Road Apron                  TON            23           $45.00           $1,035.00
Concrete- slab              CY              16           $95.00           $1,520.00 
Electrical-conduit           LF             350             $1.50              $525.00
 & wires*                                                                           $8,200.00
                                                          10% Contingencies =  $820.00
                                                         Sub Total Materials=  $9,020.00
LABOR    
    
ITEM                              UNIT       QUANTITY      UNIT PRICE        TOTAL
Backhoe/Loader Operator HOUR         60                $18.19       $1,091.40
Laborer                          HOUR        120                $13.74       $1,648.80
Foreman                        HOUR          10                $20.50          $205.00
Assistant Town Engineer   HOUR            1                $23.56           $23.56
                                                                                           $2,968.76
                                                               10% Contingencies = $296.88
                                                                 Sub Total Labor = $3,265.64
    
    
* Note: The electrical service includes: excavation, laying of pipe, backfilling, & compaction, by the DPW.    
Pulling of wires, installation of a telephone pole with security light, breaker box and outlet, and meter by DPW/SHELD.    
All materials cost total $550 and include pipe, wire, breaker, outlets, light. And pole      
SHELD will work with DPW staff and oversee pulling of wires, install  meter, outlet and security light on a pole.     
    
                                  ITEM                                     COST
Electrical Material Cost: Disconnect Switch and outlet     $100.00
                                 Conduit and Wire                    $350.00
                                 Security Light                            $50.00
                                 Pole                                        $50.00
    
                                 Total:                                    $550.00
    
Electrical Labor Cost  SHELD Lineman                          $150.00

OCTOBER 2005

Welcome to Town Meeting Member Corner! This webpage on the Town’s website has been created to provide information to town meeting members on an intermittent basis about follow-up items and actions that take place after town meeting votes on various articles as well as provide updates on anticipated future items requiring town meeting consideration.

In this manner, town meeting members will not only have an ongoing source of information that will help supplement the materials already provided in mailings for upcoming meetings, but will also gain additional news and information regarding future proposed actions. While the extent and detail of information provided to town meeting members has increased considerably over the past few years, there are always ways to expand and improve communications to town officials and the public and provide information in an accurate and factual manner.

Please visit this link occasionally to receive further updates. This webpage is not an interactive site and its content is determined by the Town Administrator. However, if you would like to suggest constructive comments to enhance the benefit of this service please send an email to selectmen@southhadley.org.

Below is the annual budget overview which is included with FY 07 budget requests and submitted to the Selectboard and Appropriations Committee. During the months of January and February both groups will be reviewing each departmental budget, annual goals, and requested items.  This information contains a detailed analysis of the Town’s revenue and expenditure projections and provides an excellent tool for understanding the Town’s present financial position as it begins deliberations for FY 07 budgets.
-------------------------------------------------------------------------
MEMORANDUM

TO: Selectboard
Appropriations Committee
Capital Planning Committee

FR: Patricia Vinchesi, Town Administrator

RE: FY 2007 Department Budgets

DA: January 11, 2006

Cc: Bill Sutton, Town Accountant
School Committee and Dr. Sayer
Department Heads and Staff
Website

Enclosed for your review are FY 2007 departmental requests and goals for town departments. Once again, special thanks are given to Lynn Roberts, Assistant Town Accountant, Lisa Napiorkowski, Administrative Secretary, and Linda Scott for their hard work in compiling these notebooks.

Budget instructions distributed on December 2 did not constrain department heads in crafting 07 requests. The exception to this is that, as in previous years, departments were asked to reflect fixed cost increases for insurance, service maintenance agreements, and/or contractual obligations. All budgets followed the established format, now entering its sixth year, and the cooperation of each unit is much appreciated.

FY 2007 Budget Assumptions are in this memorandum and commended to your attention. This historical trend document on major town expenditures and revenues paints a good picture of the Town’s current financial capacity for FY 07 before any budgets are reviewed. Each year we endeavor to improve this document and the FY 07 projections include a financial trend monitoring component. Specifically as past indicators are good benchmarks for future performance, the trend in the account can now be approximated since we have six years of history. We are assuming FY 2007 local aid to remain at FY 06 levels. (06 local aid was significantly more than in prior fiscal years). More will be known when Governor Romney submits his budget the end of this month. However, it is possible that there will be an increase in local aid, but no decrease because this is an election year and state revenues are well beyond original projections.

In FY 06 town meeting approved the restoration of several positions that had not been filled due to attrition or had hours reduced in previous years. There are numerous requests this year for new or increased staffing in FY 07 departmental requests.  FY 06 budget instructions requested each department to submit a narrative projecting staffing needs for the next one to five years. If the 07 request was not previously mentioned in 06, it will be noted in the staffing projection provided under separate cover next week.

