Revenues

Funding for services provided to Lexington residents comes from a variety of sources. The Town strives to maintain a diversified and stable revenue system that will provide shelter from short-run fluctuations in any one revenue source and ensure the ability to provide ongoing services. Total budgeted revenue, regardless of the source, is equal to $142,411,271, a 6.1% increase over FY 2006. Those sources are:

Reversing a trend from previous years, state aid is level funded, and base local receipts will not decrease as precipitously as in previous years. Available funds are higher this year, due to the budgeting of programs previously not included within the operating budget and one-time receipts. Property taxes will go up in FY 2007, due to the allowable increase under Proposition 2 ½ , and new residential growth (where applicable). Unlike previous years, however, the increase in property taxes will be far less due to a decrease in the annual exempt debt service payment and no property tax override. Enterprise revenues are forecast to increase slightly as money needs to be raised to cover higher assessments from the Massachusetts Water Resources Authority (MWRA) in FY 2007.