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Town Manager Meets Budget Target; Schools Request is Wildcard

In a joint meeting between the Board of Selectmen and the Finance Committee, Town Manager Mark Haddad presented a draft operating budget for 2017 that reflected the direction laid out to him by the Board and Committee respectively to come in with a budget not to exceed 2.2 percent increase over last year.

He hit that target for the Municipal side, but the big question is the school budget and the assessment to the town. The final budget document that will be submitted before the end of December should contain more detail, especially from the School District.

Haddad presented an operating budget comparison for FY2016 and FY2017, showing a $17,310 decrease in the General Government line. This is based on the retirement of an employee in the Board of Assessors office who, Haddad said, would not be replaced. This potential savings of the $36,000 salary is offset by increasing the hours in the Treasurer's office at a cost of $6600 to perform the work that the Assessor clerk did for that department.

In addition, there was a $5,000 reduction in phone usage; a $13,000 reduction in Selectmen expenses, and $27,000 for Pepperell debt service that will now be paid from general expenses by the Sewer Department.

The other increases in the General Government line including $9000 in insurance and bonding (estimate) and $4400 to cover an extra election.

Protection of Persons and Property will increase by 2.55 percent, which Haddad termed "not outrageous" and maintained the Emergency Response.

The Department of Public Works' budget is proposed to increase by $44,166 or 2.10 percent. This includes the proposed addition of a full-time custodial employee to be shared with the Groton Electric Light department which will contribute $16,000 annually as their share of the cost and benefits. Haddad said that he viewed this as a trade of one position for another with the Assessors clerk position not being filled. "It is a wash benefit-wise and reduces overtime at the Transfer Station," he said.

Selectman Josh Degen said he was not surprised at the DPW new hire request, but felt that losing employees to attrition presented an opportunity to do cross training, using other employees in Town Hall. "I am not in favor of the [new] custodial position and I want to talk about this." He added that the "old mindset just to add 2.5 percent to the budget every year doesn't meet the reality of the town."

The Library and Citizen Services line items will increase by $52, 920 or 3.44 percent, while employee benefits rise at the largest percentage by $239,495 or 6.63 percent.

Lastly, the debt service line will decrease by $100,877 or a decrease of 6.83 percent.

Haddad told the Selectmen and FinCom that he had a new funding idea. He proposed borrowing on the outstanding debt for two years, just paying the interest, and then in 2019 floating a bond for all the debt.

This includes projects identified BANs (Bond Anticipation Notes) for borrowing $200,000 for the Four Corners sewer project, $650,000 for the Fire/Police radios, and the Lost Lake Sewer for $1.8M. In addition, this bond would include a new fire truck that is under consideration. He suggested one permanent bond in FY2019/Fy2020 - a time when the early retirement unfunded pension debt will go away that would cover all these items.

However, when discussing the budget there is a large elephant in the room. So far the Groton-Dunstable Regional School District budget has not been completed, but early indications are that minimally it will rise by at least an additional $1M to fund the schools just to maintain the status quo for 2016. Anything above that, - there has been some discussion about a $2.5M increase that could mean an override for 2017; and because there are as yet no numbers for capital and technology spending, there could potentially be another override request from the schools for 2018.

Haddad advised, "The only way to fund $3M for the schools is to cut $1.9 M from the municipal side of the budget or do an override."

Selectman Stuart Schulman said he felt that "people may endure one year, but they are not going to do one every year."

Selectman Josh Degen stated that if the School Committee looks for an override of $2M in Groton, "It is going to be a tough sell." He suggested that the 'concise' document that is being worked on by the School Committee, "drill down" to get at all the information. He too noted that there could well be another override requested for capital and technology expenses the following year.

FinCom member Barry Pease calculated that of the budget presented so far, the school department comprises 58.72 percent of the budget, or just over $18M, while the Municipal side comes in at just over $12M or 41.28 percent.

Should an override of $2.7M for 2017 go through, this translates to $1.24 or $124 per thousand increase on the tax bills. Haddad calculated that this would mean an increase of $1200 on a home assessed at $1M.

Groton Herald

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