Dedham in Position to Comfortably Mitigate Tax Increases

Dedham is in a position to mitigate tax increases over the next several years due to the financially conservative approach utilized by town budgeters, the Board of Selectman announced in a statement last week.

As the economy recovered, revenues were higher and expenses were lower than budgeted from 2013 through 2015, according to town officials.

Dedham’s surplus, referred to as “Free Cash”, has historically been in the range of $2,000,000 to $4,000,000 per year. The money has been used for capital improvements (such as infrastructure) and building a rainy day fund, called the General Purpose Stabilization Fund, as approved by Town Meeting.

Town officials estimate the current accumulated surplus to be about $14,000,000. The exact amount will be certified by the state Department of Revenue by December, officials said.

The Board feels strongly that a significant portion of the Free Cash should be used to reduce property taxes over the next few years, while continuing to be prudent about capital needs.

Selectmen recently voted to support the action taken by the Board of Assessors on October 19, that uses $1.8 million to offset this year’s tax rate. Town Meeting will be voting on this in Article 1.

In the months ahead, there will be opportunities for the public to provide comments to the Board and we are hopeful to engage in a dialogue with residents about the Town’s financial situation.