Tuesday night Winthrop’s Chief Financial Officer Mike Perez gave an overview of the FY19 budget, which goes into effect on July 1.
Perez said the budget has not been finalized yet but it looks like the town could be working with a $62 million budget.
“It hasn’t been submitted to council yet and it is subject to change,” Perez said.
Perez noted that the primary revenue source for the town is property taxes and state aid. Real estate market-growth is up with home sales showing that 97 percent of properties sold received the asking price.
The FY19 budget overview shows a $62.15 million budget with 75.4 percent going to the general fund, 17 percent to enterprise funds, 6.6 percent of exempt debt and .3 percent going to revolving funds.
The budget is made up of property taxes, state aid, excise tax, licenses and permits, fee and fines, PILOTs and departmental revenue. For FY19 property taxes are up 3 percent, state aid is up 5 percent.
On the expense side of the budget, insurance costs have increased $150,000 since 2016. Energy cost growth has slowed considerably and Perez credits to the town’s Energy Manager, Frank Nitti, for that. In the end it is personel expenditures, including fringe benefits, that is the largest expenditure category.
Budget recommendations for general fund expenditures show a 5.8 percent in education, 3.9 percent on general government and a .7 percent decrease in public works.
Perez included a five-year forecast showing the town’s expenditures rising, as well as revenue. All of this can be impactd by union contracts, health insurance, state assessments, debt services and other fixed costs.
This forecast does not include any funding for new projects or capital needs, Perez said.