Town officials unclear on $1.2M debt exclusion distribution
Published on March 15th, 2006
STONEHAM, MA - With a little less than three weeks before citizens will vote on a $1.2 million debt exclusion override, town officials failed this Tuesday night to detail how the potential funding would be distributed amongst departments.
During a tri-board meeting between the Selectmen, Finance Board, and School Committee this week, the gathering scheduled a public hearing on March 29 to outline the consequences of the ballot question should it fail.
“I think it’s our responsibility to schedule a public hearing before the end of the month. These cuts are now totally unacceptable,” reasoned Selectmen Chair Robert Sweeney, after listening to a presentation from the School Committee on its proposed $950,000 worth of reductions.
According to Town Administrator Ron Florino, an approximate $1.8 million deficit would be split between the municipal and school sectors if the citizen tax increase fails.
With the passage of the proposal, which will reportedly cost the average Stoneham homeowner approximately $140 in FY07, a remaining $600,000 financial hole would need to be plugged by town officials.
Unlike an operating expense override, which is a permanent tax increase, a debt exclusion override would eventually disappear off of tax bills once the bonds being exempted from state-imposed taxation limits are paid off. According to Florino, the $1.2 million debt exclusion tacked onto the election ballot would extend for an approximate 20-year period of time.
While various elected officials on the School Committee and Board of Selectmen have alluded to the severity of the $1.8 million deficit for FY07 – and argued that the debt exclusion would avoid significant reductions in town services – no discussions have centered upon what reductions would be restored should the $1.2 million ballot question pass.
And based on comments made by town officials Tuesday night, the March 29 public hearing – scheduled just five days before citizens go to the election polls on April 4 – will also not include any presentation on how cuts to police, fire, public works, and educational services, among other functions, would be alleviated by the $1.2 million tax increase.
In fact, according to Sweeney, Selectman Tony Kennedy, and School Superintendent Dr. Joseph Connelly, the primary and only purpose of the late March meeting will be to detail the significance of the $1.8 million worth of budget cuts, and what will happen should citizens defeat the debt exclusion.
“That meeting would basically tell the people what the cuts are. It’s really not going to be a meeting for people to pick apart our budget or the School Committee’s budget,” said Sweeney, suggesting that residents will not be allowed to question the validity or appropriateness of the proposed reductions.
“We really worked hard on putting this budget together,” justified the Selectmen Chair, referring to the less than half-dozen meetings the Selectmen have held on the FY07 budget since the Town Administrator unveiled his expense plan this February.
According to Florino, the FY07 budget – which does not include the $950,000 raised last year through the $150 trash fee – really assumes a $2.8 million deficit. However, after using offsets such as additional state aid, funding from the stabilization and overlay reserve account, and additional tax revenues raised through new growth, that financial hole was reduced by $1.8 million.
Of that $1.8 million figure, the largest portion of the deficit stems from soaring health insurance costs, which are estimated to jump anywhere from 10 to 15 percent this year. In addition $250,000 in pension costs, $600,000 in special education increases, and $200,000 in employee “step” raises form the remaining backbone of the funding gap.
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