INVESTMENTS: During the course of the past year the bulk of our municipal portfolio remained with Legg-Mason which currently handles most of our capital reserve accounts in accordance with the Town's investment guidelines as well as those established by the State of Maine. However, we have increased our level of investments with the MBIA Maine Class Trust
including moving several of our dedicated reserve accounts from Legg-Mason to MBIA. MBIA is an organization that specializes in providing conservative investment vehicles for municipal governments and school districts. All reserve accounts are now identified separately and reported on monthly. Our investments with MBIA have provided a relatively high level of liquidity and 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. During the last 12 months we have managed to remain on a very solid footing relative to our investments, in spite of the unusual fluctuation in the stock market.
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 $11,500.
Total new contribution to reserve account: $ 1,000.00
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 have also been advised by the State Department of Transportation that our Airport Master Plan will require revision in the next two years. Although the State will provide the bulk of funding for this project, our local match will amount to approximately $15,000. We have not contributed to this account for two years. We currently have a balance of $23,000 in this account.
Total new contribution to reserve account: $ 4,000.
AMBULANCE EQUIPMENT:
This account is designed to accumulate funds for the acquisition of major equipment items for the Dexter Ambulance Service. Virtually the entire account was liquidated in FY2000 to help offset the purchase price of a new ambulance for the service. The goal is to accumulate funds at a rate which will allow the purchase of a new vehicle every five years. There is currently less than $16,100 available in the account.
Total new contribution to reserve account: $ 12,000.
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 $13,500 available in the account.
Total new contribution to reserve account: $2,000.
BUILDING IMPROVEMENTS:
This is the third year of our program to escalate the contribution of funds to address critical building maintenance and facility upgrade requirements. A summary of those capital projects is attached. There is currently approximately $52,150 available in the account.
Total new contribution to reserve account: $18,500
FIRE TRUCK:
We are requesting $30,000 this year to set aside for the future purchase of a new fire truck. Fire trucks are generally purchased in seven year cycles. The last fire truck purchased for our Fire Department was in 1996. Depending on the type, the new vehicle could cost as much as $200,000. There is currently approximately $90,000 available in the account.
Total new contribution to reserve account: $25,000
FIRE EQUIPMENT:
This is a newly established reserve account designed to build funds for the future acquisition of major equipment items other than vehicles.
Total new contribution to reserve account: $1,000.
MUSEUM:
We established a Capital Reserve Account for the Dexter Historical Society four years ago with an initial contribution of $3,000. The primary purpose of the account is to set aside funds for major building repairs. We anticipated withdrawing approximately $9,000 from the account in FY2001 to undertake a project to replace the Museum roof. If the roof project proceeds as planned ther will be approximately $ 800 available in the account at the beginning of FY 2002.
Total new contribution to reserve account: $ 1,000
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 anticipate withdrawing $50,000 from the account in FY2002 to help purchase two major equipment items. The total amount currently available in this account is $103,000.
Total new contribution to reserve account: $10,000.
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. The current account balance is approximately than $1,100
Total new contribution to reserve account: $ 0
POLICE EQUIPMENT RESERVE:
We generally purchase new police cruisers on an 18-month cycle. We plan to purchase a new vehicle this fiscal year at a cost of about $25,000. It is planned to take the $25,000 from the reserve account for the purchase. The account is currently valued at $28,000.
Total new contribution to reserve account: $10,000.
SIDEWALKS:
Although some minor work on sidewalks is anticipated this fiscal year, we don't intend to draw any funds from the reserve. The current account value is approximately $24,500.
Total new contribution to reserve account: $ 0
PAVING RESERVE:
This account was established to provide funding to support long term projections for maintenance paving of Town streets and roads. Plans call for using $75,000 from this account in FY 2002 to complete limited paving projects. The current value of the account is approximately $113,000.
Total new contribution to reserve account: $55,000.
ROAD RECONSTRUCTION RESERVE:
This is a new account established to accumulate matching funds to participate in the State of Maine Urban/Rural Initiative Program. This program enacted by the Maine Legislature in 1999 and dictates that 33% of the cost of any reconstruction of a State Minor Collector Road be the responsibility of the Town. Dexter has 3.6 miles of such roads, both of which will require reconstruction within the next 10-15 years. The average cost for reconstructing such roads is estimated at $300,000 per mile; therefore, Dexter's match requirement would amount to $360,000 if the projects were undertaken this year.
Total new contribution to reserve account: $5,000
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 conducting the second phase of the planned upgrade of our personal computers in FY2002. Although we planned to acquire an automobile registration system and networking in FY2002, the prohibitive cost will necessitate slipping that program acquisition until FY2003. This account currently has a value of approximately $3,700.
Total new contribution to reserve account: $5,000
BRIDGE CONSTRUCTION CAPITAL RESERVE:
Funds are utilized to perform major maintenance, support local reconstruction efforts, and match state funds associated with construction grants. There is a possibility that we may have to withdraw funds from this account during FY 2002 to provide matching funds for a planned DOT bridge refurbishment project. This account currently has a value of approximately $29,000.
Total new contribution to reserve account: $9,000
FACILITIES EQUIPMENT CAPITAL RESERVE:
This is a reserve account intended to be used for the programmed purchase of equipment for Facilities Maintenance. We withdrew funds from the account in FY 2000 to purchase a vehicle to support the Department's operation. There is currently approximately $3,000 in this reserve account.
Total new contribution to reserve account: $3,000
GOLF COURSE CAPITAL RESERVE:
This is a reserve account established to support long range capital improvement programs associated with the Dexter Municipal Golf Course. Intended programs include major equipment purchases and course improvements. The account is currently valued at $10,000.
Total new contribution to reserve account: $5,000
SUMMARY
Because of increased demands on the FY2002 operating budget we were forced to cut our planned contributions to reserve funds by over $10,000. Unfortunately, this occurs when 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.