Town Manager Gives Recap and Expectations on Chelmsford's Budget

7:00p.m. to 7:04 p.m.

The meeting began with a discussion on the Fiscal Year 2015 capital and operating budgets, presented by Paul Cohen.

In October, Cohen sent out budgetary requests and capital requests to all departments in the community. While there is currently no budget as of yet, there are expectations in place which need to be discussed.

7:04 p.m. to 7:07 p.m.

Chelmsford town accountant Darlene Lussier gave an overview of Fiscal Year 2014 so far, which began in July.

October receipts were strong according to Lussier, particularly building permit fees, which are $119,000 higher than last year.

Meals excise taxes are also up 1.1 percent compared to last year. Rooms tax revenue was down 8 percent from last year. Additional motor vehicle excise fees are expected in January.

The town also sold a $727,988 bond.

In January, 41 percent of the allocated budget will have been expended, which is within expectations.

7:07 p.m. to 7:40 p.m.

Cohen followed Lussier’s presentation saying there are no significant holes to fill in the budget, with how the town’s Fiscal Year 2014 budget of $112 million is allocated, with 44 percent going to schools, 16 percent going to benefits and insurance, and 12 percent going to debt service.

Cohen said that the priorities within the budget included education, public safety, public works projects and health and human services within the town.

He also stated that capital infrastructure is important.

Over the past five years, the budget has increased by $15.5 million (16 percent), led by a 34.7 percent increased in allocation to Nashoba Tech funding.

The majority of the Fiscal Year ’14 budget comes from property taxes ($84.2 million, or 77 percent).

In the past five years, Chapter 70 funding (school aid) has jumped from $8.4 million to $10.2 million, but unrestricted government aid has fallen. However Chapter 70 funding is lower than comparable communities in terms of population and student enrollment, with Cohen calling it an unfair process.

Over the past five years, the split between residential and commercial property tax income in Chelmsford has been approximately 80 percent to 20 percent.

While the estimated average single family tax bill is not set in stone yet for 2014, it’s estimated at $18.98 per thousand dollars of valuation, or approximately $6,000. Over the past three years, Chelmsford has had the 70th lowest taxes in the state.

However, since 2004, the property taxes have jumped approximately $5 per thousand of value, or approximately $2,000 for the average family in town.

Cohen said the town’s philosophy is to maintain quality government services, expect a 3 percent gross budgetary increase for Chelmsford Public Schools, fund a growing budget for Nashoba Tech and meet fixed cost increases elsewhere, with these things potentially being impacted by attempts at energy savings, a new fire station opening soon, a 2 percent increase for pay plans and variations on the town’s employee health insurance plan.

In particular regarding the energy savings, the town soon expects 100 percent of its energy to come from renewable sources.

Budgetary increases include a possible 12 percent spike for Nashoba Tech funding ($260,000 potentially), a 10 percent increase for solid waste and recycling ($141,198) as well as $1.1 milion in debt service increases and $50,000 for state elections, the new fire station and new building insurance plans.

Over the past three fiscal years, Chelmsford has been $5 million over the minimum net required spending set for state standards.

Regarding staffing, over the past seven fiscal years, the Chelmsford Public Schools have shed approximately 40 full time equivalent (FTE) employees (not including employees), and saw a reduction of 400 students, with approximately 5,000 students for Fiscal Year 2014.

Cohen also indicated that Chelmsford is “right in the ballpark” regarding per-pupil expenditures compared to comparable towns at $11,751.35 per pupil.

Over the past six fiscal years, Chelmsford has sent approximately 40 additional students to Nashoba Tech, with an extra 17 expected for this fiscal year, bringing enrollment from Chelmsford to 171 students in Fiscal Year 2015.

Over the past seven years, general government FTEs have remained fairly level around 240, with a slight dip around 2011.

In Fiscal Year 2015, the town can appropriate $1,966,113 in extra funds without an override vote, $237,000 in extra state aid, $175,000 in extra local tax receipts and $1 million in project growth in property tax valuations. However, state aid projects may change after the Governor releases his proposal on Jan. 22

Finalized Nashoba Tech budget numbers will be available in February and health insurance premiums will be available in February or March.

7:40 p.m. to 7:55 p.m.

Chelmsford town budget manager John Souza then began an overview of the Fiscal Year 15 Capital Plan, beginning with the expectation that $3 million will be spent on capital requests, with $1.2 million of that going to a new quint, or combined ladder/water tank vehicle for the fire department, as the current one the town owns is near the end of its operational life and is frequently unable to be used.

Several expected school capital projects also total approximately $1.5 million.

Excluded debts for earlier projects are expected to drop in Fiscal Year ’15, however debts not excluded from the town’s levy limit are expected to jump by slightly over $1 million.

Souza also fielded a question regarding bond rates.

Finance Committee chairman Tom Gilroy asked Cohen about Chapter 70 reform, with Cohen summing up that it’s not politically possible to get reform where there are “winning” and “losing” towns.