SHREWSBURY – Town Manager Kevin Mizikar unveiled a proposed $173,205,925 budget for fiscal year 2024, in a presentation to the Select Board at its Feb. 14 meeting.
The bottom-line figure represents an increase of $6,536,849 or 3.77% over the fiscal 2023 budget.
According to Mizikar, the budget allows for the addition of eight full-time equivalent positions (FTEs) to be added in fiscal year 2024.
Two of the positions would be funded entirely through utility rates and will not impact the budget itself. Four FTEs would be added to the Shrewsbury Fire Department through a SAFER grant, one to the Shrewsbury Police Department and one to the Recreation Department.
“The financial condition of the town is certainly strong,” said Mizikar.
According to Mizikar, the spending plan would contribute nearly $2 million to Shrewsbury’s financial stabilization account, including $1.1 million to the override stabilization account.
Shrewsbury voters approved the Proposition 2 ½ override in 2021. According to Mizikar’s presentation, this means the total amount in this account would be nearly $7.2 million.
“Without these funds we would be in a much more dire fiscal condition, as we head into the next fiscal year. We no doubt would be looking at cuts unless additional revenue sources could be identified,” he said.
Mizikar said another $750,000 is being added to the general stabilization account, bringing that total to around $4 million.
Mizikar credited the Select Board for crafting the strategic plan, which he and his team used for priority guidelines in crafting the FY24 budget.
In terms of municipal expenditures, the budget presentation outlined $1,812,300 in new expenses. Of that total, roughly 70% is from contractual wage increases. However, Mizikar pointed out that inflation-related price hikes in items like fuel and other supplies also had an impact across all Town Hall departments.
For example, fuel and oil is being budgeted at $650,000 for fiscal year 2024, which marks an increase of $252,000 or 63.6% over the previous fiscal year.
The budget will now head to the Finance Committee for its evaluation, comments and recommendations. A public hearing on the fiscal year 2024 budget, featuring each of the town department heads, will be hosted by the Finance Committee on March 23 at 6 p.m.
