No Increase In Belmont Water, Sewer Rates … Again

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Photo: Water main on Brighton being repaired

The annual adjustment of the Belmont water and sewer rates was no adjustment at all as both will remain unchanged from the previous fiscal year. This marks the third consecutive year for water and fourth for sewer where rates remained flat, said Jay Marcotte, director of the Department of Public Works who announced the report at the Select Board’s virtual meeting held Monday, May 10.

The average Belmont homeowner will see its monthly bill remain at approximately $140 for fiscal 2022 beginning July 1.

“It’s surprisingly good news for the ratepayers. I wasn’t expecting it to be this good,” said Select Board Chair Adam Dash.

The zero rate comes as the Massachusetts Water Resources Authority imposed a whopping 9.7 percent increase in Belmont’s assessment, up from the one percent hike in 2020. “This year my eyes popped out of my head when we got the increase,” said Marcotte, as it represented a $296,000 jump from 2021. The MWRA sewer assessment came in at a more typical 3.6 percent.

As with last year, planned use of retained earnings was used to offset the MWRA increase. “We’ve been purposely drawing down [earnings] to basically stabilize rates and not have any impact to our [customers],” said Marcotte.

Marcotte told the board the DPW will continue its quarter-century water improvement program in which all of Belmont’s pre-1928 cast iron mains – which makes up 42 percent or 38 miles of the town’s total – will be replaced. This year, about 6,970 linear feet of pipe will be removed resulting in 31.4 miles of the pre-1928 mains now replaced with the program 83 percent complete.

On the sewer side of the ledger, the town will replace two existing pump stations and start a new one in the Winn Brook neighborhood while budgeting $450,000 for sewer and storm drain main repairs and upgrades.

In addition, $150,000 from both water and sewer capital will go to the installation of fuel tanks at the DPW Yard.

Public Forum Set To Brainstorm Ideas On Structural Change

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Photo: The event will take place on Thursday, March 4.

“There are no dumb suggestions,” proclaimed the Select Board’s Adam Dash when it comes to Belmont closing the ever-present funding gap created by the town’s structural deficit.

The recently formed Structural Change Impact Group will be holding a virtual public forum on Thursday, March 4, starting at 7 p.m., designed to solicit ideas – smart, dumb and out of the box – from residents, business owners and town employees to reduce expenses, increase revenues and improve town services.

The Public Forum will be held on Zoom https://us02web.zoom.us/j/87116634696
and it will be aired by the Belmont Media Center.

The public forum also will provide the opportunity to learn more about the work of this new group, which has been charged to investigate and recommend a list of potential changes for the town to positively impact the structural deficit challenges the town faces, and improve operational approaches to delivering town services.

Part of this charge is to gather broad input through forums like public meetings. The Structural Change Impact Group wants the community to know that Belmont needs everyone’s ideas to save money, raise funds, and improve our town. All ideas are welcome. All suggestions will be compiled, evaluated, and a final list of recommendations will be presented to the Select Board by the end of the year.

The Structural Change Impact Group also has set up an online portal to collect ideas from those who may not be able to attend a
Forum.

Select Board Approves Contract With New Fire Chief DeStefano

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Photo: David DeStefano, Belmont Fire’s new chief.

It’s official. Belmont has a new fire chief as the Select Board agreed to a contract with David DeStefano at this Feb. 8 meeting.

DeStefano, a battalion chief with the North Providence (RI) Fire Department, was selected by the board at its Jan. 21 meeting, replacing long-time chief David Frizzell.

DeStefano’s contract will be for three years starting March 15, 2021. His starting salary is $152,000. As part of his employment, he must establish primary residency within 15 miles of Belmont’s border in the next six months.

The town will provide DeStefano with an unmarked fire vehicle.

On July 1, 2021, DeStefano will be eligible for a minimum cost of living adjustment (COLA) of 2 percent or a general COLA pay increase for department heads, whichever is greater. On July 1, 2022 and July 1, 2023, he will be eligible for his current base salary plus a COLA minimum of 2 percent or the general COLA pay increase for department heads whichever is greater. There is also a merit increase based on his performance review.

DeStefano will accrue four weeks of vacation and three weeks of sick leave annually along with 12 holidays. He will be offered the normal health, dental and life insurance benefits of all employees of the town.

