By K.B. Sherman, Community Reporter
Shrewsbury – The main order of business at the Jan. 14 meeting of the Shrewsbury Board of Selectmen was a continued review of the town's financial plan for fiscal year (FY) 2015. Town Manager Daniel Morgado noted that the town has a rating of Aa2 from Moody's Investors Services, which translates to “Prime-1,” meaning high quality and very low credit risk.
Morgado noted that Shrewsbury continues to have a “fragile economic stability” since the town is meeting its financial obligations with the possibility of a slight improvement in FY2015, which begins in October 2014. On the plus side are a sizable, affluent tax base and adequate financial reserves. On the minus side are the town's ever-growing expenses for pensions and other post-employment benefits (OPEB)/health insurance and the continuing practice of using cash reserves to supplement the annual budget.
Specific challenges include Chapter 90 (roadway maintenance and improvement) costs, plus other building and infrastructure expenses. It is anticipated that a total of $2,150,000 will be required for not only infrastructure expense in FY15, but for replacement of large vehicles and other mechanical equipment.
The selectmen said they see no help forthcoming from the state or federal government. Similarly, there is no foreseeable help from expanded commercial and industrial town development nor from somehow lowering operating costs.
Morgado pointed out that while Shrewsbury's population increased by 47 percent between 1998 and 2010, the number of town employees has decreased by 10 percent through better personnel management and greater use of contractors. Although police and fire employees have increased by 10 people, other town departments have decreased by a total of 24 people. Nonetheless, pension and OPEB expenses continue to increase.
The town's tax base was also discussed by the officials. There is almost no land left for new commercial and industrial development and converting existing zoned land to new businesses is hindered by a number of concerns, including availability of water and sewer resources.
Secondly, Shrewsbury has a low tax rate, at $12.17. By contrast, Northborough is $16.59 and Westborough is $19.29.
Adding to budgeting problems is the town's school population, which is expected to exceed 6,000 students until after 2022. With the town at its levy limit, few options are seen in budgeting for schools.