2. 2008 Total Tax Collections $125,663,056

3. 2009 Budget Headlines State Aid allocation has significantly decreased again in the amount of $315,928. Total salaries & wages increase 1.27%, which includes all increases due to collective bargaining units. Health Insurance costs decrease by.87% Municipal budget is below the allowable 4% Levy Cap imposed by the State. State allows for a 6.8% increase in the tax levy and the 2009 tax levy is proposed at 6.12%. The net effect for each resident is a 5.5% increase due to the increase in ratables. In January 2008 the Town used it entire available surplus of $3,785,000 to balance its budget. Due to a decline in excess revenue only $2,738,455 was generated back for a final beginning balance in 2009 of $2,848,351. In 2009, Town will again use its entire available fund balance, $2,700,000 to fund the budget, and use an additional $2,123,100 from, the sale of assets fund balance to fund the budget. Without this additional fund balance the tax levy increase would be 16%.

4. 2009 Municipal Budget - Expense Side Departmental Operating Budgets down.61%  - $18,825 Salaries Budget up 1.27%  + $216,630 Debt Service up 5.2%  + $74,600 Statutory/Required Expenditures up 10.14%  + $1,454,551 Reserve for Uncollected Taxes up 2.63%  + $50,000

6. Did You Know… The Municipal Budget includes appropriations for: Street Lighting$335,000 (+$36,000) Public Fire Hydrants$507,400 (+$32,400) Senior Transportation Services$102,200 ($0) School Crossing Guards$485,000 (+$15,000) Reserve for Uncollected Taxes$1,950,000 (+$50,000) Leaf Collection & Disposal$295,000 (+$5,000) Curbside Recycling$222,000 (+$35,000)

7. Revenue Sources - Property Taxes (+$1,350,668) - State Aid (-$315,928) - Miscellaneous Revenue (-$275,000) - Surplus (+$606,504) 2009 Municipal Budget - Revenue Side

8. YearState Aid 2005$4,484,903 2006 $4,484,903 2007$4,569,580 2008$4,330,724 2009$4,014,796 At a 2.5% increase per year since 2005, State Aid would be more than $5,000,000 2009 State Aid Analysis - Revenue Side

10. Did You Know… 2009 Anticipated Revenue Sources include: Municipal Court Fines and Fees$784,000 (+$109,000) Parking Permits, Meters & Paystations$1,662,000 (-$63,000) Building Department Fees$600,000 (-$150,000) Interest on Income & Investments$215,000 (-$385,000) State Aid$4,048,937 (-$315,928) Delinquent Taxes$1,400,000 (+300,000) Available Surplus$2,700,000 (-$1,085,000) Sale of Assets Surplus$2,123,100 (+$1,691,504)

11. 2009 Surplus (a.k.a. Fund Balance) Surplus is considered to represent cash and may be utilized as a revenue item in the budget to support appropriations. Surplus results from the process of closing the operations account at the end of the fiscal year and is generated either by excess of revenue over what was anticipated in the budget or lesser expenditures than were appropriated in the budget. The net result of the two determines what amount of surplus will be available at the beginning of the next fiscal year. 2009 available surplus is $1,085,000 less than was appropriated in 2008.

12. 2009 Surplus (a.k.a. Fund Balance) In addition to the surplus account the Town has maintained the sale of assets fund balance which has been a strategic surplus account. In 2009, $2,123,100 will be appropriated from the sale of assets fund balance to fill the void from the loss in revenues and to meet the new mandated 4% tax levy cap. The sale of assets account is again a critical factor for the Town in managing the revenue side of the budget within the State imposed 4% mandated tax levy. Total Surplus Snapshot – January 1 200820092010 Surplus$3,894,896$2,848,351$2,500,000* Sale of Assets$3,848,407$3,416,811$1,293,711 Total$7,743,303$6,265,163$3,793,711 *estimate

13. 2009 Municipal Tax Calculation Total Appropriations$39,654,044 minus Anticipated Revenues$16,229,239 equals Local Purpose Tax$23,424,805 (4% Cap +) divided by Total Assessed Value$1,895,767 equals Local Tax Rate1.236 per $100 assessed value Avg. assessed home in 2009 = $184,600 Municipal budget = $10.58/month increase

14. Continued Examination … Continued examination of revenue sources with anticipated increases in various fines and fees in addition to implementing new fees where appropriate. Continued examination of all expense items with anticipated reductions in programs, services and employees to deliver a balanced budget in 2010. Continued examination and management of debt service.

15. 2010 Municipal Budget Challenges Union Contract increases Additional Sewer Assessments Increases in Utilities Additional increase in Pension Contributions Continuation of Services (Leaf Collection, Snow Removal, Recycling, Public Safety Services, Conservation Center, Infrastructure Improvements, etc…) Continued Loss of State Aid, Surplus and Various Revenues to Offset Mandated/Required Expenses