We still struggle with an ongoing commitment to capital needs. Some good strides were made in FY 06 with the creation and allocation of funds for a Capital Stabilization Fund and reorganization of the Capital Planning Committee under the new bylaws. It is hoped that this Committee will now be more involved during the year in capital issues.  There is also a request in this budget to employ a financial consultant to work with the Town on options to finance capital items and help establish a rolling (and annually funded) capital plan.  Beginning this year, a new regulatory piece of the federal GASB 34 will require communities to identify the unfunded costs of health insurance for subscribers. While it is not required to be funded, it must now be shown as an unfunded expenditure.

The Town’s Free Cash has been certified at $1,743,995.00. This amount is more than many communities twice our size. Of this amount, $325,141 was spent at the November 2005 special town meeting leaving a balance of $1,418,584. However, a significant amount of these available funds may already need to go to FY 06 unanticipated expenses such as school fuel costs ($150,000) and repairs to the Mosier School gym (about $38,400 with some costs offset by insurance). The Council on Aging has already communicated that they have had $11,097 in unanticipated expenses over budget this year as a result of vandalism and alarm box replacements. There have also been recent discussions about a driving range ($23,000) at Ledges and three union contracts in the school have no FY 06 settlements. The three year average cost for snow removal is
 $212,500. After the budgeted amount of $78,502 is expended, the remaining balance comes out of Free Cash. A snow emergency was voted on January 10, which means the $78,502 is expended. These expenditures, if approved, will significantly lower available Free Cash to fund FY 07 budget requests.

FY 07 expenditures include a significant anticipated increase in SPED costs ($250,000 over 06) and major requested increases in the DPW (including an increase in snow removal budget) and police budgets. As of this date, the School Department is estimating an overall increase of 8%. FY 07 also begins another revaluation year at an estimated cost of $66,000 ($33,000 FY 07). Next, union contracts for DPW and Police expire on June 30, 2006 and bargaining will commence shortly. All of these issues will require prioritization by town officials.

Last, changes in the administration and management of the Ledges Golf Club in FY 06 have improved operations and the condition of the course tremendously, but the FY 05 deficit of $623,079 was the highest posted since the course opened. A committee is currently reviewing the potential for a driving range (noted above) and replacement clubhouse facility ($300,000). As stated at the November special town meeting, the immediate goal is to have the revenues of the course meet the operating budget. This is still short by approximately $200,000. The annual debt payment of $395,000 just pyramids on top of this. It is obvious that the financial position of the Town and the ability to fund capital and other needs in recent years  would have been immeasurably improved by not having to take a half million dollars off the top of the budget each year.  This trend will continue, at the expense of school and town needs for the next several years. It is highly unlikely that the golf course is going to meet its total budget no matter how it is operated or managed as long as the annual debt payment remains.

Expansions/improvements/new construction to Mosier and Plains Schools as well as initial discussions for a library addition all loom on the horizon.  It is therefore recommended that the Selectboard and Appropriations Committee seriously consider a debt exclusion override for the golf course debt. I briefly rose this last year during the tail-end of budget deliberations. It is being recommended at the outset this year. Information provided by the Assessor’s Office indicates
FY 2006 Maximum       
Allowable Levy        17,547,422     
      
FY 2007 Levy Limit        17,449,609  ( this includes 2.5% @ 418,544 and growth @ 289,300)
School Debt Excl.            778,182     
Golf Debt Excl.            396,573     
      
FY 2007 Maximum      
Allowable Levy        18,624,364                (18,227,791   without golf debt)
      
FY 06 Taxable Valuation   1,382,008,599     
6% ESTIMATED REVAL        82,920,516     
Growth in Value        22,797,478     
      
Total FY 07 ESTIMATED     
Taxable Valuation   1,487,726,593     
      
Tax Rate w/o Golf    $           12.25     
Tax Rate including Golf  $           12.52     
        
Difference per 1000    $             0.27     

Each year we endeavor to improve operations over the previous fiscal year.  The landfill fee was reduced yet again, from $50 to $20. There is a study committee in place to look at bringing new water facilities to our town in light of the closing of the Buttery Brook state pool. Funds have already been requested in the state budget for design for this. We secured the purchase of the 288-acre Bachelor Brook/Stony Brook property and continue to work on the development of the canal and Riverside Park areas.  Once the Texon building is demolished, the look of this entire area will change. Much time and effort (eight years worth) have already gone into the critical development initiative. The Town Commons project will be completed next spring and when that is done, the Route 47 bridge will be refurbished. 

