3. 2010 Municipal Budget - Appropriation Trends EXPENDITURES2007200820092010 Salaries & Wages $16,489,515 $17,007,9843.1% $17,224,6141.3% $16,196,923-6.0% Operating Expenses $ 3,142,172 $ 3,074,828-2.1% $ 3,056,002-0.6% $ 2,929,795-4.1% Statutory/Required $12,756,542 $14,344,27712.4% $15,798,82810.1% $16,415,8773.9% 5 Year Staffing Reductions: 18 F/T positions eliminated 17 P/T positions eliminated 8 F/T positions reduced to P/T

4. 2010 Municipal Budget - Overview Significantly declining revenue required the need to significantly reduce appropriations. Revenues down $2,464,004 (-15.18%) compared to 2009 Total Municipal Budget is $555,269 (-1.40%) less than 2009 Salaries & Wages down $1,027,691 (-5.97%) Operating expenses down $126,207 (-4.13%)

5. Revenue Sources - State Aid (-$941,470) -23% - Miscellaneous Revenue (-$35,374) -.59% - Surplus (-$1,690,100) -35% - Property Taxes (+$1,908,735) +8.15% 2010 Municipal Budget - Revenues

7. 2010 State Aid Analysis - Revenues FORMULA STATE AID AID PROGRAMS2007200820092010 Consolidated Municipal Property Tax Relief Act (CMPTRA)$1,671,851$1,473,690$1,161,069$529,527 Total Energey Tax Receipts Distribution$2,546,727$2,708,389$2,853,727$2,543,799 Municipal Effeciency Performance Program$126,326 Municipal Homeland Security Assistance$140,000 Municipal Property Tax Assistance$84,686 Total State Aid$4,569,590$4,182,079$4,014,796$3,073,326 -8.48%-4.00%-23.45% -$387,511-$167,283-$941,470

8. 2010 Anticipated Revenue Sources Municipal Court Fines and Fees$750,000 (-$34,000) -4.34% Parking Permits, Meters & Paystations$1,800,000 (+$138,000) +8.3% Building Department Fees$468,000 (-$132,000) -22% Interest on Income & Investments$16,000 (-$199,000) -92.5% State Aid$3,073,326 (-$941,470) -23% Delinquent Taxes$1,574,000 (+174,000) +12,4% Surplus$3,133,000 (-$1,690,100) -35%

9. 2010 Surplus Analysis 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. In addition to the surplus account the Town has maintained the sale of assets fund balance which has been a strategic surplus account. 2010 available surplus is $1,690,100 less than was appropriated in 2009. Available Surplus Snapshot – January 1 200820092010 Surplus$3,894,896$2,848,351$2,121,142 Sale of Assets$3,848,407$3,416,811$1,293,711 Total$7,743,303$6,265,163$3,414,853

10. 2010 Municipal Budget - Appropriations Salaries Budget down 5.97%  - $1,027,691 Departmental Operating Budgets down 4.13%  - $126,207 Debt Service up 6.40%  + $96,580 Statutory/Required Expenditures up 3.91%  + $617,049 Reserve for Uncollected Taxes down 0.51%  - $10,000

12. Did You Know… The Municipal Budget includes appropriations for: Street Lighting$380,000 Public Fire Hydrants$507,400 Senior Transportation Services$61,200 Reserve for Uncollected Taxes$1,940,000 Leaf Collection & Disposal$255,000 Curbside Recycling$226,000

13. 2010 Municipal Tax Calculation Total Appropriations$39,098,775 minus Anticipated Revenues$13,765,334 equals Local Purpose Tax$25,333,440 (4% Cap +) divided by Total Ratable Value$1,906,148,482 equals Local Tax Rate1.329 per $100 assessed value Avg. assessed home in 2010 = $185,100 Municipal budget = $15.08/month increase

14. 2009 Total Tax Collections $131,255,887

15. 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 personnel to deliver a balanced budget in 2011. Continued examination and management of debt service.

16. 2011 Municipal Budget Challenges Preservation of Services (Public Safety, Leaf Collection, Snow Removal, Curbside Recycling, Conservation Center, Infrastructure Improvements, etc…) Continued Reduction in Expenses Continued Loss of Revenue: State Aid Surplus Miscellaneous Revenues Potential new 2.5% Tax Levy Cap