Q&A With Roy Epstein, Seeking Re-Election To The Select Board

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Photo: Roy Epstein

Roy Epstein is serving his first term on the Belmont Select Board. A 28-year resident who lives on Cushing Avenue, Epstein is a consulting economist and adjunct professor of finance at Boston College. He previously was chair of the town’s Warrant Committee. Epstein matriculated at Wesleyan (economics) before earning his PhD in Economics at Yale.

Q: If reelected, what are some issues facing the town that you would bring to the fore that may have been neglected or set aside due to more important concerns such as the town’s fiscal condition or Covid?

A: Covid slowed down some work but we’re getting back up to speed.  

Progress on a new rink is one example.  

The town would benefit from certain changes in the management of our pension assets to increase investment returns and decrease administrative expenses.  I hope the Retirement Board, which is independent of the Select Board, will be receptive to taking suggestions for increased efficiency from the Select Board.  

Many of our peer towns made the correct decision to leave Civil Service to promote efficiency and diversity in hiring new police and firefighters, and I expect we will explore new avenues to get there.  

Our fiscal condition will continue to absorb a great deal of my time, in any scenario. We need to face the reality of our looming structural deficit in FY2024 or 2025 when one-time ARPA funds run out.

Q: There has be talk in the past of reconstituting the select board as a policy body and giving more of the mundane necessities – approving annual business permits and approval of the water rates – to the Town Administrator. Could you support that change?

I could support handing off tasks that are mostly clerical, like approving business permits or other licenses, as long as it’s permitted by state law and that there is an appeal process that could bring a contested decision back to the Select Board for review. Water rates or any other decision that could involve a significant amount of money should stay with the Select Board for deliberation and also to allow for sufficient public comment. The items that could be handed off generally don’t require much time in the grand scheme, so the potential for streamlining the work of the Board in this way is rather limited.

Q: What is your guiding philosophy of good governance? Do you have an example of one?

I’ve always combined thorough research, public input, knowledge of financial impacts, and critical thinking in making my decisions. Examples from my first term include my work that led to more senior housing units at the McLean development, making the Light Board an independently-elected body, and finding a cost-effective way to do more pick-up of trash in the parks and business areas. I would also add that regulations should have a clear rationale, be easy to understand, and be easy to enforce. I hope to demonstrate those principles with a leaf blower bylaw in a few weeks.  

Q: What do you wish residents would know about the Select Board they may have a misconception? 

First, we really do pay attention to the huge volume of emails we get from residents. Second, nearly all things related to the schools are under the control of the independently elected School Committee, not the Select Board — that’s determined by state law. Third, we take the Open Meeting Law and all ethics matters very seriously. We share a commitment to transparency and accountability in all we do.

Q: One town official said too many town and elected officials “just can’t say no.” Should the select board say “no” and can you tell a time you did so.

I don’t know which official you’re referring to. The Select Board is often unanimous but not always. We had a split vote on the $12.5 million override in July 2020. We also had a split vote on recommending the new Light Board. We also just had a split vote on the traffic plan for Leonard Street this summer.

Q: What do you “enjoy” about being on the board?

I care deeply about Belmont and our residents, and for me it’s a pleasure to find solutions to hard problems. I enjoy the challenge of trying to find common ground when there are so many different opinions in town. I also enjoy working with our highly capable Town Administrator, department heads, and fellow elected officials, who are all genuine public servants.

Debate Dust-Up At Candidates’ Night As Epstein, Lasseter Seek Voters Attention For Select Board Seat

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Photo: Lawn signs for the candidates for Select Board

The League of Women Voters of Belmont’s annual Candidates’ Night is the opportunity for many residents to get their first – and sometimes, only – look at the town-wide candidates in action. For the most part, the hottest moments in past debates was from the lack of air conditioning in the former Belmont High School auditorium.

Not so the 2022 edition as sparks flew during virtual Q&A on Thursday night, March 24, as the public watched the aspirants for the Select Board – political neophyte Jeff Dean Lasseter and incumbent Roy Epstein – forced home their points in a classic dust-up of ideas and policy differences.

