Despite difficult financial circumstances, the Warrant Committee proposed a fiscal 2005 budget to the April 2004 Town Meeting that included only limited reductions in services in certain departments and selected marginal improvements in other areas, most notably schools. The 2005 budget, which was accepted by Town Meeting as proposed, included a $1.5 million or 2.3 percent increase in spending, or a slightly higher 2.9 percent rise after adjusting for a reduction in debt service of approximately $300,000.
The basic dilemma confronting Belmont, and most other local communities, is that year-to-year expenditures are growing at a greater rate than year-to-year revenues. Belmont depends on property taxes for almost 80 percent of its revenues. Proposition 2½ limits annual increases in total property taxes to 2½ percent plus any growth from development.
During most of the 1990s major increases in state aid allowed the Town to balance its budget without program cuts. However, the state’s fiscal crisis led to a $1.2 million or 17.5 percent reduction in state aid to Belmont in fiscal 2004 and only a tiny increase in fiscal 2005. Belmont will likely have to contend with close to level state aid for the foreseeable future.
Largely fixed costs such as health care are growing much faster than inflation, which puts enormous strain on the rest of the budget and on basic programs and services. Employee salaries and benefits – for teachers, police, fire and others – account for more than two-thirds of the operating budget so efforts to control costs are closely tied to the number of employees and their salaries, including
collective bargaining increases.
In recent years the Warrant Committee has mounted an intensive and continuing effort to find savings wherever possible. These initiatives have helped address the fiscal problems, but efficiencies cannot change the fundamental fact that, as a Town of homes, there will always be a close connection between the level of taxes collected from homeowners and the level of services provided in our community.
Several years ago the Warrant Committee, in collaboration with the Board of Selectmen, also began a process of long-term financial planning which we have improved upon each year. These efforts have helped the Warrant Committee and Town leaders gain greater understanding of and control over the Town’s finances.
In addition, the Warrant Committee, in concert with the Selectmen, School Committee and Capital Budget Committee, have made a major effort to educate Town Meeting Members and the public about the Town’s fiscal realities and problems, as well as initiatives to address them. The Warrant Committee sponsored three special sessions for the public, in addition to the Budget Forum for Town Meeting Members, leading up to the April Town Meeting. The Warrant Committee will continue to reach out to citizens so they better understand the long-term fiscal dilemma confronting the Town.
In September the Warrant Committee elected its officers: Michael Widmer, Chair, Ralph Jones, Vice Chair, and Phil Curtis, Clerk. Three members of the Committee ended their terms in June 2004: Penny Schafer (12 years), Wally Flewelling (9 years), and Larry McCormick (6 years). We wish to thank all three for their many contributions, with a special nod to Penny for her balanced and energetic leadership in chairing the Committee for two years.
One responsibility of the Warrant Committee is to review and approve all requests for transfers from the Reserve Fund. Established by Town Meeting, this fund is intended to be used for emergency expenditures. The transfers during fiscal 2004 are listed below:
Respectfully submitted,
Michael J. Widmer, Chairman
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