Town staff is available to answer any questions you have.  Please give them every consideration.
TOWN OF SOUTH HADLEY
FY 2007 BUDGET ASSUMPTIONS

Revenue Assumptions

1. The Town is allowed to increase its tax levy limit 2.5% from the previous year’s base.  This will increase the limit in FY 07 approximately $418,544
.
      FY 06: $401,864
FY 05: $383,720
FY 04: $368,004
FY 03: $354,915

Trend: It is assumed that while this amount increases somewhat each year, it will remain around the $400,000 range for the next few years.

2. FY 07 new growth is estimated to be $289,300. (policy is three year average )
New Growth   Estimate   Actual
FY 06    $257,101   $265,355
 FY 05    $200,000   $342,037
FY 04    $150,000   $260,620
FY 03    $150,000   $168,646
FY 02         $153,563
FY 01        $252,459
FY 00        $276,169
FY 99        $214,471

Trend: With the exception of F Y05, the Town’s projection of this amount has been fairly reliable. It is assumed that the ranges will remains at the amount predicted here.

3. Chapter 70 state aid will be level-funded. The FY 06 is estimated to be $5,531,820

FY 05: $ 5,178,059
FY 04: $ 4,949,208
FY 03: $ 6,171,610
FY 02: $ 6,171,610

Trend: After a significant reduction in FY 04, amounts began to go back up in FY 05 and FY 06.  However, it is not anticipated that is will approach FY 03 levels for at least two or three more fiscal years.

4. FY 06 estimated Total Lottery Aid is: $2,575,191.

FY 05 Total Lottery Aid:  $2,459,522 which included a one-time appropriation of $269,000.

FY 04 Total Lottery Aid : $2,189,688.
FY 03 Total Lottery Aid:  $2,335,238
FY 02 Total Lottery Aid:  $2,576,104  

Trend: Lottery Aid remains constant around the $2,500.00 level. While much is being discussed in the Legislature about “uncapping” the Lottery, it is not anticipated that it will be adopted in the immediate future.

5. In FY 07 General Fund Receipts will be increased by $50,000 to $2,338,693

FY 06 General Funds Receipts are currently estimated at $2,288,693.

General Fund Local Receipts: Estimated Actual  Variance (+ or - )
FY 05    $2,243,171 $2,736,786 $ 493,615 
FY 04    $2,321,780 $2,679,054. $ 357,274
FY 03    $2,173,550 $2,428,789 $ 255,239
FY 02     $2,089,952 $2,522,987 $ 433,035

Trend: While growing, Local Receipts can vary by as much as $150,000 per fiscal year. A conservative approach will continue to be employed when forecasting amounts.

6. FY 06 certified Free Cash is $1,743,995

FY 05 certified Free Cash: $1,282,817
FY 04 certified Free Cash: $1,663,785
FY 03 certified Free Cash: $1,548,768 
FY 02 certified Free Cash: $1,067,102* new budget process implemented
FY 01 certified Free Cash: $1,059,020  
FY 00 certified Free Cash: $   627,791
FY 99 certified Free Cash: $   347,624
FY 98 certified Free Cash: $   724,947
FY 97 certified Free Cash: $   718,471

Trend: Tighter budgeting, departmental turnbacks and several one-time amounts have increased Free Cash significantly in the past four years. It is assumed that future Free Cash amounts will be lower around the $1-1.3,000,000 range.

7. Because of aggressive prior year collections, tax title collections are expected to remain the same as in FY 06.  In six months of activity for FY 06 thus far we have witnessed a reduction of approximately 40%. 

Tax Title Collections   Estimate Actual  
FY 06 to date:      $  77,047
FY 05       $  93, 026*
 FY 04      $139,797 $186,283*
      FY 03       $160,854 $112,224*

 * Does not include additional amounts received as part of delinquent Districts tax. 
 
 Trend: This revenue stream will continue to decrease significantly

8. Medicaid reimbursements are assumed to continue at a steady rate with a minimum collection of $100,000.
Medicaid Reimbursements  Estimated Actual  Variance
FY 06     $100,000 not in hand   
FY 05     $  75,000 $205,611 $130,611
FY 04     $  75,000 $113,199 $  38,199
FY 03              -0- $257,584 $257,584

Trend:  This revenue source has only been estimated for a few years and varies widely.  As a result, a conservative estimate will continue to be employed.

Expense Assumptions

1. A balanced budget is required by law.

2. Of the nine bargaining units in Town (two Town, seven School), three do not have contracts for FY 2007 and bargaining is in progress. 

• A 1% increase on DPW wages is approximately $7,200.

