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FY05 Budget - Town of Swampscott

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FY05 Budget - Town of Swampscott Powered By Docstoc
					TOWN OF SWAMPSCOTT, MASSACHUSETTS
          FISCAL YEAR 2005
 FINANCIAL PLAN & OPERATING BUDGET

  General, Capital Projects and Enterprise Funds
          July 1, 2004 to June 30, 2005


          BOARD OF SELECTMEN

             Marc Paster, Chairman
        Daniel Santanello, Vice Chairman
                  Reid Cassidy
                 William Hyde
             Paul E. Levenson, Esq.



          TOWN ADMINISTRATOR

               Andrew W. Maylor




                      -1-
                            TABLE OF CONTENTS

BUDGET MESSAGE…………………………………………………………………….                           5

BUDGET CALENDAR………………………………………………………………….                           8

BUDGET OVERVIEW….……………………………………………………………….                          9
    Citizen’s Guide to the Fiscal Year 2005 Budget…………………………………..   9

TOWN ORGANIZATION…………………………………………………………………                          12
    Background…………………………………………………………………………                          12
    Town Charter…………………………………………………………………………                        12
    Organization Chart…………………………………………………………………                     13
    Organization Summary …………………………………………………………….                   14
    Town Personnel Analysis……………………………………………………………                  16

SUMMARY INFORMATION
    Budget Development……………………………………………………………….. 18
    Overall Summary of the Town Budget……………………………………………… 22
    General Fund………………………………………………………………………... 23
    Challenges Addressed in the Fiscal Year 2005 Budget……………………………. 23
    Development of the Fiscal Year 2005 Budget…………………………………….. 24
    Financial Reserve Policies…………………………………………………………. 25
    Enterprise Funds (Water & Sewer)………………………………………………… 28
    Stabilization Funds………………………………………………………………… 29

GENERAL FUND FINANCIAL PLAN…………..……………………………………. 30
    General Fund Revenue……………………………………………………………... 30
    General Fund Expenditure Summary Table……………………………………….. 40
    Departmental Goals and Expenditures……………………………………………… 42
          Board of Selectmen…………………………………………………………. 42
          Town Administrator’s Office……………………………………………….. 43
          Personnel……....…..………………………………………………………... 46
          Town Accountant....………………………………………………………… 49
          Technology…………..……………………………………………………… 51
          Treasurer…………..………………………………………………………... 54
          Town Clerk/Collector……………………………………………………… 57
          Elections………………………………….………………………………… 60
          Assessor’s………………………………………………………………….. 63
          Retirement……….…………………………………………………………. 66
          Police Department…………………………………………………………… 67
          Fire Department…………..………………………………………………… 72
          Emergency Management…………………………………………………… 75
          Building Department……………………………………………………….. 76
          North Shore Vocational School……………………………………………. 78
                                           -2-
          Education…………………………………………………………………...                   79
          Department of Public Works……………………………………………….           80
          Health Department………..………………………………………………...             85
          Recreation Department……………………………………………………..             87
          Council on Aging……………………………………………………………                 89
          Veterans Services…………………………………………………………..               92
          Library………………………………………………………………………                      93
          Debt Service………………………………………………………………..                  95
          Health and Benefit Insurance………………………………………………          98
          Undistributed Cherry Sheet Assessments…………………………………..   100
          Non-Departmental Budgets…………………………………………………             102

FINANCIAL PLAN ENTERPRISE FUND…………………………………………….. 109
     Overview…………………………………………………………………………... 109
     Enterprise Fund Revenues and Expenditures…………..…………….…………… 112

CAPITAL IMPROVEMENT PROGRAM

FIVE -YEAR FINANCIAL FORECAST

APPENDICES
     Demographic Profile of Swampscott……………………………………………….         113
     Swampscott at a Glance…………………………………………………………….               114
     Departmental Statistics……………………………………………………………..             115
     Glossary of Terms………………………………………………………………….                  121
     Warrant Format of Budget………………………………………………………….              126




                                     -3-
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                                  Town of Swampscott
                                              Office of the
                                   Town Administrator
                                  Elihu Thomson Administrative Building
                                          22 Monument Avenue
                                      Swampscott, MA 01907
                               e-mail:
                               amaylor@town.swampscott.ma.us

Andrew W. Maylor                                                           Telephone (781)596-8889
Town Administrator                                                         Fax       (781)596-8851


February 12, 2004
Dear Members of the Board of Selectmen:

I am pleased to present to you the Operating Budget for the Town of Swampscott for Fiscal Year 2005.
The FY05 budget continues the work begun last year to improve the quality of life for all Swampscott
residents within the limits of financial constraints facing the community. The budget, which consists of
total anticipated expenditures of $41.7 million with an equal amount of revenue from various sources,
represents an increase of $978,000 or 2.4% over the adopted FY04 budget. This $978,000 increase, as
you will see later in this budget message and in the budget document, is primarily made up of increases
in employee health insurance, the Town’s contribution to the Retirement System, property and casualty
insurance and Enterprise Fund debt service. In fact, the FY05 General Fund budget less the increase in
the health insurance, liability insurance and retirement appropriations is down 0.2% or $63k over FY04.
Prior to getting into the details contained in this budget submission, I would like to use this budget
message as an opportunity to outline some of the basic policy decisions that guided the budget process
and areas of focus for the upcoming year.

The Town of Swampscott has emerged from intense debate and discussion regarding the function and
design of government and the need to replace aging school buildings with a renewed sense of purpose,
operating successfully under a new Town Charter, with a dedicated and professional staff who are
determined to continue to focus on improving service delivery to residents and business owners. Having
been selected by the Board of Selectmen in 2002 as Town Administrator I have been presented the
honor, privilege and challenge of effectuating change as directed by the Board during what I believe will
be viewed as the turning point in the Town’s evolution. I am grateful for having been given this
opportunity and am committed to providing the leadership that will ensure our collective success. While
I am pleased with the substantial progress that we have made over the last sixteen months, I am realistic
about the continuing financial challenges facing this Town and I am cognizant of the hard work and
dedication that will be required to meet these challenges. With that in mind this year’s budget
submission does not fully deplete the reserves the Town was so insightful to create. Working together to
address mutual concerns, I feel we are well on the way towards making Swampscott a model
community.


                                              -5-
Budget Development Guidelines

       This year, the annual financial forecast presentation held on November 12, 2003, indicated that the
Town would be facing growing structural deficits for each of the next five fiscal years. Realizing that
Swampscott, like many other cities and towns in Massachusetts and across the nation, is faced with limited
revenue expansion by virtue of Proposition 2 ½ and slow economic growth at the state level, we have had to
continue to offset inflationary pressures on non-salary employee related costs. This is clearly visible in the
FY05 budget submission by a decline in aggregate general fund expenditures when reduced by health insurance,
retirement and liability insurance. With this as a backdrop and under the governance of the Town Charter I
provided Town departments with their budget packages in December of 2003.

       The Budget Package contains a timeline and instructions for preparing and submitting the information
       necessary to properly evaluate Fiscal 2005 requests for funding, including capital requests. I have
       included two excerpts from this year’s budget package. The first sets a guide for requesting funds and
       the second identifies additional material departments will need to submit as part of this and subsequent
       years’ budgets.

              “…Consequently, I am requesting that all department heads, in conjunction with their staff, review their
              operation and look for any process improvements that will make us a more efficient organization. In
              addition, budgets should be developed assuming a zero dollar increase from the Fiscal 2004 Town
              Meeting approved amount of total funding for your department, inclusive of any contractual salary
              increases. In addition, if you would like to provide me with information regarding requests you feel are
              important to your department that would require an increase from last years final approved budget then
              feel free to do so.

              For the next several years the information requested of you will be more comprehensive than the prior
              year until we have fully complied with the Government Finance Officers Association (GFOA) standard
              for budget excellence. To that end the appendix of the Budget Package includes examples of a three new
              requirements of your submissions to the Town Accountant. The first is a Mission Statement, which should
              be a static description of the role your department plays as part of municipal government has a whole.
              The other two sections, “Significant Changes” and “Previous Years Accomplishments”, should be self-
              explanatory”.

       As identified in the budget package, after the budget requests are returned to the Town Accountant, I
       schedule meetings with each department to review the requests prior to making decisions regarding the
       funding that will be submitted to the Selectmen as part of a balanced budget.

Fiscal Year 2005 Budget Highlights
       The FY05 budget for the Town of Swampscott totals $41.7 million which represents a 2.4% increase
       over the FY04 budget yet below the historical rate of inflation. Swampscott's total budget as presented in
       this document is comprised of a General Fund component and the Water and Sewer Enterprise Fund
       component. The General Fund Budget totals $37.2 million for FY05. This projected level of spending is
       $595,000 greater than the FY04 budget, representing a 1.6% increase. The Enterprise Fund Budget for


                                                       -6-
FY05 totals $4.5 million, which is equal to a $405,000 or 9.9% increase as compared to the FY04
Enterprise Fund Budget. The following is a discussion of several highlights in each component.

The General Fund Budget supports the operations of all Town departments as well as fixed costs such as
non-Enterprise Fund Debt Service, Employee Benefits and Insurance, and the Town's contribution to the
School Department. The total appropriation required to support Town departments excluding schools,
and shared expenses such as employee benefits and the Town’s contribution to the Retirement System is
approximately $12.6 million for FY05 down $50,000 from FY04. This includes projected salary
increases based upon collective bargaining agreements and the Town’s Personnel Policy and any new
initiatives included in the coming year's budget like the addition of a part-time Town Planner, the hiring
a full-time Recreation Director and the creation of Building and Grounds department. General Fund
Debt Service included in the FY05 budget totals $2.8 million. Approximately $1.1 million of this line
item represents principal and interest payments outstanding on the connection to the Lynn water and
sewer system agreed to nearly a decade ago. Increases in employee health insurance, the Town’s
contribution to the Retirement System and the Town’s liability insurance total more than $636,000
exceeding the increase in total General Fund revenues from FY04 to FY05.

Funding for Education, which includes the Town's contribution to the School Department and the North
Shore Regional Vocational School Assessment, is anticipated to be $17,682,230 for FY05. Included in
this line item is a projected decrease of $8,000 for the North Shore Regional Assessment and a projected
increase of $150,000 for the Swampscott School Department. Facing a staggering increase in their
special education budget for FY05 the Swampscott School Department had recommended an
approximately $1.5 million increase in funding for FY05.

The Enterprise Fund Budget for FY05 totals $4.5 million, with approximately $2.75 million, or 61% of
total expenditures, being funded through water user charges and $1.73 million, or 39%, funded through
sewer user charges. This projected level of appropriation includes approximately $300,000 in increased
debt service associated with replacing the Town’s water metering and billing systems funded by last
year’s Town Meeting.

Conclusion
In summary, while facing substantial increases in fixed costs, level funded state aid, reductions in one
time revenues, a goal not to deplete the Town’s reserves, and a desire to increase education funding in
FY05 while moving forward with the progress that is required in the non-school side, the budget I
present to you is balanced. These are not ideal times so no one should expect ideal solutions. However, I
am confident that you will find that the material contained within this document is consistent with the
purposes and policies prioritized by the Board.

Respectfully yours,

Andrew W. Maylor
Town Administrator



                                              -7-
                         Budget Calendar
Five-Year Forecast presented                       November 12

Budget book distributed with instructions          December 5

Capital Improvement Articles Due                   December 31

Departments submit budget requests                 January 9

Initial Department meetings                      by January 31

Forecast Revenues                                  January 31

Capital Improvement Recommendations Due          by February 2

School Budget submitted                          by February 12

Final budget review with departments             by February 12

Forecast Expenses                                by February 12

Budget submitted to Selectmen for ratification     February 13

Selectmen ratification                             March 2

Selectmen ratified budget to Finance Committee   by March 9

Finance Committee recommendations due              April 2

Warrant to printer                                 April 12

Warrant mailed to Town Meeting members             April 23




                                       -8-
Budget Overview
Citizen's Guide to the Fiscal Year 2005 Budget
The budget is a blueprint of Town services and facilities for Fiscal Year 2005. It identifies
policy decisions by the Town Administrator and Board of Selectmen and guides the Town's
operations.

Budget Format - The budget summary contains summary totals from all operating segments.
The revenue section details revenue sources with expected trends. Each departmental section
contains a department narrative, which includes organization, program functions, goals and
financial data relating to the entire department. The enterprise section includes revenue and
expenditure trends of the self-sustaining enterprise funds along with departmental goals. The
CIP section details all expected capital program outlays in the current fiscal year, as well as a
summary of the next following years.

Basis of Budgeting and Accounting - The modified accrual basis of accounting is followed by
governmental funds and expendable trust funds. Accordingly, revenues are recorded when
susceptible to accrual, i.e., both measurable and available. Available means collectible within
the current period or soon enough thereafter to be used to pay liabilities of the current period.
The Town recognizes funds received 60 days after the close of its fiscal year as revenue of that
reporting period. All other amounts not received during that period are deferred and recognized
in future accounting periods. Expenditures other than interest on long-term debt, are recorded
when the liability is incurred. In applying the susceptible to accrual concept to inter-
governmental revenues, the legal and contractual requirements of the numerous individual
programs are used as guidance. There are, however, essentially two types of these revenues. In
one, monies must be expended on the specific purpose or project before any amounts will be
reimbursed to the Town. Therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to the purpose of the expenditure and
are usually revocable only for failure to comply with prescribed compliance requirements. These
resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual
criteria is met. The accounts of the Town are organized into various funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a
separate set of self-balancing accounts.

Budget Procedure - The preparation of the Annual Budget for the Town is governed by the
provisions of Chapter 43B, Section 12 of the Acts of 2002, establishing a new Charter for the
Town in 2002. The budget cycle for FY 05 was initiated in December 2003, at which time, the
Town Administrator established budgetary guidelines and limitations for the coming year.

The Town Administrator convened a Town wide budget meeting, attended by all department
heads and finance personnel, concerning a general overview of the state of the economy, and to
outline specific guidelines dictating the preparation of individual department budgets. In
consultation with the Town Accountant, each department then prepared FY 05 operating budgets
                                               -9-
and a program summary outlining the projected goals for the future. These operating budgets,
which include expenditure and revenue estimates, were submitted to the Town Administrator by
January 9, 2004.

Mid-January, each department made a presentation to the Town Administrator justifying
proposed budgets and program changes for the coming year. Specific requests were negotiated
during these sessions and appropriate revisions were made to the submitted budgets.

As the proposed budgets were reviewed by the Town Administrator, the budgets submitted were
adjusted based on the individual needs of each department. During the months of January and
February, the Town Administrator finalized the Annual Budget document for submission to the
Board of Selectmen. By Charter, the budget must be approved, by a majority vote of the Board
of Selectmen by March 1st of each year.

During March and April it is anticipated that the Finance Committee will conduct a series of
budget review sessions. The Finance Committee budget proposal, as amended, shall be placed
before town meeting for its approval, subject to further amendments on the floor.

Mass Gen. Law Requirements - The budget preparation process for all towns is governed by
MGL Ch. 44. The General Laws require that the budget be supported by revenues earned during
the year plus any savings from prior years. The General Laws also requires public involvement
in the process, including the requirement for a public hearing on the proposed budget.

Developed under the Town Administrator’s Direction - The Town Administrator provides
leadership for the budget process by developing budgetary policy and working closely with
department heads and the Board of Selectmen to assure that the process identifies community
needs and priorities and develops a farsighted and well crafted plan.

Crucial Budget Processes - The Town Administrator has initiated budget processes that provide
the policy context for identification of priorities and development of initiatives.

The budget process goals include:

1. Policy Driven Planning: The budget is developed based upon community values and key
Town strategic financial and program policies. The Town's Five Year Financial Forecast
provides the nexus between the long term financial plan and budgetary development. The Plan
includes a comprehensive multi-year projection of the financial position and budget projections,
including documentation of revenue and cost assumptions and projections.

2. Program of Services for the Community: The budget is designed to focus on financial
information and missions and goals that have value added outcomes to the community through
Town services. The Town’s Fundamental Principles will be used as a basis for allocation
choices and policy discussions by the Town Administrator and the Board of Selectmen. It also
provides a basis for measuring progress toward goals during the budget period.


                                             - 10 -
3. Financial Plan of Allocation and Resource Management: The budget establishes the plan
and legal appropriations to allow the Town to operate during the fiscal year. The budget
provides specific direction for departments and agencies for management of resources. It also
provides broad goals related to the Town's overall financial position and identifies business
decisions required to keep the Town financially viable and strong. It is developed using all
available financial and planning reviews, including the Five Year Financial Forecast and the five
year rolling Capital Improvement Program.

4. Communication Tool: The budget is intended to communicate to a broad range of readers,
both locally and around the region, as well as the larger governmental and financial community.
The budget expresses priorities and goals, assignments and plans, targets and hopes. It is a key
statement of Town priorities, and is meant to provide confidence in and confirmation of the
Charter-mandated, Town Administrator form of government that has directed Town affairs since
July of 2002.




                                             - 11 -
Town Organization
Background

Swampscott, Massachusetts, USA, is a beautiful and tranquil seaside community of 14,600
residents located 15 miles northeast of Boston along the coastline of the Atlantic Ocean.

Our name, Swampscott, is of Native American origin, most probably from M’sqiompsk meaning
red rock. It then became M’squompskut, for the phrase “at Red Rock” because of the red granite
outcroppings that were visible to those offshore.

Swampscott offers a friendly, welcoming and nurturing family environment, an excellent pre-
school to grade 12 public educational system, superb public safety and support systems,
abundant youth sports opportunities and a town government which is responsive to the needs of
its citizens.

Whether you are visiting our community or thinking about establishing residency, you’ll find
Swampscott to be an ideal choice. We offer the character of a seacoast community, fine
restaurants and shopping areas and we’re only about 20 minutes from Logan International
Airport and the City of Boston.

Town Charter
The proposed Charter was approved by Town Meeting on October 15, 2001. The Charter was
then submitted to the Massachusetts Legislature and was approved by the House and the Senate
in early January 2002. The new Charter was signed by the Governor on January 20, 2002. In
March 2002, local voters ratified the new Town Charter. The Charter became effective on July 1,
2002 and the appointment of the Town’s first Town Administrator was made on October 7,
2002.

Local voters continue to elect the policy makers in the form of a Board of Selectmen. The Board
of Selectmen then, by a simple majority, appoints the Town Administrator. The Town
Administrator is the chief executive of the Town and is responsible for the day-to-day
administration of Town affairs.

The Charter requires the implementation of a coordinated Town wide budget process. The
Board of Selectmen, Town Administrator, Finance Committee and the School Committee share
responsibility and coordinate their activities. In addition, the Charter requires the Town to
implement and undertake annual processes for capital planning, long-term financial forecasting
and an open operating budget development process. All of these financial mandates required by
the Charter have begun to be successfully implemented.

The successful administration of the Town Charter will be one of the most significant factors
contributing to the Town’s continued success.
                                             - 12 -
                                            Town of Swampscott Organizational Chart
                                                                           Citizens of Swampscott


                                                                                                 Board of Selectmen         School Committee


                                                                                              Town Administrator              School Superintendent


Health & Human Services       Finance              Public Services               Administration                Fire Department           Police Department

       Council on Aging         Treasurer          Building Department                 Personnel               Emergency Management        Animal Control Officer

      Health Department                                                                  Clerk
                                  Technology             Wire Inspector
                                                                                       Elections
         Rubbish/Recycling   Town Accountant           Plumbing Inspector
                                                                                       Purchasing
          Animal Inspector                            Public Works
                                 Parking Clerk
      Veterans Services
                                Collector               Public Buildings
        Public Library
                                Assessing                 Water/Sewer

                                                      Building and Grounds

                                                        Planning



                                                                              - 13 -
                            ORGANIZATION SUMMARY

Department             Official(s)                            Areas of Authority

Accounting             Dave Castellarin, Town Accountant      Parking

Administration         Andrew Maylor, Town Administrator

Assessing              Mike Tumulty, Assistant Assessor

Building Department    Joseph Latronica, Building Inspector

Clerk                  Jack Paster, Town Clerk

Collector              Jack Paster, Town Collector

Council on Aging       Martha Marcou, Director

Elections              Election Commission

Emergency Management   Bruce Gordon, Director

Fire                   Larry Galante, Chief

Health                 Jeff Vaughn, Director                  Animal Inspector

Library                Alyce Deveau, Director

Personnel              Nancy Lord, Manager

Police                 Ron Madigan, Chief                     Animal Control

Purchasing             Sheryl Levenson, Purchasing Agent

Public Works           Gino Cresta, Director                  Water, Sewer, Buildings,
                                                              Parks, Cemetery,
                                                              Highway, Engineering

Recreation             Bill Bush, Coordinator

School                 Brian Coughlin, Superintendent

Treasurer              Denise Dembkoski, Treasurer            Technology

Veteran’s              James Schultz, Veteran’s Agent




                                                - 14 -
School Committee
The School Committee has general charge and superintendence of the public schools of the Town. The
School Committee is comprised of five members elected at large. The School Committee has the
power to select and terminate a superintendent of schools, establish educational goals and policies for
the schools consistent with the requirements of the laws of the commonwealth and standards
established by the Commonwealth. The School Committee also has all the powers and duties given to
school committees by the laws of the Commonwealth.

The members of the 2003-04 School Committee are:

Mary DeChillo, Chairman
Arthur Goldberg, Vice Chairman
Philip Rotner
Shelley Sackett
Dan Yeager



Boards and Commissions
In addition to being shaped and influenced by the Town’s elected officials and appointed staff, Town
policy and programs are impacted by the actions of the Town’s Boards and Commissions. The size,
responsibility and source of authority of the Town’s Boards and Commissions vary. With the
exception of those members who derive their appointments as a result of their position in Town
government and the Town Charter mandating their membership, members are appointed by the Board
of Selectmen as recommended by the Town Administrator. Boards and Commissions are autonomous
in their decision making capabilities, and are typically led by a chairperson and staffed by Town
personnel.




                                                 - 15 -
Town Personnel Analysis
The cost of non-school personnel to the Town is $7 million dollars, or 35.7% of the General Fund
operating budget. Because personnel costs are the most significant portion of the annual budget, it is
critical for the Town to continue to stringently monitor this area. The Town Administrator has sought to
review operations and make efficiency improvements, striving to maintain staffing levels and sharing
human resources among departments, where possible.

The chart below shows the Town’s non-school headcount for FY 05. Grant funded positions are not
considered core positions, will fluctuate with grant awards and may not be retained after the grants
terminate and therefore are not included in the chart. The table on the following page illustrates the
headcount for FY 05.



                                           Position List




             FY05
                                                                                          FTE


            FY 04


                    0       25        50        75         100     125       150




                                                  - 16 -
              TOWN OF SWAMPSCOTT
            POSITION LIST COMPARISON
              TOWN OF SWAMPSCOTT
            POSITION LIST COMPARISON
                                                  FY 2004           FY2005
                                                  STAFF             STAFF
Department                                         POS.              POS.

Assessing                                                  3         3
Accounting                                                 2         2
Council on Aging                                        2.5        2.5
Town Clerk/Collector                                       3         3
Dept. of Public Works/Building & Grounds               15.5       15.5
Health                                                  2.5        2.5
Administrator’s/Selectmen Office                           2      2.66
Fire Department                                          39        39
Building Department                                        3         3
Library                                                13.5       13.5
Elections                                                  1         1
Technology                                                 1         1
Personnel                                               .66         .5
Veteran’s                                                 .5        .5
Weights & Measures                                        .5        .5
Treasurer                                                  2         2
Police Department                                        36       38*
Harbormaster                                              .5        .5
Recreation                                                 1       1.5
Emergency Management                                      .5        .5
Town Planner                                              .5        .5
GRAND TOTAL                                          130.66      133.66

Totals above do not include school and enterprise fund positions.

Includes full-time and half-time benefited positions (full time equivalent).

Totals do not include any Board or Committee stipends.

*Includes 2 officers previously funded by Federal Grants.




