Winchester Fiscal Budget for 2012

The Town of Winchester recently released its proposed financial plan for Fiscal Year 2012.

The town is estimating an increase of 4.3 percent in revenue from 2011 to 2012. But there is still expected to be a budget shortfall, requiring the town to use $1.48 million in free cash and on March 29 the town will vote on a $1.44 general override.

Here are some other important information in the plan. If you’d like to read the full document, click on the pdf at the right.

• It has been suggested to the town by Moody’s Investor Services that Winchester needs to start using less free cash in order to maintain its Aaa bond rating.
• The town used $2.5 million in FY ’11. The next three years the town is expecting to use: $1.44m (’12), $1.35 (’13) and $1.3 (’14).
• According to Acting Town Manager Mary Ellen Lannon: “It would be shortsighted to use more free cash in FY2012 in order to avoid expense reductions and deplete the Town’s operating reserves, placing the Town’s Aaa bond rating in jeopardy. It has been estimated that if the Town’s bond rating were to be lowered it would cost approximately $300 to $400k more in interest for the VO School Project, over the life of the bond.”

Recommended cuts without an override:

• The School Department would lose $380,000 from their proposed budget, while the municipal budget would be lowered by $341,264.
• The reduced budget would still be a three percent increase in the school budget and a 1.19 percent increase in the municipal budget from 2011 to 2012.
• Even with a reduction in budget, there will be a deficit of $1,547,578 in FY2013 and $2,535,233 in FY2014.
• The March 29 override will also go to help offset projected deficits in 2013 and 2014.

Reductions without an override

• $6K – decrease in hours in Assessors Office.
• $40K – decrease in Planning Board in Professional Services
• $67K – elimination of part-time building clerk and post-permitting position in Building Department
• $40K – Reduce funding of Management Information System (MIS)
• $19,474 – Reduction of costs at the Library
• 3,800 – Reduction at the Archival center
• $35K – Board of Health – the town will cease funding of the Winchester Substance Abuse Coalition and the Goose Program.
• $35K – Reduction of police hours. This is expected to lead to increased response times, as there will be times when only two or three one-man units will be on duty.
• $35K – Fire Department will lose some overtime hours and repairs to communication and equipment will be delayed.
• $100K – Department of Public Works (DPW) –maintenance ($10K), temporary summer help ($18K), repairs ($10K), one mechanic ($42K), Transfer Station ($10K), cemetery overtime ($5K)
• $6,945 – Reduction in Wellness program

Additions without an override

• $40K – for a ADA Transition Coordinator
• $28K – Energy Champion rebate

 Add-backs if override passes

• $10K – Planning Board
• $19,464 – Library
• $31K – Winchester Substance Abuse Coalition
• $50K - $25K each for police and fire
• $55K – Department of Public Works
• $380K – School Department