By Jennifer L. Grybowski, Contributing Writer
Westborough – Town Manager Kristi Williams presented the most recent budget overview to the Board of Selectmen (BOS) and Advisory Finance Committee (AFC) at the selectmen’s meeting Sept. 22.
This process usually takes place in the spring, but due to the pandemic and budgetary uncertainty, the town had decided to pass 1/12th budgets until the fall town meetings.
Overall, Williams was positive about the town’s financial standing.
“We certainly have a high level of reserves compared to other communities and so I think continuing to use our reserves as our fiscal policies indicate, which are for one-time capital items, we are in a good position to handle things that might come forward,” Williams said. “If there is no additional federal funding, if FY22 is bleaker than FY21, I think you should feel we are in a very good financial position in terms of our ability to handle that.”
She reported that although town finance officials had projected a shortfall of $700,000, they actually ended up with revenue $800,000 higher than anticipated.
Included in that increased revenue was a $642,000 payment from Pulte Homes for an affordable housing variance; that payment will likely be transferred to the affordable housing trust. The remaining balance of $158,000 was the result of local receipts such as licenses and permits coming in higher than expected. Williams did note that hotel/motel and meals tax did come in about $350,000 lower than anticipated.
She said she asked departments to limit spending wherever possible, and department heads were able to turn back a combined $1.35 million to the budget; department heads also reviewed outstanding articles and closed out an additional $500,000 and turned it back.
This put free cash certification at $13.1 million.
Current town meeting warrants are proposing to spend $59,000 at the Special Town Meeting, and $1.2 million at the Fall Town Meeting out of free cash.
Williams also reported that previous state aid guidance and estimates showed a total of $1.4 million in anticipated reductions, including a 14 percent (or $172,000) reduction in unrestricted general government aid, a 10.5 percent (or $850,000) reduction in Chapter 70 funding and no funding (or a $375,000 reduction) related to the Student Opportunity Act. However, she said current guidance is that the state is committed to funding municipalities at FY20 levels.
Considering all of these factors and more, current calculations reveal the estimated tax increase for a single family house hold will be $293, down from the previously anticipated $457.
Despite this positive outlook, BOS Member Ian Johnson urged the town to exercise caution with spending.
“As we talk about reserves and free cash…and related to the conversation with the legislative delegation conversation about the rainy day fund, I’m very concerned,” he said. “There are still a lot of unknowns out there.”
AFC Member Michael Barretti wanted to know if department heads were searching for alternative funding sources other than free cash. Williams said departments are often executing regional purchasing agreements and there has been a trend toward leasing or renting instead of buying fleet.
AFC Member Andrew Bradley asked if there was anything that could be done to address the most at-risk people in the community, like low income people, seniors or veterans. Williams said officials could choose to appropriate free cash for some sort of program to help people, but can’t just direct free cash to people in need. Free cash can also be used to lower the tax rate. However, BOS Chair Shelby Marshall, who is part of the town’s COVID resident relief task force, pointed out that the task force has already worked with the Rotary to create a relief fund and has very successfully been working with the food pantry. She added that the concerns they are hearing at the task force are really around utilities and rental payments and not tax assistance, as those who are renting seem to be struggling the most and they don’t pay property tax.
AFC Member Paul Heugel said he was concerned about the schools trying to handle increase in spending due to COVID measures, and wondered if they’d be coming to the town looking for help. Williams said there are several sources of relief for schools and that the district has been working very closely with the finance department to pinpoint expenses that can be reimbursed through the CARES Act and FEMA. She did point out, however, that the CARES Act funding ends Dec. 31 and that is a concern for everyone.