DeStefano must submit his application for Massachusetts Fire Chief credentials within the first three months of being hired.

It Won’t Be Pretty: Consequences Of A Failed Override Prompts Select Board To Endorse Its Passage

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Photo:

The date: April 6, 2021. The time: 9(-ish) p.m. The location: Belmont Town Hall. Town Clerk Ellen Cushman strolls out from her office to read the results of the annual Town Election. After going through the races for elected positions, she comes to what residents have been waiting for – the decision on the $6.4 million Proposition 2 1/2 override. Cushman clears her throat and reads out the count.

And the measure … fails.

The first question for many people will be: “Now what?”

On Monday, Feb. 8 – just under two month from the above election – the Belmont Select Board and residents were provided an answer to The Day After scenario as Town Administrator Patrice Garvin spelled out the rather dark consequences of a no vote throughout the fiscal year 2022 budget.

“There’s no way to sugar coat it really. They’re all painful which is way we asked for an override,” said Board Chair Roy Epstein.

While Belmont not yet on the level of the four horsemen of fiscal apocalypses, the certainty of cuts in services and personnel as well as still to be determined retreat on school programs, the Select Board unanimously voted to endorse passage of the Proposition 2 1/2 override on the April 6 ballot.

Note: On Thursday, Feb. 11, at 7 p.m., the Warrant Committee is holding a Zoom public meeting on “Understanding the Override Decision” that will present the impact of a yes and no override vote.

After reporting last month how a yes vote on the override would be used by the town and schools. the town proceeded to run a budget exercise on the impact of a negative response by voters. With expenditures of $163 million as opposed to revenues of $157.2 million, the town would need to fill a $5.7 million gap.

Garvin said a little more than a third of the gap would be bridged using an additional $1.9 million from free cash – the last of the reserves not reserved by town policy – and taking $350,000 of the $400,000 OPEB contribution. The remaining $3.45 million would be made up reducing town and school expenditures, 60 percent – or $2.07 million – coming from the schools and 40 percent ($1.38 million) from the town.

On the town side, cuts would come from all departments (see the chart below) as well as removing $500,000 from discretionary capital expenditures that was targeting much needed maintenance and infrastructure repairs.

Cuts to town departments with a negative override vote. (Credit: Town Administrator Office)

Garvin pointed out that long sought after positions such as a social worker for seniors and a new procurement employee to manage the increasingly complex nature of bidding and preparing projects such as the new Middle and High School.

“We really do need someone who has the expertise, who can move through the commissioning process as [the new school building] gets handed over and can run all the town buildings more efficiently,” said Adam Dash, board member. “I fear that if we don’t have that person in place, it will actually cost us more money because the systems won’t be run properly.”

Other departments will see significant reduction in salary and overtime requests while Police, Fire and DPW will see the loss of at least one staff member which will reduce response times for public safety and less work done at town fields and playgrounds.

The board’s decision to endorse a yes vote was expected, “especially in light of these pretty draconian and grim looking cuts. It’s going to be a difficult situation if it doesn’t pass,” said Dash.

While the school cuts will be announced on Tuesday, Belmont Superintendent John Phelan told the Financial Task Force on Monday morning that the schools would loss the 10.6 full-time equivalent (FTE) positions they had planned to add in 2022 as well as 15 additional staff members and cuts in many line items.

If the April override fails, the town is looking at a second override for the Town Election in 2022. Quick calculations by the Financial Task Force on Monday morning indicated that the subsequent override would be in the range of $10.8 million over three years, give or take a million either way.

Paolillo Seeks A Fourth Act To Help Beat Back A Pair Of Fiscal Challenges

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Photo: Mark Paolillo

Mark Paolillo will try to prove – in the political sense – Thomas Wolfe wrong: You can return home to elected office.

Paolillo has taken out nomination papers for a return to the Select Board (it was called the Board of Selectmen when he last served) as he will seek a fourth three-year-term after current board member Tom Caputo announced he would not seek re-election, believing he has the background and experience to help Belmont beat back the twin adversaries of a long-term structural deficit and the budgetary impact of COVID-19.

A life-time Belmontian, Paolillo served three consecutive stints on the board beginning in 2010 when he topped a three person field with 45 percent of the vote. He decided in 2019 that nine years was plenty representing Belmont residents.