And it was the self-described ”positive force multiplier” Lasseter who made the most noteworthy claims. Backed by the austerity advocacy group Citizens for a Fiscally Responsible Belmont, Lasseter told viewers as a Select Board member he would put a target on the town’s relationship with its workers and their union representatives, contends the schools are over budget by a whopping 17 percent and blasted Belmont’s chief administrative officer as being a “toxic” element in town.

In his opening remarks, Lasseter laid blame for the litany of fIscal issues squarely on the current and past Select Boards, from the ”dire financial straits” he said the town is experiencing and the lack of a plan in place to tackle the town’s “average” $2.3 million “budget deficit” [Editor’s note: Under state law, cities and towns are not allowed to have any shortfalls at the close of the fiscal year.]

“This is simply poor financial management,” he claims. The remedy to all of the town’s problems is anchored in the well-worn catch phrase ”common sense spending.” Lasseter’s one example he provided was a need for a new select board to do ”something” with town employees and their representative unions.

”These things aren’t acceptable the way they are,” said Lasseter, who did not specify the actions he would advocate against the unions and their members. Belmont employs more than 700 full-time employees in public safety, the schools and town services. It also has approximately 600 part-time and seasonal workers.

For his part, one-term incumbent Roy Epstein used his opening statement to tout his achievements during the past three years.

“I’m running for re-election because I love this town because I’ve accomplished a lot in the last three years and because there’s still a lot to do.” He pointed to his work reducing the size of the Beatrice Circle 40B proposal, reconstruct a new Light Board and restart the planning of a new skating rink and led the work on controlling student parking on side streets around the new Belmont High School.

“I’ve always worked hard to be a voice for all of Belmont,” said Epstein. “Having good local government is essential for our quality of life. I offer my judgement, independence, imagination and above all proven experience.”

While Epstein has spent more than a decade in town governance, serving on the Select Board, chair of the Warrant Committee and headed the special group which developed a plan to support installing solar panels on residential property, Lasseter’s local government experience is a blank slate. A Woodland Street resident since 2014, he has not sought to volunteer on the numerous town boards, is not a member or currently running for Town Meeting, and has yet to vote in a town election.

When Epstein highlighted Lasseter’s lack of turning up to the ballot box, the former CIA employee noted his numerous assignments and other government obligations for not visiting the Beech Street Center polling station during town elections (Lasseter has voted in national elections.) Epstein quickly noted that Belmont has ”a system of absentee ballots. That’s all I would say.”

Not that Lasseter has steered clear of politics, lending himself to a campaign video for Caroline Colarusso, the Republican congressional candidate defeated by incumbent US Rep Kathleen Clark in the 2020 general election. He was also seen on Twitter confronting Gov. Charlie Baker over Covid-19 restrictions on businesses as Baker left a visit to Wheelworks in Waverley Square in Aug. 2020. Lasseter is best known for owning and managing Jamaica Jeff’s, a Caribbean-themed restaurant in Belmont Center that closed in early 2022.

When resident Katherine Jewell asked the candidates to prioritize four important issues facing the town – fixing potholes, building a new library, construction of a skating rink and investing in schools – Epstein used the safe out, claiming that ”I support all these things” noting the worthiness of the capital projects will ultimately be decided by the voters in likely debt exclusion votes while schools, budgeted at “$70 million” – the current draft amount for fiscal 2023 is $68.9 million as of February 2022 – and potholes are part of the operating budget and are being funded.

While saying ”I support the schools 100 percent,” Lasseter said while “we budgeted [schools] for … 70 [million dollars],” ”it only really costs 59 to 60 [million dollars]” to run the district. Lasseter did not detail the 17 percent gap between his vision of the schools budget and that vetted by the school district and warrant committee or if he would challenge the school budget at the upcoming annual Town Meeting in June.

“[W]e need to be realistic, on how much money we have and then what we can spend,” said Lasseter.

