Kingston Officials Consider Budget Cuts to Avoid Override
Board of Selectmen reviews options to reduce spending while maintaining essential services
KINGSTON - April 1 - Kingston officials are working to avoid a Proposition 2 1/2 override by considering several budget cuts and adjustments for the upcoming fiscal year. The Board of Selectmen discussed potential reductions to stabilization funds and other post-employment benefits during their April 1 meeting.
Town Administrator Keith Hickey presented options to eliminate the need for a $653,000 override, including removing a $575,000 police department funding request and a $100,000 independent school operational audit from the town warrant.
"If those two articles are removed from the warrant, you'll have an excess property tax levy of $21,656," Hickey explains. "Not a lot of money."
The board also considered reducing transfers from free cash to several reserve accounts. These include cutting the transfer to the employment liability reserve fund from $150,000 to $100,000, reducing the other post-employment benefits (OPEB) contribution from $100,000 to $50,000, and eliminating a $100,000 transfer to the stabilization fund.
Board Chair Eric Crone supports these reductions, comparing the situation to personal finances during difficult times.
"When everything's good and honky-dory and your family's going along, you're putting so much in your 401K, so much in savings," Crone says. "But when you have a crunch, you're like, okay, we've got to hold off on the 401K savings. We've got to keep it in reserves. We're in a fiscal predicament."
Hickey assures the board that these reductions won't put the town at financial risk. The stabilization account currently holds over $3 million, and the OPEB reduction still demonstrates the town's commitment to addressing future liabilities.
"We aren't putting ourselves at risk for needing more than $50,000," Hickey says regarding the OPEB reduction. "It's really just putting money into a savings account designated specifically for post-employment benefits that we wouldn't touch and don't anticipate touching for decades."
In a separate discussion, the Sewer Commission presented a request for the town to fund one-third of an $8.2 million leaching field project, continuing a cost-sharing arrangement established in the late 1990s.
Elaine Fiore, Sewer Commission Chair, explains that when the municipal sewer system was introduced, the town committed to paying one-third of the costs for both phases of the project. While the town has been paying one-third of phase one costs, it hasn't contributed to phase two, which includes the leaching field.
"At this time, we are asking for the town to pay one-third of the cost of the leaching field project as it was part of the adopted plan from 1997," Fiore says.
The estimated final cost of the project is $8.2 million, including interest. The town's one-third share would be approximately $2.76 million, with an average yearly debt payment of $137,820 over 20 years. This translates to about $28 per parcel for town property owners.
If sewer customers had to pay the full cost, their yearly expense would increase from $153 to $188 per customer.
A key concern raised during the discussion is how to secure a 20-year commitment from the town, as the current warrant article only covers the upcoming fiscal year.
"What we have to do is set up special assessments to sewer customers," Fiore explains. "I don't know what the legal mechanism would be. Because we've done it in the past."
Hickey plans to consult with the town attorney about potential options for a long-term commitment, noting that "you can't bind future town meetings."
Other significant items discussed:
* The board reviewed capital planning requests totaling over $1 million, including $233,537 to replace three police patrol vehicles, $167,362 for police tasers, and $151,000 for a Green Street crosswalk realignment.
* Officials expressed concern about the capital stabilization fund being nearly depleted. Hickey notes, "For the next two or three years, incurring more debt and using capital stabilization as a tool to fund a lease is not something that we can afford to do."
* The board discussed a potential land disposition involving the fire station property to facilitate a gas station development at Kingston Collection, which could generate additional revenue for the town.
* Members debated the value of a $100,000 independent school operational audit, particularly focusing on special education spending. While acknowledging the need for better understanding of school finances, they questioned whether this was the right time for such an expense.
* The board plans to finalize their decisions on warrant articles at their next meeting on April 8, ahead of the April 26 town meeting.
Crone emphasized that the town faces significant financial challenges in the coming years. "We've got a lot of work to do over the next year. Not just the schools, the whole town, in preparation for the fiscal cliff that we're going to see next year."