1998-TOWN MEETING RECORDS - Laserfiche WebLink

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WARRANT ANALYSIS TOWN OF MASHPEE FINANCE COMMITTEE SPECIAL AND ANNUAL TOWN MEETING MONDAY,MAY 4,1998,AT 7.3o P.M. MASHPEE MIDDLE SCHOOL This is the Finance Committee's recommendation to the Town's citizens on the Town Meeting Articles, as required under the local bylaws. The Finance Committee's mandate is to act as the fiscal watchdog of the community and, as such, has made serious inquiry and analysis of the various articles and our recommendations are found below. The guiding policy of the Finance Committee is to ensure that the Town lives within Proposition 2-14. Most Departments have successfully submitted budgets which have stayed within this guideline. Those Departments whose proposed budgets exceed the Town's "Proposition 2-14 Policy"must be required by the voters of our Town to exercise fiscal responsibility and scrupulously justify any excess increase. For the first time in many years, the Finance Committee, the Board of Selectmen, and all Town Departments have achieved consensus on the Omnibus budget. Such agreement does not, however,mean that the Town is not facing a severe financial challenge. In order to balance this year's budget, the Town will have to transfer approximately$750,000.00 from the Stabilization Fund(a non-recurring revenue source) and bank on the hope of approximately $750,000.00 in increased state aid for the schools. Even with the use of these funds, taxes will rise on the order of 1301o, or approaching$2.00 per thousand dollars of current assessed value. This means that a family with a home assessed at$150,000.00 will have a permanent increase of$300.00 in taxes. The current tax rate is$14.35 per thousand dollars. I Further, the Town faces an even more extraordinary challenge in FY 2000 when the final grade of the high school will come"on line"and require substantial additional funds. The problem is basic.In FY 1999, we must"borrow"$750,000.00 from our Stabilization Fund to pay for the Town's operating expenses due to the fact thatgrowth in Town revenues has for the past several years been insufficient to match ourgrowth in spending. Because this "borrowing"has virtually depleted our savings,maintenance of FY 1999 spending levels in FY 2000 will require that this$750,000.00 be raised through increased taxes. In addition,prudent fiscal management mandates that we replenish the Stabilization Fund to provide for future emergencies. Therefore, an additional$750,000.00 must be identified for appropriation into Stabilization to keep our town fiscally sound. Fortunately,substantial one time tax collections in the current fiscal year will be available to revitalize the Stabilization Fund or reduce the effect on these foreseen tax increases;they should not, however, be considered for use in funding operational budgets. Given these considerations and with budgetary increases factored in,FY 2000 may require an additional 12-18% tax increase over FY 1999. On top of the$300 in FY 1999, the family with a home assessed at$150,000.00 will have an increase of$300-$450 in taxes in FY 2000, or as much as$700-750 in two years. Where the Finance Committee takes no position on an Article, it is because the Article has no material impact on the town's finances.