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BUDGET SUMMARY To: Town Council, Budget Committee CC: Municipal Staff Fr: Zachary Maher & Lisa Prevost Re: Proposed Municipal Budget 2021-22

“Divide each difficulty into as many parts as is feasible and necessary to resolve it.” –Rene Descartes Fiscal year 20-21 began under unprecedented circumstances. The budget was presented under the first virtual meetings ever allowed due to Covid19 and the responding Executive Orders. It was passed by voters later than customary at an election unlike any other. And although these first-ever continue to challenge our traditional modes of operationwe have endured well. Now, as the impacts and operational changes predicated on the Covid19 pandemic become permanent, how do we first assess our financial stability and then adapt our financial priorities to better meet the needs of tomorrow. Valid concerns regarding our reliance on state revenue sharing or loss in excise tax due to shutdowns, layoffs and states of emergency were raised last year. These concerns had merit and while we were not forced to reduce community services or workforce, many of our neighboring municipalities struggled with these realities. In order to find the root of our core stability I will deconstruct our revenue figures in order to better

represent our position. Our revenues to date have come in over expectations. We have also received some additional grant funds to cover our regular operations and to meet unforeseen needs. In part, our modest standard of operation, ingenuity and resourcefulness at every level of our municipal government have insulated us from the systemic impacts suffered by other municipalities who, budgetary speaking, were

living beyond their means. In order to help explain the theory of core stability, I divided our revenue streams into 3 separate categories as displayed in the above graph. The first consists of Internally Generated Funding . This represents all use fees such as excise tax, building permits and disposal fees collected at the transfer station. It also includes funds directly raised by taxation in either the current or previous years which can be drawn from reserve

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