                                      - 17 -
Budget Development
The budget development process is structured to integrate long-term plans and issues with the specific
choices and decisions in the budget. The Town has adopted a number of techniques, including the
Government Finance Officers Association (GFOA) budget format, to enhance the comprehensive and
farsighted nature of the process:

Strategic Budget - Based on Long-Term Policies and Plans - The budget process begins with a
review of the adopted long-term plans including the Five Year Financial Plan, the Five Year Capital
Improvement Plan, and in the future, will include an adopted facilities and services plan for municipal
functions, such as the Open Space and Recreation Plan. The linkage to the long-term plans provides the
strategic context for the budget and reinforces the budget's role of implementing priorities within these
plans.

Financial Context for the Budget - The budget process begins with a rigorous gathering of
information to identify the financial environment for the budget period and for the next four years. The
Five Year Financial Plan provides the focus of the process and includes a comprehensive review of
financial policies, a scan of the economy, development of the revenue estimates and projection analysis
using the five year projection model. The Town Administration and the Town Accountant review this
data in order to develop the budget guidelines and policies that guide the then development of the fiscal
year budget.

The economic scan of the FY 05 Budget indicated that the significant economic growth that has marked
the region has halted. Therefore the budget reflects this change in the projected economic outlook by
limiting growth or reducing expenditures in order to ensure a balanced budget that maintains municipal
service delivery at appropriate levels.

Toward the Future - One outcome of the budget process is to identify issues and challenges that the
Town will address in the upcoming and future fiscal years. Looking beyond the current fiscal year, the
Town has implemented financial reserve policies that are designed to provide the fiscal stability
necessary to insure that the Town is able to meet its commitments to local residents and taxpayers well
into the future. The financial policies reflect a keen awareness of the Town’s past experiences, as well
as the Town’s foremost priority to keep its financial house in order through careful planning and
professional administration.




                                                  - 18 -
Budget Challenges
The FY 05 Budget continues the Town’s efforts to promote a single, “Pro-Swampscott” agenda by
addressing the “Fundamentals,” a set of broad policy statements regarding the Financial, Economic
Development, Neighborhood Enhancement, Community Development, Public Safety and
Governmental Philosophy objectives that have guided the Town, in one form or another. Specifically,
the FY 05 Budget addresses major challenges relating to the Fundamentals, including:

Defining and Managing Budget Issues for FY 05 and Beyond – Normally, defining and managing
budgetary issues in the face of a failing economy would be the single most important challenge facing
any community. Unfortunately, concerns about homeland security may put all else in perspective.
With the realities of the “new world” notwithstanding, the Town is very focused on maintaining fiscal
stability. To accomplish such the FY 05 Budget has been perhaps the most difficult to compile. Yet,
the budget does define the issues that are present and anticipated, constrain spending to meet those
issues and provide for the continued improvement in Town services and benefits to local residents and
taxpayers.

Addressing Homeland Security Issues – Despite the reduction in revenues that left unchecked could
threaten the stability of the Town’s finances, homeland security threats dictate new approaches to
address local public safety issues. The FY 05 Budget is equal to that challenge. Discretionary
spending has been reduced throughout the budget in order to reduce base costs in FY 05 and beyond.

Promote Community Revitalization – From infrastructure improvements, ranging from street and
sidewalk projects to the building of a new High School, the FY 05 Budget facilitates such initiative.
Although additional funding is always helpful, the FY 05 Budget and the goals contained within
demonstrate the Town’s capacity to do more with less by focusing dedicated, innovative and
collaborative programming on the Town’s most pressing issues.

Limiting the Burden on Taxpayers – The FY 05 Budget is in balance and will manage to extend the
Town’s success without the need for Proposition 2 ½ overrides or the adoption of new taxes. The FY
05 Budget, and perhaps more importantly those who assemble and will ultimately adopt the budget, are
cognizant of the impacts the Town’s residents and taxpayers are also feeling as a result of the changing
economy. The Town will continue to not overburden local taxpayers and ratepayers, while
simultaneously produce the level of success that has become the trademark of Swampscott.


Budget Policy Objectives and Related Goals
Notwithstanding the constraints found in this year’s budget process, the FY 05 spending plan will allow
the Town to maintain its commitment to the “Fundamentals,” a set of policy objectives that seek to
promote a single, pro-Swampscott agenda. The primary focus for the Fundamentals include:

   Financial – steadily improving the Town’s financial condition through balancing budgets and
    advancing responsible reserve policies that strengthen local government’s flexibility to act on
    pressing needs while protecting against the impacts of economic downturns that could threaten
    municipal service delivery and the viability of Town government;

                                                  - 19 -
   Economic Development – further supporting the Town through an aggressive agenda that seeks to
    attract new revenues in a variety of forms, including property tax, auto excise tax and building fees;

   Neighborhood Enhancement – continually producing improvements in each and every
    neighborhood of the Town by updating infrastructure through a functioning Capital Improvement
    Program, cleaning streets, enhancing open space, eliminating blight and tackling and resolving
    long-standing problems;

   Community Development – fully encouraging partnerships between Town government and its
    stakeholders in Swampscott’s success, including other governmental entities, the business
    community, non-profit leaders, neighborhood groups and individual residents, in order to support a
    broad array of programs and initiatives that may or may not be Town-run, but are all supportive of
    the Town’s desire to promote the advancement of its families and individual residents over a broad
    range of human needs, including, but not limited to, affordable housing, health care, education and
    job training;

   Public Safety – constantly improving upon the protection of the public and its property by initiating
    policy and providing the necessary resources, be it training, manning or equipment, to effectively
    carry-out the missions of the Town’s law enforcement, fire and emergency management agencies,
    and

   Governmental Philosophy – becoming a more open, responsive and responsible municipal
    government that not only hears the needs of its people, but develops and initiates efforts designed to
    address those needs in a honest, fair, equitable, accountable and cost-efficient manner, while never
    sacrificing good government for the benefit of those whose goals run counter to that of a pro-
    Swampscott agenda.

Given the negative municipal finance, the Financial Fundamental is the primary focus for FY 05.
Among the items the Town has and will continue to undertake to maintain stability through FY 05, are:

   Defining budgetary issues for FY 05 and the following years, understanding the causes and severity
    of projected structural deficits and developing a responsible plan to allow the Town to maintain
    and, where necessary and possible, expand services and programs;

   Managing projected reductions in State Aid and other sources of revenues so as to limit or avoid an
    impact on core municipal services and programs;

   Controlling costs in “non-discretionary” spending areas, including existing employee and other
    contracts, Health and other Insurance premiums, Debt Service and Assessments;

   Constraining “discretionary” spending by reviewing and identifying areas of need and
    prioritization;

   Seeking out increases in and/or developing new revenue sources to offset budget shortfalls, being
    cognizant of revenue raising capabilities and constraints, as well as being sensitive to the impact of
    revenue raising initiatives on taxpayers;


                                                   - 20 -
   Utilizing reserve funds in an appropriate manner to cover the FY 05 budget gap while recognizing
    the need to rely upon reserves for potential out-year shortfalls as well, and

   Continuing the Capital Improvement investments in infrastructure to limit the impact of debt
    service on the budget and to insure a continued CIP.

Not every action of a progressive and innovative municipal government is reliant on direct
appropriation. In fact, financial appropriations aside, the Town expects to carry out and further extend
several important initiatives in FY 05 that are consisted with the non-Financial Fundamentals list
above, including:

   Neighborhood Enhancement projects will continue to be prioritized;

   Public Safety focus continues to be on pressing domestic issues and greater Homeland Security
    needs;

   The Governmental Philosophy that has become embedded in the every action of Town officials will
    be extended through a focus on enhanced communications and a continuing priority on outreach
    and grassroots activism as a means of welcoming more residents into the process of managing their
    government.




                                                  - 21 -
Overall Summary of the Town Budget
The FY 05 Budget for all general Town services and facilities totals $41.7 million. The total includes
$19.7 million in the General Fund budget to support traditional municipal services such as Police,
Public Works, Fire, Library and Non-Appropriated Expenses (ie. Cherry Sheet Assessments and
Assessor’s Overlay Provisions); $4.5 million to support the costs of the Water and Sewer Enterprise
Systems and $17.5 million to support the School Department.

                             FY 05 Town-wide General Fund Revenues

                                                 $37,230,730
                                              Available Funds         Local Receipts
                                                    4.8%      State Aid   8.3%
                                                                9.5%

                                                                          Debt Exclusion
                                                                               2.9%




                                     Taxes
                                     74.5%




                           FY 05 Town-wide General Fund Expenditures

                                                  $37,230,730

                                             Debt Service   Other
                                                7.6%        2.3%
                                   HHS
                                   4.5%
                              Employee
                               Benefits
                                9.8%                                            Education
                                                                                  47.2%



                           General Gov't
                              11.9%


                                      Public Safety
                                                                DPW
                                         13.8%
                                                                2.9%


                                                       - 22 -
General Fund
The General Fund is the basic operating fund of the Town. It is used to account for all financial
resources except those required to be accounted for in another fund (i.e. the Water and Sewer
Enterprise Funds). The total General Fund appropriation is $37,230,730,which is the Town
appropriation of $40,858,657 plus $850,512 for Assessor’s Overlay and Cherry Sheet Assessments and
Offsets less the Water and Sewer Enterprise Funds $4,478,439.

General Fund Budget. The General Fund Budget in FY 05 totals $37.2 million, which is a 1.62 %
increase over FY 04.

Capital Budget and Debt Service. The FY 05 Budget includes $2.2 million in debt service funding as
required under the ongoing Town-wide Capital Improvement Program (CIP) (for further details, see
discussion in the CIP section of this budget document). The Town will continue to make an investment
in this area to avoid having to incur higher costs in the future and therefore reduce the number of annual
capital projects to be undertaken. The current and projected economic climate may cause the Town to
seek to control the cost of debt service as a method of keeping the Town’s budget in balance, in this
case the total committed to this category would decline.



Challenges Addressed in the Fiscal Year 2005 Budget
The FY 05 Budget continues the Town’s efforts to promote a, “Pro-Swampscott” agenda by addressing
the “Fundamentals,” a set of broad policy statements regarding the Financial, Capital Improvements,
Neighborhood Enhancement, Community Development, Public Safety and Governmental Philosophy
objectives that will guide the Town, in one form or another. Although these policy statements overlap
with school specific issues, they are not intended to specifically identify or usurp existing school
department policies, which fall under the jurisdiction of the School Committee. Specifically, the FY 05
Budget addresses major challenges relating to the Fundamentals, including:

Defining and Managing Budget Issues for FY 05 and Beyond – Normally, defining and managing
budgetary issues in the face of a failing economy would be the single most important challenge facing
any community. Unfortunately, concerns about homeland security may put all else in perspective.
With the realities of the “new world” notwithstanding, the Town is very focused on maintaining fiscal
stability. To accomplish such, the FY 05 Budget has been very difficult to compile. Yet, the budget
does define the issues that are present and anticipated, constrain spending to meet those issues and
provide for the continued improvement in Town services and benefits to local residents and taxpayers.


Promote Community Revitalization – From infrastructure improvements, ranging from open space
improvements to the rehabilitation of Town Hall and the Fish House, to the efforts to upgrade the water
meters and billing system, the FY 05 Budget facilitates such initiatives. Although additional funding is
always helpful, the FY 05 Budget and the goals contained within, demonstrate the Town’s capability to


                                                  - 23 -
do more with less by focusing dedicated, innovative and collaborative programming on the Town’s
most pressing issues.

Limiting the Burden on Taxpayers – The FY 05 Budget is in balance and will manage to extend the
Town’s success without the need for Proposition 2 ½ overrides or the adoption of new taxes and fees.
The FY 05 Budget, and perhaps more importantly those who assemble and will ultimately adopt the
budget, are cognizant of the impacts the Town’s residents and taxpayers are also feeling as a result of
the changing economy.

Development of the Fiscal Year 2005 Budget
The budget development process is structured to integrate long-term plans and issues with the specific
choices and decisions in the budget. The Town has adopted a number of techniques, including
enhanced budget format, to enhance the comprehensive and farsighted nature of the process:

Strategic Budget - Based on Long-Term Policies and Plans - The budget process begins with a
review of the adopted long-term plans including the Five Year Financial Forecast and the Five Year
Capital Improvement Plan. The linkage to the long-term plans provides the strategic context for the
budget and reinforces the budget's role of implementing priorities within these plans.

Financial Context for the Budget - The budget process begins with a rigorous gathering of
information to identify the financial environment for the budget period and for the next four years. The
Five Year Financial Forecast provides the focus of the process and includes a comprehensive review of
financial policies, a scan of the economy, development of a revenue estimate and projection analysis
using the five-year projection model. The Town Administrator will review this data in order to develop
the budget guidelines and policies that guide the then development of the fiscal year budget.

The economic scan of the FY 05 Budget indicated that the reduction in regional economic growth that
began in FY04 continues. Therefore the budget reflects this change in the projected economic outlook
by limiting growth or reducing expenditures in order to ensure a balanced budget that maintains
municipal service delivery at appropriate levels.

Toward the Future - One outcome of the budget process is to identify issues and challenges that the
Town will address in the upcoming and future fiscal years. Looking beyond the current fiscal year, the
Town should apply the financial reserve policies identified in the following section that are designed to
provide the fiscal stability necessary to insure that the Town is able to meet its commitments to local
residents and taxpayers well into the future. The financial policies reflect a keen awareness of the
Town’s past experiences, as well as the Town’s foremost priority to keep its financial house in order
through careful planning and professional administration.




                                                  - 24 -
Financial Reserve Policies
Fund balance and reserve policies should be established to protect the Town from unforeseen increases
in expenditures, reductions in revenues, or a combination of both, or any other extraordinary events.
Fund balance and reserve policies also serve to provide an additional source of funding for capital
construction and replacement projects. Reserves should normally average between 5% and 10% of the
Town’s operating budget.

The Town, as recommended by the Finance Committee and authorized by the Town Meeting, has been
steadily building up reserves in anticipation of a time when revenue growth would slow, stop or
decline. The realities of the current economic conditions, however, are having a negative impact on the
Town’s revenue prospects in FY 05 and potentially for several additional fiscal years thereafter.
Reserves, therefore, will now be used, in thoughtful combination with budget cuts, workforce
reductions or reorganizations and other budgeting techniques, to maintain order in the municipal budget
and allow for a smooth transition through the turbulent times that currently exist.

There are two classes of reserves: 1) restricted reserves which are to be utilized only for purposes
designated, and 2) unrestricted reserves which can be utilized at the discretion of authorized personnel.
Reserve policies cover operating reserves, which provide for unanticipated expenditures or unexpected
revenue losses during the year. Capital reserves, which provide for the normal replacement of existing
capital plan and the financing of capital improvements. Cash flow reserves, which provide sufficient
cash flow for daily financial needs. Contingency reserves, which provide for unanticipated
expenditures. The policies presented here are categorized in the following sections:

   Operating
     Undesignated Fund Balance
     Free Cash
     Reserve Fund
    Stabilization Fund




                                                  - 25 -
Operating
The maintenance of adequate operating reserves is essential to the financial strength and flexibility of
the Town as a whole. Adequate operating reserves are integral parts of the financial structure of the
Town and help make it possible for the Town to issue debt, among many other functions.

Undesignated Fund Balance
Operating fund balance shall be maintained at sufficient levels to absorb unpredictable revenue
shortfalls and to insure desired cash flow levels. With regard to the General Fund, cash balances
available at year-end shall, in combination with new revenues be sufficient to preclude any requirement
for short-term debt to sustain Town operations. Should this fund balance fall below 5% of the "Fund
Balance Floor," defined as revenues less Chapter 70 school aid, a plan for expenditure reductions
and/or revenue increases shall be submitted to the Town Administrator from the Town Accountant
during the next budget cycle.

What is considered the minimum level necessary to maintain the Town's credit worthiness and to
adequately address provisions for a) economic uncertainties, local disasters, and other financial
hardships or downturns in the local or national economy and b) cash flow requirements, c) In addition
to the designations noted in (a) and (b) above, fund balance levels shall be sufficient to meet funding
requirements for prior year approved projects which are carried forward into the new year, debt service
reserve requirements, reserves for encumbrances, and other reserves as required by contractual
obligations or generally accepted accounting principles.

Free Cash Reserves
This reserve provides for the temporary financing of unforeseen opportunities or needs of an
emergency nature including increases in service delivery costs. This is the portion of undesignated
fund balance certified by the Department of Revenue, Division of Local Services, as “Free Cash.”
Monies held in this reserve may be appropriated during the current budget year and may also be used as
a source of revenues for the ensuing budget year. Of all general fund reserves this is the most flexible.

Reserve Fund
The Town shall establish and maintain an operating Contingency Reserve, which will provide for
emergency expenditures and unanticipated revenue shortfalls. These funds will be used to avoid
cash-flow interruptions, generate interest income and eliminate need for short-term borrowing and
assist in maintaining an investment-grade bond rating. This reserve will be based upon a target 1% of
budgeted expenditures in the General Fund. For reserve purposes, budgeting expenses are calculated
upon the funds' total operating expense budget, excluding, ending fund balances, capital purchases,
debt service for capital improvements and the current years portion of principal and interest paid on
outstanding school debt. The actual reserve level is determined as part of the budget adoption
process.




                                                   - 26 -
Stabilization Fund

The purpose of this reserve is to provide long term financial stability for the Town while improving the
Town’s credit worthiness and flexibility. The provisions for this fund are dictated by Chapter 40
Section 5B of Massachusetts General Law. This fund may be appropriated for any purpose for which
the Town would be authorized to borrow money under Section seven or eight of Chapter 44 of MGL or
for any other lawful purpose. However at no time can an appropriation into this fund exceed 10%
of the previous years real property tax levy or can the fund exceed 10% of the equalized value of
the Town.

Appropriations from this fund are governed by statute and require a two-thirds affirmative vote of
Town Meeting.




                                                  - 27 -
Enterprise Funds – Water and Sewer
The Water and Sewer Enterprise Funds are used to account for the operations and maintenance of the
Town’s water and sewer systems. Separate funds exist to support water-related and sewer-related
needs. Both funds are financed by charges for services and miscellaneous revenue. The total
appropriation for FY 05 is $4,478,439.


                             FY 05 Enterprise Fund Revenue Sources

                                            $4,478,439




                                                                     User Fees
                                                                      100.0%




                                 FY 05 Enterprise Fund Expenses


                                            $4,478,439


                            Lynn Sewer
                              20.1%
                                                                                 MWRA
                                                                                 33.5%




                        Direct
                        19.9%

                                 Indirect
                                  9.3%                              Debt
                                                                   17.2%
                                                - 28 -
Stabilization Funds
Town Stabilization Fund
This fund is a statutory reserve account, which may be used for any municipal purpose. This fund
requires a two-thirds affirmative vote by the Town Meeting to appropriate. The FY05 Budget does not
make a contribution to this fund and requests a use of $400,000 to bridge a budgetary shortfall.

Fund balance as of June 30, 2003                           $ 807,326
Projected FY04 revenues and other financing sources        $ 18,000
                                                           ========
Projected Fund Balance as of June 30, 2004                 $ 825,326
Projected FY05 expenditures                                $ 450,000
                                                           ========
Projected Fund Balance as of June 30, 2004                 $ 375,326

Undesignated Fund Balance

The General Fund budget includes expenditures that are financed through transfers from other funds,
such as Water and Sewer Enterprise funds.

Fund balance as of June 30, 2003                           $ 1,074,138
Projected FY04 revenues and other financing sources        $ 36,636,016
Projected FY04 expenditures and other financing uses       $ (36,595,000)
                                                           ==========
Projected Fund Balance as of June 30, 2004                 $ 1,115,154




                                                - 29 -
Financial Plan General Fund

Overview

General Fund Budget Summary
A key component of the budget development process is the identification of revenue assumptions and
projections to determine the range of choices that the Town Administrator can make in allocating
resources. The Town's revenue plans attempt to balance the desire to reduce the impact of government
cost on the taxpayer, to provide for a relatively stable and diversified revenue portfolio that is not
highly subject to economic fluctuations, and to equate the cost of services to the revenues received.
Because of the critical nature of this information the revenue analysis and the revenue projections are
monitored, updated and presented to the Town Administrator on a monthly basis. If significant changes
in revenue streams were to present the potential for shortfalls, this process would allow for the action(s)
to be made in time to maintain fiscal stability.

The Town does not have the statutory ability to change rates and formulas for many of its revenue
sources. The rates and/or formulas for property tax and certain fines, for example, are set by the State.
User fees, permits and licenses may be set by the Town. In 1980, the voters approved a statewide
property tax initiative, Proposition 2 1/2. Prop. 2 1/2 established, among several restrictions, a "2 ½
percent cap" on property taxes increases in all local taxing districts in the State.

Town revenues are divided into six basic categories recommended by the National Committee on
Governmental Accounting. The categories are taxes, charges for services, licenses and permits, fines
and forfeits, intergovernmental revenue, and miscellaneous revenue. The following is a discussion of
the Town’s projections for those categories in FY 05.

TAXES

Real and Personal Property Tax

Although the significance as a percentage of all revenues can greatly differ from community to
community, a primary source of revenue for municipalities in the Commonwealth is real and personal
property taxes. For purposes of taxation, real property includes land, buildings and improvements
erected or affixed to land and personal property consists of stock, inventory, furniture, fixtures and
machinery. The Town's Board of Assessors determines the value of all taxable land, which is revalued
at fair market value every three years and updated every year. The Town of Swampscott revalued all
real property in FY 02. FY 05 is the next scheduled revaluation year for the Town, however, the Town
completed an interim year factoring in FY 04adjusting property values to within 90% of market value.
The Town’s Board of Assessors is also responsible for determining the value of personal property
through an annual review process.




                                                   - 30 -
Major Changes:

There are three major factors that influence the amount of revenue generated by real and personal
property taxes:

1. Automatic 2.5% Increase – The levy limit is the maximum amount that can be collected through real
and personal property taxes by the municipality. Each year, a community’s levy limit automatically
increases by 2.5% over the previous year’s levy limit. This increase, which does not require any action
on the part of local officials, is estimated to be $670,260 for FY 05.

2. New Growth – A community is able to increase its tax levy limit each year to reflect new growth in
the tax base. Assessors are required to submit information on growth in the tax base for approval by the
MA Department of Revenue as part of the tax rate setting process. In FY 05, based on current trends,
new growth is estimated to be $250,000.

3. Overrides/Exclusions – A community can permanently increase its levy limit by successfully voting
an override. Debt and Capital exclusions, on the other hand, are temporary increases in a community’s
levy limit for the life of the project or debt service. Only a Debt or Capital exclusion can cause the tax
levy to exceed the levy ceiling. The levy ceiling is 2.5% of the valuation of the community. The ceiling
for the Town in FY 04 was $54,699,447. As the following shows, the Town is substantially under its
levy ceiling.


                                                                                                 % Change
Year to Year Comparison      FY 01         FY 02          FY 03       FY 04          FY 05      FY 04 – FY 05
Tax Levy (per RECAP)        $22,796,791   $26,056,504     $27,015,439 $27,972,879   $28,821,628*     3.0%

*Estimated


                  $60,000,000
                  $50,000,000
                  $40,000,000
                  $30,000,000
                  $20,000,000
                  $10,000,000
                                 FY 01       FY 02         FY 03     FY 04      FY05




                                                        - 31 -
Motor Vehicle Excise Tax Receipts - State law (Proposition 2 ½) sets the motor vehicle excise rate at
$25 per $1000 valuation. The Town collects these monies based on data provided by the
Massachusetts Registry of Motor Vehicles. The Registry, using a statutory formula based on a
manufacturer’s list price and year of manufacture, determines valuations. The Town or town in which a
vehicle is principally garaged at the time of registration collects the motor vehicle excise tax.
The motor vehicle excise system was one of the first applications transferred to the Town's computer
system. Accounts are updated nightly, all processes and delinquent notices are automated and
information is provided to the deputy collectors on a quicker and more accurate basis.

In January 1992, the Registry of Motor Vehicles implemented a new computer tracking system that will
force auto owners to pay their excise taxes. Those who do not pay will not be allowed to renew
registrations and licenses. Cities and towns must notify the Registry of delinquent taxpayers and the
Town currently prepares an excise collection report on computer tape for the Registry of Motor
Vehicles.

