2009 Annual Report.pdf - Town of Milton

These are unprecedented times for all of us. Normally any contingent
budget presented would be sufficient to carry the Town with level or close to
level service budgets for two fiscal years beyond the current budget year without
the need for additional overrides. We cannot make that statement this year
with any certainty. First as I will explain later the contingent budget that we
have recommended does not provide level services it simply restores some of
the services that the Town would lose under the balanced budget to allow us to
get through FY10 without tremendous pain. Second, all predictions indicate
that the fiscal condition of the State Government will worsen in FY11 causing
more trickle down hardship to cities and towns via lost revenues. The contingent
budget if adopted for FY10 will help maintain some services into FY11.
However we are currently anticipating some reductions in services in the FY11
budget. Reductions from the non-contingent FY10 budget will be devastating
in FY11. We believe that reductions in FY11 from the contingent budget will
still allow the Town to operate effectively.
I The Town’s FY10 Budget
As has been the case for many years, the growth in requested expenditures
continues to outpace the growth in revenue. A summary of the Town’s projected
FY10 revenue, recommended expenditures and current financial issues as well
as a description of the budget process and the impacts of both budgets follows:
A. Projected Revenue
The table inside the front cover of the Warrant itemizes revenue for FY09
and FY10. The primary sources of the Town’s revenue are property taxes, local
receipts, State aid and available funds.
Property taxes may be increased by a maximum of 2.5% each year. The
amount of the increase from FY09 to FY10 is $1,294,729. New growth is added
to this amount. Because there is little room for further development in Milton,
new growth is not a significant amount. It is expected to be approximately
$330,060, approximately $250,000 less than FY09. Therefore, revenue from
property taxes is projected to increase by $1,624,789 or 3.14%, next year.
Local receipts include water and sewer revenue and other departmental income.
We anticipate decreases in local receipts including motor vehicle excise,
penalties and interest and licenses and permits fees. Decreases are
budgeted in water and sewer receipts. However, water and sewer revenue is expected
to cover all expenses relating to the provision of water and sewer services
to consumers in FY10.
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