Tom
05-27-2007, 02:22 PM
Finance Committee Report
To the Citizens of Walpole:
To all but the most dedicated watchers of Channel 22, the lack of controversy over the FY 2008 budget must seem strange, especially given the tone of the debate before and after the override vote on March 31. The reality is that the Town is now projected to have not only the funds necessary to provide the same level of service to its school and non-school constituencies as they received in FY 2007 but also the wherewithal to earmark nearly $2.4 million for capital needs. How is this possible, you may ask.
As in every other year, the FY 2008 budget process began in the fall with properly conservative assumptions being made about available revenues and non-discretionary expenses. Under law, Governor Patrick had until February 28 to introduce his budget and this made forecasting State aid even more difficult than usual. As a result, when the Board of Selectmen voted to put an override on the ballot, the Town was facing the potential of a significant deficit in FY 2008 and beyond. Fortunately, however, due in part to another 10 percent hike in the amount of State aid allocated to Walpole (thank you Messrs. Timilty, Rogers, Ross and Kafka) and in part to less than feared increases in health insurance costs, the deficit projected for next year had all but disappeared by the time of the vote.
That's the good news. The bad news is that, in the case of the Schools, the service level the Town is striving to match has declined when compared to previous years, even though significantly more is being spent on education in terms of absolute dollars. For example, there is no money in the FY 2008 budget to restore any of the 18.6 positions that were cut in FY 2007 and, without another 10 percent boost in State aid in FY 2009, the Schools face the prospect of another round of cuts next spring.
This budget cycle the Finance Committee again organized itself into subcommittees, which then met with elected and appointed officials and with the various department heads to get a better handle on each line item in their respective budgets. On behalf of all our subcommittees, I want to thank these town officials and employees for their patience and for the time they devoted to answering our questions.
The biggest increase in the expense side of most budgets is for electricity. Walpole's cost per kilowatt hour will increase by 40 percent in 2008, as a result of fuel surcharges and the like. Efforts are being made to conserve but there is only so much the largest users can do in that regard and this will pose an even bigger challenge for the Town in FY 2009 when the full cost of the increase is felt. The budgets also reflect cost of living increases that were negotiated in the last round of collective bargaining. All of the union contracts are due to expire at the end of FY 2008, which further complicates the picture for 2009.
As noted above, Walpole is continuing its commitment to maintain and improve its infrastructure, equipment and physical plant. Articles 12 and 13 involve approximately $1.5 million for capital expenditures large and small, with a particular emphasis this year on school building maintenance and public safety projects. Per usual, the Capital Budget Committee gave us a detailed and thorough explanation of the need and relative priority of each of the items referred to in these Articles. The only one which generated substantial debate was the proposal to spend $35,783 to develop a Master Plan for the Town's ball fields with a minority of the Finance Committee preferring to spend that sum on fixing up one of our existing fields. Articles 15 and 16 deal with the capital needs of the Water and Sewer Departments, including $585,000 to complete the installation of radio meters in residences throughout the town.
Two Articles have been withdrawn from consideration and, as of the time this is being written, it appears that two others may follow suit. Article 19 would have called for a debt exclusion override for the design and construction of a new pubic safety building. The Board of Selectmen recently decided that further investigation on the issue of where to site such a facility was necessary and the Finance Committee reluctantly voted no action on this Article. Article 23 would have called for rezoning certain land near the intersection of Old Post Road and Route 1. This was the private petition sponsored by the owner of the affected parcels and he has requested that it be withdrawn. Because a no action vote might have the effect of preventing the owner from bringing a similar petition back to Town Meeting for a period of two years, the Finance Committee will not offer any motion on this Article. Articles 40 and 41 involve the development of new soccer fields by the Walpole Youth Soccer Association. The 2006 SATM voted to permit the Board of Selectmen to lease certain land off Mylod Street for this purpose but it was later determined that it would be desirable to have the Town swap part of its land for a parcel of comparable value owned by a private party in order to facilitate construction by the WYSA of the new fields. In addition to Town Meeting approval, that conveyance would require the permission of the former owner of the town owned parcel, which permission has yet to be forthcoming. Hence, the Finance Committee voted to defer its recommendation on Articles 40 and 41 until Town Meeting.