Major Changes:

This revenue source had expanded in recent years, due to a partial economic recovery. The Town used
conservative budgeting practices in previous years excise receipts and receipts are expected to remain
level in FY 05.

                                                                                          % Change
Year to Year Comparison   FY 01        FY 02       FY 03        FY 04       FY 05        FY 04 – FY 05
Motor Vehicle Excise    $1,759,513   $1,694,117 $1,776,163   $1,800,000*   $1,800,000*        0%

*Estimated

               $2,000,000
               $1,900,000
               $1,800,000
               $1,700,000
               $1,600,000
               $1,500,000
                             FY 01       FY 02      FY 03        FY 04       FY 05




Penalties and Delinquent Interest - This category includes delinquent interest on all taxes and tax title
accounts. It also contains demand fees on real and personal property taxes as well as demands and
warrants on late motor vehicle excise taxes.

Delinquent Interest and Penalty Charges - The Town receives interest on overdue taxes and excises.
Interest rates for overdue real and personal property taxes are 14%, and for tax title accounts, 16%. The
interest rate for delinquent excise tax accounts is 12% from the due date. If real and personal property
taxes are not paid by May 1, in the year of the tax, a demand for payment notice ($5) is sent to all
delinquent taxpayers. Delinquent motor vehicle taxpayers are sent a demand ($5), a warrant ($5), and
two separate notices from a deputy tax collector ($9 and $14). The deputy collector's earnings come
solely from delinquent penalty charges, and not from any salary or other form of compensation.

                                                  - 32 -
Demands are ($5) and warrants are not issued for delinquent water/sewer service accounts, which are
subject to a lien on the real estate tax bill. Once a delinquent real estate account goes into a process of
tax title, there are other fees added to the property tax bills. These charges include the cost of recording
the redemption ($10/20) and demand notices.

In Lieu Of Tax Payments - Many communities, Swampscott included, are not able to put all the
property within its borders to productive, tax generating uses. Federal, state and municipal facilities,
hospitals, churches and colleges are examples of uses that are typically exempt from local property tax
payments. The Town currently negotiates with one entity for a PILOT payment of $8,075 per year.

Municipal Lien Certificates - The Town Collector issues a certificate indicating any amount owned
on a particular parcel of property to an individual requesting the information within five days of the
request. The cost per certificate is $25 per parcel

LICENSES AND PERMITS / SUMMARY

Licenses - License revenue arises from the Town's regulation of certain activities (e.g., selling
alcoholic beverages). A person or organization pays a license fee to engage in the activity for a
specified period. The primary licensing agency in the Town is the Board of Selectmen. All fees are set
by one of three methods: State law, Town By-Law or Licensing Body.

Permits - Permits are also required when a person or business wants to perform a municipally
regulated activity (e.g., building, electrical, or plumbing services). The bulk of the permit revenue is
brought in through building permits, collected by the Building Department. All construction and
development in the Town must be issued a building permit based on the cost of construction. The
Board of Selectmen adopted a revised permit fee schedule in Fiscal 2004.

The most common licenses and permits are briefly described on the following pages. A complete fee
schedule is available from the Board of Selectmen and the Building Department.

Liquor Licenses - Under Chapter 138 of the General Laws of Massachusetts, the Town is empowered
to grant licenses regulating the sale of alcoholic beverages. License fees vary depending upon the type
of establishment, closing hours, number of days open, and whether the licenses is for all alcohol or beer
and wine. All licenses issued by the Board of Selectmen, with the exception of short-term and seasonal
liquor licenses, have a maximum fee set by State statute.

The Town may issue liquor licenses within the limits of the State quota system, which is based on
population. The Town was already under the quota when the population increase revealed in the 2000
US Census increased the licenses available to the Town by seven. Short-term and seasonal licenses
carry a fee and do not fall under the State cap. Total revenue from short-term licenses will depend on
the number and length of events that receive licenses.

Common Victualer - The common victualer license allows food to be made and sold on the premises.

Entertainment - Entertainment licenses are issued for live performances, movie theaters, automatic
amusement machines, billiard tables, bowling alleys, and several other forms of entertainment.


                                                   - 33 -
Building Permits - Building permits are issued to qualified individuals and companies to do repairs,
alterations, new construction, or demolitions in the Town. The cost of permits is based on the
estimated cost of the project or by a set fee.

Electrical Permits - Electrical permits are issued to licensed electricians to perform specific electrical
work. The cost of permits is based on the estimated cost of the project or by a set fee.

Plumbing Permits - Plumbing permits are issued to licensed plumbers to install and repair piping for a
specific job. The fee is based on the amount and type of work being done.

Weights & Measures - Weights & Measures permits are issued for scales, gas pumps and other
measuring devices.

Town Clerk Licenses & Permits - The Town Clerk issues licenses and permits primarily relating to
marriages, births, deaths and dog registrations.

Other Departmental Permits - Other Departments issue various permits including smoke detector, LP
gas, underground tank installation and removal, firearms, parking and street opening.

Major Changes:

During Fiscal 2004, the Board of Selectmen adjusted License and Permit Fees in almost all categories
based upon an analysis of similar fees in surrounding communities.

                                                                                       % Change
Year to Year Comparison     FY 01      FY 02      FY 03       FY 04        FY 05      FY 04 – FY 05
Licenses and Permits       $253,059   $162,204   $166,963    $175,000*    $175,000*         0%

*Estimated


                $300,000

                $250,000

                $200,000

                $150,000

                $100,000

                 $50,000
                             FY 01       FY 02      FY 03       FY 04        FY 05




                                                   - 34 -
FINES AND FORFEITS

Parking Fines - The collection of outstanding parking fines continues to be an important source of
revenue to the Town. Parking violation revenues are used to partially fund the budgets of many Town
departments. The timely collection of fines has been aided by automation, and by State law that
violators are prohibited from renewing their driver’s licenses and registrations until all outstanding
tickets are paid in full.

Major Changes:

Under the Municipal Relief Package passed by the legislature and signed by Gov. Romney increases
the amount of fines which may be collected for violations of any regulations, orders, ordinances or
bylaws regulating parking of motor vehicles. The Town has brought the functions of Parking Clerk
back into town hall.

                                                                                         % Change
Year to Year Comparison        FY 01     FY 02       FY 03       FY 04      FY 05       FY 04 – FY 05
Parking Fines/                $63,413   $74,119     $96,398     $96,398*    $96,398*          0%


                $120,000
                $100,000
                    $80,000
                    $60,000
                    $40,000
                    $20,000
                        $0
                               FY 01     FY 02        FY 03       FY 04        FY 05


Moving Violations
*Estimated

Moving Violations - Non-parking offenses result in fines for moving violations. Responding to the
community’s desires and public safety concerns that mostly focused on speeding violations in local
neighborhoods. Among the violations included in this category are speeding, passing in the wrong
lane, and failing to stop at the traffic signal. These fines, collected by the District Court, are distributed
to the Town on a monthly basis.

INTERGOVERNMENTAL REVENUE

Cherry Sheet - State Cherry Sheet revenue funds are the primary intergovernmental revenue and in the
case of many cities, Swampscott included, the single largest source of annual revenue. Cherry Sheet
revenue consists of direct school aid, local aid, and specific reimbursements and distributions such as
aid to public libraries, veteran's benefits, police career incentives, and a number of school related items.
For the FY 05 budget process, the Town projected level funded of Cherry Sheet revenues based on
conservative assumptions offered by State budget leaders.

Every year the Commonwealth sends out to each municipality a "Cherry Sheet", named for the pink-
colored paper on which it was originally printed. The Cherry sheet comes in two parts, one listing the

                                                    - 35 -
State assessments to municipalities for MBTA, MAPC, air pollution control districts, and the other
State programs; the other section lists the financial aid the Town will receive from the State for funding
local programs. Each Cherry Sheet receipt is detailed on the following pages.

School Aid - Chapter 70 school aid is based on a complex formula that takes into account: (1)
statewide average cost per pupil; (2) local district pupil counts, with weighing factors to reflect varying
costs among programs such as special education or vocational education, and (3) municipal fiscal
"ability to pay" for education, as measured by equalized valuation per capita as a percent of statewide
averages.

Major Changes:

Chapter 70 state aid was decreased when the final state budget was approved.

                                                                                                  % Change
Year to Year Comparison   FY 01         FY02            FY 03          FY 04          FY 05     FY 04 – FY 05
Chapter 70              $2,199,779    $2,431,038      $2,431,038     $1,944,830     $1,944,830*        0%
*Estimated

             $4,000,000
             $3,500,000
             $3,000,000
             $2,500,000
             $2,000,000
             $1,500,000
             $1,000,000
                            FY 01      FY 02         FY 03         FY 04          FY05


Local Aid - The major non-school state aid items are Lottery Aid and Additional Assistance. These
funds are unrestricted and can therefore be used by the municipality for any municipal purpose.

Major Changes:

The decrease reflects the Town's portion of the statewide decrease in lottery profits.

                                                                                                  % Change
Year to Year Comparison       FY 01    FY 02          FY 03      FY 04             FY 05        FY 04 – FY 05
Lottery                     $987,687 $1,049,552    $1,049,552  $892,119           $892,119*          0%
Additional Assistance       $443,359 $ 443,359     $ 414,504   $352,328           $352,328*          0%
                          ___________ _________    __________ __________          _________       ______
Total                     $1,431,046 $1,492,911    $1,464,056 $1,244,447          $1,244,447         0%

*Estimated




                                                     - 36 -
                $1,550,000
                $1,500,000
                $1,450,000
                $1,400,000
                $1,350,000
                $1,300,000
                $1,250,000
                $1,200,000
                $1,150,000
                $1,100,000
                             FY 01       FY 02       FY 03      FY 04      FY 05




School Transportation - Under Chapter 71, Section 7A, municipalities are reimbursed for prior year
expenses for general pupil transportation. Reimbursement is provided only for pupils transported more
than 1.5 miles, one way, to and from school, and is subject to a $5 per pupil local share deductible.
Chapter 71A, Section 8, and Chapter 71B, Sections 13 and 4, reimburse for bilingual and special needs
transportation, with special needs transportation not being subject to the 1.5 mile requirement. Chapter
71, Section 37D, reimburses for the costs of transporting pupils for the purpose of eliminating racial
isolation and imbalance, also without a mileage requirement.

School Construction - The School Assistance Act, as amended, provides for the reimbursement of
school construction projects that involve any of the following: The replacement of unsound or unsafe
buildings; the prevention or elimination of overcrowding; prevention of the loss of accreditation;
energy conservation projects, and the replacement of, or remedying of, obsolete buildings. The law
also provides formulas (involving equalized valuation, school population, construction costs, and
interest payments) for reimbursement of costs that include fees, site development, construction, and
original equipping of the school.

Police Career Incentive - Under Chapter 41 of the General Laws, members of participating police
departments receive a salary increase predicated on the amount of college credits earned toward a law
enforcement degree. The Commonwealth reimburses municipalities for one-half of this salary increase.
Under the revised law, officers are awarded a ten-percent increase in their base pay for an Associate's
Degree, a twenty percent increase for a Bachelor's degree and a twenty-five percent increase for a
Master's degree.

Veterans' Benefits and Aid to Needy Dependents of Veterans - Under Chapter 115, Section 6,
municipalities receive a seventy-five percent State reimbursement on the total expenditures made on
veterans’ benefits.

Highway Fund Distribution - Chapter 81, Section 31, of the Mass. General Laws directs funds from
the State’s highway fund reimbursement municipalities for certain roadway projects.

Real Estate Abatements - The State Cherry Sheet reimburses the Town for loss of taxes due to real
estate abatements to veterans, surviving spouses and the legally blind. The abatement categories are
authorized by the State. The Town is not empowered to offer abatements in other categories. Under
Chapter 59, Section 5, of the General Laws, municipalities are reimbursed for amounts abated in excess
of $175 of taxes of $2,000 in valuation times the rate, whichever is greater. Qualifying veterans or
                                                  - 37 -
their surviving spouse receive an abatement of $175 or $2,000 in valuation times the tax rate,
whichever is the greater. Chapter 59, Section 5, Clause 17c, of the General Laws, as amended by
Section 2, Chapter 653 of the Acts of 1982, provides a flat $175 in tax relief to certain persons over
seventy, minors, and widows/widowers. Chapter 59, Section 5, Clause 37a, of the General Laws as
amended by Section 258 of the Acts of 1982 provides an abatement of $500 for the legally blind.

Elderly Exemption - Under Chapter 59, Section 5, Clause 41b, of the General Laws as amended by
Section 5, of Chapter 653 of the Acts of 1982, qualifying persons over seventy years of age are eligible
to receive a flat tax exemption of $500.

State Owned Land - The State reimburses communities in which certain types of state owned land is
located. Payment is for the amount of tax on the land only if the parcel were held privately, not for
buildings or any other improvements erected on or affixed to the land.

MISCELLANEOUS REVENUE

Interest On Investments - Under Chapter 44 Section 55B of the Mass. General Laws, all monies held
in the name of the Town which are not required to be kept liquid for purposes of distribution shall be
invested in such manner as to require the payment of interest on the money at the highest possible rate
reasonably available. The investment decision must take into account safety, liquidity and yield.

Major Changes:

Interest rates on investments have significantly decreased during the past few years since 9/11. The
overall cash balance of the Town is expected to decrease during FY 05 as: 1) the Town uses reserves to
balance the budget, and 2) the prime rate continues to hover around a ten year low.

                                                                                     % Change
Year to Year Comparison   FY 01       FY 02       FY 03        FY 04       FY 05    FY 04 – FY 05_
Interest on Investments $426,987     $177,016   $131,517     $135,000*    $135,000*       0%

*Estimated



                $500,000

                $400,000

                $300,000

                $200,000

                $100,000

                      $0
                             FY 01      FY 02        FY 03        FY 04       FY 05




                                                   - 38 -
                                                - 39 -
                                                                                                   LICENSES AND PERMITS
                                                                                                   LICENSES ALCOHOLIC BEVERAGES 121,720
                                                                                                   LICENSES COMMON VICTUALERS
                                                                                                   PERMIT ALTERATIONS/SIG.




                                                                                                   LICENSES VARIOUS CLERK
                                                                                                   LICENSES HACKNEY




                                                                                                   LICENSES VARIOUS
                                                                                                   LICENSES AUTOMOBILES



                                                                                                   LICENSES PETROLEUM STORAGE
                                                                                                   LICENSES ROOMING HOUSES

                                                                                                   LICENSES BUSINESS CERTIFICATES 3,840
                                                                                                   LICENSES FUNERAL DIRECTOR
                                                                                                                                 213,175




                                                                                                                                  12,079
                                                                                                                                  24,490
                                                                                                                                  61,200
                                                                                                                                   4,810




                                                                                                                                   9,725
                                                                                                                                   2,395


                                                                                                                                   1,065
                                                                                                                                     275
                                                                                                                                             221,047




                                                                                                                                             120,660
                                                                                                   PERMIT CERT. OF OCCUPANCY
                                                                                                   PERMIT ELECTRICAL
                                                                                                   PERMIT COPIES/RESARCH PLANS
                                                                                                   PERMIT CERT. OF INSPECTION

                                                                                                   PERMIT NEW BUILDINGS
                                                                                                                                  16,740
                                                                                                                                  39,111
                                                                                                                                   9,845
                                                                                                                                   8,456
                                                                                                                                     231


                                                                                                                                             345,465
                                                                                                                                              62,372
                                                                                                                                              11,297




                                                                                                                                              11,398
                                                                                                                                              10,577




                                                                                                                                              33,413
                                                                                                                                              61,150
                                                                                                                                               1,125
                                                                                                                                               4,710




                                                                                                                                               3,775
                                                                                                                                               2,860


                                                                                                                                               3,980
                                                                                                                                                 450




                                                                                                                                                        110,000
                                                                                                                                                        160,000




                                                                                                                                                         25,000
                                                                                                                                                         60,000

                                                                                                                                                         10,000
                                                                                                                                                          5,000
                                                                                                                                                          1,000
                                                                                                                                                          1,125
                                                                                                                                                          4,000
                                                                                                                                                          2,200



                                                                                                                                                          2,500
                                                                                                                                                                    160,000




                                                                                                                                                                    110,000          0
                                                                                                   PERMIT SIDWK/STREET
                                                                                                   PERMIT GAS/PLUMBING



                                                                                                                                                         50,000
                                                                                                                                                         15,000




                                                                                                                                                                     60,000
                                                                                                                                                                     25,000
                                                                                                                                                                     10,000
                                                                                                                                                                      1,125
                                                                                                                                                                      4,000
                                                                                                                                                                      2,200



                                                                                                                                                                      2,500
                                                                                                                                                                      1,000




                                                                                                                                                                      5,000
                                                                                                                                                                                     0
                                                                                                                                                                                     0

                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0




                                                                                                                                                                                     0

                                                                                                                                                                                     0
                                                                                                                                                                                     0




                                                                                                                                                                                          0.0%
                                                                                                   PERMITS FIREARMS




                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%


                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%




                                                                                                                                                                                          0.0%
                                                                                                   PERMIT BURIAL




                                                                                                   PERMIT CERT. OF FITNESS
                                                                                                   PERMIT TEMPORARY
                                                                                                   PERMIT WGHTS & MEASURES



                                                                                                   PERMIT BARS & CLUBS

                                                                                                   PERMIT SALE OF FOOD
                                                                                                   PERMIT POOLS/BATHS/TANNING
                                                                                                   PERMIT DUMPSTERS
                                                                                                   PERMITS SMOKE INSPECTION




                                                                                                   PERMIT CATERERS
                                                                                                   PERMIT TABACCO




                                                                                                                                                                                          0.0%
                                                                                                   PERMITS QUARTERLY INSP. FIRE




                                                                                                                                  30,125

                                                                                                                                  28,050
                                                                                                                                  28,925


                                                                                                                                  17,840
                                                                                                                                   2,140
                                                                                                                                   1,300
                                                                                                                                   1,500
                                                                                                                                     920



                                                                                                                                     625
                                                                                                                                     600
                                                                                                                                              31,375


                                                                                                                                              24,981


                                                                                                                                              17,880
                                                                                                                                              28,252


                                                                                                                                               2,600

                                                                                                                                                  74

                                                                                                                                                         40,000
                                                                                                                                                         20,000

                                                                                                                                                          8,000
                                                                                                                                                          1,500

                                                                                                                                                              0
                                                                                                                                  11,920
                                                                                                                                  14,210

                                                                                                                                   3,400
                                                                                                                                   2,275
                                                                                                                                       0
                                                                                                                                              14,890
                                                                                                                                              11,102




                                                                                                                                               2,000
                                                                                                                                               1,425
                                                                                                                                               2,645

                                                                                                                                                 625



                                                                                                                                                 350
                                                                                                                                                 800
                                                                                                                                                  50




                                                                                                                                                         25,000
                                                                                                                                                          2,000
                                                                                                                                                                     25,000
                                                                                                                                                   0




                                                                                                                                                         20,000
                                                                                                                                                         27,000
                                                                                                                                                         15,000
                                                                                                                                                          8,500

                                                                                                                                                          2,000
                                                                                                                                                          3,000


                                                                                                                                                            600

                                                                                                                                                            350
                                                                                                                                                            650
                                                                                                                                                            250
                                                                                                                                                              0




                                                                                                                                                                     20,000
                                                                                                                                                                     27,000
                                                                                                                                                                     15,000




                                                                                                                                                                     15,000
                                                                                                                                                                     75,000
                                                                                                                                                                     40,000
                                                                                                                                                                     20,000

                                                                                                                                                                      8,000
                                                                                                                                                                      1,500
                                                                                                                                                                      2,000
                                                                                                                                                                        350




                                                                                                                                                                          0


                                                                                                                                                                                25,000
                                                                                                                                                                      3,000


                                                                                                                                                                        600
                                                                                                                                                                        250
                                                                                                                                                                        650
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0



                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0




                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                         50.0%
                                                                                                                                                                                          0.0%




                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%



                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                           N/A
                                                                                                   TOTAL LICENSES AND PERMITS


                                                                                                   PERMITS MISC. FIRE
                                                                                                   PERMIT PARKING


                                                                                                   PERMITS TANK TRUCK INSPECT.
                                                                                                   PERMITS BURNER INSPECTION
                                                                                                   PERMIT STRET OPENINGS DPW
                                                                                                                                 696,248



                                                                                                                                   6,800
                                                                                                                                   6,438

                                                                                                                                   3,269

                                                                                                                                   1,075
                                                                                                                                   5,680
                                                                                                                                           1,055,079
                                                                                                                                               8,926

                                                                                                                                               3,950
                                                                                                                                               7,800


                                                                                                                                                 925
                                                                                                                                                 150
                                                                                                                                                        635,975


                                                                                                                                                          2,300
                                                                                                                                                          5,500
                                                                                                                                                          5,000


                                                                                                                                                          2,500
                                                                                                                                                          1,000
                                                                                                                                                                    660,975



                                                                                                                                                                      2,500
                                                                                                                                                                      5,000
                                                                                                                                                                      5,500




                                                                                                                                                                      2,000
                                                                                                                                                                      2,300



                                                                                                                                                                      8,500
                                                                                                                                                                      1,000
                                                                                                                                                                          0
                                                                                                                                                                                25,000


                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0



                                                                                                                                                                                     0
                                                                                                                                                                                     0


                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                     0


                                                                                                                                                                                     0




                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          3.9%




                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%
                                                                                                                                                                                          0.0%




                                                                                                                                                                                           N/A
                                                                                                   FINES
                                                                                                   FINES CMVI
                                                                                                   FINES BAD CHECKS




                                                                                                   FINES NON CRIMINAL CLERK
                                                                                                   TOTAL FINES & FORFEITS




                                                                                                   FINES 21D
                                                                                                   FINES ALARM MALFUNCTIONS FIRE


                                                                                                   FINES LIBRARY
                                                                                                   COURT FINES



                                                                                                   FINES PARKING TICKETS
                                                                                                   FINES TOWING
                                                                                                                               1,247,149




                                                                                                                               1,049,726



                                                                                                                                 100,100
                                                                                                                                  12,120
                                                                                                                                  71,767

                                                                                                                                   2,289
                                                                                                                                   1,782
                                                                                                                                   9,365




                                                                                                                                       0
                                                                                                                                       0

                                                                                                                                           1,097,926
                                                                                                                                           1,319,264
                                                                                                                                              15,896




                                                                                                                                              96,550
                                                                                                                                              84,059



                                                                                                                                              20,046
                                                                                                                                               2,228
                                                                                                                                               2,559




                                                                                                                                                   0
                                                                                                                                                   0

                                                                                                                                                       1,100,000
                                                                                                                                                       1,332,000




                                                                                                                                                         170,000
                                                                                                                                                          10,000


                                                                                                                                                          40,000



                                                                                                                                                          10,000
                                                                                                                                                           1,000
                                                                                                                                                           1,000




                                                                                                                                                               0
                                                                                                                                                               0
                                                                                                                                                                   1,907,000




                                                                                                                                                                   1,560,000



                                                                                                                                                                     250,000
                                                                                                                                                                      10,000
                                                                                                                                                                      65,000
                                                                                                                                                                      20,000
                                                                                                                                                                       1,000



                                                                                                                                                                       1,000
                                                                                                                                                                           0



                                                                                                                                                                           0
                                                                                                                                                                               460,000
                                                                                                                                                                               575,000



                                                                                                                                                                                25,000




                                                                                                                                                                                80,000
                                                                                                                                                                                10,000

                                                                                                                                                                                     0
                                                                                                                                                                                     0



                                                                                                                                                                                     0

                                                                                                                                                                                     0
                                                                                                                                                                                     0
                                                                                                                                                                                         100.0%
                                                                                                                                                                                          43.2%




                                                                                                                                                                                          47.1%
                                                                                                                                                                                          62.5%
                                                                                                                                                                                          41.8%


                                                                                                                                                                                           0.0%
                                                                                                                                                                                           0.0%



