Acton Officials: Town in 'Strong Financial Condition'

The following is from the Acton Finance Committee:

The Acton Finance Committee recently published its annual Point of View document, which details its perspective on the Town of Acton’s current financial position as well its recommendations for the upcoming School and Town budgeting process, including the tax rate, reserve use, and OPEB (Other Post-Employment Benefits) contributions. Below is a summary of the Point of View. The full document can be found online on the Town of Acton’s website, www.acton-ma.gov.

Summary

The Town of Acton is in a strong financial condition, as manifested by its AAA bond ratings and standard reserves in excess of 10% of total current budget, significantly above the state’s Department of Revenue’s recommended 5% level. In addition, the local economy is steady and residential home values are trending positively.

Given continued very low inflation, lower energy costs, declining enrollment in the schools, sturdy negotiations with town and school labor unions, more controlled OPEB liability projections, substantial municipal turnbacks and stronger than anticipated marginal fee income, the Finance Committee believes the opportunity exists to provide high quality services, as demanded by our citizens, while also planning for a medium term, multi-year pattern of tax increases below the 2.5% level allowable by Proposition 2 ½, for the benefit of our tax-paying citizenry.

The Finance Committee also recommends that school and municipal officials plan for “level service” budgets. Therefore, the Finance Committee urges the operating entities to only undertake new programs and initiatives where either there is a new revenue source identified to support this activity, or there is some current service that can be discontinued or otherwise economized to accommodate these services. In particular, we do not support additional hiring without offsetting expense reductions.

The Finance Committee also recommends the following:

• Reserve use be limited to $2.6 mm, which would include the OPEB contribution
• Increase the OPEB contribution to $1.4mm, but level off at that amount
• Consider additional tax relief programs for senior citizen taxpayers
• Examine and determine the value of a stabilization fund (see POINT OF VIEW’s Exhibit B)
• Form a Capital Planning Committee, to plan for future capital expenses, both for maintenance and for new purchases

Finally, the Finance Committee has developed a Long-Range Financial Planning Tool, which estimates the town’s finances over the next five years, and helps promote greater financial visibility and better planning. This tool, along with a full version of the Point of View can be found online at:

http://doc.acton-ma.gov/dsweb/View/Collection-6519

The Finance Committee would love to hear your feedback about its Point of View. Email any questions or suggestions to fincom@acton-ma.gov.

Photo credit: www.acton-ma.gov