The proposal to establish a Redevelopment Authority in Walpole (Article 25) to deal with the South Street Superfund site sparked the most debate at the Finance Committee. A majority of the Committee was concerned about the broad powers given to such Authorities under state law and by the fact that its mandate could not by law be limited to dealing with just the clean up and reuse of the South Street property. A minority of the Committee was of the view that there were adequate protections built into the law to prevent a Redevelopment Authority in Walpole from overreaching and that it represented a creative way for Walpole to try to attract more of the type of business the Town wants on its tax rolls.
The Economic Development Commission is also seeking to streamline the permitting process for certain specific locations in Walpole, again in the hopes of attracting more business, by having the Town adopt Chapter 43D of Massachusetts General Laws with respect to the Siemens property off Coney Street (Art. 26) the Walpole Mall (Art. 27) and the South Street Superfund site (Art. 28). In essence, this would require the Town to act within 180 days on applications submitted for these parcels. The Finance Committee voted in favor of fast-tracking the Siemens and Mall properties, as they have a foreseeable use, but not for the South Street site.
Article 29 would promulgate a new Stormwater Management and Erosion Control By-law and is a petition of the Conservation Commission. The proposed By-law has been modified to reflect concerns expressed at the 2006 FATM. In particular, the new By-law makes it clear that a permit is not needed for normal maintenance of driveways, patios, gardens, etc.
Other Articles on the Warrant appear each year, including the Water and Sewer Enterprise Fund budgets (Articles 7 and 8), funding the snow and ice deficit (Art. 11), approval of the Revolving Funds for the Recreation Department and others (Art. 20), real estate tax exemptions for blind, elderly, disabled, etc. (Art. 21) and street acceptances (Articles 30-38). The Finance Committee will hold a Public Hearing on these and all the other Articles on the Warrant on Thursday, May 3, 2007, at 8:00 P.M. in Room 113 of the Walpole Town Hall.
Special thanks are extended once again to our very able Clerk, Clare Abril, for helping to guide the Committee in reviewing the Warrant and preparing for Town Meeting.
Thomas P. Jalkut, Chairman
for the Walpole Finance Committee
To the Citizens of Walpole:
To all but the most dedicated watchers of Channel 22, the lack of controversy over the FY 2008 budget must seem strange, especially given the tone of the debate before and after the override vote on March 31. The reality is that the Town is now projected to have not only the funds necessary to provide the same level of service to its school and non-school constituencies as they received in FY 2007 but also the wherewithal to earmark nearly $2.4 million for capital needs. How is this possible, you may ask.
As in every other year, the FY 2008 budget process began in the fall with properly conservative assumptions being made about available revenues and non-discretionary expenses. Under law, Governor Patrick had until February 28 to introduce his budget and this made forecasting State aid even more difficult than usual. As a result, when the Board of Selectmen voted to put an override on the ballot, the Town was facing the potential of a significant deficit in FY 2008 and beyond. Fortunately, however, due in part to another 10 percent hike in the amount of State aid allocated to Walpole (thank you Messrs. Timilty, Rogers, Ross and Kafka) and in part to less than feared increases in health insurance costs, the deficit projected for next year had all but disappeared by the time of the vote.
That's the good news. The bad news is that, in the case of the Schools, the service level the Town is striving to match has declined when compared to previous years, even though significantly more is being spent on education in terms of absolute dollars. For example, there is no money in the FY 2008 budget to restore any of the 18.6 positions that were cut in FY 2007 and, without another 10 percent boost in State aid in FY 2009, the Schools face the prospect of another round of cuts next spring.
This budget cycle the Finance Committee again organized itself into subcommittees, which then met with elected and appointed officials and with the various department heads to get a better handle on each line item in their respective budgets. On behalf of all our subcommittees, I want to thank these town officials and employees for their patience and for the time they devoted to answering our questions.
The biggest increase in the expense side of most budgets is for electricity. Walpole's cost per kilowatt hour will increase by 40 percent in 2008, as a result of fuel surcharges and the like. Efforts are being made to conserve but there is only so much the largest users can do in that regard and this will pose an even bigger challenge for the Town in FY 2009 when the full cost of the increase is felt. The budgets also reflect cost of living increases that were negotiated in the last round of collective bargaining. All of the union contracts are due to expire at the end of FY 2008, which further complicates the picture for 2009.