“Nine years is a long time and it’s time to move on,” he said at the time.

Not that Paolillo had completely retreated from local goverance. In fact, he was been busy around town hall (and on Zoom calls) since leaving the board, most notably serving on the influential Financial Task Force II – which last month recommended a $6.4 million override to be placed on the April 6 town election ballot – and as chair of the police chief search committee.

But when he heard Caputo was not running for a second term, Paolillo decided to place his hat once again into the ring. As Paolillo tells it, he wasn’t considering running this cycle.

“No, not at all. I was hoping Tom would run for re-election and told him that. I would have endorsed his candidacy,” he told the Belmontonian. In fact, he was attempting to recruit people he knew who might be interested in the job.

“When I learned about Tom’s plan prior to his announcement, I reached out to some individuals that have  strong financial and leadership skills that would bring diversity to the Board about running. They are not interested at this time.”

With no takers, Paolillo has launched a campaign with an eye on easing the pressures on the town finances.

“We are in a fiscal crisis as a community. I have the institutional knowledge, deep experience and financial skills to help our town navigate thru it,” said Paolillo, who pointed to three major issues that must be tackled.

“Clearly we are in a midst of a pandemic, so the health and safety of our residents is of paramount concern. [Belmont is] in a financial crisis which needs to be addressed and dealt with so we need to focus on long term financial and structural reform,” he said.

“And we need to work more closely with the School Committee and school administration to support their efforts in getting our students back on campus and learning in the classroom,” Paolillo noted.

Belmont’s FY’22 Property Tax Rate Jumps To $11.55 per $1,000 Driven By New School Borrowing

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Photo: The second $100 million borrowing for the new Middle and High School has driven the property tax rate higher.

Belmont taxpayers will see their property tax rate increase by four bits and a nickel as the Board of Assessors recommended a rate for fiscal year 2022 during its annual presentation before the Select Board on Thursday morning, Dec. 10.

“This [coming fiscal] year the tax rate will be going up 55 cents … from $11 to $11.55,” Reardon told the board. According to the assessors, the impact on a residential property valued at $1,285,000 – what the average single family house in Belmont is worth – will be $706. The annual tax bill for that average house comes out to $14,842.

While property values calculated by the assessors cooled off from the past years of double digit increases – this year single families are up 3 percent (as opposed to 18 percent last year), condos 5 percent, two and three families increased by 4 percent and commercial property was flat – the biggest impact on property taxes is the second phase of borrowing for the Middle and High School project. The new $100 million borrowing added 56 cents to the tax bill, said Reardon.

As in past years, the assessors recommended and the selectmen agreed to a single tax classification and no real estate exemptions. Reardon said Belmont does not have anywhere near the amount of commercial and industrial space (at must be least a minimum of 30 percent, said Reardon) to creating separate tax rates for residential and commercial properties. Belmont’s commercial base is approximately four percent of the total real estate inventory.

As for exemptions, the administrative costs to run such a program would be prohibitive for a revenue neutral imitative. And as with the split rate, the majority of taxpayers would see little in reductions or increases in their tax bill.

The Board of Assessors will officially set the fiscal year ‘22 property tax rate on Friday, Dec. 11.

January Cardboard Event Will Cost You To Drop Off The Holiday Packaging

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Photo: Cardboard collection day is coming in January.

For the first time since it began two years ago, the next town cardboard event will have something extra: a $5 fee per resident will be required during the next drop off day coming after the holidays in early January.

While his fellow board members believe that including a fee will sow confusion and hard feelings among residents, Board Chair Roy Epstein is so convinced the fee based drop off will be a success, he pledged to make up any deficit out of his own pocket.

The cardboard event – which will be the first since June – will take place on Saturday, Jan. 9, at the Department of Public Works Yard at the end of C Street.

Jay Marcotte, Department of Public Works director, restated his opinion of two weeks previous on Nov. 9, that the only practical way to hold the drop off session is on the weekend with a fee to offset the $2,000 the event will cost the town.

“I would never as the department head agree to … getting rid of planned overtime with the expectation that I would still going to offer that service,” said Marcotte, who said residents are increasingly calling his office on when the next cardboard collection day will take place.

(Cardboard drop offs is a relatively new service, starting after the introduction of automated trash pickup in 2018.)

