TOWN TREASURER: BUDGET OPTION 1 IS RIGHT FOR THE TOWN

“Millions” of dollars in reserves and annual surpluses in the “six” figures –

Yes the Town has $2.524 million in the unreserved fund balance at the end of FY2014 – and yes the town has had “six-figure” annual surpluses at the end of the last few fiscal years – but let’s put that into perspective.

· That fund balance does not reflect the $600K reserve withdrawal for FY2015

· While our charter requires a minimum unreserved fund balance of 3%, our actual unreserved fund balance figures at a modest 5.07%.

· Based on the most recent quarterly report to the Office of Municipal Affairs, our projected unreserved fund balance will drop to $1.8 million, just .85% above the minimum requirement

What follows is a review and analysis of each of the “Six-Figure” surpluses that the town realized in the last three fiscal years.

In FY2014, we had 3 significant UNANTICIPATEDitems – Pension Aid from the State ($74,510), we realized interest from a few very old Surety Bonds ($53,281) and Savings from Refinancing the TIF Bond ($95,828). These 3 items totaled $223,619 or 91.3% of the $245,038 Actual Surplus in FY2014.

In FY2013,we had 4 significant UNANTICIPATEDitems – The Sale of Ranger & Nonquit schools ($101,700), an increase in Ambulance billing ($75,000), an increase in State Aid ($39,534) and a reconcilation of outstanding items ($111,868). These 4 items totaled $328,102 – more than the $300,164 Actual Surplus for FY2013.

In FY2012, we had 4 significant UNANTICIPATEDitems – Revenue from Debt Service Reserve Fund ($12,055), Recycling Revenue ($38,017), an increase in tax interest ($60,791), Savings in Fire Dept. personnel & overtime ($84,751) and Savings from Police Dept. Deputy Chief ($34,859). These 4 items totaled $230,473 – more than the $218,006 Actual Surplus for FY2012.

If you take a moment and review the Actual Surplus for each year and the relatedUNANTICIPATEDitems for that year, you will note that HAD THOSE ITEMS NOToccurred – the bottom line would have been much different – this is “Balanced Budgeting At Its’ Best.” Each year, the surplus was less than 1% of the entire budget, a significantly difficult task, considering the size & complexity of our budget.

I believe that a budget for our Town, vetted by all the Department Heads, the Town Administrator, the Town Clerk, the Town Council and the Budget Committee deserves your support and your vote. Budget Option #1 is what is right for the Town!

Denise Saurette
Tiverton Treasurer