2007 Budget Headlines•Two Full Time positions reduced to Part Time

•One Part time position eliminated

•Effective collective bargaining negotiations – Total Salaries increase less than 2%

•Effective Health Insurance negotiations along with negotiated plan design changes yield increase well below trends (4.9%)

•State Aid increases for the first time since 2004. The modest $84,686 increase is offset by approximately $60,000 the Town will pay due to the State imposed 7% sales tax on parking revenues.

•Average assessed home in Westfield in 2007 equals $181,500. Municipal budget represents an increase of $9.91/month on average assessed home.

2007 Budget Challenges

•Additional Pension Contributions = +$556,980 (62.8%)

•Additional Assessment from RVSA = +$221,300 (11.1%)

•Increases in Fuel and Utility Costs = +$45,000 (7.2%)

•Increase in Group Health Insurance = +$175,000 (4.9%)

•Salary Increases = +$313,714 (1.9%)

•Public Library Increase = +$258,842 (12.4%)

•Debt Service Increase = +$191,600 (14.3%)

•Animal Control Services = +$25,000 (71.4%)

•Leaf, Brush, Grass & Tree Service Costs = +106,000 (50.2%)

•Reserve for Uncollected Taxes = +$50,000 (2.8%)

2006 Total Tax Collections $112,634,071.23

County Taxes19.89%

$22,404,101.84

Town16.88%

$19,019,139.61

Board of Education62.36%

$70,220,689.00

County Open Space Tax.87%

$990,140.78

2007 Appropriation Breakdown2007 Municipal Budget = $36,020,729

Salary & Wages 45.8%

$16,489,515

Capital Improvement Fund 0.4%

$145,000

Statutory/Required35.4%

$12,756,542

Deferred Charges0.3%

$120,000

Reserve for Uncollected Taxes5.1%

$1,840,000

Debt Service4.3%

$1,527,500

Operating Expenses8.7%

$3,142,172

2007 Appropriations

Statutory/Required Expenditures

PERS + $113,000 (93.5%)

PFRS + $436,300 (57%)

Library + $258,842 (12.4%)

RVSA + $221,300 (11.1%)

Group Insurance + $175,000 (4.9%)

“Budget Busters”

Did You Know…

The Municipal Budget includes appropriations for:

•Street Lighting $295,000

•Public Fire Hydrants $480,600

•Senior Transportation Services $102,270

•School Crossing Guards $448,000

•Reserve for Uncollected Taxes $1,840,000

2007 Revenue Breakdown

Revenue Sources

- Property Taxes

- State Aid

- Miscellaneous Revenue

- Grants (offset by appropriations)

- Fund Balance

2007 Revenue Breakdown2007 Total Revenues = $36,020,729

Local Property Taxes56%

$20,181,953

Chapter 159/Grants.3%

$116,204

Fund Balance11%

$4,000,000

Misc. Revenue17%

$6,177,982

State Aid13%

$4,569,590

Delinquent Taxes2.7%

$975,000

Did You Know…

Anticipated Revenue Sources include:

•Municipal Court Fines and Fees $590,000

•Parking Permits, Meters & Pay Stations $1,700,000

•Building Department Fees $950,000

•Interest on Income & Investments $680,000

• State Aid $4,569,589

• Delinquent Taxes $975,000

•Fund Balance $4,000,000

Tax Calculation Formula

Total Appropriations $36,020,729

minus

Anticipated Revenues $15,838,776

equals

Local Purpose Tax $20,181,953

divided by

Total Assessed Value $1,864,139,453

equals

Local Tax Rate 1.083

per $100 assessed value

Tax Cost Comparison

2006 Average Assessed Home = $179,800

2007 Average Assessed Home = $181,500

2006 2007* Inc.

County Tax $2,271 $2,409 + $138

School Tax $6,820 $7,120 + $300Local Tax $1,847 $1,966 + $119

Total Tax $10,938 $11,495 + $557 (5.1%)

* 2007 Tax Costs Estimated

Continued Examination …

•Capital Improvement Plan

•Management of Debt Service

•Strategies to manage RVSA assessments

•Group Health Insurance premiums

•Contract Negotiations

•Shared Services

•Revenue Sources

Increases for 2008 Budget

•Additional 20% increase in Pension Contributions (PFRS 100%, PERS 80%)

•Additional Assessment from RVSA

•Increases in Fuel and Energy Costs

•Group Health & Casualty Insurance

•Union Contracts

•Continuation of Services (Leaf Collection, Snow Removal, Street Lighting, Recycling, Police & Fire Services, Conservation Center,

Infrastructure Improvements, etc…)

2007 Budget Challenges Met

•Health Insurance Costs Reduced by Effective Contract Negotiations

•Staffing Levels decreased where possible. 2 F/T positions reduced to 2 P/T positions and 1 P/T position eliminated

•Effective management of revenue sources to maintain and increase income to reduce tax burden

•Comprehensive examination of total budget producing real savings in all departments