The articles, the money, the Selectmen’s recommendations
Published on October 24th, 2001
STONEHAM, MA - Selectmen will recommend that townspeople spend $1,529,000 in free cash, transfer a few thousand from available funds and borrow $225,000 to meet the needs of Stoneham at the Oct. 29 Town Meeting.
The $225,000 is for a new roof for the garage and office building of the Department of Public Works. The roof is 25 years old and in disrepair.
“It’s failing, and we patch it, but we shouldn’t wait for a total failure,” DPW Director Robert Grover told Selectmen at their Oct. 24 meeting.
Selectmen agreed and voted unanimously to recommend favorable action on Article 32, borrowing the money to fix the roof. The Finance Board had previously voted not to recommend the article, but representatives in attendance at the Oct. 24 meeting deferred to Grover’s assessment of imminent danger.
The transfers from available funds include $1,425 from the “unclassified” account to pay for prior year medical bills of public safety employees, Article 22, and a few thousand from a tree planting account for shade trees, Article 23. Since Article 23 was written to request an appropriation, Selectmen recommended voting down the article with the intent of using the existing tree account funds.
Spending cash
The rest of the spending comes from the free cash amount certified by the state this week at $1,628,000. Selectmen recommended spending all but $99,000 in the following way:
Selectmen recommended spending $60,000 for Article 8, the second installment of three payments to eliminate School Department vacation liability.
The Selectmen agreed with the Finance Board not to recommend rescinding the authority to bond $194,000 for school textbooks, Article 10, and $136,600 for school technology, Article 11. Finance Board member Peter D’Angelo said this strategy allows the town to keep its funding options open and reassess the payment at a later time without spending cash that may be necessary to help balance the budget at the May 2002 Town Meeting.
Selectmen decided not to recommend spending $25,000 for an engineering study of the fire station, Article 17. Although the Selectmen agreed that improvements or a new station is needed, they decided not to fund a study because the town does not have the funds to implement any recommendations.
Selectmen voted 3-2 not to recommend $25,000 for a study of how to reduce solid waste and recycling costs, Article 18. The Finance Board recommended the study, but Selectman Darin Leahy suggested the town pursue grant opportunities to fund it. Town waste removal costs run more than a million dollars annually.
Selectmen voted to recommend placing $225,000 in the Stabilization Fund for future unfunded pension liability payments, Article 20. See related note below.
Selectmen voted to recommend placing $250,000 in the Stabilization Fund, Article 21.
Selectmen voted to recommend spending $6,000 on parking enforcement, Article 24, and $5,000 on traffic enforcement, Article 25.
Selectmen voted to recommend paying Town Counsel Bill Solomon $5,000 for expenses related to the town’s cable contract, Article 26, and $5,000 for expenses related to updating the Town Code, Article 27.
Selectmen voted to recommend spending $150,000 for sidewalk construction and improvements, Article 29, and $150,000 for drainage projects, Article 30.
Selectmen voted to recommend spending $75,000 to cover half the cost of a new jet cleaner machine, Article 31. The other $75,000 will come from the sewer account.
Selectmen voted to recommend spending $597,891 to adjust the fiscal 2002 town budget, Article 34. This figure includes things like $14,000 for lights at the High School, $5,000 for painting crosswalks, $4,000 to fix the Town Hall organ, $36,000 for two police cruisers...
Non-money articles
Selectmen deferred to the Board of Assessors on Articles 1,2 and 3.
In Article 1 the Board of Assessors asks the town to approve tying the asset limitation and exemption amount for seniors, survivors and minors qualifying for property tax exemptions under clause 17E of MGL, Chapter 59, Section 5, to a cost of living adjustment determined by the Mass Commissioner of Revenue.
Qualifying individuals can have no more than $40,000 in assets to receive a $175 exemption on their property taxes. If the change is accepted by Town Meeting, these individuals will be able to have a little more and keep a little more over the years. The cost of living increase for the coming year will be around four percent.
In Article 2 the Board of Assessors asks the town to approve tying the asset and income limitations on citizens over 70 who qualify for property tax exemptions under clause 41D of the aforementioned MGL. The exemption stays at $500, but with the cost of living adjustment more seniors would qualify, and these folks could hold and earn more money over the years.
In Article 3 the Board of Assessors requests permission to use 100 percent of the cost of living adjustment to determine who qualifies for the two previous articles.
In Article 4 Selectmen ask to accept an easement over Cottage Street property.
In Article 6 Selectmen ask permission to grant an easement over Senior Center property.
In Article 7 Selectmen voted to recommend extending the term of the Bike / Greenway Committee.
Article 9 co-sponsors, the School Committee and Building Committee, will indefinitely postpone their request for funds for the school building project. See related story.
Articles 12-16, various requests from the Fire Department, will be indefinitely postponed. The engineering study discussed earlier (Article 17) would be the first step, and Selectmen aren’t ready to take that step yet.
Selectmen voted to recommend looking into pension obligation bonds as a means of funding municipal pension liability, Article 19. The idea is to sell bonds to get some quick cash, invest the money, and then hope to make more on the investment than what the town has to pay to bond holders.
Selectmen seem to have skipped over Article 28, a $35,000 drinking water assessment, but they will probably recommend favorable action at Town Meeting because the state requires the study, and the money is budgeted to come from water revenues.
Finally, Selectmen voted to recommend accepting annual Chapter 90 road money, Article 33.
Town Meeting opens at 7:30 p.m. in the Town Hall Auditorium on Monday, Oct. 29.
A note on pension liability
The Stoneham Retirement Board voted Oct. 24, in agreement with the Selectmen, to extend the schedule for funding Stoneham’s pension liability to 2020.
Because of the recent down market Stoneham’s pension fund investments have yielded less than expected. The town is around $600,000 short of funds to pay a fiscal 2003 payment in the schedule designed to balance by 2016. Options included dipping into free cash or extending the schedule. State law requires communities to fully fund their pension liability by 2028.
Both boards agreed that the free cash solution would be temporary and opted for a new schedule reflecting the realities of the struggling market.
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