Charlestown council approves $30.18 million budget, sets tentative tax rate at $5.89

The Charlestown Town Council approved a $30,181,747 fiscal year budget after a multi-hour staff presentation and discussion about audited fund balances, revenue estimates and staffing costs.

Council members heard a draft audit and fund-balance overview from Ken, a finance staff member who said the town’s unassigned fund balance grew by about $1.2 million to roughly 26.5 percent of operating expenditures and that the increase restored the town’s fund-balance policy. Ken also provided a department-level view of actuals and variances and noted the draft audit and state report had been submitted for state review.

The council discussed revenue-side assumptions including a $4.0 billion assessed tax base that staff estimated grew about 0.43 percent year over year and the mechanics of how small changes affect the tax rate (staff said approximately $42,500 in revenue moves the tax rate one penny). Using current expenditure estimates and revenue adjustments, staff presented a range of possible tax rates. A $5.91 per $1,000 rate was presented as one estimate; after council direction the working recommendation moved to $5.89, described in the meeting as approximately a 1.9 percent increase from the prior year rate of $5.78.

Councilors and staff also reviewed specific line-item adjustments across departments. Staff reported modest reductions to several operating-supply and utility accounts and noted a roughly $300,000 operating surplus in the year being audited. Discussions covered vehicle purchase versus lease choices for public works, the timing of large equipment deliveries, and whether to use surplus to reduce debt principal early. Staff noted certain reserve and special funds — including ARPA funds, an open-space account and an opioid-settlement account — and explained how some activity had been reclassified for reporting (one account previously shown separately was moved back into the ARPA fund for reporting purposes).

On revenue-detail work, council and staff flagged uncertainty in the prior-year tax and interest lines. Staff said prior-year tax collections and related interest have varied year to year and that historical audited figures ranged across several different totals; the collection rate remained high overall at about 98 percent, but exact outstanding balances by vintage year were not available at the meeting and staff said they are developing improved tracking to produce clearer trends.

After discussing potential uses for a modest revenue variance, councilors agreed on allocations from the estimated surplus tied to the tax-rate choice: $85,311 to Fund 75 (reserve/unspecified fund referenced in the packet) and $25,000 to the revaluation/rebuild fund (both amounts and fund names as presented by staff). Councilors also agreed to retain $10,000 for a proposed intern position, which staff said Steve McCandless would help place.

The council moved to approve the budget as discussed. A motion to approve the budget with the bottom-line total of $30,181,747 was made and seconded; the motion passed by voice vote (transcript records a voice “Aye” with no roll-call tally recorded). Earlier in the meeting the council also approved the March 4 minutes by voice vote.

The council asked Tim (staff) to draft a transmittal letter for the budget and circulate it by email for final comment; members moved and seconded that Tim prepare and circulate the letter. Staff said updated budget tables and department worksheets would be circulated to the council that afternoon.

The meeting closed after a brief discussion of advertising requirements for any follow-up meeting; the council recessed with a motion to adjourn.

Ending: The council approved the budget and instructed staff to finalize the transmittal documents and circulate them to councilors by email for any final edits prior to submission to the town’s next required public notice and council actions.