• A 1% increase in police wages is $10,600.

• For each 1% granted in wages to Exempt Personnel (about 69 positions) the increase is approximately $21,000.00. The FY 07 request is $67,000.

• For individual contracted Town staff (three), a 2% wage increase is contracted plus allowance for merit for the Town Administrator and DPW Superintendent. For the chief of police, it is 3% plus allowance for merit.
This is estimated to be $ 10,900.       

• The School Department is still negotiating with three unions for FY 06 (nurses, custodians, Unit C Administrators). Salary increases in place for FY07 are already included in the school budget request

• School Department individual contracted staff and per diem staff (approximately 30 individuals) a 1% increase is estimated at $11,000. Food Service employees are funded by a revolving fund exclusive of benefits which are budgeted on the town-side.

• According to a recent report received from the Department of Education, the Town of South Hadley’s Net School Spending amount as budgeted for FY 06 exceeds the minimum amount required under the education reform formula by 10%.

3. The cost of health insurance plans for active and retired employees is expected to
increase by 7.5% in FY 07 to $3,498,977. In FY 06 a 14.21% increase was assumed which was a 10% increase in the rates.

Health Insurance  Estimate Budget  Actual  Variance
FY 06   $ 3,088,800 $3,180,539 ---   ---
FY 05    $ 2,911,000 $2,760,000 $2,742,237  $ 17,763
FY 04    $ 2,902,924 $2,691,000 $2,531,492* $159,508
FY 03   $ 2,519,322 $2,419,104 $2,451,397 ($32,293)

*This included a shift in the contribution rate for retirees from 60% to 54%.

Trend: Health insurance costs for active employees and retirees will continue to increase in double digit amounts.

4.  In FY 07 Medicare/Social Security Taxes will increase $40,000 to $280,000.

Medicare/SS Taxes Estimate Budget  Actual  Variance
FY 06   $254,000 $240,000 -----  ----
FY 05   $238,000 $222,000 $221,487 $     513 
FY 04   $207,405 $218,000 $207,807 $10,193
FY 03   $217,000 $197,530 $203,523 ($5,993)

       Trend: This expense item will continue to increase in the foreseeable future.

5. FY 07 Retirement Assessments will increase 11.4% to $1,386,568.00.

Retirement Assessment Estimate Budget  Actual  Variance
 FY 06   $1,251,926* $1,245,166 
FY 05   $1,169,165 $1,153,215  $1,138,030 $15,185
FY 04   $1,103,472 $1,125,133  $1,120,886 $4,247
FY 03   $1,086,524 $1,108,185  $1,109,958 ($1,773)

*includes first-time assessments for the early retirement incentive program

Trend: This amount will continue to increase significantly as baby boomers retire.

6. FY 07 Workers Compensation Allocation will be $ 75,000
    
FY 06 $55,000
FY 05  $73,000
FY 04   -0-
 FY 03  $50,000
 FY 02 $50,000
 FY 01 $175,000
 FY 00 $175,000

Trend: This account will continue to be funded between $50,000 and $75,000 to fund annual administrative costs.

7. In FY 07, for the fifth consecutive year, the Golf Enterprise Fund will not meet budget and will incur a deficit of approximately $575,000.
Golf Enterprise Deficit Estimated  Actual  Variance
FY 06*   ($591,444)  -----
FY 05    ($572,954)  ($623,079) ($50,125)
FY 04    ($414,082)  ($517,080) ($102,998)
FY 03       ($525,647) ----- 
 
*change in management structure/operations

Trend: The golf course is not anticipated to meet budget for the foreseeable future

8. SPED costs are estimated to increase by approximately $250,000 in FY 07.

9. A minimum allocation of $60,000 should be made to the Stabilization Fund. A minimum allocation of $60,000 should be made to the new Capital Stabilization Fund. Mount Holyoke will not be making further donations to this account.

Stabilization Fund  Requested Appropriated  Balance 7/1:
FY 06   $60,000        $  60,000        05  $1,688,109 
FY 05   $60,000        $  25,000*      04  $1,615,634            
FY 04   $60,000        $  48,099 **   03  $1,496,372
FY 03   $60,000        $  25,000*      02  $1,268,818
FY 02   $60,000        $  60,000        01  $1,129,984 
FY 01   ------          $250,000         00  $  816,644 

Interest earned by the Stabilization Fund will be allocated back into it.
Capital Stabilization Fund 
FY 06   $  $148,000

* $25,000 gift from Mount Holyoke College
**$25,000 from Mount Holyoke College, $28,150 from taxation, and $19,949 from savings is Tree Department:

10.  The Reserve Fund in FY 2007 will be $45,000.00.

Reserve Fund   Budgeted Expenditures  Variance
FY 06    $45,000           -----
FY 05    $45,000          $25,967  $19,033
FY 04    $50,000          $ 6,548  $43,452
FY 03    $60,000          $13,780  $46,220
FY 02*  $60,000          $34,748  $25,252
FY 01    $60,000          $56,721  $ 3,279

* new budget process implemented
 
Trend:  Tighter budgeting and low incidences of unforeseen events should keep this expense item stable.

