First Selectman Fillmore McPherson presented the annual State of the Town message last week, emphasizing Madison's prudent fiscal policies, its triple A ratings, and its future capital planning.

McPherson said the town closed its books on the 2010-2011 fiscal year with a $1,119,000 surplus. The town operations side of the budget showed a $374,000 surplus, and the Board of Education budget a $254,000 surplus. In addition, there was unanticipated state funding of $225,000.

"We were sort of expecting this funding, but we were never sure," he said, so the town chose not to include the amount in its projected revenues as it compiled the budget.

The town also received $266,000 in revenue over budget projections. The result is the $1,119,000 surplus.

"The town has done what any prudent entity does, it underestimates some revenue and overestimates some expenditures," he said.

McPherson also highlighted some e-government initiatives and technology-"We are moving into the 21st century."

Residents have been able to pay their tax bills online for the past two or three years, as long as they had their paper tax bill with all its information, in front of them. Now, McPherson said, a taxpayer can go to a computer, "plug in his or her name and address, and all your tax information will come up in front of you," making it easier to pay that tax bill.

The Beach & Recreation Department now offers online registration for programs.

"Program listings have been online for some time, but now residents can register from home. We like to see you in Town Hall, but you don't need to come and stand in those long lines," the first selectman said.

The building department, he added, will soon be able to allow contractors and homeowners to apply for building permits online.

McPherson also provided residents with an "Irene Update," a summary of the costs of Tropical Storm Irene and the major projects to be undertaken in her aftermath. Out-of-pocket expenses totaled $220,000. The town has submitted claims totaling $245,000 to FEMA with the expectation that it will receive $184,000 in reimbursements.

Irene left the town with several major construction projects.

"The first priority is a permanent fix for Middle Beach Road," McPherson explained. The second priority is repair of the seawall at the Surf Club-"This is a safety issue."

The third priority was restoration of the sand dunes at the Surf Club.

"This is more than just dumping sand that will be washed away with the tide," McPherson said. "We need to restore these dunes to protect our inner areas."

The fourth priority is reconstruction of the jetties at East Wharf and West Wharf.

The first selectman also provided a summary of the town's five-year capital plan, cautioning, "Just because something is on this list now does not automatically mean it will happen. We are looking out five years here. We make the individual decisions based on what we see as needs at the time."

At present, the five-year plan totals $17.2 million and includes $1.4 million for fire apparatus, $720,000 for three new ambulances, $630,000 for public works equipment and town vehicles, $2 million for street and road reconstruction, and $11.1 million for facilities.

"How do we pay for all this? Not from bonding," McPherson said. "It is paid for from capital reserve accounts to which we make annual contributions…We avoid going to the bond markets-and by the way, this is why Madison has bond ratings at AAA."