The select board, at its February 7 hearing, accepted the new audit
figures and passed a final proposed 2011 budget of $1,654,729. The
surplus does not impact the proposed budget that will come before voters
at Town Meeting on March 1, but it could result in a lower town tax
rate when that rate is set this summer, according to Town Administrator
Valerie Capels.
"The audited figures we received show an unexpected $160,000 surplus and
the budget last month showed a surplus in the area of $96,000. We
actually expected that to go down as more December bills/payouts were
factored in," Capels said.
Town Auditor Bill Yacavoni reported to the select board that the surplus is a result of three factors.
In 2010, the town experienced lower operating and capital expenses than
expected - saving $30,491. The town received higher revenues than
expected in 2010, by $47,736 - including a zoning violation settlement
of $35,000.
Additionally the town's 2010 tax revenues were $32,338 higher than
projected. That particular surplus consists of $9,756 in administrative
fees that the town gets to keep for Act 60 related expenses, $5,837
related to a local agreement portion of the tax bill and payment of
delinquent taxes.
The select board, at its February 7 meeting, discussed whether to
recalculate expenses for 2011 based on the surplus or whether to carry
the surplus forward into 2011. Traditional and acceptable accounting
practices for towns allow such carry forwards.
Sometimes towns opt to use surpluses to decrease the next year's tax
rate or select boards may opt to use the surplus for capital reserve
items or to hold as a surplus to buffer taxpayers from tax rate spikes
caused by emergencies or equipment failures.
Waitsfield's current capital budget includes $40,000 be set aside for
the heavy equipment reserve truck - earmarked for a truck. Another
$20,000 will go into that fund as a general reserve contribution. Last
year, voters approved $55,000 towards a new truck and $15,000 for the
general fund. The capital budget program also calls for $18,000 for a
fire department reserve fund - earmarked for a new truck with another
$25,000 going to a fire department general reserve fund. Last year
voters approved $15,000 and $6,000, respectively, for those funds.
This year the town proposed that $5,000 be set aside for the town's
restroom recreation/conservation fund, down from $10,000 last year.
After earmarking $2,500 for the Joslin Library Repair/Reserve fund last
year, the town is not proposing a contribution to that fund this year.
After adding $5,000 to the town's Route 100 transportation path reserve
fund last year, the board is proposing $20,000 this year.
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