B&F Synopsis. The Budget & Finance Committee met Friday, January 7, 2011 to review the Town’s financial performance through November 2010 and to discuss development of the FY 12 budget. The Town’s financial health is good: it holds over $1.7 million in cash and investments in its General and Restricted Funds; the Beach Fund stands at $2.7 M after most 2010 expenses and before the receipt of 2011 Beach Tax revenues; and it looks like we will end FY 10 with a slight positive result.

November’s numbers were pretty much in line with budget, except for a weak performance in Transfer Tax revenue and corrections to the Regular Legal expense line item that reduces the year-to-date number significantly. Town Director of Finance Bill Brown noted, although not part of the November reporting, that the December Transfer Tax receipts of $64 K will bring this line item above what was budgeted for the entire year – with 3 months left to go. For the 8 month period April 1 – November 30, 2010 the Operating Revenue was $2,042 K ($150 K worse than budget) and Operating Expenses were $1,823 K ($3 K better than budget), for a Net Operating Income of $219 K.

B&F has scheduled several meetings to prepare a realistic FY 12 budget for recommendation to the Town Commissioners in early March:

· Friday, January 28 at 3:00 pm to review “what levels of service” are necessary for proper operation of the Town;

· Friday, February 11 at 3:00 pm to establish an appropriate level of expenditure to run the Town in a manner that meets the health , safety and welfare needs of the Town’s citizens, businesses, and visitors

· Friday, February 25 at 3:00 pm to establish the revenue side of the equation, and possibly adjust the level of services budgeted to meet long-term financial goals.