Lasseter also said the current skating rink and library structures simply “need improvements” despite lengthy studies demonstrating both facilities have passed their useful lives especially the library. Rather than rely on the existing multi-year reports for both projects, Lasseter suggested going back to square one where ”we need a plan a, b and c and we need to pick the most viable plan with the resources we have available.”

The most contentious question was from an “anonymous” resident directed at Belmont’s Town Administrator, Patrice Garvin, alleging ”the salaries and financial benefits some town employees receive … are considered excessively generous by many citizens.”

Epstein said Garvin – who has been in her position since 2018 – “does an excellent job,” emphasizing that past Select Boards and the town’s Human Resources Department have conducted extensive salary benchmarking with relative-sized communities and discovered Garvin is paid slightly below where the “market is.”

“We’ve had this discussion over and over again but people insist on attacking our town administrator,” said Epstein, noting top male town officials are not held to the same scrutiny. “It seems bizarrely aggressive and misogynistic and I reiterate my support,” for Garvin, he said.

But Lasseter alleged that “there’s a toxic relationship that exists between our administrator and many of our public servants that are here to protect us and these things need to be fixed. That’s just the reality.”

The allegation of a toxic relationship is referenced in a recent letter to the Select Board targeting Garvin with unsubstantiated wrongdoing presented by John Sullivan, president of the Belmont Education Association, whose union is in increasingly contentious contract talks with the Belmont School Committee and town officials who are creating the fiscal year 2023 budget. [Editor’s note: The Belmontonian has decided not to publish the letter as it contains possible elements of libel.]

Saying Lasseter was “clearly referring to the letter,” Epstein said his challenger was repeating “innuendo that is unfounded, malicious and is bound up intimately with ongoing contractual negotiations.” Lasseter quickly doubled down on his assertion the letter was asking for “fairness and respect in dealing in a professional manner.” “These things are uncomfortable but they need to be discussed,” he said, stating he had read the letter.

Lasseter also questioned Garvin’s salary. ”I like, most Belmont citizens, find these things out after the fact,” wondering why salary decisions by the Select Board “is never put to a vote in the town.” [Editor’s note: Garvin’s salary was approved by the Select Board in open session.]

“The money belongs to the town and we should have a say in it. It shouldn’t just be administered by leadership and then told us how we have to spend it,” he claimed.

Wrapping up, Lasseter reiterated his past claims that by voting for Epstein “the same financial mess that we’re in or likelihood of severe could happen sooner than later.” He also highlighted the town not having to accept “toxic relationships,” homeowners forced to sell homes due to high tax bills and . While saying he wants to put the town on a strong financial footing via common sense spending, Lasseter referenced a misleading assumption advanced by several CFRB members at public meetings that the Belmont Middle and High School building project is $17 million over budget.

“We have to do things better,” said Lasseter.

In a rebuttal to his opponents assertions, Epstein said the public sees “how complex the Select Board really is” and it will take more than “silver bullets” to resolve the issues facing the town. Epstein accused Lasseter of budgetary magical thinking, pointing to his opponent’s contention that current town financial challenges will be solved “with funds waiting for us on Beacon Hill.”

“Anyone with experience knows better,” he said. “We have to work on real solutions” based on research, listening to the public and reliable facts.

“Alleging that the middle and high school is $17 million over budget is not a fact, at all,” Epstein said.

“I urge you to consider that experience counts,” he said.

Belmont Lifts Mask Mandates For Schools, Indoor Public Spaces

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Photo: Masks are no longer required in Belmont schools and at indoor spaces.

Beginning at midnight on Tuesday, March 8, Belmont’s town wide Covid-19 mask mandates for schools and indoor public settings are suspended after both the Select Board and School Committee voted unanimously to accept the recommendation of the Board of Health.

The three bodies, which met and voted in rapid succession Monday evening, effectively ends two years of wearing face coverings which began in March 2020 at the start of the pandemic with a short reprieve in late summer between surges of the coronavirus.

While the mandate has ended, the Health Board “highly recommends” children under the age of five – who can not receive a vaccination – and unvaccinated residents of any age to continue wearing masks. For public school students, masks are no longer be required riding school buses but they will continued are still required to wear masks in the nurses’ offices.