11.  The allowance for abatements and exemptions for FY 2007 will be approximately 200,000.

Abatements/Exemptions  Estimated Actual  Variance
 FY 06     $210,000 $187,774
 FY 05     $267,547
 FY 04     $200,000 $264,791
 FY 03     $233,000 $190,562

Trend:

12. In FY 07 the estimated expense for maturing debt is $3,766,109 (($2,324,005 Principal & $1,442,222 Interest).

In FY07 the debt exclusion portion of maturing debt is $2,442,404 ($1,440,000 Principal, $1,002,404 Interest with a reimbursement of $1,644,222 from the Commonwealth.
 
 In FY 07 Short-Term interest is $41,766.12.

TOTAL DEBT

FY 06 $4,008, 313 ($2,471,667 Principal & $1,536,646 Interest) 
FY 05 $4,051,994.00 ($2,430,258 Principal & $1,621,736 Interest)
FY 04 $4,236,329.00 ($2,518,507 Principal & $1,717,822 Interest)

In FY06 the debt exclusion portion of maturing debt is $2,500,004 ($1,440,000 Principal, $1,060,004 Interest)

Program Assumptions

1. All programs, services, and staffing will strive to be preserved at FY 06 levels. New positions will be reviewed within the overall scope and initiatives of departmental needs. The availability of funds and previous indication of need in prior year budgets will also be considered.

2. Long-range budget and strategic planning will continue to be pursued to track deteriorating infrastructure and unmet capital and operational needs while trying to insure the best use of available resources.

PAV;01/06

FISCAL YEAR 2007 BUDGET AND CAPITAL REVIEW TIMETABLE

12/01/05   Budget Instructions and Forms Distributed to Town Departments
01/05/06   Departmental Budgets Due
1/06/06-1/16/06 Budget Materials Compiled, Reviewed by Town Administrator
 and Town Accountant
01/17/06  Budget and Supporting Materials Distributed to Appropriations Committee, Board of Selectmen, Capital Planning Committee

Selectboard*   Appropriations Committee Capital Planning Committee
Review with Dept. Head         Review with Departments         Review with Departments**

1/17/06@ 6    Week of 1/27/06  Week of 01/23/06
DPW    Assessors   to be scheduled as necessary
Council on Aging  Library  
Accounting   Clerk/Treasurer
    Board of Health

2/07/06           Week of 01/30/06  Week of 1/30/06
Police/Ambulance   DPW    to be scheduled as necessary
Building/Wiring          Council on Aging    
Conservation   Tax Collector  
Recreation   Accounting   
       
2/21/06           Week of 2/06/06  Week of 02/16/06
MIS    Police/Ambulance  School Department
Town Administrator  Recreation   
Other    Building/Wiring  
    Conservation    

    Week of 02/13/06  Week of 02/20/06
    MIS    School Department
    Planning Board
    Town Administrator

    Week of 02/27/06
                                School Department

    2/27-4/06/05
    Committee Budgets
Review, Deliberations

*These meetings will also include a review of FY 2007 Key Result Areas (goals)  
**Actual capital items requested will dictate final scheduling of departments before the Capital Planning Committee. 
------------------------------------------------------------------------------------------------------------
    03/22/06    
    Deadline for Receipt of All Warrant Articles including
    Those submitted by petition
                                3/27-4/14/06
Budget Packet Information Preparation Drafting of Warrant
    4/14/06 (4 weeks out Town Meeting***)
  Budget Packet Available with list of Warrant Articles
    For pick-up for Town Meeting Members

    4/19/06 (proposed)
    
                                Public Hearing on the Budget

    4/24/06
    
                                Proposed Tri-Board Meeting Date

    05/01/06
    
                                Deadline for Appropriations Committee Recommendations
   
    5/03/06
    
                                Final Warrant with Appropriations
    Committee Recommendations
    Mailed to Town Meeting Members
    (10 days out from Town Meeting***)

    5/13/06***
    Annual Town Meeting

***This is in keeping with the resolution passed at the October 24, 2000 Special Town Meeting proposed by the Committee to Review Representative Town Government