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Date: 2/14/2023
MONSON – A joint meeting of the Monson Select Board and Finance Committee took place on Feb. 6 to look over revenue projections for fiscal year 2024 (FY24).
Finance Director Jamie Farnum led the meeting and noted that all figures shared are only estimates as it is still early and will change as time goes on.
She began with the first amount of $16.5 million – the levy limit – which is 2.5 percent. Farnum explained that this is the maximum amount of money a town can levy in a given fiscal year and is based on the prior fiscal year levy limit plus 2.5 percent and then the new growth factor.
She went on to explain the debt exclusions that the town of Monson currently has. “The debt exclusions are voted on at Town Meeting and then at town election and it’s for a temporary period of time – just for the lifetime of the loan,” said Farnum. Currently, the Granite Valley Middle School debt exclusion is $190,412. Farnum noted that the final payment for that is in FY24 so the debt will be rolling off. She added that a payment was received from the Massachusetts School Building Authority to be used toward the debt.
The high school debt rolled off in FY22 so there is no debt payment in FY23 or FY24.
The debt that did come on in FY23 was the Quarry Hill Community School roof. Farnum noted that it came in “much under” the $5.1 million so they will vote to rescind some of that authorization to borrow.
The last debt exclusion is for 110 Main St. – the Monson Town Offices building – which will have its final payment in FY37.
Farnum explained that this is all the debt they have above and beyond the levy limit, while the rest of the debt is within their capacity. She said some capital projects were bonded within their capacity and did not require a debt exclusion.
Farnum shared a pie graph with the Select Board and Finance Committee to show tax percentages. She explained that the property taxes are at 61 percent, state aid is at $9 million, about $1.4 million is local receipts and other sources is $664,000 – indirect costs and then other available funds from free cash, ambulance receipts, cemetery receipts or Board of Assessors stabilization.
For new growth, Farnum shared another chart. She said there was a peak in FY23 with a growth of $378,000. She estimates it will be higher in FY24 and will talk with the assessors to adjust this number as time goes on.
Available funds will be worked on throughout the budget season.
Farnum noted, “With our financial reserve funds we did open the capital Memorial Hall and Fire Station stabilizations. The general stabilization account has about $1.3 million.”
In the towns financial reserve policies, it states it should be between 10 and 15 percent. The town is currently at 11.5 percent.
Farnum shared that the total revenue is $29.8 million. The overlay account – what to exempt for the year – is $155,000.
Total expenses for FY24 are almost $1.8 million and available funds without any changes is about $430,000.