I am projecting a total revenue stream of $72,324,939 in Fiscal Year 2004. The bulk of this revenue will be in the form of taxation in the sum of $35,613,168 by way of using the full levy capacity of the Town, $600,000 in projected new growth and $7,153,152 in exempted tax levy to fund that portion of the debt service associated with the Floral Street School, High School Land Purchase, Open Space Land Purchase Projects, new High School Project, former High School Renovation Project and Allen property purchase. Based on use of the full levy, I project a Fiscal Year 2004 tax rate of $12.22 per thousand up from the current rate for Fiscal Year 2003 of $10.60. The tax rate increase will be moderated by any additional non tax levy funding, increased new growth, reductions in the levels of spending and changes in the assessed values of all real and personal property.

I have not included in this spending plan an expected SBAB payment for the new High School in the amount of $3,206,732. If this funding is received, the projected tax rate for Fiscal Year 2004 will be reduced to $11.31 per thousand. In light of the funding uncertainties surrounding the Commonwealth’s spending plan for Fiscal year 2004, I am unsure whether the General Court will make the necessary funds available to fund new SBAB projects next fiscal year.

To offset declining or stabilized state funding, I am recommending the use of $3,228,416 in Free Cash to fund various accounts and for reduction of the tax levy to meet the constraints of “Prop 2 ½”. For the past few years, the Board of Selectmen and Finance Committee with the support of Town Meeting has been very careful to marshal resources to guard against an economic downturn. The time is now appropriate to use these funds for their intended purposes to protect the service levels enjoyed by our residents.

I am projecting a very small increase in Schedule A Receipts based upon the current returns we are seeing relative to investment income and other revenue categories. I will continue to monitor the current year’s receipts and make necessary adjustments as we approach Town Meeting.

I am also proposing the use of $185,000 from the Stabilization Fund to cover the costs associated with the construction of a new Police Department boathouse on Lake Quinsigamond. The current facility has become too unsteady for much more use and is in danger of collapsing.

The balance of revenue reflects transfers to cover expenses associated with the sewer, light and CATV operations of the Town.

A more detailed explanation of the current debt service position of the Town is shown in Figure Six (attached) and within the Debt Service Budgets (Departments 0710, 0751 & 0752).