Friday, April 27, 2007
FinCom describes budget challenges
David Model chaired the April 23 Finance Committee (FinCom) public hearing on the proposed FY08 budget. (See "FinCom invites public comment on FY08 budget," Mosquito, April 20.)
In addition to inflation-driven items, two elements have contributed to Carlisle's present financial dilemma — State Aid SBAB (School Building Assistance Bureau) reimbursement for the Corey Building is coming to an end, and, because of demographics, Carlisle's share of the Concord-Carlisle High School cost is higher. In FY08 SBAB reimbursement drops from $700,900 to $137,800. In FY08 Carlisle's assessment for CCHS increases from 27.08% to 28.01%. That additional one percent amounts to a $151,000 increase.
The FinCom is proposing an override of $245,682. Further, to avoid an even larger override the FinCom is recommending free cash transfers to fund operations. Free cash consists of funds that have accumulated from past years' overages and is usually reserved for non-recurring expenses. On July 1, 2006 Free Cash was almost $1.3 million. If the FinCom recommendations are approved at Town Meeting, this is estimated to drop to $590,600 on June 30, 2007, which would be an ending balance of approximately 2.8% of the FY08 total budget.
At the levy limit, the median real estate tax bill will rise from $10,006 to $10,539 in FY08. If Town Meeting approves the free cash transfer, the recommended override, and capital exclusions for a DPW dump truck and Carlisle School security, the median tax bill would increase to $10,679 — a 6.7% increase.
© 2007 The