Burlington Coronavirus: Town Officials Detail Budget Plans

BURLINGTON, MA — Burlington town officials project local receipts for the current and next fiscal year dropping a quarter from Fiscal Year 2019 due to the new coronavirus, Town Accountant John Danizio told the Board of Selectmen Monday. Danizio updated the Board on the town's budget and plans for town meeting.

Local receipts, which include meal and hotel taxes, are projected to increase 0 percent from Fiscal Year 2020 — and fall 27 percent, or $4.5 million, from Fiscal Year 2019. Over $1 million is at stake each quarter in meal and hotel tax receipts alone.

State aid is also now projected to remain steady from Fiscal Year 2020. In both cases, that means a decline of a few hundred thousand from the budget guidelines established before the virus.

The largest piece of town revenues, the property tax levy, is unchanged at $123.5 million.

>>Burlington Coronavirus: Town Facing Millions Of Lost Revenue

Danizio noted that the town will not know how much state aid Burlington will be getting before town meeting, scheduled for June 10. Because of this, town officials are hoping that town meeting will approve the budget as planned, with a 3.5% operating budget increase.

Once the town has more information on state aid and the virus's economic impact, they will be able to go back to town meeting voters in September and make necessary cuts. Certain expenditures will not be made until there is more information, Town Administrator Paul Sagarino explained.

The town has $8.85 million in free cash reserves and $9.65 million in stabilization funds, Danizio said.

"We've been budgeting conservatively for years for something like this," Sagarino said. "It could be we're just delaying making tremendous cuts, but if we have to do that, we want to do that in the most thoughtful and least harmful way to the residents."

The full meeting is available below from BCAT.

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Christopher Huffaker can be reached at 412-265-8353 or chris.huffaker@patch.com.