FINANCE COMMITTEE UPDATE MEMBERS: Robert Fanning, Chair Michael White, Vice-Chair Peter Bernardin Geoffrey Buswick Susan Fowler Carl Noblett

Budget Objectives & Policies Fund Recurring Expenses (Operating Budget) from Recurring Revenues Fund Capital and Other Warrant Articles from Free Cash (One-Time Expenses from One- Time Sources) Maintain Reserve Balances Unused Levy Capacity Free Cash Stabilization Fund Maintain Low Per Capita Debt Ratios

Free Cash Status FY13 Free CashFY12 Free Cash Free Cash Certified3,031,2123,042,619 Less: Holdback policy1,307,7471,277,635 Available for Appropriation1,723,4651,764,984 Approp. Special Town Meeting October422,800120,400 Available Annual Town Meeting1,300,6651,644,584 Article 3 Personnel Bd. Salary Adj20,651 Article 6 OPEB Trust Fund250,000 Article 11 Lib. remediate microbial175,000 Article 12 Lib interim repairs137,500 Article 13 Lib. office renovations50,000 Article 15 Site Assessment Spofford25,000 Article 18 Parks Program init. fund.3,000 Article 20 Capital Purchases Town159,631 Article 20 Capital Purchases School291,634 Article 22 Retirement Bonus5,125 Total1,117,541726,105 Available Free Cash unspent183,124918,479

Budget 2014 FY13 Adopted FY14 Proposed Percentage Change Revenues: Property Taxes % Property Taxes (excluded debt) % State Aid % Motor Vehicle Excise % Local Receipts % Total Revenue % Expenses Committed Expenses % Town Departmental % Elementary School % Masco Assessment % Debt Service % Total Expenses %

Three Year Forecast FY13FY14FY15FY16 Property Taxes22,138,60922,904,47523,652,08724,418,389 Property Taxes (excluded debt)1,349,0291,199,5631,312,9041,149,451 State Aid Bldg Assistance170,344131,379 State Aid Other2,175,3432,166,7582,188,4262,210,310 Local Receipts1,699,3131,766,9401,802,2791,838,324 Total Revenue27,532,63828,169,11529,087,07429,747,853 Committed Expenses580,294681,747709,017744,468 Town7,933,5668,313,8338,563,2488,820,145 Elementary School9,536,7919,822,50710,117,18210,420,698 Masconomet7,955,5578,014,1478,254,5718,502,209 Debt Service1,526,4301,336,8821,444,2831,280,830 Total Expenses27,532,63828,169,11629,088,30129,768,349 Budget Gap00-1,227-20,496

Accuracy of Projections Annual Town Meeting 2011 Projection 2013 Actual 2013 Revenue27,507,12427,532,638 Expense27,492,43927,532,638 Surplus/Deficit14,6850

Summary The FY14 Budget presented adheres to all Town Policies Capital Project vetting process has been strengthened and is working but needs to be improved Debt Service level is favorable No proposed override for FY14 OPEB funding continues to be a challenge Boxford remains prepared for the expected difficult challenges in the years ahead