Selectmen anticipate shortfall of at least $1.4 million
By Ken Powers Community Reporter

Southborough - The selectmen informed town department heads and other employees in attendance at the Jan. 22 Board of Selectmen meeting that they may have to cut budgets and reduce employee working hours as a result of the $1.4 million shortfall the town is expected to face in fiscal year (FY) 2009.

Board of Selectmen Chair Bonnie Phaneuf explained that the $1.4 million figure is actually only about half of the total projected shortfall the town is facing - $2.8 million - but that total was reduced by an infusion of $1.4 million from the town's free cash account.

Phaneuf pointed out that using $1.4 million from free cash would leave the town's reserve dangerously low, at $847,000.

Although they didn't like it, all the selectmen agreed that the only possible ways to overcome the shortfall were either by procuring the money through a Proposition 2-1/2 override or by trimming and tightening operating budgets.

"I don't see any other avenues available to us," Phaneuf said. "But if we plan on suggesting the idea of an override to the town, we are going to have to do a very good job convincing the residents, the voters, why it's necessary. If not that, then the only other alternative I see is cutting the hours of all nonessential town personnel."

Selectman Sal Giorlandino bristled at the idea of a Proposition 2-1/2 override.

"Absolutely not," Giorlandino said when the idea of an override was suggested. "I think we need to tighten the belts as much as is necessary. It's my feeling that that's our only recourse."

Phaneuf's budget proposal would be fueled by the creation of a tax rate of $14.73 per $1,000 of value, an increase from the FY 2008 tax rate of $12.54.

Town Treasurer Brian Ballentine said that the sharp increase in the tax rate was the result of a decision by the town in 2007 to apply more than $1.7 million to long-term debt that had been accrued by the town.

Ballentine said the increase because of the long-term debt repayment alone will be at least 75 cents.

Phaneuf suggest starting the FY 2009 budget process by level funding, based on FY 2008 dollar amounts.

"I have no problem working with the same dollar figures we have in the budget for this year," Phaneuf said. "I can only envision the municipal budgets increasing as a result of contractual obligations."

Phaneuf suggested reductions of capital items or making them subject to debt exclusions.

Selectman Bill Boland expressed concern that budget did not include enough for capital items.

"The board is taking an initial pass at the budget," Phaneuf said. "We have not approved it."

Phaneuf said she expects that the final approval of the budget by the selectmen would come in February.