1. GFOAZ Conference Public & Budget Session Prepared by: Julie A. Ghetti, MPA, CPA August 12, 2011

2. Adopted Annual Budget for FY2012 = $38.3M  General Fund = $12.6M Population = 22,489 Authorized FTE’s for FY2011/12 = 59 (down from 88 in FY08 Services Provided by 7 Departments:  Police and Fire/EMS (contracted)  Recreation, Parks, Community Center  Public Works, Streets, Code Enforcement, Building Safety  Administration, Municipal Court, Town Council August 12, 2011

3. Local Economy – lack of commercial property Lack of primary property tax Dependence upon sales tax and shared revenues Legislative 2010 census and growth of surrounding communities August 12, 2011

4. 2010 census population showed 8.2% drop from 2005 census 54 of 91 communities grew in population, some as much as 173% Amount needed to bring budget back in balance is $513,000 in the General Fund and $100,000 in the HURF fund August 12, 2011

5. Proposed solutions must be aligned with the following three principles: 1.Be permanent and sustainable  There are likely to be more declines in the future due to legislative action, increased population in other communities  The Town has to adjust to the new fiscal reality 2.Preserve organizational integrity  The ability to perpetually provide the high level of service that the citizens have come to expect 3.Be equitable  Does not rely on one source or citizens group  Spreads the burden among various publics August 12, 2011

6. Increase revenues Decrease expenditures August 12, 2011

7. Estimated Annual AmountComments Sales tax on telecommunications from 2.6% to 3.1% $275,000Does not require Sales tax on telecommunications to 3.6%$550,000vote of the Sales tax on telecommunications to 4.0%$750,000citizens Water franchise fee (5%)$375,000Requires vote of the citizens – n/a until 2013 Primary property tax ($0.50 per $100/AV)$2,225,000Requires vote of the citizens – n/a until 2013

8. Estimated Annual SavingsComments Staff pay cuts (10%)$310,000Not sustainable – 25% reduction since 2009 Staff furloughs$115,000Not sustainable Eliminate programs$120,000Reduces organization integrity Reduce community contracts by another 20% $60,750Reduces organization integrity Utilize Rainy Day Fund$515,000Temporary solution Eliminate funding for Vehicle Replacement Fund $140,000Not sustainable Restructure debt payment for Community Center $193,500Potential shortfall in MPC debt service fund in FY14 Reduce contracts: Law Enforcement from 3.8 to 3.4 beats $215,500Eliminates 2 deputies, 1 detective, 1 sergeant August 12, 2011

9. Reduced Town contribution to community contracts Restructured annual debt payment for MPC bonds Utilized fund balance to pay off MPC bonds for Town Hall August 12, 2011

10. Revenue reduction = $2.1M over the past three years Projection into the future shows $2.1M will not return $6.6M $4.5M

11. August 12, 2011 JANUARY 2011 Balanced Budget $12.6M MARCH 2011 Budget Gap $513K $12.1M

12. August 12, 2011

16. Assumes new revenue and no increase in level of service Assumes no increase in revenues - -

17. No central public information office to disseminate information New laws affecting fee schedule Lack of public involvement August 12, 2011

18. Makeup of Executive Budget Committee – new proposals came forward Coordination of goals with Strategic Plan Involvement with Boards and Commissions Expanded use of volunteers Use of charts and graphs to avoid more cuts August 12, 2011

19. Two public budget open houses Updated draft budgets on web Televised three budget work study sessions Replayed budget work study sessions through the month of July August 12, 2011