LYNNFIELD — The Select Board is recommending a $65.05 million operating budget for the town in fiscal year 2024.
Town Administrator Rob Dolan said there are not any budget items with increases of more than 5 percent over FY23 “that cannot be explained.”
Budget highlights include an overall increase of a “modest” 3.2 percent, an increase in the school budget of 4 percent “that meets the complex post-COVID needs of the schools,” and a major investment in capital expenditures with a 30 percent increase. No new positions have been created and there is no use of free cash for operating costs.
Dolan began the presentation by explaining the principles of the budgeting process. He said the most important thing is to assemble an excellent team and engage residents to work together with a “responsible government.” Also important is staying ahead of potential crises and making sure the budget speaks to community priorities which he described as “education, proper planning, community health and safety.” He said that “schools are at the forefront in partnership with the community as a whole to support our children.”
“I think we have a great team and we stay ahead of potential crises by always meeting and giving you updates and working with the FinCom,” Dolan said. “We’ve never had an unforeseen budget crisis.”
The town also needs to focus on continued investment in the maintenance and enhancement of infrastructure and technology. A main focus that Dolan presented was the maintenance of roads, proposing to spend $1.2 million on roads in FY24.
Dolan described the town’s climate as “vibrant” in terms of attracting and supporting a “wide variety” of businesses and cultural, historical and recreational opportunities, adding that the level of support “is like no community I’ve ever seen.”
The town must also promote a balanced and responsible suburban design in working with the Planning Board. Dolan made particular note of the town’s acquisition of conservation land this year and “responsible growth” with the proposed senior development at Sagamore Springs Golf Course.
Dolan explained the FY24 budget goal is to develop a balanced budget that makes no use of free cash, promotes an aggressive capital program, and builds reserves for economic downturn.
Dolan then reviewed projected revenues. Property taxes increased to the maximum rate under Proposition 2 ½, which translates to $1,219,621. New growth is estimated at $275,000 for FY24. Dolan noted that the community is primarily residential, making it dependent on the local property taxes. He also noted that there has also been “steady” commercial growth in recent years.
New growth has leveled off to a pre-MarketStreet level. Dolan said since he has been town administrator, the town has seen new growth of more than $500,000 just once (2020). New growth also spiked in 2015, reaching approximately $2,500,00.
The town made up for stagnant new growth with “historical” state aid.
“[Former] Gov. Baker has said for the last eight years that he will tie state aid in with growth of the state economy,” said Dolan. “Maura Healey has done that also. State revenues are at an all-time high,” with new sources of revenue in the form of the so-called millionaires tax and state sports betting.
Dolan noted the state is in a post-COVID “crisis” in education in terms of student’s social and emotional wellness and a dramatic increase in out-of-district expenses.
To address these “skyrocketing” costs, Gov. Healey has increased state aid to Lynnfield by 16 percent to approximately $6.6 million, an $968,031 increase over FY23.
“That allows us to bridge that gap in our schools,” said Dolan.
He went on to discuss local receipts which have increased by a “modest” 1 percent. Motor vehicle excise tax makes up more than 50 percent of local receipts, while payments in lieu of taxes represent 11 percent, and licenses and permits account for 12 percent.
In terms of free cash, stabilization and capital facilities stabilization funds, Dolan said the town is conservatively budgeting, with a total of $2.5 million in stabilization funds. Dolan said the budget is a reflection of a total increase in projected tax revenue of $1,494,621 and an increase in local receipts of $100,000.
On the expense side, the town is projecting a 6 percent increase of $425,917 for health insurance, which Dolan attributed to more people visiting their care providers and “getting a lot more care.”
A 6.6 percent increase is projected for pensions.
The cost of assessors salaries will decrease by nearly 42 percent due to regionalization with Reading and Wakefield.
Essex Tech expenses are projected to decrease by 14.6 percent based on seven fewer students, a savings of $102,942.
“Rob as usual, great job,” said Select Board Chair Phil Crawford. “We are very fortunate to have the ARPA funds for the large projects. It’s all one-time money and we’ve used it in a very responsible manner.”
Fellow board member Joe Connell commended Town Accountant/Assistant Director of Finance Julie McCarthy and Dolan for their work.
