Deficit In Framingham Utility Budget Due To Coronavirus Pandemic

FRAMINGHAM, MA — A Framingham City Council subcommittee will get an update Tuesday on the city's year-end revenue picture, which reflects the coronavirus pandemic downturn. The general budget will finish the 2020 fiscal year with a surplus — but the utility fund will be down by up to $2 million.

The Framingham Utility Enterprise Fund supports the water and sewer departments, and earns revenue from utility bills. But business closures related to the pandemic have cut into expected revenue, according to report from Framingham Chief Financial Officer Mary Ellen Kelley.

In a memo to Council on July 9, Kelley said that the Utility Enterprise Fund can remain in the red for up to three years under state law. Rather than increase rates now to make up for the shortfall, Kelley is recommending the City Council wait to see if additional stimulus might come from the state and federal governments.

The good news: the city's general fund budget will end fiscal 2020 with a surplus up to $1.5 million. That's largely due to a hiring and spending freeze that went into effect in the midst of the pandemic this spring.

The 2020 fiscal year ended on June 30, but Framingham collects revenue from that year for up to two months after.

Read more on the Framingham budget:

• Framingham OKs 2021 Budget: See What's Been Changed
• Framingham Budget Cuts: How Coronavirus Is Hitting City Finances