While suggestions were made to have the service during the workweek, “I don’t see how we would be able to safely conduct an event with a couple hundred cars … blocking up Waverly and C streets,” said Marcotte, noting he would be required to take a crew off of their normal work schedule to run the event.

Board member Tom Caputo countered the need for a fee drop off saying imposing onto residents a new cost would simply create confusion and frustration among the citizenry. Epstein felt that his colleague was “underestimating the ability of our residents to deal with something as simple as a cardboard program.”

“We’re talking about 200 or 300 households out of 10,000 [in Belmont],” he said. “It’s a convenience for a very small number of people in the scheme of things,” Epstein said.

The Select Board’s Adam Dash pondered if holding a potentially money losing fee-based event was worth doing in the first place. At $5 a pop, it’s unlikely the town will see the 300 vehicles needed to break even, said Dash.

“I’ll tell you what, Adam, I personally will make up the shortfall. You can quote me on that,” said Epstein.

What all side did agree on was the need for advanced notice to residents via the media and town signage on the new fee.

“We need to be clear why this is ,,, an unusual year and this is an unusual situation and we apologize” for requiring a fee, said Dash.

The DPW will also set up a pre-payment plan using the town’s Recreation Department website – which can accept credit and debit cards – along with information for contact tracing.

That day payments will also be accepted but it will take longer to process those residents due to the information they’ll need to write out the information required by the Health Department.

Record Free Cash Level Likely To Lower Override Dollar Ask

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Photo: Free cash isn’t free

The holidays came two months early to Belmont Town Hall as the Massachusetts Department of Revenue certified the town’s fiscal year 2020 free cash account – officially known as the Unreserved Fund Balance – at $11,239,464, a record high level for the budget line.

“The free cash amount this year is good news all around. The town was diligent in its conservative practices and we are seeing the fruits of our efforts,” Town Administrator Patrice Garvin told the Belmontonian.

Free cash is made up of receipts – taxes and fees – in excess of revenue estimates along with unspent amounts in departmental budget line items known as “turn backs” for the previous fiscal year, plus any unspent free cash from the previous year. Before it can be used, free cash must be certified by the state.

The size of this fiscal year’s amount dwarfs the average account over the past decade ranging from $5 to $7 million. The $11.2 million outpaced last fiscal year’s robust $8.1 million in free cash which allowed the town to balance the fiscal year ’19 budget without the need of a Prop. 2 1/2 override.

“I’m pleased to see that the town and school’s efforts earlier this year to proactively freeze hiring and curtail spending, combined with our focus on maximizing federal reimbursement for COVID expenses, has substantially improved our free cash position,” said Select Board Chair Tom Caputo.

It comes as no surprise that both town and select board are viewing to use some of this fiscal year’s bounty to reduce the $12.5 million the town is seeking in a Prop 2 1/2 override which will be on the ballot at the annual Town Election set for April 6.

“While this healthy free cash balance doesn’t address the structural deficit that we will confront in the coming fiscal years, it does give Belmont some more flexibility as we look to an April override,” said Caputo. “The free cash may be available to help stabilize the budget for a few years and reduce the size of the required override.”

And Garvin isn’t wasting any time presenting scenarios how the fund can be used, going before the Financial Task Force II on Friday, Nov. 6 meeting and presenting a preliminary free cash plan to the Select Board on Monday, Nov. 9.

“We are currently running models to see what can be used from free cash to lower the override request,” said Garvin.

Yet it’s unlikely the select board will attempt cut the lion’s share of the override with free cash. For more than a decade, town policy is to maintain a level of free cash that will help secure the town’s Triple-A bond rating. In 2018, that goal was set at four percent of the current fiscal year’s General Fund Revenue Budget.

“I will tell you that I have had many conversations regarding the town’s Undesignated Fund Balance, and its impact on the bond rating. This work is ongoing and answers are forthcoming,” said Garvin.

Four factors for free cash

The increase in free cash reflects the town’s conservative budgeting practices and our response to managing the financial impacts created by COVID-19, such as controlling spending, freezing hiring and maximizing available Federal and State reimbursements.

“This level of free cash gives the town greater flexibility to reduce an operating override request, without reducing services,” said the press release announcing the record free cash level.

