4/5 9:44am   MA - Admiring a financial strategy similar to the Medway plan is like rebalancing your portfolio into stocks in 1928. Medway is borrowing money, or will have an override, because they don't have a balanced budget for 2006, not 2007 - 2006. Clearly there are better financial solutions than borrowing money against future revenues. Medway is in serious risk of having the State determine their fiscal budget, overruling any say that the Town meeting would have. Would you want the State determining how many children in a class room, Police Officers to have on duty, which roads to pave? Increasing a Town's debt service only takes money away from the School and Government budgets that are better used for Town services.
JPB - No-one wants an override, and we are working extremely hard to prevent one this year. I welcome your suggestions and think it would be a great idea for you and your group to meet with me and/or the Selectmen to talk about cost saving ideas. Many of the budgets for the Town departments and the schools have been cut significantly for 2007, which will have an impact on the services that we provide to the Town. The DPW will have a reduction in funding from last year, even with significant increases in fuel costs. The Police are at the same level of staffing as in 1996, despite an increase of over 1,000 residents, and facilities maintenance for Town buildings has only increased 1% in 2007, despite significantly higher utility costs. King Philip will have layoffs and the Norfolk Elementary schools have laid out their budget plans at their public hearing and in several published reports. None of these budgets will be easy to live with, but we do understand that these economic times are not easy for anyone.
Jack M - First of all, I have always appreciated your input, insight and knowledge of the Town's operations and history. Anyone who thinks that a former Selectman's opinion isn't valued is being very short-sighted.
You're right, we didn't have an override since 2001, but I would also point out we were able to avoid one for many of those years because we had the auction proceeds of the tax foreclosed property. We supplemented the budget with these proceeds while expenses grew (at double digit rates for many fixed costs such as health insurance and Norfolk County assessments) and State Aid stalled. We spoke last year at Town Meeting about all of the new facilities in Town, while the construction costs were previously approved, the increased facility costs needed to be absorbed in the operating budget. New or enlarged buildings such as Town Hall, the Senior Center, H. Olive Day School, the Library and the Pond Street recreation facility need to be maintained, not to mention heated and electrified. Anyone who assumed we were going to be able to absorb those new or expanded facilities in the budget without an override was being naive. Until 2005 we were able to avoid an override, then the reserves were gone and the expenses continued to out pace the revenues.
We are looking to create new revenue streams, like the auction proceeds, any suggestions you have would be greatly appreciated. We're working on Cell tower revenues, parking fees and of course - continuing to balance new growth with reasonable development.
Even with the override last year, we still relied on "One Time funds" or to use State lingo, "Rainy Day funds" including the use of Free Cash and the Ambulance Receipts fund. If we are able to balance the budget again this year (I am beginning to be confidant that we will), it will be because we are gaining efficiencies, cutting services and relying on reserves - again. The reserves will likely again be gone next year and unless the state steps to the plate and stops level funding Norfolk, the Town may face a decision of further cuts or we will need to consider an override. I say may, because I still expect an increase in New Growth from several large developments that may help us out in FY08.
You are also right about the King Philip tax increase. We have one more year of increased debt service (about 1.5% - 1.7% increase to the tax bill next year) that will be added to the tax bill, and then we see a leveling off for a year, then the drop begins.
And - you're right again about the drop in the 1st quarter tax bill due to the doubling up last year in the 3rd and 4th quarter. Nice to have good news once in a while.
P.S.: I like the clock and the roundabouts, and I know a lot of people agree.
JO - Painting "Stop & Shop" on the side of the water tower is a nice thought, but you'll likely create an uprising in Town and you'll be in violation of several state laws. We may be able to put out a request for bids, to see who would want to paint the tower and what are they willing to pay us, but you would be forced to accept the highest bidder. Are you willing to take that risk and allow ANYTHING to be painted up there?
People often ask me what are we doing to save money or to be creative. We are considering the Vehicle Replacement Fund, again. What this fund will do is place money in a savings account (Stabilization Fund in Municipal Lingo) that can only be spent with Town Meeting approval, and only for Vehicle Replacement needs. This plan allows us to pay cash for many of our vehicles, avoiding over $1,000,000 of finance costs over the next 15 years. This plan also allows us to replace vehicles according to a schedule, rather than delaying purchases and causing vehicles to exceed 150,000 - 300,000 miles and driving up maintenance costs, significantly. There will be much more discussion at the upcoming Advisory Board, Capital Outlay and the Board of Selectmen meetings and finally a full presentation at Town Meeting. I encourage you to learn about this plan, before you make up your mind that all overrides are bad. This plan was strongly supported by Town Meeting attendees last year, but was defeated at the election. I believe that if more people understood the merits of the plan, it would have passed. The plan makes sense for the Town and it saves us money by limiting our need to borrow money. As we said last year, this isn't a question about spending money, it's about how you want to finance these vehicles - do you want to use your credit card or do you want to budget for these expenses?
If you have a chance, please watch the Selectmen's meetings on NCTV, Cable Channel 22, the March 27th meeting that is currently running has a budget update, and the upcoming meeting on April 11th will have more budget discussion.
Thank you.

- Jack Hathaway, Town Administrator Town of Norfolk, MA, 508.528.1408

Home