Stoneham's budgetary woes appear to be coming to an end
Published on November 12th, 2008
STONEHAM, MA - Stoneham's budgetary woes suddenly don't seem so bleak these days, as local officials are projecting that the town will have at least $1.2 million in additional revenues for the FY'10 budget.
During a recent meeting, Selectman Paul Rotondi convinced his counterparts to accept a working department budget figure of $53,991,688 for next year.
That figure, which doesn't include expenditures for water and sewer services, is approximately $200,000 below the current year budget of $53,991,688.
Appearing even worse, the town's financial gurus are predicting that Stoneham could face a two percent, or $800,000 reduction in state aid should the state's dire economic outlook not improve.
"Now the story is not as bleak when you look at some factors," said Rotondi, who listed a $600,000 savings in health care and a $135,000 decrease in debt payments as freed-up expenditures that can now be allocated elsewhere.
In addition to those caveats, the Selectman also explained that the current year's budget includes $489,000 in capital repair funding, which doesn't necessarily need to be tacked onto the FY'10 spending plan until next October.
"So that gives you a total of $1.2 million in the FY'09 budget that can be applied against increases in FY'10," Rotondi explained, furthering that the town could receive additional money from the Assessor's overlay account.
"I would suggest next year, before the October Town Meeting, we'll have [free cash] surpluses. And we can use that money for any capital we want," Rotondi added.
If the state was to level-fund Stoneham's local aid for next year, Stoneham officials would receive another $800,000 influx to expend in the FY'10 budget.
However, Rotondi argued that it was be wise to be conservative when putting together a draft budget.
"What I would suggest this evening is that the Board of Selectmen take a formal vote to tell the town departments to start their FY'10 budget based on level-service and level-funding," the Selectman commented, before the board unanimously supported the figure.
Trash talk
Although Stoneham's financial picture is looking brighter, the town does have one significant obstacle to overcome: A new rubbish pick-up contract.
According to Town Administrator David Ragucci, Stoneham should expect to see a significant increase in trash services when the municipality's current deal with Hiltz expires in 2010.
"In 2010, we have the contract for the pick-up of our trash, as well as for the tipping of our trash," warned Ragucci. "We don't have any contract right now for our composting materials at Stevens Street and our white goods contract will be expiring in 2010."
With the Selectmen's permission, Ragucci will assemble a committee to explore ways to reduce Stoneham's waste disposal costs, primarily through encouraging more recycling.
According to the Town Administrator, the compost piles at Steven's Street present an immediate challenge, as Stoneham has been ordered to remove the decomposing yard waste and leaf piles from the recycling yard.
"We're still trying to find ways to reduce the cost and [identify] a method for handling the materials down there," said Ragucci.
"I did have a conversation with [officials from the Dept. of Conservation and Recreation], who said because of the recent thievery down there, they're reluctant to let us use that space," added Ragucci, who had hoped to dispose of the compost piles at the state-owned property across from StoneZoo.
Although Stoneham is still allowing residents to dump their leaves at Stevens Street, the town has been ordered by state officials to halt all composting activities at the site.
"It's not really a compost pile quite yet. But it's a problem. I will say that," said Ragucci.
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