Fiscal Year

Revenues and Expenses  Recurring Revenues Fund Recurring Expenses Property Taxes State Aid Estimated Local Receipts Other Available Funds (Special Revenue and Trust)  One-Time Revenues Fund One-Time Expenses Free Cash Reserves 2

Property Taxes  2.5% Levy Capacity  Estimated New Growth $600,000 for the last 5 years  Utilized Debt Drop-off Capacity Principal and Interest due on $31.5m ($2m for FY 17) for Capital Projects Short Term Debt $600,000 3

Estimated Local Receipts  Estimated Local Receipts MV Excise Hotel/Motel and Meals ○ 100% of Meals Tax allocated to Capital and General Stabilization Departmental Revenue ○ Water and Sewer ○ Beach ○ Licenses and Permits ○ Ambulance ○ Other 4

Estimated Local Receipts  FY 2017 Balanced Budget on Projection of $18.25M in Estimated Local Receipts Additional water and sewer revenue to offset a budget increase for the new water filtration plant and wastewater facility expansion Additional departmental revenue to offset a budget increase for the hiring of a firefighter 5

Other Available Funds  Other Available Funds Parking Meter Embarkation Fees Wetlands and Waterways Energy Receipts Golf Revenues Community Preservation Bond Premiums (Increase due to short term borrowing) 6

State Aid  Chapter 70  Unrestricted Government Aid  Reimbursements School Choice Charter School Veterans Benefits and Property Tax Exemptions ○ Increase in veterans benefits reimbursements due to an increase in benefits payments 7

Sources of Revenue 8

FY 17 Operating Budget 9

Appropriations  Operating Budget Debt – within the debt drop-off window ○ First year of principal and interest due on $31.5M ○ $600,000 Pay-off on Short Term Debt Education Health Insurance ○ 6.5% Increase (may trend higher) Retirement ○ 5% increase-Retirement Board voted to shorten the schedule for unfunded liability by five years, incorporated in FY 16 Insurance ○ Worker’s Compensation ○ Property and Liability 10

Appropriations (cont.)  Operating Budget cont. Contractual Salary Increases ○ Separate Town Meeting Warrant Article 2% Cost of Living Planned and Anticipated Consistent with Established Wage Pattern Budget Increases 2017 ○ Trash and Recycling Contract ○ Staff and Operating Expense Increases due to the new water Treatment Plant and Wastewater Treatment Facility Expansion ○ Hire an Additional Firefighter Effective January 1, 2017 ○ Funding to Contribute to Annual Community Fireworks Event 11

New Initiative  Consolidated Communications Department Moved budgeted expenses from police and fire to a new “consolidated communications department” budget  Summer Patrol Falmouth Heights  Funding for the Annual Community Fireworks Event 12

Funding Reserves  Over $1,000,000 allocated to Capital Stabilization  Continuing to Fund Stabilization Fund allocation at $440,000  Continuing to Fund OPEB Trust fund at $100,000  Continuing to Fund Workers Compensation Trust Fund in the amount of $100,000 13

Other non-voted Appropriations  State Assessments  Allowance for Abatements 14

Conclusion  Fixed Cost Increases  Budget Allows for Flexibility  Continue Implementation and Further Exploration of Departmental Reorganization and Cost Saving Measures 15