                                                                                                                                                                                           0.0%
                                                                                                                                                                                            N/A
                                                                                                                                                                                            N/A
systems.
reimbursements for employee benefits and maintenance of the Water and Sewer accounting and billing
Treasury, Personnel, Law and the Town Clerk/Collector. Additional, enterprise funds provide
Town services, including those offered by Technology, the Accountant, the Town Administrator,
sewer usage charges, provide reimbursements for direct and indirect costs associated with a variety of
Water and Sewer Fund Transfer - The Water and Sewer Enterprise Funds, financed by water and
                                        INTERGOVERNMENTAL / INTERFUND TRANSFERS
General Fund Expenditures
                          EXPENDITURE SUMMARY
                     SUMMARY OF EXPENDITURE CHANGES

                                                ADOPTED       PROPOSED
                                  ACTUAL        BUDGET         BUDGET
                                   FY 03          FY 04         FY 05
   GENERAL GOVERNMENT
    Finance Committee                     650            0            275
    Selectmen                          14,100       10,350         10,850
    Town Administrator                160,000      159,736        164,229
    Law Department                     59,000       55,000         55,000
    Parking                                 1        7,500          7,500
    Workers' Compensation            330,500       290,000        280,000
    Personnel Department                    0            0         21,810
    Accounting                        355,319      295,098        198,120
    Technology                        131,739      136,190        130,000
    Treasurer                          49,575       99,610        105,654
    Clerk/Collector                   181,295      180,591        179,332
    Election                           55,891       53,058         55,491
    Assessors                         161,672      155,906        155,906
    Zoning Board of Appeals             7,085        7,085          7,085
    Planning Board                      1,500          500         31,000
    Contributory Retirement         1,993,441     1,998,870      2,260,438
    Non-Contributory Retirement       249,000       228,000        220,000
   Total General Government        3,750,768     3,677,494      3,882,690

   PUBLIC SAFETY
    Police Department               2,544,263    2,573,378      2,573,378
    Fire Department                 2,299,236    2,393,529      2,390,528
    Harbormaster                       10,764        9,264          9,832
    Emergency Management                4,684        4,684          4,684
    Weights & Measures                  6,685        6,685          6,747
    Constable                             100           100            100
    Building Inspector                163,873       154,433        157,968
    Conservation Commission               800           800            800
   Total Public Safety             5,030,405     5,142,873      5,144,037

   EDUCATION
    Northshore Tech                    97,032      136,000        128,000
    School Department              17,348,230   17,404,230     17,554,230
   Total Education                17,445,262    17,540,230     17,682,230

   PUBLIC WORKS
    Highway                           808,562       818,812        778,782
    Building & Grounds                210,555       202,892        168,930
    Special Accounts                  162,000       147,500        147,500
   Total Public Works              1,181,117     1,169,204      1,095,212




                                      - 40 -
                            - 41 -
                                                                      EMERGENCY MANAGEMENT
                                                                      MEDICAID
                                                                      STATE LAND




                                                                      CHAPTER 1 REIMBURSE
                                                                      ELDERLY ABATEMENTS



                                                                      MISC STATE
                                                                      BLIND ABATEMENTS

                                                                      VETERANS ABATEMENTS
                                                                      SURVIVING SPOUSE ABATEMENTS




                                                                      INTERGOVERNMENTAL
                                                                      CHARTER SCHOOL REIMBURSMENT 21,435




                                                                                                   113,500
                                                                                                   686,704
                                                                                                    49,324




                                                                                                    80,147
                                                                                                    20,696

                                                                                                         0
                                                                                                         0

                                                                                                         0


                                                                                                                 423,027
                                                                                                                  20,700


                                                                                                                  14,495
                                                                                                                  22,248
                                                                                                                  61,271

                                                                                                                   1,488


                                                                                                                   2,797


                                                                                                                       0
                                                                                                                       0




                                                                                                                       0
                                                                                                                             650,000
                                                                                                                              22,248
                                                                                                                              13,167
                                                                                                                              61,271
                                                                                                                              20,696
                                                                                                                               1,575



                                                                                                                                   0
                                                                                                                                   0


                                                                                                                                   0
                                                                                                                                          850,000
                                                                                                                                           13,167
                                                                                                                                           23,498

                                                                                                                                                0
                                                                                                                                                0

                                                                                                                                                0
                                                                                                                                                       200,000
                                                                                                                                                         1,250




                                                                                                                                                             0
                                                                                                                                                             0
                                                                                                                                                             0
                                                                                                                                                             0
                                                                                                                                                                   30.8%
                                                                                                                                                                    0.0%
                                                                                                                                                                    5.6%

                                                                                                                                                                     N/A
                                                                                                                                                                     N/A

                                                                                                                                                                     N/A
                                                                      HIGHWAY FUND
                                                                      TOTAL INTERGOVERNMENTAL 52,950,013




                                                                      SCHOOL CHAPTER 70
                                                                      LOTTERY




                                                                      SCHOOL TRANSPORTATION
                                                                      ADDITIONAL ASSISTANCE
                                                                      SALE OF ASSETS DPW




                                                                      VETERANS BENEFITS




                                                                      SCHOOL CONSTRUCTION
                                                                      POLICE CAREER INCENTIVE
                                                                      MISCELLANEOUS REVENUE




                                                                      OTHER STATE SCHOOL
                                                                      TUTION STATE WARDS
                                                                                                32,435,768

                                                                                                10,022,730
                                                                                                 4,646,422
                                                                                                 4,274,507




                                                                                                   111,790
                                                                                                   158,101

                                                                                                   120,813
                                                                                                   142,060


                                                                                                    65,502

                                                                                                       515

                                                                                                              35,547,412
                                                                                                              56,131,413




                                                                                                               9,762,034
                                                                                                               5,450,923
                                                                                                               4,274,507




                                                                                                                 127,747
                                                                                                                 174,563

                                                                                                                 103,996
                                                                                                                     815
                                                                                                         0




                                                                                                                 143,390
                                                                                                                       0
                                                                                                                       0




                                                                                                                           37,834,256

                                                                                                                            9,503,681
                                                                                                                           58,247,999


                                                                                                                            4,274,507
                                                                                                                            5,250,941




                                                                                                                              101,100

                                                                                                                              128,654
                                                                                                                              175,000
                                                                                                                              142,060


                                                                                                                               68,843

                                                                                                                                    0



                                                                                                                                         9,232,148
                                                                                                                                        60,618,201




                                                                                                                                        39,868,727
                                                                                                                                         5,677,474
                                                                                                                                         4,274,507
                                                                                                                                           142,060




                                                                                                                                           116,774
                                                                                                                                           193,825
                                                                                                                                           116,874




                                                                                                                                           20,682
                                                                                                                                           86,890

                                                                                                                                            1,575
                                                                                                                                                 0
                                                                                                                                                 0

                                                                                                                                                     2,034,471

                                                                                                                                                      (271,533)
                                                                                                                                                     2,370,202




                                                                                                                                                      (101,100)
                                                                                                                                                       426,533




                                                                                                                                                       (11,880)


                                                                                                                                                        25,619
                                                                                                                                                        18,825




                                                                                                                                                           (14)
                                                                                                                                                             0
                                                                                                                                                        48,031




                                                                                                                                                             0
                                                                                                                                                             0
                                                                                                                                                             0

                                                                                                                                                                   10.8%
                                                                                                                                                                   69.8%




                                                                                                                                                                   41.8%
                                                                                                                                                             0




                                                                                                                                                                  -100.0%




                                                                                                                                                                   -0.1%
                                                                                                                                                                   -9.2%
                                                                                                                                                                   -2.9%
                                                                                                                                                                    5.4%




                                                                                                                                                                    0.0%
                                                                                                                                                                    8.1%
                                                                                                                                                                    0.0%


                                                                                                                                                                     N/A




                                                                                                                                                                     N/A
                                                                      SALE OF FIXED ASSETS
                                                                      BOND PROCEEDS
                                                                      BOND PREMIUM
                                                                      TRANSFERS FROM SPECIAL FUNDS 155,000




                                                                      RESTITUTION
                                                                      EARNINGS ON INVESTMENTS




                                                                      MISC. REVENUE CITY
                                                                      BOND ACCR'D INTEREST




                                                                      MISCELLANEOUS REVENUE
                                                                      REFUNDS PRIOR YEARS



                                                                                                   200,749         9,587




                                                                                                                                                                    4.1%
                                                                                                                                                                    0.0%
                                                                      TRANSFERS FROM ENTERPRISE

                                                                      CIVIL DEFENSE
                                                                      PARKING METER FUND
                                                                      SCHOOL GRANT INDIRECT




                                                                      CLOSEOUTS/STABILIZATION
                                                                      SURPLUS OVERLAY
                                                                      MISCELLANEOUS
                                                                                                 1,555,496




                                                                                                   113,961
                                                                                                    13,950




                                                                                                    73,782
                                                                                                        (0)


                                                                                                         0



                                                                                                         0
                                                                                                         0
                                                                                                         0



                                                                                                         0
                                                                                                         0
                                                                                                               2,105,844
                                                                                                                 133,734




                                                                                                                   1,879
                                                                                                                 224,665




                                                                                                                   9,677


                                                                                                                   8,358
                                                                                                                       0
                                                                                                                       0


                                                                                                                       0
                                                                                                   721,537      721,537




                                                                                                                       0
                                                                                                                       0


                                                                                                                       0
                                                                                                                       0




                                                                                                                                    0
                                                                                                                                    0
                                                                                                                                    0
                                                                                                                                    0
                                                                                                                                    0




                                                                                                                                    0
                                                                                                                                    0
                                                                                                                                    0
                                                                                                                                    0




                                                                                                                                    0
                                                                                                                                                            0
                                                                                                                                                            0
                                                                                                                                                            0




                                                                                                                                                            0
                                                                                                                                                            0
                                                                                                                                                            0


                                                                                                                                                            0




                                                                                                                                                            0
                                                                                                                                                            0


                                                                                                                                                            0
                                                                                                                                                                    N/A
                                                                                                                                                                    N/A




                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                      SEWER FUND
                                                                      GENERAL FUNDS TOTAL


                                                                      WATER FUND
                                                                      TOTAL MISC. REVENUE




                                                                                                                            1,500,000

                                                                                                                                    0
                                                                                                                                    0
                                                                                                                                         1,990,000    490,000

                                                                                                                                                            0
                                                                                                                                                            0
                                                                                                                                                                  32.7%
                                                                                                 81,534,638

                                                                                                 2,834,474
                                                                                                              86,716,808

                                                                                                               3,215,281
                                                                                                                           88,979,181

                                                                                                                            2,768,738




                                                                                                                             129,000
                                                                                                                              543,124


                                                                                                                             149,997
                                                                                                                              434,233


                                                                                                                              12,384
                                                                                                                                        93,896,433

                                                                                                                                         3,340,113

                                                                                                                                           434,233
                                                                                                                                           543,124




                                                                                                                                          175,000
                                                                                                                                          185,000
                                                                                                                                           12,756
                                                                                                                                                     4,917,252

                                                                                                                                                      571,375



                                                                                                                                                       35,003

                                                                                                                                                       46,000
                                                                                                                                                          372

                                                                                                                                                            0
                                                                                                                                                            0
                                                                                                                                                            0

                                                                                                                                                            0


                                                                                                                                                                  35.7%
                                                                                                                                                                  20.6%



                                                                                                                                                                  23.3%
                                                                                                                                                                   0.0%
                                                                                                                                                                   5.7%




                                                                                                                                                                   0.0%


                                                                                                                                                                   3.0%

                                                                                                                                                                    N/A

                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                                                                                                                    N/A
                                                                      ..rraaVV%%eeccnniittggdduuBBllAADDvvRR
                                                                                   rraallooDD22001199
37,230,730   36,636,016   36,530,481          General Fund Budget
   172,913      172,287       168,122          Cherry Sheet Offsets
   477,599      506,860       433,187          State Assessments
         0            0            50          Moderator
   200,000      214,821       293,584          Overlay
                                              OTHER
 686,000      731,500     1,175,531           UNCLASSIFIED
3,375,000    3,000,000    2,910,520           INSURANCE
2,831,913    2,846,784    2,403,143           DEBT SERVICE
1,683,136    1,633,963    1,738,792     Total HHS
   518,195      502,195      511,360     Public Library
   19,015       19,015        21,515     Veterans Service
    96,864       95,900       98,699     Council on Aging
   102,568       78,898       78,898     Recreation
   946,494      937,955    1,028,320     Health Department
                                        HEALTH & HUMAN SERVICES
Board of Selectmen
Mission Statement
In accordance with the Town Charter and local by-laws, the Board of Selectmen is a legislative body of
five, elected town-wide on staggered terms. The Board’s primary responsibilities include serving as a
policy-making authority, appointing authority and licensing board. Of significant responsibility is the
approval of articles to be placed on town meeting warrants, adopting the annual Town Administrator
submitted budget, the hiring of the Town Administrator, the approval of liquor and victualer licenses,
the confirmation of employee appointments and the appointments to town boards and commissions.
The Board also serves ex-officio as the town’s Water and Sewer Commissioners and is responsible for
setting water and sewer rates.

                                   Selectmen Budget

                                           2003              2004         2005         Dollar
Expense Line Item                         Actual            Budget       Budget       Variance

Wages & Salaries                                    0                0            0              0
Overtime                                            0                0            0              0
Other Salary & Benefit                              0                0            0              0



Total Wages & Salaries                              0                0            0              0

Services                                         0                0             0                0
Supplies                                    14,100           10,350        10,350                0
Other                                            0                0             0                0

Total Operating                             14,100           10,350        10,350                0

Capital                                             0                0            0              0

Total Department                            14,100           10,350        10,350                0




                                                   - 42 -
Town Administator’s Office
Mission Statement
The Town Administrator is responsible for the daily administration of the municipal business affairs of
the Town. The Town Administrator is the Chief Administrative, Financial and Procurement Officer of
the Town and is the primary officer responsible for the implementation of Board of Selectmen policy
and town by-laws. The Town Administrator sets the strategy of the Town in accordance with Board of
Selectmen directives, sets overall operating goals for the Town, which determines the departmental
goals, and oversees the efficient and effective administration of town government to achieve those
goals. The Town Administrator is responsible for ensuring the continued economic, social, and
financial viability of the Town, and also for ensuring the delivery of quality services to the residents
and taxpayers of the Town.

Significant Changes
The Town Administrator’s office has been focused on the continued implementation of the new Town
Charter that became effective on July 1, 2002. Activities related to the budget have received significant
attention, such as seeking cost savings through greater operating efficiencies and reorganizations, re-
negotiated vendor contracts and enhancing revenues.

Previous Year Accomplishments

   Met the challenges of an ever-shifting revenue base to produce a balanced budget which did not
    include any layoffs or requests to override Proposition 2 1/2 ;

   Reorganized the Building, Treasurer’s and Public Works departments generating savings of
    $20,000 annually while improving service delivery to the community;

   Negotiated a new solid waste and recycling vendor contract expanding service while reducing the
    costs of the contract by $80,000 annually;

   Effectuated contracts with the six Town municipal employee unions whose contracts had expired;

   Revised for Town Meeting approval the Personnel Policy Governing Compensation and
    Employment Benefits;

   In compliance with M.G.L., 30B bid and awarded leases for the two town owned properties
    operated by private entities;

   Identified and sold nine surplus town vehicles generating several thousand dollars in unexpected
    revenues and reducing the insurance costs of the town by more than $7,000 annually;



                                                  - 43 -
   Applied for and received a $50,000 MPPF Grant from Massachusetts Historical Commission for
    improvements at Town Hall;

   Applied for an $800,000 Massachusetts Small Cites Grant to remove architectural Barriers at Town
    Hall;

   Completed a 504 Transition Plan in compliance with Federal Government standards for providing
    equal access to public spaces for individuals with disabilities;

   Guided by the provisions of Executive Order 418 developed both a Community Development and
    Housing Strategy for the Town seeking provisional certification from the Massachusetts
    Department of Housing and Community Development.


FY 05 Goals

        Identify, review and implement, where feasible and responsible, cost savings, like renegotiating
        vendor contracts and refinancing of debt, and revenue raising strategies, but excluding
        Proposition 2 ½ overrides during Fiscal 2005, to support short- and long-term budget needs;

       Continue efforts with the Traffic Study Committee to address pressing parking problems in
        impacted neighborhoods around the town. Contract with a traffic consultant by September 15th
        to specifically address issues around the commuter rail station;

       Contingent upon the award of the Massachusetts Small Cities Grant, commence the $2.2 million
        renovation of Town Hall by March 15, 2005;

       Successfully negotiate a joint ambulance agreement with the Town of Marblehead by August 1,
        2004;

       Working with the Recreation Commission develop an open space improvement and utilization
        plan by December 31, 2004;

       With the assistance of the Capital Improvement Committee, develop a new method for
        determining spending capacity for capital projects based on percentage of budget by November
        1, 2004;

       Develop a year round schedule of recreation programs by December 31, 2004, broadening the
        audience of individuals who participate to include seniors and family’s;

       Recommend for adoption at the 2005 Annual Town Meeting an amendment to the Zoning
        Bylaws adding an overlay district for Humphrey Street from Monument Avenue to Puritan
        Road;

       Complete the design for the renovation and rehabilitation of the Police Station by December 31,
        2004.

                                                  - 44 -
                                Town Administrator Budget
                                              2003           2004         2005         Dollar
   Expense Line Item                         Actual         Budget       Budget       Variance

   Wages & Salaries                            155,000      154,136       158,329           4,193
   Overtime                                          0            0             0               0
   Other Salary & Benefit                            0        3,600         3,900             300



   Total Wages & Salaries                      155,000      157,736       162,229           4,493

   Services                                          0            0             0                0
   Supplies                                      5,000        2,000         2,000                0
   Other                                             0            0             0                0

   Total Operating                               5,000        2,000         2,000                0

   Capital                                              0            0            0              0

   Total Department                            160,000      159,736       164,229           4,493




                            Town Administrator Personnel Listing

                                                               FY04       FY05
                                                              STAFF      STAFF VARIANCE
Department                  Title                              POS.       POS.   +/(-)

Administrator               Town Administrator                  1           1          0
                            Administrative Assistants           1         1.66        .66
Total                                                           2         2.66        .66




                                                  - 45 -
Personnel
Mission Statement
The Personnel Department establishes and maintains an equitable personnel system that promotes the
efficiency and economy of government and the morale and well-being of all Town employees. The
Personnel Department establishes and monitors personnel policies and procedures, ensures fair and
consistent hiring activities, assists in the coordination of collective bargaining sessions, manages
employee benefits and provides staff training and development opportunities. The Personnel
Department is responsible for recruiting, selecting, and developing employees on the basis of their
abilities, knowledge, and skills and ensuring that the work environment and the procedural guidelines
of the Department are free from any instances of discrimination of any kind.

Significant Changes
The implementation of the Personnel Policy Governing Compensation and Employment Benefits was
adopted by Town Meeting in May of 2003, and became effective on July 1, 2003. This policy governs
employees who work at least twenty hours per week and who are not covered by a collective bargaining
agreement or an individual employee contract allowable per the provisions of M.G.L. Chapter 41,
section 108. This policy replaced the much-antiquated 1980 Personnel Board Bylaws. Another
significant change was the implementation of a centralized location for all personnel files, which has
insured the privacy of all Town’s employees. Employee files were previously kept and managed by
individual departments.


Previous Year Accomplishments

   Implemented the payroll/personnel change form for all changes to employee records, i.e., step
    increases, promotions, address changes, etc. to ensure a system of checks and balances. Maintained
    attendance records in a centralized location;

   Created a centralized location for all job descriptions (exclusive of the School Department). Began
    re-writing job descriptions to ensure compliance with ADA requirements;

   Implemented training seminars to assist employees with regard to customer service within a
    municipal environment;

   Encouraged management to provide documentation relative to employee discipline;

   Assisted in the hiring process for several new employees;

   Prepared RFQ for review of Town’s health insurance policies, plans and advisor;

   Maintained continuous Labor Management meetings in accordance with the union contracts.


                                                  - 46 -
FY 05 Goals

   Centralize policies within the computer system for ready availability to employees;

   Continue efforts to provide job descriptions for all classifications in accordance with ADA
    specification and requirements;

   Prepare yearly performance evaluations for all non union personnel;

   Continue training seminars to educate employees on all aspects of municipal government;

   Assist the Treasurer’s office in gathering the necessary data to implement time accruals for all
    employees into the MUNIS payroll system within the guidelines of the various union and non-union
    contracts as well as individual employee contracts;

   Assist department managers in the administration of fair and responsible personnel practices,
    including maintaining consistent and progressive discipline and providing necessary documentation
    for all action(s) taken;

   Continue with monthly Labor Management Meetings in accordance with the union contracts.




                                                  - 47 -
                                 Personnel Department
                                        2003              2004         2005         Dollar
Expense Line Item                      Actual            Budget       Budget       Variance

Wages & Salaries                                 0                0     21,810        21,810
Overtime                                         0                0          0             0
Other Salary & Benefit                           0                0          0             0

Total Wages & Salaries                           0                0     21,810        21,810

Services                                         0                0            0              0
Supplies                                         0                0            0              0
Other                                            0                0            0              0

Total Operating                                  0                0            0              0

Capital                                          0                0            0              0

Total Department                                 0                0     21,810        21,810




                                   Personnel Staff Listing

                                                             FY04       FY05
                                                            STAFF      STAFF VARIANCE
          Department     Title                               POS.       POS.   +/(-)

      Personnel          Personnel Manager                    .66        .5         (.16)

      Total                                                   .66        .5         (.16)




                                                - 48 -
Town Accountant
Mission Statement
The Town Accountant provides the controllership and audit functions for the Town and its departments
and agencies. The Accounting Department protects the fiduciary interests of the Town by ensuring that
the financial records are accurately maintained and preserved; supervising and monitoring the
expenditure of Town funds; utilizing sound accounting practices; and performing all other auditing and
accounting functions pursuant to the Town Charter, Town By-Laws and laws of the Commonwealth of
Massachusetts.

Significant Changes
The hiring of a full-time Assistant Town Accountant for accounts payable processing and daily tasks as
they may arise. The Town Accountant was appointed Parking Clerk in FY 2004 bringing this process
in house for improved efficiency.

Previous Year Accomplishments

   Submitted Schedule A to the State by October 31, 2003;

   In cooperation with the Assessing Department, submitted the 2004 recapitulation ahead of
    schedule;

   Received “Free Cash” certification of $571,391 from the Department of Revenue;

   Closed the Town’s books by the end of July;

   Added budgeted estimate revenues to Munis’ budget module;

   Implemented Munis requisition and purchase order system.

FY 05 Goals

   Comply with State filling requirements by completing the Balance Sheet by September 15;

   Comply with State filing requirements by completing Schedule A (a comprehensive report of Town
    and School revenues, expenditures and account balances) by October 31;

   Work with external auditors to produce the Town Comprehensive Annual Financial Report (CAFR)
    by March 2005;

   Submit the FY 05 Budget for the “Distinguished Budget Presentation Award” to the GFOA by
    August 1, 2004.

                                                  - 49 -
                            Town Accountant Budget
                                       2003              2004              2005        Dollar
Expense Line Item                     Actual            Actual           Proposed     Variance

Wages & Salaries                       112,569          111,598            112,720        1,122
Other Salary & Benefit                       0            2,500                400       (2,100)



Total Wages & Salaries                 112,569          114,098            113,120            (978)

Services                                20,000           15,000             15,000            0
Supplies                                17,500           15,000             15,000            0
Other                                  205,250          151,000             55,000      (96,000)

Total Operating                        242,750          181,000             85,000      (96,000)

Capital                                        0                 0                0              0

Total Department                       355,319          295,098            198,120      (96,978)




                         Town Accountant Personnel Listing

                                                              FY04           FY05
                                                             STAFF          STAFF VARIANCE
Department               Title                                POS.           POS.   +/(-)

Accounting               Town Accountant                             1        1           0
                         Assistant Town Accountant                   1        1           0
Total                                                                2        2           0




                                               - 50 -
Technology
Mission Statement
The Technology department maintains all aspects of our deployed systems throughout the town from
phone switches and PC's to Swampscott's state of the art fiber optic network that connects our Town
Hall, Police and Fire Departments, Senior Center, Library, High School and our Town Hall Annex.
As the efficient use of our infrastructure and exchange of data between departments continues to
grow, so to will the quality of service being provided to the citizens of Swampscott.


