Council reviews restricted town funds as possible sources for housing, discusses Wakefield Elementary and South Road School options

The Town Council on Sept. 22 received an inventory from the finance director of town-held funds that could potentially be used to support affordable housing or other municipal priorities, and discussed whether to accelerate work on several municipally owned parcels including Wakefield Elementary and South Road School.

"The number one item is the affordable housing fund, which ... had $490,000," finance director Brian told the council as he reviewed account balances and restrictions. He listed other accounts and balances as presented in the meeting: an open-space fund with about $1.4 million (and $2.3 million of authorized but unissued open-space bond authorization available if needed), a South Road School fund at roughly $302,000 (part of which staff has been using for utilities and maintenance), a school-improvement fund of about $170,000, the Alva Watson endowment with $145,000 of which $106,000 is available, and the Walter Watson trust with roughly $216,000 (about $175,000 available).

Brian said that, if all the identified balances were available for repurposing, the total would be about $2.6 million. He cautioned, however, that some funds are restricted by purpose and that legal review (bond counsel or endowment documents) may be required before using specific funds for other purposes.

Interest income and fund accounting

Council members asked how interest income on invested funds is handled. Brian said the two endowment-type funds (Alva Watson and Walter Watson) are invested with the town's PFM asset manager and earn investment income that helps support senior services and hardship assistance. He said those funds represent a small portion of the town's overall PFM portfolio (0.62% and 0.77%, respectively).

By contrast, other accounts (for example, some open-space balances) do not have their interest rolled back into the same restricted fund; rather, that investment income accrues to the town's general fund and is used as general revenue in the operating budget. Staff and councilors discussed whether more of these returns should be earmarked for programmatic uses such as animal-shelter operations or affordable-housing seed money.

Possible municipal-property housing proposals and RFP timing

On housing-specific sites, the manager and planners reported that an RFP circulated in July for municipal parcels was judged premature by a state reviewer; the state recommended the town first secure grant funds or technical work to refine infrastructure and utility cost estimates before seeking developers or issuing a final RFP.

Staff said the town applied for a $75,000 Municipal Technical Assistance grant to refine utility and infrastructure cost estimates for the Alva Watson parcel; the award announcement was expected by October. For South Road School, staff said rough estimates for infrastructure work could be on the order of $5 million to $6 million, but those numbers were not final.

Wakefield Elementary was discussed separately. Council members noted community interest and petition activity. Staff presented an April site layout from a consultant that showed two smaller building footprints on the former school site and an expanded public green and connector to the bike path. Staff also raised a policy question: whether the council wanted to accelerate demolition of the vacant Wakefield Elementary building and seed the parcel as lawn while long-term options are developed; staff said they would bring cost and funding options back to the council.

Public comment: pace and moratorium request

A Wakefield resident, Jim O'Neil, urged the council to slow approvals of new housing proposals pending a careful look at municipal capacity for services, schools and infrastructure and suggested considering a pause or moratorium on new planning approvals until the town evaluates a pipeline of proposals.

What happens next

Council members asked staff to continue legal checks on specific funds (bond counsel/endowment language) and to return with refined estimates for using municipal land for affordable housing. Staff said grant awards and technical assistance could inform an RFP process later this fall or winter. Council members emphasized the need for transparency with residents about funding options and any repurposing of restricted balances.

Speakers (selected)

- Brian (Finance Director) - Town Manager Jim - Council Vice President Marin - Jim O'Neil (resident, Wakefield)

Ending

Staff will provide follow-up memos to the council clarifying restrictions on specific funds, the annual income those funds generate, and any legal requirements that govern their use; the council asked that that information be available during budget deliberations.