The factors leading to this favorable result include:

  • Proactive management of the Town and School hiring and spending at the end of Fiscal Year ’20
  • COVID-19 slowdowns in spending, resulting in large turn backs (underspent budgets) from departments;
  • Federal Assistance for COVID-19 through the Coronavirus Aid, Relief, and Economic Security(CARES) Act Reimbursement for Town and School Expenses, of approximately $1 million;
  • Accounting adjustments for prepaid property taxes in prior fiscal year.

The line items contributing to the Free Cash balance are:

ITEMAMOUNT
FY’19 Rollover Unreserved Fund Balance (Free Cash)$425,160
Prior Year Reserve for Subsequent Taxes (Prepay that should have been reserved last year)$2,151,248
Reserve Prior year bond premium$18,000
Reverse prior year reserve for continued appropriations$1,711
Tax Deferral Redeemed$274,899
Tax Title Redeemed$489,099
Estimated Receipts Surplus (Revenue)$1,430,258
Turnbacks from Departments$6,405,517
Prior Year Fund Deficits/etc.$43,567
CERTIFIED FREE CASH as of July 1, 2020$11,239,464

The line items in the table are explained in more detail as follows:

FY19 Rollover Unreserved Fund Balance (Free Cash)

The FY20 budget included a high use of Free Cash. This drawdown reduced the FY19 Unreserved Fund Balance (Free Cash) to $2.4 million. A subsequent review of our accounting revealed the need for two additional adjustments related to classification of property tax and water and sewer revenues. These were one-time adjustments. The effect of the adjustments reduced the FY19 rollover to $425,165.

Prior Year Reserve for Subsequent Taxes

Tax payments by residents sometimes cross over the fiscal year, which begins on July 1. $2.1 million of FY20 Free Cash represents tax revenue that was prepaid and not estimated in the FY20 Fiscal Year. This $2.1 million should have been part of the FY19 Certified Free Cash.

Tax Deferral Redeemed

The Town has tax deferment programs that delay the collection of taxes. Free Cash is credited for the taxes in the Fiscal Year they are actually paid. For FY20 $274,898 of tax deferments were collected.

Tax Title Redeemed

Free Cash is also increased when delinquent taxes are finally paid. The Town Treasurer works diligently to collect delinquent taxes.

Estimated Receipts Surplus (Revenue)

The Town budget estimates revenue receipts for the year. Actual FY20 revenue exceeded the estimate by $1.4 million. Most of this excess can be attributed to investment income on amounts borrowed for the new middle and high school. The Town saw a reduction is some local receipts due to COVID-19, but the investment income resulted in a surplus.

Turnbacks from Departments

Turnbacks, underspent department budgets, returned to Free Cash, totaling $6.4 million are the largest contributor to the increase in FY20 Free Cash. This amount almost doubled from the previous year. Turnbacks can be generated by vacancies in positions, and spending less on supplies and services. COVID-19 is the main explanation for the FY20 turnbacks. The Town realized in March that the pandemic would significantly impact revenues and wanted to make sure we capitalized on every dollar. The Town was also mindful of the budgetary challenges and the potential need for an operating override. We started to slow down spending beginning in March and April. The Select Board imposed a hiring and spending freeze for May and June. Also, the COVID-19 CARES Act reimbursement enabled Belmont to receive reimbursement of over $1 million for Town expenses associated with COVID-19.

Prior Year Fund Deficits/etc.

$43,567 remains of Prior Year Fund Deficits, which are created by not expending the entire amount of available funds.

Town Adminstrator Re-Ups ‘Til 2024 With New Contract

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Photo: Patrice Garvin

With enthusiastic backing from the Bemont Select Board, Town Administrator Patrice Garvin will be sticking around Town Hall for a few more years.

The town’s chief administrative officer was offered a new three-year contract commencing Jan. 15, 2021 at the Select Board’s Monday, Oct. 19 meeting. The agreement came after a month-long review process and negotiations during which the Chelmsford resident received praise for her resourcefulness, work ethic, and organizational skills from the three-member board.

“You could not put more effort into this job and I think she is as conscientious and as smart as they come doing this type of work,” said Board Chair Roy Epstein.

Garvin was sworn in as Belmont’s first female town administrator in Jan. 16, 2018 after a long search to find a replacement for David Kale, who served for four years.