Significant Changes

The most significant change to the Technology Department over the past few fiscal years was placing
the Technology Department under the jurisdiction of the Treasurer and the creation of the Network
Specialist position. This past fiscal year, we were able to purchase and implement a Microsoft
Exchange server, which has proven very beneficial in day-to-day operations of the Town Hall.


Previous Year Accomplishments

   Activated the fiber connections that were run to the Police Station, Senior Center, Library, and
    Town Hall Annex;

   Installed Munis accessibility to the offsite locations, allowing them to inquire on their accounts and
    enter in requisition requests;

   Created a Fire Department website, allowing them to post information on fire logs and current news
    and events within the department;

   Installed and implemented a Microsoft Exchange Server;

   Added the first public PC to the Senior Center;

   Began to audit and log every piece of technology equipment that is in the Town’s possession;

   Continue to evaluate and update our Town website, adding calendars, bylaw information and public
    bulletin boards.




                                                   - 51 -
FY 05 Goals

   Upgrade existing desktop operating systems to a Windows XP platform. The goal is to have all
    Town pc’s running on the same platform. Phase one will be to upgrade 5 desktops by December
    2004 and phase two will be to have 10 more upgraded by June 2005;

   Update the Police Department’s central dispatch to the FCC mandated compliance standards.
    Completion by December 2004;

   Evaluate and present recommendations to Town Administrator by August 2004 on Munis’ Permit
    and Code Enforcement module with hopes to purchase the package by FY06;

   Implement the use of PDA’s (Personal Digital Assistant) to streamline the inspection process for
    Health, Assessors, and Fire Departments. Plan to pilot the PDA’s in the Assessor’s Office by
    October 2004, and will evaluate and present implementation plans for Fire and Health by April
    2005;

   Install a public access computer in the Town Hall by July 2004 for citizens to look up public
    information;

   Implement online payment services for Swampscott residents by September 2004;

   Conduct classroom training in all basic and advanced Windows and Office techniques. We will
    have 10 employees trained in basic techniques by December 2004, and 20 employee trained in
    advanced techniques by June 2005.




                                                  - 52 -
                                 Technology Budget
                                        2003              2004             2005         Dollar
Expense Line Item                      Actual            Budget           Budget       Variance

Wages & Salaries                         57,289           40,000            42,000         2,000
Overtime                                      0                0                 0             0
Other Salary & Benefit                        0                0                 0             0


Total Wages & Salaries                   57,289           40,000            42,000         2,000

Services                                 51,500           72,040            68,000        (4,040)
Supplies                                 22,950           24,150            20,000        (4,150)
Other                                         0                0                 0             0

Total Operating                          74,450           96,190            88,000        (8,190)

Capital                                         0                 0                0              0

Total Department                        131,739          136,190           130,000        (6,190)



                             Technology Personnel Listing

                                                              FY04           FY05
                                                             STAFF          STAFF VARIANCE
Department               Title                                POS.           POS.   +/(-)

Technology               Network Specialist                           1       1            0

Total                                                                 1       1            0




                                                - 53 -
Treasurer
Mission Statement
The Treasurer’s Office preserves, protects and manages the financial resources of the Town, among
other responsibilities. The Treasurer is responsible for receipt, accurate accounting and prudent
investment of all Town funds to maximize yields while maintaining adequate liquidity and ensuring
compliance with Massachusetts General Laws, Town ordinances and any other applicable financial
mandates. Responsible for maintaining and paying Town payroll and managing employee benefits,
such as, but not limited to, health, dental and life insurance, deferred compensation, and the Employee
Assistance Program.


Significant Changes
The most significant change to the Treasurer’s Office over the past few fiscal years has been the
separation of duties from the Clerk/Collector/Treasurer into a separate Treasurer’s office. The
department is formed of the Treasurer and an Assistant Treasurer, and once established, the department
took back proper ownership of the payroll and employee benefits.



Previous Year Accomplishments

   Reconciled the Accountant’s general ledger to the bank balances;

   Closed the Beach Betterment Fund bank account. This account was not in Treasurer’s custody and
    was not being recorded on the general ledger;

   Researched and closed over 20 bank accounts that were using the Town’s federal Tax Id number
    but were not in my possession;

   Automated the cashbook;

   Take Clerk/Collector receipts on a daily basis and make deposits on a daily/bi-daily basis;

   Use Munis to perform monthly payroll and accounts payable reconciliation and clear all checks
    through the system for better reporting;

   With the assistance of the Clerk/Collector, closed the Collector’s separate bank account, and have
    assumed the handling of all receipts and deposits;

   Closed all the non-active bank accounts the Town was still in possession of.


                                                  - 54 -
FY 05 Goals

   Research and transfer the remaining bank accounts utilizing the Town’s Tax ID number by August
    2004;

   Automate the payroll and accounts payable reconciliation process with Eastern Bank by September
    2004;

   Work with the Personnel Manager to compile a clear and concise employee benefit package, listing
    all insurance plans, including health, dental and life insurance and detailing the deferred
    compensation options. Packages will by completed by September 2004;

   Implement the Miscellaneous Cash Receipts module within Munis by February 2005;

   Work with the Personnel Manager to implement, maintain and report employee accruals. Phase one
    will begin in July with the gathering and entering of information completed by December 2004.
    The accruals will go live for January 1, 2005;

   Create an entire set of policies and procedures for all processes handled by the Treasurer’s office.
    Plan to have a rough draft completed by January 2005, with a final draft completed by May 2005;

   By September 2004, centralize benefit enrollment. Currently the school department is handling all
    school employees and then sending the forms to us for processing. We intend to remove the school
    department from the process thus providing more control over the benefits while increasing
    efficiency and employee knowledge on the overall process.




                                                   - 55 -
                                          Treasurer Budget
                                                    2003          2004         2005          Dollar
        Expense Line Item                          Actual        Budget       Budget        Variance

        Wages & Salaries                             44,375       92,410        93,334             924
        Overtime                                          0            0             0               0
        Other Salary & Benefit                        1,900            0             0               0


        Total Wages & Salaries                       46,275       92,410        93,334             924

        Services                                          0            0             0                0
        Supplies                                      3,300        7,200        12,320            5,120
        Other                                             0            0             0                0

        Total Operating                               3,300        7,200        12,320            5,120

        Capital                                              0            0            0               0

        Total Department                             49,575       99,610       105,654            6,044




                                     Treasury Personnel Listing

                                                                    FY04       FY05
                                                                   STAFF      STAFF        VARIANCE
Department                   Title                                  POS.       POS.          +/(-)

Treasury                     Treasurer                                1         1             0
                             Assistant Treasurer                      1         1             0

Total                                                                 2         2             0




                                                    - 56 -
Clerk/ Collector
Mission Statement
The Town Clerk is the primary agent responsible for serving the public through the provision of public
records, vital statistics (births, deaths, marriages) and general information. The Town Clerk is the
keeper of the public record and is responsible to document and certify the actions of all Annual and
Special Town Meetings. The Clerk’s Office is the official filing agent for the Town and as such
accepts, processes, records and maintains all municipal records including, but not limited to, notices
and minutes of all public meetings, appointments and resignations of public officials, bankruptcy
filings, Planning Board and Zoning Board of Appeals applications and decisions and Certificates of
Business. The Town Clerk insures that all public records are safely preserved and readily accessible for
inspection and retrieval. Additionally, the Clerk’s Office implements the town’s annual dog licensing
program.

The Collector (serving as both tax collector and town collector) is responsible for providing a single
point of contact to taxpayers and municipal customers for all financial transactions. The Collector is
responsible for the billing, collection and accurate accounting of all taxes, fees and charges. The
Collector’s Office mails and processes payments for municipal invoices each year including property
and personal property tax bills, automobile excise tax bills, water/sewer usage bills, boat excise tax
bills, harbor mooring fee bills, fire alarm fee invoices and varying amounts of water service, sewer
apportionment, school tuition, rent and non-contributory retirement reimbursement invoices.

Significant Changes
The separation of Treasurer/Collector/Clerk to Clerk/Collector.

Previous Year Accomplishments

   Completed a program of daily turnover of all collections to the Treasury with full transmittal and
    documentation reducing office expenses by more than $4,000;

   Initiated an on-call interpretation service program for our non-English speaking taxpayers by
    establishing a crew of volunteers who offer their services by telephone to translate and assist when
    needed;

   Implemented a mail-in/drop-off program for dog license renewals to afford 24-hour access via a
    secure lock-box at Town Hall and next day return of the 2004 licenses. Dog owners are now able to
    transact their license renewal business after normal business hours and are no longer faced with
    long lines at Town Hall;

   Year-end accounts receivable lists in all major categories were prepared and available on the last
    day of the fiscal year for auditing purposes;

   The MUNIS office expense purchase order and requisition system is fully operational

                                                  - 57 -
FY 05 Goals

   Process and return 90 percent of requests for vital records (birth, death, marriage) the same day they
    are received. The remaining ten percent to be processed and returned on the next business day.
    Expected full implementation by January 1, 2005;

   That a finalized and up-gradable version of the town’s charter, general by-laws, zoning by-laws and
    Planning Board Subdivision Rules and Regulations be compiled and stored electronically. Expected
    full implementation by June 30, 2005;

   That requests for Certificates of Municipal Lien be recorded, researched and processed the same
    day they are received. Expected full implementation by January 1, 2005;

   That invoices and payments for water service, school tuition and non-contributory retirement be
    handled through the MUNIS system by coordination with the DPW, Schools, Retirement Office
    and the town’s computer services staff. Expected full implementation by June 30, 2005.




                               Clerk/Collector Budget

                                           2003          2004          2005          Dollar
Expense Line Item                         Actual        Budget        Budget        Variance

Wages & Salaries                          121,695           130,491    133,642           3,151
Overtime                                        0                 0          0               0
Other Salary & Benefit                      2,200             1,800      2,500             700


Total Wages & Salaries                    123,895           132,291    136,142           3,851

Services                                        0                 0          0               0
Supplies                                   57,400            48,300     43,190          (5,110)
Other                                           0                 0          0               0

Total Operating                            57,400            48,300     43,190          (5,110)

Capital                                                          0             0               0

Total Department                          181,295           180,591    179,332          (1,259)




                                                   - 58 -
                  Clerk/Collector Personnel Listing

                                              FY04     FY05
                                             STAFF    STAFF   VARIANCE
Department        Title                       POS.     POS.     +/(-)

Clerk/Collector   Clerk/Collector              1        1        0
                  Assistant Clerk              1        1        0
                  Assistant Clerk              1        1        0
Total                                          3        3        0




                                    - 59 -
Election
Mission Statement
The Swampscott Election Commission is dedicated to providing a safe environment for voting,
accurate tabulation and reporting of vote counts, up-to-date voter registration (through the VRIS system
and through our office filing system), as well as information for candidates and help with voter
registration. The Election Office works in conjunction with Campaign and Political Finance laws in
keeping financial reports up to date on a yearly basis from any Local Official or Ballot Question
Committee, through the term of their office. This office is responsible for overseeing the Annual Street
Listing thru the yearly census.


Significant Changes

FY 2005 will bring about an additional scheduled election over FY 2004.

Previous Year Accomplishments

   Completed printing and mailing of the Annual Street Listing by the required January 2003 deadline,
    utilizing Senior’s in the Tax Abatement Program;

   As a result of the Annual Street Listing returns many changes to resident names, addresses, and
    voting status were completed;

   March 2003 sent out second mailings to non-respondents to the Annual Street Listing;

   March 2003 accepted and certified papers for all running for Town Meeting and Elected Positions;

   In preparation of the April 2003 Annual Town Election had a training seminar for all poll workers;

   Conducted extra Voting Registration hours for the Annual Town Election;

   Conducted the Annual Town Election April 2003;

   Prepared and produced the Street Listing Book, (required by MGL) with information compiled thru
    the Annual Street Listing;

   Hosted a joint review, on June 26, 2003, by the CVR (central voter registry) with the Town of
    Marblehead, which covered, the new Resource Handbook;

   October of 2003, nine long-term poll workers have retired and were honored at a Selectmen’s
    meeting, the Election Commission recognized these individuals thru certificates of achievement;



                                                 - 60 -
   Accepted and certified nomination papers from the Town of Swampscott Democratic and
    Republican Committees;

   By December of 2003 nine new poll workers have been added to fill the positions for the nine who
    retired;

   Notified all poll workers as to the four scheduled Election dates for 2004;

   The 1st of January 2004 notified all Elected Officials and Town Meeting members whose term
    expires 2004;

   Notified all Treasurers of ballot question committees and new and existing elected officials as to
    their responsibility in filing Campaign and Political Finance reports the 1st of January 2004;

   Compiled all information and reports due to this office, pertaining to Campaign and Political
    Finances, from all ballot questions committees and new and existing elected officials by the January
    21 deadline;

   Thru the year especially the summer months assisted the Recreation Office in the selling of
    Recreation Parking Stickers, in the absence of the Recreation Clerk.


FY 05 Goals

   To conduct any and all elections to the best of our ability, including three scheduled elections,
    September 04 State Primary, November 04 General Election (Presidential) and April 05 Annual
    Town Election;

   Conduct training sessions for poll workers, prior to each election to reinforce existing voting
    regulations and notify them of any new procedures;

   Conduct the 2005 Annual Town Census;

   Prepare and produce the 2005 Street Listing Book according to MGL;

   Utilize seniors in the Tax Abatement Program whenever possible rather than any additional paid
    clerical help during elections, covering office in the clerks absence, help with any additional filing,
    and with census mailings and returns.




                                                   - 61 -
                                 Election Budget
                                     2003              2004             2005         Dollar
Expense Line Item                   Actual            Budget           Budget       Variance

Wages & Salaries                     40,821            40,340            44,789         4,449
Overtime                                  0                 0                 0             0
Other Salary & Benefit                1,200             1,100             1,000          (100)


Total Wages & Salaries               42,021            41,440            45,789         4,349

Services                                  0                 0                 0             0
Supplies                             13,870            11,618             9,702        (1,916)
Other                                     0                 0                 0             0

Total Operating                      13,870            11,618             9,702        (1,916)

Capital                                      0                 0                0              0

Total Department                     55,891            53,058            55,491         2,433




                           Election Office Personnel Listing

                                                            FY04          FY05
                                                           STAFF         STAFF VARIANCE
Department               Title                              POS.          POS.   +/(-)

Election                 Clerk                                     1        1           0

Total                                                              1        1           0




                                             - 62 -
Assessor’s
Mission Statement
The Assessing Department provides the Town with fiscal stability by ensuring the Town’s personal and
real property is promptly, fairly, and equitably valued and classified. The Assessing Department
determines fair market value of all property for the purposes of taxation. Additionally, the Department
administers motor vehicle and boat excise taxes in a fair and efficient manner. The Department also
administers the statutory exemption program for eligible taxpayers and coordinates the senior
abatement work off program. Prepares the annual recap for the purpose of setting the annual tax rate.


Significant Changes
 In fiscal 2004, the Assessing Department completed a timely interim year revaluation update of all real
and personal property throughout the Town resulting in an average single family price of $451,000, an
increase of $58,000 form fiscal 2003. The Department assumed responsibility for the administration of
the senior abatement work of program that was previously administered by the personnel department.
Assessing data was placed on-line and made available to the general public via the Internet.


Previous Year Accomplishments

   Completed fiscal 2004 interim year revaluation in a timely manner resulting in level
    assessment/sale ratios throughout town;

   Reviewed approximately 500 building permits resulting in new growth for the Town in the amount
    of $208,000;

   Implemented an on-line database of all real estate in Town available via the Internet;

   Implemented a computerized boat excise program;

   Successfully defended 24 Appellate Tax Board Cases;

   Released $750,000 from overlay surplus to the general fund as a result of defending fair and
    equitable assessments from prior 3 fiscal years;

   Completed 75% of ten- year cyclical re-inspection program as mandated by the DOR.




                                                  - 63 -
FY 05 Goals

      To implement a purchase order/requisition system by March 1, 2004;

      To work closely with the Map Committee and GIS Committee to develop a comprehensive
       strategy of updated maps by securing a map assessment grant by April, 1 2004;

      To complete the cyclical re-inspection program by January 1, 2005;

      To complete the State mandated triennial revaluation of all real and personal property for DOR
       review by August 20, 2004;

      To sponsor an article at Town Meeting advocating the adoption of M.G.L. Ch. 653 s. 40 of the
       Acts of 1989 which permits the accelerated assessment of new construction;

      To complete the review of all 2003 building permits by August 1, 2004.




                                 Assessor's Budget

                                          2003              2004         2005         Dollar
Expense Line Item                        Actual            Budget       Budget       Variance

Wages & Salaries                          129,222          133,906       135,541         1,635
Overtime                                        0                0             0             0
Other Salary & Benefit                      2,550            1,800         4,017         2,217



Total Wages & Salaries                    131,772          135,706       139,558         3,852

Services                                   20,000           10,000         8,148        (1,852)
Supplies                                    9,900           10,200         8,200        (2,000)
Other                                           0                0             0             0

Total Operating                            29,900           20,200        16,348        (3,852)

Capital                                           0                 0            0              0

Total Department                          161,672          155,906       155,906                0




                                                  - 64 -
                     Assessor’s Personnel Listing

                                            FY04     FY05
                                           STAFF    STAFF VARIANCE
Department   Title                          POS.     POS.   +/(-)

Assessing    Assistant Assessor              1        1      0
             Clerk                           1        1      0
             Clerk                           1        1      0
Total                                        3        3      0




                                  - 65 -
Retirement
The Town Retirement System provides pension and annuity payments to approximately 225 retirees,
and collects pension contributions from approximately 295 active employees as of December 31, 2003.
The Public Employee Retirement Administration Commission (P.E.R.A.C.) performed an actuarial
valuation as of January 1, 2002. The Town adopted this actuarial schedule and began the process of
fully funding the outstanding liability of the Town’s Retirement System by the Year 2026, as well as
continuing to fund the current cost of benefits. The original schedule is reviewed and updated every
three years. The latest update to this funding schedule was also prepared by PERAC based on their
actuarial valuation.



                                Retirement Program Budget

                                             2003          2004          2005         Dollar
    Expense Line Item                       Actual        Budget        Budget       Variance

    Retirement Fund                         1,993,441    1,998,870     2,260,438        261,568

    Non-Contributory Pensions                 249,000      228,000       220,000         (8,000)




                                                - 66 -
Police
Mission Statement
The Swampscott Police Department is a community-oriented police department, committed to
providing professional service to all, with fairness, compassion and respect, regardless of religion, age,
race, color, creed, nationality or lifestyle. Working in concert with the community we endeavor to
prevent crime, protect life and property, and preserve the peace, order and safety in Swampscott. We
nurture public trust by holding ourselves to the highest standards of performance and ethics.


Significant Changes

The Department implemented a structured written directive system made up of four forms of written
communication; Policies and Procedures, Rules and Regulations, Written Orders and Memoranda. Each
type of directive has its own purpose within the system with different methods of dissemination and
requirements for retention. Typically all officers are provided with copies of each directive
electronically, it is reviewed at roll call and copies are placed for easy access in three locations in the
station and on an internal intranet site. This system has increased our ability to communicate the
policies of management throughout the organization so that we may work together in a unified manner.
The method of record keeping allows us to better maintain discipline and ensure adherence to those
directives.

We assessed the organizational structure of the Department and assigned functions and responsibility to
appropriate ranks. We formalized Department command protocol and rules for the succession of
authority, ensuring that it is delegated down through the ranks in a clear and ordered manner. Upon the
retirement of Captain Brian Chadwell, one Captain’s position was eliminated in favor of an additional
Lieutenant to flatten the organization and cut costs.

The Are You OK program was established to address the needs of elders and home bound individuals.
The program in which an automated system telephones participant’s homes, and notifies police if no
one answers, resulted in one woman being rescued after suffering an injury from a fall. In addition an
officer met regularly with representatives of the Towns Senior Citizens and the Council on aging.

The Department’s overall training program was formalized by written policy to clearly articulate which
categories of training are considered standard and therefore mandatory on either an initial or annual
basis. Documentation of training became a matter of procedure as well.

We issued written policies and procedures, which govern our response to actual or threatened weapons
of mass destruction including explosive devices.

Other policies and procedures were written to address areas for which there was no established practice.
These included Authorized Weapons for on and off duty use, Post Officer Involved Shooting and
Traumatic Incident Procedures and Motor Vehicle Towing.


                                                   - 67 -
Previous Year Accomplishments

   We worked to prevent crime and disorder and to protect life and property by presenting a visible
    police presence throughout the Town and responding rapidly, with competency when called upon.
    Officers wrote 2,645 motor vehicle citations and affected 213 arrests;

   We received two official citizen complaints regarding the conduct of officers. These as well as all
    internal disciplinary complaints were thoroughly investigated and resolved. By comparison we
    received positive compliments, letters and comment commending the actions of officers, the
    volume of which far exceeded these the number of complaints;

   To facilitate communication within the Department, officers are now required to sign on to the
    Department E-Mail system at the start of each shift in order to receive orders, instructions or
    intelligence information;

   We accomplished our goal of providing each officer with annual in service training consistent with
    the requirements of Massachusetts law and the Criminal Justice Training Council without
    increasing total training costs. This was managed primarily by bringing some of the training in-
    house thereby reducing the number of days of training at the State Training Academy from two to
    three;

   Firearms and use of force training was improved and included the use of handguns, shotguns, patrol
    rifles and an array of less lethal weapons in an effort to provide officers with the options needed to
    perform their job professionally;

   We formalized the background investigation process. Background investigations now follow a
    specific format, which is thorough and repeatable;

   Field training of new recruits was formalized. New officers ride with a Sergeant for three months
    upon graduating from the police academy. During this time they adhere to a structured program
    consisting of specific daily tasks. Their performance is evaluated daily to identify areas of need for
    additional training;

   We conducted several programs of traffic enforcement in response to complaints from residents.
    Our specially trained Commercial Vehicle Enforcement officers conducted random enforcement on
    Essex Street. These were at times done in collaboration with the State Police Truck Team, Lynn
    Police Traffic unit, the Registry of Motor Vehicles and the Department of Environmental
    Protection. Officers worked with the community to solve other traffic and parking related issues
    throughout the town;

   Despite the elimination of funding for the D.A.R.E. Program by the State we continued the
    program, using a combination of Department and donated funds. It is apparent that the community
    values this program and that it is appreciated and welcomed by the students and their parents;

   Two officers worked exclusively with the schools as School Resource Officers. There were many
    opportunities to work proactively with the school community to ensure a safe learning environment;

                                                   - 68 -
   Certified officers conducted three R.A.D. instruction classes for woman teaching self-defense
    techniques against rape and assault. A total of 36 local woman participated;

   School Officers initiated a modified version of the R.A.D. program, dubbed D.A.T.E, which is
    conducted for female students in the High school;

   The Department established a relationship with a private Internet business, to auction seized,
    recovered or found property the proceeds of which go to the general fund;

   Many officers demonstrated a greater sense of community involvement, including volunteering on
    their own time to participate in the annual Public Safety Day and the Holiday Parade.


