FINANCIAL OUTLOOK

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FINANCIAL OUTLOOK FY2010 BUDGET PLANNING
JOINT MEETING OF THE TOWN COUNCIL SCHOOL
COMMITTEE

• Presented By Mark Milne, Finance Director

MARCH 5, 2009
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The Current Economy
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The Current Economy

• National
• Over 5 million people out of work
• Orders for durable goods are at a 6 year low
• New home sales are at a record low
• Auto, finance and insurance industries in turmoil
• State
• Revenue expected to decline in FY09 by over 6 or
  1 billion another 500 million in FY10
• Over 200,000 people out of work
• Real estate values have plummeted foreclosures
  on the rise
• Higher concentration of labor in higher education
  and healthcare sectors have been viewed as
  bulwarks against recessions

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The Current Economy

• Town Revenue
• FY09 property tax collections are down 1 from
  FY08 levels 800,000
• FY09 motor vehicle excise tax commitments are
  down 5 250,000 from FY08 levels
• Building permit revenue is down 30 120,000
• Investment income is down 25 200,000
• FY09 state aid was reduced 255,000

Revenue contraction at all levels!
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FY09 General Fund Revenue Structure
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New Property Tax Growth

• New growth for FY08 of 1.2 million consisted of
  18 months of new growth.
• Projection for FY10 is 600,000 declining to
  500,000 in later years.
• 600,000 of new property tax growth 98
  million in new value based on an FY09 single tax
  rate of 6.12

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Excise Taxes (Stated in Thousands)

• Last 10 Years

• Next 10 Years

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Net General Fund Local Aid(Stated in Thousands)

• Last 10 Years

• Next 10 Years

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Investment Income

• Large bond issues in FY07 FY08 temporarily
  increased levels of invested cash.
• Quarterly tax billing has improved cash flow.
• FY09 investment rates are declining.

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FY10 Revenue Allocation
These numbers represent the targeted FY10
operating budgets using no savings. Revenue
allocations are based on the House 1 budget.
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Fixed Costs Detail
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Future Revenue Allocations
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General Fund Capital Investment
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Reserves
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General Fund Reserves Used Generated
Savings Account
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Good News

• Town maintains AAA rating with SP and AA1 with
  Moodys
• Borrowing rates are at all-time lows
• Home prices have fallen making them more
  affordable and borrowing rates remain low
• Credit markets are loosening
• Fuel prices have dropped utilities could follow
• Anticipated grant funds for clean renewable
  energy, economic development, financial stability
• Construction costs decline as competition grows
• Opportunity to reflect on what is important to us
  as a community