Town of Phippsburg 2012 Annual Report

Insurances
2012 ANNUAL REPORT
The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions; injures to employees; and natural disasters.
The Town has Property/Liability insurance and Workers Compensation Insurance through
Maine Municipal Association. The Town also carries Volunteer Accident Insurance for volunteer
Board/Committee/Commission members through Maine Municipal Association (with the
carrier being Hartford Life and Accident Insurance Company) as well as Disability Insurance
for Firefighters through Maine Municipal Association (with the carrier being Hartford Life and
Accident Insurance Company). The Tax Collector/Treasurer and Deputy Tax Collector/
Treasurer are bonded through Maine Municipal Association.
There were no new claims in any insurance category for 2012. All prior claims have been
settled. Although Health Insurance benefits were offered to full time Municipal employees no
one chose to participate.
FUTURE ECONOMIC FACTORS
For FY 2013 - A change in the RSU #1 cost share formula for the upcoming fiscal year
will result in an increase from the projected $2,680,569 to $2,994,406 which will result
in an increase of $313,837 (.52 increase in mil) in the projected cost. This is an increase
of $268,012 over last year’s cost share of $2,726,395.
For FY 2013 - A 6.1% increase in the amount to be raised for Phippsburg’s share of the
County Tax (from $1,018,298 to $1,080,370 for an increase of $62,072).
For FY 2013 - A 8.8% decrease in the amount to be raised for the Municipal Budget
(from $1,550,189 to $1,413,477 for a decrease of $136,712.
For FY 2013 - $731,000 (this year it was $650,000) will be appropriated from Surplus
to reduce taxes in order to help offset the RSU #1 and County cost share increases.
For FY 2013 - A mistake in the withholding of payroll taxes from CY 2008 forward will
result in $40,000 being appropriated from surplus to cover amounts due, interest and
penalties.
In FY 2013 we expect school subsidy and revenue sharing to decrease.
For FY 2013 - Due to the poor economy we expect to see: (1) a minimal increase in our
FY 2012 - FY 2013 property valuations due to new buildings and property splits; (2)
low interest rates on our investments; (3) no increase in income from excise taxes,
which is the second largest revenue besides property taxes.
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REQUESTS FOR INFORMATION
This Management Discussion and Analysis Report is designed to provide a general overview
of the Town of Phippsburg’s finances. Questions concerning any of the information
should be addressed to the Town Administrator or Selectmen.