Although the mask mandate has been lifted for indoor spaces, businesses may choose to continue mask use for their establishments.

“Knowing that this decision will be applauded by some and met with disappointment by others, I would ask all of us to respect each other’s choices, and to proactively encourage our children to do the same.,” said John Phelan, Belmont’s Superintendent of Schools, in an email sent out to parents minutes after the Select Board vote.

The Health Board pointed to reduced transmission rates, high vaccination status and wider availability of testing as the main reasons for lifting the requirement. The Health Department’s Lindsey Sharp kicked off its Zoom presentation before more than 60 residents highlighting recent Covid-related data showing Belmont and Middlesex country now in a post-surge environment.

Vaccination rates by class in Belmont public schools

Sharp said Belmont’s average positivity rate for the first week in March at one percent, a significant reduction from the 6.4 percent rate during the surge in December and January while the pooled positivity rate in Belmont schools plummet from 15.3 percent in the second week of January to 2.5 percent one month later. Resident vaccination rates in Belmont increased from 55 percent in October 2021 to 83 percent in February with students hovering at 90 percent for middle and high schoolers and in the 70s for the lower grades.

“The numbers are looking great,” said Sharp.

During the public comment session, the remove-the-mandate residents said the science supported an end of the requirement.

”I clearly see that the time is right to remove the mandate,” said Patrick Whittemore.

Others, such as Nancy Snyder, said “there is no risk to keep (the mandate)” as it makes her and her friends “feel safe.”

The board members were in agreement to remove the mandate while pondering whether it should continue for children under the age of five. Rather than create confusion and noting the very low hospitalization rates, the board said it would “strongly recommend” than require masks for that group.

The board voted to “suspend” the mandate policy rather than striking it so when a time comes during another surge or a new virus emerges the board will be able to reinstate the policy quickly. In addition, the board approved an automatic reintroduction of the mask mandate if Middlesex county returns to a “high” level according to CDC guidelines.

Both the School Committee and Select Board took up the recommendations and voted to accept them. There was one change from the Select Board, rewriting the Health Board’s “automatic” reinstatement of the mask mandate to one where the Select Board would take a vote after reviewing the data, which the Health Board accepted.

Select Board, School Committee Votes Monday To End Town, Schools Mask Mandates After Teachers Union OKs Move

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After a final possible stumbling block was cleared Friday, it’s all but certain that nearly two years of mask mandates for public spaces and school venues in Belmont will end at midnight, Tuesday, March 8 as the three main town bodies responsible for the requirements will, in all likelihood, vote to vacate the measures.

“We are moving forward with the knowledge that the mask mandate will likely be ending on Tuesday,” said Belmont Superintendent John Phelan on Friday, March 4, during the “topping off” ceremony for the middle school section of the new Middle and High School.

Monday’s busy schedule will include:

  • The Board of Health has scheduled at 4:30 p.m. a review, discussion and “possible vote” on face covering mandate in town followed immediately by a similar vote on school mask requirements at 4:40 p.m.
  • The Belmont School Committee will then assemble for a special meeting to discuss any recommendation and then vote on its mask policy at 6 p.m.
  • Finally, the Select Board, in a joint meeting with the Board of Health at 7 p.m., will meet to vote on lifting the town’s mask mandate followed by a vote to reinstate in-person meetings for town boards, commissions and committees.

Belmont’s move to lift its mandates come as government health agencies and many states and municipalities across the country have removed their mask requirements as infection rates due to Covid have fallen while vaccination rates have steadily risen.

Under the new guidelines from the Centers for Disease Control and Prevention issued on Friday, March 4, residents in counties where the community risk determined through a metrics including hospital capacity levels, new cases and hospitalizations is considered “low” residents can do away with masks. Middlesex county, where Belmont is located, is like 90 percent of US counties which are classified as “low.”

This past week, Belmont has seen some of the lowest infection rates since the beginning of the coronavirus in March, 2020. In addition, residential vaccination rates are over 80 percent and 9 our of 10 students are vaccinated in the higher grades.

