Residents Approve FY13 Operating, Capital Budgets

Wayland voters Tuesday night approved a Fiscal Year 2013 budget that is estimated to reduce their 2013 tax rate to less than $18.15, or a decrease of 4.55 percent from the 2012 rate of $19.01.

The operating budget motion presented by Finance Committee Chair Cherry Karlson was estimated to result in that $18.15 tax rate, but residents further reduced that proposed budget by passing an amendment to cut an additional $1.31 million from the proposed amount.

The $1.31 million cut came in the form of the town’s payment to its Other Post Employment Benefits (OPEB) liability.

“This budget reduction will help lower the tax rate without reducing any services whatsoever," said Margo Melnicove, who proposed the amendment to delete the $1.31 million payment.

FinCom member Dave Gutschenritter asked voters to vote “no” on the reduction, pointing out that Wayland has an obligation to fund the OPEB trust over time to the tune of $46 million. While a payment isn’t necessarily due in 2013, "The contribution has to be made. The question is when,” Gutschenritter said.

But resident Donna Bouchard said Wayland taxpayers have already contributed well more than they or the Finance Committee realized. The balance in the trust fund is now more than $10 million even though it was only scheduled to be funded to about $6 million at this time.

Bouchard recommended taking a “hiatus” from making an OPEB payment in FY13 until “it's clear how an extra $6 million got to the fund.”

Rep. Tom Conroy, who lives in Wayland, argued against deleting the OPEB payment and called the FinCom’s funding of the liability so far, “prudent,” especially as compared to other municipalities throughout the state who are delaying payments to their detriment.

"We can lower our taxes today and see this liability rise from an actuarial point of view,” said Conroy, pointing out that the liability will largely fund healthcare costs of retirees down the road and those costs are rising. “If we make this payment today, we will be saving money over time."

Voters ultimately preferred to save the money in FY13 and voted 220 to 198 to delete the $1.3 million payment from the operating budget line item 59, Insurance 32B.

In addition to reducing their tax burden with that reduction, residents also voted to reduce the amount of money to be raised from water bills to fund the $3.5 million water fund in FY13. The proposed budget utilized water revenue, or monies brought in from user fees, to fulfill the entire water fund. Bouchard, however, proposed an amendment that reduced the revenue needs to $2 million and funded the rest of the water fund with $1.5 million from water surplus funds.

Voters agreed with Bouchard’s reworking of supplying the water fund and passed her amendment by a margin of 211 yeses to 197 nos.

Just before 10 p.m., voters approved a final FY13 operating budget of $69.8, with $58.6 million to be raised from taxes and $4.8 million to come from the town’s unreserved cash balance (free cash).

The next nearly 90 minutes were spent on the town’s capital budget, which was ultimately approved at $700,000 less than proposed.

That $700,000 reduction came in the form of an amendment to delete the line item proposing the purchase of a new network meter reading system for the town’s water department.

The vote to delete the line item was the closest of the night and brought the clarity of the electronic voting system into focus as the amendment passed by a vote of 157 for and 155 against.

Voters passed a $4.22 million capital budget by a vote of 209-13.

The second session of Town Meeting adjorned at 11:25 p.m. and will pick up Wednesday night at 7:30 p.m. with article 9 of 31.

For more details from the floor of the Annual Town Meeting, review our .