|
Page 1 Page 2 Page 3 Community Seniors Police Letters Weather HPTA Source |
|||||
|
|||||
|
Selectmen To Add Prop 2 ½% Difference From Previous Two Years “If it takes an additional $300 average [per household] tax increase in 2012 to provide schools with the money they need to protect the service, I am willing to ask for it.” ~ RJ Dourney, Chairman Board of Selectmen (File photo)
November 10, 2010 — The question is not whether next year’s taxes will go up, but rather how much will they go up. Last night the selectmen formally kicked off the budget process by establishing guidelines for department heads to use in formulating the budget for FY 12. The Board directed departments to fund their budgets at FY11 level dollars and identify mission critical items that would not fit within those dollars; the Board included in their vote an upper limit in their willingness to tax the residents, that limit is 2.5% plus the additional $900 thousand dollars in excess levy capacity spread out evenly over the next two years.
In the last two years Hopkinton’s tax payers have seen tax increases that fell below the allowable 2 ½% maximum allowed by law without an override; that means that Hopkinton currently has about $900,000 available in excess tax capacity that by law the Selectmen can tap into for future budgets. This approach means that the average tax bill in Hopkinton may increase up to 3.26% next year without an override vote. The selectmen voted unanimously to support this approach.
Budget forecasts indicate that increasing taxes this year 2 ½% plus half of the allowable levy surplus still leaves a gap between available funds and expenses of about $215,762. This gap may be even wider with new information still to be included from the School Department’s budget; School Superintendent Jack Phelan outlined an additional million dollar gap in the budget. There is approximately $700K that will not be available to the School from other funding sources as had been the case last year; further, he reminded the Board that teachers deferred step increases last year with the understanding that those increases would be back next year.
Selectman Chairman RJ Dourney began discussion on the budget message saying, “There has been a significant effort over the last two years to ensure your tax dollars are spent efficiently. We were very aware of the economic climate that exists.” Speaking to the need to protect services, he continued, “We’ve come to appreciate a certain level of services. They are best in class. For two years we’ve done our best to keep taxes low and protect services.” Later in the meeting advocating for the approach to tax up to the maximum 2 ½% plus the additional allowable levy limit over 2 years, he asserted, “If it takes an additional $300 average tax increase in 2012 to provide schools with the money they need to protect the service, I am willing to ask for it.”
Town Manager, Norman Khumalo, presented his overview. Asserting that everyone involved remains committed to investigating opportunities to pursue efficiencies, “Over the last three budget cycles, there has been a gallant effort to contain costs, but now some programs are at risk.” Looking ahead, Khumalo favors the approach voted by the Selectmen to meet the immediate budget pressures and build into the process some “financial resilience”. “I am committed to paying attention to the long term financial health of this town.” According to Khumalo, the budget message needs to take into account the Town’s commitment to protecting our investment in services and contemplate the community’s willingness to pay to support those services. MUCH MORE: For their part, the Appropriation Committee in a letter dated November 6, 2010, recommended “that the 2012 budget spending be held at the 2011 levels unless increases are absolutely needed to address mission critical needs. If we are to roll back some of the unused taxation (allowable levy) from the past two years, it should be done over a five year period to make sure that we have a clear picture of any state aid reductions. In the near term, they should not be included in setting the budget but be available for surprises after the budget has been set. We all realize that clarity increases and things change as we go through the budget process, but at this time we believe conservatism must reign.”
Speaking for the Appropriation Committee, Ron Eldridge reinforced the point, “the bottom line should be not to go higher than 2 ½% and not utilize any of the excess capacity. We feel nothing has really changed in the economy… This is a marathon not a sprint, and we need to manage the expectations of the taxpayer…” He continued, “At this stage conservatism should reign, level funding is where we should be.”
Before the meeting, Pastor Mike Laurence from the First Congregational Church of Hopkinton spoke to the Selectmen attempting to put a real face on the hardships folks in town face. He spoke of an individual that confided in him that this week “I had to choose between a gallon of milk and a gallon of gas.” There is a lot of fear and anxiety out there: people are worried about losing their jobs and possibly losing their homes. “I don’t envy you your job here.” Selectman Todd Cestari advocated early for holding strictly to a level funded budget. “This is a problem that is not easily fixed…we need to begin addressing the larger problems and fix the structure.”
Dourney pressed for “more clarity”. Allowing it was appropriate to take the full tax levy [option] off the table for this year, he asserted “It is also inappropriate that we can take nothing and protect services.”
Cestari responded, “What’s not clear? Use the same numbers as last year.” He continued, “If there is some available dollars, there has to be a decision made whether it’s right to ask our taxpayers to spend. We don’t want a scenario that there is quote unquote money left over that then we need to find a way to spend.”
Selectman John Mosher also advocated early to avoid raising taxes. “I am not willing to raise taxes to solve today’s problem and ignore the out years’ problem”
School Committee Chairwoman Rebecca Robak also advocated for more “clarity”. Speaking for the School Department, she stated, “If we level fund, we will reduce services.”
Ultimately, all selectmen agreed to direct departments to fund their budgets at FY11 level dollars and identify mission critical item; however, at the same time, set the upper limit in their willingness to tax the residents this year at 2 ½% plus ½ of the allowable levy left from the past two years.
Writer’s note: This budget approach was the result of a lengthy and detailed discussion, which followed extensive data gathering by the Town’s financial team. During discussions, more than one Selectmen, the Town Manager and the Appropriation Committee Chair encouraged voters and stakeholders to weigh in on the process as it goes forward. The Appropriation Committee meets tonight at 7PM in Room 211 at Town Hall. Voters can call or email the Town Manager and Selectmen and/or attend meetings; consider taking the opportunity to impact the process as the budget is developed. |
|||||
|
|
|||||
|
"The News Starts Here!" 24 Main Street, Hopkinton, MA 01748 508.435.5534 |
|||||
|
|
|||||
|
Last Update for this page: 03/15/2013 01:39:08 PM All content on this site and linked pages within this domain and affiliate domains are ©2010 Hopkinton News and HopNews.com and may not reproduced in any form without written permission. Learn more. |
|||||
|
|
"The News Starts Here!"
by
Muriel Kramer
