Windsor Finances FY22-26
Windsor Finance Committee Statement on FY22-26 Medium-Term Expenditure Framework and FY22 Proposed Budget
This is an old statement. Here is the Finance Committee's Current Statement for FY23
The Windsor Finance Committee has incorporated prospective revenues from broadband operations into the FY22-FY26 medium-term expenditure framework. These funds will substantially change the town’s options regarding capital spending, provision of services, and the level of taxation. Previously, because of the roughly $175,000 a year needed to service the $1.35 million 10-year broad band debt obligation, the 5-year capital spending program had been limited to a new ambulance, a new police cruiser, and improvements to the historical museum. These were the projects that could be accommodated while keeping our financial reserves above $500,000. With an estimated $780,000 in broadband revenues over the next 5 years, we will be able to undertake a much more ambitious capital program, increase public services, and/or reduce the growth in the tax levy. The Finance Committee would love to hear from the townspeople on what they would like to do.
In the meantime, the medium-term expenditure framework is based on a 3 percent annual increase in the tax levy (not the tax rate), which is lower than its historical average. Should the number of households continue to rise, the average household tax bill would rise less rapidly. Most expenditures are programmed to rise by 2 percent a year, slightly higher than the average rate of inflation the past two years. Exceptions include selected wage adjustments, employee benefits, debt service and capital expenditures (which are project-specific). Debt service will rise sharply in FY22 as we begin paying down the broadband debt. The ambulance and police cruiser would be financed with 5-year notes in subsequent years.
The FY22 proposed budget is derived from this medium-term framework. The details are contained in the town warrant and summarized in the table below.
Respectfully submitted to the people of Windsor,
Chair Windsor Finance Committee
Much of the modeling used to generate the following charts are based on information provided by Massachusetts' Department of Local Services' description of Proposition 2 1/2. Some of the videos on this page [link] may be helpful in understanding the modeling.