1. Overview of Dover Town Operating Budget Fiscal Year 2019
Thank you for coming. On behalf of the Warrant Committee, I am going to give an overview of this year’s Operating Budget. The details are all to be in the Blue Book
Proposed Budget as of March 19, 2018

2. Overview
Operating Budget (Article 4)
Free Cash
Annual Town Meeting

3. FY 2019 Budget Summary proposed as of March 19, 2018
FY19 Article 4 (Operating Budget) $37,706,968 vs. $36,874,166 for FY18 Increase of $832,802 or 2.3% FY19 Total Expenditures $40,063,033 vs. $39,024,233 for FY18 Increase of $1,038,800 or 2.7%

4. FY 2019 Budget Summary proposed as of March 19, 2018
FY19 Total Revenues (excluding use of Free Cash) $38,713,037 vs. $37,711,671 for FY18 Increase of $1,001,366 or 2.7% FY19 use of Free Cash (* - minimum amount to balance budget) $1,349,996 vs. $2,913,013 for FY18 Decrease of $1,563,017 or -53.7%

5. FY 2019 Budget Summary Large Changes from FY2018 Expenditures
Increases
Schools $319k (+1.9%)
Dover’s Regional Schools Operating +$239k (+2.1%)
Dover School Operating $80k (+0.8%)
Group Health Insurance $235k (+9.1%)
Other Insurance $7k (+4.1%)
Protection of Persons/Property +$109k (+3.4%)
Police $54k (+2.7%)
Fire $47k (+8.9%)
Norfolk County Retirement +$115k (+9.5%)
Conservation Committee Trail Maintenance +$20k (+20%)
Town Services +$11k (+100%)

6. FY 2019 Budget Summary Large Changes from FY2018 Expenditures
FY19 Article 4 (contd.)
and
Decreases
Solid Waste Disposal $31k (-7.6%)
The above increases and decrease accounts for $785k increase of the overall $833k increase of the Article 4 budget (or 94.2%).

7. FY 2019 Budget Summary Large Changes from FY2018 Expenditures
FY19 Capital Items (Article 5) + Special Articles
Article $145,922 (-35.7%)
Special Articles +$375,850 (+148.8%)
Special Articles – Other -$75,000 (-11.1%)
Special Articles and Special Articles -Other include replacement of the boilers at Caryl Community Center (Article 11), a hydrology study (Article 12), and a Conservation Commission Fund Supplement (Article 16), among others.
Other improvements at Caryl Center proposed in Article 15.

8. FY2019 Budget Components Total $40.1 M
update
92% of the expenses fall under Article 4 of the Warrant
Operating Budget = day-to-day
Debt service at 6.0%
Special Articles and Capital Items change year to year (this year it’s 2.6%
Snow & Ice budgeting is [doubly difficult: weather, state law. Usually in deficit; the amount in Article 4 is minimum expected; the deficit is funded in arrears]. This year The Budget for the Snow and Ice Deficit is $300,000
Reserve Fund is our contingency for unexpected expenses of $250,000 that arise during the year.
Misc includes special articles-other, state chrgs- cherry sheet, additions to overlay and recap appropriations
10 Prop. Evaluation 40,000
13 Conservation Trust 25,000
15 D-S Reg/Cap Improv 171,455
20 Supplemental Approp to Art. 4 44,216
Subtotal 280,671
7 Police Accum Sick/Buyback Leave 10,000
TOTAL: 290,671
Total $40.1 M
+2.7%

9. FY19 Article 4 Spending by Category
“Debt Service” includes Dover’s share of the Regional Schools’ debt
The schools are the lion’s share: ~58% of art 4
General Government is mostly Town House functions and routine building maintenance.
Debt and Insurance & Pensions are non-discretionary
Protective Services are Police, Fire, Ambulance, and Emergency Management
Other is Parks an Rec, COA, Cemetery, Library
Total $37.7 M (+2.3%)

10. FY19 Estimated Revenue Revenue is difficult to predict
Some of the tax levy is dedicated to debt service, by vote of Town Meeting. Allows us to exclude from Prop 2½.
Local Receipts are fees paid for town services not covered by revolving funds. Example: excises, fees large and small
State = aid (unpredictable) + SBA reimbursement (steady)
New Growth = assessors’ estimate >tax base.
Total $40.1M (-1.4%)

11. * - Minimum Amount Use of Free Cash to Balance
Budget Gap FY19
In recent history, the Warrant Committee has recommended at ATM this amount to close the gap between expected expenditures and expected revenues. As in previous years we consider the recent level of free cash we have, the towns finances and predicted financial needs, uses and expectations over the near, medium and and longer terms (to the extent we can), the town’s credit rating, tax rates and other factors in making a recommendation for the amount of free cash to use. This year the Warrant Committee is considering alternatives which would include the use of additional free cash to pay for approved expenses and/or to “lower the tax rate.” We will have a recommendation at ATM.
* - Minimum Amount Use of Free Cash to Balance

12. Free Cash
The Warrant Committee is reviewing the level of Free Cash as we do every year.
At Town Meeting on May 7, the Warrant Committee expects to present a recommendation regarding the use of Free Cash.

13. Free Cash What is Free Cash?
Free cash is a revenue source that results from the calculation, as of July 1, of a community's remaining, unrestricted funds from its operations of the previous fiscal year based on the balance sheet as of June 30.
It typically includes actual receipts in excess of revenue estimates and unspent amounts in departmental budget line items for the year just ended (“turnbacks”) plus unexpended free cash from the previous year.
- MA DLS, Department of Revenue, February 2016
Free Cash as of July 1, $7,913,093
Free Cash as of July 1, $8,139,482
Decrease $226,389 (-2.8%)
Last year at town meeting the town voted to transfer $2,913,013 from Free Cash to be used to reduce the tax rate for Fiscal Year 2018.

14. Annual Town Meeting May 7, 2018
Blue Books – the Warrant Committee’s report and recommendations - will be sent to households ahead of Town meeting.
The Annual Town Meeting will be held Monday, May 7, 2018 at 7:00 PM in the Alan Mudge Auditorium in Dover-Sherborn Regional High School.