Kennett was able to add another $595,000 in 2022, bringing the total to $4,395,810 (see p.25 ), a reserve that many would consider healthy because it represents about 70% of Kennett’s annual operating expenses… at least for now. The amount needed is described relative to the amount of expenses in a given year. Most of the rest helped to top up Kennett’s operating reserve : As described elsewhere, Kennett keeps money in the bank to cover cash flow (see p.25 ) - it operating reserve. None of it was actually spent on construction - in fact almost $90,000 was spent on unplanned meetings. More than one-half of that ($754,000) was spent on CMT (see p.24 ). Most of the additional revenue in 2022 went to pay for capital projects, with CMT absorbing more than 50% : After Kennett drained most of its remaining capital reserve to cover other capital projects in 2022, it had to draw $1,356,596 from general operating revenues. In any case, supervisors have demonstrated little appetite so far for such a move.

But most of the other 20% of revenue comes from grants (which cannot be used to support these expenses) and other fees (which Kennett does not control and which generates relatively little income).Īnother critical question: are these increases permanent? Our preliminary review suggests that even a major re-organization of Police or Fire / EMS services appears unlikely to significantly decrease expenses. Accommodating $708k in increased Police/ Fire /EMS expenses would require 24% in cuts elsewhere.Ĭan sources of revenue other than taxes be increased? As we mentioned, about 80% of revenues come from taxes.

Are the increases warranted? As we will discuss elsewhere, the fact that Fire/EMS budgets are set through the regional commission complicates Kennett’s influence.Ĭan savings in day-to-day expenses be achieved elsewhere? This is challenging, because Police/ Fire /EMS services constitute 53% of Kennett’s day-to-day expenses.

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