By DAN TOMASELLO
LYNNFIELD — Town Administrator Rob Dolan unveiled the proposed operating and capital budgets for fiscal year 2023 during the Select Board’s March 28 meeting.
Dolan said the proposed $62,827,639 operating budget for FY23 represents a 3.3 percent increase over FY22’s $60,843,554 spending plan.
“This budget reflects the priorities of the Select Board and the community as a whole,” said Dolan. “It is a modest increase that reflects fixed costs and upcoming contract negotiations.”
There are no new positions included in the FY23 operating budget. Police Chief Nick Secatore requested a full-time patrolman-detective position and Acting Library Director Abigail Porter sought a full-time communications/IT librarian, but Dolan did not sign off on those requests. He did approve Porter’s request to increase the hours for the Saturday children’s staff librarian from seven hours to 11 hours per week.
Dolan is projecting property tax revenue will be increasing by $1,583,521 in FY23, which will encompass $48,924,354 of the town’s operating budget. He is estimating new growth will be $400,000.
“Lynnfield is a bedroom community outside of MarketStreet,” said Dolan. “We rely on homeowners to maintain our beautiful town. Since I began my tenure as town administrator in 2018, we have said that the spending of the past has to end because new growth generated from MarketStreet was already incorporated into our budgetary system. We are now back to pre-MarketStreet levels. I believe we have managed our low new growth numbers and, at the same time, we can still improve this community with limited revenue.”
Dolan is projecting that the town will be receiving a $581,946 increase in state aid, representing a 10.12 percent hike.
“I believe that the Commonwealth of Massachusetts really guided the state from a financial standpoint in a solid and profound way during COVID,” said Dolan. “As a result, we will be receiving the highest amount of state aid since 2009. We are looking at an increase of almost $600,000 in state aid, which is predominately for education. I think the state isn’t done yet in terms of its commitment toward local aid.”
Dolan has budgeted a $125,000 increase in local receipts in FY23, totaling $5.2 million. He noted that local receipts include fees, permits, licenses, motor vehicle excise taxes and the meals’ tax.
“Vehicle excise taxes make up 50 percent of local receipts,” said Dolan. “Although we are seeing challenges with inflation, people are buying cars and families are going out to eat. Building permits have never been higher, which means people are investing in their homes. I think there will be a slow creep up of revenues that were lost during COVID.”
Dolan is projecting a 4 percent increase in health insurance costs from the Group Insurance Commission, which equals a $274,386 spike.
“Since the town joined the GIC, the average increase for health insurance is 3.9 percent,” said Dolan. “Before Lynnfield joined the GIC, we were budgeting between 9 and 14 percent.”
Dolan said the School Department will be receiving a $28,515,911 spending plan in FY23, which represents a 3.5 percent increase over FY22’s $27,551,605 operating budget.
“I think we have a solid budget for our schools,” said Dolan. “It is not only fiscally responsible, but it meets the complex post-COVID needs of students.”
Dolan said the DPW’s rubbish collection costs will be increasing 21.7 percent in FY23, totaling $1,150,000.
“Although we have a bump this year, it will steadily go down,” said Dolan. “In the trash and recycling world that we live in right now, the town got the best possible deal.”
Dolan is projecting pension costs will be increasing 9.4 percent, totaling $3,445,513.
The town administrator is also recommending that $150,000 be budgeted for the town’s Stabilization Fund. He recommended that $50,000 be allocated to the Capital Facilities Maintenance Fund. He also proposed appropriating $100,000 for the Other Post-Employment Benefits (OPEB) Trust.
Capital budget
After Dolan gave an overview of the proposed FY23 operating budget, he discussed the proposed $2,174,851 capital budget.
“We have been able to say yes to mostly everything,” said Dolan.
Dolan has budgeted $550,000 for the DPW’s road and sidewalk construction program. He said $500,000 will be spent on road construction while $50,000 will be used for sidewalks.
“We will be making the largest investment in streets and sidewalks that the town has ever made,” said Dolan. “After the town receives Chapter 90 funds from the state, it is going to be over $1 million.”
Select Board member Phil Crawford was pleased that Dolan budgeted $550,000 for road and sidewalk construction.
Dolan said the capital budget includes $225,000 for three Ford F550 dump trucks for the DPW.
“We will be developing a needs assessment for all of the town’s vehicles so that we can get on a proper schedule for purchasing new ones,” said Dolan.
Dolan has also budgeted $100,000 for drainage improvements. He budgeted $83,000 for the fourth year of the Municipal Separate Sewer Systems Permit (MS4) for discharged stormwater that is mandated by the Environmental Protection Agency.
The TA recommended that $25,000 be spent to treat algae at Pillings Pond. He also budgeted $47,500 for a Ford Utility Explorer police cruiser.
Dolan has budgeted $95,000 to build dormitory areas at Fire Headquarters. He also proposed that $168,906 be spent to purchase rough-cut and fairway mowers for the town’s two golf courses. He noted that the Golf Enterprise Account will be funding the mowers’ purchase.
Similar to previous fiscal years, Dolan said the School Department will be receiving a $250,000 capital budget that will be used to purchase technology and curriculum materials.
Dolan also signed off on the Planning Board’s request for $10,000, which will be used to help develop a new Master Plan.
Board backs spending plans
Crawford expressed his support for the proposed operating budget and capital budgets for FY23.
“I am very happy with the way the budget is going,” said Crawford. “I am happy we are able to add to the town’s reserves. Ten to 15 years ago, we needed those reserves and we used all of them. We have spent the last 12 years building them back up just in case the economy turns the wrong way.”
Select Board member Joe Connell thanked Dolan and the town’s department heads for working collaboratively to develop the FY23 operating and capital budgets.
“I want to thank Rob and all of the department heads for doing the job they do every single day,” said Connell. “We are the gold standard for how to run a business.”
Select Board Chairman Dick Dalton commended Dolan and Assistant Town Administrator Bob Curtin for assembling an “effective and competent management team.”
“It’s a pleasure working with all of the department heads,” said Dalton. “I know budgeting can be challenging and frustrating, but we get through it. I think at the end of the day, we have come up with a budget that will serve the community well and is fiscally responsible.”
After the discussion, the Select Board approved the proposed FY23 operating and capital budgets.