State of the Town 2022: Grafton sees increases, more transparency
The following is the Finance Committee’s annual State of the Town message, presented at Town Meeting.
This evening the Finance Committee is pleased to report on the state of the town in 2022. The town’s financial condition is stable, and the Town Administrator and Superintendent have been working diligently this year to continue to provide necessary services while preserving as much of our override capacity as possible.
The town’s combined Free Cash and Stabilization reserves are within the 5-10% threshold prescribed in our financial policies and are adequate to support a stable AA+ bond rating.
The town implemented the ClearGov financial transparency platform this year, resulting in the details of the current, next, and past several years budgeted and actual expenditures being available online to the general public. Links can be found on the Town of Grafton homepage. This platform also includes a Projects section where pending, ongoing, and past capital projects can be shown with data on the progress of the project, including photos of the project as they happen. The School Department has also adopted this platform for its portion of the budget. As part of this modernization project, the Town Administrator and Finance staff have been reviewing the various accounts used in the town budget and will be implementing budget category reorganizations aimed at providing greater transparency to the taxpayers and aligning more closely with standard accounting practices.
We are now two years into the COVID-19 pandemic. Grafton has received significant funds in the form of both federal and state grants, including $5.5M from the American Rescue Plan Act. The ARPA funds have been partially allocated to pay for a new HVAC system at Grafton Middle School, replacing the existing one which is original to the building. Other items paid for using the ARPA funds include additional nursing staff for the schools for SY2022-23, an overhaul of the municipal website, and the MS-4 stormwater permit. The ARPA committee continues to study how to use the remaining $2.2M over the next 2 ½ years.
The School Committee lifted the mask mandate effective March 2nd, citing increased vaccination rates and decreased case counts in the schools relative to the beginning of the calendar year. The School Department continues to struggle to find substitute teachers and paraprofessionals due to the pandemic, and has had to have staff cover shortages at the expense of their regular duties.
In FY21, the town voted to allocate funds from CPC to a rental assistance program for residents facing economic hardship during the pandemic, and that money was put to use during this fiscal year. The Affordable Housing Trust continues to pursue affordable housing on the 25 Worcester St parcel that was gifted by the Town to the Trust at the 2020 Spring Town Meeting.
The number of development projects in the works continues to expand. The mixed-use development at 8 Pine Street is underway. The land at 17 and 27 Upton St (the former DPW site) has been sold and the 3 May 2022 Warrant developer is working with the Affordable Housing Trust to develop a plan for the site. Preliminary concept proposals have been submitted to the Select Board as part of the Local Initiative Program (LIP) process for developments on Pleasant St and Upton St. Another development has been proposed for Snow Road. Construction of a development has been underway on Main St in South Grafton since last fall. A large commercial development has been approved by the Planning Board for the front portion of the Wyman-Gordon property.
One cannabis retail shop opened in FY22, and the other two cannabis retail shops are moving towards opening this summer after construction delays due to COVID. This budget only includes as revenue the required minimum payments from the one shop that is open, in keeping with financial best practices and our own fiscal policies.
The FY23 budget represents a $3.2M (4.7%) increase compared to FY22. Consistent with the 2020 override plan, the school department budget increased by $2.15M (5.4%). The School Department is adding 5 new positions, including an Arts Teacher at the High School, 2 Special Education Teachers, and a Nurse-Intensive Special Education Teacher.
The town conducted a compensation study over the past year to bring us more in line with neighboring communities. This resulted in overall salary increases of approximately $200k. The cost of health insurance increased again this year at a rate of 5.75 to 8%. Our costs for Blackstone Valley Tech increased by $366k (40%) due primarily to a 42% increase in enrollment in 2021/22 (88) compared to 2020/21 (62). We were fortunate this year to have a $1.2M increase in our Chapter 70 state aid for schools.
We continue to be constrained by the limits of Proposition 2-½. This budget uses approximately $650k of the remaining$1.7M in excess levy capacity from the override, leaving $1.045M for the remaining two years expected life of the override. The revenue estimate for the year is conservative, so this remaining amount may increase. The neighboring community of Shrewsbury with its substantial commercial property base passed a $9.5 million override in May of 2021. Significant continuing longterm issues include a shortfall in OPEB funding and the need to increase the Public Safety staffing due to the growing population of the town. The Finance Committee has joined with the Select Board and the School Committee to continue Tri-Committee meetings (2 members per committee) along with the TA, Superintendent, the Town Finance Director, and the School Department Director of Finance in order to continue necessary dialog about the town’s long-term needs.
The capital budget proposed by the Town Administrator and approved by the Capital Improvement Planning Committee (CIPC) for FY23 totals $1.51M. The primary needs funded by this budget include replacement of 2 DPW trucks, and building maintenance for the Municipal Center, schools, South Grafton Community House, and Fire Station 2. Three former Police Department vehicles that were converted to vehicles for other departments have reached the end of their usable lives and are being replaced by hybrid pickup trucks. The Municipal Center work includes the final entrance that needs accessibility upgrades, and development of a plan to add a sprinkler system. The School Department work includes replacement of a roof at North Street Elementary School, refurbishment of the Grafton Middle School auditorium and neighboring bathrooms, and window screens. $1.2M of this capital budget will be funded from the Capital Stabilization Fund with the remainder coming from Free Cash, General Fund, and CPC.
The remaining balance of the Capital Stabilization Fund will be $848,415. Our certified Free Cash is $1,370,593. If all articles funded by free cash are approved this evening, the remaining free cash balance 4 May 2022 Warrant will be $1,081,593. Grafton’s capital expenditure outlook is getting better after significant investments over the last few years, but we continue to have significant capital needs to fund.
In FY2022, the average assessed value of a single-family home is $488,565, and the tax rate is $16.88 per thousand, down $0.30 from FY2021, resulting in an average single family tax bill of $7,572. 7.37% of that tax bill is due to debt exclusions, but the percentage of overall tax burden from debt service may rise in the coming years as the full cost of the library and DPW bond payments go into effect.
In conclusion, Grafton’s fiscal health continues to be stable with the risks and challenges of the past remaining. We would like to thank the Town Administrator, theManagement Analyst/Communications Specialist, the Town Finance Director, the Select Board, the Superintendent of Schools, the School Department Director of Finance, the School Committee, all Department Heads, and all members of the Finance Committee.
Two years ago, in the State of the Town Message, the Finance Committee announced the retirement of Susan Fiacco. Last year in the State of the Town Message, the Finance Committee reported that she was finally going to be allowed to retire. However, we are still looking for a replacement. We thank her for continuing to work with the Finance Committee, owe her a huge debt of gratitude for doing so, and hope that she will be able to retire soon.
Respectfully submitted,
Finance Committee Mark W. Haddad, Chair Daniel S. Cusher, Vice Chair Angelina Correia, Clerk J. Roger Currier ,Andy Jefferson, Greg Marr, Heather McCue, Sue Robbins
