Budget documents released by the town administrator's office Tuesday evening show a decline in the town's surplus over the last three years.

The documents show the amount of surplus used by town officials to help balance the budget in the last three years. The numbers were revealed as town officials unveiled a budget proposal which includes using money from the surplus to offset declining non tax revenues. The proposed budget includes spending all but a small amount of the town's sale of assets account.

Going into 2010, the town reports having $3,414,853.63 available in surplus funds. This was broken down between $2,121,142.63 in surplus from unspent funds and additional revenue in the 2009 budget and $1,293,711 in the sale of assets account. The sale of assets account is from the revenue accumulated from the sale of town assets.

The proposed 2010 budget includes spending $1,840,000 from the general surplus account for the current budget. In addition, $1,293,000 will be spent from the sale of assets account. This will leave $711 in the sale of assets account going forward. Town Administrator Jim Gildea said the remaining $711 is being kept in the account to keep the bank account open for any future revenue from the sale of town assets.

The budget figures show that on Jan. 1, 2008, the town had $7,743,303.77 available in surplus funds. This was broken down between $3,894,896.77 in the surplus account and $3,848,407 in the sale of assets account. This number dropped to $6,265,162.82 for surplus funds available on Jan. 1, 2009. The 2009 number included $2,848,351.82 in the surplus account and $3,416,811 in the sale of assets account.

In developing the 2009 budget, town officials decided to use $2,123,100 in the sale of assets account to offset a decline in non tax revenue. This dropped the account total to the 2010 figure of $1,293,711.

Use of surplus funds in town budgets is a common practice, as the state does not allow towns to accumulate more than a certain percentage in surplus funds. Most surplus funds regenerate annually with unspent funds in the budget and other revenue that was not accounted for coming in over the year. The budget documents Gildea released on Tuesday contain a projection of $1,332,000 coming back to the town in surplus recovery for the 2010 fiscal year.

Gildea noted the $1.332 million number is a smaller estimate than is likely to come in, due to the fact that the state does not permit municipalities to estimate revenue in certain categories like delinquent tax collections and money unspent in the year. He also said that unspent funds come from areas like less snow falling and other areas where the town cannot project how much will be spent at the end of the year. The response came in answer to questions from Council members on whether the town was appropriating more per line item on purpose.

In a media availability following the Council meeting, Gildea noted that it will tougher for the town to regenerate the funds in the sale of assets account. He said the town does not have many large parcels of property to sell that would generate several million dollars. He said any parks could not be sold because under state Green Acres law, the town would have to find a way to make up the loss of open space if a park was sold.

The sale of assets account was an issue in last year's mayoral race with unsuccessful Democratic mayoral nominee Bill Brennan criticizing Mayor Andy Skibitsky for the spending out of the account for the budget. Skibitsky, who defeated Brennan in a landslide, defended the practice, noting it saved residents a larger tax increase.