Published in the October 23, 2017 edition

By MARK SARDELLA

WAKEFIELD — For those who attend the Nov. 6 Regular Town Meeting, the first order of business will be Town Administrator Stephen P. Maio’s wrap up report on Fiscal Year 2017, which ended June 30. As he has traditionally done at the start of the fall Town Meeting, Maio will tie up loose ends from the previous fiscal year and then talk about the current fiscal year and beyond.

Maio will tell Town Meeting that Wakefield ended FY 2016 in very good shape, with over $9 million in state-certified Free Cash in its coffers.

He’ll remind voters that a year ago Town Meeting voted to use $2 million from Free Cash to balance the budget. Also at the November 2016 Town Meeting voters approved $100,000 from free cash for legal damages resulting from the Columbus day weekend 2015 water main break on Green Street.

Another $20,000 went toward indemnifying Wakefield Police officers for injuries while in the line of duty, and $165,000 from Free Cash was used to supplement the Fire Department budget. Finally, $112,190 was taken from free cash last November to supplement the Trash and Recycling budget.

The total amount of Free cash spent in FY 2017 was $2,397,190, leaving a balance of about $7 million.

Maio will explain that the Free Cash account is replenished via budget money returned by various town departments as well as incoming revenue in excess of projections.

He’ll report that in FY 2017 town departments returned a combined total of just over $1 million in budgeted funds. He’ll show the following breakdown:

• General Government – $186,234

• Police and Fire – $50,104

• Human Services – $46,531

• Public Works – $34,041

• Education – $43,071

• Unclassified – $201,346

• Benefits – $6,653

• Group Insurance -$482,465

Maio says that actual revenues ($7,701,337) in FY 2017 exceeded what was forecast ($6 million), and that $1,701,337 surplus further replenished the Free Cash account.

He notes that the biggest surplus was in the motor vehicle excise tax, where $3.6 million was projected and $4.3 million came in. The meals tax was projected at $201,000 but came in at $281,000. Hotel tax revenue was projected at $550,000 but brought in $618,000.

Maio says that due to the building boom going on around town, revenue from licenses and permits came in $600,000 higher than expected.

At the end of FY 2017, Wakefield had $9.6 million in Free Cash and $3 million in the Stabilization Fund. That is “the highest we’ve ever been in my memory,” Maio says.

Maio will remind Town Meeting that a number of years ago, the Board of Selectmen established fiscal policy guidelines for how much money should be in the Stabilization and Free Cash accounts as a percentage of the operating budget. He will report that in both accounts, the town has reserves in excess of the policy.

He notes that a few years ago, Wakefield had under $2 million in Free Cash.

Under Article 2 at the upcoming Nov. 6 Town Meeting, voters will be asked to use $2,220,000 from Free Cash to balance the budget and another $140,000 to fund the recently settled firefighters’ contract.

That will still leave about $7.25 million in Free Cash, a sum that Maio considers “healthy.”

He says that the town’s healthy fiscal situation will allow Wakefield to consider some “exciting and aggressive programs” aimed at revitalizing the downtown, improving the roads and addressing needs at the Public Safety Building and the DPW garage.

Future discussions, he says, will focus on how to fund these programs through bonding while staying within the tax levy.

Maio says that he expects some substantial surpluses in revenues again this year, and notes that Wakefield is in better shape financially than some neighboring communities.