Marlborough finance board reallocates school capital funds and asks for additional operating cuts to temper budget increase

Marlborough — The Board of Finance voted unanimously on March 16 to reallocate capital funds in the Board of Education budget and approved a motion asking the local Board of Education and town departments to trim operating budgets further as the board seeks to keep the townwide budget increase near 4 percent before it goes to voters.

Superintendent Holly Hagman told the board the district is seeing health insurance costs trending about 15 percent and said officials are using a "21% placeholder" from Anthem until the final rate is set; that assumption added roughly $107,000 to the BOE projection and raised the education budget to a 4.77 percent increase from an earlier 3.57 percent figure. Hagman also presented capital reductions: removal of a day-tank sensor ($20,000); cutting the southwest egress demolition and replacement from $160,000 to $40,000 (a $120,000 reduction); and reducing the roof-replacement reserve contribution to $20,000 while reallocating $120,000 to the egress project.

Baird Welch-Collins moved, and Ken Hjulstrom seconded, a motion to reallocate the BOE capital project funds as presented so the revised capital total would be $70,000 (down from $210,000); the motion carried unanimously. The board recorded that change for inclusion at the public hearing.

In broader budget deliberations, board members reviewed a revised RHAM figure using the higher insurance placeholder — $9,352,184 for operating and $70,000 for capital (a 4.09 percent increase). The board discussed remaining uncertainties tied to a pending audit, the possibility of using speeding-ticket revenue to help pay for a new dump truck, and an undesignated fund balance that the board said is somewhat larger than required. Members said they need to find roughly $400,000 in reductions to hit a 4 percent target that they fear voters will accept.

To that end, Mr. Hjulstrom moved, seconded by Mr. Welch-Collins, that the board ask the local BOE to reduce its operating budget by $25,000 and the town to reduce its operating budget by $125,000; the proposal was described as in addition to $300,000 in already deferred projects. The board calculated that combination would result in a 4.22 percent overall increase; the motion passed with all members voting in favor.

During two public-comment periods, residents urged deeper cuts or broader distribution of reductions. Deb Bourbeau said, "a 4.22% budget won’t pass," and warned that a second referendum would cost roughly $10,000. Allen Miller estimated a mill rate of "26.24" assuming a flat budget and said he would publish the figure in the River East. Other residents raised concerns about senior services, energy savings such as adjusting thermostats, and the lack of a community center.

The board also handled routine business: financial reports were not available in time for review, liaisons reported that RHAM and the local BOE continue work to reduce their budgets, and the board approved minutes from meetings on Feb. 23, Feb. 25, March 2 (Mr. Fidler abstained on the March 2 minutes), and March 4. Chairperson Michael Nastri moved to adjourn at 8:48 p.m.; the motion was seconded by Baird Welch-Collins and carried unanimously.

Next steps set by the board include presenting the revised BOE capital plan at the public hearing and awaiting the final insurance rate from Anthem and the town audit, both of which will influence final budget decisions.