WHITMAN – Voters will be asked to vote on an operational override of Proposition 2.5 at the Monday, May 5 Town Meeting and the Saturday, May 17 Town Election, but the amount of the override has not yet been determined as the town faces a current deficit of $2.5 million.
“The budget indicates that an override is definitely necessary to maintain level services,” said Select Board member Shawn Kain, who has been working with Town Administrator Mary Beth Carter and Assistant Town Administrator Kathy Keefe, during the Tuesday, Feb. 25 meeting.
Free cash, meanwhile, has finally been certified at $2.2 million and Kain credited the town’s financial policies with keeping projections tighter.
Later in the meeting, the Select Board voted to impose a soft hiring freeze of new municipal employees because of the town’s finances, requiring approval from the Select Board, town administration so they can decide if a hold needs to be placed on a position that might be eliminated.
Execptions include a veterans services agent, which is mandated by law.
Superintendent of Schools Jeff Szymaniak also attended the meeting. Select Board member Laura Howe was absent.
The Select Board and Finance Committee will be meeting to discuss the issue further at its Tuesday, March 25 meeting and to schedule some public information forums in April.
Kain on the budget, said that he favors a smaller, short-term override, with the possibility of further overrides being necessary.
As of now, both boards are leaning toward a one-year override.
FinCom member Mike Andrews also said it would be advisable to put their cards on the table and let taxpayers know ahead of time it might not be just a “one-shot deal.”
“We may need to come back,” he said.
“That’s my concern,” said FinCom Vice Chair Mike Warner. “If we do an override right now, and we just meet the deficit, that means you’re guaranteeing you’re going to have an override next year.”
He said a move that would help any decision on an override, is to mandate a five-year plan from all departments, citing one the DPW has created.
Select Board Vice Chair Dan Salvucci said there is no guarantee that departments would be able to stick to a five-year plan.
“I want to make sure that we’re not positioning this conversation around this school as the reason for this override,” Winter said. “There are other things … that we know have to be done.”
He said he does not believe there’s time between now and May to come up with a projection for a multi-year ask of that magnitude.
Select Board Chair Dr. Carl Kowalski asked Kain if he could have two scenarios – for a one-year and a three-year override – ready in a couple of weeks. Kain said he could do that, as they have already done a one-year, and could have some in some detail, by March 25.
An informational contingency budget will be worked on by a working group between the town administration, the FinCon and Kain as informational tool.
Finance Committee Chair Kathleen Ottina opened the discussion with her statement on the budget before Kain provided a brief budget update.
“Tonight’s a big meeting to inform the finance committee on updating the current situation – I know what it is, but my committee members don’t,” she said. “I’ve looked at the school budget. I’ve analyzed [it] and I’ve sent [Szymaniak] my copy of the analysis with 32 questions.”
Ottina noted that Whitman, as a community, as a town, completely supported [SST’s] building, were very excited about it, and they also excited about the fact that SST is introducing two new programs. For veterinary technician and plumbing.
“This is going to offer students in the 21st century, opportunities that they don’t currently have,” she said. “But when it comes to the W-H Regional School district, there was not an awful lot of support from some corners of the town for the new middle school building, despite the fact that it was desperately needed, and yet it passed – and yet there are no new programs, despite the impact of the current budget, there are no new programs in the WH school budget.”
The middle school language program is not being returned, and no robotics courses are being offered, Ottina noted.
“No future thinking … to offer our kids to have more of them stay in W-H, so I think, when we come to making decisions about how we fund the schools, we as a community have been very generous and very supportive of the schools over the years, but we need to keep in mind that we’re only going to retain the kids if we provide an equitable education for all of them.”
“I couldn’t agree with you more,” said Kowalski.
South Shore Tech Superintendent-Director Dr. Thomas J. Hickey was meeting with the Finance Committee that evening following the joint meeting with the Select Board. Szymaniak will present the school budget to the Finance Committee on March 11.
Ottina, who had been attending meetings remotely of late, due to illness, said she has been working “behind the scenes” and also met remotely with Carter to keep on top of the town’s financial situation. She had contributed a couple of spread sheets during that time analyzing how things are going for the town financially.