FY 05 Goals
   Collect data relative to the proportion of citations issued to minority operators. Data collection to
    be completed by January 2005;

   Conduct training on the subject of the issue of racial profiling. To be completed by July 2004;

   Explore Team Policing approach as a means of getting more officers involved with the community
    and problem solving, through the establishment of beat ownership and responsibility by June 30,
    2005;

   Establish a method of performance evaluation for all employees by January 01, 2005;

   Enhance pre planning for response to a Critical Incident and reinforce protocols at staff meetings.
    Project to be completed by August 2004;

   Involve more officers in the design and selection of training topics and bring additional training in–
    house. To be formalized by December 2004;

   Improve upon current methods for reviewing significant topics and policies concerning issues such
    as high-speed pursuit, use of force, domestic violence and employee harassment, through roll call
    trainings. To be completed by December 2004;

   Improve our ability to conduct data analysis through the acquisition of software and training in
    order to measure crime, traffic, accidents and other data to detect patterns and to focus our efforts
    toward enforcement. To be accomplished by December 2004;

   Regularly post Stats and intelligence information in prominent place for viewing by all officers.
    Stats to include crime and other patterns. Also Post individual officers performance stats such as
    citations issued as well as other officer achievements and accomplishments. To be established as a
    practice by December 2004;

   We will work in collaboration with the community and with other municipal agencies, particularly
    Public Works, to devise solutions to persistent traffic problems;
                                                   - 69 -
   Establish a directed traffic enforcement program with specific goals versus current practice of
    relying on officer initiated or self-directed enforcement. To be an established practice by June
    2005, dependant upon accomplishment of enhanced data reporting ability;

   Renovate and expand the existing police facility to provide accessibility for disabled persons,
    enhance the security of the building, and improve the safety of persons in police custody. To have
    obtained approved design by July 04 and to commence construction by December 2004;

   Complete State Certification standards by June 2005. Certification is the first step toward
    achieving Accreditation. The State has cut funding for the Accreditation program. It is expected
    that N.E.M.L.E.C., a consortium of police agencies, will pick up the program in the near future;

   Work to instill in our officers an understanding that courteous and professional service to the
    community reflects well on the entire Police Department inspiring confidence in its members
    through training and discipline;

   We will pursue ways in which to provide much needed fraud prevention education to the seniors in
    the community. First class to take place by July 2004 coupled by media information release;

   Continue established programs D.A.R.E., School Resource Officer Program and R.A.D.;

   Provide the Board of Selectmen and Town Administrator with monthly reports on traffic issues and
    Department activities. To commence by July 2004;

   Improve upon means of communication with Public Works, and Town inspectional agencies as
    well as various boards and committees to ensure the exchange of information pertaining to issues
    of mutual concern. To commence July 2004 with the assignment of officer liaisons.




                                                  - 70 -
                           Police Department Budget

                                        2003         2004          2005          Dollar
Expense Line Item                      Actual       Budget        Budget        Variance

Wages & Salaries                      1,508,592     1,644,994     1,657,217        12,223
Overtime                                300,000       265,000       255,000       (10,000)
Other Salary & Benefit                  462,221       506,484       525,823        19,339


Total Wages & Salaries                2,270,813     2,416,478     2,438,040        21,562

Services                                 86,000            0             0              0
Supplies                                187,450      127,900       135,338          7,438
Other                                         0            0             0              0

Total Operating                         273,450      127,900       135,338          7,438

Capital                                         0     29,000                0     (29,000)

Total Department                      2,544,263     2,573,378     2,573,378                0

                             Police Personnel Listing

                                                           FY04       FY05
                                                          STAFF      STAFF VARIANCE
Department               Title                             POS.       POS.   +/(-)

Police Department        Police Chief                         1         1           0
                         Captain                              2         1          (1)
                         Lieutenants                          4         5           1
                         Sergeants                            6         6           0
                         Patrol Officers                     20        22           2
                         Matrons                             .5        .5           0
                         Animal Control Officer              .5        .5           0
                         Administrative Assistant             2         2           0
Total                                                        36        38           2




                                           - 71 -
Fire
MISSION STATEMENT
The mission of the Swampscott Fire Department is to provide optimum protection from fire loss, and
prompt and professional response to medical emergencies. Our objective is always to prevent loss of
life and property through a proactive approach for fire prevention, however when fire does occur to
contain and extinguish it with minimum loss. The fire department is comprised of three divisions.
Suppression division is responsible for responding to all calls of an emergency nature. Fire prevention
is responsible for all public fire related education as well as all code enforcement. Administration
includes the office of the chief of department, training and operations, and fire investigation.


Significant Changes
Completed a satisfactory 6 year extension of the joint Lynn-Swampscott fire dispatch contract. Fiscal
2004 was the first year the department had a full time training officer and the increase in both quantity
and quality of training has been excellent.

Previous Year Accomplishments

   Completed specifications and ordered new ladder truck;

   All members received required EMT recertification training;

   All members received federally required 24 hour Haz-Mat training. In addition to fire personnel
    training was an extended to Swampscott PD and DPW at no cost to them;

   All power tools were upgraded under a state grant;

   Responded to 1962 alarms without major incident;

   Placed a member on Traffic Study Committee;

   Appointed a liaison to Council on Aging;

   Continued S.A.F.E program in schools despite Massachusetts cut in program funds;

   A fourth defibrillator was added to the apparatus. The department had at least one life saved using
    our defibrillator.




                                                   - 72 -
FY 05 Goals

   Reduce response times by 30 to 60 seconds in the coming year;

   To integrate ambulance dispatch with fire dispatch. This process will require reopening the dispatch
    contract with the Lynn Fire Department and will completed by June 30, 2005;

   To add defibrillators to fire department cars, either through grant or donation by March 15, 2005;

   To continue to train in all areas of fire suppression;

   To train all members in auto extrication by December 21, 2004;

   To continue to monitor and respond to homeland security developments;




                                 Fire Department Budget

                                              2003              2004         2005         Dollar
Expense Line Item                            Actual            Budget       Budget       Variance

Wages & Salaries                            1,560,738          1,692,938    1,692,579         (359)
Overtime                                      200,000            131,065      138,961        7,896
Other Salary & Benefit                        346,998            378,026      367,488      (10,538)


Total Wages & Salaries                      2,107,736          2,202,029    2,199,028       (3,001)

Services                                       60,500            60,500       60,500                0
Supplies                                      131,000           131,000      131,000                0
Other                                               0                 0            0                0

Total Operating                               191,500           191,500      191,500                0

Capital                                                0                0            0              0

Total Department                            2,299,236          2,393,529    2,390,528       (3,001)




                                                      - 73 -
                            Fire Personnel Listing

                                               FY04    FY05
                                              STAFF   STAFF VARIANCE
Department        Title                        POS.    POS.   +/(-)

Fire Department   Fire Chief                    1       1      0
                  Captains                      5       5      0
                  Lieutenants                   5       5      0
                  Fire Fighters                28      28      0
Total                                          39      39      0




                                     - 74 -
Emergency Management
Mission Statement
The Emergency Management Department seeks to maximize survival of persons and preservation of
property in the Town in the event of a natural or manmade disaster by effective planning and
coordinated use of all manpower, equipment, available shelter and any other resources during an actual
emergency. The Department is also responsible for mitigation and financial recovery from such
incidents and also for formulating and exercising emergency plans for natural disasters and hazardous
materials accidents, which may occur at facilities and transportation routes within the Town.


                             Emergency Management Budget

                                              2003          2004              2005         Dollar
    Expense Line Item                        Actual        Budget            Budget       Variance

    Wages & Salaries                            1,384          1,384           1,384                0
    Overtime                                        0              0               0                0
    Other Salary & Benefit                                         0               0                0


    Total Wages & Salaries                      1,384          1,384           1,384                0

    Services                                        0              0               0                0
    Supplies                                    3,300          3,300           3,300                0
    Other                                                          0               0                0

    Total Operating                             3,300          3,300           3,300                0

    Capital                                           0             0                 0             0

    Total Department                            4,684          4,684           4,684                0

                       Emergency Management Personnel Listing

                                                                     FY04        FY05
                                                                    STAFF       STAFF VARIANCE
      Department                Title                                POS.        POS.   +/(-)

     Emergency Management Director of Emergency Mgmt                    .5        .5            0
     Total                                                              .5        .5            0


                                                 - 75 -
Building Department
Mission Statement
The Building Department enforces laws and state codes, promulgates and enforces reasonable rules and
regulations relating to building construction, zoning enforcement, health and sanitation, and weights
and measures for the purpose of protecting public health and safety. The Inspectional Services
Department is also responsible for making inspections, issuing permits, licenses and certificates, and
provides for appeals and variances as mandated by the state sanitary code, the state environmental code
and various other State codes and Town By-Laws.

Significant Changes
Full time Administrative Assistant to allow office access throughout the entire workday.

Previous Year Accomplishments

   Established filing system for property folders;

   Began procedure for retrieval or archival information;

   Created checklist for zoning application information;

   Established consistent Building, Plumbing, Gas and Electric fee schedules;

   Established policy for inspection scheduling.


FY 05 Goals

   To re-design building permit card by September 2004;

   To develop information checklist for: Building permit application by July 31, 2004;

   To develop matrix for inter-department jurisdiction by July 31, 2004;

   Centralize/Standardize inspection request procedure by July 31, 2004;

   Continue filing archived building permit applications and construction plans;

   To develop information link with Assessors department, assuring consistency and accuracy of
    information regarding, property use, location, zoning, etc. by September 2004.



                                                      - 76 -
                             Building Inspector Budget

                                         2003              2004          2005         Dollar
Expense Line Item                       Actual            Budget        Budget       Variance

Wages & Salaries                         145,433          142,173        147,958            5,785
Overtime                                       0                0              0                0
Other Salary & Benefit                       980              300             50             (250)



Total Wages & Salaries                   146,413          142,473        148,008            5,535

Services                                       0                0              0             0
Supplies                                  17,460           11,960          9,460        (2,500)
Other                                          0                0              0             0

Total Operating                           17,460           11,960          9,460        (2,500)

Capital                                           0                0             0              0

Total Department                         163,873          154,433        157,468            3,035



                         Building Department Personnel Listing

                                                               FY04       FY05
                                                              STAFF      STAFF VARIANCE
Department                Title                                POS.       POS.   +/(-)

Inspectional Services     Building Inspector                        1       1           0
                          Clerical                                  1       1           0
                          Plumbing/Gas Inspector                   .5      .5           0
                          Wiring Inspector                         .5      .5           0
Total                                                               3       3           0




                                                 - 77 -
North Shore Regional Vocational School District
Assessment
The North Shore Regional Vocational School District Assessment is based on enrollment from the 16
member communities in the regional school district. The regional schools receive the majority of their
funding directly from the State in the form of Chapter 70 school aid. The regional school would then
develop their budget and assess the participating communities, based on enrollment, for the remainder
of the funds they would need to develop a balanced budget.



        North Shore Regional Vocational School Assessment Budget

                                              2003          2004          2005         Dollar
    Expense Line Item                        Actual        Budget        Budget       Variance

    Regional Assessment                        97,032       136,000       128,000         (8,000)

    Total Direct Expenses                      97,032       136,000       128,000         (8,000)




                                                 - 78 -
Education
The assessment for the School Departments i set in large part by the Education Reform Act of 1993 and
subsequent laws related to Education Reform.

The total FY 05 Proposed School Budget of $17,554,230 represents an increase of $150,000, or 0.86%,
from FY 04. Although Chapter 70 school aid was level funded in the House I budget, it does not keep
pace with the increase in contractual and other obligations.

Details of the School Department budget can be found in the separate budget document developed by
the School Department.


                           School Department Program Budget

                                               2003         2004          2005         Dollar
     Expense Line Item                        Actual       Budget        Budget       Variance

     Net School Apporpriation               17,348,230    17,404,230   17,554,230        150,000

     Total Direct Expenses                  17,348,230    17,404,230   17,554,230        150,000



                    School Department Sources of Revenue




                                                         State Aid
                                                          11.1%
                              Town
                          Appropriation
                             88.9%




                                                - 79 -
Public Works
Mission Statement
The Department of Public Works (DPW) provides professional quality maintenance, repair and
construction services while maintaining 50 miles of streets, six parks and playgrounds and the
Swampscott Cemetery. The DPW is also responsible for the ongoing maintenance of three municipal
buildings, 48 miles of water mains, 47 miles of sewer mains, seven sewer lift stations, the sewer
pumping station and over 40 vehicles and pieces of equipment. Additionally, the DPW is responsible
for rapid response to all snow, ice and other inclement weather emergencies and conditions. The DPW
enforces water, sewer and snow by-laws, grants petitions of location for utilities, and maintains
engineering records and Town maps. Lastly, the DPW plays a significant role in the daily operation of
other Town departments in responding to requests for service. The Department budget is divided into
four divisions: Public Works (General), Buildings & Grounds, Water and Sewer.


Significant Changes

With several new employees holding key administrative positions, the Department has begun the task
of reorganizing operations and updating and improving operational procedures. The focus over the
next several months will be the development of a plan which will realign the department and allow for
more efficient operations. Improvements are expected to be realized through the more efficient
utilization of available technology



Administration
The departmental administration provides centralized administrative and management support for all
departmental operations. Activities include policy development, program planning and procedural
guidance, procurement and contract administration, position and budgetary management and
community relations. The department administrators are responsible for fiscal administration,
budgeting, and, most importantly, responding to the needs of the citizens of Swampscott for all matters
relating to services and infrastructure, including, water, sewer, public facilities and roadways.

 Engineering functions performed for the Department under the direction of the Director include the full
range of administrative functions associated with the construction of public works projects, from initial
design through closeout. Additionally, technical support is provided to other Town departments and
agencies, including routine and special services in support of Town projects. Other engineering
responsibilities include the maintenance of drawings and maps.




                                                  - 80 -
Previous Year Accomplishments

   Began implementation of an automated attendance timekeeping system.

FY 05 Goals

   Complete installation an automated attendance and timekeeping system, and

   Institute a computerized complaint tracking/work order management system

Public Works - General
The is the most visible operations section of the Department of Public Works, having the largest
portion of the workforce and engaging in everyday activities that directly impact the citizens of the
Town. The Field Coordinator is responsible for the supervision of employees in this division. Some
activities vary seasonally, such as street sweeping and tree trimming in the spring, summer and fall and
snow and ice control in the winter. Other activities continue on a year round basis, such as litter
removal, roadway repairs and sign replacements and installations. Personnel in this group also perform
many hand labor- intensive activities such as emptying street barrels, sweeping streets and removing
street debris.


Previous Year Accomplishments

   Planted 30 trees throughout the Town

   Removed 150 dead or dangerous trees, and

   Tree City USA recipient for the 13th consecutive year.


FY 05 Goals

   Plant approximately 20 new trees in the vicinity of the Machon School, and

   Secure $5,000 in grant funds from the Mass ReLeaf Program.




                                                 - 81 -
Buildings & Grounds
The Buildings& Grounds Division has primary responsibility for all municipal buildings and parks,
including the exterior of the Schools and the cemetery. The Division interacts with other departments
to address mutual needs and goals for internal and external municipal services. Of particular focus the
past year has been enhancing working environments, improving customer service areas and upgrading
capital investments.

Previous Year Accomplishments

   Developed a multi-year capital planning for total restoration of Town Hall;

   Completed final phase and received EPA compliance certification for environmental site
    assessment, and completed comprehensive analysis detailing existing and future programming
    needs and prepared feasibility study detailing concept site and building plans for the Public Works
    Facility;



FY 05 Goals
   Review and update the cemetery fee structure.

   Repair damaged head stones, and set up maintenance program for upkeep of older head stones.

   Expand Preventive Maintenance programs for parks and playgrounds, including irrigation systems
    and play structures.




                                                  - 82 -
                          Public Works / Highway Budget

                                     2003               2004         2005             Dollar
 Expense Line Item                  Actual             Budget       Budget           Variance

 Wages & Salaries                    469,199            513,069      532,129             19,060
 Overtime                             15,000             15,000       15,000                  0
 Other Salary & Benefit               21,043             24,543       12,953            (11,590)


 Total Wages & Salaries              505,242            552,612      560,082              7,470

 Services                             75,000             75,000       75,000                  0
 Supplies                            165,820            141,200      143,700              2,500
 Other                                     0                  0            0                  0

 Total Operating                     240,820            216,200      218,700              2,500

 Capital                              62,500             50,000                 0       (50,000)

 Total Department                    808,562            818,812      778,782            (40,030)


                  Public Works / Buildings & Grounds Budget

                                    2003               2004         2005             Dollar
Expense Line Item                  Actual             Budget       Budget           Variance

Wages & Salaries                    185,317           177,892       145,930           (31,962)
Overtime                              3,000             3,000         3,000                 0
Other Salary & Benefit                8,000             8,000         6,000            (2,000)


Total Wages & Salaries              196,317           188,892       154,930           (33,962)

Services                                  0                 0             0                    0
Supplies                             14,238            14,000        14,000                    0
Other                                     0                 0             0                    0

Total Operating                      14,238            14,000        14,000                    0

Capital                                     0                  0            0                  0

Total Department                    210,555           202,892       168,930           (33,962)



                                             - 83 -
                         Public Works / Special Accounts

                                        2003              2004            2005           Dollar
Expense Line Item                      Actual            Budget          Budget         Variance

Wages & Salaries                                 0                0                0               0
Overtime                                         0                0                0               0
Other Salary & Benefit                           0                0                0               0



Total Wages & Salaries                           0                0                0               0

Services                                         0                0                0               0
Supplies                                         0                0                0               0
Other                                            0                0                0               0

Total Operating                                  0                0                0               0

Capital                                 162,000          147,500             147,500               0

Total Department                        162,000          147,500             147,500               0




                            Public Works Personnel Listing

                                                             FY04             FY05
                                                            STAFF            STAFF VARIANCE
Department               Title                               POS.             POS.   +/(-)

Dept. of Public Works    Director                                       .5         .5           0
                         Assistant Town Engineer                        .5         .5           0
                         Field Coordinator                              .5         .5           0
                         Working Foreman                                 2          2           0
                         MEOS                                            5          5           0
                         MEOH                                            1          1           0
                         Laborer                                         0          1           1
                         Custodian                                       2          2           0
                         Clerical                                        2          1          -1

Total                                                                 15.5       15.5              0


                                                - 84 -
Health
Mission Statement
The Public Health Division promotes and protects the health and wellness of the community and
performs the core functions of public health assessment, assurance and surveillance under the guidance
of the Swampscott Board of Health.

Significant Changes
During Fiscal 2004 the town appointed a new full time health director who will assume the role of
animal inspector. Due to this change, prior year accomplishments and FY 2005 goals are not available
at this time.


                                  Health Department

                                           2003              2004      2005         Dollar
Expense Line Item                         Actual            Budget    Budget       Variance

Wages & Salaries                           116,695          119,055    117,794          (1,261)
Overtime                                         0                0          0               0
Other Salary & Benefit                       1,800              900          0            (900)



Total Wages & Salaries                     118,495          119,955    117,794          (2,161)

Services                                    16,600           14,000     10,300          (3,700)
Supplies                                     4,275            4,000      2,500          (1,500)
Other                                            0                0          0               0

Total Operating                             20,875           18,000     12,800          (5,200)

Capital                                    888,950          800,000    815,900         15,900

Total Department                         1,028,320          937,955    946,494          8,539




                                                   - 85 -
             Health Department Personnel Listing

                                             FY04    FY05
                                            STAFF   STAFF VARIANCE
Department   Title                           POS.    POS.   +/(-)

Health       Health Director                   1       1     0
             Clerk                             1       1     0
             Public Health Nurse              .5      .5     0
Total                                        2.5     2.5     0




                                   - 86 -
Recreation
Mission Statement

The Recreation Department creates, coordinates and implements a comprehensive program to enhance
recreational, cultural and educational opportunities for all age groups in the community.

Significant Changes

The Town Administrator has recommended the hiring of a full time Recreation Director. The new
position holder will be responsible for expanding recreation programs to fulfill the mission statement of
the department.

Previous Year Accomplishments

   Continuation of leisure time activities which include adult and youth tennis, teen fitness and
    conditioning, street hockey, playground activities, youth and teen sailing, track and field, youth and
    adult basketball, softball, recreation center programs, beaches and lifeguards;

   Continuation of fence and backstop replacement projects;

   Continuation of field house expansion project to provide women’s locker rooms;

   Met with Public Works Department, independent Ice Arena Committee and other Swampscott
    interests including the Rails to Trails project to develop maintenance plans for fields and
    playgrounds as well as explore new activities for adult and youth in Swampscott;

   Increased beach and parking sticker fees to offset budget costs.

FY 05 Goals

   Work on the development of a master plan that involves maintenance of fields and playgrounds and
    establishing a field usage fee for all groups using Swampscott fields by August 2004;

   Continue to provide and improve of leisure time activities which include adult and youth tennis,
    teen fitness and conditioning, street hockey, playground activities, youth and teen sailing, track and
    field, youth and adult basketball, softball, recreation center programs, beaches and lifeguards;

   The establishment of a Recreation Revolving Fund;

   Continue with the field house addition of a women’s locker room;

   Continue plans to develop area at Phillips Park for additional field space;

   Continue our fence and backstop replacement project to keep our playing areas safe and playable.
                                                   - 87 -
                                    Recreation Budget

                                            2003          2004         2005         Dollar
  Expense Line Item                         Actual       Budget       Budget       Variance

  Wages & Salaries                            67,278       67,278      101,048            33,770
  Overtime                                        0                                           0
  Other Salary & Benefit                          0                                           0

  Total Wages & Salaries                      67,278      67,278       101,048        33,770



  Services                                         0           0             0                0
  Supplies                                    11,620      11,620        11,520             (100)
  Other                                            0           0             0                0

  Total Operating                             11,620      11,620        11,520             (100)

  Capital                                            0            0            0              0

  Total Department                            78,898      78,898       112,568        33,670



                      Recreation Department Personnel Listing

                                                            FY04       FY05
                                                           STAFF      STAFF VARIANCE
Department                 Title                            POS.       POS.   +/(-)

Recreation                 Recreation Coordinator            .5         .5           0
                           Secretary                         .5         .0         (.5)
                           Recreation Director                0          1           1
Total                                                         1        1.5          .5




                                                - 88 -
Council on Aging
Mission Statement
The Swampscott Senior Center identifies the needs of the town’s over sixty years of age population and
designs, implements, promotes and coordinates new and existing elderly services. The Swampscott
Senior Center will provide an atmosphere of welcome wherein members are treated with dignity and
respect. The center is open to all seniors regardless of race, color, creed or sex. An outreach program
will provide support and information to those seniors unable to come in to the center. The staff will
assist members and volunteers as referral resources and advocates.

Significant Changes
This past year started out quite dramatically in a most unfortunate way. A senior was found dead in her
home from hypothermia. Her husband had to be hospitalized, also suffering from hypothermia due to a
burner mishap. My response together with Marc Paster, chairman, of the Board of Selectman, was to
form an elder outreach committee in quick response to this tragedy. We soon had a committee in place
consisting of members from the Police department, Fire department, COA board, Board of Health,
Greater Lynn Senior Services and the Attorney Generals office. One of our first initiatives was to form
the “Are You O.K.?” system in conjunction with the Nahant Police Department. We have over forty
elders enrolled and just last week the police responded when women did not answer her phone, they
found her in the basement of her house suffering from a fractured hip. She had been down for two
hours and serious consequences may have been avoided due to this program.

Previous Year Accomplishments

   LOCAL ELDERLY AWARENESS PROGRAM (L.E.A.P.) neighborhood check was formed. The
    students published an excellent booklet titled L.E.A.P., which demonstrates the observations that
    students can make about an elder household;

   The grounds have been improved and safety issues dealt with; the handicapped ramp was installed
    and the very bumpy parking lot was repaved. We also had a couple of small evergreens planted and
    some seasonal bushes to prevent “run off” and to enhance the appearance of the building;

   Several social activities were held to celebrate holidays and special events;

   The Swampscott Garden Club created 20 live centerpieces, which were distributed by our outreach
    worker and volunteers to shut ins;

   Initiated two new health programs, a mini health fair and the presence of the town public health
    nurse on site 2 hours weekly;

   Started an interfaith food pantry, which donated food to those in need on the third Thursday of each
    month. There are approximately 20 seniors who use this program;


                                                   - 89 -
     Provided 500 monthly newsletters at various locations in town informing the community of our
      programs;

     Intermediate/advanced bridge class was formed;

     Coordinated volunteers who provided 1667 hours of service equaling $25,655.13 in market
      value;

     Continued a caregiver support group, which meets every other week under the direction of a
      GLSS social worker;

     Continue to plan inter-generational programs such as leaf raking by students in the National
      Honor Society.

