ATHOL — Several members of the Finance and Warrant Advisory (FWAC) and Capital Programs committees were on hand last week when Town Manager Shaun Suhoski briefed Athol’s Selectboard on a draft proposed budget for the fiscal year that begins July 1. Suhoski laid the foundation for his presentation by providing a brief explanation of how the budget for the current fiscal year was cobbled together.
“Last year, with the COVID onset, we delayed setting the final budget until the fall,” he began. “We operated on one-twelfth budgeting. In consultation with the finance team … we remained in contact with the selectmen and the Finance Committee to really take a conservative approach to fiscal ’21 in the face of that pandemic and very uncertain revenue streams, including a level-funded year for state aid.
“Basically, what we did was, through the agreement of all, and town meeting voters, we held back about a half-million dollars in certified free cash so it would build a balance for the current year and give us some flexibility. That should pay dividends this year in our free cash position.”
Suhoski said temporary furloughs for six part-time and one full-time employees at the library, Town Hall, as well as cuts in the summer recreational program, also helped the town to reduce expenses.
Before projecting how and what to spend in FY22, Suhoski discussed a draft revenue projection of just over $21.8 million, an increase of some $613,000 from FY21. The figure includes a projected 2.5 percent growth in the property tax levy of nearly $346,000, anticipated “new growth” revenues (resulting mainly from business development) of $135,000, an increase in state aid — based on Gov. Charlie Baker’s proposed state budget — of $98,000, and a rebound in meals tax revenues totaling close to $35,000.
“On the spending side,” Suhoski continued, “what you’re going to see is $21.8 million. It’s a bit under that revenue projection — not much, but about $17,000 under the revenue projection.”
He went on by emphasizing the importance of maintaining a robust, but balanced town budget.
“What’s important about this, and the reason I advocate — and I hope the Finance Committee and the Selectboard will agree, and the town meeting voters — we cannot backslide. Once you start backsliding, it becomes a death spiral. We can’t let that happen.
“Athol had come so far,” he stressed. “In the years before I came here — this was not just under my tenure — but almost 10 years ago I believe. All the projects some of you all were working on and plans you had, predated me. I’ve been fortunate — with the rising tide and the team we have on this meeting, and the staff that we have here, and the people of this town — we’ve really come a long way.”
The town manager said one of the highlights of the FY22 budget is that free cash subsidy to balance the current year’s spending package has been eliminated. Nearly $160,000 in free cash was injected into the FY21 budget as a hedge against the likelihood of a dip in revenues due to COVID pandemic.
“It does retain all current staffing and service levels,” Suhoski said of his budget proposal. “It restores the summer recreation funding and beach programming, which we believe we’ll be able to have — and we’ll follow the appropriate protocols.”
In addition, the new budget proposes an increase in stabilization funds.
“More important, or equally important,” he said, “it continues to strengthen our stabilization reserve and, through the capital program and in the free cash plan to the articles that are to be proposed for the (annual town meeting) warrant, it will strengthen our capital stabilization fund as well.
“It offers a responsible bridge as we move past COVID, we’re not out of it yet — we’re still in it — but we are emerging from it. And the economy seems as though it will be able to sustain itself moving forward.
“So, again,” he implored, “let’s keep the progress going; let’s not backslide. Let’s continue the legacy of improvement. I also feel this will provide us with flexibility moving forward.”
In the wake of the presentation, members of the Selectboard, as well as Finance and Warrant Advisory Committee Chair Ken Duffy, expressed general satisfaction with the spending plan.
The FWAC gets its first crack at examining and dissecting the draft budget when it meets Tuesday at 6 p.m. via Zoom.
Greg Vine can be reached at gvineadn@gmail.com