By Melanie Petrucci, Senior Community Reporter
Shrewsbury – Town Manager Kevin Mizikar shared his five-year financial forecast with the Board of Selectmen at the board’s Dec. 8 meeting. The forecast focused primarily on this year and preparing for fiscal year (FY) 2022.
He remarked that the town doesn’t have the official FY2021 state budget yet. Revenue assumptions are based on performance from March through October 2020.
He cited that in FY2021 there was a decline of 14.5 percent in local receipts collected ($2,071,065) in that time from FY2020 ($2,422,869) which amounts to a decrease of $351,804.
“State aid year over year we are projecting a decrease at this point in time. Hopefully, there is more information known when the governor releases his budget on time and that we have good wind at our back with the vaccine that is being implemented in the coming weeks,” he said.
Mizikar is projecting very modest increases in revenue from taxation, vehicle excise tax revenue is uncertain, and he expects to utilize Free Cash and the Stabilization Fund.
His expense assumptions are based on FY2021 municipal and school reductions, level department forecast and no COVID-19 related expenses.
The drivers of the expense forecast are funding pension and the new Beal Elementary School coming on board.
“We have a long way to go in the budget process; again, state budget for FY2021 hasn’t even passed,” he reflected.
The next steps will be the production of a revenue manual and for departments to give him their figures for FY2022.