Board of Finance pushes to trim tax increase, bonded capital in budget review

The Board of Finance met to review the town’s proposed 2025 budget, where staff said the draft budget submitted to the board shows a 6.9% year-over-year increase and recommended several reductions to lower the amount to be raised by taxation.

Town staff member Josh said departments produced their operating and capital requests beginning in October and that line-by-line reviews and earlier meetings with selectmen cut about $610,000 from operating requests and about $680,000 from bonded capital in prior reviews. He said the net effect to the headline budget is smaller after actuarial and technical adjustments.

Board member Todd (first name used in transcript) and staff summarized three board goals for the month of review: (1) reduce the amount raised by taxation — staff suggested lowering the increase by about 200 basis points, roughly $3 million; (2) lower bonded capital outlays (the book shows $23.3 million in total capital with about $21.6 million proposed as bonded); and (3) reduce taxpayer-supported (unbonded) capital, which staff said is proposed at $1.7 million versus $384,000 this year. Todd emphasized looking for projects already funded but not started that could be canceled or closed out to free funds.

Josh said the town’s average interest rate on outstanding debt is about 3.67% after prior refinancings, and staff estimates the town’s actions over the last several years have avoided roughly $32 million in property tax costs. Unassigned general fund balance was reported at approximately $20 million. Staff said debt service is being kept flat in the near term, and that the town expects to go to market to bond in March and will update numbers after that sale.

On revenues, staff reported modest increases in building permit and conveyance fee revenue and parking income, but cautioned that the budget also currently assumes a transfer from prior-year bond premium and other one-time items; staff said the bond premium will only be known after the March bond sale. Josh said the current plan places the amount to be raised by taxation at about 66.9% of the budgeted revenue requirement (as shown in the budget book under review).

Nut graf: The board signaled it will use the next several weeks of review to hit the three priorities — reduce the tax-rate impact, reduce bonded capital and trim taxpayer-supported capital — while preserving core services, with staff keeping a running “scorecard” of cuts and revenue opportunities.

Discussion and next steps: Board members and staff agreed to reconvene in late February and early March with more finalized fund-balance and bond-premium numbers ahead of the board’s vote and the March transmission of the budget to the Town Council. Staff also said they will provide updated projections for mill-rate analysis when the board meets to finalize votes.

Votes at a glance: The meeting included routine procedural votes. Motion to seat Steven for Maria (moved; seconded by Nick) — approved (voice vote: ayes). Motion to approve minutes of Jan. 14 (moved; seconded by Victor) — approved (ayes). Motion to adjourn (moved; seconded) — approved (ayes).