Rockland's Fiscal Health Strong, Expert Analysis Reveals

Municipal finance consultant highlights responsible debt management, explains Proposition 2.5 impacts

ROCKLAND, MA - November 18 - A municipal finance expert's analysis reveals Rockland's debt service and financial management are in good standing, with debt levels well within acceptable ranges.

Judi Barrett, a consultant with over 35 years of experience in municipal finance, presented her findings to Rockland's Impact Advisory Group during a recent meeting.

"You're probably going to be looking at some point for some additional debt on your budget. Basically it's a good idea to keep the debt service stable if you can," Barrett said.

Barrett's analysis showed Rockland's debt service has been declining in recent years, reaching levels that may prompt officials to consider new projects.

"When you get down to about five percent, typically municipal finance people will start looking for ways to maybe pick that up a little bit," she explained. "Five to ten percent is pretty standard for debt service as a percentage of the municipal budget."

The presentation highlighted Rockland's strong fiscal position relative to its total assessed property value.

"One and a half to up to five percent is not uncommon. You guys are really well within where you should be in terms of carrying some debt relative to the total value of your property," Barrett noted.

She emphasized that credit rating agencies consider this metric when evaluating a municipality's creditworthiness.

Barrett also provided an overview of Proposition 2 1/2, the Massachusetts law limiting annual property tax increases to 2.5% plus new growth.

"The levy limit is what you can appropriate in any given year. It has to fit within the levy ceiling, and it is a historical figure based on the previous year's limit," she explained.

The law allows for overrides and debt exclusions to fund specific projects or increase the levy limit permanently. Barrett clarified that while overrides are permanent increases, debt exclusions are temporary and tied to specific projects.

"Although the levy override is like a permanent shift in the levy limit, the debt exclusion is not. It's only for that project that's excluded," she said.

Analysis of Rockland's budget revealed that property taxes account for about 50% of the town's revenue, with state aid and other sources making up the remainder.

"Very few communities in Massachusetts are relying primarily on other revenue sources," Barrett said. "I think our probably poorest cities in the Commonwealth are still very reliant on state aid. But for the most part, communities are just not as dependent on that."

The presentation sparked discussion among advisory group members about the town's financial position and upcoming capital projects.

Andrea Davis, a group member and 10-year Rockland resident, said the information provided context for discussions about large projects like the proposed new fire station.

"I think sometimes the size of those projects is maybe overshadowing the reality of the financial situation in town," Davis said. "When you look at the data that people don't have access to, right, nobody's doing this sort of like deep dive. You see that maybe that's not necessarily the case or that we're really carrying what we should be."

Courtney Bjorgaard, Rockland's Assistant Town Administrator, said the town is working to make financial information more accessible to residents.

"We're probably going to end up building out like a resource page on the website," she said. "That will have kind of like our breakdown of these meetings, you know, quick write-ups of these meetings with some material, as well as those additional resources that we'll be sharing."

Barrett encouraged residents to utilize resources from the Massachusetts Department of Revenue for more information on municipal finance topics.

"The Department of Revenue has a municipal finance website that's probably the best in the country because I've worked in many, many states," she said. "And the information that's readily available to cities and towns in Massachusetts is bar none. It is just the best."

The Impact Advisory Group plans to continue meeting regularly to discuss important municipal projects and share information with residents.