December Mayor's Report & Local Aid Cut

CLICK HERE to read the Mayor's December 2008 report to the Council and Department Heads. The report details the hours and costs associated with the December ice storm and the other snow storms to date. As happens some years, these costs will exceed the amount that we budgeted for snow and ice storms. This December, our DPW hours spent simply exploded.

This could not come at a worse time. As the memo also mentions, state and local revenues are down from budgeted predictions and Governor Patrick announced cuts to local aid just last Friday, at the MA Municipal Association Annual Meeting. He is cutting 9.74% off of local aid (not including Chapter 70 school aid). Amesbury receives $3,656,349 in non-school local aid, meaning Amesbury will have to cut $356,128 out of the remaining 5 months of our FY09 operating budget (as I calculate it).

In anticipation of both this fiscal perfect storm, the Mayor announced a general spending freeze. Read his memo HERE.