While Belmont will likely remove the mask mandates on Monday, the action is not coming as a surprise. In the first week of March, the Health Board began reviewing the data used to justify imposing the mask requirement with both the school committee and select board expressing confidence the mandate would be removed.

In fact, the Health Board had called for an “emergency” meeting on Monday Feb. 28 – the day Gov. Baker’s ended the state requirement for masks in school – take a vote on the mandate’s future. But just as quickly as the notice was posted, the meeting was cancelled as it was determined by town officials not to have met the criteria for an “emergency” and thus would violate the state’s 48-hour notice requirement for government meetings.

As the town was moving towards a vote, the school district began working with the Belmont Education Association to prepare for a future mask transition as required by a joint Memorandum of Agreement on Covid-19 protection measure with the existing contract.

After meeting with the School Committee and representatives of the school district on Wednesday, March 2, BEA members two days later approved in near unanimity – there was a single ‘no’ of the more than 70 Unit A members voting – to accept the MOA change. Under the new agreement, educators will not be punished for continuing to wear a mask or seek to keep a safe distance between them and students to lessen possible infection.

Good News For Taxpayers And Tennis Players At New Winn Brook Court

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Photo: The Winn Brook courts will see a fifth court coming by the fall of 2022

The multitude of Belmont’s tennis players – including the Belmont High School squads – received good news on Monday, Feb. 28 when the Select Board heard the town finalized the contract for the construction of a new court at the Winn Brook Fields on Cross Street.

And taxpayers will feel good that the project will return nearly $50,000 to the town’s Community Preservation Committee.

Speaking before the Belmont Select Board, Department of Public Works Director Jay Marcotte said the project was approved for $190,000 at last year’s annual Town Meeting so the high school tennis program will have the minimum of five courts to play varsity matches. And after a request for proposal process beginning in January that attracted four bidders, Marcotte brought the board the low bid from Vermont Recreational Services of Monroe, NH to install the court and perimeter fencing after the end of the school year with ground being broken in July. The court will open in the fall.

“We will absolutely notify the neighborhood prior to construction going on,” said Marcotte.

Marcotte said Vermont is well known by the town as it installed the PQ courts off of Trapelo Road and did partial court work at Grove Street and Winn Brook.

And for taxpayers, Vermont Recreational’s bid is $139,991.

“This is great news and the price came in great which these days. The way construction costs have gone, I always expect then to be higher so the fact it’s lower is awesome,” said Chair Adam Dash as the board approved the low bid unanimously.

A PUBLIC MEETING ON CORRALLING LEAF BLOWERS!! ON TUESDAY, JAN. 25 AT 7 PM!!

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Photo: Leaf blowers will be discussed at a public meeting on Tuesday, Jan. 25, 2022 (Credit: Wolfmann, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons)

The Belmont Select Board returns to the contentious debate on placing limits on what many believe is a necessity and others a scourge of suburban life – leaf blowers.

The board will once again hold a public form on a proposed bylaw to control the use of leaf blowers on Tuesday, Jan. 25 at 7 p.m.

Want to join the fun? Here’s the contact links.

“I’ve had several requests of from people in recent months to revisit the subject,” said Adam Dash, chair of the board. Dash noted the last time the subject came before the members it “sort of yielded a Balkanized response about what to do with anything.”

The pro bylaw side says commercial portable leaf blowers cause pollution beyond their size while destroying quiet mornings and evenings by being so dang loud. The status quo is the gas-driven machines are the most effective method of moving leaves in a town with as many trees as people.

The meeting will help decide if the board will present a bylaw before the annual town meeting in May.

Belmont Records First Covid Death In 9 Months As Positive Cases Spike

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Photo: The latest update of Covid in Belmont

A resident died two week ago due to the Covid-19 virus, the first Belmont victim since March, as the number of positive cases in town and across the nation are approaching all-time highs over the holiday season.

The death occurred during the week of Dec. 10-17, the first fatality linked to the coronavirus since March 19 when two Belmontians succumbed to the virus.

