The Select Board on Tuesday emphasized the need for level-service funding and building town department budgets from the bottom up because of the town’s increasing tax rates over the next several years.
Town Manager Elaine Lazarus explained that the board needed to develop its message to town departments to guide them as they prepare their fiscal year 2026 budget requests. She recommended that level-service budgets be submitted “and that departments will document and justify their expenses from the bottom up.”
This is the first step in the budget process. Once town departments submit their budget requests, the town manager reviews them along with Chief Financial Officer Kyla LaPierre. Lazarus then will meet with town department heads individually.
During “key points” in the process, the Select Board will be meeting with the School Committee as it develops its budget. By the time the school budget process is finished, the “information and history” of the town department budgets will be available for Select Board review, Lazarus said.
She added that she will be submitting a comprehensive town budget to the Select Board in January along with the School Department budget and the capital plan. The Select Board will meet with department heads as it reviews the proposed budget. Metrics will need to be presented along with the budget requests.
CFO presents grim picture of town’s finances
LaPierre estimated that the town would have an estimated balance of $10 million in free cash. At the same time, she pointed out that the repayment of the town’s principal debt and principal of interest is “almost doubling” to $13 million. This amount will continue to rise over subsequent fiscal years.
She recommended transferring $700,000 into the stabilization fund, as was done last year. This would be equal to 5% of the town’s operating budget.
LaPierre said that budget requests from the town at this point are over $10 million, with one line item for $6.5 million. She said budget requests will have to be reviewed “item by item” to determine how necessary they are at this time.
This budget is being balanced with free cash rather than “recurring sources for recurring uses,” which LaPierre said was not the way it should be done, according to the town’s financial policy. The town could make an exception for FY 26 or take an even more aggressive approach at cutting expenses.
Another factor that will impact the budget is that there are eight different union contracts that will be negotiated this year, she added.
“We’re doing the best that we can with this estimated budget this early on in the process,” she summarized. “But those are the highlights for us to consider.”
Select Board discusses budget approach
Member Mary Jo LaFreniere said she recommended a level-funded budget approach rather than a level-service one. She noted that residents have come to her saying that because Town Meeting approved overrides and expensive projects, “It’s time to pay the piper.”
She added that she would rather give relief to the elderly and those in need.
Member Joe Clark disagreed, saying that the starting point should be a level-service budget. He said the approach should be “very granular” when department budget requests are reviewed.
Member Amy Ritterbusch agreed with Clark, noting the importance of town services to the residents. She did point out that the town has not grown as rapidly this year than as in past years. She also wanted to know what state grants the town would not have access to if the town decided not to pass the zoning to comply with the MBTA Communities Act.
Because residents are “super concerned” about the budget, member Shahidul Mannan agreed with both the level-service and bottom-up approaches to budgeting. But he added that he “didn’t want to deprive any urgent need to overshoot.”
Chair Brian Herr noted that this preliminary budget included the customary 2.5% increase over the previous year. He explained that the budget affects the town’s bond rating, which in turn affects interest rates and the town’s ability to borrow money.
LaPierre noted that even if that number were reduced, operating expenses are growing faster than 2.5%.
The board voted 5-0 to adopt the recommended budget message.
Center School playground to close
In her report, Lazarus recommended that the Center School playground be closed to the public, citing safety concerns.
While it has been a “nice neighborhood resource,” she said the playground has deteriorated beyond repair. Repairs would cost $50,000. She also said that because the future of the Center School is unknown at this time, it would not be wise to invest in the playground.
The Center Trail still will be accessible, she said. There also are other playgrounds in town.
Board votes to keep town counsel, labor counsel
The board voted unanimously to retain the town’s current town counsel and labor council with the caveat that a plan for a market survey be put in place for FY 26.
There were some grumblings at a previous meeting by the public about town counsel’s role in the improperly redacted report regarding former Hopkinton Police Department Sgt. Timothy Brennan. This report had two instances where the information about the alleged survivor of alleged sexual assault by former HPD Deputy Chief John “Jay” Porter two decades ago was revealed.
Water bottle rebate rescinded
The Select Board decided unanimously to rescind the rebate for residents who purchased bottled water over the past several months due to PFAS concerns. Now that the PFAS filtration system is operational at Well 6, the board decided there was no need to continue the rebate program.
Time set for Nov. 18 STM
The board voted unanimously to set the time for the Nov. 18 Special Town Meeting for 7 p.m. The main article for discussion will be the adoption of zoning to conform with the state’s MBTA Communities Act.
It will be an enormous mistake to balance our operations budget with one time funding. This just digs us into a financial hole that will be made exponentially worse next year. We must adhere to our Financial Policies, and ask departments (particularly the School Dept.) to cut their budgets to align with available resources. I am really disappointed that our new Town Manager is being so irresponsible.