FY 05 Goals

     To incorporate pedestrian safety program for 10 Senior Citizens along with the fifty-five alive
      driver safety program tentatively scheduled for September 2004;

     To review our efforts to increase the enrollment in the “Are You O.K.”? program by at least
      15%;

     To design a new and more effective intake assessment form for new clients by July 2004;

     To institute efforts to encourage at least six recent retirees to join the Senior Men’s Club in
      order to assure the continuity of the organization by June 2005;

     To increase craft projects from 4 to 6 times yearly;

     To increase the number of seniors who participate in movie day by doing a survey to see which
      movies would be of high interest to them by July 2005;

     To plan 6-8 trips in January that will be spread throughout the year. Each trip will cover its own
      expenses and in some cases create a cushion of funds so that we will have the money for
      required down payments for future trips;

     To update the Senior Center web site as needed. To review quarterly more often if necessary
      recommend changes as necessary;

     To continue to work with the building committee regarding plans for a new senior center, with a
      tentative start date of 2005;

     To continue to work with the members of the Inter-Faith food pantry to reach 4 new clients by
      December 31,2004;



                                                  - 90 -
       To teach office assistant, Susan Pierce to handle some transportation issues independently by
        July 2004;

       To recruit and train 4 volunteers, three to assist with kitchen duties, one person to act as a
        handyman, by July 2004.


                                Council on Aging Budget

                                             2003              2004         2005         Dollar
Expense Line Item                           Actual            Budget       Budget       Variance

Wages & Salaries                               70,699          67,900        79,714          11,814
Overtime                                            0               0             0               0
Other Salary & Benefit                              0               0             0               0


Total Wages & Salaries                         70,699          67,900        79,714          11,814

Services                                            0               0             0               0
Supplies                                       28,000          28,000        16,150         (11,850)
Other                                               0               0             0               0

Total Operating                                28,000          28,000        16,150         (11,850)

Capital                                               0                0            0              0

Total Department                               98,699          95,900        95,864              (36)



                   Council on Aging Department Personnel Listing

                                                                   FY04      FY05
                                                                  STAFF     STAFF VARIANCE
Department                  Title                                  POS.      POS.   +/(-)

Council On Aging            Director                                 1          1            0
                            Outreach Worker                         .5         .5            0
                            Activities Coordinator                  .5         .5            0
                            Van Driver                              .5         .5            0
Total                                                              2.5        2.5            0




                                                     - 91 -
Veterans Services
Mission Statement
The Veterans Services Department provides federal, state and local financial and medical assistance to
veterans and their dependents residing in the Town (those eligible under MGL C115 and CMR 108).
Under prescribed regulations, the Department assists all veterans in obtaining benefits for which they
are entitled, including partial payment of burial expenses for indigent veterans.



                                  Veterans Services Budget

                                               2003            2004          2005          Dollar
    Expense Line Item                         Actual          Budget        Budget        Variance

    Wages & Salaries                             9,215          9,215             9,308          93
    Overtime                                         0              0                 0           0
    Other Salary & Benefit                           0              0                 0           0


    Total Wages & Salaries                       9,215          9,215             9,308          93

    Services                                    10,000          7,500             7,407         (93)
    Supplies                                     2,300          2,300             2,300           0
    Other                                            0              0                 0           0

    Total Operating                             12,300          9,800             9,707         (93)

    Capital                                               0            0             0               0

    Total Department                            21,515         19,015            19,015              0




                             Veteran’s Department Personnel Listing

                                                               FY04         FY05
                                                              STAFF        STAFF VARIANCE
Department                Title                                POS.         POS.   +/(-)

Veteran’s                 Veteran’s Agent                        .5         .5            0
Total                                                            .5         .5            0


                                                 - 92 -
Public Library
Mission Statement
Swampscott residents and visitors of all ages have access to current information and recreational
material and programs at the Swampscott Public Library. The Swampscott Public Library provides to
its users the information they want, in a timely manner, opportunities and support for lifelong learning,
and curriculum support for students for local schools and home-based educators. We are committed to
provide educational support, current titles, and basic information to the townspeople.


Significant Changes
Due to budget constraints, the library was forced to close on Sunday, reduce the number of Saturday
openings, and close one half hour earlier in the evening.

Previous Year Accomplishments

   Increased circulation by 5000 items;

   Increased our number of public usage computers due to a Bill & Melinda Gates Grant;

   Received a Massachusetts Board of Library Commissioners Grant for $6,000;

   Continued offering computer classes for senior citizens in basic computer training and email
    classes;

   Instituted a program of co-operation with the school librarians which included meetings, material
    sharing and program sharing.

FY 05 Goals

   Continue to increase circulation figures;

   Increase and improve our college preparation books by purchasing at least 20 more titles by January
    2005;

   Offer at least one career information night for parents and students every 16 weeks;

   Establish a series of volunteer opportunities, per semester, for students to comply with community
    service requirements by September 2004;

   Secure funding for enhancement of our Russian collection of materials through community
    outreach or grants by September 2004;


                                                  - 93 -
   Shift the biography section of the library to the lower level by September 2004 in order to secure
    more shelving of materials on the main floor;

   Digitize historic pictures and maps from our collection by June 2005
    Secure at least two additional databases, for example historical research and/or business databases
    by April 2005.
                                     Library Budget

                                           2003              2004            2005         Dollar
Expense Line Item                         Actual            Budget          Budget       Variance

Wages & Salaries                           361,866           346,156         364,278        18,122
Overtime                                         0                 0               0             0
Other Salary & Benefit                       5,672            14,248          12,126        -2,122


Total Wages & Salaries                     367,538           360,404         376,404        16,000

Services                                         0                 0               0                0
Supplies                                    36,900            33,800          33,800                0
Other                                      106,922           107,991         107,991                0

Total Operating                            143,822           141,791         141,791                0

Capital                                            0                 0               0              0

Total Department                           511,360           502,195         518,195        16,000

                          Library Department Personnel Listing
                                                                  FY04         FY05
                                                                 STAFF        STAFF VARIANCE
Department                Title                                   POS.         POS.   +/(-)

Library                   Director                                      1          1          0
                          Assistant Director                            1          1          0
                          Secretary                                    .5         .5          0
                          Children’s Librarian                         .5         .5          0
                          Circulation                                   1          1          0
                          Reference                                   1.5        1.5          0
                          Cataloguer                                   .5         .5          0
                          Library Assistant                            .5         .5         .5
                          Adult Aide                                    4          4          0
                          AV Processor                                 .5         .5          0
                          Paige                                       2.5        2.5        2.5
Total                                                                13.5       13.5          0

                                                   - 94 -
Debt Service
BONDED DEBT
This expenditure covers the cost of the principal payments of the Town's bonded debt with the
exception of the Sewer and Water Enterprise Funds which appears in their respective budgets. This
expenditure includes payment on the Town's recent long-term bonding and payment required from the
Town’s CIP.

General Debt Limit

Under Massachusetts’ statutes, the General Debt Limit of the Town consists of a Normal Debt Limit
and a Double Debt Limit. The Normal Debt Limit of the Town is 5 percent of the valuation of taxable
property. The Town of Swampscott can authorize debt up to this amount (currently $96,772,555)
without State approval. The Town can authorize debt up to twice this amount (Double Debt Limit)
with the approval of the State Emergency Finance Board.

There are many categories of general obligation debt which are exempt from and do not count against
the General Debt Limit. Among others, these exempt categories include revenue anticipation notes and
grant anticipation notes, emergency loans, loans exempted by special laws, certain school bonds, sewer
project bonds and solid waste and solid waste disposal facility bonds (as approved by the Emergency
Finance Board), and, subject to special debt limits, bonds for water, housing, urban renewal and
economic development (subject to various debt limits) and electric and gas (subject to a separate limit
to the General Debt Limit, inducing the same doubling provision). Industrial revenue bonds, electric
revenue bonds and water pollution abatement revenue bonds are not subject to these debt limits. The
General Debt Limit and the special debt limit for water bonds apply at the time the debt is authorized.
The other special debt limits generally apply at the time the debt is incurred.

Debt Limit Calculation (Debt from all sources including Water and Sewer)

Equalized Valuation Fiscal 2003                   1,935,451,100
Debt Limit                                           96,772,555

Outstanding Debt outside Limit 6/15/03                12,727,526
Outstanding Debt inside Limit 6/15/03                  7,751,000
Total Outstanding Debt 6/315/03                       20,478,526

Debt Limit                                            96,772,555
Debt Subject to Debt Limit                             7,751,000
Borrowing Capacity                                    89,021,555

Communities have four basic ways to finance capital projects: pay-as-you-go financing, debt financing,
public private ventures, and intergovernmental financing (such as the MWRA’s interest free loan/grant
program). Over-reliance on any one of these options can be risky to a local government's fiscal health.
It can also restrict the municipality’s ability to respond to changes in economic and fiscal conditions.
The Town’s policy makers are careful to choose the right combination of financing techniques.

                                                 - 95 -
Authorization of General Obligation Debt

Under the General Laws, bonds and notes of a Town are generally authorized by vote of two-thirds of
all the members of the Town Council. Provision is made for a referendum on the filing of a petition
bearing the requisite number of signatures that would require all the cost to be excluded from the
Proposition 2 ½ taxation limits. Borrowing for certain purposes also requires administrative approval
from the Commonwealth.

Temporary loans in anticipation of current revenues, grants and other purposes can be made without
local legislative approval.

Types of Obligations

Under the statutes of the Commonwealth, the Town is authorized to issue general obligation
indebtedness of the following types:

Serial Bonds and Notes - These are generally required to be payable in equal or diminishing annual
principal amounts beginning no later than the end of the next fiscal year commencing after the date of
issue and ending within the terms permitted by law. Level debt service is permitted for bonds or notes
issued for certain purposes, and for those projects for which debt service has been exempted from
property tax limitations. The maximum terms vary from one year to 40 years, depending on the
purpose of the issue. Most of the purposes are capital projects. They may be made callable and
redeemed prior to their maturity, and a redemption premium may be paid. Refunding bonds or notes
may be issued subject to the maximum terms measured from the date of the original bonds or notes.
Serial bonds may be issued as "qualified bonds" with the approval of the State Emergency Finance
Board, subject to such conditions and limitations, (including restrictions on future indebtedness) as may
be required by the Board. The State Treasurer is required to pay the debt service on "qualified bonds"
and thereafter to withhold the amount of the debt service from state aid or other state payments.
Administrative costs and any loss of interest income to the Commonwealth are to be assessed upon the
Town.

Bond Anticipation Notes - These generally must mature within two years of their original dates of
issuance, but may be refunded from time to time for a period not to exceed five years from their
original dates of issuance, provided that (except for notes issued for certain school projects that have
been approved for state school construction aid) for each year that the notes are refunded beyond the
second year, they must be paid in part from revenue funds in an amount at least equal to the minimum
annual payment that would have been required if the bonds had been issued at the end of the second
year. The maximum term of bonds issued to refund bond anticipation notes is measured from the date
of the original issue of the notes, except for notes issued for such State-aided school construction
projects.

Revenue Anticipation Notes - Revenue Anticipation Notes are issued to meet current expenses in
anticipation of taxes and other revenues. They must mature within one year but, if payable in less than
one year, may be refunded from time to time up to one year from the original date of issue.


                                                  - 96 -
Grant Anticipation Notes - Grant Anticipation Notes are issued for temporary financing in
anticipation of federal grants and state and county reimbursements. They must generally mature within
two years, but may be refunded from time to time as long as the municipality remains entitled to the
grant or reimbursement.

Revenue Bonds - Cities and towns may issue revenue bonds for solid waste disposal facilities and for
projects financed under the Commonwealth's water pollution abatement revolving- loan program. In
addition, cities and towns having electric departments may issue revenue bonds, and notes in
anticipation of such bonds, subject to the approval of the state Department of Public Utilities. The
Town of Swampscott does not have an electric department, and has not authorized any other Town
revenue bonds.

Bond Ratings

The Town’s bond ratings are as follows: Moody’s “Aa3”



                               Debt Service Program Budget*

                                          2003              2004        2005        Dollar
Expense Line Item                        Actual            Budget      Budget      Variance

Principal - Long Term                  1,936,321           2,229,416   2,339,982     110,566

Interest - Long Term                     446,822            597,368     471,931     (125,437)

Certification                             20,000             20,000      20,000            0

Total Direct Expenses                  2,403,143           2,846,784   2,831,913     (14,871)




*Exclusive of School Construction Debt




                                                  - 97 -
 Health Benefits and Insurance
Pursuant to MGL Chapter 32B, as a benefit of employment, any active, permanent employee of the
Town who works in excess of twenty (20) hours per week is eligible for group health insurance
coverage.

The Town offers the choice of four health insurance plans to it's active employees: HMO Blue, Blue
Choice, Blue Care Elect Preferred and VIP 2000. As of December 2003 a total of 454 employees and
retirees were enrolled in one of the Town’s health insurance plans.

The rates in the chart below are actual for FY 04. The current negotiations have not been concluded.
However a 13% increase is anticipated for FY 05.

The Town pays 60% of the monthly premiums, with the employee paying the remaining premium
through weekly payroll deductions. As of December 1, 2003 the respective monthly costs and
enrollment statistics for each of the plans are as follows:

                                     INDIVIDUAL COVERAGE

                      Town           Employee       Total          # Employees
                      Cost           Cost           Cost             Enrolled

HMO Blue              $222.17        $148.11        $370.28          183
Blue Choice           $277.18        $184.79        $461.97           27
Blue Care Elect       $291.04        $194.02        $485.06           15
VIP 2000              $449.24        $299.49        $748.73            9

                                       FAMILY COVERAGE

                      Town           Employee       Total          # Employees
                      Cost           Cost           Cost           Enrolled

HMO Blue              $592.28         $394.86       $987.14           178
Blue Choice           $739.11         $492.74       $1,231.85          29
Blue Care Elect       $776.07         $517.38       $1,293.45          10
VIP 2000              $1,198.53       $799.02       $1,997.55           3

As a benefit of retirement, former Town employees, and their surviving spouses, are also eligible for
group health insurance coverage.

The Town offers it's Medicare eligible retired employees Blue Cross’s Medex III Plan. The Town pays
60% of the premium.
                                     INDIVIDUAL PLANS

                      Town           Employee       Total          # Employees
                      Cost           Cost           Cost           Enrolled

Medex                 $191.22        $68.78         $260.00           277
                                                 - 98 -
                     Health Insurance / Property Insurance Budget
                                   2003                      2005        Dollar
Expense Line Item                 Actual     2004 Budget    Budget      Variance


Health Insurance                 2,774,020     2,800,000    3,125,000     325,000


Total Health Insurance           2,774,020     2,800,000    3,125,000     325,000


Property & Casualty Insurance     136,500         200,000    250,000       50,000


Total Property & Casualty         136,500         200,000    250,000       50,000




Total Department                 2,910,520     3,000,000    3,375,000     375,000




                                             - 99 -
Undistributed Expenses-Cherry Sheet Assessments
CHERRY SHEET ASSESSMENTS
For the purpose of budgeting for FY 05, estimates were based estimated Cherry Sheets issued by the
Department of Revenue based upon the release of the Governor’s budget (House I).

RETIREMENT SYSTEM AUDIT
In compliance with Chapter 32 of the General Laws, the Public Employee Retirement Administration
Commission conducts an examination of each municipal retirement system tri-annually. The Town's
Retirement System is monitored by PERAC on an annual basis.

MOTOR VEHICLE EXCISE
This assessment reimburses the State for a portion of the costs incurred by the Registry of Motor
Vehicles in the preparation of annual Motor Vehicle Excise tax bills.

ELDERLY GOVERNMENTAL RETIREES
The Elderly Governmental Retirees plan is a contributory group health and life insurance plan
established for Town employees who retired prior to the adoption of the Town's group policy. This
allotment covers the administrative premium costs as determined by the State and is carried on the
Cherry Sheet.

MOSQUITO CONTROL PROJECTS
Municipalities are assessed by the State for the costs of mosquito control services. There are eight
mosquito control districts whose costs are apportioned to member municipalities on the Cherry Sheet.
All mosquito control projects are to be assessed their proportional expenses for the administration of
the State Reclamation Board.

AIR POLLUTION CONTROL
The Air Pollution Commission supervises six districts statewide. The Commission is empowered
through the Office of the Governor and has a mandate to control air pollution through the enforcement
of Air Pollution Control Acts and Safety Standards.

METROPOLITAN AREA PLANNING COUNCIL
The Metropolitan Area Planning Council (MAPC) serves 101 communities as a clearinghouse for the
Federal A-95 review process.

PUBLIC TRANSPORTATION
The Massachusetts Bay Transportation Authority (MBTA) provides bus/minibus, commuter rail
transportation across the Town and to surrounding communities. The total annual MBTA assessment
cannot increase by more than 2 ½ percent of the prior year's actual assessment unless new or expanded
service has been documented.

SPECIAL EDUCATION ASSESSMENT
The State receives this reimbursement for providing special needs education to children enrolled in (1)
state hospital schools or (2) private institutions, whose placements were made before 1975.


                                                 - 100 -
REGISTRY OF MOTOR VEHICLES-HOLD PROGRAM
Since 1995, the Parking Clerk has implemented a provision of Massachusetts General Laws Chapter 90
which enables the Town to request the State Registry of Motor Vehicles not to renew the license and
registration of an operator/owner of a motor vehicle that has two or more outstanding parking tickets.
This provision, enacted after the motorist has failed to pay the parking tickets and had an opportunity
for a hearing, has resulted in a significant decrease in the number of delinquent payments.



                    State Assessments - Cherry Sheet Budget

                                             2003           2004         2005         Dollar
  Expense Line Item                         Actual         Budget       Budget       Variance

  Supervision of Retirement                        0             0             0               0
  Motor Vehicle Excise                             0             0             0               0
  Ret. Employees Health Ins                        0             0             0               0
  Mosquito Control                            15,983        15,391        15,758             367
  Air Pollution Districts                      4,142         4,302         4,393              91
  Metropolitan Area Planning                   3,657         3,749         3,826              77
  RMV Non-Renewal Surc.                        9,480        13,740        17,240           3,500
  MBTA Chs. 161A, 825                        399,925       356,247       312,448         (43,799)
  Boston Met. Trans. District                      0             0             0               0
  Multi - Year Repayment                           0             0             0               0
  SPEC EDUC                                        0             0           787             787
  School Choice                                    0        24,827        15,000          (9,827)
  Charter School Assessment                        0        24,027        41,750          17,723
  Essex County                                     0        64,577        66,397           1,820

  Total Direct Expenses                      433,187       506,860       477,599         (29,261)

  CHERRY SHEET OFFSET RECEIPTS
    Racial Equality                                         147,114       147,114              0
    School Lunch                                              7,959         8,290            331
    Public Libraries                                         17,214        17,509            295

  Total Cherry Sheet Assessments & Offsets                  679,147       650,512        -28,635




                                                 - 101 -
Non-Departmental Budgets




          - 102 -
                         Finance Committee Budget
                                  2003                       2005         Dollar
Expense Line Item                Actual       2004 Budget   Budget       Variance

Wages & Salaries                      500              0             0              0
Overtime                                               0                            0
Other Salary & Benefit                    0            0             0              0

Total Wages & Salaries                500              0             0              0

Services                                0              0          0              0
Supplies                              150              0        275            275
Other                                   0              0          0              0

Total Operating                       150              0        275            275

Capital                                   0            0             0              0

Total Department                      650              0        275            275

                               Law Budget
                                  2003                       2005         Dollar
Expense Line Item                Actual       2004 Budget   Budget       Variance

Wages & Salaries                          0                          0              0
Overtime                                  0                          0              0
Other Salary & Benefit                    0                          0              0


Total Wages & Salaries                    0            0             0              0

Services                           59,000         55,000      55,000                0
Supplies                                0              0           0                0
Other                                   0              0           0                0

Total Operating                    59,000         55,000      55,000                0

Capital                                   0            0             0              0

Total Department                   59,000         55,000      55,000                0




                                    - 103 -
                               Parking Budget
                                   2003                       2005         Dollar
Expense Line Item                 Actual       2004 Budget   Budget       Variance

Wages & Salaries                           0            0       1,500         1,500
Overtime                                   0            0           0             0
Other Salary & Benefit                     0            0           0             0



Total Wages & Salaries                     0            0       1,500         1,500

Services                                   0            0           0              0
Supplies                                   1        7,500       6,000         (1,500)
Other                                      0            0           0              0

Total Operating                            1        7,500       6,000         (1,500)

Capital                                    0            0             0              0

Total Department                           1        7,500       7,500                0

                         Workers' Compenation Budget
                                   2003                       2005         Dollar
Expense Line Item                 Actual       2004 Budget   Budget       Variance

Wages & Salaries                           0            0             0              0
Overtime                                   0            0             0              0
Other Salary & Benefit                     0            0             0              0

Total Wages & Salaries                     0            0             0              0

Services                           330,500        290,000     280,000        (10,000)
Supplies                                 0              0           0              0
Other                                    0              0           0              0

Total Operating                    330,500        290,000     280,000        (10,000)

Capital                                    0            0             0              0

Total Department                   330,500        290,000     280,000        (10,000)




                                     - 104 -
                         Zoning Board of Appeals Budget

                                     2003                       2005         Dollar
Expense Line Item                   Actual       2004 Budget   Budget       Variance

Wages & Salaries                       2,985          2,985       2,985                0
Overtime                                                  0           0                0
Other Salary & Benefit                       0            0           0                0


Total Wages & Salaries                 2,985          2,985       2,985                0

Services                                   0              0           0                0
Supplies                               4,100          4,100       4,100                0
Other                                      0              0           0                0

Total Operating                        4,100          4,100       4,100                0

Capital                                      0            0             0              0

Total Department                       7,085          7,085       7,085                0

                             Planning Board Budget

                                     2003                       2005         Dollar
Expense Line Item                   Actual       2004 Budget   Budget       Variance

Wages & Salaries                       1,000              0      30,000        30,000
Overtime                                                              0             0
Other Salary & Benefit                                                0             0

Total Wages & Salaries                 1,000              0      30,000        30,000

Services                                   0              0           0             0
Supplies                                 500            500       1,000           500
Other                                      0              0           0             0

Total Operating                          500            500       1,000           500

Capital                                      0            0             0              0

Total Department                       1,500            500      31,000        30,500




                                       - 105 -
                            Harbomaster Budget

                                  2003                       2005         Dollar
Expense Line Item                Actual       2004 Budget   Budget       Variance

Wages & Salaries                    6,764          6,764       6,832            68
Overtime                                0              0           0             0
Other Salary & Benefit                  0              0           0             0
                                                                   0
Total Wages & Salaries              6,764          6,764       6,832            68

Services                                0              0           0             0
Supplies                            4,000          2,500       3,000           500
Other                                   0              0           0             0

Total Operating                     4,000          2,500       3,000           500

Capital                                   0            0             0              0

Total Department                   10,764          9,264       9,832           568

                         Weights & Measures Budget

                                  2003                       2005         Dollar
Expense Line Item                Actual       2004 Budget   Budget       Variance

Wages & Salaries                    6,150          6,150       6,212            62
Overtime                                               0           0             0
Other Salary & Benefit                                 0           0             0


Total Wages & Salaries              6,150          6,150       6,212            62

Services                                0              0          0                 0
Supplies                              535            535        535                 0
Other                                   0              0          0                 0

Total Operating                       535            535        535                 0

Capital                                   0            0             0              0

Total Department                    6,685          6,685       6,747            62




                                    - 106 -
                                Constable Budget

                                     2003                       2005         Dollar
Expense Line Item                   Actual       2004 Budget   Budget       Variance

Wages & Salaries                         100            100        100                 0
Overtime                                   0              0          0                 0
Other Salary & Benefit                     0              0          0                 0


Total Wages & Salaries                   100            100        100                 0

Services                                     0            0             0              0
Supplies                                     0            0             0              0
Other                                        0            0             0              0

Total Operating                              0            0             0              0

Capital                                      0            0                            0

Total Department                         100            100        100                 0

                         Conservation Commission Budget

                                     2003                       2005         Dollar
Expense Line Item                   Actual       2004 Budget   Budget       Variance

Wages & Salaries                             0            0             0              0
Overtime                                     0            0             0              0
Other Salary & Benefit                       0            0             0              0


Total Wages & Salaries                       0            0             0              0

Services                                   0              0          0                 0
Supplies                                 800            800        800                 0
Other                                      0              0          0                 0

Total Operating                          800            800        800                 0

Capital (5800-5899)                          0            0             0              0

Total Department                         800            800        800                 0




                                       - 107 -
                               Unclassified Budget

                                     2003                       2005       Dollar
Expense Line Item                   Actual       2004 Budget   Budget     Variance

Town Reports                           3,244          3,500       3,500            0
Telephones                            35,000         25,000      27,500        2,500
Street Lighting                      165,000        140,000     140,000            0
Reserve Fund                         175,000        160,000     155,000       (5,000)
Settlements                            1,000              0           0            0
Audit                                 27,000         39,000      39,000            0
Historical Commission                  1,000          1,000       1,000            0
Medicare Tax                         206,000        225,000     235,000       10,000
HAWC                                   2,500              0           0            0
Stabilization Fund                   388,078              0           0            0
Clerical Pool                         33,709              0           0            0
Ambulance                            138,000        138,000      65,000      (73,000)
Transfer to Trust Funds
Transfer to Capital Projects

Total Unclassified Expenses         1,175,531       731,500     666,000      (65,500)




                                       - 108 -
Financial Plan Enterprise Fund
Overview
Water and Sewer Enterprise Fund Budget Summary

The Water and Sewer Enterprise Fund are Town funds separated from others and dedicated to tracking
and reporting all activities associated with the operation and maintenance of the water distribution and
wastewater collection systems in the Town. Enterprise funds by State law are required to be self-
sustaining, this requires that revenues from operations are sufficient to fund all direct and indirect
expenditures of the fund. For FY 05, the sources and uses of funds in the Water and Sewer Enterprise
Fund Budgets total $4.5 million. Water Enterprise Fund revenues derived strictly from user charges
total $2.75 million and Sewer Enterprise Fund revenues derived from user charges total $1.75 million.
The chart below shows the breakdown of revenues in the Enterprise Fund for FY 04.

