Hello Dracut!
In an effort to be as transparent and informative as possible we will be using this blog for happenings relating to the current and future budgets of the town. We have also provided links on several pages within the website but this link, https://www.dracutma.gov/445/Finance-Department will get you the most up-to-date information as well as other documents.
As you probably have heard, we are facing some budget challenges over the next few fiscal years. We are not alone in this; many communities are facing the same obstacles centered around inflation and the inability of Proposition 2 ½ closing the gap on double digit increases in many fixed cost centers. We have been preparing for this for some time. We have refrained from filling vacancies in many departments, will be laying off two occupied positions and will continue to make adjustments as necessary.
For FY25 we will present a balanced budget that relies on reserves and absorbs $1.5M in operational cuts. Ideally, a community should not rely on one-time revenues but because our Free Cash is at a reasonable level we have done so for this year only. Not only will it provide a balanced budget, but it will also afford us the time necessary to develop a solution for the future.
For those of you that follow social media please take those comments with a grain of salt, many of the posts are simply false and most are fabricated. For example, one social media site has us spending $100M on a new school, we don’t have a new school; we are in the early stages of completing a Feasibility Study for the Campbell Elementary School with a total cost of $1M. Eventually we will see additional costs associated with this project, but we are unsure of the amount, please keep in mind that Dracut will qualify for approximately 60% reimbursement for a school and that includes the Campbell. If the Town approves the construction of a new Campbell School whatever the cost, would be reduced by approximately 60%.
Another example would be the proposed driveway, parking lot and trail at Beaver Brook Farm. The estimated cost is just under $1M, it will be presented at the June Town Meeting, no appropriation has been approved. The appropriation proposed will be via the Community Preservation Fund, not the General Fund.
Regarding a Tax Incentive Agreement for J&J Heating and Air Conditioning, this is not unusual. Over the years the Town has entered into tax incentive agreements for several businesses that contribute to the workforce and redeveloped areas that otherwise would see no improvements. This project in particular will not only create jobs, but it will also bring other businesses to the plaza, resulting in more tax dollars for the town. To put this into perspective the current taxes being paid for that lot and the lots that had houses that were torn down to make room for the redevelopment is $19,173 for FY24 . Even with the 25% discount for 10 years, the town will recognize an additional $227,478 dollars over the 10 years added to the tax rolls.
Over the next few months, I will be working with a group consisting of members of the Board of Selectmen, School Committee, Finance Committee, Superintendent of Schools, Steven Stone, Assistant Town Manager, Victor Garofalo and myself will be scouring the budget on both sides of the ledger to formulate a strategy to find a solution to the deficit. This solution could mean a reduction in services, additional fees, additional taxes, closing of departments and elimination of services that are not mandated. All of this will be taken into account during our review and analysis.
There are some misunderstandings about improper spending, which is ludicrous and quite frankly untrue. With the onset of COVID came grants, Federal Funding and other resources that were and are being used for infrastructure, capital items, equipment, and vehicles. Every grant and other funding whether it be federal, state or local has its guidelines and requirements. The Town takes that very seriously and refrains from using these types of funding for items that do not fall within the guidelines and the annual audit would confirm that.
The Town’s capital plan had been stagnant for many years resulting in only the upgrading/replacing when it was an emergency. With the funding we have received from the Federal Government known as ARPA, we aggressively analyzed our fleets in all departments and replaced and/or upgraded many items that have been on the plan for decades. It did appear like we were spending more than usual, but in reality, we simply needed to catch up from years of little to no investments in capital items. There were no new vehicles that we did not have before other than the Camera Truck, Vac Truck and Skidder. Any other vehicles that were purchased were to replace older vehicles. We also took vehicles out of service due to age and/or condition.
For the next edition, I will review specific areas of the budget that contributing to our deficit. Thank you for your time. I can be reached via email at: avandal@dracutma.gov . Thank you.