The deaths comes as the number of positive Covid cases have skyrocketed to near record numbers not seen since the worst days of the pandemic in January 2021. Belmont recorded 106 new positive cases in the week ending on Dec. 24, up from 61 in the pervious week. There has been 1,741 confirmed Covid-19 cases in Belmont since the first cases in the pandemic were reported in March 2020. Currently, Belmont and Middlesex County remains at “high risk” for the spread of Covid according to guidelines set by the Centers for Disease Control and Prevention.

“I wish I could say we’re in a better place but we continue to in the wrong direction like much of the states,” said Wesley Chin, Belmont’s Health director, pointing to the Omicron variant of Covid-19 which is sweeping across the country. The Washington Post reported top US health officials warned that the country “will probably see record numbers” of cases as the new variant “spreads rapidly.”

Of the new cases in Belmont, 57 percent are breakthrough which is an infection that occurs to a fully vaccinated person, said Chin. A further 8 percent of those infected involve those who have received a booster, or third, shot.

The one piece of good news during this surge is that hospitalizations of those infected is quite low. “This month we’ve learned of two hospitalizations,” said Chin, with most people being able to be treated at home with mild to moderate symptoms.

“The takeaway message is it seems like the booster shots are helping, so we want to encourage people to get their … shots,” said Chin.

The Health Department is holding a “booster” clinic on Tuesday, Dec. 28 at Beth El Temple Center geared for students between 16 and 17 years old who are now eligible for the shot.

Town Kick-Starts Rink Project With Temporary Building Committee And $250K

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Photo: A conceptional design of the new Belmont Skating Rink by the architectural firm Perkins+Will

With new predictions the current skating rink is on its last legs and with $250,000 of state funds to facilitate building a replacement facility, the Belmont Select Board appointed members of a temporary committee – dubbed the Preliminary Rink Design Committee – to jump start the planning and design of a new rink a good half-a-year before a permanent committee would be named at Town Meeting in May.

The idea behind the interim panel “is to get started on preliminary rink design … and start to execute on the $250,000 that was provided to us by the state,” said Mark Paolillo of the Select Board who sits on the Skating Rink Financing Committee which is formulating a plan to pay for a single sheet of ice that will come with a $20 million price tag which was the estimate from a concept design from Perkins+Will.

The last month has seen the rink project spring to life. That wasn’t the case this past May when town officials convinced resident Alex Corbett to remove a citizen’s petition amendment at Town Meeting to begin the
formal building process by establishing a committee as it was putting the cart before the horse as the town did not have the available money.

But with a committee up and running to derive areas of founding the project and $250,000 on the table, the town has decided to push and push hard on getting the design process underway.

The major move in the comes after Town Facilities Director David Blazon reaffirmed what has been known for more than a decade; the nearly half century old building is within a couple of years from seeing its mechanicals and infrastructure collapse for a final time.

The goal of the temporary committee is to hire an architect to produce a 30 percent design document which defines the major design elements of the project and refine the project’s scope, schedule and budget that the project
design team can commit to delivering to the building committee.

Since a full-time building committee can not be formulated until the town moderator Michael Widmer appoints the members at the annual Town Meeting, the town was facing a six month delay before using the funds earmarked two weeks ago.

“It’s a committee to move this forward with the money we have so it stays on track,” said Select Board Chair Adam Dash. “So rather than lose time between December and May that we can get this [process] moving.”

And the Select Board is striving to have at least a 30 percent design plan completed to present to Town Meeting as a report.

The temporary committee is made up of four members of the Rink Financing Committee and three from the Permanent Building Committee with Pat Brusch as chair. The group includes former Select Board Chair Tom Caputo, youth hockey supporter Frank French, Jr., the School Committee’s Meghan Moriarty, former Belmont High Boys’ Hockey Coach Dante Muzzioli, current Boys’ assistant coach Bill Shea, Steve Sala and former Belmont High Girls coach Mark Haley.

