Belmont To Create Task Force on Town's Revenue 'Problem'

Belmont town and school officials will work together to form a task force with a mission to analyze the town's financial outlook to determine the next best steps the town will need to undertake to support a sustainable level of needed services, said Belmont Town Administrator David Kale. 

Kale broke the news before 50 residents and town officials Thursday, May 30 at the annual Town Meeting Budget Preview held at the Beech Street Center.

"We are creating a task force on financial planning to look at long-term revenue and expenditures," said Kale, as he discussed the coming fiscal year's town budget which has reached $91.7 million.

In his presentation, Kale said the town was able to meet its budgetary obligations – the budget increased by a "modest" nearly three percent – by removing about $2 million of the budget in "free" cash, the same amount expended in fiscal 13, last year.

"We need to be prudent with unreserved funds. It needs to be replenished," said Kale.

"Free cash is not free," said Kale.

He warned that using the money – which made up a significant 2.2 percent of revenue – while not refilling the account will require the town to restrict future expenditures or find other revenue sources.

Yet Kale pointed out that Belmont – a community dominated by residential housing – has very little room to increase the revenue side of the budget; the town is at its Proposition 2 1/2 levy limit and raised only an additional $1.7 million this year in property taxes. New growth – which is outside the levy limit – increased town coffers by only $500,000.

"It's tough increasing revenue," said Kale, noting that 81 percent of revenue already comes from the property tax while 8.6 percent is received in state aid.

Part of the task force's mission, said Kale, is to determine if Belmont has "a structural revenue problem" and how the town can plan to meet department requests and expected capital projects under these conditions.

Since the beginning of the year, both Mark Paolillo, chairman of the Belmont Board of Selectmen, and Belmont School Superintendent Dr. Thomas Kingston have publicly stated residents should be prepared to discuss a possible Proposition 2 1/2 override – possibly in 2014 – to meet the demands for services.

One event could delay a special override vote: if the Cushing Village multi-use project is approved for a special permit by the Planning Board and it begins construction this year, the town could see a one-time influx of nearly $2 million in fees and payments from the developer.