The Finance Committee Thursday approved transferring about $1.1 million from its reserve fund to offset a variety of deficits before the close of fiscal year 2022.
The total represented less than half of the fiscal 2022 reserve fund of about $2.3 million, which was much larger than usual because of uncertainty about the continuing impact of Covid-19. The balance will revert to free cash.
Indeed, in answer to a question from member Steve Steele, Finance Director David Castellarin reported in general terms that the town’s finances heading into fiscal 2023 are in excellent shape.
Castellarin said building permits are generating higher than expected revenues, while vacancies in some town departments mean significant savings. “Between excess revenues and turnback in expenses, we are in great shape.”
The reserve fund by law covers only extraordinary and unforeseen unbudgeted expenses. The largest requests on the Finance Committee agenda were from the schools. The deficit for Covid-related supplemental instruction was $230,811, and for out-of-district tuition $344,206, totaling $575,017.
Julie Kirrane, the School Department’s director of finance, explaining the deficit in additional instruction, said that “we proposed this budget less than one year into the pandemic.” Thanks to cost management and full use of $420,000 in eligible federal emergency aid, “the reserve fund request is substantially smaller than originally conceived.”
The increase in out-of-district costs for students with learning needs was first identified in December 2019, Kirrane said. Castellarin noted that the original deficit projection was $450,000.
The last three annual town meetings have approved separate reserve accounts for this expense; some Finance Committee members have indicated they prefer to see just the single reserve account.
One account remains to be closed: legal services. Castellarin explained that there are several reasons for the $140,000 deficit, such as title searches for the proposed Minuteman Bikeway extension, litigation connected to acquisition of the new fire station site, and extended negotiations with MITRE Corp. for a renewed payment in lieu of taxes.
Steele asked if money from the American Rescue Plan Act could be used to cover part of the deficit. He noted that ARPA funds have been allocated to help buy the fire station site.
Castellarin noted that questions about ARPA spending are addressed to the U.S. Treasury, and it could take several weeks or longer to get a response. Accounts for fiscal year 2022 must be closed by July 14, he said, or the deficits will be paid from free cash and then added to the town’s 2023 tax-rate calculation in the fall.
Steele and colleague Erica Liu abstained from the vote to approve the fund transfer, and since only five committee members were present, the vote fell far short of the required minimum of five affirmative votes. There are nine committee slots, but two of them have been vacant this month after retirements.
So with the legal services budget still undecided, Committee Chair Steve Carluccio said Saturday, “The hope is to meet again the second week of July.”
Select Board Chair Emily Mitchell noted at the meeting that “we have level-funded legal services for several years,” while state requirements in some areas have become more complex.
Several reserve-fund requests were unanimously approved:
- Snow and ice removal materials, not to exceed $200,000. Castellarin explained that a shortage of private plow drivers meant the town had to increase its hourly rate, and the town had to pay $25,000 more than budgeted for salt, he said
“There were 19 total snow events beginning on Dec. 8, 2021, and ending on March 12, 2022. In total, this winter season brought over 51.9 inches of total snow accumulation,” Castellarin reported to the committee. “Winter events ranged from light snow to freezing rain, to two-day storm response.”
- Energy costs for the Department of Public Works, up to $100,000. Besides $54,000 in higher cost of gasoline, Castellarin said, the electricity budget for the sewer pumping stations was $30,000 over budget because of infiltration of groundwater during the wet winter and spring. Carluccio said he would like details on which utilities are locked into long-term fixed rates.
“I notice there are a lot more charging stations around town. Do we have plans to make them pay for charges?” Steele said. “Going forward, I want a better understanding about charging electric vehicles.”
- Recreation Department salaries—$45,763, covering buyback of sick leave and vacation leave.
- Minuteman Regional Technical High School—$24,280 for a student admitted from the waitlist. Bedford residents attend Minuteman if a student’s desired program is not available at Shawsheen Valley Technical High School.
- Assessing Department—$16,000 to cover a consulting line that was not sufficiently budgeted.
- Snow removal overtime—$11,638.Mike Rosenberg can be reached at [email protected], or 781-983-1763
Loading ...
