Crowd Turns Out for Town Budget Info Night; League-sponsored event

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The Westford League of Women Voters sponsored an informative presentation on Nov. 8 detailing how the town’s finances work and how a budget is created.

“Show Me the Money,” was the brainchild of Selectman Elizabeth Almeida who was newly-elected to her seat in May and delved into learning about revenues and expenditures. Almeida teamed up with Finance Director Dan O’Donnell.

Almeida said it occurred to her that residents would be interested in hearing what she learned.

“The origins for this program were back in my campaign for selectman,” she said. “I went to Dan and I said ‘could you help me understand the town money?’ …We talked for probably an hour-and-a-half and I said ‘I wish everyone in town, all taxpayers, could hear this conversation to better understand the budget.’

From there, a presentation was born. Almeida and O’Donnell split it into four segments: Where does the money come from? Where does the money go? The budgeting process: who decides? and How are we planning for the future.

1. Where the money comes from
   1. Property taxes
   2. State aid
   3. Chapter 70 funds for schools (The state law establishes minimum spending limits needed for the town’s schools.)
   4. Local revenues such as excise, hotel, and meals taxes, late penalties, licenses and permits, fines, forfeits and fees.
   5. Enterprise funds. These include ambulance, Recreation Department, and Water Department.
   6. Community Preservation Committee funds – Taxpayers are assessed a 3 percent annual surcharge. Collected funds with state matching are used for  the creation of affordable housing, recreational needs, or the preservation of  open space or historic property.
   7. Revolving funds – Incoming and outgoing money funds a specific need.
   8. Free cash – “A revenue source certified by the state that typically includes actual receipts in excess of revenue and unspent amounts in departmental budget line items for the year just ended. It is recommended that free cash be used for one-time expenditures” — Dan O’Donnell
   9. Grants
2. Where the money goes
   1. Health insurance
   2. Unfunded liabilities such as benefits for retired employee
   3. Special education mandates
   4. Collective bargaining agreements
   5. Infrastructure and facility repairs and maintenance
   6. Capital expenditures
3. The Budgeting Process: The Decision-makers
   1. Budget process begins in the fall and a recommendation is made in February prior to the March annual Town Meeting in March.
   2. Finance Committee makes recommendations to selectmen.
   3. Selectmen make recommendations to voters.
   4. Voters decide at annual Town Meeting.
4. Planning for the Future
   1. Forecasting
   2. Financial policies
   3. Bond Rating – the town has a AAA rating, the highest awarded by Standard & Poor’s, demonstrates excellent financial management.
   4. Community Preservation Funds
   5. Overrides and debt exclusions.
   6. Maintain 5 to 10 percent of total operating budget in reserves.