Budget plan carries increase; Morgado points out challenges.

Byline: Elaine Thompson 

SHREWSBURY - Town Manager Daniel J. Morgado has filed a preliminary fiscal 2009 operating budget totaling $93,630,197, an increase of 7.89 percent over this fiscal year's budget.

However, the currently recommended total spending plan for the town for fiscal 2009, $101,177,734 - which includes the operating budget; a capital budget of $1 million; local, county and state charges of $2 million; and upcoming town meeting warrant articles totaling $3.5 million - is more than $4 million out of balance.

"This budget filing is clearly in need of a tremendous amount of work, but can serve as a basis to begin discussion as to how we will approach the fiscal challenges facing this community in fiscal year 2009," Mr. Morgado wrote in his letter to the Board of Selectmen and Finance Committee. "... I plan to close the gap during the budget deliberation process by adjusting revenue and/or by making additional reductions in the spending recommended."

Mr. Morgado pointed out that similar to most communities, a lack of funding resources continues to make it difficult for the town to keep pace with the community's service needs. He said to help fund the fiscal 2009 budget, it is necessary to use $3.5 million in free cash, which is $1 million more than what was used for the current operating budget. As of July 1, the town had $4,850,038 in free cash. He also expects to use all the allowed tax levy.

"While we continue to provide excellent service to our residents, our staff is wearing thin, service levels are not keeping pace with demand and there is continuing degrading of some of our facilities and public works infrastructure," he explained. Maintenance of sidewalks is one of the areas that has not kept up, he said.

Except for the police and fire departments, which each has added 14 staff, the number of town employees is less than in FY 08. The town, however, experienced a 31 percent increase in population from 1990 to 2000.

Residents, however, do receive great value for their taxes and continue to have the lowest average single-family residential tax bill of any town in the area, Mr. Morgado noted. In FY 07, Shrewsbury's average single-family residential tax bill was $3,598, compared with $3,854 in Grafton, $4,717 in Boylston, $5,355 in Northboro, $6,198 in Westboro, and $7,289 in Southboro.

Mr. Morgado said one of the many financial questions for this budget season and beyond is whether residents can be expected to pay higher residential tax bills to help operate the town, since they have traditionally paid a lower rate than most residents throughout the state.

Budgets submitted by department heads totaled $727,392 more than what Mr. Morgado is currently recommending. The Schools have filed a preliminary budget of $46,882,724, up 9.71 percent over the current $42,733,949 budget. Mr. Margado's recommendation is currently the same. But he said that after the School Committee finalizes its proposed budget, he will make his recommendation.

"I am carrying this number as a means to file this budget, but in no way do I believe this community can fund such a large increase based on the currently available revenue stream," he wrote in his report.

Mr. Morgado is recommending only one additional position, a junior civil engineer to be shared by the water and sewer departments. He said the position is needed to work on several water and sewer improvement projects that are planned. All other personnel requests were deleted in light of the current budget concerns.

The Finance Committee began its fiscal 2009 budget deliberations Saturday morning with budget presentations from individual departments. Remaining department heads will present their budgets Saturday at 9 a.m.

The remaining budget schedule is the following. All the meetings except for the annual town meeting will be held in the Selectmen's meeting room in the Town Hall.

March 5 at 7 p.m.: School Committee makes initial budget presentation to FinCom and Board of Selectmen.

March 6 at 7 p.m.: (tentatively scheduled) Ongoing budget discussions.

March 27 at 7 p.m.: School Committee makes formal budget presentation. FinCom begins annual town meeting warrant review.

April 3 at 7 p.m.: Formal public hearing on budget and town meeting warrant.

April 7 at 7 p.m.: Joint meeting with selectmen.

April 10 at 7 p.m.: FinCom completes budget and warrant review.

May 15 at 7 p.m.: Pre-town meeting. FinCom continues deliberation on budget and warrant.

May 19 at 7 p.m.: Annual town meeting at Oak Middle School.

ART: CHART

CUTLINE: Finance Committee FY 2009 Budget Meeting Schedule

PHOTOG: T&G Staff