                              FY 04 Enterprise Fund Revenue Sources

                                              $4,478,439




                                                                            User Fees
                                                                            100.00%




Uses of funds in the Water and Sewer Enterprise Fund Budgets are comprised of the following
categories: Direct Expenses, Wholesale Assessment from the MWRA and Lynn Sewer, Debt Service
payments on enterprise funded long term debt, and other Indirect Costs. For FY 05, the main use of
funds in the Enterprise Fund Budgets continues to be the MWRA and Lynn Sewer Assessments, which
combined makes up $2.4 million, or 54% of the total Enterprise Fund Budgets expense level. The chart
on the following page details the uses of funds in the FY 05 budget.




                                                 - 109 -
                                  FY 04 Enterprise Fund Expenses

                                             Total $4,478,439

                                                                   MWRA
                                                                   33.49%




                  Lynn Sewer
                    20.10%




                        Capital
                        2.79%
                                                                             Debt
                                    Direct                      Indirect    17.21%
                                   18.60%                        7.81%




As is shown in the chart above, the two major components of the Enterprise Fund Budgets are the
MWRA/Lynn Sewer Assessments and Direct Costs. Included in the Direct Costs are salaries and
expenses to operate the systems and pension costs associated with the employees who are charged to
the systems.

The Fiscal 2005 Enterprise Fund Budgets reflect an increase of 9.9% or $405,109 when compared to
Fiscal 2004. The vast majority of the increase is in debt service by 109% or $305,637 due to the
$2,000,000 bond that was approved for the system wide replacement of water meters and the
installation of radio frequency reading and billing system.




                                                  - 110 -
Water & Sewer
This division is responsible for the wastewater collection and water distribution systems of the Town.
Employees perform the operation and maintenance of the water and sewer infrastructure. The division
also provides direct services on meter reading, meter installations and meter replacements.


Previous Year Accomplishments:

   Started program of town wide upgrading of water meters and installation of radio read meter
    reading technology,

   Replaced and relined over ½ mile of water mains on Rock Ave., Burrill St., and Humphrey St.


FY05 GOALS

    Continue program of water meter upgrades,

   Continue to utilized the MWRA interest free loan program to fund the rehabilitation of water mains,
    and

   Utilize Massachusetts Department of Environmental Protection interest free loan program to fund
    improvements to the Town’s drainage system.



                           Enterprise Funds Personnel Listing
                                                              FY04      FY05
                                                             STAFF     STAFF VARIANCE
Department                Title                               POS.      POS.   +/(-)

Utilities                 Director                              .5         .5          0
                          Assistant Town Engineer               .5         .5          0
                          Field Coordinator                     .5         .5          0
                          Working Foreman                        2          2          0
                          MEOS                                   2          2          0
                          Laborer                                0          1          1
                          Clerical                               1          2          1
                                                               6.5        8.5          2
Total




                                                 - 111 -
Enterprise Funds Revenues and Expenditures
                         Water Enterprise Budget

                    Fiscal Year     Fiscal Year     Dollar Var.   % Var.
                       2004            2005
Revenues:
User Charges            2,381,694       2,745,329      363,635       15.3%


Expenditures:
Salaries                  260,401         289,334       28,933       11.1%
Supplies/Expenses         113,433         120,494        7,061         6.2%
Debt                      280,035         585,672      305,637        109%
Capital                    75,000          75,000            0           0%
MWRA Assessment         1,500,000       1,500,000            0           0%
Indirect Costs            152,825         174,829       22,004       14.4%
                        2,381,694       2,745,329      363,635       15.3%




                         Sewer Enterprise Budget

                      Fiscal Year    Fiscal Year    Dollar Var.     % Var.
                          2004           2005
Revenues:
User Charges            1,691,636       1,733,110       41,474        2.5%

Expenditures:
Salaries                  256,967         280,541        23,574        9.2%
Supplies/Expenses         143,323         142,589         (734)      (0.5%)
Debt                      188,521         185,151       (3,370)      (1.8%)
Capital                    50,000          50,000             0          0%
Lynn Sewer                900,000         900,000             0          0%
Indirect Costs            152,825         174,829        22,004       14.4%
                        1,691,636       1,733,110        41,474        2.5%




                                     - 112 -
APPENDICIES
Statistics

Demographic Profile of Swampscott

Age Distribution (2000 US Census)                           Race & Ethnicity (2000 US Census)

                  Persons     %                                                              Persons %
 Under 5            920      6.4                            White                           14,047 97.5
 5-14             1,963     13.6                            Black                              106    0.7
 15-44            5,234     36.3                            Am. Indian, Eskimo or Aleut           9   0.1
 45-64            3,746     26.0                            Asian or Pacific Islander           98    0.7
 65 & over        2,549     17.7                            Other                              152    1.0

Households by Type (2000 US Census)

                                    Households   %
 Married Couple Family                3,328      58.2
 Female Householder                     516       9.0
 Non-Family Household                 1,730      30.3


Housing Characteristics

Housing Units (2000 US Census)
                        Units        %

Total Units                 5,930

Total Occupied              5,719   100.0
owner occupied              4,377    76.5
renter occupied             1,347    23.5




                                                        - 113 -
                                            Swampscott at a Glance
                                                         (06/30/03)

County: Essex             Kind of Community: Economically Developed Suburb
Form of Government: Selectmen/Town Administrator
School Structure: Public K – 12 Regional School District: North Shore Vocational (Grades 9-12), Essex County

Senior Municipal Officials:         Marc Paster, Selectmen Chairman
                                    Mary DeChillo, School Committee Chairman
                                    Andrew Maylor, Town Administrator
                                    Dr. Brian Coughlin, Superintendent of Schools

State Legislative Delegation:       State Senator Thomas McGee
                                    State Representative Douglas Peterson


Federal Legislative Delegation:     Senator Edward Kennedy
                                    Senator John Kerry
                                    John Tierney

Population: 14,412 (2000)         School Enrollment: 2,388 (2002)                Registered Voters: 12,376 (2002)
Square Miles: 3.05                Population Per Square Mile: 4,725 (2000)       Public Road Miles: 50
Income Per Capita: $25,576 (1999) Median Family Income: $32,130 (1999)           EQV Per Capita: $99,358 (2002)

Tax                        FY04             FY04              FY04
Classification             Tax Rate         Tax Levy          Assessed Value             Revaluation
Residential                $12.12           $24,798,332       $2,046,066,984             Most Recent-FY02
Open Space                                                                               Next Scheduled-FY05
Commercial                 $22.37           $ 2,590,455       $ 115,800,412
Industrial                 $22.37           $ 263,675         $ 11,787,000
Personal Property          $22.37           $ 320,416         $ 14,323,490
Total                                        29,972,879        2,187,977,866

FY04 Revenue Sources                        % of Total        FY02 Proposition 2 1/2 Levy Capacity
Tax Levy             27,951,719             70.0              New Growth                 208,245
State Aid             3,538,102               8.9             Override
Local Receipts        7,443,103             18.7              Debt Exclusion           1,183,644
Other Available         968,000              2.4              Levy Limit              27,994,039
Total                39,900,924                               Excess Capacity             21,160
                                                              Ceiling                 54,699,447
                                                              Override Capacity       26,705,408

FY04 Cherry Sheet
State Aid                                   Reserves
Education Aid                 2,102,042     7/1/03 Free Cash                571,391
General Government            1,436,060     FY04 Overlay Reserve            482,341
                                            FY04 Stabilization Fund         807,327

Total Receipts                3,538,102     Bond Rating
Total Assessments               679,147     Moody’s                   Aa3

Net State Aid                 2,858,955




                                                          - 114 -
                    Laborforce, Employment and
                    Unemployment in Swampscott
                                                  Unemployment    Statewide
Year   Laborforce   Employment     Unemployment
                                                           Rate         Rate
1983       7,526         7,162              363           4.8%         6.9%
1984       7,790         7,522              268           3.4%         4.8%
1985       7,809         7,585              224           2.9%         3.9%
1986       7,896         7,686              210           2.7%         3.8%
1987       8,023         7,841              182           2.3%         3.2%
1988       7,881         7,697              184           2.3%         3.3%
1989       8,066         7,851              215           2.7%         4.0%
1990       7,280         6,971              309           4.2%         6.0%
1991       7,153         6,642              511           7.1%         9.1%
1992       7,137         6,632              505           7.1%         8.6%
1993       7,081         6,728              353           5.0%         6.9%
1994       7,177         6,835              342           4.8%         6.0%
1995       7,072         6,784              288           4.1%         5.4%
1996       7,116         6,888              228           3.2%         4.3%
1997       7,336         7,112              224           3.1%         4.0%
1998       7,425         7,245              180           2.4%         3.3%
1999       7,381         7,196              185           2.5%         3.2%
2000       7,297         7,151              146           2.0%         2.6%
2001       7,386         7,174              212           2.9%         3.7%




                                 - 115 -
                                         Public Services
                                       Annualized Statistics
                                              2003
Trash and Recycling
Number of miles of curbmile swept per week.                       10
Tons of trash picked up.                                       5,350
Tons of recycled material picked up.                           1,300
Tons of leaves and yard waste picked up.                          45
Tons of white goods picked up.                                    16

Roadways & Sidewalks
Miles of roadway.                                                 50
Miles of double yellow center line painted.                       10
Miles of double yellow center line in thermo plastic               0
Crosswalks painted.                                              160
Crosswalks installed in thermoplastic                              0
Tons of sand used.                                               315
Tons of salt used.                                             1,182
Traffic and parking signs replaced                               100
Number of street lights.                                       1,457
Number of traffic signals.                                        23
Number of fire boxes maintained.                                 120

Parks and Open Space
Acres of parkland.                                              41.6
Parks and playgrounds maintained.                                  9

Water, Sewer and Drain
Water and sewer accounts billed.                               5,501
Miles of water main.                                               61
Miles of sewer main.                                               50
Number of hydrants.                                              500
Number of catch basins.                                          600
Meters replaced/repaired                                         350
Feet of sanitary sewer cleaned.                                6,500
Feet of storm sewer cleaned.                                   3,000
Catch basins cleaned.                                            400
Main water breaks repaired.                                        14
Main water gate valves replaced/installed                           1
Millions of gallons of water purchased per day.                   1.9
Millions of gallons of sewer flow per day.                        2.5


                                                  - 116 -
Town Buildings Year Acquired/Constructed

Town Hall                                         1944
Public Library (Additions 1956, 1997)             1916
Senior Citizen Center                             1920
Police Station (Addition 1993)                    1937
Highway Garage                                    1965
Fish House                                        1896
Fire Station                                      1960
Town Hall Annex (Conversion 1991)                 1973
Cemetery Chapel                                   1923
Cemetery Garage (Addition 1963)                   1927
Phillips Park Field House                         1948
VFW                                               1972
26-28 New Ocean Street                            1965
Phillips Beach Station                            1904




                                        - 117 -
Fire Department
Annual Runs by Type Calendar 2003
                                              2003 % Total

Fire                                           104      5.3%
Explosion                                       11      .56%
Rescue EMS                                     949    48.37%
Hazardous Conditions                           173     8.82%
Service Call                                   264    13.46%
Good Intent Call                               132     6.73%
False Alarm & False Call                       319    16.26%
Severe Weather & Nat. Disaster                   6      .31%
Special Intent                                   4      .20%

Total                                         1,962




                                    - 118 -
Police Department
Department Statistics – January 2003 – December 2003

Alarm                                                  1,357
Ambulance Call                                           446
Building Check                                         4,744
Complaint                                                454
Larceny                                                  286
Motor Vehicle Stop                                     2,489
Parking Complaint                                        289
Service Call                                             105
Suspicious Act                                           503
Suspicious Motor Vehicle                                 159
Fire                                                      69
Indecent Assault and Battery                               1
Disturbance                                              145
Bomb Threat                                                2
Erratic Operator                                          89
Hazardous Condition                                      138
Missing Persons                                           28
Sudden Death                                               6
Suicide Attempt                                            4
Trespassing                                               10




                                     - 119 -
Breaking and Entering                                55
Rape                                                  5
Robbery                                               4
Stolen Motor Vehicle                                 23
Drug Offense                                          3
Vandalism                                           121
Domestic                                             96
B and E Motor Vehicle                                48
Accident under 1000                                 180
Accident over 1000                                  144
Accident with injury                                 48
Accident Hit and Run                                 92
Accidents Fatality                                    3
Accident Hit/Run w/injury                             4
Kidnapping                                            1
RU OK elderly check                                 101
Assist Elderly                                       77
Well Being Check                                    103
Animal complaints                                   366
Annoying Phone Call Complaints                       37
Assaults                                             28
Assault and Battery                                  20
Assist other Police Department                       88
Restraining Order violation                           9
Noisy group                                          73
Loud Party                                           79
Shoplifting                                          42
Threats                                              37
911 Hang Up                                         353
Child Abuse                                           3
Forgery                                               4
Hate Crimes                                           2
Larceny                                             155
Arrests                                             213
Total calls (not all listed)               15,219




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GLOSSARY OF TERMS
Abatement. A complete or partial cancellation of a tax levy imposed by a governmental unit.
Administered by the local board of assessors.

Accounting System. A system of financial record keeping which record, classify and report
information on the financial status and operation of an organization.

Activity. A specific line of work carried out by a department, division or cost center which constitute a
program.

Adopted Budget. The resulting budget that has been approved by the Town Meeting.

Allocation. The distribution of available monies, personnel, buildings, and equipment among various
Town departments, division or cost centers.

Annual Budget. An estimate of expenditures for specific purposes during the fiscal year (July 1-June
30) and the proposed means (estimated revenues) for financing those activities.

Appropriation. An authorization by the Town Meeting to make obligations and payments from the
treasury for a specific purpose.

Arbitrage. Investing funds borrowed at a lower interest cost in investments providing a higher rate of
return.

Assessed Valuation. A valuation set upon real or personal property by the local board of assessors as a
basis for levying taxes.

Audit. A study of the Town's accounting system to ensure that financial records are accurate and in
compliance with all legal requirements for handling of public funds, including state law and Town
charter.

Balanced Budget. A budget in which receipts are greater than (or equal to) expenditures. A
requirement for all Massachusetts cities and towns.

Bond Anticipation Notes. Notes issued in anticipation of later issuance of bonds, usually payable
from the proceeds of the sale of the bonds or renewal notes.

Budget (Operating). A plan of financial operation embodying an estimate of proposed expenditures
for a given time period and the proposed means of financing.

Budget Calendar. The schedule of key dates or milestones which a government follows in the
preparation and adoption of the budget.

Budget Message. A general discussion of the submitted budget presented in writing by the Town
Administrator as part of the budget document.
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Capital Budget. A plan of proposed outlays for acquiring long-term assets and the means of financing
those acquisitions during the current fiscal period.

Capital Program. A plan for capital expenditure to be incurred each year over a fixed period of years
to meet capital needs arising from the long term work program. It sets forth each project and specifies
the full resources estimated to be available to finance the projected expenditures.

Charges for Service. (Also called User Charges or Fees) The charges levied on the users of particular
goods or services provided by local government requiring individuals to pay for the private benefits
they receive. Such charges reduce the reliance on property tax funding.

Cherry Sheet. A form showing all state and county charges and reimbursements to the Town as
certified by the state director of accounts. Years ago this document was printed on cherry colored
paper, hence the name.

Cost Center. The lowest hierarchical level of allocating monies. Often referred to as a program, project
or operation.

Debt Limits. The general debt limit of a Town consists of normal debt limit, which is 2 ½ percent of
the valuation of taxable property and a double debt limit which is 5 % of that valuation. Cities and
towns may authorize debt up to the normal limit without state approval. It should be noted that there are
certain categories of debt which are exempt from these limits.

Debt Service. Payment of interest and repayment of principal to holders of a government's debt
instruments.

Deficit or Budget Deficit. The excess of budget expenditures over receipts. The Town charter requires
a balance budget.

Department. A principal, functional and administrative entity created by statute and the Town
Manager to carry out specified public services.

Encumbrance. Obligations in the form of purchase orders and contracts which are chargeable to an
appropriation is reserved. They cease to be encumbrances when paid or when an actual liability is set
up.

Enterprise Fund. A fund established to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent is that the full costs of providing the goods or
services be financed primarily through charges and fees thus removing the expenses from the tax rate.

Expenditures. The amount of money, cash or checks, actually paid or obligated for payment from the
treasury.

Financing Plan. The estimate of revenues and their sources that will pay for the service programs
outlined in the annual budget.

Fiscal Year. The twelve month financial period used by all Massachusetts municipalities which begins
                                                   - 122 -
July 1, and ends June 30, of the following calendar year. The year is represented by the date on which it
ends. Example: July 1, 2001 to June 30, 2002 would be FY 02.

Full and Fair Market Valuation. The requirement, by State Law, that all real and personal property
be assessed at 100% of market value for taxation purposes. "Proposition 2 ½" laws set the Town's tax
levy limit at 2 ½ % of the full market (assessed) value of all taxable property.

Fund. A set of interrelated accounts, which record assets and liabilities related to a specific purpose.
Also a sum of money available for specified purposes.

General Fund. The major municipality owned fund which is created with Town receipts and which is
charged with expenditures payable from such revenues.

Grant. A contribution of assets by one governmental unit or other organization to another. Typically,
these contributions are made to local governments from the state and federal government. Grants are
usually made for specific purposes.

Interfund Transactions. Payments from one administrative budget fund to another or from one trust
fund to another, which result in the recording of a receipt and an expenditure.

Intrafund Transactions. Financial transactions between activities within the same fund. An example
would be a budget transfer.

License and Permit Fees. The charges related to regulatory activities and privileges granted by
government in connection with regulations.

Line-item Budget. A format of budgeting which organizes costs by type of expenditure such as
supplies, equipment, maintenance or salaries.

Non-Tax Revenue. All revenue coming from non-tax sources including licenses and permits,
intergovernmental revenue, charges for service, fines and forfeits and various other miscellaneous
revenue.

Operating Budget. See budget (operating)

Overlay. The amount raised by the assessors in excess of appropriation and other charges for the
purpose of creating a fund to cover abatements and exemptions.

Performance Indicator. Variables measuring the degree of goal and objective fulfillment achieved by
programs.

Performance Standard. A statement of the conditions that will exist when a job is well done.

Planning. The management function of preparing a set of decisions for action in the future.



Policy. A definite course of action adopted after a review of information and directed at the realization
                                                  - 123 -
of goals.

Priority. A value that ranks goals and objectives in order of importance relative to one another.

Procedure. A method used in carrying out a policy or plan of action.

Program. Collections of work related activities initiated to accomplish a desired end.

Program Budget. A budget format which organizes expenditures and revenues around the type of
activity or service provided and specifies the extent or scope of service to be provided, stated whenever
possible in precise units of measure.

Proposition 2 ½. A law which became effective on December 4, 1980. The two main components of
the tax law relating to property taxes are: 1 ) the tax levy cannot exceed 2 ½ % of the full and fair cash
value, and 2) for cities and towns at or below the above limit, the tax levy cannot exceed the maximum
tax levy allowed for the prior by more than 2 ½ % (except in cases of property added to the tax rolls
and for valuation increases of at least 50% other than as part of a general revaluation).

Purchase Order. A document issued to authorize a vendor or vendors to deliver specified merchandise
or render a specified service for a stated estimated price. Outstanding purchase orders are called
encumbrances .

Rating Agencies. This term usually refers to Moody's Investors Service and Standard and Poor's
Corporation. These services are the two major agencies which issue credit ratings on municipal bonds.

Registered Bonds. Bonds registered on the books of the issuer as to ownership; the transfer of
ownership must also be recorded on the books of the issuer. Recent changes in federal tax laws
mandate that all municipal bonds be registered if their tax exempt status is to be retained.

Reserves. An account used to indicate that portion of fund equity which is legally restricted for a
specific purpose or not available for appropriation and subsequent spending.

Reserve for Contingencies. A budgetary reserve set aside for emergencies or unforeseen expenditures
not otherwise budgeted for.

Revenue. Additions to the Town's financial assets (such as taxes and grants) which do not in
themselves increase the Town's liabilities or cancel out a previous expenditure. Revenue may also be
created by canceling liabilities, provided there is no corresponding decrease in assets or increase in
other liabilities.

Revolving Fund. A fund established to finance a continuing cycle of operations in which receipts are
available for expenditure without further action by the Town Council.

Service Level. The extent or scope of the Town's service to be provided in a given budget year.
Whenever possible, service levels should be stated in precise units of measure.

Submitted Budget. The proposed budget that has been approved by the Town Administrator and
forwarded to the Board of Selectmen for their approval. The Selectmen must act upon the submitted
                                                  - 124 -
budget within prescribed guidelines and limitations according to statute and the Town charter.

Supplemental Appropriations. Appropriations made by the Finance Commitee after an initial
appropriation to cover expenditures beyond original estimates.

Tax Anticipation Notes. Notes issued in anticipation of taxes which are retired usually from taxes
collected.

Tax Rate. The amount of tax stated in terms of a unit of the tax base. Prior to a 1978 amendment to the
Massachusetts Constitution, a single tax rate applied to all of the taxable real and personal property in a
Town or town. The 1978 amendment allowed the legislature to create three classes of taxable property:
1 ) residential real property, 2) open space land, and 3) all other (commercial, industrial, and personal
property). Within limits, cities and towns are given the option of determining the share of the levy to be
borne by the different classes of property. The share borne by residential real property must be at least
65% of the full rate. The share of commercial, industrial, and personal property must not exceed 150%
of the full rate. Property may not be classified until the State Department of Revenue has certified that
all property has been assessed at its full value.

Unit Cost. The cost required to produce a specific product or unit of service. For example, the cost of
providing 100 cubic feet of water or the cost to sweep one mile of street.

Valuation (100%). Requirement that the assessed valuation must be the same as the market value for
all properties.

Warrant. An order drawn by a municipal officer directing the treasurer of the municipality to pay a
specified amount to the bearer, either after the current or some future date.




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