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ADMINISTRATORS EXPLAIN 2007 BUDGET
After recommending a total 2007 budget request of $11,838,333, which represents a 10.9% total increase over the 2006 Town Budget, Town Administrator Evans Juris has received numerous inquiries on how this increase came about.
The budget is comprised of four (4) parts. They are Operating Expenses, Capital Projects, Capital Reserve Funding and Sewer.
The proposed operating budget increased from $9,441,104 to $9,957,223 or 5.5%, Capital Projects increased from $187,698 to $512,584 or 173.1%, Capital Reserve Funding from $348,600 to $581,600 or 66.8%, and Sewer from $698,119 to $790,099 or 12.7%.
The Operating Budget covers all general operations of the Town.
Capital Projects and Capital Reserve Funds, which total $1,094,184, are the driving factors in the increase.
The increase in Capital Projects includes a recommendation for the purchase of a new fire engine - $325,000, a new highway truck - $73,000, shelving in the Tax Collector/Town Clerk’s vault - $23,000, and replacement of the Fire Department’s Thermal Imaging Camera - $12,000.
The Capital Reserve Funding is a program area that lay dormant for several years until being revitalized last year, upon the recommendation of the Town Administrator, Evans Juris, and Assistant Town Administrator, Debra Shackett. The purpose of the Capital Reserve Funds is to “save” over a period of time for specific future projects, so that the taxpayer isn’t impacted with major spikes in the tax rate. Projects recommended for funding through Capital Reserves are the Hoyt Road Bridge - $271,000, Ambulance Replacement - $50,000, Highway Equipment Replacement - $30,000, Police Station - $200,000, Compensated Absences - $20,000, and Emergency Building Repair - $10,000.
The Sewer Department’s budget includes two increases – one for $18,000 to replace a 1986 Van Truck and another $20,000 for a Capital Reserve Fund to assist in repairs to the system.
By re-establishing the Capital Reserve Funds and utilizing the Capital Improvement Program this year and in future years, the Town should be able to stabilize the tax rate while planning for significant future projects or purchases.
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