Town Manager Jodi Ross presented a “no frills” recommended budget to selectmen Nov. 15.
The $114.6 million operating budget represents a 1.57 percent increase over fiscal 2017 with free cash filling a coverage gap for the Middlesex employee retirement benefits obligation.
“This is a no frills budget,” Ross said. “Anybody looking for a little bit of excitement. There’s not a lot of excitement. There’s no additional personnel, no additional services.”
Budget Highlights
- New growth is estimated to be $850,000 for the coming fiscal year which begins July 1 down slightly from previous years when developments like Cornerstone Square and Princeton Properties came on line.
- Ross is projecting a 1.2 percent increase in state aid.
Cash Reserves
The town has more than $4 million in free cash and $4.637 million in the stabilization fund for a total of $8.732 million or 8.7 percent of the operating budget.
Other Post Employment Benefits
The town is strapped by a $56 million liability for providing health and life insurance benefits to retired town employees. For fiscal 2017, town officials set aside $852,278 toward the unfunded liability known as Other Post Employment Benefits, according to Finance Director Dan O’Donnell.
For fiscal 2018, Ross said the town is setting aside $1.110 million, but using $258K of free cash to meet the obligation, bringing the total that has been set aside over the past few years to $4.2 million. Ross said the money has been invested.
But the accumulated costs from prior years have added up.
“We’re trying to fund this $56 million liability,” said Ross. “…I’m adding a supplement of $257,000 from free cash because I would have had to have lay-offs to fund that entire amount. So we still are funding the normal costs but with a little supplement from free cash this year.”
OPEB does not fund workers’ pension plans. For workers hired after Jan. 1, 2012, all OPEB normal costs are being covered.
Free cash is unrestricted funding that comes from higher than projected revenues, or from expenses that are lower than appropriated, according to O’Donnell.
School Department Budget
The School Department recommended budget of $55.997 million represents almost 49 percent of the total operating budget. Other town departments compose about 20 percent and debt service, about six percent.
Superintendent Everett “Bill” Olsen presented his requested budget to the School Committee on Nov. 14. Committee members have taken no action yet.
Capital Projects
The capital budget is recommended to be $14.5 million. Included in that is a $7 million proposed project to upgrade the Roudenbush Community Center building with Community Preservation Funds. The 2000 Community Preservation Act assesses a property tax surcharge to fund historic and land preservation and the creation of affordable housing. The application before the Community Preservation Committee for the Roudenbush improvement is pending, Ross said.
A fiscal 2015 assessment determined that there are $21 million in needed repairs among the town’s facilities. Town Meeting approved $400,000 for fiscal 2016, of which $233,500 is remaining as of this month, Ross said.
“…at some point we’ll have to go back to the town for another supplement,” she said.
Large Facilities
Other large facilities projects include 12 North Main St., a contaminated mill structure, known as the anodizer building, suffering from a collapsed roof and structural issues.
Bids for a combined dispatch center are pending, Ross noted. Construction has been delayed slightly but is fully funded through a non-excluded bond in the amount of $1.029 million that was passed by voters at the March 28, 2015 Annual Town Meeting.
Under construction is the Boston Road fire station at Blake’s Hill Road.
“It is under budget…we do have cost estimates and it is within the appropriation,” said Ross. “That is scheduled to open in the spring of (20)18.”
Collective Bargaining
Seven collective bargaining contracts are settled through fiscal 2018 on the town side. Town officials are bargaining with three other unions, said Ross. Several school contracts – excluding the teachers agreement – have been settled through fiscal 2019.
The Board of Selectmen and Finance Committee will begin joint budget meetings on Dec. 1.
Follow Joyce Pellino Crane on Twitter @joypellinocrane.
