INVESTMENTS: During the course of the past year we have placed the bulk of our municipal portfolio with Legg-Mason which handles all of our capital reserve accounts in accordance with investment guidelines established by the State of Maine. All reserve accounts are now identified separately and reported on monthly. During the year we increased our level of deposits with MBIA Maine Class Trust, an organization that specializes in providing investment vehicles for municipal governments and school systems. Our investments with MBIA have provided a relatively high level of liquidity yet reasonable return. We also invest locally with area banking and savings institutions for much of our short term operating fund requirements. Local investment vehicles are generally in the form of Certificates of Deposit. Our goal is to increase diversification and achieve moderate long term growth.

ABBOTT MEMORIAL LIBRARY: This account was established to address major expense items related to upkeep of the Abbott Memorial Library and its grounds. Current plans are to resurface the basement floor at some point in the next three years. The current balance of this fund is approximately $8,900.

Total new contribution to reserve account: $ 1,000

AIRPORT RESERVE FUND: We continue to budget for upgrading the airport in accordance with our Airport Master Plan. Our long-range goal is to continue with an incremental upgrade of this facility. We are intending to undertake a minor project this year to repair cracks in the runway pavement which will require the withdrawal of approximately $4,500 from reserves. We currently have a balance of $22,400 in this account.

Total new contribution to reserve account: $ 0.

AMBULANCE EQUIPMENT: We propose utilizing the current balance in this account to aid in the purchase of a new ambulance for the Dexter Ambulance Service. There is currently approximately $45,000 available in the account.

Total new contribution to reserve account: $ 0.

ASSESSING: This account is accruing for a future property revaluation and to offset the cost of having some of our maps digitized. There is currently approximately $12,500 available in the account. We plan to withdraw approximately $8,640 from the account in FY 2000 to begin several assessment projects.

Total new contribution to reserve account: $3,500.

BUILDING IMPROVEMENTS: This is the second year of our program to escalate the contribution of funds to address critical building maintenance and upgrade requirements. A summary of those capital projects is attached. There is currently approximately $14,200 available in the account.

Total new contribution to reserve account: $12,500

FIRE STATION DRIVEWAY: It is anticipated that funds will be withdrawn from this account to accomplish a minor project to enhance parking and access at the fire station. There is approximately $2,800 currently available in the account.

Total new contribution to reserve account: $0

FIRE EQUIPMENT: We are requesting $25,000 this year to set aside for the future purchase of a new fire truck. There is currently approximately $39,500 available in the account.

Total new contribution to reserve account: $25,000.

MUSEUM: We established a Capital Reserve Account for the Dexter Historical Society two years ago with an initial contribution of $3,000. The primary purpose of the account is to set aside funds for major building costs. The Historical Society has requested $3000 again this year with the goal of reaching $12000 to replace the roof. There is currently approximately $6,050 available in the account.

Total new contribution to reserve account: $3,000.

HIGHWAY EQUIPMENT/FACILITIES:This account was established to allow for the planned annual contribution of funds to support major equipment purchases for the Public Works Department. We are currently planning to replace the Department's Front-End Loader within the next two years. The total amount currently available in this account is $123,578. Approxiamately $60,000 will be required for a new loader.

Total new contribution to reserve account: $15,000.

ORDINANCE CODIFICATION: This account was created to comply with requirements in the Charter which mandate codification of all ordinances as part of the Town Code. In view of the fact that a Charter Revision Commission has been proposed we are recommending strengthening this account for future need. The current account balance is less than $1,000.

Total new contribution to reserve account: $1,000

POLICE EQUIPMENT: We purchased a new cruiser in early 1998 and plan to acquire a refurbished vehicle during FY 2000. We are requesting to set aside $7,000 to meet the planned purchase of a new vehicle in the year 2001. This account currently has a balance of about $12,000; however, we intend to withdraw $7,300 from the account and combine that amount with $5,000 from the 1997 LLEBG to pay for the refurbished cruiser.

Total new contribution to reserve account: $7,000.

SIDEWALKS:We don't intend to undertake any major repairs or construction of sidewalks this year. The current balance in the reserve account is approximately $22,000.

Total new contribution to reserve account: $ 0.

STREET REPAIRS/PAVING:This account was established to provide funding to support long term projections for paving Town streets and roads. The Public Works Director has undertaken a plan to accomplish major paving projects every two years to take advantage of better prices offered by contractors when larger volume projects are involved. No major paving is planned for FY 2000; however, we do plan to pave in FY 2001.

Total new contribution to reserve account: $55,000.

INFORMATION MANAGEMENT CAPITAL RESERVE:We created this capital reserve account in 1998 to set money aside annually for the future acquisition of computers, printers, software, copiers, communications systems, and data management systems. We anticipate the completion of the final phase of the planned upgrade of our personal computers and networking FY 2001. We also anticipate a requirement to purchase a new office copier in FY 2001. This account currently has a balance of approximately $4,600.

Total new contribution to reserve account: $6,000

BRIDGE CONSTRUCTION CAPITAL RESERVE:: Funds are utilized to perform major maintenance, support local reconstruction efforts, and match state funds associated with construction grants. This account currently has a balance of approximately $9,150.

Total new contribution to reserve account: $9,000

FACILITIES EQUIPMENT CAPITAL RESERVE: : This is a new reserve account established to support the newly created Facility Maintenance Department. It is intended to be used for the programmed purchase of support equipment.

Total new contribution to reserve account: $5,000

GOLF COURSE CAPITAL RESERVE:This is a new reserve account established to support long range capital programs associated with the Dexter Municipal Golf Course.

Total new contribution to reserve account: $3,000

Unfortunately, the demands on our capital reserves for the maintenance and improvement of our aging facilities has increased. Because long range planning is so critical to providing for the "high cost" needs of the community, the majority of funding we are seeking this year to support capital programs will be placed in reserve accounts for future needs that we have already identified. Most of the demand for these funds will be going to essential items such as boiler and roof replacement, ADA and safety compliance, and the replacement of aging equipment. Dexter has reached the point that the community can no longer afford to ignore undertaking many of the capital projects that are essential to the heath and welfare of the community.