FY 2002 Spending Plan:
Property Tax Levy Up 2.5%

In keeping with the Board of Selectmen’s goal, this proposed spending plan for FY2002 increases the property tax levy by 2.5% next year, from $8,627,779 in FY 2001 to $8,843,473 in FY 2002. At FY 2001 assessed values, this would translate to a property tax rate increase from $7.42 to $7.61 per thousand. For a median single family home assessed at $285,000 in FY 2001, that would mean a $55-increase in the property tax bill (from $2,114 in FY 2001 to $2,169 in FY2002). The Total Town Spending Plan is projected to increase by 4.5% next year, from $18,164,923 in FY 2001 to $18,978,968 in FY 2002.

Revenues. Besides the increase in the property tax levy, Cherry Sheet Aid from the state is projected to increase by 5.0% per year, based on historic trends. State Aid to Provincetown actually increased by 10% between FY 2000 and FY 2001-- from $715,435 to $793,969. The FY 2002 projection is $833,667. Local Receipts-- a category which includes all user fees, interest income, excise taxes, etc. (not retained by a separate enterprise or fund)--is proposed to increase by 8.1% between FY 2001 and FY 2002. Included in the figure is a projected 8.3% increase in local room occupancy excise tax revenues for the General Fund (based on increases observed in FY 2001); and an increase in school tuition income from $580,000 to $660,000. Also, interest income is projected to increase from $220,000 to $300,000 per year, from the proposed institution of quarterly tax bills under ATM Article 21.

Parking Funds increased to nearly $1.5-million in FY 2001, based on the 1999's all-time high. Calendar Year 2000 parking collections were only slightly behind 1999's record pace.

Expenditures. The Board of Selectmen and the Finance Committee are in agreement on a proposed operating and capital budget requests for FY 2002 contained in the town meeting warrant. The Town’s 22% group health insurance increase is being offset by a combination of municipal cuts and school revenue increases.

The FY 2002 DPW Budget includes the continuation of the Building & Grounds Division beyond its one-year trial. We were able to hire a qualified staff to do this work; the employees are doing a great job; and the Town can quantify its savings compared to contracting out the work. The addition of a wastewater coordinator funded by that enterprise fund will help the Town to implement the sewer project. The Department of Regulatory Management adds a full-time Health Agent/Conservation Agent with funds heretofore used to pay the Barnstable County Health Agent. The County will remain on board to help implement the Town-wide septic system inspection/management program. Enhancing efficiencies and revenues is a key goal for the Department of Municipal Finance’s FY 2002 budget, whose request includes significant upgrades to the Town's financial management systems, and the introduction of quarterly property tax bills to offset the additional costs of those systems.