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Appropriations Committee charged with plugging budget gap

Date: 4/9/2012

April 9, 2012

By Chris Maza

chrism@thereminder.com

EAST LONGMEADOW — The Appropriations Committee has less than two months to figure out how to close a $536,450 budget gap prior to the Annual Town Meeting on May 21.

Appropriations Committee Chair Russ Denver explained at an April 2 public forum to discuss the preliminary fiscal year 2013 (FY13) budget that the town figures to bring in $51.3 million in funding sources in FY13, while the projected uses are estimated to be in the $51.8 million range.

Denver said a major challenge in closing the budget gap was the Appropriations Committee's decision to cut the use of free cash in half.

"For the past several years we have balanced the town of East Longmeadow's budget by using approximately $1 million of free cash," he said. "It is a goal of the Appropriations Committee to reduce that amount by $500,000."

He added that approximately $850,000 in costs related to the Oct. 29, 2011 snowstorm and a $405,000 increase in the Contributory Retirement Assessment also present added burdens to the town in FY13.

He also stressed a great deal of uncertainty about the state's contribution in the upcoming fiscal year, however, he pointed out that state aid makes up only approximately 5 percent of the town budget.

"I think the biggest unknown for Appropriations and really, for the town, is we do not know what we are going to receive for state aid this year," he said. "Our budget that we have currently before us level funds state aid. If we are successful in receiving additional state aid, it could relieve some of the pressure we have on the budget."

The town is also anticipated to use some funding to address accessibility and space limitations at town hall.

"This is something the committee is committed to addressing this year," Denver said.

The news isn't all bleak, however, he said.

Due to retiree and employee health benefit changes, the town is projected to save $281,000 in FY13. Energy conservation measures implemented by the Department of Public Works, as well as the use of the MINUS financial accounting system have improved efficiency and bond refinancing could result in more than $400,000 in savings over the next decade.

Denver also lauded Fire Chief Richard Brady for securing a $320,000 grant to offset some of the cost of the upgrade to the town-wide radio system.

Income from property taxes is anticipated to increase by more than $1 million in FY13 from $32.6 million to $33.8 million

The School Department and Police Department budgets make up the two largest portions of the budget. The schools' proposed level-service budget is anticipated to take up $26.1 million of the budget, a 2.8 percent increase from FY12.

However, a separate "needs budget" presented by Superintendent Gordon Smith represents a 4.4 percent jump with $382,583 in additional requests, including academic coaches, two full-time reading teachers, a part-time guidance secretary at Birchland Park Middle School and the creation of a second full-time assistant principal position as well as a full-time athletic director position.

The Police Department budget features a modest 1.7 percent increase from $2.5 million to $2.6 million.

While several other departmental budgets are expected to decrease, the Board of Selectmen's budget is projected to rise from $249,746 to $301,335 in FY13.

Approximately $31,600 of that increase is transferred from the Treasurer/Town Clerk's budget as the town now has a benefits administrator in Corinne Tranghese, who was responsible for the retiree and town employee benefit changes that resulted in savings.

"The Appropriations Committee endorsed a move by the Board of Selectmen to initiate a new position called a benefits administrator," Denver said. "That individual moved all of the retirees onto Medicare-eligible plans and worked very closely in the plan design changes for town employees."

Among the major changes in town-wide budgets was a $150,000 increase in the reserve fund for FY13.

"We normally have it funded at about $300,000. Those are for unexpected expenses throughout the year," Denver said. "We will finish the end of this fiscal year with no money in the reserve fund at all. We put in an additional $150,000 as a way to possibly have sufficient funding should there be new union contracts during the next fiscal year."



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