The first meeting of the new temporary committee will take place at 7:30 a.m. on Thursday, Dec. 16 on Zoom.

Belmont Secures $1.1 Million In State American Rescue Plan Funds For Something Extra

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Photo: Monies to help plan for a new library is part of the recently received $1.1 million in state funds.

With thanks to state legislators and town officials, Belmont has received $1.1 million from the state of Massachusetts to fund some of the town’s “extra” expenses that would have been waiting until the next budget cycle.

The source of the funding is from the $5.3 billion the state was allocated from President Biden Administration’s American Rescue Plan Act, the $1.9 trillion funding package to promote recovery from the economic and health effects of the Covid-19 pandemic and the related recession. The $1.1 million is coming from a separate pot of funds than the $7.6 million in ARPA monies distributed as part of the bill’s Coronavirus Local Fiscal Recovery Fund.

“This is funding that the town of Belmont has been able to secure thanks to state Rep. Dave Rogers and state Sen. Will Brownsberger,” Town Administrator Patrice Garvin told the Select Board at its first meeting in December. “This is great news for the town.”

Select Board member Mark Paolillo also thanked Garvin as she started the conversation to find state funds to pay for aspects of the skating rink’s planning and design, leading to this larger allocation.

The funding will be spent on several projects in town outside of the budget:

  • $250,000, the new Belmont Public Library
  • $250,000, the new Belmont skating rink
  • $100,000, economic development
  • $500,000 public housing

The public housing portion includes:

  • $250,000, water and sewer infrastructure improvements at Belmont Village
  • $150,000, improvements at Waverley Oaks
  • $100,000, redevelopment of Sherman Gardens

Interim Regs Places A Wet Blanket On Belmont’s Use Of Fed Covid Rescue Funds

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Photo: Belmont Middle and High School is now considered the source of revenue generating debt, according to the state.

When the details were released of the Biden Administration’s $1.9 trillion COVID relief plan – dubbed the American Rescue Plan Act – signed into law this past March that Belmont would be receiving upwards of $8 million for the town and schools, there was a segment of the population in the Town of Homes that cheered the news, not so much as a fiscal salve to a battered budget but as a political accoutrement.

“We definitely don’t need an override now!” came the clarion call on the No Override Now Facebook page of March 16, as the austerity-based group viewed the community-based bail out as a, albeit, short term solution to the worrying structural deficit facing the town.

The news became a game changer in the override battle, making it easier for many voters sitting on the fence on the proposed $6.4 million override to check the “no” box on the ballot less than a month later.

While town executives and elected officials cautioned at the time it was far too premature to assume the funds were heading into town coffers until there was more clarity of the rules, others were eager to champion – and begin spending – the windfall.

“This money can, in part, be used to offset revenue shortfalls and operating expenses,” proclaimed the No Override Now campaign in ads and opinion articles.

Well, it turns out, maybe not.

Under recently released interim final rules written by the state for allocating ARPA funds by cities and towns, Belmont is facing the prospect of have little to no leeway to use any of the $7.8 million to offset the substantial lost public revenue the town incurred since March 2020.

“What we found was a little troubling … because what we’re showing is no revenue loss based on the state guidelines,” said Town Administrator Patrice Garvin at the Monday, Dec. 6 meeting of the Select Board.

And the reason the state has pulled the ARPA rug from under the town’s feet is located at 221 Concord Ave.

After a careful reading of the rules and regulations, the town’s auditing firm determined that during the tight 18 month window the state is using to calculate lost revenue, the 2018 voter-approved debt exclusion used to finance the building of Belmont’s new Middle and High School, as well as the state’s partial reimbursement of expenses constructing the building is seen by Beacon Hill as a revenue “gain” for the town.

So in the ultimate example of bad timing, while Belmont has shown where revenues had fallen off a cliff, in the eyes of the state which dictates the funding, Belmont was awash in dough during that year-and-a-half reporting period because it borrowed funds to pay for a new school.

As Homer Simpson would put it: “D’uh!”

