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By BEN BRAGDON of the Moosehead Messenger - GREENVILLE - Town officials last week took the first baby steps toward the creation of the 2007-08 municipal budget as selectmen were presented with a rough budget projections and a timetable for producing the final budget by the June town meeting. Town Manager John Simko gave the board an indication of where the town is snow as compared to last year at this same point. "There are more unknowns than knowns at this point," Simko told selectmen. "But we are in much better shape than in previous years." Simko's calculations show Greenville receiving $17,376 less in state revenue sharing. The town will also pay $14, 743 more in county tax, while new debt service on road projects will add around $21,000 to the budget. Since the town projects saving $40,000 from the $86,000 overlay included in last year's budget as a safeguard against tax abatements following the properly revaluation, Greenville starts out the budget with an increase in the tax commitment from those measurements of $13,120. Last year, the town's tax commitment rose $82,770 from the previous year. "There are not any big cost drivers this year," Simko said. This town in working with Greenville Schools to use funds sitting in school reserves to reduce the tax commitment. In order to do so, the town would purposely underestimate revenue, allowing it to rebuild its various fund balances. Fund balances were unavailable as the fund audit has been delayed. "Our depleted fund balance remains a large concern," Simko wrote to selectmen. "We need to be prepared to diminish revenue expectations, and work closely with the school, in order to replenish the amount." Under this plan, it would appear that the town is driving up the budget, so Simko suggested the board be prepared to explain the procedure. Unknown at this point in the budget schedule are department requests, which could be impacted by the cost of fuel, new hires, infrastructure needs at the library, operating expenses at the landfill, and safety concerns at the fire department. The largest budget "unknown" at this point remains the school budget, which is in the process of being formulated at this time. Superintendent Heather Perry told the board last week that she expects to hold the school budget to a 2.5 percent increase in expenditures. She expects to know the state aid amount by mid-March. The town is still calculating the percentage by which they will be allowed to exceed last year's tax commitment due to the LD1 "tax cap." The factor is a combination of growth in the community and the statewide growth in wages, Simko told the board. A draft budget will be prepared for the board by the first week in March. the budget is then usually amended by selectmen by the beginning of April. The Budget Advisory Committee then reviews the budget and makes its recommendations by the start of May. Selectmen finalize the budget by the third week in May, readying it for the town meeting at the beginning of June.
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