Under the new contract, Garvins’s base pay will increase from her current $181,778.69 to $190,500 on July 1, 2021. Garvin will receive annual increases of a minimum two percent or the general pay increase for department heads, which ever is greatest.

In addition, board will hold annual performance reviews on May 1 wih possible merit increases to the base salary. As part of the performance review, Garvin and the Select Board will define the goals for the next fiscal year that they determine necessary for the Town, and the Board shall further establish a relative priority among those goals.

In her benefits package, Garvin will see her annual vacation leave increase from four to five weeks and she’ll have the standard 12 holidays including a “floating holiday” with pay to be used at any time during the calendar year. And effective July 1, 2021, the Garvin will be allowed to sell back to the town each year a maximum of 80 hours of vacation time. The town will make a $625 per month car allowance, which will be taxable.

Select Board Withdraws Civil Service Article Due To ‘Technical Error’; Others See Folding A Losing Position

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Photo: Roy Epstein, Chair of the Select Board

In a surprise that no one saw coming, the Belmont Select Board voted unanimously to withdraw its controversial article removing civil service for Belmont’s Police and Fire departments mere minutes before it was to be presented before a contentious Special Town Meeting on Wednesday, Sept. 23.

Roy Epstein, Select Board chair, told the members the reason for the removal of the article was due to a “technical error” involving rank and file members taking civil service tests for promotions in the coming months.

“I think this sort of last minute change is one that forces our hand in this case. And I would say a postponement at this stage is certainly the prudent approach,” said Tom Caputo of the Select Board.

Because the article was never read into the warrant, there would be no debate and discussion by the Town Meeting members so Town Moderator Mike Widmer quickly dissolved the assembly as the article was the final item on the warrant.

The withdrawal of Article 10 removed what many predicted to be a heated debate on the future of civil service in Belmont.

Supporters of ending civil service, which included town officials, Select Board and the leaders of both fire and police, contend the town would see significant cost savings by ending a 105-year-old arcane system for hiring and promotions, replacing it with an efficiently run locally-focused practice.

Opponents made up of the rank and file of Belmont Fire and Police and resident supporters ask why throw out the baby with the bathwater as changes to civil service – such as altering age limits and increasing diversity in the number of candidates – can be made by changes to the existing language of the agreement. Several Town Meeting Members also questioned the validity of the supposed financial savings with such a move.

Paul Roberts (Pct. 8), a vocal critic of the town’s and Select Board’s tactics said Wednesday night’s board vote had more to do with folding from a losing position.

“My belief is that [the Select Board] did some hasty vote counting  and decided to turn back and live to fight another day. Overall, I think it reflects a haphazard effort all around on Article 10,” he said.

During a meeting of the Select Board that occurred during a break after the Special Town Meeting approved Article 9, Epstein said the board was informed late in the afternoon that Article 10 included a “drafting error” which involved setting the effect date of March 1, 2021 to end civil service protection. It was also assumed this date would protect the interests of police and fire department personnel who were taking civil service promotional exams this fall.

“And we wanted them to have full civil service protection in their new position. And that was always our intent,” said Epstein.

But when the article was reviewed, it was determined that March 1 “was not sufficient,” said Epstein. Because the results of the civil service exams could take longer than previously thought, the board was advised that July 1, 2021 was a more appropriate date to protect any future promotions.

“The idea was not to cause a problem for anyone or to be unfair to anyone who was studying for an exam and then pull the rug from under them by yanking civil service before they had a chance to actually take the test and get the results,” said the Select Board’s Adam Dash.

With the new effective date for leaving civil service being pushed back well passed the scheduled date for the annual Town Meeting in early May 2021, the board decided to allow the members to vote on the article in the coming year.

“Patrice [Garvin, the town administrator] and I recognized if it’s going to be as late as July 1, 2021, we may as well withdraw this article tonight and then we’ll see where we’re at in the spring regarding civil service,” said Epstein.

“We don’t want to do something that did not reflect our true intention. And at this late date there was no cure that other than to withdraw the article,” he said.

Roberts provided his own advice to the those supporting the end of Civil Service in Belmont.

“It is my hope that the Select Board use this extra time to properly study the issue, learn from the experience of other communities and – if they intend to bring this forward again – do so with a plan that addresses the issues raised by our public safety professionals and Town Meeting members. A Town Meeting vote should be the last step in the process, not the first,” said Roberts.