2018 Adopted Budget

Revenues, primarily mortgage tax revenue, sales tax revenue, and building permit revenue have improved. Mortgage tax revenue  remains at lower levels in FY2017 as compared with pre-recession revenue levels. The Town management recognizes the expectations for economic growth have improved but FY2018 budget levels are conservatively set to operate at lower revenue levels in the near term. The amount of long-term uncollected taxes were reduced in 2017 by 10% but remains at high levels and has the potential to affect cash flow for operations and fund balance reserves. Management has a plan in place to address outstanding tax accounts and is monitoring this trend for multi-year forecasting. Due to low interest rates, borrowing has been utilized with short-term and long-term financing. The Town management also is aware that health insurance costs need to be monitored closely as uncertainty in the market conditions exist.  Changes to existing benefit plans have resulted in reductions in health insurance cost. All of these factors were taken into consideration in developing the FY2018 budget.