The day after Town Administrator Jay McGrail presented Marion’s Fiscal Year 2022 budget to the Board of Selectman, he met with the Finance Committee on February 3 to do the same, and the message was consistent. Department heads were asked to present a level-services budget.
“This is not where we started. A lot of departments came in with requests that didn’t make it to you guys,” said McGrail, noting that the town is starting to see the effect of the COVID-19 pandemic in FY21 in the recent form of staff furloughs and targeted hiring freezes.
Finance Director Judy Mooney shared several graphics and excerpts from the budget line items with the committee.
Projected revenues in Marion for FY22 are 80 percent based on the projected tax levy of $20,466,664.
Schools are expected to take up over $12 million of the FY22 budget or 48 percent.
While McGrail proposed an FY22 budget that projects a 3.55 percent increase with acknowledgment of a $170,000 deficit that must be worked through, he noted that the increase is 2.3 percent without adding the schools. If one were to remove the expenses associated with the Benson Brook Transfer Station and curbside trash collection, the overall increase for FY22 would be 1.6 percent.
“I think that really speaks to where we are as a town,” said McGrail.
The town hopes to balance the Benson Brook budget via the sale of stickers to Rochester residents.
McGrail reported $630,000 in available funds, with schools taking up $572,000 or 91 percent. He said he met on February 1 with the school administration and was waiting while “they work on a new budget number as they help us balance the budget.”
Finance Committee member Shay Assad opened the meeting in the absence of Chairman Peter Winters, who joined the Zoom call later. Assad said it was premature to discuss school budgets without revised figures.
Marion has gone from dependence on $400,000 in free cash two years ago to $350,000 last year and is proposing $300,000 for FY22.
Benson Brook transfer station is open two days a week now, and curbside collection is now in a five-year contract with SEMASS after Marion’s departure from the Carver Marion Wareham Regional Refuse Disposal District. The new cost has been absorbed into the tax levy without an override.
In his overview, McGrail told FinCom he hopes to bring in department heads for meetings leading up to a March 3 joint meeting with the schools.
The committee first heard from Capital Planning Improvements Committee Chairman Paul Naiman, who explained the workings of the CIPC and shared its rankings of the town’s 20 capital projects.
Capital projects are defined by anything that costs $10,000 or more and has a life of five or more years. The CIPC does not approve projects but creates a ranked list for the consideration of McGrail, Mooney, FinCom, and the selectmen. CIPC’s 10-point rating scale is based on town priority, regulatory needs, public safety, lower costs, funding sources, and useful life. All committee members score each project.
Naiman reported over 20 projects had been put before the CIPC totaling $1,400,000. Schools accounted for seven projects, including two at Old Rochester Regional senior or junior high schools and four at Sippican School. Naiman noted that the ORR track rehabilitation project did not make it onto the other Tri-Towns’ two Town Meeting warrants. This year, Naiman invited Mattapoisett and Rochester schools to go through the projects together. “This year, hopefully, we won’t see that again,” he said.
Marion’s Department of Public Works accounts for five capital projects.
FinCom member John Menzel offered a compliment to the CIPC for its effort.
McGrail told the committee that department heads were requested only to bring projects forward that could be applied to this year. “So, these projects are critical this year and need to be addressed,” he said.
New Chief of Police Richard Nighelli received credit from McGrail for limiting his requests to those he thought were most important. McGrail also noted that a number of staff positions in the DPW are unfilled at the present time. Marion is looking to fill a mechanic’s position. Winters suggested limiting the number of staff hires. McGrail said Recreation Department Director Jody Dickerson has been doing an outstanding job in helping the DPW staff.
Outsourcing trash pickup with Waste Management has been met with resounding approval from budget and aesthetics standpoints.
Mooney said pensions are a driving force, estimating it to account for one of the biggest pieces of the general fund other than the school.
Water enterprise is projected to see a slight decrease in the overall budget for FY22, but sewer enterprise takes a big jump as the town has incurred new debt for the lagoon cleanup project. The town is recommending trying to control sewer rates with a $200,000 general-fund subsidy from free cash. Marion has certified $1.6 million in free cash to support the sewer enterprise fund and offset the increase.
Selectman John Waterman cautioned against the idea, saying that once the town dips into free cash, “There’s no going back. We really have to think twice before we commit…. We stop doing it, and rates shoot way up,” he said. “Once we plug that into the budget this year, we have to do it every year.”
McGrail said residents have formed lines outside of the Town House to complain about their bills. “We’ve heard it from the community,” he said. “If we don’t do this, we’re looking at another 20 percent (rate) increase.”
Mooney said that Marion looks at a five-year average on usage. “Those dry years tend to spike it,” she said.
Winters asked if the Sewer Department’s estimated budget includes an estimated increase for borrowing the extra $2 million for removing the extra sludge from the lagoon, but McGrail said the town does not have a hard number on that expense. Mooney said the town would assume debt in FY23. McGrail said that debt would not be the only solution, calling it “just one piece of the puzzle.”
The budget schedule tentatively includes a February 24 FinCom meeting with CIPC, a March 3 FinCom meeting with the schools, and an April 13 submission of the warrant to the printer.
Assad said, “Jay and Judy have both done a great job. It was a lot of work and a lot of preparation.” Winters and member Charlie Larkin added their thanks, and Winters also noted the DPW did a great job with snow removal.
The next meeting of the Marion Finance Committee is scheduled for Wednesday, February 24, at 7:00 pm.
Marion Finance Committee
By Mick Colageo