“The key point … is the $993,176 – the amount of new revenue over last year that we can use toward the operating budget,” Kain said. One of the Select Board’s fiscal priorities is to put 10 to 15 percent of free cash into capital stabilization this year, Kain added. Another 10 to 15 percent is being eyed for stabilization.
After processing the budget figures provided by the W-H School District earlier this month, coupled with the town’s budget forecast in December and updated revenue figures for the town and its expenditures, Kain offered a brief revue to facilitate discussion.
Whitman’s “solid number” for the $797,975 as the 2.5 percent, plus $200,000 in new growth, puts the town’s projected levy limit at $32,916,982, with excluded debt of $4,346.763 and receipts form other sources at $10,872,308 brings the maximum allowable levy at $10,872,308 for a total revenue of $48,136,053.
After charges and offsets are calculated the available funds are $47,410,216. The town also used $509,000 in free cash to balance the budget at last year’s Town meeting.
“Switching over to expenses, that Plymouth County Retirement figure is a real killer,” Kain said. At $363,000 it represents an 11-percent increase. “That’s a huge increase that’s very difficult to account for.” Medical insurance is also up 7 percent. With Carter’s support, Kain said he would like to place another $200,000 from free cash to offset the major liability at Plymouth County Retirement.
“We do not support using free cash in the operating budget,” he said, explaining it as a short-tern use for the next five years, but recognizing that the schools are in a tough situation, the board recommends using $140,000 of the meals tax that was otherwise going to be used for OPEB, dedicated for educational purposes.
The other post-employment benefits liability would instead be funded with $140,000 in free cash.
Carter added that Town Hall needs an accounting software package to replace the current one, which is approaching end-of-life, and Fire Chief Timothy Clancy has been talking about a new fire engine, which could cost $1.8 million.
“In order to have money for these huge expenditures, we really need to be consistent,” said, endorsing the placement of 10 to 15 percent of free cash into capital stabilization, as well as the 10 to 15 percent into regular stabilization.
The Select Board agreed with the stabilization moves.
“When towns get in trouble is when they stop putting money into stabilization,” Select Board member Justin Evans said.
W-H’s assessment – at $1.8 million increase is 9.65 percent and SST’s assessment is actually down as Whitman’s enrollment is down and the overall enrollment at SST is stable.
The town’s salary increases at 2.5 percent is the placeholder, he added, noting that all town unions are currently in negotiations.
Expenses based on figures available in December were basically “zeroes across he board,” Kain said, adding expenses that must be paid into Article 2, to provide a little more realistic picture of where expenses need to be even with “a really sparse budget.”
Kain said the new growth figure is less than the town typically anticipates, but added that the feedback they are getting is that building is down a little bit.
“I feel pretty strongly that I think we should have a small override, one year, that we show the public how we’re sacrificing, as well,” Kain said. “Because of the debt the town has incurred with new building projects, people are going to feel the burden pretty significantly with that, and it’s understandable. To recognize that, the appropriate step forward – just my opinion – is a smaller override, one that is more palatable than adding significant services.”
Ideally, Kain said he would support a multi-year override, but he’s having a problem with the town’s ability to predict how much that would be over, say, five years, to a high degree.
“We have some unique variables in Whitman and Hanson that make it really difficult to project out that are beyond our control,” he said.
Kowalski said he had been supporting a multiple-year override, until he listened to Kain more carefully.
“I think I agree with you,” he said. “What you just described might be the way to go.”
Evans, however, said he thinks a multiple-year approach is the way to go.
“I don’t know that we have the numbers today,” he said, but didn’t think it would be too difficult to “get a good ballpark figure,” noting that the school district’s projections are available, the board can make some assumptions how on contract might go and other expenses within town departments for a three-year override, based on those assumptions. Getting beyond that, Evans did see forecasting problems.
“We could probably pencil in 10 percent for pension increases, 7 percent for health care increases – it seems like it’s going to continue to stay high,” he said.
Finance Committee members seemed to agree a shorter-period override would pose less of a burden on taxpayers, but have not discussed it a their meetings.