Untitled - Town of Windham

FINANCE DEPARTMENTThe full Statement of Bonded Indebtedness for 2012 is as follows:Original Issue: $391,135 / October 2011 / Northway Bank / Interest Rate of 1.46%Purpose: Purchase Fire EngineDate Principal Interest Payment Balance391,135.002012 10/30/12 195,567.50 5,710.57 201,278.07 195,567.502013 10/30/13 195,567.50 2,855.29 198,422.79 0.00$391,135.00 $8,565.86 $399,700.86Original Issue: $100,000 / June 2003 / TD Bank / Interest Rate of 4.00%Purpose: Searles Building RenovationsDate Principal Interest Payment Balance22,800.002012 6/3/12 11,200.00 912.00 12,112.00 11,600.002013 6/3/13 11,600.00 464.00 12,064.00 0.00$22,800.00 $1,376.00 $24,176.00Additionally, the Town entered into a $2,000,000 Tax Anticipation note in 2012, which matured onDecember 28, 2012. This note was structured as a line of credit and was available to assist the Town with itscash flow needs, however, working cooperatively with the Windham School District, the Town was able tomeet its cash flow requirements without drawing on this line of credit during 2012.SCHOOL DISTRICT PAYMENTSPayments to the Windham School District for 2012 are summarized as follows:Due to School District as of December 31, 2011 $14,892,861Total School District Funds Raised through 2012 Tax Rate $37,396,744Total Transferred Out to School District during 2012 ($36,392,861)Balance due to School District as of December 31, 2012 $15,896,744FUND BALANCEEach year, the Board discusses the appropriate level of fund balance to protect the Town from unforeseenfinancial circumstances. As shown in the Balance Sheet later in this report, fund balance generally representsthe difference between the Town’s assets and liabilities, at a given point in time. Upon completion of theTown’s annual financial audit, any variances in budgeted expenditures and revenues throughout the yearbecome part of the Town’s “budgetary basis” fund balance. The following chart shows the budgetary basisfund balance available for tax rate setting over the last several years, since the Board has elected to maintain abalance of $300,000. While the NH Department of Revenue Administration recommends a much higherremaining fund balance, the Board has generally believed that with proper planning and oversight of Townfinances, the Town’s balance is sufficient. In 2012, the Board codified this level of minimum fund balance byadopting a formal Fund Balance Policy.End of year budgetary basis fund balance(per annual audited financial statements): 2011 2010 2009 2008Available for tax rate setting $902,311 $734,689 $580,361 $638,615Amount used to reduce next year’s tax rate $602,311 $434,689 $280,361 $338,615Remainder $300,000 $300,000 $300,000 $300,0002012 ANNUAL REPORTS 68 TOWN OF WINDHAM, NH