Published June 24, 2020
By DAN TOMASELLO
LYNNFIELD — The Finance Committee is raising concerns once again about the town’s financial outlook in the midst of a challenging budget year that could potentially get worse.
Finance Committee Chairman Chris Mattia stated in a memo appearing in the fiscal year 2021 budget book that FY21 “can be characterized as stable but cautious.” He said, “The medium and long-term impacts of COVID-19 will not be known for many months if not longer.”
“National, state and local economic challenges have been exacerbated by the impacts of COVID-19 on the financial markets, the shuttering of businesses and skyrocketing unemployment,” said Mattia. “Prudent fiscal policy over the previous years will allow us to navigate this difficult economic time, placing the town in a position to not only maintain the standard of living that we enjoy in our town, but also allow for continued capital investments in both necessary equipment and infrastructure maintenance.”
Mattia noted the School Department was given a 3 percent budget increase for FY21.
“The town continues to show its support for the education of our children with a very healthy recommended increase to the school budget to support their continued needs,” said Mattia.
While Mattia noted the School Department has “effectively managed” its budget the last several years, he said, “There continue to be challenges.”
“Past reliance on savings in special education continues to prove difficult,” said Mattia. “Even with robust in-house services, out-of-district costs continue to rise. While these costs can fluctuate year-to-year, we currently see these costs trending back upwards.”
Mattia also noted the enrollment boom at the two elementary schools is another challenge that needs to be addressed.
“The School Building Study Committee has been formed by the Board of Selectmen to review these space needs and make a recommendation to the town on how to proceed,” said Mattia. “Whatever that recommendation is to be, increased student population will come with increased costs. With that, the Finance Committee will be looking for the School Department, as town’s largest budget, to continue to explore ways to flatten expenses, particularly as revenues could prove to be challenging as we look ahead to fiscal year 2022.”
School Committee Chairman Jamie Hayman said the Finance Committee’s concerns are valid.
“In light of the recent financial challenges caused, in part, by the pandemic, the School Committee is very appreciative of the support we received from the both the Board of Selectmen and the FinCom this year,” said Hayman in an email. “The FinCom’s assessment that the schools must ‘continue to explore ways to flatten expenses, particularly as revenues could prove to be challenging as we look ahead to fiscal year 2022,’ is fair, especially as we are faced with enrollment increases and other rising costs.”
Hayman also said, “Returning to classrooms and addressing the social-emotional scars caused by school buildings being closed for more than three months will also add new challenges.”
“The School Committee is guided by a commitment to addressing the academic and social emotional needs of our students and the broader Lynnfield Public Schools community, while partnering with the town administrator, the Board of Selectmen and the FinCom, to do so in a fiscally responsible way,” said Hayman.
Mattia noted the capital budget for FY21 totals $1,936,900, which he said will allow the town to continue making “important investments in its employees and infrastructure.”
“The FY21 budget of $1,936,900 represents 3.1 percent of the town’s total expenditures, which is slightly above the Finance Committee’s recommended target of 2-3 percent of overall expenditures, but provides some much-needed investments this year,” said Mattia. “We continue to invest in road construction, which along with Chapter 90 money from the state, will continue to allow the DPW to maintain and upgrade our streets. We have also made a critical investment this year in some of our town’s most important employees, our first responders in the Fire Department, with a recommendation to purchase and upgrade both their personal-protective gear and breathing apparatus. The Finance Committee is particularly pleased to support these investments this year, and would like to thank the Fire Department and all of our first responders who have played such a critical role during the COVID-19 pandemic.”
Mattia said Lynnfield’s current economic situation is “unlike many of the communities throughout the commonwealth.” However, he said the town has “a responsibility to look to the future as well.”
“While there are many unknowns that will result from COVID-19, there were two trends in place prior to the pandemic: Rising expense growth with challenging revenue growth,” said Mattia. “The impacts of COVID-19 have only intensified those revenue challenges, and we need to start thinking about the scenarios where revenue flattens completely with zero new growth or even declines due to the continued impact of business closures or changes to business models as we look to what the ‘new normal’ will be. Through these scenarios, the town will be challenged to find new ways to flatten expense growth while still maintaining our position as a top-tier community.”
Mattia also suggested that residents become “more receptive to revenue development opportunities.” He noted the proposed Sagamore Spring Golf Club redevelopment project is currently in limbo after the 2018 April Town Meeting rejected the project.
Moving forward, Mattia said “there is no clear view into what all of the challenges will be that will face this town, this state or this nation.”
“But we must be prepared and be open to all conversations on how to handle those challenges,” said Mattia. “While not an inevitable marker, we must also be prepared to make some hard decisions should they arise. The Finance Committee is committed to ensuring that we are doing all that we can and working closely with town management and the Board of Selectmen to ensure that the town of Lynnfield remains a top-tier community.”
The Finance Committee handed out a letter at the 2019 April Town Meeting that expressed concerns about the direction of the town’s budget and feared a Proposition 2 1/2 override could be on the horizon.
If residents have any questions about the Finance Committee’s concerns, they should send an email to fincom@town.lynnfield.ma.us.