“We’ve had the issue of a … short-term budget distortion from the high school because it’s such a large number just as Covid hits … seems totally unjust to be counting that as revenue because that’s not what it is,” said Adam Dash, chair of the Select Board.

As the town seeks to have its state and federal legislators attempt a hail Mary to convince the state to reconsider its regulations, the prospect of a revenue shortfall for the upcoming fiscal 2022 budget has become only all too real.

Under the provisions of the ARPA, Belmont’s $7.8 million allocation can be used in one of four ways; pay for Covid-related expenses, make premium payments to essential workers, and invest in water, sewer and broadband infrastructure. It was the fourth “bucket,” the replacement of “lost public sector revenue” caused by the pandemic, which austerity groups and town officials saw as getting plugged into the budget. Just how much of the town’s share can be used in an unrestricted manner is based on a formula provided by the state’s Division of Local Services.

It was this rule making from the state – dictated in the federal law – is when Garvin said she and other municipalities began “hearing rumblings” as state officials began writing the regulations.

“I had been concerned from the beginning … [that] sometimes the state does like to get involved in defining how the money can be expended,” said Garvin. One such red flag from as far back as the first days of summer was how the rule makers first defined as revenue.

Is a debt exclusion a revenue windfall? The state thinks so

“At that point, I decided it was important to get the auditors involvement” and allow them to do a “deep dive” into the town’s revenue figures in regards to the state regulations, said Garvin.

Craig Peacock, a partner with the town’s auditing firm of Powers and Sullivan, told the board that since the summer what the state has deemed eligible for reimbursement “has been a moving target” resulting in attempting to make calculations “a little confusing.”

What Peacock first had to determine the revenues in fiscal 2019 which the feds was using as the base year and compare it to losses in calendar 2020. While the town did show a decrease in its general funds of $1.6 million, there were two unexpected line items which offset that lost revenue.

One is the on-going cost reimbursements building the new school from the Massachusetts School Building Authority, which is paying nearly $85 million of the $295 million project, a significant amount – $24 million – being received in calendar 2020. Even with the MSBA reimbursement figure removed, said Peacock, the state also views the $213 million debt exclusion the town is using to pay for its portion of the building’s cost as yet another source of revenue, with Belmont “collecting” an additional $11.7 million in calendar 2020. Without these items, Peacock said the town by the state’s reckoning did suffer a revenue shortfall during the 18 months.

The end result is while Belmont can use the funds for the three of the four buckets, ARPA funds will not be going into the one ARPA bucket the town most needs to fill. While the town will have $7.6 million to spend – in two $3.8 million segments with the second available next fall – “it has made it much more difficult for us to use it,” said Garvin.

The news didn’t go down well as Select Board Vice Chair Roy Epstein calling the state’s rules an accounting exercise that “frankly makes no sense to me,” pointing out that the reason the town undertook the debt exclusion was to pay for a school which can hardly be seen as a revenue windfall for Belmont.

“I think the treatment of a debt exclusion that are earmarked for particular capital projects to just really seems nonsensical,” said Epstein as Dash questioned whether the federal government understands the New England-concept of debt exclusion which could have been exempted in the ARPA law.

The Select Board’s Mark Paolillo asked Peacock who in state government can the town question how they rationalize school debt and reimbursement of expenses as “revenue.” The answer was less than encouraging.

“We are not aware of any caveat in the interim final rules that would allow us to remove the debt exclusion and we are not aware of any agency that would be willing to review and discuss that because currently it is in the rules”, said Peacock.

As it currently stands, without the ability to replenish the lost public revenue and if there are no big ticket infrastructure projects ready to go into the ground, Peacock said there is a chance Belmont will return a portion of the ARPA funds back to the US Treasury.

If there is a glimmer of hope, the guidance is being written by the state and there are several communities feeling the same pinch by the state’s rules writers, said Peacock.

“As they say, the squeaky wheel gets the grease so I don’t think it ever hurts to try to contact” state legislators, advised Peacock. “I do know other communities that are contacting their state reps who have very similar attributes” that are preventing them from reporting revenue losses and are “trying to change the rules before the final rules become final.”