As noted above, Walpole is continuing its commitment to maintain and improve its infrastructure, equipment and physical plant. Articles 12 and 13 involve approximately $1.5 million for capital expenditures large and small, with a particular emphasis this year on school building maintenance and public safety projects. Per usual, the Capital Budget Committee gave us a detailed and thorough explanation of the need and relative priority of each of the items referred to in these Articles. The only one which generated substantial debate was the proposal to spend $35,783 to develop a Master Plan for the Town's ball fields with a minority of the Finance Committee preferring to spend that sum on fixing up one of our existing fields. Articles 15 and 16 deal with the capital needs of the Water and Sewer Departments, including $585,000 to complete the installation of radio meters in residences throughout the town.
Two Articles have been withdrawn from consideration and, as of the time this is being written, it appears that two others may follow suit. Article 19 would have called for a debt exclusion override for the design and construction of a new pubic safety building. The Board of Selectmen recently decided that further investigation on the issue of where to site such a facility was necessary and the Finance Committee reluctantly voted no action on this Article. Article 23 would have called for rezoning certain land near the intersection of Old Post Road and Route 1. This was the private petition sponsored by the owner of the affected parcels and he has requested that it be withdrawn. Because a no action vote might have the effect of preventing the owner from bringing a similar petition back to Town Meeting for a period of two years, the Finance Committee will not offer any motion on this Article. Articles 40 and 41 involve the development of new soccer fields by the Walpole Youth Soccer Association. The 2006 SATM voted to permit the Board of Selectmen to lease certain land off Mylod Street for this purpose but it was later determined that it would be desirable to have the Town swap part of its land for a parcel of comparable value owned by a private party in order to facilitate construction by the WYSA of the new fields. In addition to Town Meeting approval, that conveyance would require the permission of the former owner of the town owned parcel, which permission has yet to be forthcoming. Hence, the Finance Committee voted to defer its recommendation on Articles 40 and 41 until Town Meeting.
The proposal to establish a Redevelopment Authority in Walpole (Article 25) to deal with the South Street Superfund site sparked the most debate at the Finance Committee. A majority of the Committee was concerned about the broad powers given to such Authorities under state law and by the fact that its mandate could not by law be limited to dealing with just the clean up and reuse of the South Street property. A minority of the Committee was of the view that there were adequate protections built into the law to prevent a Redevelopment Authority in Walpole from overreaching and that it represented a creative way for Walpole to try to attract more of the type of business the Town wants on its tax rolls.
The Economic Development Commission is also seeking to streamline the permitting process for certain specific locations in Walpole, again in the hopes of attracting more business, by having the Town adopt Chapter 43D of Massachusetts General Laws with respect to the Siemens property off Coney Street (Art. 26) the Walpole Mall (Art. 27) and the South Street Superfund site (Art. 28). In essence, this would require the Town to act within 180 days on applications submitted for these parcels. The Finance Committee voted in favor of fast-tracking the Siemens and Mall properties, as they have a foreseeable use, but not for the South Street site.
Article 29 would promulgate a new Stormwater Management and Erosion Control By-law and is a petition of the Conservation Commission. The proposed By-law has been modified to reflect concerns expressed at the 2006 FATM. In particular, the new By-law makes it clear that a permit is not needed for normal maintenance of driveways, patios, gardens, etc.
Other Articles on the Warrant appear each year, including the Water and Sewer Enterprise Fund budgets (Articles 7 and 8), funding the snow and ice deficit (Art. 11), approval of the Revolving Funds for the Recreation Department and others (Art. 20), real estate tax exemptions for blind, elderly, disabled, etc. (Art. 21) and street acceptances (Articles 30-38). The Finance Committee will hold a Public Hearing on these and all the other Articles on the Warrant on Thursday, May 3, 2007, at 8:00 P.M. in Room 113 of the Walpole Town Hall.
Special thanks are extended once again to our very able Clerk, Clare Abril, for helping to guide the Committee in reviewing the Warrant and preparing for Town Meeting.
Thomas P. Jalkut, Chairman
for the Walpole Finance Committee